Click here to close now.




















Welcome!

Microsoft Cloud Authors: Adine Deford, Elizabeth White, the Editor, Michael Krems, Xenia von Wedel

News Feed Item

Green Star Reports Third Quarter 2012 Financial Results, Appoints New Directors, Manager of Business Development and Announces Dividend Policy

TORONTO, ONTARIO -- (Marketwire) -- 11/29/12 -- China Green Star Agricultural Corporation (TSX VENTURE:GRE) ("Green Star" or the "Company"), a processer of agricultural products such as canned fruits and vegetables for distribution to international and domestic markets, today announced financial results for the three and nine months period ended September 30, 2012.


                                                                            
Q3 2012 Key Financial Metrics                                               
----------------------------------------------------------------------------
In thousands                                                                
 of Cdn$                                                                    
 except share                                                               
 data and EPS    Q3 2012   Q3 2011    Change   YTD 2012  YTD 2011    Change 
----------------------------------------------------------------------------
Key Operating                                                               
 Results       Unaudited Unaudited Unaudited  Unaudited Unaudited Unaudited 
----------------------------------------------------------------------------
 Total revenue $   8,474 $   9,559       -11% $  24,477 $  24,387         - 
----------------------------------------------------------------------------
 Gross profit  $   3,123 $   3,821       -18% $  10,169 $   9,510         7%
----------------------------------------------------------------------------
 EBITDA(1)     $   2,845 $   3,221       -12% $   9,432 $   7,207        31%
----------------------------------------------------------------------------
 Net profit                                                                 
  before                                                                    
  income tax   $   2,649 $   3,055       -13% $   8,848 $   6,714        32%
----------------------------------------------------------------------------
 Profit for                                                                 
  the period   $   1,947 $   2,229       -12% $   6,526 $   4,654        40%
----------------------------------------------------------------------------
 EPS - basic   $    0.13 $    0.15       -13% $    0.43 $    0.34        27%
----------------------------------------------------------------------------
 EPS -                                                                      
  diluted(2)   $    0.06 $    0.07       -14% $    0.21 $    0.16        31%
----------------------------------------------------------------------------
                                                                            
---------------------------------------------                               
                Sep. 30,  Dec. 31,                                          
                    2012      2011    Change                                
---------------------------------------------                               
Key Balance                                                                 
 Sheet                                                                      
 Highlights    Unaudited   Audited Unaudited                                
---------------------------------------------                               
 Cash and cash                                                              
  equivalents  $   9,382 $   7,602        23%                               
---------------------------------------------                               
 Total assets  $  41,021 $  36,761        12%                               
---------------------------------------------                               
 Total                                                                      
  Liabilities  $   5,042 $   6,491       -22%                               
---------------------------------------------                               
 Shareholders'                                                              
  Equity       $  35,979 $  30,270        19%                               
---------------------------------------------                               
 Working                                                                    
  capital per                                                               
  share,                                                                    
  diluted      $    0.70 $    0.65       7.7%                               
---------------------------------------------                               
 Net assets                                                                 
  per share,                                                                
  diluted      $    1.16 $    0.97      19.6%                               
---------------------------------------------                               
1 Earnings before interest, taxes, depreciation and amortization (EBITDA) is
  often used as a measure of financial performance. However, EBITDA is a not
  a term that has specific meaning in accordance with IFRS, and may be      
  calculated differently by other companies. EBITDA excludes cost associated
  with the reverse taken over transaction completed on May 31, 2011 (the    
  "RTO").                                                                   
                                                                            
2 Includes the effect of the 16,069,892 special warrants granted on         
  completion of the RTO. Each special warrant is convertible into one common
  share for no additional consideration.                                    

"Our third quarter 2012 results demonstrate the successful execution of our business strategy to increase our fresh and canned food sales to local Chinese markets," said Guan Lianyun, Chairman and CEO of Green Star. "We are also making progress towards developing and marketing our own brand of canned products for local and export consumers. With our significant cash balance of $9.4 Million, and our average quarterly net income of approximately $2.0 Million, we are introducing a dividend policy starting in 2013 of distributing $0.01 per share, per quarter ($0.04 per share annually) to our common shareholders. We also remain on track and committed to investing in future expansion plans which include the long term leasing of additional agricultural lands as demonstrated by the 30 year lease of mandarin orange orchards and bamboo plantations in Q3, that expanded our land lease holdings by 63.6%, and the planned acquisition of a raw tomato pulp producer to secure our own raw tomato pulp supply."

