LINYI, China, Nov. 20, 2015 /PRNewswire/ -- American
Lorain Corporation (NYSE MKT: ALN)
(the "Company" or "American Lorain"), an international
processed snack foods, convenience foods, and frozen foods company
based in Shandong Province, China, today announced financial results for
the third quarter ended September 30,
2015.
Third Quarter FY 2015 Highlights vs. the
Comparable Period of 2014
Revenue decreased by $7.58 million
to $47.68 million for the third
quarter FY 2015 compared to the prior year period;
Gross profit of $8.29 million for
the third quarter FY 2015 as compared to $9.16 million of the same period in 2014;
Gross margin of 17.39% for the third quarter of FY 2015 as
compared to 16.57% in comparison to the same period in 2014;
Operating income of $4.07 million
an increase of 47.86% in comparison to $2.75
million of the same period in 2014;
Net income of $1.88 million or
$0.06 per fully diluted share,
compared with net income of $0.73
million or $0.03 per fully
diluted share of the same period in 2014;
Management Comments
"We were so glad to see both our operating income and net income
increased by 48% YOY and 157% YOY, respectively. During the third
quarter, the Company made tremendous progresses for our newly
launched Youtiao product. And the Company was also actively moving
forward with new products for China breakfast market along with the other
business segment. Our offices all around the country were working
very closely with local dealers to promote all kinds of the
product," Said Mr. Chen Si, Chairman
and CEO of American Lorain
Corporation, "The Company continues to expand new sales
channels to grow its customer base and increase its revenues. We
will continuously devote ourselves to deliver the optimal returns
to our shareholders in the future."
Third Quarter 2015
Financial Results
|
Revenue and Gross
Profit
|
|
Stated in US
Dollars
|
|
3Q15
|
|
3Q14
|
|
Y-O-Y%
|
Revenue
|
47,681,598
|
|
55,264,211
|
|
-13.72%
|
Gross
Profit
|
8,290,041
|
|
9,156,591
|
|
-9.46%
|
Gross
Margin
|
17.39%
|
|
16.57%
|
|
0.82%
|
Revenue for the three months ended September 30, 2015 dropped by $7.58 million, or 13.72%, as compared to the
three months ended September 30,
2014, it is principally as a result of a question raised by
CTCPA, with respect to the origin of canned chestnuts sold by
Conserverie Minerve ("Minerve") and Minerve chestnuts come
from a Chinese cultivar, while CTCPA stated that only chestnuts
based on the European or Japanese cultivars can be used in canned
chestnut products sold in France
according to CTCPA policies. The Company has since shipped
chestnuts based on the Japanese cultivar grown in China to Minerve.
Gross Margin was 17.39% for the three months ended September 30, 2015 as compared to 16.57% for the
same period of 2014, it was primarily due to the fact that
higher-margin products contributed more revenue in current quarter
than in the same period of last year.
Operating
Income/Expenses
|
Stated in US
Dollars
|
|
3Q15
|
|
3Q14
|
|
Y-O-Y%
|
Operating
Expenses
|
4,224,141
|
|
6,406,721
|
|
-34.07%
|
Operating
Income
|
4,065,900
|
|
2,749,870
|
|
47.86%
|
Operating
Margin
|
8.53%
|
|
4.98%
|
|
3.55%
|
Selling
and marketing expenses
|
1,875,739
|
|
3,044,877
|
|
-38.40%
|
General
and administrative expenses
|
2,348,402
|
|
3,361,844
|
|
-30.15%
|
|
4,224,141
|
|
6,406,721
|
|
-34.07%
|
Selling and Marketing Expenses. Our selling and marketing
expenses decreased by approximately $1.17
million, or 38.40%, to $1.88
million for the three months ended September 30, 2015. The overall decrease was
mainly due to the decrease of personnel costs and transportation
costs, which was in line with the decline of net revenue.
Management actively worked to control sales related expenses in
accordance with market and sales conditions.
General and Administrative Expenses. Our general and
administrative expenses decreased by approximately $1.01 million, or 30.15%, to $2.35 million for the three months ended
September 30, 2015. As our revenues
decreased, we prepared our budget to strictly control our expenses
incurred. The main items leading to the decrease of our expenses
are our staff welfare expense and office supply
expense.
The operating income increased by 47.86%, or $1.32 million, to approximately $4.07 million YOY. It was mainly due to the fact
that the operating expense dropped by approximately 34.07% YOY to
4.22 million for the three months ended September 30, 2015.
