Bevo Agro Inc. Announces Third Quarter Results

LANGLEY, BC, May 27, 2013 /CNW/ - Bevo Agro Inc. (BVO:TSX-Ven.) is pleased to report sales for the third quarter ending March 31, 2013 of $3,567,427 an increase of 21.8% compared to sales of  $2,928,350 during the same quarter last year.   Sales for the nine months ending March 31, 2013 totaled $10,502,417, compared to sales of $8,861,139 the same nine months the previous year, an increase of 18.5%.  The increase in sales is a result of adding new clients and an overall increase in the number of plants ordered by clients.

Gross margins for the quarters ending March 31st were $1,469,809 (41%) in 2013 and $1,449,500 (49%) in 2012. Margins for the nine month period were $3,017,602 (29%) compared to $2,937,327 (33%) the previous year.  Margins this year are challenged by increased wages brought on by increases in the provincial minimum wage. Purchase costs were also higher as a result of increased biological expenses due to pest and disease issues.  This issue has since been resolved, and the Company does not expect a similar recurrence going forward.

Operating expenses totaled $3,454,417 or 33% of revenues for the nine months ending March 31, 2013. Operating expenses for the same period last year were $3,359,718 or 38% of revenues.

Net earnings for the three months ending March 31, 2013 totaled $210,919 compared to $190,097 for the same period last year.  The nine month results show a loss of $297,015 versus a loss of $287,231 for the nine months ending March 31, 2012.

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

Financial Summary

3 months ending March 31       2013        2012  
Sales $3,567,427 100%   $2,928,350 100%
Cost of Sales $2,097,618 59%   $1,478,850 51%
Gross Margin $1,469,809 41%   $1,449,500 49%
           
Expenses          
Operating & administrative $257,943 7%   $256,290 9%
Administrative fees, wages & benefits $273,955 8%   $278,717 10%
Amortization $398,845 11%   $402,956 14%
Interest expenses $220,047 6%   $231,980 8%
Provision for bad debts $            0 0%   $            0 0%
  $1,150,790 32%   $1,169,943 40%
Earnings before taxes $319,019 9%   $279,557 10%
Income taxes-future $108,100 3%   $89,460 3%
Net earnings  for period $210,919 6%   $190,097 6%
           
Earnings per Share $0.01     $0.01  
           
           
9 months ending March 31                2013             2012  
Sales $10,502,417 100%   $8,861,139 100%
Cost of Sales $7,484,815 71%   $5,923,812 67%
Gross Margin $3,017,602 29%   $2,937,327 33%
           
Operating & administrative $796,615 8%   $720,434 8%
Administrative fees, wages & benefits $815,328 8%   $808,157 9%
Amortization $1,174,641 11%   $1,128,764 13%
Interest expenses $667,833 6%   $672,383 8%
Provision for bad debts $             0 0%   $   29,980 0%
  $3,454,417 33%   $3,359,718 38%
           
Earnings (loss) before taxes -$436,815 -4%   -$422,391 -5%
Income taxes-future -$139,800 -1%   -$135,160 -2%
Net earnings (loss) for period -$297,015 -3%   -$287,231 -3%
           
Earnings per share -$0.01     -$0.01  

Bevo Agro's trailing twelve months comparative results are summarized below;

12 months ending Mar 31 ,2011 Sept. 30, 2011 Mar 31 ,2012 Sept.30, 2012 Mar 31 ,2013
Sales $19,433,694 $18,002,834 $17,483,472 $19,279,800 $20,539,020
Gross Margin $5,095,781 $4,531,873 $4,237,149 $4,825,211 $4,838,147
Net earnings (loss) $557,571 -$17,124 -$189,926 $581,891 $561,997
EBITDA  $2,787,441 $2,175,972 $2,073,968 $2,658,234 $2,632,729

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 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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