American Lorain Corporation Reports 2012 Third Quarter Financial Results
JUNAN COUNTY, China, Nov. 14, 2012 /PRNewswire-FirstCall/ -- American Lorain Corporation (NYSE Amex: ALN) ("American Lorain" or the "Company"), an international processed snack foods, convenience foods, and frozen foods company based in the Shandong Province, China, today announced financial results for its third quarter ended September 30, 2012.
Q3 2012 Operational Highlights
- Strong sales in chestnut products with growth of 10.3% over same period of last year
- Convenience food grew 3.9% over same period of last year
- International sales accounted for 27.7%, as compared to 24.2% over same period of last year
Q3 2012 Financial Highlights
- Total revenues of $58.0 million, an increase of 4.2% year over year
- Net income attributable to common stockholders of $5.3 million, down 25.7% year-over-year, mostly due to the one-time gain we recognized in the third quarter of 2011 when we sold a parcel of land previously carried on our balance sheet as a short term investment
- Diluted earnings per share of $0.15
| 2012 Third Quarter Financial Review |
|||||||||||||||||
| American Lorain Corporation |
|||||||||||||||||
| Selected Financial Statements in USD ($ in 000s) |
|||||||||||||||||
| 3 months ended |
3 months ended |
% Increase / Decrease |
|||||||||||||||
| 9/30/2012 |
9/30/2011 |
||||||||||||||||
| Sales |
$57,972,627 |
$55,642,041 |
4.2% |
||||||||||||||
| Cost of Revenues |
($45,583,295) |
($43,291,417) |
5.3% |
||||||||||||||
| Gross Profit |
$12,389,332 |
$12,350,624 |
0.3% |
||||||||||||||
| Gross Profit Ratio |
21.4% |
22.2% |
|||||||||||||||
| Income from operations |
$8,451,374 |
$8,200,913 |
3.1% |
||||||||||||||
| Earnings before tax |
$7,645,304 |
$9,779,476 |
-21.8% |
||||||||||||||
| Net income attributable to common stockholders |
$5,252,569 |
$7,071,288 |
-25.7% |
||||||||||||||
| Diluted earnings per share |
$0.15 |
$0.20 |
-25.0% |
||||||||||||||
| Weighted average diluted shares outstanding |
34,507,874 |
34,605,668 |
-0.3% |
||||||||||||||
2012 Third Quarter Financial Review
- The Company reported sales for the 2012 third quarter of $58.0 million, an increase of 4.2% compared to $55.6million in the third quarter of 2011.
- Gross profit increased 0.3% to $12.39 million from $12.35 million in the prior-year period. Gross margin declined to 21.4% for the three months ended September 30, 2012, from 22.2% for the prior-year period. The decrease is primarily due to increased inflation pressure for raw materials as well as increased labor cost.
- Income from operations during the period was $8.5 million, an increase of 3.1% from $8.2 million reported in the prior year period. Operating margin for the 2012 third quarter remained flat at 14.6% compared to 14.7% in the prior-year period.
- The Company had net income attributable to common shareholders for the third quarter of 2012 of $5.3million, or $0.15 per diluted share based on 34.5 million diluted shares outstanding, compared to $7.1 million, or $0.20 per diluted share based on 34.6 million diluted shares outstanding in the prior-year period. The decrease is mostly due to the one-time gain we recognized in the third quarter of 2011 when we sold a parcel of land previously carried on our balance sheet as a short term investment.
Balance Sheet Highlights and Financial Position
| (in millions) |
9/30/2012 |
9/30/2011 |
% Increase |
||
| Cash and Cash Equivalents |
$ |
16.7 |
$ |
11.4 |
46.5% |
| Restricted Cash |
14.1 |
8.9 |
58.4% |
||
| Working Capital |
98.6 |
83.7 |
17.8% |
||
| Total Debt |
76.8 |
40.5 |
89.6% |
||
| Stockholders' Equity |
171.0 |
148.4 |
15.2% |
About American Lorain Corporation
American Lorain Corporation products include chestnut products, convenience food products and frozen food products. The Company currently sells over 240 products to 26 provinces and administrative regions in China as well as to 42 foreign countries. The Company operates through its five direct and indirect subsidiaries and one leased factory located in China. For further information about American Lorain Corporation, please visit the Company's website at http://www.americanlorain.com.
