Financials for 2nd Qtr outhttps://sedar.com/CheckCode.do;jsessionid=0000PvzAlbNXzen2smbFOZVfWEE:17lkkk26t Legumex Walker Reports Financial Results for the Second Quarter 2013 - Pacific Coast Canola Achieves Significant Milestone with Start of Commercial Production/ Special Crops Continues to Generate Solid Cash Flow - WINNIPEG, Aug. 13, 2013 /CNW/ - Legumex Walker Inc. (TSX: LWP) (the "Company") today reported its financial results for the three months and six months ended June 30, 2013. All figures are in Canadian dollars unless otherwise stated. Highlights for the First Half Ended June 30, 2013 (all growth metrics reflect comparison to the first half ended June 30, 2012) Special Crops Segment: Revenue increased 29% to $173.9 million on an increase in tonnes shipped of 24% to 201,900; Adjusted gross profit1 increased 21% to $14.5 million from $12.0 million; EBITDA1 increased to $8.9 million from $8.0 million. Consolidated: Loss before interest, taxes depreciation and amortization of $3.0 million compared with EBITDA of $4.5 million, primarily attributable to commissioning of the PCC plant; Excluding cash flow used in operations1 by PCC during commissioning, cash flow provided by operations (net of corporate costs) of $3.6 million compared with $3.4 million. Highlights for the Second Quarter Ended June 30, 2013 (all growth metrics reflect comparison to the second quarter ended June 30, 2012): Special Crops Segment: Revenue increased for the quarter 33% to $91.2 million on an increase in tonnes shipped of 30% to 104,400 tonnes; Adjusted gross profit for the quarter of $5.3 million compared with $6.3 million; EBITDA for the quarter of $2.6 million compared with $4.0 million; Commenced the addition of a new processing plant in Dalian, China, expected to be in operation in time for the fall harvest, to take advantage of growth in sales opportunities out of China; Undertook targeted marketing efforts in grower areas of western Canada, Minnesota and North Dakota, added additional procurement resources and secured sourcing and storage agreements in order to secure sufficient handling volumes to meet customer demand. Oilseed Processing Segment: Completed commissioning and, in late July, entered commercial operations at the Pacific Coast Canola plant ("PCC Plant"), currently operating one of two lines or approximately 50% capacity; PCC Plant expected to achieve full production this year. Consolidated: Loss before interest, taxes depreciation and amortization for the quarter of $3.2 million compared with EBITDA of $2.3 million, primarily attributable to final commissioning of the PCC plant; Excluding cash flow used in operations by PCC during commissioning, cash flow provided by operations (net of corporate costs) for the quarter of $928,000 compared with $3.7 million. "We are very pleased to report that we are now in commercial production at our Pacific Coast Canola facility, running one of our two lines, or about 50% capacity," said Joel Horn, President and Chief Executive Officer. "The plant is operating as designed, all key industry certifications are in place, and the quality of our oil and meal continues to exceed our expectations. It is fully capable of running at full production and we are actively building the commercial business and enhancing our logistics capabilities to support full production, which we expect to reach this year as the harvest of the new crop gets into full swing." "The start of commercial production at PCC is a tremendous milestone and the entire team there is to be commended for their hard work and congratulated for their success," added Mr. Horn. "We have an outstanding team at PCC and look forward to their continued success as they focus on the exciting next step of building the commercial business." Mr. Horn continued, "It was another solid quarter our Special Crops business, which is contributing enough cash to cover the corporate expenses of our entire business, " added Mr. Horn. "We realized growth in tonnage and revenue, while we continued to benefit from the increased diversification in our business. After normalizing for exceptionally high commodity margins in the second quarter of last year stemming from our St. Hilaire Seed acquisition, we saw meaningful yearover- year growth in profitability and cash flow. We are pleased with the performance of this segment in 2013 as we continue to leverage our platform for sales and margin opportunities while pursuing opportunities for efficiencies, utilization and lower operating costs." Results for the Quarter Ended June 30, 2013 Consolidated revenue for the second quarter of 2013 increased by 64% to $112.1 million compared with $68.5 million for the second quarter of 2012. The increase is primarily the result of product mix and higher tonnes sold from the Special Crops segment and revenue generated by the Oilseed Processing segment, which sold and shipped 29,900 tonnes of oil and meal. Adjusted gross profit for the second quarter of 2013 was $2.1 million compared with $6.3 million for the second quarter of 2012. The decrease reflects a $1.0 million decrease in contribution from the Special Crops segment, primarily due to the absence of exceptionally high Edible Bean margins realized in the second quarter of 2012 and a $3.2 million loss from the Oilseed Processing segment during the commissioning phase of the PCC Facility, offset by increased volumes and margin from sunflower, flax and birdfood sales. The loss before interest, taxes, depreciation and amortization for the second quarter of 2013 was $3.2 million compared with EBITDA of $2.3 million in the second quarter of 2012. The loss for the second quarter of 2013 included a loss of $3.9 million for the Oilseed Processing segment during the final commissioning phase of the PCC Facility. Selling and administrative (S&A) expenses for the second quarter were $5.4 million compared with $4 million for the second quarter of 2012 adjusted for non-recurring items. S&A