JUNAN COUNTY, China,
March 31, 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 fourth quarter and year ended December 31, 2010.
Q4 2010 Financial Highlights
- Total revenues of $82.3 million,
an increase of 30.8% year over year
- Gross margin improved to 22.7% from 20.9% year-over-year
- Net income attributable to common stockholders of $8.2 million, up 30.4% year-over-year
- Diluted earnings per share of $0.24 compared to $0.23 in the prior year period
Full-year 2010 Financial Highlights
- Total revenues of $184.2 million,
an increase of 25.5% from the prior year
- Gross margin improved to 22.7% from 22.3% in the prior
year
- Net income attributable to common stockholders was $17.8 million, an increase of 23.8%
year-over-year
- Diluted earnings per share of $0.55 compared to $0.55 in the prior year
- Generated $24.4 million in cash
from operations
- Company achieved 2010 guidance of $182.0
to $190.0 million in revenues and $17.8 million to $19.0 million in net income
- Book value per share of $3.76
American Lorain's Chairman and CEO, Mr. Si Chen, stated, "We are
very pleased with our growth during the quarter and year ended
December 31, 2010. We have
continued to benefit from our existing long-term supplier and
customer relationships, and are gaining significant traction in
consumer acceptance of our convenience food products. Despite
the various uncertainties weighing on the global economic
environment, we have remained growing and profitable. American
Lorain maintains a growing and diverse network of customers
throughout 26 provinces in China
and 42 countries around the world. We continued to expand our brand
name throughout China, and
improved sales domestically by 30.5% during 2010. In 2010,
73.3% of the Company's sales were generated domestically through
our network of distribution channels and relations. We also
improved our sales internationally by 13.6% primarily supported by
growth in the Asia-pacific region.
Our financial position is strong with approximately $57.4 million in working capital and a continued
record of generating free cash flow while still regularly investing
in our business."
2010 Operations and Market Overview
|
|
Category
|
|
For the 12 months
ended
|
|
|
|
|
12/31/2010
|
|
12/31/2009
|
%
Growth
|
|
Chestnut
|
$
|
101,165,457
|
$
|
89,117,729
|
13.50%
|
|
Convenience food
|
|
56,751,766
|
|
34,623,978
|
63.90%
|
|
Frozen food
|
|
26,259,344
|
|
23,030,735
|
14.00%
|
|
|
|
|
|
|
|
|
|
American Lorain's sales of chestnuts increased by 13.5% to
$101.2 million, and represented
approximately 54.9% of the Company's total revenues, as compared
with 60.7% over the same period of last year. This growth was
largely due to increased marketing efforts of the Company's 50+
varieties of chestnut products such as sweetheart chestnuts and
chestnut in syrup, as well as the increase in chestnut retail
prices. Sales of chestnuts were particularly strong during
the fourth quarter, which has historically been the Company's
strongest quarter due to the seasonality of chestnuts.
Convenience foods remained American Lorain's fastest growing
business segment, improving to $56.8
million (up 63.9%) for the year. Products in American
Lorain's convenience foods product line include 'ready to cook'
foods such as French fries, 'ready to eat' foods such as snack
beans and pickle vegetables, and 'meals ready to eat' which are
microwavable lunch box entrees or packaged foods with self-heating
devices for military personnel. For 2010, this segment
represented 30.8% of the Company's total sales as compared with
23.6% over the same period of last year, and the Company expects
this segment to continue to grow the fastest of its three business
lines.
American Lorain's frozen food segment contributed an increase of
14% to $26.3 million in 2010 from
$23.0 million in 2009, representing
14.3% of the total revenue as compared with 15.7% over the same
period of last year. Sales at the Company's frozen food
segment were improved by several large orders placed in the fourth
quarter.
