SYMBOL: TSX: AGT
REGINA, May 13, 2013 /CNW/ - Alliance Grain Traders Inc. ("AGT") has
announced its financial results for the three months ended March 31,
2013. Results include:
EBITDA* was $13.6 million for the three months ended March 31, 2013 compared
to $6.1 million for the three months ended March 31, 2012, an increase
of 121% and compared to $12.5 million for the three months ended
December 31, 2012.
Revenue was $276.4 million for the three months ended March 31, 2013 compared
to $197.4 million for the three months ended March 31, 2012, an
increase of 40% and compared to $247.2 million for the quarter ended
December 31, 2012.
Adjusted net earnings were $5.1 million for the three months ended March 31, 2013 compared to
an adjusted net loss of $2.6 million for the three months ended March
31, 2012 and adjusted net earnings of $3.8 million for the three months
ended December 31, 2012.
Improvement in days inventory outstanding from 86.2 days for the year ended December 31, 2012 and 86.0 days for
the quarter ended March 31, 2012 to 68.0 days for the quarter ended
March 31, 2013.
Improvement in days accounts receivable outstanding from 75.7 days for the year ended December 31, 2012 and 77.0 days for
the quarter ended March 31, 2012 to 61.2 days for the quarter ended
March 31, 2013.
Minot facility construction materially complete with plant commissioning activities
having begun in late quarter one 2013 with a late quarter two 2013
completion target for fractionization process.
Dividend of $0.15 per share for the quarter ($0.60 per share on an annualized
"Export statistics from Canada and the U.S. appear to be supporting our
position that pulses and staple foods markets are continuing to
normalize, with import demand improving. Production shortfalls
projected for India may represent a demand catalyst that we expect may
continue through the second half of the year. For AGT, the significance
of recovery of lentil markets is in margin improvement potential as
well as the boosting of utilization for Canada and Turkey. The
underutilization of our assets or the change in product mix we saw in
2012 in both of these significant production origins to react to
temporarily impaired lentil demand certainly led to the earnings
compression. As pulse demand improves, so does our utilization and with
it our earnings due to the high fixed cost nature of our business,"
said Mr. Murad Al-Katib, President and CEO of AGT.
"Weather conditions have improved, allowing for the gradual progression
of seeding activities in North America. However, rationalization of
acres is being reported by some sources which may result in lower
production estimates in Canada and the U.S. This may also provide
positives with respect to rebalancing supply and exports, which have
been misaligned recently. Lower supply, decreases in carry-in and
increased import demand may also have the result of correcting global
pulse prices, as well as providing positive impact to our earnings,"
added Mr. Al-Katib.
"Market normalization is progressing as we expected, and we see the pace
picking up based on export statistics from many of our origins. We are
entering the seasonally quiet period in this second quarter where pulse
markets "reset" with India and Turkey harvest and North America
seeding. We remain optimistic for the balance of 2013 and for 2014 as
the efficiency and cost reduction, working capital management and
product diversification initiatives we have undertaken continue to
progress, providing positive results in our business. Our core pulses
business is returning to normal and we expect new margin opportunities
through our pulses ingredient business focused on flour, protein,
starch and fibre as well as our growing retail packaged foods business
to show their effects in coming quarters," added Mr. Huseyin Arslan,
Executive Chairman of the Board of Directors of AGT.
The financial statements and notes thereto for the three months ended
March 31, 2013, as well as the related management's discussion and
analysis have been filed under AGT's profile on www.sedar.com and have been posted on the AGT web site at www.alliancegrain.com. All amounts are reported in Canadian dollars.
AGT invites you to join our First Quarter 2013 conference call on
Monday, May 13, 2013 at 2:30 p.m. Eastern time. To join the conference,
please dial 1-800-319-4610 (Toll free in Canada & the U.S.) or
+1-604-638-5340 (Outside Canada & the U.S.).