Forward-Looking Statements
This press release contains certain "forward-looking statements" that involve a number of risks and uncertainties. There can be no assurance that such statements will prove to be accurate and the actual results and future events could differ materially from management's current expectations. Such factors include, but are not limited to, the Company's ability to obtain the necessary financing to continue and expand operations, to market its products in new markets and to offer products at competitive pricing, to attract and retain management, and to integrate and maintain technical information and management information systems, political and economic factors in the PRC, compliance requirement of laws and regulations of the PRC, the effects of currency policies and fluctuations, general economic conditions and other factors detailed from time to time in the Company's filings with the United States Securities and Exchange Commission and other regulatory authorities. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
For more information, please contact:
At the Company:
American Lorain Corporation
Mr. David She, CFO
+86-10 8411 3393
[email protected]
Web: http://www.americanlorain.com
| AMERICAN LORAIN CORPORATION |
||||||||
| CONSOLIDATED STATEMENTS OF INCOME |
||||||||
| FOR THE THREE AND NINE MONTHS ENDED SEPTEMPER 30, 2012 and 2011 |
||||||||
| (Stated in US Dollars) |
||||||||
| Three months ended September 30, |
Nine months ended September 30, |
|||||||
| 2012 |
2011 |
2012 |
2011 |
|||||
| Net revenues |
$ |
57,972,627 |
$ |
55,642,041 |
$ |
135,930,419 |
$ |
121,818,496 |
| Cost of revenues |
-45,583,295 |
-43,291,417 |
-107,582,656 |
-95,036,378 |
||||
| Gross profit |
$ |
12,389,332 |
$ |
12,350,624 |
$ |
28,347,763 |
$ |
26,782,118 |
| Operating expenses |
||||||||
| Selling and marketing expenses |
-2,310,863 |
-2,538,469 |
-5,098,669 |
-4,989,922 |
||||
| General and administrative expenses |
-1,627,095 |
-1,611,242 |
-4,387,609 |
-4,680,555 |
||||
| -3,937,958 |
-4,149,711 |
-9,486,278 |
-9,670,477 |
|||||
| Operating income |
$ |
8,451,374 |
$ |
8,200,913 |
$ |
18,861,485 |
$ |
17,111,641 |
| Government subsidy income |
281,374 |
47,657 |
1,135,730 |
643,009 |
||||
| Interest income |
2,886 |
26,257 |
192,076 |
36,526 |
||||
| Other income |
44,472 |
2,109,575 |
98,779 |
2,248,762 |
||||
| Other expenses |
-6,434 |
-54,269 |
-24,098 |
-235,324 |
||||
| Interest expense |
-1,128,368 |
-550,657 |
-2,703,251 |
-1,813,891 |
||||
| Earnings before tax |
$ |
7,645,304 |
$ |
9,779,476 |
$ |
17,560,721 |
$ |
17,990,723 |
| Income tax |
-2,037,590 |
-1,887,950 |
-4,631,730 |
-4,061,371 |
||||
| Net income |
$ |
5,607,714 |
$ |
7,891,526 |
$ |
12,928,991 |
$ |
13,929,352 |
| Other comprehensive income: |
||||||||
| Foreign currency translation gain |
-317,396 |
1,664,668 |
89,984 |
4,772,659 |
||||
| Comprehensive Income |
5,290,318 |
9,556,194 |
13,018,975 |
18,702,011 |
||||
| Net income attributable to: |
||||||||
| -Common stockholders |
$ |
5,252,569 |
$ |
7,071,288 |
$ |
12,165,013 |
$ |
12,760,027 |
| -Non-controlling interest |
355,145 |
820,238 |
763,978 |
1,169,325 |
||||
| $ |
5,607,714 |
$ |
7,891,526 |
$ |
12,928,991 |
$ |
13,929,352 |
|
