Agilyx Ord Shs AGXXF

RE:RE:RE:Question for the board - Provision for Income Taxes

[BlueCollar51]

Matlock wrote:

I think you've hit the nail on the head here.  A bit funky how the adjusted earnings work - I understand their logic in why they deduct the provision for income taxes in arriving at the adjusted number, as typically income taxes should be driven by profits rather than foreign exchange effects.  In this funky quarter, pretty much the full EBIT was driven by foreign exchange effects.

That said, yes, I think the way it calculated out in Q1 did distort the adjusted net earnings number.

As a back-of-hand calculation, starting from adjusted net earnings of $4,722, add back the portion of the $10,959 that one could attribute to the foreign exchange effects (which I say is $24,519/$27,006 = 90.7%).  $4722+$10959*.907 = $14,662, which on a per-share basis is 61 cents/share fully diluted.

61 cents/share adjusted net earnings is right in line with prior quarters (0.64, 0.51, 0.44, 0.42).

Agree with your earlier comment, yes, eventually forex effects do become real.  In theory, over the sufficiently long-term, adjusted net earnings and basic net earnings should be the same based on what their 'adjusted' net earnings represent (i.e. over time, forex effects should approximately net out to zero).

Kind of in the same boat on this company that you are - I averaged in at $26.92 in April 2015.  Hard to judge if/when to add to this, given the past few days.
 

GLTA.

I added a bit (not a lot) to my position today.
 
In my “opinion” the recent sell off has been a bit overdone.
 
That said we never know until we can apply hindsight when a selloff has run it’s course.
 
In my “opinion” AGT could be a very good Long Term Investment. They have found a “niche” in the Global Agricultural, Food Processing and Manufacturing Industry. Quite an accomplishment for some guys from Saskatchewan with contacts in Turkey.
 
I suspect that the rational for the “Share Holders Rights Plan” is to make it a bit more difficult for somebody like Cargill to gobble them up.
 
My impression of the CEO Murad Al-Katib is that he is a relatively young ambitious guy whose goal is to make AGT a force in the Global Pulse Industry.
 
Only time will tell how successful he will be….
 
As Always; Do Your Own Due Diligence; It’s Your Money !!