Bevo Agro Inc. announces 2016 third quarter results

LANGLEY, BC., May 25, 2016 /CNW/ - Bevo Agro Inc. (BVO:TSXV) is pleased to report record sales and earnings for the third consecutive quarter.

Sales totaled $6,768,344 for the third quarter ending March 31, 2016, an increase of 40% compared to sales of $4,850,303 for the three months ending March 31, 2015. 

Sales for the nine months ending March 31, 2016 have increased 19% to $18,056,722, compared to sales of $15,221,099 for the same nine months last year. 

On December 15, 2015, we announced an 8 acre expansion which is needed to provide capacity for our clients. We anticipate the 8 acres will be substantially complete by the end of September.

The third quarter is typically one of Bevo's best performing quarters as propagation and flower order deliveries to customers are very high in these months.

The gross profit for the nine months totals $4,147,818 compared to the gross profit of $3,690,281 for the nine months the previous year.

Operating expenses for the three months were $1,306,405 compared to $1,314,941 in the same period last year. Interest and administrative expenses were slightly lower in the quarter.

EBITDA (Earnings before interest, taxes, depreciation and amortization) showed increases to $1,851,044 and $3,455,618 for the three and nine month periods ending March 2016 respectively, increases of 37% and 49% respectively.  EBITDA for the same periods last year were $1,351,420 for three months and $2,315,015 for the nine months.

The Company has not provided for any bad debt write offs in the third quarter, since all accounts receivable are current and collectable.

Net comprehensive income after allowance for income taxes was $883,860 ($0.04 per share) for the three months and $1,125,339 for the nine month period. During the same period last year, net income was $504,043 and $315,588 for the three and nine months.

Third Quarter highlights (versus Q3 last year)

  • 40% increase in sales
  • 75% increase in net earnings
  • EBITDA increased to $1,851,044 from $1,351,420 compared to the same quarter last year.

Year to date highlights (versus the nine months of last year)

  • 19% in increase in sales.
  • A record in sales for nine months to $18 million compared to $15 million for last year.
  • Net earnings totaled $1,125,339 ($0.04/share) for the nine month period, compared to $315,588 last year.
  • EBITDA totals $3.46 million compared to $2.3 million last year.

Readers are encouraged to view the Company's unaudited financial statements as at March 31, 2016, and accompanying MD&A at www.sedar.com.

Financial Summary

Consolidated Interim Condensed Statements of Operations and Comprehensive Income

Three Month Summary







3 months ending

 Mar 31, 2016



 Mar 31, 2015


Change

Sales

$6,768,344

100%


$4,850,303

100%

40%

Cost of Sales

$4,267,529

63%


$2,854,229

59%

50%

Gross Margin

$2,500,815

37%


$1,996,074

41%

25%








Expenses







Operating & admin

$357,929

5%


$335,129

7%

7%

Admin fees, wages

$291,842

4%


$309,525

6%

-6%

Amortization

$457,859

7%


$448,245

9%

2%

Interest expenses

$198,775

3%


$222,042

5%

-11%

Total expenses

$1,306,405

19%


$1,314,941

27%

-1%

Earnings from operations

$1,194,410

18%


$681,133

14%

75%

Income taxes-current

$0

0%


$0

0%


Income taxes-future

$310,550



$177,090


75%

Net earnings  for period

$883,860

13%


$504,043

10%

75%








EBITDA

$1,851,044

27%


$1,351,420

28%

37%

Earnings Share

$0.04



$0.02



EBITDA/Share

$0.08



$0.06

















Nine month Summary







9 months ending

 Mar 31, 2016



 Mar 31, 2015



Sales

$18,056,722

100%


$15,221,099

100%

19%

Cost of Sales

$12,735,562

71%


$11,073,281

73%

15%

Gross Margin

$5,321,160

29%


$4,147,818

27%

28%








Expenses







Operating & admin

$969,808

5%


$979,267

6%

-1%

Admin fees, wages

$895,734

5%


$921,487

6%

-3%

Amortization

$1,344,224

7%


$1,253,628

8%

7%

Interest expenses

$590,665

3%


$634,919

4%

-7%

Total expenses

$3,800,431

21%


$3,789,301

25%

0%

Earnings from operations

$1,520,729

8%


$358,517

2%

324%

Other

$0



$67,951



Earnings before taxes

$1,520,729

8%


$426,468

3%

257%

Income taxes-current

$0

0%


$0

0%


Income taxes-future

$395,390

2%


$110,880

1%

257%

Net earnings  for period

$1,125,339

6%


$315,588

2%

257%








EBITDA

$3,455,618

19%


$2,315,015

15%


Earnings per share

$0.04



$0.01



EBITDA/Share

$0.14



$0.09



 

Bevo's sales fluctuate by quarter depending on type of crop and client demands. Typically the third and fourth quarters account for a majority of sales. Bevo accounts for sales as "when goods are shipped", and believes the following 12 month trailing summary of financial performance is more indicative of financial performance. 

Bevo's trailing twelve months results are summarized below






Change

12 mths end

Mar 31/13

Mar 31/14

Mar. 31/15

Mar 31/16

2013-16

Sales

$20,539,020

$22,567,284

$26,047,687

$29,057,300

41%

Gross Margin

$4,838,147

$5,755,745

$6,376,278

$7,974,696

65%

Earnings before taxes

$144,929

$746,634

$1,198,837

$2,604,017

1697%

Net earnings for period

$561,997

$587,124

$948,757

$2,007,307

257%

EBITDA 

$2,632,729

$3,178,335

$3,720,432

$5,219,182

98%

 

Bevo Agro is North America's leading supplier of propagated agricultural plants, operating 45 acres of greenhouse facilities on 98 acres of land in Langley, BC and 20 acres of land in Pitt Meadows, BC. The Company's main products are the propagation of vegetable plants such as tomatoes, peppers, cucumbers, and other plants such as bedding plants, flowers and grasses.  The Company markets its products to established greenhouse growers, nurseries and retail outlets throughout North America.  The majority of Bevo's sales result from repeat orders through recurring multiyear contracts. 

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

RELATED LINKS
http://www.bevofarms.com

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