Mr. Jack Benne reports
BEVO AGRO INC. ANNOUNCES 2016 THIRD QUARTER RESULTS
Bevo Agro Inc. had record sales and earnings for the third consecutive quarter.
Sales totalled $6,768,344 for the third quarter ended March 31, 2016, an increase of 40 per cent compared with sales of $4,850,303 for the three months ended March 31, 2015.
Sales for the nine months ended March 31, 2016, have increased 19 per cent to $18,056,722, compared with sales of $15,221,099 for the same nine months last year.
On Dec. 15, 2015, the company announced an eight-acre expansion, which is needed to provide capacity for its clients. It anticipates the eight acres will be substantially complete by the end of September.
The third quarter is typically one of Bevo's best-performing quarters as propagation and flower order deliveries to customers are very high in these months.
The gross profit for the nine months totals $4,147,818 compared with the gross profit of $3,690,281 for the nine months the previous year.
Operating expenses for the three months were $1,306,405 compared with $1,314,941 in the same period last year. Interest and administrative expenses were slightly lower in the quarter.
EBITDA (earnings before interest, taxes, depreciation and amortization) showed increases to $1,851,044 and $3,455,618 for the three- and nine-month periods ended March, 2016, respectively, increases of 37 per cent and 49 per cent, respectively. EBITDA for the same periods last year were $1,351,420 for the three months and $2,315,015 for the nine months.
The company has not provided for any bad debt write-offs in the third quarter, since all accounts receivable are current and collectable.
Net comprehensive income after allowance for income taxes was $883,860 (four cents per share) for the three months and $1,125,339 for the nine-month period. During the same period last year, net income was $504,043 and $315,588 for the three and nine months.
Third quarter highlights (versus third quarter last year):
- A 40-per-cent increase in sales;
- A 75-per-cent increase in net earnings;
- EBITDA increased to $1,851,044 from $1,351,420 compared with the same quarter last year.
Year-to-date highlights (versus the nine months of last year):
-
A 19-per-cent increase in sales;
- A record in sales for nine months to $18-million compared with $15-million for last year;
- Net earnings totalled $1,125,339 (four cents per share) for the nine-month period, compared with $315,588 last year;
- EBITDA totals $3.46-million compared with $2.3-million last year.
Readers are encouraged to view the company's unaudited financial statements as at March 31, 2016, and accompanying management's discussion and analysis at SEDAR.
Financial summary
CONSOLIDATED INTERIM CONDENSED STATEMENTS OF
OPERATIONS AND COMPREHENSIVE INCOME
Three months ended
March 31, 2016 March 31, 2015
Three-month summary
Sales $6,768,344 $4,850,303
Cost of sales $4,267,529 $2,854,229
------------ ------------
Gross margin $2,500,815 $1,996,074
Expenses
Operating and administration $357,929 $335,129
Administration fees, wages $291,842 $309,525
Amortization $457,859 $448,245
Interest expenses $198,775 $222,042
------------ ------------
Total expenses $1,306,405 $1,314,941
------------ ------------
Earnings from operations $1,194,410 $681,133
Income taxes, current $0 $0
Income taxes, future $310,550 $177,090
------------ ------------
Net earnings for period $883,860 $504,043
------------ ------------
EBITDA $1,851,044 $1,351,420
Earnings per share $0.04 $0.02
EBITDA per share $0.08 $0.06
Nine months ended
March 31, 2016 March 31, 2015
Nine-month summary
Sales $18,056,722 $15,221,099
Cost of sales $12,735,562 $11,073,281
------------ ------------
Gross margin $5,321,160 $4,147,818
Expenses
Operating and administration $969,808 $979,267
Administration fees, wages $895,734 $921,487
Amortization $1,344,224 $1,253,628
Interest expenses $590,665 $634,919
------------ ------------
Total expenses $3,800,431 $3,789,301
------------ ------------
Earnings from operations $1,520,729 $358,517
Other $0 $67,951
------------ ------------
Earnings before taxes $1,520,729 $426,468
Income taxes, current $0 $0
Income taxes, future $395,390 $110,880
------------ ------------
Net earnings for period $1,125,339 $315,588
------------ ------------
Earnings per share $0.04 $0.01
EBITDA per share $0.14 $0.09
EBITDA $3,455,618 $2,315,015
Bevo's sales fluctuate by quarter depended on type of crop and client demands. Typically the third and fourth quarters account for a majority of sales. Bevo accounts for sales as when goods are shipped and believes the 12-month trailing summary of financial performance is more indicative of financial performance.
Bevo's trailing 12-month results are summarized in the attached trailing 12-month results table.
TRAILING 12-MONTH RESULTS
Twelve months ended
March 31, 2013 March 31, 2014 March 31, 2015 March 31, 2016
Sales $20,539,020 $22,567,284 $26,047,687 $29,057,300
Gross margin $4,838,147 $5,755,745 $6,376,278 $7,974,696
Earnings before taxes $144,929 $746,634 $1,198,837 $2,604,017
Net earnings for period $561,997 $587,124 $948,757 $2,007,307
EBITDA $2,632,729 $3,178,335 $3,720,432 $5,219,182
© 2024 Canjex Publishing Ltd. All rights reserved.