SYMBOL: TSX: AGT
REGINA, Nov. 12, 2013 /CNW/ - Alliance Grain Traders Inc. ("AGT") has
announced its financial results for the three and nine months ended
September 30, 2013. Results include:
EBITDA* was $14.4 million for the three months ended September 30, 2013
compared to $11.5 million for the three months ended September 30,
2012, an increase of 25.2%.
Revenue was $240.5 million for the three months ended September 30, 2013
compared to $209.0 million for the three months ended September 30,
2012, an increase of 15.1%.
Adjusted net earnings* were $4.7 million for the three months ended
September 30, 2013 compared to adjusted net earnings of $4.0 million
for the three months ended September 30, 2012 and adjusted net earnings
of $4.9 million for the three months ended June 30, 2013.
Improvement in days inventory outstanding to 77 days for the nine months
ended September 30, 2013, down from 79 days for the nine months ended
September 30, 2012.
Improvement in days accounts receivable outstanding to 56 days for the
nine months ended September 30, 2013, down from 73 days for the nine
months ended September 30, 2012.
Minot facility construction complete with plant commissioning activities
Dividend of $0.15 per share for the quarter ($0.60 per share on an
"We are pleased with our third quarter results and continue to forecast
a gradual return to seasonal patterns and volumes, bringing with them
what we expect to be positive impact on our earnings. Canadian harvest
is complete and we expect the potential for a robust traditional
shipment period ahead in the coming quarters. These conditions
certainly have assisted in what we are viewing as continued
normalization of pulses and staple foods markets and as a result they
are positive for our core legacy business in value-added and whole
pulses," said Mr. Murad Al-Katib, President and CEO of AGT.
"Our food ingredient business focused on pulses flour, protein, starch
and fibre ingredients provides additional optimism for AGT and our
planned growth and expansions. The Minot facility has completed
construction and is nearly completed on commissioning with commercial
shipments moving out of the plant to satisfy our announced marketing
agreement with Cargill on pulse protein for branded feed in North
America, as well as other global customers looking for a quality
supplier of non-GMO, high protein, high fibre ingredients or new and
innovative sources of starch ingredients and flour blends for use in
their products, whether for human food consumption or feed and pet
food. This new line of business is expected to assist in furthering our
stated objective of moving AGT up the value chain and solidifying our
transition from a commodity exporter to a food company," added Mr.
"The management initiatives we have implemented over the past quarters
assist in continuing to demonstrate that our strategy for growth is on
track and that our management team is committed to providing growth and
value to our shareholders. Our core legacy business, with origination
and supply positions in multiple geographies, has always been a
strength for AGT. We continue our acceleration towards new platforms
for growth in our food ingredient business. We believe the same
strategies that have been applied to our core legacy business can
provide advantages that may allow us to expand our offering of healthy
ingredients for food and feed companies around the globe. As this
platform develops, we expect new sales and revenue opportunities to
assist in maintaining a healthy and more predictable earnings profile,
generating free cash flow to fund our growth, reduce our debt and
provide value to our shareholders," added Mr. Huseyin Arslan, Executive
Chairman of the Board of Directors of AGT.
The financial statements and notes thereto for the three and nine months
ended September 30, 2013 as well as the related management's discussion
and analysis have been filed under AGT's profile on www.sedar.com and have been posted on the AGT website at www.alliancegrain.com. All amounts are reported in Canadian dollars.
AGT has also announced a cash dividend for the quarter ending December
31, 2013 of $0.15 per common share. The dividend will be payable on
January 6, 2014 to shareholders of record on December 31, 2013. This
dividend is an eligible dividend for Canadian income tax purposes.
AGT's current annualized cash dividend rate is approximately $0.60 per
AGT invites you to join our third quarter 2013 conference call on
Wednesday, November 13, 2013 at 9:00 a.m. Eastern time. To join the
conference, please dial 1-800-319-4610 (Toll free in Canada & the U.S.)
or +1-604-638-5340 (Outside Canada & the U.S.).
