REGINA, March 22, 2017 /CNW/ - AGT Food and Ingredients Inc. (TSX:AGT) ("AGT" or the "Company") has announced its financial results for the twelve months ended December 31, 2016.
Results for 2016 include:
- Adjusted EBITDA* was $118.8 million for the year ended December 31, 2016, an increase of 17.6% over $101.0 million for the year ended December 31, 2015 and compared to $117.0 million for the trailing twelve months ended September 30, 2016.
- Adjusted EBITDA* was $34.7 million for the unaudited three months ended December 31, 2016, an increase of 26.6% over the $27.4 million for the unaudited three months ended September 30, 2016 and an increase of 5.5% over the $32.9 million for the unaudited three months ended December 31, 2015.
- Adjusted net earnings per share* increased to $0.72 ($0.72 fully diluted) for the unaudited three months ended December 31, 2016 compared to $0.50 ($0.50 fully diluted) for the unaudited three months ended September 30, 2016 and compared to $0.64 ($0.64 fully diluted) for the unaudited three months ended December 31, 2015.
- Bulk handling and distribution segment contributed $10.1 million Adjusted EBITDA* for the year ended December 31, 2016 compared to $2.1 million Adjusted EBITDA* for the year ended December 31, 2015.
- Food ingredients and packaged foods Adjusted EBITDA* was $137.17 per metric tonne ("mt") for the year ended December 31, 2016, compared to $131.49 per mt for the year ended December 31, 2015 an increase of 4.3%.
- Dividend of $0.15 per share for the quarter ($0.60 per share on an annualized basis).
"We are pleased with AGT's consistent performance as our business continues to grow and mature, providing a stable platform for our operations, sales and earnings. There is a significant amount of product to move from Canada and Australia, with demand looking positive in the traditional shipment periods to key markets for the second half of 2017. We are optimistic that sales programs to India and Turkey and other key consumption markets will be seasonally strong, continuing our advancement of our sector growth strategies in our core pulses and staple foods business. Our expansion in Minot for pulse ingredients, as well as market development efforts for inclusion of these ingredients, continue to advance as per our expectations, with strong demand for protein and increased opportunities for our flours and starches. The bulk handling and distribution segment, which is evolving through our bulk and short line rail programs, continued to be integrated in 2016, with the current harvest levels providing the first opportunity to show the benefit this segment can have on our business," said Mr. Murad Al-Katib, President and CEO of AGT.
"We have set forward a clearly defined strategy and structure for AGT's business that is in place to allow AGT to mature as a business and operate positively in all manner of global conditions. We have superior market position and local market intelligence in place to complement our management strength, facility operations and origination advantages. While it is true that volumes may fluctuate from quarter to quarter, based on a number of factors in the global agri-commodity sector and with them prices and margins, we are confident and pleased with how our business is able to demonstrate relative strength, providing positive conditions for 2017 sales, revenue and earnings prospects," added Mr. Huseyin Arslan, Chairman of the Board of Directors of AGT.
The financial statements and notes thereto for the twelve months ended December 31, 2016, 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 AGT's website at www.agtfoods.com. All amounts are reported in Canadian dollars.
AGT is also pleased to announce a cash dividend for the quarter ending March 31, 2017 of $0.15 per common share. The dividend will be payable on April 12, 2017 to shareholders of record on April 5, 2017. This dividend is an eligible dividend for Canadian income tax purposes. AGT's current annualized cash dividend rate is approximately $0.60 per share.
AGT invites you to join our conference call to discuss Fourth Quarter and Year End 2016 results scheduled for Thursday, March 23, 2017 at 11:00 a.m. Eastern time. To join the conference, please dial 1-800-319-4610 (toll free from Canada & the U.S.) or +1-604-638-5340 (from outside Canada & the U.S.).
A recording of the call will be available at www.agtfoods.com on Thursday, March 23, 2017. A telephone replay will also be available until midnight Eastern time, Friday, April 21, 2017. 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 1251, followed by the number sign (#).
AGT Food and Ingredients Inc. Profile
AGT Food and Ingredients Inc. (AGT) is a processor of value-added pulses, staple foods and ingredients for export and domestic markets as well as a supplier of retail packaged and canned foods to retail and food service sectors. 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, Switzerland 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. In particular, this press release contains forward looking statements with respect to, among other things, production levels, crop quality, crop quantity, consumer markets, export markets, volumes and margins, crop expectations, crop deliveries and the expected benefits of AGT's production facilities in response to the foregoing. 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 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 Adjusted Gross Profit* (gross profit plus depreciation in cost of sales), Adjusted EBITDA* (earnings before finance expense, income taxes, depreciation and amortization, restructuring costs and any effects of non-cash, non-recurring and other costs and foreign exchange adjustment), Adjusted Net Earnings*, Adjusted Basic Net Earnings Per Share* and Adjusted Diluted Net Earnings Per Share* (earnings before any effects of non-cash, 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). Adjusted Net Earnings*, Adjusted Basic Net Earnings Per Share* and Adjusted Diluted Net Earnings Per Share* do not include the tax effect of non-cash, non-recurring and other costs and foreign exchange. Management believes that Adjusted EBITDA*, Adjusted Net Earnings*, Adjusted Basic Net Earnings Per Share* and Adjusted Diluted Earnings Per Share, Net Debt* and Net Working Capital* are important indicators of AGT's ability to generate liquidity through operating cash flow to fund future working capital needs, service outstanding debt and fund future capital expenditures and uses the metric for this purpose. The exclusion of non-cash and foreign exchange adjustments eliminates the non-cash impact on Adjusted EBITDA*, Adjusted Net Earnings*, Adjusted Basic Net Earnings Per Share* and Adjusted Diluted Earnings Per Share*. Adjusted EBITDA* and Adjusted Net Earnings*, Adjusted Basic Net Earnings Per Share*, Adjusted Diluted Net Earnings Per Share*, Net Debt* and Net Working Capital* are also used by investors and analysts for the purpose of valuing AGT. The intent of these measures is to provide additional useful information to investors and analysts and the measure does not have any standardized meaning under IFRS. Adjusted Gross Profit*, Adjusted EBITDA* and Adjusted Net Earnings*, Adjusted Basic Net Earnings Per Share*, Adjusted Diluted Net Earnings Per Share*, Net Debt* and Net Working Capital* should therefore not be considered in isolation or used as a substitute for measures of performance prepared in accordance with IFRS. For a reconciliation of net earnings (loss) determined in accordance with IFRS to Adjusted EBITDA*, Adjusted Net Earnings* and Adjusted Basic Net Earnings Per Share* and Adjusted Diluted Earnings Per Share*, see the table on page 41 in the related management's discussion and analysis for the twelve months ended December 31, 2016.
SOURCE AGT Food and Ingredients Inc.
For further information: Investor Relations, Omer Al-Katib, (306) 244-1318, [email protected]