Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - Planet Green Holdings Corp. | form8k.htm |
Exhibit 99.1
AMERICAN LORAIN CORPORATION REPORTS 2011 SECOND QUARTER FINANCIAL RESULTS
Company to Hold Conference Call Tuesday, August 16, 2011, at 8:00 a.m. ET -
JUNAN COUNTY, China, August 15, 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 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 month ended June 30, 2011 and 2010:
| Three month 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 month ended June 30, 2011 and 2010:
| Three month 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.”
| American Lorain Corporation | Page 2 |
| August 15, 2011 |
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.”
| American Lorain Corporation | Page 3 |
| August 15, 2011 |
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.
| American Lorain Corporation | Page 4 |
| August 15, 2011 |
For more information, please contact:
American
Lorain Corporation
Mr. David She, CFO
+86-10 8411 3393
david.she@americanlorain.com
www.americanlorain.com
| American Lorain Corporation | Page 5 |
| August 15, 2011 |
| AMERICAN LORAIN CORPORATION |
| CONSOLIDATED STATEMENTS OF INCOME |
| FOR THE THREE AND SIX MONTHS ENDEDJUNE 30, 2011 and 2010 |
| (Stated in US Dollars) |
| Three months ended June 30, | Six months ended June 30, | |||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||
| Net revenues | $ | 35,726,650 | $ | 29,218,314 | $ | 66,176,455 | $ | 53,778,530 | ||||
| Cost of revenues | (28,070,066 | ) | (22,499,645 | ) | (51,744,961 | ) | (41,335,771 | ) | ||||
| Gross profit | $ | 7,656,584 | $ | 6,718,669 | $ | 14,431,493 | $ | 12,442,759 | ||||
| Operating expenses | ||||||||||||
| Selling and marketing expenses | (1,088,768 | ) | (1,194,996 | ) | (2,451,454 | ) | (2,567,348 | ) | ||||
| General and administrative | ||||||||||||
| expenses | (1,593,366 | ) | (932,210 | ) | (3,069,313 | ) | (1,948,662 | ) | ||||
| (2,682,134 | ) | (2,127,206 | ) | (5,520,767 | ) | (4,516,010 | ) | |||||
| Operating income | $ | 4,974,450 | $ | 4,591,463 | $ | 8,910,727 | $ | 7,926,749 | ||||
| Investment income | - | 589 | - | 589 | ||||||||
| Government subsidy income | 302,259 | 196,003 | 595,352 | 377,424 | ||||||||
| Interest and other income | 102,372 | 8,901 | 149,457 | 130,982 | ||||||||
| Other expenses | (21,483 | ) | (44,714 | ) | (181,055 | ) | (72,237 | ) | ||||
| Interest expense | (610,111 | ) | (1,023,129 | ) | (1,263,235 | ) | (1,943,553 | ) | ||||
| Earnings before tax | $ | 4,747,488 | $ | 3,729,113 | $ | 8,211,247 | $ | 6,419,954 | ||||
| Income tax | (1,277,553 | ) | (857,604 | ) | (2,173,421 | ) | (1,529,596 | ) | ||||
| Net income | $ | 3,469,935 | $ | 2,871,509 | $ | 6,037,826 | $ | 4,890,358 | ||||
| Other comprehensive income: | ||||||||||||
| Foreign currency translation | ||||||||||||
| gain | 1,875,108 | 400,424 | 3,107,991 | 419,885 | ||||||||
| Comprehensive income | $ | 5,345,043 | $ | 3,271,933 | $ | 9,145,817 | $ | 5,310,243 | ||||
| Net income attributable to: | ||||||||||||
| -Common Stockholders | $ | 3,262,451 | $ | 2,679,613 | $ | 5,688,739 | $ | 4,540,144 | ||||
| -Non-controlling Interest | 207,484 | 191,896 | 349,087 | 350,214 | ||||||||
| Net income | $ | 3,469,935 | $ | 2,871,509 | $ | 6,037,826 | $ | 4,890,358 | ||||
