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8-K - FORM 8-K - Planet Green Holdings Corp. | form8k.htm |
AMERICAN LORAIN CORPORATION REPORTS 2011 FIRST QUARTER FINANCIAL RESULTS
Company to Hold Conference Call Tuesday, May 17, 2011, at
9:00 a.m. ET -
Accompanying Slide Presentation at
www.americanlorain.com
JUNAN COUNTY, China, May 16, 2011 -- 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 first quarter ended March 31, 2011.
Q1 2011 Operational Highlights
Each product
segment increased by over 16% in sales year-over-year
Convenience food
segment continued to grow as a percent of total revenue
Companys
international sales continued to improve, increasing 49.2%
Q1 2011 Financial Highlights
Total revenues of
$30.4 million, an increase of 24.0% year over year
Gross margins decreased
slightly to 22.2%, compared to 23.3% year-over-year and 22.7% at 12/31/2010
Net income attributable to common stockholders of $2.4 million, up 30.4%
year-over-year
Diluted earnings per share of $0.07
Operating cash
flow of $3.8 million for the period ended March 31, 2011
2011 Operations and Market Overview
Sales by categories of product consisted of the following as of March 31, 2011 and 2010:
Category | 3/31/2011 | 3/31/2010 | % Increase | ||||||
Chestnut | $ | 15,050,594 | $ | 12,960,561 | 16.1% | ||||
Convenience food | 10,003,660 | 7,089,176 | 41.1% | ||||||
Frozen food | 5,395,552 | 4,510,479 | 19.6% | ||||||
Total | $ | 30,449,805 | $ | 24,560,216 | 23.9% |
Categories of product as a percentage of sales as of March 31, 2011 and 2010:
Category | 3/31/2011 % of Total Revenues | 3/31/2010 % of Total Revenues | % Difference | ||||||
Chestnut | 49.4% | 52.8% | (3.4% | ) | |||||
Convenience food | 32.9% | 28.9% | 4.0% | ||||||
Frozen food | 17.7% | 18.3% | (0.6% | ) | |||||
Total | 100% | 100% |
American Lorains Chairman and CEO, Mr. Si Chen, stated, We are extremely pleased with the performance of the Company in the first quarter. We believe the largest contributor to our growth in the coming months will be the continued expansion of our convenience foods segment, as was the case in the first quarter. We continue to focus on both diversifying our lines to include a wider variety of food products and leveraging our known brand name among different segments, as evidenced by our expansion in the instant rice market.
Although the first quarter is seasonally one of our weakest due to the chestnut business, American Lorains highly competitive cost structure, coordinated sales and marketing platform, and continued diverse food operations allowed us to deliver another solid quarter. Over the past two years, American Lorain has made significant improvements to the balance sheet and cash generation. We reported $3.8 million in operating cash flow during the period. We believe that the Company is appropriately capitalized to grow organically in the coming months.
American Lorain Corporation | Page 2 |
May 16, 2011 |
2011 First Quarter Financial Review
American Lorain Corporation | |||||||||
Selected Financial Statements in USD ($ in 000s) | |||||||||
3 months ended | 3 months ended | % Increase | |||||||
3/31/2011 | 3/31/2010 | ||||||||
Sales | $ | 30,449,805 | $ | 24,560,216 | 24.0% | ||||
Cost of Revenues | ($23,674,895 | ) | ($18,836,126 | ) | 25.7% | ||||
Gross Profit | $ | 6,774,910 | $ | 5,724,090 | 18.4% | ||||
Gross Profit Ratio | 22.2% | 23.3% | |||||||
Income from operations | $ | 3,936,277 | $ | 3,335,286 | 18.0% | ||||
Earnings before tax | $ | 3,463,759 | $ | 2,690,841 | 28.7% | ||||
Net income attributable to common stockholders | $ | 2,426,288 | $ | 1,860,531 | 30.4% | ||||
Diluted earnings per share | $ | 0.07 | $ | 0.07 | 0.0% | ||||
Weighted average diluted shares outstanding | 35,155,958 | 26,730,651 | 31.5% |
- The Company reported sales for the 2011 first quarter of $30.4 million, an increase of 24.0% compared to $24.6 million in the first quarter of 2010.
