Welcome!

Microsoft Cloud Authors: Janakiram MSV, Yeshim Deniz, David H Deans, Andreas Grabner, Stackify Blog

News Feed Item

Ag Growth Announces Third Quarter Results; Declares Dividends

WINNIPEG, MANITOBA -- (Marketwire) -- 11/14/12 -- Ag Growth International Inc. (TSX:AFN) ("Ag Growth" or the "Company") today reported its financial results for the three and nine month periods ended September 30, 2012, and declared dividends for December 2012, January 2013 and February 2013.

Overview of Results


----------------------------------------------------------------------------
(thousands of dollars)                Three Months Ended   Nine Months Ended
                                            September 30        September 30
----------------------------------------------------------------------------
                                          2012      2011      2012      2011
----------------------------------------------------------------------------
Trade sales (1)                        $83,465   $81,845  $254,717  $233,975
----------------------------------------------------------------------------
Adjusted EBITDA (1)                    $12,531   $14,836   $44,757   $44,705
----------------------------------------------------------------------------
Net Profit                              $6,501    $4,570   $20,624   $21,270
----------------------------------------------------------------------------
Diluted profit per share                 $0.52     $0.36     $1.64     $1.69
----------------------------------------------------------------------------
(1) See "Non-IFRS Measures".                                                

Trade sales in the three and nine month periods ending September 30, 2012 increased $1.6 million (2%) and $20.7 million (9%) over the same periods in the prior year. The largest single driver of sales growth in the three and nine month periods was a substantial increase in international business, particularly in the countries of the former Soviet Union. Also contributing to growth in sales was robust demand in western Canada and the acquisition of Airlanco. The Company achieved sales growth despite a decline in U.S. sales that resulted from a severe drought that significantly impacted third quarter demand.

Adjusted EBITDA decreased in the third quarter of 2012 as the U.S. drought reduced demand for the Company's higher margin on-farm grain handling equipment. For the nine-month period ending September 30, 2012, adjusted EBITDA increased over the prior year as the Company significantly increased its sales in the Canadian and international markets and due to robust demand for on-farm equipment in the United States prior to the appearance of drought conditions.

Net profit and diluted profit per share increased in the third quarter of 2012 as lower adjusted EBITDA was more than offset by lower transaction costs, a higher gain on foreign exchange and a lower effective tax rate. For the nine month period ended September 30, 2012, diluted profit per share decreased $0.05 per share as a large gain on foreign exchange in 2011 was only partially offset by lower transaction expenses and a lower effective tax rate in the current year.

"After a strong first half in which the Company demonstrated significant operational improvements and a return to higher levels of profitability it is certainly disappointing that the historic drought that has gripped our key U.S. market will negatively impact our second half results", said Gary Anderson, President and Chief Executive Officer.

"Somewhat overshadowed by the impact of the drought has been a number of very positive developments on which I am pleased to report. Perhaps most significant is our success in international markets in 2012. The hard work of our international sales and support team has resulted in increased market awareness and substantial repeat business which we fully expect will support continued growth offshore. I was able to visit Russia and Ukraine in October 2012 and I came away very impressed by the increased presence of AGI in these markets and the breadth and depth of the relationships developed over the last several years. Our offshore sales are up 35% over the prior year and with quoting activity at record highs we remain very confident in our strategy of bundling commercial grain handling equipment with large diameter storage bins manufactured at our Twister facility."

"We have undertaken a number of new product development initiatives in 2012 which we feel will contribute greatly to our success in future years. In 2013 we will manufacture 90' and 105' storage bins and will introduce commercial capacity grain drying equipment. We believe the ability to bundle these products previously sourced from third parties with our market leading commercial handling equipment will further enhance our growth in offshore markets. Also in 2013 we will launch a newly designed high capacity Westfield grain auger which we expect will further enhance Westfield's position in the portable grain handling market."

"We expect to enter 2013 ready to capitalize on what we believe are long-term positive agricultural fundamentals. Although the fourth quarter of 2012 will be impacted by the historic drought in the United States and we expect some softness to persist into 2013, we look forward to the challenges and opportunities in the upcoming year and expect to deliver solid growth both domestically and overseas."

Outlook

The severe U.S. drought in 2012 significantly reduced crop production volumes and resulted in a very early and efficient harvest. As a result, the Company expects limited in-season sales in the fourth quarter of 2012. The poor harvest also resulted in limited inventory carryover which is likely to reduce participation in the Company's fourth quarter preseason booking programs and may temper demand for portable equipment in the first and second quarters of 2013. Management believes U.S. farmers are likely to plant a significant number of corn acres in 2013 to capitalize on high commodity prices and accordingly, based on current conditions, management is optimistic with respect to demand for portable grain handling equipment in the second half of 2013.