A recording of the call will be available at www.alliancegrain.com on Thursday, November 14, 2013. A telephone replay will also be
available until midnight Eastern time, Wednesday, November 27, 2013.
To access the replay, please call 1-800-319-6413 (toll free from Canada
& the U.S.) or +1-604-638-9010 (from outside Canada & the U.S.). When
prompted, enter the code 4537, followed by the number sign (#).
Alliance Grain Traders Inc. Profile
Alliance Grain Traders Inc. (AGT) is a processor of value-added pulses,
staple foods and ingredients for export and domestic markets. Through
its offices and processing facilities located in some of the best
agricultural growing regions in Canada, the U.S., Turkey, China,
Australia and South Africa, merchandising and sales offices in the
U.K., the Netherlands, Spain and India and origination offices in
Russia, AGT produces a full range of pulses and specialty crops
including lentils, peas, chickpeas, beans and canary seed as well as
food ingredients such as pulse flours, proteins, starches and fibres.
Through its subsidiaries in Turkey, the Arbel Group, AGT also produces
staple foods such as Arbella Pasta, rice, and milled wheat products,
including bulgur and semolina.
Certain statements in this press release are forward-looking statements.
The reader is cautioned that assumptions used in the preparation of
such information, although considered reasonable by AGT at the time of
preparation, may prove to be incorrect. Forward-looking statements
involve known and unknown risks, uncertainties and other factors which
may cause the actual results, performance or achievements of AGT
(including its operating subsidiaries) to be materially different from
any future results, performance or achievements expressed or implied by
the forward-looking statements. Such risks and uncertainties include,
among others, the actual results of harvests, fluctuations in the price
of lentils and other crops, failure of plant, equipment or processes to
operate as anticipated, accidents or labour disputes, risks relating to
the integration of acquisitions or to international operations, as well
as those factors referred to in the section entitled "Risk Factors" in
the Annual Information Form of AGT dated February 21, 2013 which is
available on SEDAR at www.sedar.com, and which should be reviewed in conjunction with this document.
Although AGT has attempted to identify important factors that could
cause actual actions, events or results to differ materially from those
described in forward-looking statements, there may be other factors
that cause actions, events or results not to be as anticipated,
estimated or intended. There can be no assurance that forward-looking
statements will prove to be accurate, as actual results and future
events could differ materially from those anticipated in such
statements. Accordingly, readers should not place undue reliance on
forward-looking statements. AGT expressly disclaims any intention or
obligation to update or revise any forward-looking statements, whether
as a result of new information, future events or otherwise, except in
accordance with applicable securities laws.
Non-IFRS Financial Measures
AGT provides some non-IFRS measures as supplementary information that
Management believes may be useful to investors to explain AGT's
financial results. These non-IFRS measures include EBITDA* (earnings
before finance expense, income taxes, depreciation and amortization,
restructuring costs and any effects of non-recurring and other costs
and foreign exchange adjustment), Adjusted Net Earnings* (earnings
before any effects of non-recurring and other costs, restructuring
costs and foreign exchange adjustments), Net Debt* (bank indebtedness,
short term financing and long term debt less cash) and Net Working
Capital* (current assets less current liabilities). Management believes
that these are important measures in evaluating performance and in
determining whether to invest in AGT. However, EBITDA*, Adjusted Net
Earnings*, Net Debt* and Net Working Capital* are not recognized
measures under IFRS and do not have standardized meanings prescribed by
IFRS. In addition, AGT may calculate these measures differently than
other companies; therefore, such measures may not be comparable.
Investors are cautioned that EBITDA*, Adjusted Net Earnings*, Net Debt*
and Net Working Capital* should not be construed as an alternative to
net earnings (loss) or cash flows as determined in accordance with IFRS
as an indicator of AGT's performance or liquidity. For a reconciliation
of net earnings (loss) determined in accordance with IFRS to EBITDA*
and Adjusted Net Earnings*, see the table on page 36 in the related
management's discussion and analysis for the three and nine months
ended September 30, 2013.
SOURCE: Alliance Grain Traders Inc.
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