REGINA, Aug. 11, 2011 /CNW/ - Alliance Grain Traders Inc. (TSX: AGT)
("AGT") has announced its financial results for the three and six
months ended June 30, 2011.
Results for the quarter include:
Sales of $169.9 million compared to sales of $168.1 million for Q1 2011
and $149.2 million for Q2 2010.
Adjusted EBITDA* of $9.2 million compared to $14.2 million for Q1 2011
and $4.4 million for Q2 2010.
Adjusted net earnings* of $4.5 million ($0.23 per common share or $0.23
on a diluted basis) compared to $6.6 million for Q1 2011 ($0.33 per
common share or $0.33 on a diluted basis) and $2.3 million ($0.12 per
common share or $0.12 on a diluted basis) for Q2 2010.
"We are pleased with the progress we have made in the fiscal 2011 year
to date. We believe these are good results, given the fact that this is
typically the slowest period for global markets as they look to Turkish
and Indian harvest and ahead to new crop harvest from North America and
the start to the crop season in Australia. Results were certainly
affected on timing issues because of the crop harvest in Turkey being
delayed to mid-June and the floods and rains affecting farm deliveries
and rail service in North America. These events resulted in some
revenues shifting off into the Q3 2011 period. We are optimistic
about the potential the harvest in Canada and the U.S. will provide.
Conditions, in most regions, have been near optimal over the past weeks
and we have received the first samples from our new crop harvest
already. We expect farmers to be out harvesting in full scale by the
third week of August. Crop conditions are being reported as good to
excellent in most regions and we see this providing potential for yield
gains. These gains, added to the carryover stocks from 2010, will give
our facilities the product needed to fill the demand we see is on the
horizon in the latter half of 2011 and into 2012," said Mr. Murad
Al-Katib, President and CEO of Alliance Grain Traders Inc.
"We have stated many times that whatever the crop conditions are,
challenging as they were in 2010 or positive as we expect 2011 may be,
global agri-business companies such as ours, must be ready to
capitalize on the opportunities. We have remained focused on bolstering
our facilities and processing expertise, our origination reach, and our
market distribution. Global business is expected to return to normal
and when demand opens up, products must be ready to ship. We expect a
busy last half to 2011," added Mr. Al-Katib.
"As we expect in the late first half of each year, markets are
recalibrating their buying activities for the rest of the year,
resulting in the slower buying we saw in the period. This quarter has
been no different; however our optimism for positive conditions through
the rest of the year remains. We have stated many times our commitment
to our strategies. The products we offer are required for sustaining
large populations around the globe. Our recent acquisitions and
expansions assist us in solidifying our market position as a leading
pulses and staple foods supplier in the world. We are committed to
growing this position and a continuation of our plans to become the
preferred pulses, staple food and ingredient supplier to global
markets," added Huseyin Arslan, Executive Chairman of the Board of
Directors for AGT.
AGT also announced its cash dividend for the quarter ending September
30, 2011 of $0.15 per common share. The dividend will be payable on
October 7, 2011 to shareholders of record on October 5, 2011. This
dividend is an eligible dividend for Canadian income tax purposes.
AGT's increased annualized cash dividend is approximately $0.60 per
The financial statements and notes for the three and six months ended
June 30, 2011, 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 web site at www.alliancegrain.com. All amounts are reported in Canadian dollars. Quarterly results are
now being reported based on International Financial Reporting Standards
("IFRS"). The new policies have been consistently applied to all
periods noted in this news release and all prior period information has
been restated or reclassified for comparative purposes unless otherwise
noted. Further details on the transition to IFRS are provided in the
notes to our interim consolidated financial statements for the three
and six months ended June 30, 2011.
Alliance Grain Traders invites you to join our second quarter 2011
conference call on Thursday, August 11, 2011 at 11:00 a.m. Eastern
time. To join the conference, please dial 1-800-319-4610 (Toll free in
Canada & USA) or +1-604-638-5340 (Outside Canada & USA).
A recording of the call will be available on our website at alliancegrain.com on August 15, 2011. A telephone replay will also be available until
midnight Eastern time, Thursday, August 25, 2011. To access the
replay, please call 1-800-319-6413 (Toll free from Canada & USA,) or
+1-604-638-9010 (from outside Canada & USA). When prompted, enter the
code 4537, followed by the number sign (#).
Alliance Grain Traders Inc. Profile
Alliance Grain Traders Inc. (AGT) is a pulse processor and exporter
engaged in the business of value-added processing (cleaning, splitting,
sorting and bagging) of pulses and specialty crops, for export and
domestic markets. Through its offices and processing facilities located
in some of the best pulse growing regions in Canada, the U.S., Turkey,
Australia and China and merchandising and sales offices in the U.K.,
the Netherlands and Spain, AGT handles a full range of pulses and
specialty crops including lentils, peas, chickpeas, beans and canary
seed. 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 March 28, 2011 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
*EBITDA (Earnings Before Interest, Income Taxes, Depreciation and
Amortization), Adjusted EBITDA* (Earnings before interest, income
taxes, depreciation and amortization and any effects of non-cash
foreign exchange adjustment) and Adjusted Net Earnings* (Earnings
before any effects of non-cash foreign exchange adjustments) are
financial measures used by many investors to compare companies on the
basis of operating results, asset value and the ability to incur and
service debt. Management believes that EBITDA*, Adjusted EBITDA* and
Adjusted Net Earnings* are important measures in evaluating the
performance of AGT and in determining whether to invest in AGT.
However EBITDA*, Adjusted EBITDA* and Adjusted Net Earnings* are not
recognized earnings measures under IFRS and do not have a standardized
meaning prescribed by IFRS. They are not intended to represent cash
flow or results of operations in accordance with IFRS. Therefore,
EBITDA*, Adjusted EBITDA* and Adjusted Net Earnings* may not be
comparable to similar measures presented by other issuers. Investors
are cautioned that EBITDA*, Adjusted EBITDA* and Adjusted Net Earnings*
should not be construed as alternatives to net earnings or loss
determined in accordance with IFRS as an indicator of AGT's performance
or to cash flows from operating, investing and financing activities of
liquidity and cash flows. For a reconciliation of net earnings
determined in accordance with IFRS to EBITDA*, Adjusted EBITDA* and
Adjusted Net Earnings*, see the table on page 31 in the management's
discussion and analysis for the three and six months ended June 30,
2011 available under AGT's profile on www.sedar.com and on the AGT web site at www.alliancegrain.com.
SOURCE Alliance Grain Traders Inc.
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