2010 Fourth
Quarter and Year End Financial Review
American
Lorain Corporation
Selected
Financial Statements in USD ($ in 000s)
|
|
|
|
3 months
ended
|
|
3 months
ended
|
|
12 months
ended
|
|
12 months
ended
|
|
|
|
12/31/2010
|
|
12/31/2009
|
|
12/31/2010
|
|
12/31/2009
|
|
|
|
|
|
|
|
|
|
|
|
Sales
|
|
$82,324,813
|
|
$62,931,330
|
|
$184,176,567
|
|
$146,772,442
|
|
Cost of Revenues
|
($63,663,449)
|
|
($49,784,096)
|
|
($142,292,716)
|
|
($114,064,067)
|
|
Gross Profit
|
|
$18,661,364
|
|
$13,147,234
|
|
$41,883,851
|
|
$32,708,375
|
|
|
Gross Profit Ratio
|
22.7%
|
|
20.9%
|
|
22.7%
|
|
22.3%
|
|
Income from
operations
|
$12,527,416
|
|
$9,399,781
|
|
$27,517,774
|
|
$22,606,607
|
|
|
|
|
|
|
|
|
|
|
|
Earnings before tax
|
$11,789,903
|
|
$8,291,929
|
|
$25,078,749
|
|
$19,531,679
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to
common stockholders
|
$8,214,844
|
|
$6,299,043
|
|
$17,839,463
|
|
$14,408,112
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share
|
$0.24
|
|
$0.23
|
|
$0.55
|
|
$0.55
|
|
Weighted average diluted shares
outstanding
|
32,204,555
|
|
26,264,794
|
|
32,204,555
|
|
26,264,794
|
|
|
|
|
|
|
|
|
|
|
2010 Fourth Quarter Financial Review
- The Company reported sales for the 2010 fourth quarter of
$82.3 million, an increase of 30.8%
compared to $62.9 million in the
fourth quarter of 2009.
- Gross profit increased 41.9% to $18.7
million from $13.1 million in
the prior-year period. Gross margin increased to 22.7% for
the three months ended December 31,
2010, from 20.9% for the prior-year period. The increase
primarily reflected the increase in chestnut retail prices as well
as sales of higher margin chestnut products.
- Income from operations during the period was $12.5 million, an increase of 33.3% from
$9.4 million reported in the prior
year period. Operating margin for the 2010 fourth quarter was
15.2% compared with 14.9% in the prior year.
- The Company had net income for the fourth quarter of 2010 of
$8.2 million, or $0.24 per diluted share, compared to net income
of $6.3 million, or $0.23 per diluted share in the prior-year
period.
Full-year 2010 Financial Review
- For the year ended December 31,
2010, the Company reported revenues of $184.2 million, an increase of 25.5% compared to
$146.8 million in the prior
year.
- Gross profit increased 28.1% to $41.9
million from $32.7 million in
the prior year. Gross margin was 22.7% for the year ended
December 31, 2010, compared with
22.3% in full-year 2009.
- Income from operations for the year was $27.5 million, an increase of 21.7% from
$22.6 million reported in the prior
year. Operating margin for 2010 was 14.9% compared with 15.4%
for the prior year.
- The Company reported net income for the year ended December 31, 2010, of $17.8 million, or $0.55 per diluted share based on 32.2 million
weighted average diluted shares outstanding, compared with net
income of $14.4 million, or
$0.55 per diluted share based on 26.3
million diluted shares outstanding, in the prior year.
Balance Sheet Highlights and Financial Position
In December 2010, the Company
completed a sale of 3,440,800 shares of its Common Stock to Tongley
Investment Ltd. and several accredited investors in a private
placement transaction for proceeds of approximately $9.6 million, before payment of transaction fees
and expenses. The Company's use of this capital was allocated
to its chestnut business and primarily used in raw chestnut
procurement during the current chestnut season.
At December 31, 2010,
American Lorain's cash and cash equivalents (excluding
$2.3 million in restricted cash) were
$12.7 million, working capital was
$57.4 million, total debt was
$34.7 million, and stockholders'
equity was $129.3 million, compared
to $12.1 million, $49.9 million, $35.9
million, and $94.7 million,
respectively, at December 31, 2009.
In January 2010, the Company also
announced that it received the second tranche of a loan from the
German bank, DEG, in in the amount of $10
million. The total amount of the loan with DEG is
$15 million, and the first tranche of
$5 million was disbursed on
December 13, 2010. The loan has a
term of 5 years and commencing from the full disbursement, the
interest rate has been fixed at 5.51% per annum.
The Company currently has a book value per share at December 31, 2010 of $3.76.
