Bevo Agro Inc. announces second quarter results.



    LANGLEY, BC, Feb. 28 /CNW/ - Bevo Agro Inc. (BVO:TSX-Ven.) reports sales
of $4,706,799 for the second quarter ending December 31, 2007 compared to
$4,114,276 for the quarter ending December 31, 2006. Because of lower than
normal sales in Q1, sales for the six months ending December 31, 2007 totaled
$6,345,012 compared to $6,987,785 last year.
    The gross margin was 38% in the second quarter and 30% year to date,
compared to 42% in the second quarter and 38% for the six months last year.
Margins can be influenced by factors such as size and type of plant.
    Expenses continued a declining trend as noted in Q1 with all expenses
lower on a comparative basis. In fiscal 2007, the Company instituted a policy
of reserving for doubtful accounts. During the six months ending December 31,
2006 the Company reserved $150,000 in the second quarter and $332,353 for the
six month period. The Company continues to maintain an adequate reserve for
doubtful accounts.
    The Company generated net earnings of $187,405 for the three months ended
December 31, 2007, compared to a net loss of $35,491 for the three months
ending December 31, 2006. The net loss for the six months ending December 31,
2007 was $656,390 compared to a net loss of $443,411 last year.
    On February 15th, the Company announced that it had completed a
refinancing which included a payout of the Banyan Capital Partners debenture
in the principal sum of $5,000,000.

    
    Financial Summary

    For the                         3 months                3 months
    ending                      Dec 31, 2007            Dec 31, 2006
    ------                      ------------            ------------
    Sales                         $4,706,799     100%     $4,114,276     100%
    Cost of Sales                 $2,899,256      62%     $2,382,682      58%
                                ---------------------------------------------
    Gross Margin                  $1,807,543      38%     $1,731,594      42%

    Expenses
    Operating & admin.              $407,377       9%       $426,907      10%
    Admin. fees, wages &
     benefits                       $296,330       6%       $332,913       8%
    Amortization                    $376,465       8%       $440,757      11%
    Interest expenses               $405,284       9%       $416,508      10%
    Bad debt provision               $46,482       1%       $150,000       4%
                                ---------------------------------------------
                                  $1,531,938      33%     $1,767,085      43%
    Earnings (loss) from
     operations                     $275,605       6%       ($35,491)     -1%
    Other

                                ---------------------------------------------
    Earnings before taxes           $275,605                ($35,491)
    Income taxes-current                  $0                      $0
    Income taxes-future              $88,200                      $0
                                ---------------------------------------------
    Net earnings (loss)
     for period                     $187,405       6%       ($35,491)     -1%

    EBITDA                        $1,057,354      22%       $821,774      20%


    For the                         6 months                6 months
    ending                      Dec 31, 2007            Dec 31, 2006
    ------                      ------------            ------------
    Sales                         $6,345,012     100%     $6,987,785     100%
    Cost of Sales                 $4,434,860      70%     $4,324,899      62%
                                ---------------------------------------------
    Gross Margin                  $1,910,152      30%     $2,662,886      38%

    Expenses
    Operating & admin.              $690,413      11%       $705,640      10%
    Admin. fees, wages &
     benefits                       $563,637       9%       $599,575       9%
    Amortization                    $763,507      12%       $896,954      13%
    Interest expenses               $804,021      13%       $827,729      12%
    Bad debt provision               $53,844       1%       $332,353       5%
                                ---------------------------------------------
                                  $2,875,422      45%     $3,362,251      48%
    Earnings (loss) from
     operations                    ($965,270)    -15%      ($699,365)    -10%
    Other                                 $0                 $11,470
                                ---------------------------------------------
    Earnings before taxes          ($965,270)              ($687,895)
    Income taxes-current                  $0                      $0
    Income taxes-future            ($308,880)              ($244,484)
                                ---------------------------------------------
    Net earnings (loss)
     for period                    ($656,390)              ($443,411)

    EBITDA                          $602,258       9%     $1,036,788      15%


    Bevo Agro's trailing twelve months comparative results are summarized
below:

                              June 30,      Dec 31,     June 30,      Dec 31,
    Twelve months ending         2006         2006         2007         2007
    --------------------  ------------ ------------ ------------ ------------
    Sales                 $22,036,072  $20,705,370  $19,795,142  $19,152,369
    Gross Margin           $7,031,258   $6,756,680   $6,572,922   $5,820,188
    Net earnings (loss)
     for period              $805,129     $507,665    ($279,606)   ($492,585)
    EBITDA                 $4,412,000   $3,840,451   $3,434,972   $3,000,442
    

    Bevo Agro is North America's leading supplier of propagated agricultural
plants, growing and distributing vegetable, flower, berry and other plant
seedlings to North America's growers. Bevo propagates quality seedlings and
plants primarily for wholesale vegetable greenhouse growers, field growers and
nursery operators from its 34 acre production facility.

    The TSX Venture Exchange has not reviewed and does not accept
    responsibility for the adequacy or the accuracy of this news release.





For further information:

For further information: Jack Benne, President, Bevo Agro Inc., Phone:
(604) 888-0420, Fax: (604) 888-8048, Email: jackbenne@bevofarms.com


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