Net Income
Net income increased by approximately $1.15 million, or 157.24%, to $1.88 million for the three months ended
September 30, 2015. The increase was
attributable to decrease of operating expenses in the three months
ended September 30, 2015 as compared
to the three months ended September 30,
2014.
As of September 30, 2015, we had
cash and cash equivalents of approximately $31.1 million. The Company's total current assets
as of September 30, 2015, were
$197.4 million and total current
liabilities were $105.4 million,
which resulted in a positive net working capital of $92.0 million.
AMERICAN LORAIN
CORPORATION
|
UNAUDITED
CONSOLIDATED BALANCE SHEETS
|
AT SEPTEMBER 30,
2015 AND DECEMBER 31, 2014
|
(Stated in US
Dollars)
|
|
|
|
|
|
|
(Audited)
|
|
|
At September
30,
|
|
|
At December
31,
|
ASSETS
|
|
2015
|
|
|
2014
|
Current
assets
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
31,145,108
|
|
$
|
30,279,988
|
Restricted
cash
|
|
14,262,450
|
|
|
4,195,114
|
Trade accounts
receivable
|
|
41,142,978
|
|
|
58,806,466
|
Other
receivables
|
|
12,670,630
|
|
|
8,183,485
|
Inventory
|
|
58,002,702
|
|
|
51,648,160
|
Advance to
suppliers
|
|
33,473,757
|
|
|
42,479,437
|
Prepaid expenses and
taxes
|
|
2,887,635
|
|
|
2,758,334
|
Security deposits and
other assets
|
|
3,821,959
|
|
|
3,578,514
|
Total current
assets
|
$
|
197,407,219
|
|
$
|
201,929,498
|
|
|
|
|
|
|
Non-current
assets
|
|
|
|
|
|
Investment
|
|
3,284,719
|
|
|
3,258,125
|
Property, plant and
equipment, net
|
|
84,823,722
|
|
|
89,148,530
|
Construction in
Progress, net
|
|
13,866,188
|
|
|
14,340,145
|
Intangible assets,
net
|
|
16,652,212
|
|
|
17,537,868
|
Goodwill
|
|
9,955,983
|
|
|
10,327,553
|
TOTAL
ASSETS
|
$
|
325,990,043
|
|
$
|
336,541,719
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
Short-term bank
loans
|
$
|
36,839,015
|
|
$
|
41,645,100
|
Notes
payable
|
|
3,053,465
|
|
|
6,005,430
|
Convertible
promissory note
|
|
-
|
|
|
3,500,000
|
Long-term debt –
current portion
|
|
34,925,487
|
|
|
19,226,094
|
Accounts
payable
|
|
18,680,167
|
|
|
10,071,009
|
Taxes
payable
|
|
3,511,059
|
|
|
4,320,470
|
Accrued liabilities
and other payables
|
|
5,655,640
|
|
|
4,153,054
|
Related party
payable
|
|
1,809,493
|
|
|
2,433,300
|
Deferred tax
liabilities
|
|
19,204
|
|
|
70,545
|
Customers
deposits
|
|
412,954
|
|
|
61,428
|
Capital lease –
current portion
|
|
465,916
|
|
|
-
|
Total current
liabilities
|
$
|
105,372,400
|
|
$
|
91,486,430
|
AMERICAN LORAIN
CORPORATION
|
UNAUDITED
CONSOLIDATED BALANCE SHEETS
|
AT SEPTEMBER 30,
2015 AND DECEMBER 31, 2014
|
(Stated in US
Dollars)
|
|
|
|
|
|
|
(Audited)
|
|
|
At September
30,
|
|
|
At December
31,
|
|
|
2015
|
|
|
2014
|
|
|
|
|
|
|
Long-term
liabilities
|
|
|
|
|
|
Long-term bank
loans
|
|
567,112
|
|
|
2,707,587
|
Notes payable and
debenture
|
|
11,009,160
|
|
|
32,581,249
|
Capital
lease
|
|
831,595
|
|
|
-
|
TOTAL
LIABILITIES
|
$
|
117,780,267
|
|
$
|
126,775,266
|
|
|
|
|
|
|
COMMITMENTS AND
CONTINGENCIES
|
|
|
|
|
|
|
|
|
|
|
|
STOCKHOLDERS'
EQUITY
|
|
|
|
|
|
Preferred Stock,
$0.001 par value, 5,000,000 shares
authorized; 0 shares
issued and outstanding at
September 30, 2015 and December 31, 2014,
respectively
|
|
-
|
|
|
-
|
Common Stock, $0.001
par value, 200,000,000 shares
authorized; 38,259,490 shares and 34,916,714
shares
issued and outstanding as of
September 30, 2015 and
December 31, 2014, respectively
