Bevo Agro Inc. reports fiscal 2015 financial results

LANGLEY, BC, Oct. 15, 2015 /CNW/ - Bevo Agro Inc. (TSXV: BVO) is pleased to announce operating and financial results for both the fourth quarter and fiscal year ending June 30, 2015.

Fourth Quarter Highlights (versus Q4 - 2014)

  • Net earnings of $881,968 compared to $633,169, a 39% increase.
  • Earnings per share of $0.03 compared to $0.02.
  • EBITDA of $1,763,564 compared to $1,405,417, an increase of 25%.

Fiscal 2015 Highlights (versus Fiscal 2014)

  • Net earnings $1,197,556 compared to $738,745, a 62% increase, excluding land revaluation
  • Earnings per share of $0.05 compared to $0.03.
  • EBITDA of $4,078,579 compared to $3,359,710, an increase of 21%.
  • Net Book Value per share of $0.67 compared to $0.62 at fiscal year end 2014.

Bevo Agro Inc. (TSXV: BVO) reports sales for the year ending June 30, 2015 totaled $26,221,677, an increase of 12.5%  over sales of $23,309,085 for the year ended June 30, 2014.   Sales for the fourth quarter rose by 2% to $11,000,578 from $10,826,588 in Q4 last year.  Approximately 90% of Bevo's sales result from repeat orders through recurring multiyear contracts.     

The gross profit increased by 15% to $6,801,354 (26% of sales) for the year ending June 30, 2015 compared to $5,918,741 (25%) for fiscal 2014.  The gross profit for Q4 of fiscal 2015 was $2,653,536 (24%) compared to $2,228,460 (21%) for the same quarter last year, an increase of 19% for the period.

A combination of streamlining, growing efficiencies and product mix had positive effects on gross margins and profits.

Earnings before interest, taxes, depreciation and amortization (EDITDA) increased by 21% to $4,078,579 ($0.16 per share) for fiscal 2015 compared to EBITDA of $3,359,710 ($0.13/share) for the previous year ending June 30, 2014.   EBITDA for Q4 of fiscal 2015 was $1,763,564, a 25% improvement in EBITDA compared to $1,405,417 for the same quarter last year.

General operating expenses totaled $1,570,248 for the fourth quarter compared to $1,456,091 from the same quarter last year.  Approximately $50,000 of the increase was amortization, a non-cash expense.  General operating expenses totaled $5,359,549 for the twelve months ending June 30, 2015, a 7% increase over the previous year.   $137,582 of the increase was amortization, with the balance comprising operating and employment related items. As a percentage, these expenses were lower than the previous year.

Net earnings for the year ending June 30, 2015 increased by 62% to $1,197,556 (5% of sales) compared to the previous year earnings of $738,745 (3% of sales), excluding $742,500 which was a gain on revaluation of the Company land which is revalued every three years using external valuation methods. This revaluation surplus is credited to "revaluation surplus" in equity.

Net Earnings for the fourth quarter totaled $881,968, an increase of 39% from the $633,169 in Q4 net earnings 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 audited financial statements at June 30, 2015, and accompanying MD&A at www.sedar.com.

Summary- Consolidated Condensed Statements of Operations and Comprehensive Income


3 months ending

June 30. 2015



June 30. 2014


Sales

$11,000,578

100%


$10,826,588

100%

Cost of Sales

$8,347,042

76%


$8,598,128

79%

Gross Margin

$2,653,536

24%


$2,228,460

21%







Expenses






General Operating

$384,667

4%


$360,462

3%

Employee Wages & Benefits

$453,987

4%


$462,581

4%

Amortization

$459,381

4%


$409,002

4%

Interest expenses

$220,895

2%


$224,046

2%


$1,570,248

14%


$1,456,091

13%

Earnings from operations

$1,083,288

10%


$772,369

7%

Income taxes-current

$0

0%


$0


Income taxes-future

$201,320

2%


$139,200


Net earnings  for period

$881,968

8%


$633,169

6%







EBITDA

$1,763,564

16%


$1,405,417

13%

Shares o/s

25,535,933



25,535,933


EPS

$0.03



$0.02


EBITDA/share

$0.07



$0.06




















Year ending

June 30. 2015



    June 30. 2014


Sales

$26,221,677

100%


$23,309,085

100%

Cost of Sales

$19,420,323

74%


$17,390,344

75%

Gross Margin

$6,801,354

26%


$5,918,741

25%

Expenses






General Operating

$1,365,615

5%


$1,251,056

5%

Employee Wages & Benefits

$1,425,111

5%


$1,327,364

6%

Amortization

$1,713,009

7%


$1,575,427

7%

Interest expenses

$855,814

3%


$861,038

4%


$5,359,549

20%


$5,014,885

22%

Earnings from operations

$1,441,805

5%


$903,856

4%

Other

$67,951

0%


$19,389

0%

Earnings before taxes

$1,509,756

6%


$923,245

4%

Income taxes-current

$0

0%


$0

0%

Income taxes-future

$312,200

1%


$184,500

1%

Net earnings for period

$1,197,556

5%


$738,745

3%







EBITDA 

$4,078,579

16%


$3,359,710

14%

Shares o/s

25,535,933



25,535,933


EPS

$0.05



$0.03


EBITDA/share

$0.16



$0.13


Bevo's year over year comparative results are summarized below


For the 12 months ending

June 30. '12

June 30. '13

June 30. '14

June 30. '15

Sales

$18,897,742

$20,587,204

$23,309,085

$26,221,677

Gross Margin

$4,757,872

$5,083,066

$5,918,741

$6,801,354

Net basic earnings

$571,781

$184,533

$738,745

$1,197,556

EBITDA

$2,605,826

$2,629,701

$3,359,710

$4,078,579

Shares o/s

25,535,933

25,535,933

25,535,933

25,535,933

Earnings per share

$0.02

$0.01

$0.03

$0.05

EBITDA/share

$0.10

$0.10

$0.13

$0.16






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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