| Earnings per share |
||||||||
| - Basic |
$ |
0.15 |
$ |
0.21 |
$ |
0.35 |
$ |
0.37 |
| - Diluted |
$ |
0.15 |
$ |
0.20 |
$ |
0.35 |
$ |
0.37 |
| Weighted average shares outstanding |
||||||||
| - Basic |
34,507,874 |
34,466,144 |
34,507,874 |
34,440,483 |
||||
| - Diluted |
34,507,874 |
34,605,668 |
34,507,874 |
34,754,552 |
||||
| AMERICAN LORAIN CORPORATION |
||||
| CONSOLIDATED BALANCE SHEETS |
||||
| AT SEPTEMPER 30, 2012 AND DECEMBER 31, 2011 |
||||
| (Audited) |
||||
| At September 30, |
At December 31, |
|||
| ASSETS |
2012 |
2011 |
||
| Current assets |
||||
| Cash and cash equivalents |
$ |
16,731,380 |
$ |
17,353,494 |
| Restricted cash |
14,141,625 |
13,017,371 |
||
| Trade accounts receivable |
52,667,221 |
41,469,880 |
||
| Other receivables |
6,243,500 |
6,147,550 |
||
| Inventory |
51,949,507 |
34,348,997 |
||
| Advance to suppliers |
12,620,123 |
15,772,736 |
||
| Prepaid expenses and taxes |
2,315,491 |
132,710 |
||
| Deferred tax asset |
165,260 |
164,394 |
||
| Security deposits and other Assets |
18,040 |
16,373 |
||
| Total current assets |
$ |
156,852,149 |
$ |
128,423,505 |
| Non-current assets |
||||
| Investment |
474,758 |
472,270 |
||
| Property, plant and equipment, net |
85,195,024 |
84,377,306 |
||
| Land use rights, net |
5,330,865 |
5,425,252 |
||
| TOTAL ASSETS |
$ |
247,852,796 |
$ |
218,698,333 |
| LIABILITIES AND STOCKHOLDERS' EQUITY |
||||
| Current liabilities |
||||
| Short-term bank loans |
$ |
49,468,885 |
$ |
36,018,450 |
| Long-term debt – current portion |
57,367 |
57,066 |
||
| Accounts payable |
3,363,447 |
3,900,317 |
||
| Taxes payable |
3,738,859 |
4,237,142 |
||
| Accrued liabilities and other payables |
1,410,070 |
1,938,759 |
||
| Customers deposits |
229,045 |
- |
||
| Total current liabilities |
$ |
58,267,673 |
$ |
46,151,734 |
| Long-term liabilities |
||||
| Long-term bank loans |
18,555,701 |
15,597,831 |
||
| TOTAL LIABILITIES |
$ |
76,823,374 |
$ |
61,749,565 |
| (Audited) |
||||
| At September 30, |
At December 31, |
|||
| 2012 |
2011 |
|||
| STOCKHOLDERS' EQUITY |
||||
| Preferred Stock, $.001 par value, 5,000,000 |
- |
- |
||
| shares authorized; 0 shares issued and outstanding at September 30, 2012 and December 31, 2011, respectively |
||||
| Common stock, $0.001 par value, 200,000,000 shares authorized; 34,507,874 shares issued and outstanding as of September 30, 2012 and December 31, 2011, respectively |
34,508 |
34,508 |
||
| Additional paid-in capital |
53,396,140 |
53,015,636 |
||
| Statutory reserves |
14,658,074 |
13,976,899 |
||
| Retained earnings |
78,104,726 |
65,939,713 |
||
| Accumulated other comprehensive income |
15,443,869 |
15,353,885 |
||
| Non-controlling interests |
9,392,105 |
8,628,127 |
||
| TOTAL STOCKHOLDER'S EQUITY |
$ |
171,029,422 |
$ |
156,948,768 |
| TOTAL LIABILITIES AND |
||||
| STOCKHOLDER'S EQUITY |
$ |
247,852,796 |
$ |
218,698,333 |
| AMERICAN LORAIN CORPORATION |
||||||||
| CONSOLIDATED STATEMENTS OF CASH FLOW |
||||||||
| FOR THE THREE AND NINE MONTHS ENDED SEPTEMPER 30, 2012 AND 2011 |
||||||||
| (Stated in US Dollars) |
||||||||
| Three months ended |
Nine months ended |
|||||||
| September 30, |
September 30, |
|||||||
| 2012 |
2011 |
2012 |
2011 |
|||||
| Cash flows from operating activities |