|
|
38,259
|
|
|
34,917
|
Additional paid-in
capital
|
|
57,844,419
|
|
|
53,853,089
|
Statutory
reserves
|
|
23,038,917
|
|
|
23,038,917
|
Retained
earnings
|
|
100,340,007
|
|
|
99,021,555
|
Accumulated other
comprehensive income
|
|
15,838,394
|
|
|
20,796,420
|
Non-controlling
interests
|
|
11,109,780
|
|
|
13,021,555
|
|
|
|
|
|
|
TOTAL
STOCKHOLDER'S EQUITY
|
$
|
208,209,776
|
|
$
|
209,766,453
|
|
|
|
|
|
|
TOTAL LIABILITIES
AND STOCKHOLDER'S EQUITY
|
$
|
325,990,043
|
|
$
|
336,541,719
|
AMERICAN LORAIN
CORPORATION
|
UNAUDITED
CONSOLIDATED STATEMENTS OF INCOME
|
AND COMPREHENSIVE
INCOME
|
FOR THE THREE AND
NINE MONTHS PERIOD ENDED SEPTEMBER 30, 2015 AND 2014
|
(Stated in US
Dollars)
|
|
|
|
For the three
months period
|
|
|
For the nine
months period
|
|
|
|
ended September
30,
|
|
|
ended September
30,
|
|
|
|
2015
|
|
|
2014
|
|
|
2015
|
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
revenues
|
$
|
47,681,598
|
|
$
|
55,264,211
|
|
$
|
120,786,813
|
|
$
|
119,469,809
|
|
Cost of
revenues
|
|
39,391,557
|
|
|
46,107,620
|
|
|
101,073,478
|
|
|
96,582,685
|
|
Gross
profit
|
$
|
8,290,041
|
|
$
|
9,156,591
|
|
$
|
19,713,335
|
|
$
|
22,887,124
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling and marketing
expenses
|
|
1,875,739
|
|
|
3,044,877
|
|
|
5,037,527
|
|
|
5,783,319
|
|
General and
administrative expenses
|
|
2,348,402
|
|
|
3,361,844
|
|
|
9,530,701
|
|
|
6,756,226
|
|
|
|
4,224,141
|
|
|
6,406,721
|
|
|
14,568,228
|
|
|
12,539,545
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
$
|
4,065,900
|
|
$
|
2,749,870
|
|
$
|
5,145,107
|
|
$
|
10,347,579
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Government subsidy
income
|
|
941,545
|
|
|
401,443
|
|
|
1,947,630
|
|
|
2,209,814
|
|
Interest
income
|
|
116,451
|
|
|
94,186
|
|
|
391,056
|
|
|
151,510
|
|
Other
income
|
|
87,371
|
|
|
779,644
|
|
|
649,045
|
|
|
935,198
|
|
Other
expenses
|
|
(347,684)
|
|
|
(74,946)
|
|
|
(850,313)
|
|
|
(220,456)
|
|
Interest
expense
|
|
(2,017,820)
|
|
|
(2,553,415)
|
|
|
(5,620,812)
|
|
|
(6,332,249)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings/(loss)
before tax
|
$
|
2,845,763
|
|
$
|
1,396,782
|
|
$
|
1,661,713
|
|
$
|
7,091,396
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
|
|
(967,650)
|
|
|
(666,673)
|
|
|
(2,255,036)
|
|
|
(2,378,889)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income/(loss)
|
$
|
1,878,113
|
|
$
|
730,109
|
|
$
|
(593,323)
|
|
$
|
4,712,507
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive
income/(loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation gain/(loss)
|
|
(6,063,073)
|
|
|
82,660
|
|
|
(4,958,027)
|
|
|
(2,020,740)
|
|
Comprehensive
Income/(Loss)
|
|
(4,184,960)
|
|
|
812,769
|
|
|
(5,551,350)
|
|
|
2,691,767
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income/(loss)
attributable to:
|
|
|
|
|
|
|
|
|
|
|
|
|
-Common
stockholders
|
$
|
2,263,262
|
|
$
|
1,179,001
|
|
$
|
1,318,452
|
|
$
|
4,909,926
|
|
-Non-controlling
interest
|
|
(385,149)
|
|
|
(448,892)
|
|
|
(1,911,775)
|
|
|
(197,419)
|
|
|
$
|
1,878,113
|
|
$
|
730,109
|
|
$
|
(593,323)
|
|
$
|
4,712,507
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings/(loss) per
share
|
|
|
|
|
|
|
|
|
|
|
|
|
- Basic
|
$
|
0.06
|
|
$
|
0.03
|
|
$
|
0.04
|
|
$
|
0.14
|
|
- Diluted
|
$
|
0.06
|
|
$
|
0.03
|
|
$
|
0.04
|
|
$
|
0.14
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