Q3 2012 Operational and Financial Highlights


--  Revenue of $8.5 million, a decline of 11.4% over $9.6 million in Q3 2011
--  EBITDA of $2.8 million, down 11.5% from $3.2 million in Q3 2011 
--  Net profit of $2.0 million, a decline of 12.5% from $2.2 million in Q3
    2011 
--  Signed additional farming land lease agreements to increase farming land
    base by 63.6% to approximately 1,483 acres 
--  Granted 300,000 stock options to directors and management during the
    quarter 
--  Introduced a dividend policy of distributing $0.01 ($0.04 annually) per
    share, per quarter to holders of the Company's common shares,
    representing an estimated annualized yield of 8.5% based on the closing
    price of GRE shares on the TSX.V on November 28, 2012 
--  Had two Canadian food industry veterans join the Board of Directors 
--  Appointed a Canada based, food industry executive as manager of Business
    Development 

Review of Financial Results

Green Star reported its consolidated revenue of approximately $8.5 million for Q3 2012, down approximately 11.4% from $9.6 million for Q3 2011. The revenue decline is the combined effect of the overall decrease in selling prices and sales quantity for canned products caused by market demand fluctuation and a slight decrease of sales quantity in agricultural produce.

On a nine month basis, the Company generated consolidated revenue of approximately $24.5 million to September 30, 2012, up 0.4% from approximately $24.4 million to September 30, 2011. The revenue growth on a nine-month basis was a combined result of increased sales of canned bamboo shoots and lower sales of other canned products within the canned food division in 2012, as well as slightly higher average selling prices.

Gross profit declined to $3.1 million in Q3 2012 from $3.8 million in Q3 2011, a decline of 18.3%. Gross profit as a percentage of sales declined to 36.8% in Q3 2012, compared to 40% for Q3 2011, with improvements for the agricultural produce division and a decline for the canned foods division. The agricultural produce division's gross profit improved to 69% in Q3 2012 compared to 65% in Q3 2011 and was the result of a fluctuation of labor and land maintenance costs. The canned food division's gross profit margin declined to 31.9% in Q3 2012 compared to 36.3% in Q3 2011, a reflection of the combined effects of lower selling prices and the lowering of economies of scale due to reduced production quantities.

For the nine-month period ended September 30, 2012, gross profit increased to approximately $10.2 million from $9.5 million for the comparative period in 2011, an increase of 6.9%.

Green Star generated net profits of approximately $2.0 million in Q3 2012, down 12.5% from $2.2 million in Q3 2011. The Company's basic and diluted earnings per share were $0.13 and $0.06 respectively in Q3 2012, compared to $0.15 and 0.07 respectively in Q3 2011. On a year-to-date basis, Green Star generated net profits of approximately $6.5 million for the nine months ended September 30, 2012 compared to net profits of $4.7 million for the nine months ended September 30, 2011, which included approximately $1.2 million of IPO costs.

At September 30, 2012, Green Star held cash of approximately $9.4 million and working capital of $21.8 million compared to $7.6 million and $20.4 million, respectively, as at December 31, 2011. The increase in both cash and working capital was a result of improved operating results.

Appointment of Directors, Audit Committee Chair, and Manager of Business Development

On November 27, 2012, Green Star's board of directors made the following appointments (subject to TSXV approval): 1) to appoint Mr. Bryan Knebel and Mr. Frank Galati as two new independent directors of the Corporation; 2) to appoint Mr. Robert G. Macdonald as the Business Development Manager of Green Star on a part-time basis. Mr. Robert G. Macdonald has joined Green Star to guide its Canadian business development strategy in Canada and communicate same to Canadian investors and the public markets; 3) to replace Mr. Ye HuoYun on the Company's audit committee and appoint Mr. Bryan Knebel as Chairman of the Audit Committee. Mr. Michael Newman has stepped down as the Chairman of Green Star's audit committee but remains as one of its four independent directors.

