Bevo Agro Inc. Announces Record First Quarter Results

LANGLEY, BC, Nov. 26, 2015 /CNW/ - Bevo Agro Inc. (TSXV: BVO) achieved  record operating and financial results for the first quarter ending September 30, 2015.

First Quarter Highlights (versus Q1 last year)

  •   Record sales of $4,511,667 an  increase of 14% over sales of $3,948,405 in Q1 last year.
  •   A 30% improvement in Gross Margin.
  •   The Q1 net loss was reduced to $123,469 from a $201,321 loss last year.
  •   A 46% improvement in EBITDA for Q1 to $468,523.

Rolling Year over Year Highlights (September 30, 2015 versus September 30, 2014)

  • Trailing 12 months sales increased 7% to $26,784,939 for the 12 months ending September 30, 2015.
  • Net earnings increased 21% to $1,275,408 for the12 months.
  • EBITDA increased 10% to $4,226,249.

Sales for the 3 months ending September 30, 2015 achieved an all time company record for the first quarter. While sales in Q1are typically low, increased customer orders resulted in a 14% increase in first quarter sales to the record $4,511,667.

The gross profit increased by 30% to $1,110,570 (25% of sales) for the three period ending September 30, 2015 compared to the gross profit of $855,763 (22% of sales) for the same quarter last year. 

Earnings before interest, taxes, depreciation and amortization (EDITDA) increased by 46% to $468,523 for the period compared to EBITDA of $320,853 for the same period last year.  

General operating expenses for the first quarter ending September 30, 2015 were $1,277,419 (28.3% of sales) compared to $1,195,775 (30.3% of sales) for the same three months last year.  

The net loss for the three months was $123,469, a reduction from a loss of $201,321in the first quarter last year.

Bevo Agro maintains a balance of fixed and floating rates on borrowings as a hedge against interest rate fluctuations.  From a balance sheet perspective, the Company maintains sufficient working capital to manage its business and maintain conservative financial ratios.

Readers are encouraged to view the Company's financial statements for the first quarter ending September 30, 2015 and accompanying MD&A at www.sedar.com.

Summary- Consolidated Condensed Statements of Operations and Comprehensive Income

For the three months ending

Sept. 30, 2015



Sept. 30, 2014


Change

Sales

$4,511,667

100%


$3,948,405

100%

14%

Cost of Sales

$3,401,097

75%


$3,092,642

78.3%

10%

Gross Margin

$1,110,570

24.6%


$855,763

21.7%

30%








Expenses







Operating & administrative

$332,837

7.4%


$298,338

7.6%

12%

Admin fees, wages & benefits

$309,210

6.9%


$304,523

7.7%

1.5%

Amortization

$438,971

9.7%


$389,883

9.9%

13%

Interest expenses

$196,401

4.4%


$203,031

5.1%

-3.3%

Total

$1,277,419

28.3%


$1,195,775

30.3%

6.8%

Earnings (loss) from operations

($166,849)

-3.7%


($340,012)

-8.6%


Other




$67,951



Earnings before taxes

($166,849)

-3.7%


($272,061)

-6.9%


Income taxes-future

($43,380)

-1.0%


($70,740)

-1.8%


Net earnings (loss) for period

($123,469)

-2.7%


($201,321)

-5.1%









EBITDA

$468,523

10%


$320,853

8%

46%

 

Bevo Agro accounts for revenue on a "when goods are shipped" basis. The first quarter shipments are typically smaller volumes.  The following is a 12 month trailing summary of financial performance.







12 months ended

       Sept. 2013

   Mar. 2014

    Sept.2014

     Mar.2015

      Sept. 2015

Sales

$20,654,497

$22,567,284

$25,107,314

$26,047,687

$26,784,939

Gross Margin

$5,103,183

$5,755,745

$6,433,695

$6,376,278

$7,056,161

Net earnings

$197,667

$587,124

$1,051,085

$948,757

$1,275,408

EBITDA 

$2,641,111

$3,178,335

$3,832,196

$3,720,432

$4,226,249

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. 

Bevo has achieved a ranking in the 2015 TSX Venture 50® which recognizes the strongest companies on TSXV by share price, trading volume, market capitalization and analyst coverage. The winning companies have seen impressive growth over the past year, offered strong return to their shareholders and are actively traded in the market.

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.bevoagro.com

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