| Earnings per share | ||||||||||||
| - Basic | $ | 0.09 | $ | 0.10 | $ | 0.17 | $ | 0.17 | ||||
| - Diluted | $ | 0.09 | $ | 0.10 | $ | 0.16 | $ | 0.17 | ||||
| Weighted average shares outstanding | ||||||||||||
| - Basic | 34,427,582 | 26,075,413 | 34,427,582 | 26,075,413 | ||||||||
| - Diluted | 35,030,343 | 26,750,592 | 35,030,343 | 26,750,592 |
| American Lorain Corporation | Page 6 |
| August 15, 2011 |
| AMERICAN LORAIN CORPORATION |
| CONSOLIDATED BALANCE SHEETS |
| AT JUNE 30, 2011 AND DECEMBER 31, 2010 |
| (Audited) | ||||||
| At June 30, | At December 31, | |||||
| ASSETS | 2011 | 2010 | ||||
| Current assets | ||||||
| Cash and cash equivalents | $ | 9,605,538 | $ | 12,730,626 | ||
| Restricted cash | 7,064,127 | 2,308,898 | ||||
| Short-term investment | 6,769,421 | 9,447,585 | ||||
| Trade accounts receivable | 27,002,950 | 33,226,612 | ||||
| Other receivables | 1,841,750 | 1,492,850 | ||||
| Inventories | 41,097,859 | 29,807,198 | ||||
| Advance to suppliers | 8,027,308 | 7,744,976 | ||||
| Prepaid expenses and taxes | 467,407 | 434,061 | ||||
| Deferred tax asset | 106,100 | 103,713 | ||||
| Security deposits and other Assets | 628,998 | 693,858 | ||||
| Total current assets | $ | 102,611,458 | $ | 97,990,377 | ||
| Non-current assets | ||||||
| Investment | 464,181 | - | ||||
| Property, plant and equipment, net | 73,771,569 | 72,095,007 | ||||
| Land use rights, net | 4,911,645 | 4,877,438 | ||||
| Deposit | 169,911 | 20,297 | ||||
| TOTAL ASSETS | $ | 181,928,763 | $ | 174,983,119 | ||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||
| Current liabilities | ||||||
| Short-term bank loans | $ | 16,428,735 | $ | 25,164,469 | ||
| Long-term debt – current portion | 56,089 | 218,935 | ||||
| Notes payable | 3,868,173 | 4,249,977 | ||||
| Accounts payable | 4,091,972 | 6,284,532 | ||||
| Taxes payables | 1,357,095 | 3,266,502 | ||||
| Accrued liabilities and other payables | 1,463,710 | 1,335,947 | ||||
| Customers deposits | 586,415 | 89,370 | ||||
| Total current liabilities | $ | 27,852,188 | $ | 40,609,732 | ||
| Long-term liabilities | ||||||
| Long-term debt | 15,330,667 | 5,030,930 | ||||
| TOTAL LIABILITIES | $ | 43,182,855 | $ | 45,640,662 |
| (Audited) | ||||||
| At June 30, | At December 31, | |||||
| 2011 | 2010 | |||||
| STOCKHOLDERS’ EQUITY | ||||||
| Preferred Stock, $.001 par value, 5,000,000 shares authorized; 0 | - | |||||
| Common stock, $0.001 par value, 200,000,000 shares authorized; | 34,445 | 34,420 | ||||
| Additional paid-in capital | 52,676,854 | 52,371,481 | ||||
| Statutory reserves | 12,069,925 | 11,340,739 | ||||
| Retained earnings | 53,647,928 | 48,688,375 |
| Accumulated other comprehensive income | 12,535,972 | 9,475,745 | ||||
| Non-controlling interests | 7,780,784 | 7,431,697 | ||||
| TOTAL STOCKHOLDER’S EQUITY | $ | 138,745,907 | $ | 129,342,457 | ||
| TOTAL LIABILITIES AND STOCKHOLDER’S EQUITY | $ | 181,928,763 | $ | 174,983,119 |
| American Lorain Corporation | Page 7 |
| August 15, 2011 |
| AMERICAN LORAIN CORPORATION |
| CONSOLIDATED STATEMENTS OF CASH FLOW |
| FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2011 AND 2010 |
| (Stated in US Dollars) |
| Three months ended June 30, | Six months ended June 30, | |||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||