A recording of the call will be available at www.alliancegrain.com on Tuesday, May 14, 2013. A telephone replay will also be available
until midnight Eastern time, Monday, May 27, 2013. To access the
replay, please call 1-800-319-6413 (toll free from Canada & the U.S.)
or +1-604-638-9010 (from outside Canada & the U.S.). When prompted,
enter the code 4537, followed by the number sign (#).
Alliance Grain Traders Inc. Profile
Alliance Grain Traders Inc. (AGT) is a value-added pulse, staple food
and ingredient processor for export and domestic markets. Through its
offices and processing facilities located in some of the best
agricultural growing regions in Canada, the U.S., Turkey, China,
Australia and South Africa, merchandising and sales offices in the
U.K., the Netherlands and Spain and origination offices in Russia, AGT
produces a full range of pulses and specialty crops including lentils,
peas, chickpeas, beans and canary seed as well as food ingredients such
as pulse flours, proteins, starches and fibres. Through its
subsidiaries in Turkey, the Arbel Group, AGT also produces staple foods
such as Arbella Pasta, rice, and milled wheat products, including
bulgur and semolina.
Certain statements in this press release are forward-looking statements.
The reader is cautioned that assumptions used in the preparation of
such information, although considered reasonable by AGT at the time of
preparation, may prove to be incorrect. Forward-looking statements
involve known and unknown risks, uncertainties and other factors which
may cause the actual results, performance or achievements of AGT
(including its operating subsidiaries) to be materially different from
any future results, performance or achievements expressed or implied by
the forward-looking statements. Such risks and uncertainties include,
among others, the actual results of harvests, fluctuations in the price
of lentils and other crops, failure of plant, equipment or processes to
operate as anticipated, accidents or labour disputes, risks relating to
the integration of acquisitions or to international operations, as well
as those factors referred to in the section entitled "Risk Factors" in
the Annual Information Form of AGT dated February 21, 2013 which is
available on SEDAR at www.sedar.com, and which should be reviewed in conjunction with this document.
Although AGT has attempted to identify important factors that could
cause actual actions, events or results to differ materially from those
described in forward-looking statements, there may be other factors
that cause actions, events or results not to be as anticipated,
estimated or intended. There can be no assurance that forward-looking
statements will prove to be accurate, as actual results and future
events could differ materially from those anticipated in such
statements. Accordingly, readers should not place undue reliance on
forward-looking statements. AGT expressly disclaims any intention or
obligation to update or revise any forward-looking statements, whether
as a result of new information, future events or otherwise, except in
accordance with applicable securities laws.
Non-IFRS Financial Measures
AGT provides some non-IFRS measures as supplementary information that
Management believes may be useful to investors to explain AGT's
financial results. These non-IFRS measures include EBITDA* (earnings
before finance expense, income taxes, depreciation and amortization,
restructuring costs and any effects of non-recurring and other costs
and foreign exchange adjustment), Adjusted Net Earnings* (earnings
before any effects of non-recurring and other costs, restructuring
costs and foreign exchange adjustments), Net Debt* (bank indebtedness,
short term financing and long term debt less cash) and Net Working
Capital* (current assets less current liabilities). Management believes
that these are important measures in evaluating performance and in
determining whether to invest in AGT. However, EBITDA*, Adjusted Net
Earnings*, Net Debt* and Net Working Capital* are not recognized
measures under IFRS and do not have standardized meanings prescribed by
IFRS. In addition, AGT may calculate these measures differently than
other companies; therefore, such measures may not be comparable.
Investors are cautioned that EBITDA*, Adjusted Net Earnings*, Net Debt*
and Net Working Capital* should not be construed as an alternative to
net earnings (loss) or cash flows as determined in accordance with IFRS
as an indicator of AGT's performance or liquidity. For a reconciliation
of net earnings (loss) determined in accordance with IFRS to EBITDA*
and Adjusted Net Earnings*, see the table on page 33 in the related
management's discussion and analysis for the three months ended March
SOURCE: Alliance Grain Traders Inc.
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