- Gross profit increased 18.4% to $6.8 million from $5.7 million in the prior-year period. Gross margin declined slightly to 22.2% for the three months ended March 31, 2011, from 23.3% for the prior-year period. The decrease is primarily due to a higher percentage of sales from the American Lorains convenience foods, which typically sell at a slightly lower margin than the Companys chestnut business. 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 $3.9 million, an increase of 18.0% from $3.3 million reported in the prior year period. Operating margin for the 2011 first quarter was 12.9% compared with 13.6% in the prior year.
- The Company had net income attributable to common shareholders for the fourth quarter of 2010 of $2.4 million, or $0.07 per diluted share based on 35.2 million diluted shares outstanding, compared to $1.9 million, or $0.07 per diluted share based on 26.7 million diluted shares outstanding in the prior-year period. The Companys net margin for the period improved to 8.0% from 7.5% in the prior year period, largely because of lower interest expenses.
Balance Sheet Highlights and Financial Position
(in millions) | 3/31/2011 | 12/31/2010 | % Increase | ||||||
Cash and Cash Equivalents | $ | 18.6 | $ | 12.7 | 46.5% | ||||
Restricted Cash | 4.9 | 2.3 | 113.0% | ||||||
Working Capital | 70.8 | 57.4 | 23.4% | ||||||
Total Liabilities | 47.3 | 45.6 | 3.6% | ||||||
Stockholders Equity | 133.4 | 129.3 | 3.2% |
The Company had a book value per share at March 31, 2011 of $3.87.
Outlook for 2011
Mr. Chen concluded, Chestnut sales (both domestically and internationally) have remained strong throughout the first four months of the year when compared to last. While it is always a challenge to precisely assess customer demand for our products, we are optimistic about fiscal 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. We are in a very basic business, supplying easy, ready-to-eat food to individuals across the globe. In tough economic times, people tend to cook at home by shopping at their local grocer. This is our core business and, along with our international presence, we should be better positioned than many of our local competitors in this regard. We are optimistic about the outlook of our market growth in China and 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.
American Lorain Corporation | Page 3 |
May 16, 2011 |
Conference Call
The Company will also discuss these
results in a conference call tomorrow morning (May 17, 2011) at 9:00 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=164281. The
Company will also have an accompanying slide presentation available in PDF
format on its website prior to the conference call.
Phone Replay Information
A recorded replay of the call will
be available until 11:59 p.m. ET on May 23, 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 #: 371500
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.
American Lorain Corporation | Page 4 |
May 16, 2011 |
Investor Relations: | |
For more information, please contact: | The Equity Group Inc. |
At the Company: | Katherine Yao |
American Lorain Corporation | Account Executive |
Mr. David She, CFO | +86- 10 6587 6435 / kyao@equityny.com |
+86-10 8411 3393 | |
david.she@americanlorain.com | Adam Prior |