expenses included non-cash stock-based compensation expenses for the second quarter of 2013 of $0.4 million compared with $0.2 million for the second quarter of 2012. Corporate costs for the second quarter of 2013 were $1.9 million compared with $1.4 million for the second quarter of 2012. Net loss attributable to shareholders for the second quarter of 2013 was $8.7 million, or $0.53 loss per share, compared with earnings attributable to shareholders of $250,000, or $0.02 per share, for the second quarter of 2012. The loss attributable to shareholders for the second quarter of 2013 includes a loss of $5.4 million, or $0.33 loss per share, during the commissioning of the PCC plant. Special Crops Segment Revenue for the Special Crops segment for the second quarter of 2013 increased 33% to $91.2 million compared with $68.5 million for the second quarter of 2012. The Company sold 104,400 tonnes of special crops in the second quarter of 2013, up 30% from 80,500 tonnes sold in the second quarter of 2012. The increase in volume was entirely attributable to the acquisition of Keystone Grain Limited in October, 2012. Increased volumes contributed $2.3 million of incremental commodity profit in the second quarter of 2013, which was offset by a $1.7 million reduction from lower commodity margins. The second quarter of 2012 benefitted from exceptionally high Edible Beans margins reflecting the value of contracts executed at peak pricing in the prior year complemented by favourable carrying values on inventories assumed with the St. Hilaire Seed acquisition. Adjusted gross profit for the second quarter of 2013 was $5.3 million, compared with $6.3 million for the second quarter of 2012, and was impacted by an increase of $1.6 million in plant processing costs related to the acquisitions of Keystone Grain Limited in October, 2012. EBITDA for the second quarter of 2013 was $2.6 million compared with $4.0 million in 2012. The decrease was attributable to a $1 million reduction in adjusted gross profit and a $494,000 increase in S&A costs adjusted for non-recurring items. Normalized S&A costs for the second quarter of 2013 were $2.8 million, compared with $2.3 million for the second quarter of 2012 adjusted for non-recurring items. S&A costs for the second quarter of 2013 include $0.2 million in noncash, stock-based compensation expenses. Oilseed Processing Segment Commissioning of the PCC plant continued as planned in the second quarter. Following quarter-end, in late July, the PCC plant completed commissioning, entered commercial production and is currently operating one of two operating lines or about 50% capacity, with full production expected this year. Revenue for the Oilseed Processing segment for the second quarter of 2013 was $21.0 million, the result of the high quality of oil and meal produced during the commissioning phase of the PCC plant. Although the PCC Plant had not yet achieved commercial production levels during the quarter, the quality and proportion of oil and meal processed was generally consistent with expectations. Total canola seed crushed in the quarter was 31,500 tonnes, of which 29,900 tonnes was shipped. Adjusted gross profit for the second quarter of 2013 was a loss of $3.2 million, as the commissioning of the PCC plant incurred costs of $1.9 million that were not fully recouped from the limited production and sale of canola oil and meal during the commissioning phase. The PCC plant generated a commodity loss due to the high value of 2012 canola seed stocks relative to the underlying market value of oil and meal which arose due to a disconnect between canola seed prices and the soy oil and meal complex. Operating costs will continue to exceed revenues until the PCC plant is operating above breakeven production levels. The loss before interest, taxes depreciation and amortization for the second quarter of 2013 was $3.9 million compared with $0.4 million for the second quarter of 2012. S&A expenses for the second quarter of 2013 were $0.7 million, lower than those incurred in the first quarter of 2013 during the initial ramp up of operations for commissioning purposes. Results for the First Half Ended June 30, 2013 Consolidated revenue for the first half of 2013 increased by 48% to $199.4 million from $134.3 million in the first half of 2012. The increase is almost entirely attributable to the Special Crops segment. S&A expenses for the first half of 2013 were $10.8 million compared with $7.6 million for the first half of 2012 adjusted for non-recurring items. S&A expenses include non-cash stock-based compensation expenses for the first half of 2013 of $0.7 million, compared with $0.3 million for the first half of 2012. The loss before interest, taxes, depreciation and amortization for the first half of 2013 was $3.0 million compared with EBITDA of $4.5 million for the first half of 2012. The loss for the first half of 2013 includes a loss of $13.1 million for the Oilseed Processing segment during the commissioning phase of the PCC plant. Excluding cash flow used in operations by PCC during commissioning, cash flow provided by operations (net of corporate costs) of $3.6 million compared with $3.4 million; Special Crops Segment Revenue for the Special Crops segment for the first half of 2013 increased by 29% to $173.9 million from $134.3 million for the second quarter of 2012. Adjusted gross profit for the first half of 2013 increased by 21% to $14.5 million from $12.0 million for the second quarter of 2012. EBITDA for the first half of 2013 increased by 12% to $8.9 million from $8.0 million for the first half of 2012. The increase was attributable to a $2.5 million increase in adjusted gross profit offset by a $1.5 million increase in S&A expenses, adjusted for non-recurring items. Oilseed Processing Segment Revenue for the Oilseed Processing segment for the first half of 2013 was $25.5 million. The adjusted gross loss for the first half of 2013 was $6.8 million.