Mr. Bryan Knebel was for the past 8 years the Chief Financial Officer of The Skor Food Group Inc. (acquired in 2011 by Group Colabor) and prior to that Chief Financial Officer of Lombardi Media Corporation and several other TSX-Venture listed public companies over a span of 15 years. Mr. Knebel started his financial career with the Toronto-Dominion Bank in commercial banking. He has extensive knowledge and experience in developing internal and external growth strategies together with arranging debt and equity financing of growth oriented TSX-Venture listed public companies.

Mr. Frank Galati was President and Chief Executive Officer of Destination Products International Ltd., a spin-off of Cott Corporation and a company focused on the marketing and distribution of frozen and fresh meal solutions to the North American Grocery and Mass Merchandising channels. The company increased revenues from $12 million to over $100 million and was named one of Canada's Fifty Best Managed Companies by The Financial Post. Prior to that, Frank held several senior financial roles with Cott Corporation and Maple Leaf Foods, including CFO of Cott's US business, a subsidiary with revenue in excess of $1 billion and CFO for Maple Leaf Foods Grocery Division, a company with over $300 million in revenue in canned and frozen food products. Today, Mr. Galati is Managing Partner of Bedford Group's resource practice, advising resource companies on talent and leadership issues; and has sat on various advisory boards to food and health supplement companies focused on growth in US and Canadian markets.

Mr. Robert G. Macdonald was the Founder, President and CEO of TSX listed Afton Food Group Ltd. ("Afton") for sixteen years, a company established as a franchising consolidator in the Quick Service Restaurant industry with such brands as 241 Pizza and Robin`s Donuts. Afton grew from a standing start to more than $150 million in system sales and $25 million in annual revenues and was listed on the TSX. At the present time, Mr. Macdonald is the Chairman and Managing Director of AgriFood Capital Corporation, an emerging private company that is involved in investment banking in the food and agricultural industries in Canada. Mr. Macdonald has also served on the board of directors and audit committees of several other TSX.V listed companies.

Outlook

"In spite of softening demand in China, we continue to achieve strong financial results and look forward to buildings on that success in the next term," said Mr. Guan, CEO. "Also, with the additional farming land lease agreements signed in the third quarter of 2012, we are increasing our land base by 63.6% effective January 1, 2013 which will immediately positively impact our agricultural produce revenues commencing fiscal 2013."

About Green Star

Green Star operates two main divisions, agricultural and food processing. The agricultural division is involved in the cultivation and harvesting of agricultural products such as fresh fruit and vegetables, for sale either directly as fresh fruit and vegetables or canned, and sold overseas and domestically. The food processing division is primarily involved in the manufacturing of canned food which includes canned tomato paste, canned boiled bamboo shoots, canned oranges, canned peaches and various other types of fruits and vegetables. Currently, all of the Corporation's canned tomato paste is exported to countries such as Russia, Lebanon, Dubai, Philippines, Germany, Romania and several African countries. 30% of the canned tomato paste is exported directly to end customers, while the balance of 70% is exported to ultimate customers through exporting agents.

The Company has been operating for over 18 years, and has focused on maintaining product and reputational excellence and a high standard of food quality, through the application of science and technology in production, quality control and assurance, business operations and management. Key assets include a well established management team, modern production facilities, and a close partnership with local farmers.

Green Star is listed on the TSX Venture Exchange under the symbol "GRE". For more information on the Company, please visit our web site at www.cgsac.com.

Caution Regarding Forward-Looking Information:

Certain statements in this press release may constitute "forward looking" statements which involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward looking statements. When used in this press release, such statements may use such words as "may", "will", "expect", "believe", "plan" and other similar terminology. These statements reflect management's current expectations regarding future events and operating performance and speak only as of the date of this press release. Forward looking information in this press release includes managements plan to develop and market the Company's own brand, implementing its new dividend policy, future expansion plan including acquisition of additional agricultural land and acquisition of tomato pulp producer, management outlook on continued success in 2012 and anticipated increase in production capacity in future years. These forward looking statements involve a number of risks and uncertainties. Some of the factors that could cause actual results to differ materially from those expressed in or underlying such forward looking statements are the effects of, as well as changes in: international, national and local business and economic conditions; political or economic instability in the Company's markets; competition; legislation and governmental regulation; and accounting policies and practices. The foregoing list of factors is not exhaustive. Please see the Company's annual MD&A dated April 30, 2012, available on www.sedar.com, for a more detailed description of the risk factors. The Company undertakes no obligation to update publicly or revise any forward looking information, whether a result of new information, future results or otherwise, except as required by law.