Outlook for 2011
Mr. Chen concluded, "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 have chosen to not report official 2011
top and bottom line guidance at this time, but our Company is
continuing to generate excess cash flow and is well positioned to
continue organic growth at a 20-30% growth rate. Finally, we
also will strategically identify, research, and if appropriate,
look to acquire target companies with desired facilities in areas
that fit into American Lorain's growth plans."
Conference Call
The Company will also discuss these results in a conference call
tomorrow morning (April 1, 2011) at 9:00
a.m. ET.
Participant Dial-In Numbers:
Toll-Free Dial-In Number: (866) 832 - 6356
International Dial-In Number: (706) 758 - 7383
A recorded replay of the call will be available until
11:59 PM Eastern Time on April 3, 2011 12:00 AM
ET. Listeners may dial 800-642-1687 (Domestic) or
706-645-9291 (International) and use the code 49385632 for the
replay. The call will also be simultaneously broadcast over
the Internet. To listen to the live webcast, please go to
www.americanlorain.com and click on the conference call link, or go
directly to:
http://www.investorcalendar.com/IC/CEPage.asp?ID=163670. The
Company will also have an accompanying slide presentation available
in PDF format on its homepage prior to the conference call.
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
david.she@americanlorain.com
Web: http://www.americanlorain.com
Investor Relations:
The Equity Group Inc.
Katherine Yao
Account Executive
+86- 10 6587 6435 / kyao@equityny.com
Adam Prior
Vice President
(212) 836-9606 / aprior@equityny.com
AMERICAN
LORAIN corporation
CONSOLIDATED
STATEMENTS OF INCOME
FOR YEARS
ENDED DECEMBER 31, 2010 AND 2009
(Stated in
US Dollars)
|
|
|
|
Three months ended December
31
|
|
|
12 months ended December
31
|
|
|
2010
|
|
2009
|
|
|
2010
|
|
2009
|
|
Net revenues
|
$
|
82,324,813
|
$
|
62,931,330
|
|
$
|
184,176,567
|
$
|
146,772,442
|
|
Cost of revenues
|
|
(63,663,449)
|
|
(49,784,096)
|
|
|
(142,292,716)
|
|
(114,064,067)
|
|
Gross profit
|
$
|
18,661,364
|
$
|
13,147,234
|
|
$
|
41,883,851
|
$
|
32,708,375
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses
|
|
|
|
|
|
|
|
|
|
|
Selling and marketing
expenses
|
|
(3,919,503)
|
|
(2,898,682)
|
|
|
(8,559,003)
|
|
(6,454,953)
|
|
General and administrative
expenses
|
|
(2,214,445)
|
|
(848,771)
|
|
|
(5,807,074)
|
|
(3,646,815)
|
|
|
|
(6,133,948)
|
|
(3,747,453)
|
|
|
(14,366,077)
|
|
(10,101,768)
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
$
|
12,527,416
|
$
|
9,399,781
|
|
$
|
27,517,774
|
$
|
22,606,607
|
|
|
|
|
|
|
|
|
|
|
|
|
Government subsidy
income
|
|
571,996
|
|
115,538
|
|
|
1,270,957
|
|
355,656
|
|
Interest and other
income
|
|
298,030
|
|
15,459
|
|
|
1,057,609
|
|
248,303
|
|
Other expenses
|
|
(327,371)
|
|
(92,983)
|
|
|
(415,877)
|
|
(327,281)
|
|
Interest expense
|
|
(1,280,168)
|
|
(1,145,866)
|
|
|
(4,351,714)
|
|
(3,351,606)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
$
|
8,965,390
|
$
|
6,649,396
|
|
$
|
19,248,277
|
$
|
15,308,974
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable
