SYMBOL: TSX: AGT
REGINA, Aug. 10, 2016 /CNW/ - AGT Food and Ingredients Inc. (TSX:AGT) ("AGT" or the
"Company") has announced its financial results for the three and six months ended June 30,
2016.
Results include:
- Adjusted EBITDA* was $25.3 million for the three months ended June 30, 2016, an increase of 14.0% over $22.2 million for the three months ended
June 30, 2015.
- Adjusted EBITDA* was $112.9 million for the trailing twelve months ended June 30, 2016, an increase of 25.0% over $90.3 million from the trailing twelve
months ended June 30, 2015.
- Cash flow from operating activities was $56.2 million for the three months ended
June 30, 2016 compared to $44.2 million for the three months ended
June 30, 2015 and compared to cash used in operating activities of $11.6
million for the three months ended March 31, 2016.
- Food ingredients and packaged foods Adjusted Gross Profit* was $197.38 per metric tonne
("mt") for the six months ended June 30, 2016, compared to $189.27
per mt for the six months ended June 30, 2015.
- Food ingredients and packaged foods segment represented 13.8% of total tonnes invoiced and 30.9% of Adjusted EBITDA*
for the six months ended June 30, 2016, compared to 17.3% of total tonnes invoiced and 34.6% of
Adjusted EBITDA* for the six months ended June 30, 2015.
- Dividend of $0.15 per share for the quarter ($0.60 per
share on an annualized basis)
"We are pleased with these results, especially given the supply constraints that the Canadian pulse sector has faced due to
shortages of product from last year's harvest. We expect good quantities of pulses from harvest this year, and we already see
farmers getting ready to get out into the field and get their pulses and durum wheat into the bins. We expect new crop deliveries
to start in a few weeks, and this is a positive for our plant operations and sales programs for the balance of 2016 and into 2017.
Production at these volumes will really show the earnings strength of our processing and handling system and the asset base we have
built. The record acreage of pulses in North America should translate to a significant quantity of
good quality pulses and durum production," said Mr. Murad Al-Katib, President and CEO of
AGT.
"Our business units, particularly our food ingredient business unit, are continuing to advance and mature. We are seeing volume
gains and customers are looking positively to our new products from our enhancement production lines, such as deflavouring and our
additional milling capabilities. Our expansions in Minot are proceeding well and on-time. These positives are further strengthened
by growth in our packaged foods business unit and strong performance for our trading and distribution segment, which demonstrates
the benefit that the seasonal diversification we have been working towards has for our business," added Mr. Huseyin Arslan, Chairman of the Board of Directors of AGT.
The financial statements and notes thereto for the three and six months ended June 30, 2016, as
well as the related management's discussion and analysis, have been filed under AGT's profile on www.sedar.com and have been posted on AGT's website at www.agtfoods.com. All amounts are reported in Canadian dollars.
AGT is also pleased to announce a cash dividend for the quarter ending September 30, 2016 of
$0.15 per common share. The dividend will be payable on October 11,
2016 to shareholders of record on September 30, 2016. This dividend is an eligible dividend
for Canadian income tax purposes. AGT's current annualized cash dividend rate is approximately $0.60
per share.
AGT invites you to join our Second Quarter 2016 conference call on Thursday, August 11, 2016 at
11:00 a.m. Eastern time. To join the conference, please dial 1-800-319-4610 (toll free from
Canada & the U.S.) or +1-604-638-5340 (from outside Canada
& the U.S.).
A recording of the call will be available at www.agtfoods.com on
Thursday, August 11, 2016. A telephone replay will also be available until midnight Eastern time, Thursday, September 8, 2016. To access the replay,
please call 1-800-319-6413 (toll free from Canada & the U.S.) or +1-604-638-9010 (from outside
Canada & the U.S.). When prompted, enter the code 00713, followed by the number sign
(#).
AGT Food and Ingredients Inc.
Profile
AGT Food and Ingredients Inc. (AGT) is a processor of value-added pulses, staple foods and ingredients for export and
domestic markets as well as a supplier of retail packaged and canned foods to retail and food service sectors. Through its offices
and processing facilities located in some of the best agricultural growing regions in Canada, the
U.S., Turkey, China, Australia
and South Africa, merchandising and sales offices in the U.K., the
Netherlands, Spain, Switzerland and India and origination offices in Russia, AGT produces a full range of pulses
and specialty crops including lentils, peas, chickpeas, beans and canary seed as well as food ingredients such as pulse flours,
proteins, starches and fibres. Through its subsidiaries in Turkey, the Arbel Group, AGT also
produces staple foods such as Arbella Pasta, rice, and milled wheat products, including bulgur and semolina.
