LANGLEY, BC, Oct. 20, 2014 /CNW/ - Bevo Agro Inc. (TSXV: BVO) sales for the year ending June 30, 2014 totaled $23,309,085, an increase of $2,721,881 or 17% over the previous year. Sales for the same 12 month period in 2013 totaled $20,587,204. Sales to Canadian clients increased by 28%. Approximately 90% of Bevo's sales result from repeat orders through recurring multiyear contracts.
The acquisition of additional land and greenhouse facilities located in Pitt Meadows, BC was announced on June 11, 2014. The acquisition had no material impact on the financial results for the year ending June 30, 2014.
Gross profit for the 12 months was $5,918,741 compared to $5,083,066 for fiscal 2013. Gross margin percentages are consistent with previous years.
Earnings before interest, taxes, depreciation and amortization (EDITDA) increased 17% to $3,359,710 over EBITDA of $2,815,045 for the year ending June 30, 2013.
General operating and employee expenses increased by $105,731 with the increased sales however are constant with previous years as a percentage of sales.
Interest expense declined slightly, with reduced borrowings. The company maintains a balance of fixed and floating rates on borrowings as a hedge against interest rate fluctuations.
The company did not incur any losses for bad debts in the most recent year as it monitors customer receivables on a regular basis.
Net earnings for the year ending June 30, 2104 were $738,745 (3% of sales) compared to $184,533 (1% of sales) last year.
Financial Summary
For the year ending | June 30, 2014 |
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| June 30, 2013 |
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Sales | $23,309,085 | 100% |
| $20,587,204 | 100% |
|
|
Cost of Sales | $17,390,344 | 75% |
| $15,504,138 | 75% |
|
|
Gross Margin | $5,918,741 | 25% |
| $5,083,066 | 25% |
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|
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|
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|
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Expenses |
|
|
|
|
|
|
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General Operating | $1,251,056 | 5% |
| $1,259,385 | 6% |
|
|
Employee Wages & Benefits | $1,327,364 | 6% |
| $1,213,304 | 6% |
|
|
Amortization | $1,575,427 | 7% |
| $1,580,709 | 8% |
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Interest expenses | $861,038 | 4% |
| $890,049 | 4% |
|
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Provision for Bad debts | $0 |
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| $0 |
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Earnings (loss) from operations | $903,856 | 4% |
| $139,619 | 1% |
|
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Other | $19,389 | 0% |
| $19,324 | 0% |
|
|
Earnings before taxes | $923,245 | 4% |
| $158,943 | 1% |
|
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Income taxes-current | $0 |
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| $0 |
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|
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Income taxes-future | $184,500 | 1% |
| -$25,590 | 0% |
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Net earnings (loss) for period | $738,745 | 3% |
| $184,533 | 1% |
|
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Other comprehensive income | $742,500 |
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| $ 0 |
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Net income and comprehensive income | $1,481,245 |
|
| $184,533 |
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|
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|
|
|
|
|
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EBITDA | $3,359,710 | 14% |
| $2,815,045 | 14% |
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Shares o/s | 25,535,933 |
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| 25,535,933 |
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|
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EPS/Share | $0.03 |
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| $0.01 |
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EBITDA/share | $0.13 |
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| $0.11 |
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Because revenue is accounted as "when goods are shipped", the Company provides the following summary of trailing twelve month financial performance.
Twelve months ending | June 30. '11 | June 30. '12 | June 30. '13 | June 30. '14 |
Sales | $18,263,703 | $18,897,742 | $20,587,204 | $23,309,085 |
Gross Margin | $4,538,849 | $4,757,872 | $5,083,066 | $5,918,741 |
Net earnings (loss) for period | $44,128 | $571,781 | $184,533 | $738,745 |
EBITDA | $2,210,728 | $2,605,826 | $2,815,045 | $3,359,710 |
Summary of the Consolidated Balance Sheet dated June 30, 2014
ASSETS |
|
| LIABILITIES |
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Current | $5,209,942 |
| Current | $3,728,574 |
Property, Plant, Equip. | $32,681,474 |
| Long term | $17,208,836 |
Goodwill | $522,665 |
| Deferred income tax | $1,581,099 |
|
|
| Shareholder Equity | $15,895,572 |
| $38,414,081 |
|
| $38,414,081 |
Readers are encouraged to view the Company's year-end audited financial statements and accompanying MD&A at www.sedar.com.
Bevo Agro is North America's leading supplier of propagated agricultural plants, growing and distributing vegetable, flower, berry and other plant seedlings to North America's growers. Bevo propagates quality seedlings and plants for wholesale vegetable greenhouse growers, field growers and nursery operators from state of the art greenhouse facilities located in Langley, BC and Pitt Meadows, BC.
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.
SOURCE Bevo Agro Inc.
Jack Benne, President, Bevo Agro Inc., Phone: (604) 888-0420, Fax: (604) 888-8048, Email: jackbenne@bevofarms.com