Web: http://www.americanlorain.com | Vice President |
(212) 836-9606 / aprior@equityny.com |
American Lorain Corporation | Page 5 |
May 16, 2011 |
AMERICAN LORAIN CORPORATION |
CONSOLIDATED STATEMENTS OF INCOME |
FOR THE THREE MONTHS ENDED MARCH 31, 2011 and 2010 |
(Stated in US Dollars) |
March 31, | March 31, | |||||
2011 | 2010 | |||||
Net revenues | $ | 30,449,805 | $ | 24,560,216 | ||
Cost of revenues | (23,674,895 | ) | (18,836,126 | ) | ||
Gross profit | $ | 6,774,910 | $ | 5,724,090 | ||
Operating expenses | ||||||
Selling and marketing expenses | (1,362,686 | ) | (1,372,352 | ) | ||
General and administrative expenses | (1,475,947 | ) | (1,016,452 | ) | ||
(2,838,633 | ) | (2,388,804 | ) | |||
Operating income | $ | 3,936,277 | $ | 3,335,286 | ||
Government subsidy income | 293,093 | 181,421 | ||||
Interest income | 2,475 | 2,804 | ||||
Other income | 44,609 | 119,277 | ||||
Other expenses | (159,572 | ) | (27,523 | ) | ||
Interest expense | (653,123 | ) | (920,424 | ) | ||
(472,518 | ) | (644,445 | ) | |||
Earnings before tax | $ | 3,463,759 | $ | 2,690,841 | ||
Income tax | (895,868 | ) | (671,992 | ) | ||
Net income | $ | 2,567,891 | $ | 2,018,849 | ||
Net income attributable to: | ||||||
-Common stockholders | $ | 2,426,288 | $ | 1,860,531 | ||
-Non-controlling interest | 141,603 | 158,318 | ||||
$ | 2,567,891 | $ | 2,018,849 | |||
Earnings per share | ||||||
- Basic | $ | 0.07 | $ | 0.07 | ||
- Diluted | $ | 0.07 | $ | 0.07 | ||
Weighted average shares outstanding | ||||||
- Basic | 34,419,709 | 26,075,413 | ||||
- Diluted | 35,155,958 | 26,730,651 |
American Lorain Corporation | Page 6 |
May 16, 2011 |
AMERICAN LORAIN CORPORATION |
CONSOLIDATED BALANCE SHEETS |
AT MARCH 31, 2011 AND DECEMBER 31, 2010 |
(Audited) | ||||||
At March 31, | At December 31, | |||||
ASSETS | 2011 | 2010 | ||||
Current assets | ||||||
Cash and cash equivalents | $ | 18,603,272 | $ | 12,730,626 | ||
Restricted cash | 4,858,780 | 2,308,898 | ||||
Short term investment | 7,794,153 | 9,447,585 | ||||
Trade accounts receivable | 21,835,538 | 33,226,612 | ||||
Other receivables | 1,976,234 | 1,492,850 | ||||
Inventories | 38,730,930 | 29,807,198 | ||||
Advance to suppliers | 7,467,094 | 7,744,976 | ||||
Prepaid expenses and taxes | 949,956 | 434,061 | ||||
Deferred tax asset | 104,689 | 103,713 | ||||
Security deposits and other Assets | 628,998 | 693,858 | ||||
Total current assets | $ | 102,949,644 | $ | 97,990,377 | ||
Non-current assets | ||||||
Property, plant and equipment, net | 72,782,827 | 72,095,007 | ||||
Land use rights, net | 4,884,453 | 4,877,438 | ||||
Deposit | 15,878 | 20,297 | ||||
TOTAL ASSETS | $ | 180,632,802 | $ | 174,983,119 | ||
LIABILITIES AND STOCKHOLDERS EQUITY | ||||||
Short-term bank loans | $ | 16,139,139 | $ | 25,164,469 | ||
Long-term debt current portion | 220,998 | 218,935 | ||||
Notes payable | 6,106,777 | 4,249,977 | ||||
Accounts payable | 5,468,206 | 6,284,532 | ||||
Taxes payables | 1,248,383 | 3,266,502 | ||||
Accrued liabilities and other payables | 1,780,060 | 1,335,947 | ||||
Customers deposits | 1,180,590 | 89,370 | ||||
Total current liabilities | $ | 32,144,154 | $ | 40,609,732 | ||
Long-term liabilities | ||||||
Long-term debt | 15,126,807 | 5,030,930 | ||||
TOTAL LIABILITIES | $ | 47,270,960 | $ | 45,640,662 | ||
STOCKHOLDERS EQUITY | ||||||