to:
|
|
|
|
|
|
|
|
|
|
|
-Common stockholders
|
$
|
8,214,844
|
$
|
6,299,043
|
|
$
|
17,839,463
|
$
|
14,408,112
|
|
-Non-controlling
interest
|
|
750,546
|
|
350,353
|
|
|
1,408,814
|
|
900,862
|
|
|
$
|
8,965,390
|
$
|
6,649,396
|
|
$
|
19,248,277
|
$
|
15,308,974
|
|
Earnings per share
|
|
|
|
|
|
|
|
|
|
|
-
Basic
|
$
|
0.25
|
$
|
0.23
|
|
$
|
0.57
|
$
|
0.55
|
|
-
Diluted
|
$
|
0.24
|
$
|
0.23
|
|
$
|
0.55
|
$
|
0.55
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding
|
|
|
|
|
|
|
|
|
|
|
-
Basic
|
|
31,507,044
|
|
26,075,413
|
|
|
31,507,044
|
|
26,075,413
|
|
-
Diluted
|
|
32,204,555
|
|
26,264,794
|
|
|
32,204,555
|
|
26,264,794
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AMERICAN
LORAIN corporation
CONSOLIDATED
BALANCE SHEETS
AT DECEMBER
31, 2010 AND 2009
|
|
(Stated in
US Dollars)
|
|
|
|
|
At December
31,
|
|
At December
31,
|
|
ASSETS
|
|
|
2010
|
|
2009
|
|
Current assets
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
12,730,626
|
$
|
12,111,532
|
|
Restricted cash
|
|
|
2,308,898
|
|
1,299,889
|
|
Short-term
investment
|
|
|
9,447,585
|
|
7,320,248
|
|
Trade accounts receivable
|
|
|
33,226,612
|
|
23,025,772
|
|
Other receivables
|
|
|
1,492,850
|
|
8,440,791
|
|
Inventory
|
|
|
29,807,198
|
|
26,400,117
|
|
Advance to
suppliers
|
|
|
7,744,976
|
|
16,938,872
|
|
Prepaid expenses and
taxes
|
|
|
434,061
|
|
905,266
|
|
Deferred tax
asset
|
|
|
103,713
|
|
199,867
|
|
Security deposits and
other Assets
|
|
|
693,858
|
|
-
|
|
Total current assets
|
|
$
|
97,990,377
|
$
|
96,642,354
|
|
|
|
|
|
|
|
|
Non-current
assets
|
|
|
|
|
|
|
Property,
plant
and equipment, net
|
|
|
72,095,007
|
|
41,280,407
|
|
Land use
rights, net
|
|
|
4,877,438
|
|
3,871,547
|
|
Deposit
|
|
|
20,297
|
|
16,088
|
|
TOTAL ASSETS
|
|
$
|
174,983,119
|
$
|
141,810,396
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
Short-term
bank
loans
|
|
$
|
25,164,469
|
$
|
35,488,212
|
|
Long-term debt – current
portion
|
|
|
218,935
|
|
-
|
|
Notes payable
|
|
|
4,249,977
|
|
-
|
|
Accounts
payable
|
|
|
6,284,532
|
|
2,614,515
|
|
Taxes payable
|
|
|
3,266,502
|
|
2,235,341
|
|
Accrued liabilities
and other
payables
|
|
|
1,335,947
|
|
6,422,492
|
|
Customers
deposits
|
|
|
89,370
|
|
13,842
|
|
Total current liabilities
|
|
$
|
40,609,733
|
$
|
46,774,402
|
|
|
|
|
|
|
|
|
Long-term
liabilities
|
|
|
|
|
|
|
Long-term
bank
loans
|
|
|
5,030,930
|
|
294,873
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES
|
|
$
|
45,640,663
|
$
|
47,069,275
|
|
|
|
|
|
|
|
|
STOCKHOLDERS'
EQUITY
|
|
|
|
|
|
|
Preferred Stock, $.001 par
value, 5,000,000
shares authorized;
0 shares issued and outstanding at December 31, 2010 and 2009,
respectively
|
|
|
-
|
|
-
|
|
Common stock, $0.001 par value,
200,000,000 shares authorized; 34,419,709 and 30,240,202 shares
issued and outstanding as of December 31, 2010 and 2009,
respectively
|
|
|
34,420
|
|
30,240
|
|
Additional paid-in
capital
|
|
|
52,371,481
|
|
35,268,603
|
|
Statutory
reserves
|
|
|
11,340,739
|
|
8,895,477
|
|
Retained
earnings
|
|
|
48,688,375
|
|
38,455,349
|
|
Accumulated
other comprehensive
income
|
|
|