The widespread drought in the U.S. also impacted the Company's commercial businesses. Negative market sentiment and an outlook for lower commercial handling volumes in the short-term delayed the launch of certain domestic commercial business in 2012, particularly on smaller, regional projects. Although quoting activity for 2013 business has increased recently, due to lead times associated with commercial business domestic demand in the next several months is expected to be constrained. However, based on current conditions management expects a return to normalized conditions in the second half of 2013.

Crop production in Canada increased slightly compared to 2011 and dealer inventories post-harvest are consistent with historical levels. Although dry conditions later in the growing season resulted in an early harvest and tempered fourth quarter in-season sales, management expects participation in preseason programs to be consistent with previous years. Looking ahead to 2013, management expects the Company's commercial business will continue to grow and based on current conditions expects another strong year in portable grain handling, storage and conditioning.

Ag Growth enjoyed great success offshore in 2012 and expects growth in international business to continue in 2013. Quoting activity is at record highs and the Company's growing presence and distribution in many offshore markets, particularly in the former Soviet Union, positions the Company well for the upcoming year. In 2013 the Company will also introduce 105 foot diameter storage bins and commercial capacity grain drying equipment which will further complete Ag Growth's industry leading commercial product offering.

On balance, the short-term impact of the U.S. drought and the early U.S. harvest is expected to temper fourth quarter demand for both portable and commercial grain handling products in the United States. As a result, sales and adjusted EBITDA in the fourth quarter of 2012 are expected to be well below the fourth quarter of 2011. The Company's fiscal 2012 payout ratio will increase compared to 2011 however the Company's dividend policy will not be altered in response to this short-term weather event.

Management remains optimistic with respect to the Company's prospects in 2013. Although the 2012 drought resulted in higher than typical inventory carryover at our U.S. dealers, the impact is not expected to extend beyond the second quarter of 2013. In the upcoming year U.S. farmers may again plant significant corn acreage to capitalize on high commodity prices which would then be expected to result in robust demand for portable grain handling equipment in the second half of 2013. Demand in the Canadian market is expected to be strong in 2013 and Ag Growth remains very optimistic with respect to its international business and the potential of bundling commercial grain handling equipment with storage bins and other Ag Growth products. In summary, although management anticipates some softness in the United States in first half of 2013, based on current conditions the Company anticipates a return to favourable conditions with the new crop year and expects sales and adjusted EBITDA in 2013 to increase significantly compared to the drought impacted results of 2012.

Dividends

Ag Growth today announced the declaration of cash dividends of $0.20 per common share for the months of December 2012, January 2013 and February 2013. The dividends are eligible dividends for Canadian income tax purposes. Ag Growth's current annualized cash dividend rate is $2.40 per share.

The table below sets forth the scheduled payable and record dates:


---------------------------------------------------------------------------
         Monthly dividend             Payable date              Record date
---------------------------------------------------------------------------
            December 2012         January 30, 2013        December 31, 2012
---------------------------------------------------------------------------
             January 2013        February 28, 2013         January 31, 2013
---------------------------------------------------------------------------
            February 2013           March 29, 2012        February 28, 2013
---------------------------------------------------------------------------

MD&A and Financial Statements

Ag Growth's financial statements and management's discussion and analysis for the three and nine month periods ended September 30, 2012 can be obtained at http://media3.marketwire.com/docs/Q3aggrowth.pdf and will also be available electronically from SEDAR (www.sedar.com) or from Ag Growth's website (www.aggrowth.com).

Conference Call

Ag Growth will hold a conference call on Wednesday, November 14, 2012, at 1:30 P.M. EST to discuss its results for the three and nine month periods ended September 30, 2012.

To participate in the conference call, please dial 1-866-226-1792 or for local access dial 416-340-2216. An audio replay of the call will be available for seven days. To access the audio replay, please dial 1-800-408-3053 or for local access dial 905-694-9451. Please quote pass code 1516766.

Company Profile

Ag Growth International Inc. is a leading manufacturer of portable and stationary grain handling, storage and conditioning equipment, including augers, belt conveyors, grain storage bins, grain handling accessories, grain aeration equipment and grain drying systems. Ag Growth has eleven manufacturing facilities in Canada, the United States, the United Kingdom and Finland, and its sales, marketing, and distribution system distributes product in 48 states, nine provinces, and internationally.