Preferred Stock,
$.001 par value, 5,000,000 shares authorized;
0 shares issued and outstanding at March 31, 2011 and December 31, 2010, respectively |
- |
- |
||||
Common stock,
$0.001 par value, 200,000,000 shares
authorized; 34,419,709 and 34,419,709 shares issued and outstanding as of March 31, 2011 and December 31, 2010, respectively |
34,420 |
34,420 |
||||
Additional paid-in capital | 52,545,183 | 52,371,481 | ||||
Statutory reserves | 12,060,229 | 11,340,739 | ||||
Retained earnings | 50,395,173 | 48,688,375 | ||||
Accumulated other comprehensive income | 10,753,537 | 9,475,745 | ||||
Non-controlling interests | 7,573,300 | 7,431,697 | ||||
TOTAL STOCKHOLDERS EQUITY | $ | 133,361,842 | $ | 129,342,457 | ||
TOTAL LIABILITIES AND |
STOCKHOLDERS EQUITY | $ | 180,632,802 | $ | 174,983,119 |
American Lorain Corporation | Page 7 |
May 16, 2011 |
AMERICAN LORAIN CORPORATION |
CONSOLIDATED STATEMENTS OF CASH FLOW |
FOR THE THREE MONTHS ENDED MARCH 31, 2011 AND 2010 |
(Stated in US Dollars) |
March 31, | March 31, | |||||
2011 | 2010 | |||||
Cash flows from operating activities | ||||||
Net income | $ | 2,567,891 | $ | 2,018,849 | ||
Stock and share based compensation | 173,702 | 249,006 | ||||
Depreciation of fixed assets | 483,601 | 365,569 | ||||
Amortization of intangible assets | 44,886 | 35,720 | ||||
Write down of short-term investments | 44,909 | - | ||||
(Increase)/decrease in accounts & other receivables | 11,998,911 | 4,089,021 | ||||
(Increase)/decrease in inventories | (8,923,732 | ) | (9,473,698 | ) | ||
Decrease/(increase) in advance to suppliers and prepayment | (238,013 | ) | (238,115 | ) | ||
Decrease/(increase) in deferred tax asset | (977 | ) | - | |||
Increase/(decrease) in accounts, tax and other payables | (2,390,331 | ) | (301,956 | ) | ||
Net cash (used in)/provided by operating activities | 3,760,847 | (3,255,604 | ) | |||
Cash flows from investing activities | ||||||
Purchase of plant and equipment | (791,155 | ) | (427,535 | ) | ||
Payment of construction in progress | (380,266 | ) | - | |||
Proceeds from short-term investments | 1,698,341 | 22,227 | ||||
(Increase)/decrease in restricted cash | (2,549,882 | ) | 181,835 | |||
Payments for the purchase of land use rights | (51,902 | ) | (14,887 | ) | ||
Payments for security deposits | 69,279 | - | ||||
Net cash used in investing activities | (2,005,585 | ) | (238,360 | ) | ||
Cash flows from financing activities | ||||||
Repayment of notes | (1,196,589 | ) | - | |||
Proceeds from issuance of notes | 3,053,390 | - | ||||
Proceeds from bank borrowings | 11,449,469 | 17,853,746 | ||||
Repayment of bank borrowings | (10,376,859 | ) | (17,961,100 | ) | ||
Net cash provided by/(used in) financing activities | $ | 2,929,411 | $ | (107,354 | ) | |
Net Increase/(decrease) of Cash and Cash Equivalents | 4,684,673 | (3,601,318 | ) | |||
Effect of foreign currency translation on cash and cash equivalents | 1,187,973 | 19,450 | ||||
Cash and cash equivalentsbeginning of year | 12,730,626 | 12,111,532 | ||||
Cash and cash equivalentsend of year | $ | 18,603,272 | $ | 8,529,664 | ||
Supplementary cash flow information: | ||||||
Interest received | $ | 2,475 | $ | 2,804 | ||
Interest paid | $ | 653,123 | $ | 909,715 | ||
Income taxes paid | $ | 2,028,968 | $ | 1,839,950 |