Mr. Joel Horn reports

LEGUMEX WALKER REPORTS SIGNIFICANT IMPROVEMENT IN FINANCIAL PERFORMANCE IN 2014

Legumex Walker Inc. has released its financial results for fiscal year 2014 and three months ended Dec. 31, 2014.

Highlights for the year ended Dec. 31, 2014 (all comparative metrics are relative to 2013, unless otherwise stated):

• Special crops segment:
  • Tonnes sold of 412,500 were comparable year over year.
  • Commodity margin increased 7.6 per cent from $48.3-million to $52-million.
  • Adjusted gross profit (1) increased 4.1 per cent from $27.1-million to $28.2-million.
  • Adjusted earnings before interest, taxes, depreciation and amortization (1) increased 14.1 per cent from $15.6-million to $17.8-million.
• Oilseed processing (canola) segment:
  • Tonnes crushed increased 83 per cent from 132,600 to 242,300.
  • Non-genetically modified organism tonnes crushed increased to 7 per cent for the year (12 per cent for fourth quarter, see below).
  • Adjusted gross profit improved from negative $6.6-million to positive $2.1-million.
  • Adjusted EBITDA (1) improved from negative $10.2-million to negative $2.2-million.
• Consolidated:
  • Consolidated revenues increased 7.9 per cent from $433.6-million to $468-million.
  • Adjusted gross profit (1) increased 47.6 per cent from $20.5-million to $30.3-million.
  • Adjusted EBITDA (1) improved from negative $1.8-million to positive $8.8-million.
  • Net loss attributable to shareholders improved from $25.4-million to $22.5-million.

Highlights for quarter ended Dec. 31, 2014 (all comparative metrics are relative to the fourth quarter of 2013, unless otherwise stated):

• Special crops segment:
  • Revenue decreased 17.9 per cent from $101.5-million to $83.3-million based on a 22.7-per-cent decrease in volumes shipped (from 126,300 to 97,600 tonnes) related to the logistics challenges of a late Canadian harvest;
  • Adjusted gross profit (1) decreased 34.9 per cent from $6.9-million to $4.5-million reflective of the lower sales volumes (discussed above);
  • Adjusted EBITDA (1) decreased 66.1 per cent from $4.2-million to $1.4-million, also reflecting the lower sales volumes (discussed above);
  • Achieved CGC HACCP (Canadian Grain Commission hazard analysis critical control point) food safety certification at four facilities;
  • Completed sunflower storage and processing line expansion at Winkler facility;
  • Completed implementation of a new position management system as part of an integrated companywide ERP (enterprise resource planning) system;
• Oilseed processing (canola) segment:
  • Tonnes crushed increased 25 per cent from 51,900 (or 54.7 per cent of capacity) to 64,700 (or 68.2 per cent of capacity);
  • Non-GMO tonnes crushed was 12 per cent of total tonnes crushed compared with 6 per cent in 2013;
  • Entered into long-term alliance with the Scoular Company;
  • Monetized net working capital position in connection with Scoular agreement; Scoular now finances all seed purchases and sales collections, significantly reducing Pacific Coast Canola's working capital requirements;
  • Extinguished working capital credit facilities with Macquarie Bank;
  • Adjusted gross profit (1) increased from $210,000 to $936,000;
  • Adjusted EBITDA (1) improved from negative $825,000 to negative $147,000;
• Consolidated:
  • Consolidated revenues decreased 26.7 per cent from $135.3-million to $99.2-million, reflecting the lower sales volumes in the special crops division (discussed above) and the recognition of revenue earned by the oilseed segment on a net basis under the Scoular processing agreement for the months of November and December;
  • Adjusted gross profit (1) decreased from $7.1-million to $5.4-million reflecting the lower sales volumes in special crops discussed above;
  • Adjusted EBITDA (1) decreased from $1.5-million to negative $31,000;
  • Issued five-year $16.5-million subordinated convertible debenture to Scoular;
  • Completed implementation of a companywide ERP system, bringing conclusion to three-year project.

Highlights subsequent to the end of 2014:

• Completed transition from CHS to Scoular;
• Appointed new chief financial officer;
• On Feb. 5, 2015, the company secured additional financing of $1.3-million (U.S.) from its PCC equity partner;
• On March 12, 2015, HSBC Bank Canada approved a provisional $10-million increase in the company's operating facility, increasing it to $64-million from $54-million, for the period starting March 12, 2015, and ending May 31, 2015. The company often increases its operating facility in first quarter due to a larger borrowing base at this time in the crop cycle;
• On March 16, 2015, the company announced the formation of a special committee of the board to identify and consider strategic and financial alternatives available to the company, which may include, but are not limited to, a strategic financing, merger or other business combination, sale of the company or a portion of the company's business or assets, or any combination thereof, as well as the continued execution of its business plan.

"Our special crops business delivered its best fiscal-year adjusted EBITDA (1) of $17.8-million, and Pacific Coast Canola was able to improve its adjusted EBITDA (1) by over $8-million despite facing several, non-recurring market challenges," said Joel Horn, president and chief executive officer, Legumex Walker. "Our consolidated adjusted EBITDA (1) was $8.8-million, considerably less than what we believe we can achieve, however represents several positive changes in both of our divisions and provides a solid base on which to grow. PCC completed a major transition to the Scoular Company in [first quarter] of this year, and is working to significantly improve its financial performance when additional non-GMO and local canola seed should be available with the new crop in September."

Mr. Horn added, "With the formation of a special committee of the board to identify and consider strategic and financial alternatives available to the company, we hope to unlock the value of the platform we have built over the last three years."

Although the company has initiated a strategic review process, there is no certainty that any transaction or alternative will be undertaken. The company has not set a definitive schedule to complete its evaluation, and, notwithstanding the above-mentioned alternatives, no decision on any particular alternative has been reached at this time. The company does not intend to make further announcements or disclose developments with respect to this process, unless the evaluation has been completed and the board has approved a definitive transaction and the company has entered into a definitive agreement, or unless otherwise required by law or regulation or disclosure of which is deemed appropriate.

The company also announced the resignation of Ivan Sabourin from its board of directors, and thanks him for his diligent service to the company and its shareholders. Mr. Sabourin will continue to serve the company in his current management position with the special crops division.

(1) Non-generally accepted accounting principles measures

Financial statements, and management discussion and analysis

Legumex Walker's financial statements, and management's discussion and analysis for fiscal year 2014 and the period ended Dec. 31, 2014, are available on the company's website in the investors section. The company has also posted its most recent investor presentation on its website.

Conference call

Legumex Walker will host a conference call on Friday, March 27, 2015, at 10 a.m. ET, to discuss its fourth-quarter and fiscal year 2014 financial results. To access the conference call by telephone, dial 647-427-7450 or 888-231-8191. Please connect approximately 10 minutes prior to the start of the call to ensure access. A recording of the conference call will be archived for replay by telephone until Friday, April 3, 2015, at midnight. To access the archived conference call, dial 1-855-859-2056 and enter reservation No. 85662136. A live audio webcast of the conference call will be available on the company's website. Please connect at least 15 minutes prior to the conference call to ensure adequate time for any software download that may be required to join the webcast.

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