AGT Food and Ingredients Inc. Announces Second Quarter 2015 Results and Dividend

SYMBOL: TSX: AGT

REGINA, Aug. 11, 2015 /CNW/ - AGT Food and Ingredients Inc. (TSX:AGT) ("AGT" or the "Company") has announced its financial results for the three and six months ended June 30, 2015. 

Results include:  

  • Adjusted EBITDA* was $22.2 million for the three months ended June 30, 2015 compared to $24.4 million for the three months ended June 30, 2014, and compared to $22.6 million for the three months ended March 31, 2015.
  • Adjusted EBITDA* was $90.3 million for the trailing twelve months ended June 30, 2015 compared to $74.1 million for the trailing twelve months ended June 30, 2014, an increase of 22%.
  • Adjusted earnings per share* increased to $0.45 ($0.44 fully diluted) for the three months ended June 30, 2015 compared to $0.44 ($0.43 fully diluted) for the three months ended June 30, 2014.
  • Cash flow from operating activities increased to $44.2 million for the three months ended June 30, 2015 compared to a decrease of $12.1 million for the three months ended March 31, 2015 and compared to an increase of $38.9 million for the three months ended June 30, 2014.
  • Food ingredients and packaged foods segment represented 21.5% of total tonnes invoiced and 38.5% of Adjusted EBITDA* for the three months ended June 30, 2015 compared to 14.0% of total tonnes invoiced and 25.8% of Adjusted EBITDA* for the three months ended June 30, 2014.
  • Dividend of $0.15 per share for the quarter ($0.60 per share on an annualized basis).

"This has been a good and consistent quarter for AGT. With what appears to be the return to more seasonal buying and the quarter two period reset in global pulses markets, we are pleased with how both our legacy and food ingredient and packaged foods segments are performing overall. There were limited carry-in stocks for the period, but buyers were purchasing at relatively higher margins to supply markets until the fall harvest in North America, where we are expecting significant production volumes for pulses. Harvest is underway in Canada and the U.S. and we believe the expected production levels will fuel and supply import demand in our key markets. These are positive trends in our legacy business, particularly in the traditional shipping periods ahead. Our food ingredient and packaged foods segment continues to make gains, with increased volumes, margins, earnings and percentage of AGT's sales overall. Customers are continuing to embrace our pulse ingredients and we feel this trend will advance this segment to the forefront of AGT's business, where we believe it can really show how strong these investments have been. We believe that AGT is well positioned to build off of our solid and consistent sales and earnings foundation in the future periods," said Mr. Murad Al-Katib, President and CEO of AGT.

"Our results from this quarter show that we are continuing to build from our strengths, particularly our facility, origination, logistics and processing strength, our global merchandising and management ability and our diversified product offering in both segments. These are major components that make AGT strong in all markets we are in and we are creating opportunities through our key investments in both segments. We will continue with these strategies to increase shareholder value and expand our business overall," said Mr. Huseyin Arslan, Executive Chairman of AGT's Board of Directors. 

The financial statements and notes thereto for the three and six months ended June 30, 2015, 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 AGT's website at www.agtfoods.com. All amounts are reported in Canadian dollars.

AGT is also pleased to announce a cash dividend for the quarter ending September 30, 2015 of $0.15 per common share. The dividend will be payable on October 8, 2015 to shareholders of record on September 30, 2015. 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 Second Quarter 2015 conference call on Wednesday, August 12, 2015 at 11:00 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.agtfoods.com on Thursday, August 13, 2015.  A telephone replay will also be available until midnight Eastern time, Sunday, September 13, 2015.  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 (#).

AGT Food and Ingredients Inc. Profile                        
AGT Food and Ingredients Inc. (AGT) is a processor of value-added pulses, staple foods and ingredients for export and domestic markets as well as a supplier of retail packaged and canned foods to retail and food service sectors. 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, Switzerland 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. In particular, this press release contains forward-looking statements with respect to, among other things, production volumes for pulses, import demand, strategies, the payment of the referenced dividend and AGT's growth opportunities. 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 March 27, 2015 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 Adjusted Gross Profit* (gross profit plus depreciation in cost of sales and finance income), Adjusted EBITDA* (earnings before finance expense, income taxes, depreciation and amortization, restructuring costs and any effects of non-cash, non-recurring and other costs and foreign exchange adjustment), Adjusted Net Earnings* and Adjusted Net Earnings Per Share* (earnings before any effects of non-cash, 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). Adjusted Net Earnings* and Adjusted Net Earnings Per Share* do not include the tax effect of non-cash, non-recurring and other costs and foreign exchange. Management believes that Adjusted EBITDA*, Adjusted Net Earnings* and Adjusted Net Earnings Per Share*, Net Debt* and Net Working Capital* are important indicators of AGT's ability to generate liquidity through operating cash flow to fund future working capital needs, service outstanding debt and fund future capital expenditures and uses the metric for this purpose. The exclusion of non-cash and foreign exchange adjustments eliminates the non-cash impact on Adjusted EBITDA*, Adjusted Net Earnings* and Adjusted Net Earnings Per Share*. Adjusted EBITDA* and Adjusted Net Earnings*, Adjusted Net Earnings Per Share*, Net Debt* and Net Working Capital* are also used by investors and analysts for the purpose of valuing AGT. The intent of these measures is to provide additional useful information to investors and analysts and the measure does not have any standardized meaning under IFRS. Adjusted Gross Profit*, Adjusted EBITDA* and Adjusted Net Earnings*, Adjusted Net Earnings Per Share*, Net Debt* and Net Working Capital* should therefore not be considered in isolation or used as a substitute for measures of performance prepared in accordance with IFRS. For a reconciliation of Adjusted EBITDA* to EBITDA (earnings before finance expense, income taxes, depreciation and amortization) and of net earnings (loss) determined in accordance with IFRS to Adjusted EBITDA*, Adjusted Net Earnings* and Adjusted Net Earnings Per Share*, see the table on page 41 in the related management's discussion and analysis for the three and six months ended June 30, 2015.

SOURCE AGT Food and Ingredients Inc.

For further information: Investor Relations, Omer Al-Katib, (306) 244-1318, ir@agtfoods.com

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