Alliance Grain Traders Inc. Announces Q3 2013 Results and Dividend

SYMBOL: TSX: AGT

REGINA, Nov. 12, 2013 /CNW/ - Alliance Grain Traders Inc. ("AGT") has announced its financial results for the three and nine months ended September 30, 2013.  Results include:

  • EBITDA* was $14.4 million for the three months ended September 30, 2013 compared to $11.5 million for the three months ended September 30, 2012, an increase of 25.2%.
  • Revenue was $240.5 million for the three months ended September 30, 2013 compared to $209.0 million for the three months ended September 30, 2012, an increase of 15.1%.
  • Adjusted net earnings* were $4.7 million for the three months ended September 30, 2013 compared to adjusted net earnings of $4.0 million for the three months ended September 30, 2012 and adjusted net earnings of $4.9 million for the three months ended June 30, 2013.
  • Improvement in days inventory outstanding to 77 days for the nine months ended September 30, 2013, down from 79 days for the nine months ended September 30, 2012.
  • Improvement in days accounts receivable outstanding to 56 days for the nine months ended September 30, 2013, down from 73 days for the nine months ended September 30, 2012.
  • Minot facility construction complete with plant commissioning activities nearing completion.
  • Dividend of $0.15 per share for the quarter ($0.60 per share on an annualized basis).

"We are pleased with our third quarter results and continue to forecast a gradual return to seasonal patterns and volumes, bringing with them what we expect to be positive impact on our earnings. Canadian harvest is complete and we expect the potential for a robust traditional shipment period ahead in the coming quarters. These conditions certainly have assisted in what we are viewing as continued normalization of pulses and staple foods markets and as a result they are positive for our core legacy business in value-added and whole pulses," said Mr. Murad Al-Katib, President and CEO of AGT.

"Our food ingredient business focused on pulses flour, protein, starch and fibre ingredients provides additional optimism for AGT and our planned growth and expansions. The Minot facility has completed construction and is nearly completed on commissioning with commercial shipments moving out of the plant to satisfy our announced marketing agreement with Cargill on pulse protein for branded feed in North America, as well as other global customers looking for a quality supplier of non-GMO, high protein, high fibre ingredients or new and innovative sources of starch ingredients and flour blends for use in their products, whether for human food consumption or feed and pet food. This new line of business is expected to assist in furthering our stated objective of moving AGT up the value chain and solidifying our transition from a commodity exporter to a food company," added Mr. Al-Katib.

"The management initiatives we have implemented over the past quarters assist in continuing to demonstrate that our strategy for growth is on track and that our management team is committed to providing growth and value to our shareholders. Our core legacy business, with origination and supply positions in multiple geographies, has always been a strength for AGT. We continue our acceleration towards new platforms for growth in our food ingredient business. We believe the same strategies that have been applied to our core legacy business can provide advantages that may allow us to expand our offering of healthy ingredients for food and feed companies around the globe. As this platform develops, we expect new sales and revenue opportunities to assist in maintaining a healthy and more predictable earnings profile, generating free cash flow to fund our growth, reduce our debt and provide value to our shareholders," added Mr. Huseyin Arslan, Executive Chairman of the Board of Directors of AGT.

The financial statements and notes thereto for the three and nine months ended September 30, 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 website at www.alliancegrain.com. All amounts are reported in Canadian dollars.

AGT has also announced a cash dividend for the quarter ending December 31, 2013 of $0.15 per common share. The dividend will be payable on January 6, 2014 to shareholders of record on December 31, 2013. This dividend is an eligible dividend for Canadian income tax purposes. AGT's current annualized cash dividend rate is approximately $0.60 per share.

AGT invites you to join our third quarter 2013 conference call on Wednesday, November 13, 2013 at 9:00 a.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 Thursday, November 14, 2013.  A telephone replay will also be available until midnight Eastern time, Wednesday, November 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 processor of value-added pulses, staple foods and ingredients 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, Spain and India 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.

Cautionary Statements
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 36 in the related management's discussion and analysis for the three and nine months ended September 30, 2013.

SOURCE: Alliance Grain Traders Inc.

For further information:


Investor Relations
Omer Al-Katib
(306) 244-1318   
ir@alliancegrain.com

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Alliance Grain Traders Inc.

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