Welcome!

Microsoft Cloud Authors: Janakiram MSV, Pat Romanski, Steven Mandel, John Basso, Liz McMillan

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 910Telecom will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Housed in the classic Denver Gas & Electric Building, 910 15th St., 910Telecom is a carrier-neutral telecom hotel located in the heart of Denver. Adjacent to CenturyLink, AT&T, and Denver Main, 910Telecom offers connectivity to all major carriers, Internet service providers, Internet backbones and ...
SYS-CON Events announced today Telecom Reseller has been named “Media Sponsor” of SYS-CON's 19th International Cloud Expo, which will take place on November 1–3, 2016, 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.
Smart Cities are here to stay, but for their promise to be delivered, the data they produce must not be put in new siloes. In his session at @ThingsExpo, Mathias Herberts, Co-founder and CTO of Cityzen Data, will deep dive into best practices that will ensure a successful smart city journey.
DevOps at Cloud Expo, taking place Nov 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud 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 for long dev...
The 19th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Digital Transformation, Microservices 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 business opportuni...
There is growing need for data-driven applications and the need for digital platforms to build these apps. In his session at 19th Cloud Expo, Muddu Sudhakar, VP and GM of Security & IoT at Splunk, will cover different PaaS solutions and Big Data platforms that are available to build applications. In addition, AI and machine learning are creating new requirements that developers need in the building of next-gen apps. The next-generation digital platforms have some of the past platform needs a...
Pulzze Systems was happy to participate in such a premier event and thankful to be receiving the winning investment and global network support from G-Startup Worldwide. It is an exciting time for Pulzze to showcase the effectiveness of innovative technologies and enable them to make the world smarter and better. The reputable contest is held to identify promising startups around the globe that are assured to change the world through their innovative products and disruptive technologies. There w...
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th 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 devices - comp...
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at Cloud Expo, Ed Featherston, a director and senior enterprise architect at Collaborative Consulting, will discuss the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.
19th Cloud Expo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, 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 strategy. Meanwhile, 94% of enterpri...
Personalization has long been the holy grail of marketing. Simply stated, communicate the most relevant offer to the right person and you will increase sales. To achieve this, you must understand the individual. Consequently, digital marketers developed many ways to gather and leverage customer information to deliver targeted experiences. In his session at @ThingsExpo, Lou Casal, Founder and Principal Consultant at Practicala, discussed how the Internet of Things (IoT) has accelerated our abil...
With so much going on in this space you could be forgiven for thinking you were always working with yesterday’s technologies. So much change, so quickly. What do you do if you have to build a solution from the ground up that is expected to live in the field for at least 5-10 years? This is the challenge we faced when we looked to refresh our existing 10-year-old custom hardware stack to measure the fullness of trash cans and compactors.
The emerging Internet of Everything creates tremendous new opportunities for customer engagement and business model innovation. However, enterprises must overcome a number of critical challenges to bring these new solutions to market. In his session at @ThingsExpo, Michael Martin, CTO/CIO at nfrastructure, outlined these key challenges and recommended approaches for overcoming them to achieve speed and agility in the design, development and implementation of Internet of Everything solutions wi...
Cloud computing is being adopted in one form or another by 94% of enterprises today. Tens of billions of new devices are being connected to The Internet of Things. And Big Data is driving this bus. An exponential increase is expected in the amount of information being processed, managed, analyzed, and acted upon by enterprise IT. This amazing is not part of some distant future - it is happening today. One report shows a 650% increase in enterprise data by 2020. Other estimates are even higher....
I wanted to gather all of my Internet of Things (IOT) blogs into a single blog (that I could later use with my University of San Francisco (USF) Big Data “MBA” course). However as I started to pull these blogs together, I realized that my IOT discussion lacked a vision; it lacked an end point towards which an organization could drive their IOT envisioning, proof of value, app dev, data engineering and data science efforts. And I think that the IOT end point is really quite simple…
Today we can collect lots and lots of performance data. We build beautiful dashboards and even have fancy query languages to access and transform the data. Still performance data is a secret language only a couple of people understand. The more business becomes digital the more stakeholders are interested in this data including how it relates to business. Some of these people have never used a monitoring tool before. They have a question on their mind like “How is my application doing” but no id...
Identity is in everything and customers are looking to their providers to ensure the security of their identities, transactions and data. With the increased reliance on cloud-based services, service providers must build security and trust into their offerings, adding value to customers and improving the user experience. Making identity, security and privacy easy for customers provides a unique advantage over the competition.
Is the ongoing quest for agility in the data center forcing you to evaluate how to be a part of infrastructure automation efforts? As organizations evolve toward bimodal IT operations, they are embracing new service delivery models and leveraging virtualization to increase infrastructure agility. Therefore, the network must evolve in parallel to become equally agile. Read this essential piece of Gartner research for recommendations on achieving greater agility.
SYS-CON Events announced today that Venafi, the Immune System for the Internet™ and the leading provider of Next Generation Trust Protection, will exhibit at @DevOpsSummit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Venafi is the Immune System for the Internet™ that protects the foundation of all cybersecurity – cryptographic keys and digital certificates – so they can’t be misused by bad guys in attacks...
For basic one-to-one voice or video calling solutions, WebRTC has proven to be a very powerful technology. Although WebRTC’s core functionality is to provide secure, real-time p2p media streaming, leveraging native platform features and server-side components brings up new communication capabilities for web and native mobile applications, allowing for advanced multi-user use cases such as video broadcasting, conferencing, and media recording.