SYMBOL: TSX: AGT
REGINA, March 27, 2012 /CNW/ - Alliance Grain Traders Inc. ("AGT") has
announced its financial results for the three and twelve months ended
December 31, 2011.
Results for 2011 include:
Sales of $760.0 million for 2011, compared to sales of $642.1 million
EBITDA* of $47.6 million for 2011, compared to $37.3 million for 2010.
Adjusted net earnings* of $22.5 million for 2011, compared to $20.4
million for 2010. This translated into $1.14 per common share or $1.13
on a diluted basis for 2011, compared to $1.08 per common share or
$1.06 on a diluted basis for 2010.
Results for the three months ended December 31, 2011 include:
Sales of $231.5 million, compared to sales of $190.6 million for Q3 2011
and $169.0 million for Q4 2010.
EBITDA* of $9.2 million, compared to $15.03 million for Q3 2011 and $7.4
million for Q4 2010.
Adjusted net earnings* of $0.874 million ($0.04 per common share, basic
and diluted basis), compared to $10.5 million ($0.53 per common share,
basic and diluted basis) for Q3 2011 and $1.4 million ($0.05 per common
share, basic and diluted basis) for Q4 2010.
"The global credit crisis, economic downturn and political unrest have
certainly affected all sectors in 2011, even staple foods like pulses,
pasta and rice. Tighter credit availability and the diminished
liquidity of our global client base have affected our sales program
temporarily as "hand-to-mouth" buying has continued. We are, however,
optimistic that a return to more robust demand will come in 2012 as
customers seek to replenish what we estimate to be low or depleted
local market stocks. Our products are staple foods and we believe that
the magnitude and duration of the effects of the economic environment
in Europe and emerging markets will be shorter and less severe on our
sector as compared to more discretionary goods," said Mr. Murad
Al-Katib, President and CEO of AGT. "Market indicators continue to show
that customers want staple foods and protein. Crop supply in all of
AGT's origins is available to meet this demand," added Mr. Al-Katib.
"Demand for staple food products, such as those that AGT produces, does
not appear to have seen any permanent or fundamental shift as there is
no obvious substitution for these products. The demand profile in
traditional consuming nations is intact and the market for healthy,
gluten-free and non-GMO proteins, fibres and starches is also growing
in North America and Europe," added Mr. Huseyin Arslan, Executive
Chairman of the Board of Directors of AGT. "As our business returns to
normalized volumes, we will continue to diversify and move up the
value-chain in the staple foods area including branded pasta, food
ingredients, beans, chickpeas and pulse food products. Our more recent
investments across five continents are expected to assist in smoothing
our business and insulating us from these types of global conditions,
solidifying our strategy, our asset locations and our overall business.
We are confident this is the correct path for AGT now and in the
As previously announced, the revolving period for the senior secured
credit facility obtained through AGT's wholly-owned Canadian subsidiary
Alliance Pulse Processors Inc. has been extended to April 29, 2013.
This facility also carries a one year extension term-out period that
extends to April 29, 2014 at the option of Alliance Pulse Processors.
AGT also announced a cash dividend for the quarter ending March 31, 2012
of $0.15 per common share. The dividend will be payable on April 11,
2012 to shareholders of record on April 5, 2012. This dividend is an
eligible dividend for Canadian income tax purposes. AGT's current
annualized cash dividend rate is approximately $0.60 per common share.
The financial statements and notes for the three and twelve months ended
December 31, 2011, 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 the AGT web site at www.alliancegrain.com. All amounts are reported in Canadian dollars. Quarterly results are
reported based on International Financial Reporting Standards ("IFRS").
The policies have been consistently applied to all periods noted in
this news release and all prior period information has been restated or
reclassified for comparative purposes unless otherwise noted. Further
details on the transition to IFRS are provided in the notes to our
interim consolidated financial statements for the three and twelve
months ended December 31, 2011.
AGT invites you to join our fourth quarter and year end 2011 conference
call on Tuesday, March 27, 2012 at 10:30 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 on our website at www.alliancegrain.com on March 28, 2012. A telephone replay will also be available until
midnight Eastern time, Tuesday, April 10, 2012. 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 (#).
Alliance Grain Traders Inc. Profile
Alliance Grain Traders Inc. (AGT) is a value-added pulse, staple food
and ingredient processor for export and domestic markets. 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 and merchandising and sales offices in the
U.K., the Netherlands and Spain, 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.
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 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, 2012 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 EBITDA* (earnings
before interest, income taxes, depreciation and amortization, and any
effects of non-recurring costs and non-cash foreign exchange
adjustment), Adjusted Net Earnings* (earnings before any effects of
non-recurring costs and non-cash 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). Management believes that these are important measures in
evaluating performance and in determining whether to invest in AGT.
However, EBITDA*, Adjusted Net Earnings*, Net Debt* and Net Working
Capital* are not recognized measures under IFRS and do not have
standardized meanings prescribed by IFRS. In addition, AGT may
calculate these measures differently than other companies; therefore,
such measures may not be comparable. Investors are cautioned that
EBITDA*, Adjusted Net Earnings*, Net Debt* and Net Working Capital*
should not be construed as an alternative to net earnings (loss) or
cash flows as determined in accordance with IFRS as an indicator of
AGT's performance or liquidity. For a reconciliation of net earnings
(loss) determined in accordance with IFRS to EBITDA* and Adjusted Net
Earnings*, see the table on page 38 in the management's discussion and
analysis for the three and twelve months ended December 31, 2011
available under AGT's profile on www.sedar.com and on the AGT web site
SOURCE Alliance Grain Traders Inc.
For further information:
Omer Al-Katib, Investor Relations