9,475,745
|
|
6,068,569
|
|
Non-controlling
interests
|
|
|
7,431,697
|
|
6,022,883
|
|
|
|
|
|
|
|
|
TOTAL STOCKHOLDER'S
EQUITY
|
|
$
|
129,342,457
|
$
|
94,741,121
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES
AND
|
|
|
|
|
|
|
STOCKHOLDER'S
EQUITY
|
|
$
|
174,983,119
|
$
|
141,810,396
|
|
|
|
|
|
|
|
|
|
|
|
AMERICAN
LORAIN corporation
CONSOLIDATED
STATEMENTS OF CASH FLOW
FOR YEARS
ENDED DECEMBER 31, 2010 AND 2009
(Stated in
US Dollars)
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
2010
|
|
2009
|
|
Cash flows from operating
activities
|
|
|
|
|
|
Net income
|
$
|
19,248,277
|
$
|
15,308,974
|
|
Stock and share based
compensation
|
|
890,210
|
|
166,398
|
|
Depreciation of fixed
assets
|
|
1,360,134
|
|
1,270,783
|
|
Amortization of
intangible assets
|
|
144,611
|
|
202,539
|
|
Write down of short-term
investments
|
|
587,117
|
|
-
|
|
Gain on acquisition of
subsidiary
|
|
(383,482)
|
|
-
|
|
Change in assets and liabilities
net of effects from acquisition of Shandong Greenpia:
|
|
|
|
|
|
(Increase)/decrease in
accounts & other receivables
|
|
(2,549,494)
|
|
(1,800,407)
|
|
(Increase)/decrease in
inventories
|
|
(2,812,750)
|
|
(1,572,195)
|
|
Decrease/(increase) in
prepayment
|
|
9,665,103
|
|
(16,200,484)
|
|
Decrease/(increase) in
deferred tax asset
|
|
96,155
|
|
(199,867)
|
|
Increase/(decrease) in
accounts and other payables
|
|
(1,816,937)
|
|
(8,018,565)
|
|
Net cash (used
in)/provided by operating activities
|
|
24,428,943
|
|
(10,842,825)
|
|
|
|
|
|
|
|
Cash flows from investing
activities
|
|
|
|
|
|
Shandong Greenpia acquisition
net of cash acquired
|
|
(1,695,315)
|
|
-
|
|
Purchase of plant and
equipment
|
|
(17,566,907)
|
|
(1,868,300)
|
|
Payment of construction in
progress
|
|
(11,188,400)
|
|
(481,203)
|
|
Sales (investment) in short term
investment fund
|
|
-
|
|
105,756
|
|
(Increase)/decrease in
restricted cash
|
|
(1,009,009)
|
|
2,416,109
|
|
Payments for the purchase of
land use rights
|
|
(190,109)
|
|
(123,157)
|
|
Payments for security
deposits
|
|
(698,067)
|
|
(16,088)
|
|
Purchase of land for short-term
investment
|
|
(3,301,571)
|
|
(7,312,935)
|
|
Net cash used in investing
activities
|
|
(35,649,378)
|
|
(7,279,819)
|
|
|
|
|
|
|
|
Cash flows from financing
activities
|
|
|
|
|
|
Issuance of common
stock
|
|
8,955,673
|
|
10,920,254
|
|
Repayment of notes
|
|
-
|
|
(5,208,485)
|
|
Proceeds from issuance of
notes
|
|
4,249,977
|
|
-
|
|
Proceeds from bank
borrowings
|
|
85,074,357
|
|
73,132,782
|
|
Repayment of bank
borrowings
|
|
(90,443,107)
|
|
(52,341,668)
|
|
Net cash provided by/(used in)
financing activities
|
$
|
7,836,900
|
$
|
26,502,883
|
|
|
|
|
|
|
|
Net Increase/(decrease) of Cash
and Cash Equivalents
|
|
(3,383,535)
|
|
8,380,239
|
|
|
|
|
|
|
|
Effect of foreign currency
translation on cash
|
|
|
|
|
|
and cash equivalents
|
|
3,994,293
|
|
889,953
|
|
|
|
|
|
|
|
Cash and cash
equivalents–beginning of year
|
|
12,111,532
|
|
2,841,339
|
|
|
|
|
|
|
|
Cash and cash equivalents–end of
year
|
$
|
12,722, 290
|
$
|
12,111,532
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SOURCE American Lorain
Corporation