||||||||
| Net income |
$ |
5,607,714 |
$ |
7,891,526 |
$ |
12,928,991 |
$ |
13,929,352 |
| Stock and share based compensation |
328,897 |
146,806 |
380,504 |
452,179 |
||||
| Depreciation of fixed assets |
847,189 |
333,588 |
2,017,237 |
1,475,523 |
||||
| Amortization of intangible assets |
32,464 |
41,854 |
127,284 |
141,997 |
||||
| Write down/(gain) of short-term investments |
-30,702 |
- |
-78,465 |
|||||
| Adjustment to statutory reserve |
- |
- |
681,175 |
- |
||||
| (Increase)/decrease in accounts & other receivables |
-19,575,936 |
-13,203,625 |
-7,911,633 |
-6,831,817 |
||||
| (Increase)/decrease in inventories |
-11,914,113 |
6,268,000 |
-17,600,510 |
-5,022,660 |
||||
| Decrease/(increase) in prepayment |
-1,453,208 |
-2,650,221 |
-2,182,781 |
-2,965,900 |
||||
| Decrease/(increase) in deferred tax asset |
265 |
-1,237 |
-866 |
-3,625 |
||||
| Increase/(decrease) in accounts and other payables |
1,050,685 |
2,359,115 |
-1,563,843 |
-1,615,090 |
||||
| Net cash (used in)/provided by operating activities |
-25,076,044 |
1,155,104 |
-13,124,442 |
-518,506 |
||||
| Cash flows from investing activities |
||||||||
| Sale/(Proceeds) from short-term investment |
- |
-807,647 |
- |
1,358,573 |
||||
| Purchase of plant and equipment |
-2,707,402 |
-874,224 |
-2,834,954 |
-3,221,615 |
||||
| Payment of construction in progress |
- |
-507,155 |
- |
-978,260 |
||||
| Payment for the purchase of land use rights |
15,741 |
-60,047 |
-32,897 |
-194,397 |
||||
| (Increase)/decrease in restricted cash |
746,976 |
-1,816,892 |
-1,124,254 |
-6,572,121 |
||||
| Decrease (Increase) in deposit |
-1,556 |
136,099 |
-1,668 |
51,345 |
||||
| Sales/(purchase) of land investment |
- |
7,502,344 |
- |
7,502,344 |
||||
| Net cash used in investing activities |
-1,946,241 |
3,572,478 |
-3,993,774 |
-2,054,131 |
||||
| Cash flows from financing activities |
||||||||
| Repayment of bank borrowings |
- |
-5,278,540 |
-7,405,267 |
-22,060,396 |
||||
| Proceeds from bank borrowings |
19,753,932 |
3,853,879 |
19,066,286 |
22,036,891 |
||||
| Proceeds from long-term bank borrowings |
4,747,587 |
4,747,587 |
||||||
| Repayment of Notes |
- |
-3,085,517 |
- |
-4,249,977 |
||||
| Proceeds from issuance of notes |
- |
- |
- |
782,656 |
||||
| Issuance of common stock |
- |
27 |
- |
52 |
||||
| Net cash provided by/(used in) financing activities |
$ |
24,501,519 |
$ |
-4,510,151 |
$ |
16,408,606 |
-3,490,774 |
|
| Net Increase/(decrease) of Cash and Cash Equivalents |
-2,520,766 |
217,431 |
-709,610 |
-6,063,411 |
||||
| Effect of foreign currency translation on cash and cash equivalents |
-316,636 |
1,616,904 |
87,496 |
4,772,659 |
||||
| Cash and cash equivalents–beginning of period |
19,568,782 |
9,605,539 |
17,353,494 |
12,730,626 |
||||
| Cash and cash equivalents–end of period |
$ |
16,731,380 |
$ |
11,439,874 |
16,731,380 |
11,439,874 |
||
| Supplementary cash flow information: |
||||||||
| Interest received |
$ |
2,886 |
$ |
26,171 |
$ |
192,076 |
$ |
36,526 |
| Interest paid |
$ |
919,218 |
$ |
502,519 |
$ |
2,751,309 |
$ |
1,766,318 |
| Income taxes paid |
$ |
1,348,553 |
$ |
1,116,795 |
$ |
5,136,481 |
$ |
4,962,052 |
SOURCE American Lorain Corporation
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