Welcome!

Microsoft Cloud Authors: Andreas Grabner, Stackify Blog, Liz McMillan, David H Deans, Automic Blog

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
SYS-CON Events announced today that MobiDev, a client-oriented software development company, will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. MobiDev is a software company that develops and delivers turn-key mobile apps, websites, web services, and complex software systems for startups and enterprises. Since 2009 it has grown from a small group of passionate engineers and business...
SYS-CON Events announced today that GrapeUp, the leading provider of rapid product development at the speed of business, will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Grape Up is a software company, specialized in cloud native application development and professional services related to Cloud Foundry PaaS. With five expert teams that operate in various sectors of the market acr...
SYS-CON Events announced today that Ayehu will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on October 31 - November 2, 2017 at the Santa Clara Convention Center in Santa Clara California. Ayehu provides IT Process Automation & Orchestration solutions for IT and Security professionals to identify and resolve critical incidents and enable rapid containment, eradication, and recovery from cyber security breaches. Ayehu provides customers greater control over IT infras...
SYS-CON Events announced today that Datanami has been named “Media 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. Datanami is a communication channel dedicated to providing insight, analysis and up-to-the-minute information about emerging trends and solutions in Big Data. The publication sheds light on all cutting-edge technologies including networking, storage and applications, and the...
Artificial intelligence, machine learning, neural networks. We’re in the midst of a wave of excitement around AI such as hasn’t been seen for a few decades. But those previous periods of inflated expectations led to troughs of disappointment. Will this time be different? Most likely. Applications of AI such as predictive analytics are already decreasing costs and improving reliability of industrial machinery. Furthermore, the funding and research going into AI now comes from a wide range of com...
SYS-CON Events announced today that EnterpriseTech has been named “Media 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. EnterpriseTech is a professional resource for news and intelligence covering the migration of high-end technologies into the enterprise and business-IT industry, with a special focus on high-tech solutions in new product development, workload management, increased effi...
In this presentation, Striim CTO and founder Steve Wilkes will discuss practical strategies for counteracting fraud and cyberattacks by leveraging real-time streaming analytics. In his session at @ThingsExpo, Steve Wilkes, Founder and Chief Technology Officer at Striim, will provide a detailed look into leveraging streaming data management to correlate events in real time, and identify potential breaches across IoT and non-IoT systems throughout the enterprise. Strategies for processing massive ...
SYS-CON Events announced today that Conference Guru has been named “Media 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. A valuable conference experience generates new contacts, sales leads, potential strategic partners and potential investors; helps gather competitive intelligence and even provides inspiration for new products and services. Conference Guru works with conference organi...
SYS-CON Events announced today that Cloud Academy named "Bronze Sponsor" of 21st International Cloud Expo which will take place October 31 - November 2, 2017 at the Santa Clara Convention Center in Santa Clara, CA. Cloud Academy is the industry’s most innovative, vendor-neutral cloud technology training platform. Cloud Academy provides continuous learning solutions for individuals and enterprise teams for Amazon Web Services, Microsoft Azure, Google Cloud Platform, and the most popular cloud com...
SYS-CON Events announced today that CA Technologies has been named "Platinum Sponsor" of SYS-CON's 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. CA Technologies helps customers succeed in a future where every business - from apparel to energy - is being rewritten by software. From planning to development to management to security, CA creates software that fuels transformation for companies in the applic...
SYS-CON Events announced today that TMC has been named “Media Sponsor” of SYS-CON's 21st International Cloud Expo and Big Data at Cloud Expo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Global buyers rely on TMC’s content-driven marketplaces to make purchase decisions and navigate markets. Learn how we can help you reach your marketing goals.
Internet of @ThingsExpo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 21st Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devic...
"MobiDev is a Ukraine-based software development company. We do mobile development, and we're specialists in that. But we do full stack software development for entrepreneurs, for emerging companies, and for enterprise ventures," explained Alan Winters, U.S. Head of Business Development at MobiDev, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
SYS-CON Events announced today that Telecom Reseller has been named “Media 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. Telecom Reseller reports on Unified Communications, UCaaS, BPaaS for enterprise and SMBs. They report extensively on both customer premises based solutions such as IP-PBX as well as cloud based and hosted platforms.
We build IoT infrastructure products - when you have to integrate different devices, different systems and cloud you have to build an application to do that but we eliminate the need to build an application. Our products can integrate any device, any system, any cloud regardless of protocol," explained Peter Jung, Chief Product Officer at Pulzze Systems, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA
SYS-CON Events announced today that IBM has been named “Diamond Sponsor” of 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.
Multiple data types are pouring into IoT deployments. Data is coming in small packages as well as enormous files and data streams of many sizes. Widespread use of mobile devices adds to the total. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists looked at the tools and environments that are being put to use in IoT deployments, as well as the team skills a modern enterprise IT shop needs to keep things running, get a handle on all this data, and deliver...
The current age of digital transformation means that IT organizations must adapt their toolset to cover all digital experiences, beyond just the end users’. Today’s businesses can no longer focus solely on the digital interactions they manage with employees or customers; they must now contend with non-traditional factors. Whether it's the power of brand to make or break a company, the need to monitor across all locations 24/7, or the ability to proactively resolve issues, companies must adapt to...
SYS-CON Events announced today that Enzu will exhibit at SYS-CON's 21st Int\ernational Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Enzu’s mission is to be the leading provider of enterprise cloud solutions worldwide. Enzu enables online businesses to use its IT infrastructure to their competitive advantage. By offering a suite of proven hosting and management services, Enzu wants companies to focus on the core of their ...
In his session at @ThingsExpo, Eric Lachapelle, CEO of the Professional Evaluation and Certification Board (PECB), provided an overview of various initiatives to certify the security of connected devices and future trends in ensuring public trust of IoT. Eric Lachapelle is the Chief Executive Officer of the Professional Evaluation and Certification Board (PECB), an international certification body. His role is to help companies and individuals to achieve professional, accredited and worldwide re...