SYMBOL: TSX: AGT
REGINA, Aug. 16 /CNW/ - Alliance Grain Traders Inc. (TSX: AGT) ("AGTI") has announced its financial results for the three and six months ended June 30, 2010. Highlights include:
- Adjusted EBITDA* for the quarter of $4.7 million compared to
$5.1 million for the second quarter of 2009.
- Adjusted Net Income* for the quarter of $2.4 million ($0.13 per
common share and on a diluted basis) compared to $3.04 million
($0.38 per common share/unit or unit equivalent or $0.37 on a diluted
basis) for the second quarter of 2009.
- Sales for the quarter increased by approximately 104% to
$149.2 million compared to sales of $73 million for the second quarter
Net loss for the quarter was $4.2 million, however when considering the non-cash foreign exchange effect, Adjusted Net Income* for the quarter was $2.4 million.
"A number of factors affected our ability to execute our strategy during the quarter. Sales margins trended lower than the previous quarter principally because of buyers continuing to defer their purchases longer than we expected. We also saw a diminishing supply of old crop product on farm. This, coupled with heavy rainfall resulting in producers being unable to deliver the available product, meant less product moved in and out of our facilities. However, the trends toward normalization of production in Turkey and the projected acres in North America are important factors going forward. International buyers are waiting for new crop product for shipment later in the year and they cannot put off their purchases very long after the start of the harvest season. We expect this to be realized in the coming quarters as buyers begin securing their supply and products are moving again", said Murad Al-Katib, President and CEO of AGTI.
"Our strategies, with regard to diversification of origin and shipment, continue to be the key components that drive our business. International in-country stocks are low and with the positive demand fundamentals for pulses and staple foods, we see opportunities to execute on our sales plans. Simply put, the demand must be filled and local market stocks need to be replenished. Capacity in our facilities around the globe is ready, especially with the additions and expansions in North America and Australia. We feel we are well positioned to capitalize on the opportunities that we expect will be created by the significant upcoming production levels for pulses in all origins later in the year and into 2011", added Huseyin Arslan, Executive Chairman of the Board of Directors of AGTI.
The unaudited interim financial statements and management's discussion and analysis for the three and six months ended June 30, 2010 are available under the Company's profile on www.sedar.com and have been posted on the Company's web site at www.alliancegrain.com. All amounts are reported in Canadian dollars.
Alliance Grain Traders invites you to join our Second Quarter 2010 conference call on Monday, August 16, 2010 at 1:00 p.m. Eastern time. To join the conference, please dial 1-800-319-4610 (Canada & USA) or +1-604-638-5340 (Outside Canada & USA).
A recording of the call will be available on our website at www.alliancegrain.com on August 19, 2010. A telephone replay will also be available until midnight Eastern time, Monday, August 30, 2010. To access the replay, please call 1-800-319-6413 (from Canada & USA, Toll Free) or +1-604-638-9010 (from outside Canada & USA). When prompted, enter the code 4537, followed by the number sign.
Alliance Grain Traders Inc. Profile
Alliance Grain Traders Inc. is a pulse processor and exporter engaged in the business of value-added processing (cleaning, splitting, sorting and bagging) of pulses and specialty crops, for export and domestic markets. Through its processing facilities located in some of the best pulse growing regions in Canada, the U.S., Turkey and Australia, AGTI handles a full range of pulses and specialty crops including lentils, peas, chickpeas, beans and canary seed. Through its subsidiaries in Turkey, the Arbel Group, AGTI also produces Arbella Pasta, rice, and milled wheat products, such as bulgur and semolina.
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 AGTI 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 AGTI (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 AGTI dated March 30, 2010 which is available on SEDAR at www.sedar.com, and which should be reviewed in conjunction with this document. Although AGTI 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. AGTI 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-GAAP Financial Measures
* AGTI provides some non-GAAP measures as supplementary information that management believes may be useful to investors to explain AGTI's financial results. These non-GAAP measures include EBITDA* (earnings before interest, income taxes, depreciation and amortization), Adjusted EBITDA* (earnings before interest, income taxes, depreciation and amortization and any effects of non-cash foreign exchange adjustment) and Adjusted Net Income*. Management believes that these are important measures in evaluating performance and in determining whether to invest in AGTI. However, EBITDA*, Adjusted EBITDA* and Adjusted Net Income* are not recognized measures under GAAP and do not have standardized meanings prescribed by GAAP. In addition, AGTI may calculate these measures differently than other companies; therefore they may not be comparable. Investors are cautioned that EBITDA*, Adjusted EBITDA* and Adjusted Net Income* should not be construed as an alternative to net income or loss or cash flows as determined in accordance with GAAP as an indicator of AGTI's performance or to cash flows. For a reconciliation of net income determined in accordance with GAAP to EBITDA*, Adjusted EBITDA* and Adjusted Net Income*, see the table on page 19 in the management's discussion and analysis for the three months and six months ended June 30, 2010 available under AGTI's profile on www.sedar.com.
SOURCE AGT Food and Ingredients Inc.
For further information: For further information: Omer Al-Katib, Investor Relations, (306) 244-1318, email@example.com