Bevo Agro Inc. Reports Fiscal 2011 Results

LANGLEY, BC, Sept. 19, 2011 /CNW/ - Bevo Agro Inc. (TSXV: BVO) is pleased to announce sales for the year ending June 30, 2011 totaled $18,263,703, compared to last year sales of $19,921,973, 355. Sales, gross margin and net profits for the year ended June 2010 were affected by receipt of AgriStability payments from the Federal Government. The total payments of $1,101,624 had a positive impact on sales and earnings during 2010 compared to other years.

The gross margin was $4,538,849 for the year ended June 30, 2011 compared to the gross margin last year of $5,776,336.

Poor spring weather throughout the Pacific Northwest had a negative impact on sales and gross margins of bedding plants as deliveries were delayed or canceled during the Company`s fourth quarter. Sales for the fourth quarter totaled $8,622,333 a decrease of 12% from sales of$9,792,324 in Q4 last year. The gross margin in Q4 for fiscal 2011 was $1,299,822 compared to $1,856,754 last year, a change of 19%.

Operating expenses for the year totaled $4,495,347 compared to $4,501,905 last year, mainly due to lower interest costs resulting from lower borrowing levels and reductions in long term debt.

Net earnings were $44,128 for the year ending June 30, 2011, compared to $1,055,294 for the year ending June 30, 2010 which included the $1,101,624 in AgriStability payments

Financial Summary

The year ending   June 3, '11               June 30, '10    
Sales   $18,263,703   100%   $19,921,973   100%
Cost of Sales   $13,724,854   75%   $14,145,637   71%
Gross Margin   $4,538,849   25%   $5,776,336   29%
Expenses                
Operating & administrative   $1,083,130   6%   $998,160   5%
Administrative fees, wages & benefits   $1,207,592   7%   $1,169,354   6%
Amortization   $1,462,655   8%   $1,577,246   8%
Interest expenses   $704,571   4%   $589,789   3%
Provision for bad debts   $37,399   0%   $167,356   1%
    $4,495,347   25%   $4,501,905   23%
Earnings (loss) from operations   $43,502   0%   $1,274,431   6%
Other   $0   0%   $2,759   0%
Earnings before taxes   $43,502   0%   $1,277,190   6%
Income taxes-current   $0   0%   $0   0%
Income taxes-future   -$626   0%   $221,896   1%
Net earnings (loss) for period   $44,128   0%   $1,055,294   5%
Earnings per share   $0.00       $0.04    
                 

Balance Sheet Summary & Comparison

The year ending                           June 30,  '11       June 30,  '10
ASSETS  (in $000)        
CURRENT        
  Cash                          $647   $2,342
  Accounts Receivable   $3,286   $1,962
  Inventory   $1,684   $1,604
  Income Tax Recoverable       $183
  Prepaids & Deposits   $83   $93
Total Current Assets      $5,700   $6,184
         
FIXED        
  Property, plant & equipment   $27,766   $26,522
  Deferred costs   $166   $166
  Goodwill   $523   $263
TOTAL ASSETS   $34,155   $33,135
         
LIABILITIES        
CURRENT        
  Bank Loans        
  Accounts Payable & accruals   $1,626   $1,466
  Curr.Port. Long Term Debt   $1,010   $1,158
Total Current Liabilities    $2,636   $2,624
         
Long term debt   $19,758   $18,661
Obligations under capital  leases   $55   $38
Future Income Taxes   $754   $937
    $23,203   $22,260
         
SHAREHOLDER'S  EQUITY        
  Share Capital   $4,008   $4,008
  Retained Earnings   $6,845   $6,801
  Contributed Surplus   $99   $66
TOTAL SHAREHOLDER EQUITY   $10,952   $10,875
TOTAL LIABILITIES   $34,155   $33,135
         
KEY Balance Sheet Ratios        
  Working Capital  (000$)   $3,064   $3,560
  Working Capital Ratio    2.16   2.36
  Debt/Equity   2.19   2.04

Readers are encouraged to view the Company's audited financial statements for the year ending June 30, 2011 and accompanying MD&A at www.sedar.com.

Bevo Agro is North America's leading propagator of vegetable plants including tomatoes, peppers, cucumbers as well as bedding plants, flowers and poinsettias.  In addition to being a certified organic grower, Bevo also produces cucumbers which are marketed and sold through a licensed marketing agency. Bevo's vigorous, well rooted, and healthy and pest free plants are grown under stringent controlled conditions from its 34 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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