Bevo Agro loses $110,474 in fiscal Q1 2017
2016-11-22 16:40 ET - News Release Shares issued 25,559,433 BVO Close 2016-11-22 C$ 1.11 Mr. Jack Benne reports BEVO AGRO INC. ANNOUNCES FIRST QUARTER RESULTS Bevo Agro Inc. has released its operating and financial results for the first quarter ending Sept. 30, 2016. First quarter highlights (versus the first quarter of last year): The first quarter net loss was reduced to $110,474 from the $123,469 loss in the first quarter of 2015; Improved EBITDA (earnings before interest, taxes, depreciation and amortization) for the first quarter compared with the same quarter the previous year. Rolling year-over-year highlights (Sept. 30, 2016, versus Sept. 30, 2015): Trailing 12-month sales increased to $31,155,736 compared with $26,784,939 for the same period last year. Net earnings total $2,838,598 for the 12 months compared with $1,275,408 the same period at Sept. 30, 2015. EBITDA totals $5,817,148 compared with $4,226,249 for the 12 months ended Sept. 30, 2015. The first quarter of the company's fiscal year involves thorough cleaning and transitioning the greenhouses from fourth quarter flowers shipments to vegetable seedling propagation. Sales for the first quarter totalled $4,500,153, which was in line with expectations and comparable with the same quarter last year. The majority of Bevo's sales result from repeat orders with specific delivery dates through recurring multiyear contracts. The gross profit was $1,049,112 for the three-month period ending Sept. 30, 2016, compared with the gross profit of $1,110,570 for the same quarter last year. Earnings before interest, taxes, depreciation and amortization was $478,781 for the quarter ended Sept. 30, 2016, compared with $468,523 for the same period last year and EBITDA of $320,853 for the first quarter in fiscal 2015. General operating expenses for the first quarter ending Sept. 30, 2016, totalled $1,198,401, which is lower than the $1,277,419 reported for the same three months last year. The net loss for the three months was $110,474, compared with a loss of $123,469 in the first quarter of fiscal 2016 and a $201,321 loss in the first quarter of fiscal 2015. The eight-acre expansion has been completed and is now in production to meet increased orders from the company's clients. Activities to achieve the objectives of CubicFarm Systems are progressing favourably. Further news will be announced as these objectives materialize. Bevo Agro maintains a balance of fixed and floating rates on borrowings as a hedge against interest rate fluctuations. From a balance sheet perspective, the company maintains sufficient working capital to manage its business and maintain conservative financial ratios. Readers are encouraged to view the company's financial statements for the first quarter ending Sept. 30, 2016, and accompanying management's discussion and analysis on SEDAR. SUMMARY -- CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME Three months ended Sept. 30, 2016 Sept. 30, 2015 Sept. 30, 2014 Sales $4,500,153 $4,511,667 $3,948,405 Cost of sales $3,451,041 $3,401,097 $3,092,642 --------- --------- --------- Gross margin $1,049,112 $1,110,570 $855,763 --------- --------- --------- Expenses Operating and administrative $288,035 $332,837 $298,338 Admin fees, wages and benefits $282,296 $309,210 $304,523 Amortization $430,074 $438,971 $389,883 Interest expenses $197,996 $196,401 $203,031 --------- --------- --------- Total expenses $1,198,401 $1,277,419 $1,195,775 --------- --------- --------- Earnings (loss) from operations ($149,289) ($166,849) ($340,012) --------- --------- --------- Other $67,951 --------- --------- --------- Earnings before taxes ($149,289) ($166,849) ($272,061) --------- --------- --------- Income taxes -- future ($38,815) ($43,380) ($70,740) --------- --------- --------- Net earnings (loss) for period ($110,474) ($123,469) ($201,321) --------- --------- --------- EBITDA $478,781 $468,523 $320,853 Bevo Agro accounts for revenue on a when-goods-are-shipped basis. The first quarter shipments are typically smaller volumes. The attached table is a 12-month trailing summary of financial performance. 12 months ended Sept. 30, 2014 2015 2016 Sales $25,107,314 $26,784,939 $31,155,736 Gross margin $6,433,695 $7,056,161 $8,548,836 Earnings from operations $1,313,661 $1,614,968 $3,236,918 Net after tax earnings $1,051,085 $1,275,408 $2,838,598 EBITDA $3,832,196 $4,226,249 $5,817,148 Cash flow $2,975,198 $3,377,065 $5,039,241 Bevo Agro is North America's leading supplier of propagated agricultural plants, operating approximately 53 acres of greenhouse facilities on 98 acres of land in Langley, B.C., and 20 acres of land in Pitt Meadows, B.C. The company's main products are the propagation of vegetable plants, such as tomatoes, peppers and cucumbers, and other plants, such as bedding plants, flowers and grasses.