Cautionary Statements
Certain statements in this press release are forward-looking statements. In particular, this press release contains
forward looking statements with respect to, among other things, crop expectations, crop deliveries and the expected benefits of
AGT's production facilities in response to crop expectations. The reader is cautioned that assumptions used in the preparation
of such information, although considered reasonable by AGT at the time of preparation, may prove to be incorrect. Forward-looking
statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or
achievements of AGT (including its operating subsidiaries) to be materially different from any future results, performance or
achievements expressed or implied by the forward-looking statements. Such risks and uncertainties include, among others, the actual
results of harvests, fluctuations in the price of lentils and other crops, failure of plant, equipment or processes to operate as
anticipated, accidents or labour disputes, risks relating to the integration of acquisitions or to international operations, as
well as those factors referred to in the section entitled "Risk Factors" in the Annual Information Form of AGT dated March 24, 2016 which is available on SEDAR at www.sedar.com, and which should be reviewed in conjunction with this document. Although AGT has attempted to
identify important factors that could cause actual actions, events or results to differ materially from those described in
forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or
intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events
could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on
forward-looking statements. AGT expressly disclaims any intention or obligation to update or revise any forward-looking
statements, whether as a result of new information, future events or otherwise, except in accordance with applicable securities
laws.
Non-IFRS Financial Measures
*AGT provides some non-IFRS measures as supplementary information that management believes may be useful to investors to
explain AGT's financial results. These non-IFRS measures include Adjusted Gross Profit* (gross profit plus depreciation in cost of
sales), Adjusted EBITDA* (earnings before finance expense, income taxes, depreciation and amortization, restructuring costs and any
effects of non-cash, non-recurring and other costs and foreign exchange adjustment), Adjusted Net Earnings*, Adjusted Basic Net
Earnings Per Share* and Adjusted Diluted Net Earnings Per Share *(earnings before any effects of non-cash, non-recurring and other
costs, restructuring costs and foreign exchange adjustments), Net Debt* (bank indebtedness, short term financing and long term debt
less cash) and Net Working Capital* (current assets less current liabilities). Adjusted Net Earnings*, Adjusted Basic Net Earnings
Per Share* and Adjusted Diluted Net Earnings Per Share* do not include the tax effect of non-cash, non-recurring and other costs
and foreign exchange. Management believes that Adjusted EBITDA*, Adjusted Net Earnings*, Adjusted Basic Net Earnings Per Share* and
Adjusted Diluted Earnings Per Share, Net Debt* and Net Working Capital* are important indicators of AGT's ability to generate
liquidity through operating cash flow to fund future working capital needs, service outstanding debt and fund future capital
expenditures and uses the metric for this purpose. The exclusion of non-cash and foreign exchange adjustments eliminates the
non-cash impact on Adjusted EBITDA*, Adjusted Net Earnings*, Adjusted Basic Net Earnings Per Share* and Adjusted Diluted Earnings
Per Share*. Adjusted EBITDA* and Adjusted Net Earnings*, Adjusted Basic Net Earnings Per Share*, Adjusted Diluted Net Earnings Per
Share*, Net Debt* and Net Working Capital* are also used by investors and analysts for the purpose of valuing AGT. The intent of
these measures is to provide additional useful information to investors and analysts and the measure does not have any standardized
meaning under IFRS. Adjusted Gross Profit*, Adjusted EBITDA* and Adjusted Net Earnings*, Adjusted Basic Net Earnings Per Share*,
Adjusted Diluted Net Earnings Per Share*, Net Debt* and Net Working Capital* should therefore not be considered in isolation or
used as a substitute for measures of performance prepared in accordance with IFRS. For a reconciliation of net earnings (loss)
determined in accordance with IFRS to Adjusted EBITDA*, Adjusted Net Earnings* and Adjusted Basic Net Earnings Per Share* and
Adjusted Diluted Earnings Per Share*, see the table on page 36 in the related management's discussion and analysis for the three
and six months ended June 30, 2016.
SOURCE AGT Food and Ingredients Inc.