- Basic
|
|
38,259,490
|
|
|
34,745,285
|
|
|
36,727,504
|
|
|
34,873,699
|
|
- Diluted
|
|
38,259,490
|
|
|
34,745,285
|
|
|
36,727,504
|
|
|
34,873,699
|
|
AMERICAN LORAIN
CORPORATION
|
UNAUDITED
CONSOLIDATED STATEMENTS OF CASH FLOW
|
FOR THE THREE AND
NINE MONTHS PERIOD ENDED SEPTEMBER 30, 2015 AND 2014
|
(Stated in US
Dollars)
|
|
|
|
For the three
months period
|
|
|
For the nine
months period
|
|
|
ended September
30,
|
|
|
ended September
30,
|
|
|
2015
|
|
|
2014
|
|
|
2015
|
|
|
2014
|
Cash flows from
operating activities
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
1,878,113
|
|
|
730,109
|
|
|
(593,323)
|
|
|
4,712,507
|
Stock compensation
expense
|
|
-
|
|
|
366,000
|
|
|
987,500
|
|
|
366,000
|
Depreciation of fixed
assets
|
|
1,023,350
|
|
|
1,093,167
|
|
|
3,037,385
|
|
|
2,926,095
|
Amortization of
intangible assets
|
|
97,727
|
|
|
485,916
|
|
|
289,497
|
|
|
672,370
|
(Increase)/decrease
in accounts and
other
receivables
|
|
(12,837,631)
|
|
|
(17,077,118)
|
|
|
11,063,323
|
|
|
2,262,344
|
(Increase)/decrease
in inventories
|
|
8,567,805
|
|
|
(15,298,226)
|
|
|
(1,034,711)
|
|
|
(35,514,753)
|
Decrease/(increase)
in prepayment
|
|
(96,065)
|
|
|
(178,964)
|
|
|
(230,948)
|
|
|
(2,488,951)
|
Decrease/(increase)
in deferred tax
asset
|
|
(12,351)
|
|
|
(52)
|
|
|
(38,327)
|
|
|
1,263
|
Increase/(decrease)
in accounts and
other
payables
|
|
7,629,986
|
|
|
27,357,598
|
|
|
12,887,010
|
|
|
28,019,912
|
Increase/(decrease)
in related party
payable
|
|
40,442
|
|
|
-
|
|
|
(397,660)
|
|
|
-
|
Net cash (used
in)/provided by
operating
activities
|
|
6,291,376
|
|
|
(2,521,570)
|
|
|
25,969,746
|
|
|
956,787
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities
|
|
|
|
|
|
|
|
|
|
|
|
Payment for
acquisition of Athena
Group
|
|
-
|
|
|
2,100,000
|
|
|
-
|
|
|
-
|
Purchase of plant and
equipment
|
|
(1,512,795)
|
|
|
(5,152,779)
|
|
|
(1,905,906)
|
|
|
(6,167,956)
|
Disposal/(Purchase)
of intangible assets
|
|
444
|
|
|
(2,064,247)
|
|
|
(56,813)
|
|
|
(1,935,326)
|
(Increase)/decrease
in restricted cash
|
|
(4,655,012)
|
|
|
198,008
|
|
|
(10,529,664)
|
|
|
(2,444,287)
|
(Increase)/decrease
in deposit
|
|
(62,971)
|
|
|
(8,427,528)
|
|
|
(606,921)
|
|
|
(8,403,929)
|
Sales of
investments
|
|
(159,615)
|
|
|
-
|
|
|
-
|
|
|
-
|
Net cash used in
investing activities
|
|
(6,389,949)
|
|
|
(13,346,546)
|
|
|
(13,099,304)
|
|
|
(18,951,498)
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities
|
|
|
|
|
|
|
|
|
|
|
|
Repayment of bank
borrowings
|
|
(4,241,287)
|
|
|
(505,914)
|
|
|
(7,731,253)
|
|
|
(8,970,772)
|
Proceeds from bank
borrowings and
debentures
|
|
12,257,115
|
|
|
7,563,144
|
|
|
16,388,949
|
|
|
21,867,129
|
(Repayment)/proceeds
of long-term
borrowings and notes
payable
|
|
(14,225,110)
|
|
|
4,605,638
|
|
|
(21,109,957)
|
|
|
11,354,924
|
Net cash provided
by/(used in)
financing
activities
|
$
|
(6,209,282)
|
|
$
|
11,662,868
|
|
$
|
(12,452,261)
|
|
$
|
24,251,281
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Increase/(decrease) of cash and
cash
equivalents
|
|
(6,307,855)
|
|
|
(4,205,248)
|
|
|
418,181
|
|
|
6,256,570
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of foreign
currency translation on
cash and cash
equivalents
|
|
185,641
|
|
|
2,777,136
|
|
|
446,939
|
|
|
673,737
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents–beginning of
period
|
