Bevo Agro Inc. reports fiscal 2009 results

LANGLEY, BC, Sept. 29 /CNW/ - Bevo Agro Inc. (BVO: TSX-Ven.) is pleased to announce that net earnings were $767,907 for the year ending June 30, 2009, an improvement of $1,411,488 from the $643,581 loss for the twelve months ended June 30, 2008.

Sales for the most recent year totaled $17,876,355, compared to $19,763,458 for the year ended June 30, 2008. The reduction in sales was anticipated as the company concentrated on the elimination of less profitable products to improve margins and profitability. This strategic process should result in increasing sales in future years coupled with improving profits and margins. As noted in the trailing twelve month analysis, the sales have been trending lower since 2007. For the year ending June 30, 2009, net earnings have returned to the positive at $0.03 per share and EBITDA (Earnings before interest, taxes, depreciation and amortization) has made a recovery.

The gross margin improved to 30% of sales vs. 28% last year as company implemented efficiencies were achieved in all areas.

Operating expenses totaled $5,020,929 a reduction of $1,888,087 from the $6,909,106 of expenses last year, as savings were recorded in operating and administrative costs, wages and interest. In addition the allowance for bad debts was $185,513 vs. last year when a $629,892 allowance was made for a mortgage receivable.

The Balance Sheet has improved as the Company reduced long term debt by $3.565 million and total debt by $4.341 million in the 12 months ended June 30, 2009.

    
    Financial Summary

    For the Years Ending              June 30, 2009      June 30, 2008
    --------------------              --------------     --------------
    Sales                               $17,876,355  100%  $19,763,458  100%
    Cost of Sales                       $12,592,588   70%  $14,310,967   72%
    Gross Margin                         $5,283,767   30%   $5,452,491   28%
                                        -----------------  -----------------
    Expenses
    Operating & administrative           $1,137,136    6%   $1,433,495    7%
    Administrative fees, wages &
     benefits                            $1,059,496    6%   $1,143,705    6%
    Amortization                         $1,629,934    9%   $1,743,009    9%
    Interest                             $1,008,850    6%   $1,968,848   10%
    Bad debts (recovery)                   $185,513    1%      ($9,933)   0%
    Impairment of mortgage receivable                         $629,892    3%
                                         $5,020,929   28%   $6,909,016   35%
                                        -----------------  -----------------
    Earnings (loss) from operations        $262,838    1%  ($1,456,525)  -7%
    Other                                        $0             $6,529    0%
    Earnings before taxes                  $262,838    1%  ($1,449,996)  -7%
                                        -----------------  -----------------
    Income taxes-current                         $0                 $0
    Income taxes-future                   ($505,069)         ($806,415)
    Net earnings (loss) for period         $767,907    4%    ($643,581)  -3%
                                        -----------------  -----------------

    Earnings per Share                        $0.03             ($0.03)



    Balance Sheet Summary
    ---------------------
                 in 000$               June 30, '09       June 30, '08
                                       -------------      -------------
    ASSETS
    Total Current Assets                     $4,585             $6,483

    Restricted cash                                             $1,000
    Long Lived assets                       $26,791            $27,858
    Other Assets                               $530               $537
    Intangible & Deferred Assets               $368               $474
                                               -----              -----
    TOTAL ASSETS                            $32,274            $36,352
                                            --------           --------
                                            --------           --------
    LIABILITIES

    Total Current Liabilities                $2,019             $3,884
    LONG TERM DEBT                          $19,677            $22,022
      Other Debt (leases)                       $43               $174
    Total Debt                              $21,739            $26,080
      Future Income Taxes                      $715             $1,220
    TOTAL SHAREHOLDER EQUITY                 $9,820             $9,052
                                             -------            -------
    TOTAL LIABILITIES                       $32,274            $36,352
                                            --------           --------
                                            --------           --------



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

    12 months
    ---------
    ending     June 30, '07 Dec 31, '07 June 30, '08 Dec 31, '08 June 30, '09
    ------     ------------ ----------- ------------ ----------- ------------
    Sales       $19,795,142 $19,152,369  $19,763,458 $18,490,692  $17,876,355
    Gross
     Margin      $6,572,922  $5,820,188   $5,452,491  $4,954,578   $5,283,767
    Net
     earnings
     (loss)
     for
     period       ($279,606)  ($492,585)   ($650,943)  ($700,310)    $767,907
    EBITDA       $3,434,972  $3,000,442   $2,254,499  $1,991,769   $2,901,622
    

Bevo Agro is North America's leading propagator of vegetable plants including tomatoes, peppers, cucumbers as well as bedding plants, flowers and poinsettias. In addition to being a certified organic grower, Bevo also produces cucumbers which are marketed and sold through a licensed marketing agency. Bevo's vigorous, well rooted, healthy and pest free plants are grown under stringent controlled conditions 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.
    

SOURCE Bevo Agro Inc.

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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