Neither the TSX Venture Exchange nor its Regulation services provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contacts:
China Green Star Agricultural Corporation
Michael Lam
Chief Financial Officer
(416) 849-3858

China Green Star Agricultural Corporation
Robert G. Macdonald
Manager of Business Development
(416) 849-3858
www.cgsac.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
WebRTC has had a real tough three or four years, and so have those working with it. Only a few short years ago, the development world were excited about WebRTC and proclaiming how awesome it was. You might have played with the technology a couple of years ago, only to find the extra infrastructure requirements were painful to implement and poorly documented. This probably left a bitter taste in your mouth, especially when things went wrong.
Too often with compelling new technologies market participants become overly enamored with that attractiveness of the technology and neglect underlying business drivers. This tendency, what some call the “newest shiny object syndrome,” is understandable given that virtually all of us are heavily engaged in technology. But it is also mistaken. Without concrete business cases driving its deployment, IoT, like many other technologies before it, will fade into obscurity.
The Internet of Things is in the early stages of mainstream deployment but it promises to unlock value and rapidly transform how organizations manage, operationalize, and monetize their assets. IoT is a complex structure of hardware, sensors, applications, analytics and devices that need to be able to communicate geographically and across all functions. Once the data is collected from numerous endpoints, the challenge then becomes converting it into actionable insight.
Consumer IoT applications provide data about the user that just doesn’t exist in traditional PC or mobile web applications. This rich data, or “context,” enables the highly personalized consumer experiences that characterize many consumer IoT apps. This same data is also providing brands with unprecedented insight into how their connected products are being used, while, at the same time, powering highly targeted engagement and marketing opportunities. In his session at @ThingsExpo, Nathan Treloar, President and COO of Bebaio, will explore examples of brands transforming their businesses by t...
With the Apple Watch making its way onto wrists all over the world, it’s only a matter of time before it becomes a staple in the workplace. In fact, Forrester reported that 68 percent of technology and business decision-makers characterize wearables as a top priority for 2015. Recognizing their business value early on, FinancialForce.com was the first to bring ERP to wearables, helping streamline communication across front and back office functions. In his session at @ThingsExpo, Kevin Roberts, GM of Platform at FinancialForce.com, will discuss the value of business applications on wearable ...
While many app developers are comfortable building apps for the smartphone, there is a whole new world out there. In his session at @ThingsExpo, Narayan Sainaney, Co-founder and CTO of Mojio, will discuss how the business case for connected car apps is growing and, with open platform companies having already done the heavy lifting, there really is no barrier to entry.
With the proliferation of connected devices underpinning new Internet of Things systems, Brandon Schulz, Director of Luxoft IoT – Retail, will be looking at the transformation of the retail customer experience in brick and mortar stores in his session at @ThingsExpo. Questions he will address include: Will beacons drop to the wayside like QR codes, or be a proximity-based profit driver? How will the customer experience change in stores of all types when everything can be instrumented and analyzed? As an area of investment, how might a retail company move towards an innovation methodolo...
The Internet of Things (IoT) is about the digitization of physical assets including sensors, devices, machines, gateways, and the network. It creates possibilities for significant value creation and new revenue generating business models via data democratization and ubiquitous analytics across IoT networks. The explosion of data in all forms in IoT requires a more robust and broader lens in order to enable smarter timely actions and better outcomes. Business operations become the key driver of IoT applications and projects. Business operations, IT, and data scientists need advanced analytics t...
Contrary to mainstream media attention, the multiple possibilities of how consumer IoT will transform our everyday lives aren’t the only angle of this headline-gaining trend. There’s a huge opportunity for “industrial IoT” and “Smart Cities” to impact the world in the same capacity – especially during critical situations. For example, a community water dam that needs to release water can leverage embedded critical communications logic to alert the appropriate individuals, on the right device, as soon as they are needed to take action.
SYS-CON Events announced today that HPM Networks will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. For 20 years, HPM Networks has been integrating technology solutions that solve complex business challenges. HPM Networks has designed solutions for both SMB and enterprise customers throughout the San Francisco Bay Area.
