american lorain corp nyse:aln upgraded
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American Lorain Corp NYSE:ALN UpgradedTRANSCRIPT
(NYSE AMEX: ALN) A Premier International Processed Foods Company
2010 Fourth Quarter and Year-end Conference Call – April 1, 2011
Mr. Si Chen, Chairman and CEO Mr. David She, CFO
Safe Harbor
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This presentation includes or incorporates by reference statements that constitute 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. These statements relate to future events or to our future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance, or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. These statements include, but are not limited to, information or assumptions about revenues, gross profit, expenses, income, capital and other expenditures, financing plans, capital structure, cash flow, liquidity, management’s plans, goals and objectives for future operations and growth. In some cases, you can identify forward-looking statements by the use of words such as “may,” “could,” “expect,” “intend,” “plan,” “seek,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “continue,” or the negative of these terms or other comparable terminology. You should not place undue reliance on forward-looking statements since they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond our control and which could materially affect actual results, levels of activity, performance or achievements.
Agenda
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• Short Speech from Chairman
• Highlights
• Market Overview
• Financials
• Outlook for 2011
Business • Premier international processed foods company
• China’s largest chestnut processor
• Leading snack food and convenience food manufacturer
• 36+ branches at 12/31/2010 covering all most major cities in China
Accomplishments • Achieved 2010 financial guidance
• 20-30% growth in top and bottom line
• Continued expansion of brand equity: Lorain® & Yimeng Lorain®
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Operating Highlights
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Company At-A-Glance
Ticker AMEX: ALN
Stock Price $2.51( as of March 30, 2011)
Industry Food Production / Distribution / Sales
Employees Approx. 2500
Shares Outstanding
34.4 million
Market Cap $86.3 million
Headquarters Shandong, China
Fiscal Year End
Dec. 31
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Operating and Market Overview
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Category
12/31/2010 12/31/2009 % Growth
Chestnut $ 101,165,457 $ 89,117,729 13.5%
Convenience food 56,751,766 34,623,978 63.9%
Frozen food 26,259,344 23,030,735 14.0%
For the 12 months ended
• Chestnut sales improved by 13.5% to $101.1 million in 2010
• Convenience food products remain fastest growing segment, reporting $56.8 million (up 63.9%) in 2010
• Frozen food segment grew by 14% in 2010 to $26.0 million
Financial Overview
(in thousands of USD) Q4 2010 Q4 2009
Sales $ 82,325 $ 62,931
Cost of revenues $ (63,663) $ (49,784)
Gross Profit $ 18,661 $ 13,147
Income from operations $ 12,527 $ $9,399
Earnings before tax $ 11,789 $ 8,292
Net income – common $ 8,215 $ 6,299
Diluted EPS $ 0.24 $ 0.23
Diluted Shares Out. 32,205 26,265
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2010 Fourth Quarter Financial Results
Revenue Q4 2010
Net Income
(in millions)
(in millions)
$0.0
$20.0
$40.0
$60.0
$80.0
$100.0
Q4 2009 Q4 2010
$62.9 $82.3
$0.0
$2.0
$4.0
$6.0
$8.0
$10.0
Q4 2009 Q4 2010
$6.3
$8.2
(in thousands of USD) YE 2010 YE 2009
Sales $ 184,177 $ 146,772
Cost of revenues $ (142,293) $ (114,064)
Gross Profit $ 41,884 $ 32,708
Income from operations $ 27,518 $ 22,607
Earnings before tax $ 25,079 $ 19,532
Net income - common $ 17,839 $ 14,408
Diluted EPS $ 0.55 $ 0.55
Diluted Shares Out. $ 32,205 $ 26,265
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Year End Financial Results
Revenue Q4 2010
Net Income
(in millions)
(in millions)
$0.0
$50.0
$100.0
$150.0
$200.0
2009 2010
$146.8
$184.2
$0.0
$5.0
$10.0
$15.0
$20.0
2009 2010
$14.4
$17.8
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2010 Guidance vs. Actual Results
American Lorain met or exceeded targets for fiscal 2010
($ in millions)
Public Guidance Low High
2010 Actual Results
Revenue $182.0 $190.0 184.2
Net Income - common $17.8 $19.0 $17.8
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2011 Outlook
Well positioned to continue organic growth at a conservative 20-30% growth rate
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Balance Sheet
(in USD millions, except per share data)
December 31, 2010
December 31, 2009
Total cash (excluding restricted) $ 12.7 $ 12.1
Working Capital $ 57.4 $ 49.9
Total Debt $ 34.7 $ 35.8
Shareholders’ equity $ 129.3 $ 94.7
Book value per share $ 3.76 $ 3.13
Contact Information
For more information, please contact: At the Company: American Lorain Corporation Mr. David She, CFO +86-10 8411 3393 [email protected] Web: http://www.americanlorain.com
Investor Relations: The Equity Group Inc. Katherine Yao Account Executive +86- 10 6587 6435 / [email protected] Adam Prior Vice President (212) 836-9606 / [email protected]
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