Non-IFRS Measures

References to "EBITDA" are to profit before income taxes, finance costs, depreciation and amortization. References to "Adjusted EBITDA" are to EBITDA before the Company's gain or loss on foreign exchange, gains or losses on the sale of property, plant & equipment and expenses related to corporate acquisition activity.. References to "trade sales" are to sales excluding the gain or loss on foreign exchange. References to "funds from operations" are to cash flow from operating activities before the net change in non-cash working capital balances related to operations and stock-based compensation,, less maintenance capital expenditures and adjusted for the gain or loss on the sale of property, plant & equipment. Management believes that, in addition to cash provided by (used in) operating activities, funds from operations provide a useful supplemental measure in evaluating its performance. Management believes that, in addition to sales, profit or loss and cash flows from operating, investing, and financing activities, trade sales, EBITDA, Adjusted EBITDA and funds from operations are useful supplemental measures in evaluating the Company's performance. Trade sales, EBITDA, Adjusted EBITDA and funds from operations are not financial measures recognized by IFRS and do not have a standardized meaning prescribed by IFRS. Management cautions investors that trade sales, EBITDA, Adjusted EBITDA and funds from operations should not replace sales or profit or loss as indicators of performance, or cash flows from operating, investing, and financing activities as a measure of the Company's liquidity and cash flows. Ag Growth's method of calculating trade sales, EBITDA, Adjusted EBITDA and funds from operations may differ from the methods used by other issuers.

Forward-Looking Statements

This press release contains forward-looking statements that reflect our expectations regarding the future growth, results of operations, performance, business prospects, and opportunities of the Company. Forward-looking statements may contain such words as "anticipate", "believe", "continue", "could", "expects", "intend", "plans", "will" or similar expressions suggesting future conditions or events. In particular, the forward looking statements in this press release include statements relating to the benefits of acquisitions, our business and strategy, including our outlook for our financial and operating performance, growth in sales to developing markets, the impact of crop conditions in our market areas, the impact of current economic conditions on the demand for our products, future sales and adjusted EBITDA, and the payment of dividends. Such forward-looking statements reflect our current beliefs and are based on information currently available to us, including certain key expectations and assumptions concerning anticipated financial performance, business prospects, strategies, product pricing, regulatory developments, tax laws, the sufficiency of budgeted capital expenditures in carrying out planned activities, foreign exchange rates and the cost of materials, labour and services. Forward-looking statements involve significant risks and uncertainties. A number of factors could cause actual results to differ materially from results discussed in the forward-looking statements, including changes in international, national and local business conditions, crop yields, crop conditions, seasonality, industry cyclicality, volatility of production costs, commodity prices, foreign exchange rates, competition and the cost and availability of capital for our customers. These risks and uncertainties are described under "Risks and Uncertainties" in our MD&A and in our most recently filed Annual Information Form. We cannot assure readers that actual results will be consistent with these forward-looking statements and we undertake no obligation to update such statements except as expressly required by law.

Contacts:
Ag Growth International Inc.
Investor Relations
Steve Sommerfeld
204-489-1855
steve@aggrowth.com

