Bevo Agro Inc. announces results for the first quarter of fiscal 2014.

LANGLEY, BC, Nov. 27, 2013 /CNW/ - Bevo Agro Inc. (TSXV:BVO) reports that sales for the three months ending September 30, 2013 were $2,150,176 compared to sales of $2,082,883 for the same period ending September 30, 2012.

For the second consecutive year sales in the first quarter showed an increase.  The first quarter is historically the lowest revenue producing period of the year.

The gross margin for the quarter increased to $340,809 (15.9% of sales) compared to $320,692 (15.4% of sales) for the prior year.

Expenses for the quarter ended September 30, 2013 totaled $1,090,626 compared to $1,095,387 in the same quarter the year earlier as an increase in operating and administrative costs were more than offset by reduced interest and amortization expenses. No allowance for bad debts was necessary in the first quarter.

The net loss and comprehensive loss for the quarter was $513,661 compared to a loss of $526,795 for the same quarter in the previous year.

Readers are encouraged to view the Company's unaudited financial statements at September 30, 2013, and accompanying MD&A at www.sedar.com.

Summary- Consolidated Interim Condensed Statements of Operations and Comprehensive Income (Loss)

Three months ending         Sept. 30, 2013       Sept. 30, 2012
Sales       $2,150,176       100%       $2,082,883       100%
Cost of Sales       $1,809,367       84.1%       $1,762,191       84.6%
Gross Margin       $340,809       15.9%       $320,692       15.4%
                                 
Expenses                                
Operating & administrative       $229,548       10.7%       $216,306       10.4%
Administrative fees, wages & benefits       $278,910       13.0%       $267,429       12.8%
Amortization       $375,097       17.4%       $386,541       18.6%
Interest expenses       $207,071       9.6%       $225,111       10.8%
        $1,090,626       50.7%       $1,095,387       52.6%
Earnings (loss) from operations       -$749,817       -34.9%       -$774,695       -37.2%
Other income       $16,016                        
Earnings before taxes       -$733,801       -34.1%       -$774,695       -37.2%
Income taxes-future       -$220,140       -10.2%       -$247,900       -11.9%
Net earnings (loss) for period       -$513,661       -23.9%       -$526,795       -25.3%

Because revenue is accounted as "when goods are shipped", the Company provides the following 12 month trailing summary of financial performance. Twelve month sales for the 12 months ending September 2013 have increased 15% over the 12 months ending September 30, 2011. The company uses EBITDA defined as earnings before interest, taxes and depreciation as a corporate financial measurement. EBITDA for the 12 months ending September 30, 2013 was 30% higher than the trailing 12 month period ending September 30, 2011.

Bevo's trailing twelve months results are summarized below

Twelve months ending           Mar 31, 2012     Sept. 30, 2012     Mar 31, 2013     Sept. 30, 2013
Sales           $17,483,472     $19,279,800     $20,539,020     $20,654,497
Gross Margin           $4,237,149     $4,825,211     $4,838,147     $5,103,183
Earnings before taxes           -$300,312     $164,103     $144,929     $199,837
EBITDA            $2,073,968     $2,658,234     $2,632,729     $2,826,455

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, nurseries and retail outlets from its 39 acre production facility.

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.

For further information:

Jack Benne, President
Bevo Agro Inc.
Phone: (604) 888-0420
Fax: (604) 888-8048
Email:  jackbenne@bevofarms.com


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