Bevo Agro Inc. Reports Second Quarter Results for Fiscal 2015

LANGLEY, BC, Feb. 25, 2015 /CNW/ - Bevo Agro Inc. (BVO:TSXV) reports record sales of $6,422,391 for the second quarter ending December 31, 2014, an increase of 23% over the same period last year when sales of $5,206,237 were reported.

Sales for the six months ending December 31, 2014 totaled $10,370,796, compared to sales of $7,356,413 for the same period the year earlier, an increase of 41%. The three month and six month figures represent all-time record high sales for both periods.

The gross profit for the six months ending December 31, 2014 totals $2,151,744 an increase of 18.6% when compared to gross profits of $1,814,921 for the six months in the previous year.

Expenses for the six months were $2,474,360 (24% of sales) compared $2,315,192 (31% of sales) for the same six months last year. While expenses increased slightly in dollars, the expense to sales ratio declined to 24% compared to 31% last year.

The company has not provided for any bad debt write offs in the second quarter, since accounts receivable which are reviewed monthly, are current and collectable.

The net loss for the six months ended December 31, 2014 was $188,455 compared to a loss of $336,042 for the same period last year. EBITDA (Earnings before income taxes, depreciation and amortization) for the six months increased by 37%, to $963,595 from $704,107 in the same six month period last year.

It should be noted that the company's business is somewhat cyclical with the majority of sales and profits occurring in the second half of the fiscal year.

Readers are encouraged to view the Company's unaudited financial statements as at December 31, 2014, and accompanying MD&A at www.sedar.com.

Financial Summary

Consolidated Interim Condensed Statements of Operations and Comprehensive Income (Loss)

For the three months ending

      Dec 31, 2014


       Dec 31, 2013


Change

Sales

$6,422,391

100%

$5,206,237

100%

23%

Cost of Sales

$5,126,410

80%

$3,732,125

72%

37%

Gross Margin

$1,295,981

20%

$1,474,112

28%

-12%







Expenses






Operating & administrative

$345,800

5%

$337,996

6%


Admin. fees, wages & benefits

$307,439

5%

$283,749

5%


Amortization

$415,500

6%

$388,412

7%


Interest expenses

$209,846

3%

$214,409

4%


Total expenses

$1,278,585

20%

$1,224,566

24%

4.%

Earnings (loss) from operations

$17,396

0%

$249,546

5%

-93%

Other



$3,373



Earnings before taxes

$17,396

0%

$252,919

5%


Income taxes-future

$4,530


$75,300



Net earnings (loss) for period

$12,866

0%

$177,619

3%

-92%







Earnings per share

$0.00


$0.01



EBITDA

$642,742

10%

$855,740

16%


EBITDA per share

$0.03


$0.04









For the 6 months ending

      Dec 31, 2014


       Dec 31, 2013


Change

Sales

$10,370,796

100%

$7,356,413

100%

41%

Cost of Sales

$8,219,052

79%

$5,541,492

75%

48%

Gross Margin

$2,151,744

21%

$1,814,921

25%

19%







Expenses






Operating & administrative

$644,138

6%

$567,544

8%


Admin. fees, wages & benefits

$611,962

6%

$562,659

8%


Amortization

$805,383

8%

$763,509

10%


Interest expenses

$412,877

4%

$421,480

6%


Total expenses

$2,474,360

24%

$2,315,192

31%

7%

Earnings (loss) from operations

-$322,616

-3%

-$500,271

-7%

-36%

Other

$67,951


$19,389



Earnings before taxes

-$254,665

-2%

-$480,882

-7%

-47%

Income taxes-future

-$66,210

-1%

-$144,840

-2%


Net earnings (loss) for period

-$188,455

-2%

-$336,042

-5%

-44%

Earnings per share

-$0.01


-$0.01









EBITDA

$963,595

9%

$704,107

10%

37%

EBITDA per share

$0.04


$0.03



Because revenue is accounted as "when goods are shipped", the Company provides the following 12 month trailing summary of financial performance. Sales, gross margins and earnings have shown steady increases on year over year periods.

 

Bevo's trailing twelve months results are summarized below

12 months ended

         Dec 31,'12

       June 30. '13

     Dec 31,'13

       June 30. '14

     Dec 31, 2014

Sales

$19,899,943

$20,587,204

$21,008,627

$23,309,085

$26,323,468

Gross Margin

$4,817,838

$5,083,066

$5,350,194

$5,918,741

$6,255,564

Earnings before taxes

$105,467

$158,943

$433,895

$923,245

$1,149,462

Net earnings

$541,175

$184,533

$356,425

$738,745

$886,332

EBITDA 

$2,609,311

$2,629,701

$2,866,060

$3,359,710

$3,619,198

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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