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

@ThingsExpo Stories
In his Opening Keynote at 21st Cloud Expo, John Considine, General Manager of IBM Cloud Infrastructure, led attendees through the exciting evolution of the cloud. He looked at this major disruption from the perspective of technology, business models, and what this means for enterprises of all sizes. John Considine is General Manager of Cloud Infrastructure Services at IBM. In that role he is responsible for leading IBM’s public cloud infrastructure including strategy, development, and offering m...
With tough new regulations coming to Europe on data privacy in May 2018, Calligo will explain why in reality the effect is global and transforms how you consider critical data. EU GDPR fundamentally rewrites the rules for cloud, Big Data and IoT. In his session at 21st Cloud Expo, Adam Ryan, Vice President and General Manager EMEA at Calligo, examined the regulations and provided insight on how it affects technology, challenges the established rules and will usher in new levels of diligence arou...
The 22nd International Cloud Expo | 1st DXWorld Expo has announced that its Call for Papers is open. Cloud Expo | DXWorld Expo, to be held June 5-7, 2018, at the Javits Center in New York, NY, brings together Cloud Computing, Digital Transformation, Big Data, Internet of Things, DevOps, Machine Learning and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding busin...
Smart cities have the potential to change our lives at so many levels for citizens: less pollution, reduced parking obstacles, better health, education and more energy savings. Real-time data streaming and the Internet of Things (IoT) possess the power to turn this vision into a reality. However, most organizations today are building their data infrastructure to focus solely on addressing immediate business needs vs. a platform capable of quickly adapting emerging technologies to address future ...
No hype cycles or predictions of a gazillion things here. IoT is here. You get it. You know your business and have great ideas for a business transformation strategy. What comes next? Time to make it happen. In his session at @ThingsExpo, Jay Mason, an Associate Partner of Analytics, IoT & Cybersecurity at M&S Consulting, presented a step-by-step plan to develop your technology implementation strategy. He also discussed the evaluation of communication standards and IoT messaging protocols, data...
Nordstrom is transforming the way that they do business and the cloud is the key to enabling speed and hyper personalized customer experiences. In his session at 21st Cloud Expo, Ken Schow, VP of Engineering at Nordstrom, discussed some of the key learnings and common pitfalls of large enterprises moving to the cloud. This includes strategies around choosing a cloud provider(s), architecture, and lessons learned. In addition, he covered some of the best practices for structured team migration an...
In his session at 21st Cloud Expo, Raju Shreewastava, founder of Big Data Trunk, provided a fun and simple way to introduce Machine Leaning to anyone and everyone. He solved a machine learning problem and demonstrated an easy way to be able to do machine learning without even coding. Raju Shreewastava is the founder of Big Data Trunk (www.BigDataTrunk.com), a Big Data Training and consulting firm with offices in the United States. He previously led the data warehouse/business intelligence and B...
Recently, REAN Cloud built a digital concierge for a North Carolina hospital that had observed that most patient call button questions were repetitive. In addition, the paper-based process used to measure patient health metrics was laborious, not in real-time and sometimes error-prone. In their session at 21st Cloud Expo, Sean Finnerty, Executive Director, Practice Lead, Health Care & Life Science at REAN Cloud, and Dr. S.P.T. Krishnan, Principal Architect at REAN Cloud, discussed how they built...
22nd International Cloud Expo, taking place June 5-7, 2018, at the Javits Center in New York City, NY, and co-located with the 1st DXWorld Expo will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud ...
22nd International Cloud Expo, taking place June 5-7, 2018, at the Javits Center in New York City, NY, and co-located with the 1st DXWorld Expo will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud ...
DevOps at Cloud Expo – being held June 5-7, 2018, at the Javits Center in New York, NY – announces that its Call for Papers is open. Born out of proven success in agile development, cloud computing, and process automation, DevOps is a macro trend you cannot afford to miss. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the world's largest enterprises – and delivering real results. Among the proven benefits,...
@DevOpsSummit at Cloud Expo, taking place June 5-7, 2018, at the Javits Center in New York City, NY, is co-located with 22nd Cloud Expo | 1st DXWorld Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait...
Cloud Expo | DXWorld Expo have announced the conference tracks for Cloud Expo 2018. Cloud Expo will be held June 5-7, 2018, at the Javits Center in New York City, and November 6-8, 2018, at the Santa Clara Convention Center, Santa Clara, CA. Digital Transformation (DX) is a major focus with the introduction of DX Expo within the program. Successful transformation requires a laser focus on being data-driven and on using all the tools available that enable transformation if they plan to survive ov...
SYS-CON Events announced today that T-Mobile exhibited at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. As America's Un-carrier, T-Mobile US, Inc., is redefining the way consumers and businesses buy wireless services through leading product and service innovation. The Company's advanced nationwide 4G LTE network delivers outstanding wireless experiences to 67.4 million customers who are unwilling to compromise on qua...
SYS-CON Events announced today that Cedexis will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Cedexis is the leader in data-driven enterprise global traffic management. Whether optimizing traffic through datacenters, clouds, CDNs, or any combination, Cedexis solutions drive quality and cost-effectiveness. For more information, please visit https://www.cedexis.com.
SYS-CON Events announced today that Google Cloud has been named “Keynote Sponsor” of SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Companies come to Google Cloud to transform their businesses. Google Cloud’s comprehensive portfolio – from infrastructure to apps to devices – helps enterprises innovate faster, scale smarter, stay secure, and do more with data than ever before.
SYS-CON Events announced today that Vivint to exhibit at SYS-CON's 21st Cloud Expo, which will take place on October 31 through November 2nd 2017 at the Santa Clara Convention Center in Santa Clara, California. As a leading smart home technology provider, Vivint offers home security, energy management, home automation, local cloud storage, and high-speed Internet solutions to more than one million customers throughout the United States and Canada. The end result is a smart home solution that sav...
SYS-CON Events announced today that Opsani will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Opsani is the leading provider of deployment automation systems for running and scaling traditional enterprise applications on container infrastructure.
SYS-CON Events announced today that Nirmata will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Nirmata provides a comprehensive platform, for deploying, operating, and optimizing containerized applications across clouds, powered by Kubernetes. Nirmata empowers enterprise DevOps teams by fully automating the complex operations and management of application containers and its underlying ...
SYS-CON Events announced today that Opsani to exhibit at SYS-CON's 21st Cloud Expo, which will take place on October 31 through November 2nd 2017 at the Santa Clara Convention Center in Santa Clara, California. Opsani is creating the next generation of automated continuous deployment tools designed specifically for containers. How is continuous deployment different from continuous integration and continuous delivery? CI/CD tools provide build and test. Continuous Deployment is the means by which...