American Lorain Corporation Reports 2011 Third Quarter Financial Results

Press Release

2011 Third Quarter Financial Review

American Lorain Corporation Selected Financial Statements in USD ($ in 000s)
		3 months ended		3 months ended	% Increase
		9/30/2011		9/30/2010
Sales		$55,642,041		$48,073,224	15.7%
Cost of Revenues		($43,291,417)		($37,293,496)	16.1%
Gross Profit		$12,350,624		$10,779,728	14.6%
	Gross Profit Ratio	22.2%		22.4%
Income from operations		$8,200,913		$7,063,609	16.1%
Earnings before tax		$9,779,476		$6,868,892	42.4%
Net income attributable to common stockholders		$7,071,288		$5,084,475	39.1%
Diluted earnings per share		$0.20		$0.16	27.3%
Weighted average diluted shares outstanding		34,605,668		31,679,871	9.2%
The Company reported sales for the 2011 third quarter of $55.6 million , an increase of 15.7% compared to $48.1 million in the third quarter of 2010. Gross profit increased14.6% to $12.4 million from $10.8 million in the prior-year period. Gross margin declined slightly to 22.2% for the three months ended September 30, 2011 , from 22.4% 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 $8.2 million , an increase of 16.1% from $7.1 million reported in the prior year period. Operating margin remained the same at 14.7% for the 2011 third quarter compared with same period in the prior year. The Company had net income attributable to common shareholders for the third quarter 2011 of $7.1 million , or $0.20 per diluted share based on 34.6 million diluted shares outstanding, compared to $5.1 million , or $0.16 per diluted share based on 31.8 million diluted shares outstanding in the prior-year period. The Company's net margin for the period was 12.7% compared with 10.6% in the prior year period. The increase in net income was largely attributable to a $2.1 million other income we recognized in the third quarter when we sold the land previously carried on our balance sheet as short term investment. Without the effect of the land sale, our net income increased 6.1% to $5.4 million for the three months ended September 30, 2011 from $5.1 million in the same period of last year. Please refer to note 22 to the financial statements for details. STABLE RESULTS DESPITE INFLATIONARY CLIMATE, COMPANY DESERVES HIGHER STOCK PRICE. M&A CANDIDATE !