SYS-CON Events announced today that Micron Technology, Inc., a global leader in advanced semiconductor systems, will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Micron’s broad portfolio of high-performance memory technologies – including DRAM, NAND and NOR Flash – is the basis for solid state drives, modules, multichip packages and other system solutions. Backed by more than 35 years of technology leadership, Micron's memory solutions enable the world's most innovative computing, consumer,...
As more intelligent IoT applications shift into gear, they’re merging into the ever-increasing traffic flow of the Internet. It won’t be long before we experience bottlenecks, as IoT traffic peaks during rush hours. Organizations that are unprepared will find themselves by the side of the road unable to cross back into the fast lane. As billions of new devices begin to communicate and exchange data – will your infrastructure be scalable enough to handle this new interconnected world?
Through WebRTC, audio and video communications are being embedded more easily than ever into applications, helping carriers, enterprises and independent software vendors deliver greater functionality to their end users. With today’s business world increasingly focused on outcomes, users’ growing calls for ease of use, and businesses craving smarter, tighter integration, what’s the next step in delivering a richer, more immersive experience? That richer, more fully integrated experience comes about through a Communications Platform as a Service which allows for messaging, screen sharing, video...
SYS-CON Events announced today that Pythian, a global IT services company specializing in helping companies leverage disruptive technologies to optimize revenue-generating systems, has been named “Bronze Sponsor” of SYS-CON's 17th Cloud Expo, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Founded in 1997, Pythian is a global IT services company that helps companies compete by adopting disruptive technologies such as cloud, Big Data, advanced analytics, and DevOps to advance innovation and increase agility. Specializing in designing, imple...
In his session at @ThingsExpo, Lee Williams, a producer of the first smartphones and tablets, will talk about how he is now applying his experience in mobile technology to the design and development of the next generation of Environmental and Sustainability Services at ETwater. He will explain how M2M controllers work through wirelessly connected remote controls; and specifically delve into a retrofit option that reverse-engineers control codes of existing conventional controller systems so they don't have to be replaced and are instantly converted to become smart, connected devices.
SYS-CON Events announced today that IceWarp will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. IceWarp, the leader of cloud and on-premise messaging, delivers secured email, chat, documents, conferencing and collaboration to today's mobile workforce, all in one unified interface
As more and more data is generated from a variety of connected devices, the need to get insights from this data and predict future behavior and trends is increasingly essential for businesses. Real-time stream processing is needed in a variety of different industries such as Manufacturing, Oil and Gas, Automobile, Finance, Online Retail, Smart Grids, and Healthcare. Azure Stream Analytics is a fully managed distributed stream computation service that provides low latency, scalable processing of streaming data in the cloud with an enterprise grade SLA. It features built-in integration with Azur...
Akana has announced the availability of the new Akana Healthcare Solution. The API-driven solution helps healthcare organizations accelerate their transition to being secure, digitally interoperable businesses. It leverages the Health Level Seven International Fast Healthcare Interoperability Resources (HL7 FHIR) standard to enable broader business use of medical data. Akana developed the Healthcare Solution in response to healthcare businesses that want to increase electronic, multi-device access to health records while reducing operating costs and complying with government regulations.
For IoT to grow as quickly as analyst firms’ project, a lot is going to fall on developers to quickly bring applications to market. But the lack of a standard development platform threatens to slow growth and make application development more time consuming and costly, much like we’ve seen in the mobile space. In his session at @ThingsExpo, Mike Weiner, Product Manager of the Omega DevCloud with KORE Telematics Inc., discussed the evolving requirements for developers as IoT matures and conducted a live demonstration of how quickly application development can happen when the need to comply wit...
The Internet of Everything (IoE) brings together people, process, data and things to make networked connections more relevant and valuable than ever before – transforming information into knowledge and knowledge into wisdom. IoE creates new capabilities, richer experiences, and unprecedented opportunities to improve business and government operations, decision making and mission support capabilities.