American Lorain Corporation Reports 2011 Second Quarter Financial Results

Date:2012-08-22 10:12:37

- Company to Hold Conference Call Tuesday, August 16, 2011, at 8:00 a.m. ET -

JUNAN COUNTY, China, Aug. 15, 2011 /PRNewswire-Asia-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 second quarter ended June 30, 2011.

Q2 2011 Operational Highlights

  • Each product segment increased by over 19% in sales year-over-year
  • Convenience food segment continued to grow as a percent of total revenue
  • Continued channel building efforts and progress such as sales to railway system


 

Q2 2011 Financial Highlights

  • Total revenues of $35.7 million, an increase of 22.3% year over year
  • Gross margins decreased slightly to 21.4%, compared to 23.0% year-over-year and 22.7% at 12/31/2010
  • Net income attributable to common stockholders of $3.3 million, up 21.8% year-over-year
  • Diluted earnings per share of $0.09


 

2011 Operations and Market Overview

Sales by categories of product consisted of the following for the three months ended June 30, 2011 and 2010:

                     Three months ended

 

Category

 

6/30/2011

 

6/30/2010

% Increase

 

Chestnut

$

17,719,636

$

14,868,240

19.2%

 

Convenience food

 

12,807,758

 

10,269,991

24.7%

 

Frozen food

 

5,199,255

 

4,080,083

27.4%

 

Total

$

35,726,650

$

29,218,314

22.3%

 
   
           

 

Categories of product as a percentage of sales for the three months ended June 30, 2011 and 2010:

                  Three months ended

 

Category

6/30/2011 % of Total Revenues

6/30/2010 % of Total Revenues

Difference

 

Chestnut

49.6%

50.9%

(1.3%)

 

Convenience food

35.8%

35.1%

0.7%

 

Frozen food

14.6%

14.0%

0.6%

 

Total

100%

100%

   
   
       

 

American Lorain's Chairman and CEO, Mr. Si Chen, stated, "We are satisfied with the Company's performance in the second quarter, during which we have achieved solid growth in each of our three business lines despite various difficulties such as the general inflation. We believe the largest contributor to our growth in the coming months will be the continued expansion of our convenience foods segment, as well as the chestnut food segment as we enter the seasonally strong quarters. We believe the continuous focus on product quality and building our distribution channels and brand equity is key to the Company's success in a competitive landscape and will continue to execute on these strategies in the coming months."

2011 Second Quarter Financial Review

American Lorain Corporation

Selected Financial Statements in USD ($ in 000s)

 
         

3 months ended

 

3 months ended

% Increase

 
         

6/30/2011

 

6/30/2010

   
                   

Sales

     

$35,726,650

 

$29,218,314

22.3%

 

Cost of Revenues

   

($28,070,066)

 

($22,499,645)

24.8%

 

Gross Profit

   

$7,656,584

 

$6,718,669

14.0%

 
 

Gross Profit Ratio

   

21.4%

 

23.0%

   

Income from operations

   

$4,974,450

 

$4,591,463

8.3%

 
                   

Earnings before tax

   

$4,747,488

 

$3,729,113

27.3%

 
                   

Net income attributable to common stockholders

$3,262,451

 

$2,679,613

21.8%

 
                   

Diluted earnings per share

   

$0.09

 

$0.10

(10.0%)

 

Weighted average diluted shares outstanding

35,030,343

 

26,750,592

31.0%

 
                 

 
  • The Company reported sales for the 2011 second quarter of $35.7 million, an increase of 22.3% compared to $29.2 million in the second quarter of 2010.
  • Gross profit increased14.0% to $7.7 million from $6.7 million in the prior-year period. Gross margin declined slightly to 21.4% for the three months ended June 30, 2011, from 23.0% for the prior-year period, due to inflation pressure. However, American Lorain expects that its margins will remain relatively stable and in the 20-25% range in the coming months.
  • Income from operations during the period was $5.0 million, an increase of 8.3% from $4.6 million reported in the prior year period. Operating margin for the 2011 second quarter was 13.9% compared with 15.7% in the prior year.
  • The Company had net income attributable to common shareholders for the second quarter of 2011 of $3.3 million, or $0.09 per diluted share based on 35.0 million diluted shares outstanding, compared to $2.7 million, or $0.10 per diluted share based on 26.8 million diluted shares outstanding in the prior-year period. The Company's net margin for the period was 9.1% compared with 9.2% in the prior year period.


 

Balance Sheet Highlights and Financial Position

(in millions)

 

6/30/2011

 

12/31/2010

% Increase

 

Cash and Cash Equivalents

$

9.6

$

12.7

(24.5%)

 

Restricted Cash

 

7.1

 

2.3

206.0%

 

Working Capital

 

74.8

 

57.4

30.3%

 

Total Liabilities

 

43.2

 

45.6

(5.4%)

 

Stockholders' Equity

 

138.7

 

129.3

7.3%

 
           

 

The Company had a book value per share at June 30, 2011 of $4.03.

Outlook for 2011

Mr. Chen concluded, "We are optimistic about the second half of 2011 based on what we are seeing thus far. The efforts of our management group in all three business segments are producing greater efficiencies in both the operating infrastructure and costs control which will help us as we continue to grow. Despite the current uncertainties weighing on the global economy, we remain optimistic about the outlook of our market growth in China and as well as abroad because of growing demand, improving brand recognition, and balanced supply. We will continue to execute on the Company's core strategies of driving growth through each of our business segments."  

Conference Call

The Company will also discuss these results in a conference call tomorrow morning (August 16, 2011) at 8:00 a.m. ET.

Participant Dial-In Numbers:

(In the United States):                      

877-407-8031

 

(International):

201-689-8031

 
   

 

Webcast

The call will also be simultaneously broadcast over the Internet. To listen to the live webcast, please go to http://www.americanlorain.com and click on the conference call link, or go directly to: http://www.investorcalendar.com/IC/CEPage.asp?ID=165541.

Phone Replay Information

A recorded replay of the call will be available until 11:59 p.m. ET on August 19, 2011. Listeners may dial:

(In the United States):                      

877-660-6853

 

(International):

201-612-7415

 
   

 

The following replay passcodes are both required for playback:

Account #: 286

 

Conference ID #: 377216

 
 

 

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:

 

American Lorain Corporation

 

Mr. David She, CFO

 

+86-10 8411 3393

 

[email protected]

 

www.americanlorain.com

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