|
37,267,322
|
|
|
42,215,612
|
|
|
30,279,988
|
|
|
33,857,193
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents–end of
period
|
$
|
31,145,108
|
|
$
|
40,787,500
|
|
$
|
31,145,108
|
|
$
|
40,787,500
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplementary cash
flow information:
|
|
|
|
|
|
|
|
|
|
|
|
Interest
received
|
$
|
116,451
|
|
$
|
94,186
|
|
$
|
391,056
|
|
$
|
151,510
|
Interest
paid
|
$
|
554,080
|
|
$
|
1,482,803
|
|
$
|
2,815,173
|
|
$
|
3,243,753
|
Income taxes
paid
|
$
|
788,965
|
|
$
|
961,838
|
|
$
|
1,973,428
|
|
$
|
4,003,028
|
About American Lorain
Corporation
American Lorain Corporation
(NYSE:ALN) is China's leading
chestnut, convenience food product and frozen food product
manufacturer. The company currently has 8 world-class production
facilities in China and
Europe, which can supply more than
200 kinds of product categories. For domestic trade, it has more
than thirty offices, with its sales network covers large cities,
medium-size cities and coastal open cities all over China. Regarding to international trade, the
products are exported to more than 20 countries and regions, such
as Japan, South Korea, Taiwan, Southeast
Asia and Europe, which
makes our company enjoys a high reputation in the international
market. For more information on American Lorain Corporation, please visit:
http://en.usalr.cn/index.html
Forward Looking Statements
This news release contains "forward-looking statements" within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended, and as defined in the U.S. Private Securities Litigation
Reform Act of 1995. These forward-looking statements can be
identified by terminology such as "will," "expects," "anticipates,"
"future," "intends," "plans," "believes," "estimates" and similar
statements. All statements other than statements of historical fact
in this press release are forward-looking statements and involve
certain risks and uncertainties that could cause actual results to
differ materially from those in the forward-looking statements.
These forward-looking statements are based on management's current
expectations, assumptions, estimates and projections about the
Company and the industry in which the Company operates, but involve
a number of unknown risks and uncertainties. Further information regarding these and
other risks is included in the Company's filings with the U.S.
Securities and Exchange Commission. The Company undertakes no
obligation to update forward-looking statements to reflect
subsequent occurring events or circumstances, or changes in its
expectations, except as may be required by law. Although the
Company believes that the expectations expressed in these forward
looking statements are reasonable, it cannot assure you that such
expectations will turn out to be correct, and actual results may
differ materially from the anticipated results. You are urged to
consider these factors carefully in evaluating the forward-looking
statements contained herein and are cautioned not to place undue
reliance on such forward-looking statements, which are qualified in
their entirety by these cautionary statements.
Contact:
Johnny Zhou
Tel.: +86 13917303401
E-mail: johnny.zhou@usalr.cn
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/american-lorain-corporation-reports-third-quarter-fiscal-year-2015-financial-results-300182468.html
SOURCE American Lorain
Corporation