| Cash flows from operating activities | ||||||||||||
| Net income | $ | 3,469,935 | $ | 2,871,509 | $ | 6,037,826 | $ | 4,890,358 | ||||
| Stock and share based compensation | 131,671 | 205,943 | 305,373 | 454,949 | ||||||||
| Depreciation | 669,969 | 322,416 | 1,141,935 | 687,985 | ||||||||
| Amortization | 49,549 | 33,341 | 94,435 | 69,061 | ||||||||
| Write down/(gain) on short-term investment | (92,673 | ) | - | (47,763 | ) | - | ||||||
| (Increase)/decrease in accounts & other receivables | (5,627,103 | ) | 4,205,909 | 6,371,808 | 8,294,930 | |||||||
| (Increase)/decrease in inventories | (2,366,929 | ) | 1,798,055 | (11,290,660 | ) | (7,675,643 | ) | |||||
| (Increase)/decrease in prepayment | (77,666 | ) | 972,209 | (315,679 | ) | 734,094 | ||||||
| (Increase)/decrease in deferred tax asset | (1,411 | ) | (2,388 | ) | - | |||||||
| Increase/(decrease) in accounts and other payables | (1,583,873 | ) | (1,648,161 | ) | (3,974,205 | ) | (1,950,117 | ) | ||||
| Net cash (used in)/provided by operating activities | (5,428,531 | ) | 8,761,221 | (1,679,318 | ) | 5,505,617 | ||||||
| Cash flows from investing activities | ||||||||||||
| Proceeds from short-term investments | 467,879 | - | 2,166,220 | 22,227 | ||||||||
| (Increase)/decrease in restricted cash | (2,205,347 | ) | 376,613 | (4,755,229 | ) | 558,448 | ||||||
| Payment of construction in progress | (90,840 | ) | (471,105 | ) | ||||||||
| Payment of land use rights | (76,740 | ) | (18,318 | ) | (128,642 | ) | (33,205 | ) | ||||
| Payments for purchase of equipment & plant | (1,567,871 | ) | (9,618,218 | ) | (2,347,391 | ) | (10,045,753 | ) | ||||
| Decrease (increase) in deposit | (154,034 | ) | - | (84,754 | ) | - | ||||||
| Net cash used in investing activities | (3,626,952 | ) | (9,259,923 | ) | (5,620,902 | ) | (9,498,283 | ) | ||||
| Cash flows from financing activities | ||||||||||||
| Bank borrowings | 6,733,544 | 5,297,856 | 18,183,012 | 23,151,602 | ||||||||
| Repayment of bank loans | (9,406,948 | ) | (2,900,729 | ) | (20,980,396 | ) | (20,861,829 | ) | ||||
| Notes payable | 763,347 | - | 3,816,736 | - | ||||||||
| Issue of common stock | 25 | - | 25 | - | ||||||||
| Net cash provided by/(used in) financing activities | $ | (1,910,033 | ) | $ | 2,397,127 | $ | 1,019,377 | $ | 2,289,773 | |||
| Net Increase/(decrease) of Cash and Cash Equivalents | (10,965,515 | ) | 1,898,425 | (6,280,842 | ) | (1,702,893 | ) | |||||
| Effect of foreign currency translation on cash and cash equivalents | 1,967,781 | (89,298 | ) | 3,155,754 | (69,848 | ) | ||||||
| Cash and cash equivalents–beginning of period/year | 18,603,272 | 8,529,664 | 12,730,626 | 12,111,532 | ||||||||
| Cash and cash equivalents–end of period/year | $ | 9,605,538 | $ | 10,338,791 | $ | 9,605,538 | $ | 10,338,791 | ||||
| American Lorain Corporation | Page 8 |
| August 15, 2011 |
| Three months ended June 30, | Six months ended June 30, | |||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||
| Supplementary cash flow information: | ||||||||||||
| Interest received | $ | 7,879 | $ | 3,998 | $ | 10,355 | $ | 6,802 | ||||
| Interest paid | $ | 610,675 | $ | 1,018,530 | $ | 1,263,799 | $ | 1,938,954 | ||||
| Income taxes paid | $ | 1,816,289 | $ | 649,208 | $ | 3,845,257 | $ | 2,489,131 | ||||