SYMBOL: TSX: AGT
REGINA, Nov. 15 /CNW/ - Alliance Grain Traders Inc. (TSX: AGT) ("AGTI") has announced its financial results for the three and nine months ended September 30, 2010. Highlights include:
- Adjusted EBITDA* for the quarter of $5.2 million compared to $8.3 million for the third quarter of 2009.
- Adjusted Net Income* for the quarter of $0.73 million ($0.04 per common share and on a diluted basis) compared to $4.5 million ($0.47 per common share/unit or unit equivalent or $0.46 on a diluted basis) for the third quarter of 2009.
- Sales for the quarter increased to $137.6 million compared to sales of $73.3 million for the third quarter of 2009.
"The late harvest and other weather conditions have certainly magnified the timing issues we have experienced through this season. While they are a part of the agricultural business, it has impacted our ability to utilize our assets and generate the type of sales results we believe are possible, given the continued robust demand profile for our products. We are optimistic about the opportunities that are out there for AGTI on a go-forward basis. Our facilities are strategically located globally and are well configured with the latest equipment as a result of our completed capital projects. This will assist us in capitalizing on the opportunities to market product volumes of all grades and types of pulses that are available in our operating locations around the globe" commented Murad Al-Katib, President and CEO of AGTI.
AGTI is also pleased to announce the completion of the transactions for Balco Grain Services and Northern Yorke Processors in South Australia. The final terms of these transactions remain as previously disclosed.
"Our experienced management team, processing expertise and state-of-the art facilities give our company the necessary tools to manage the temporary effects of major weather events in Canada during the 2010 crop year. Variable quality creates both challenges and opportunities for us. We will use the depth of our international distribution channels to find markets that suit the available crops that will pass through our processing systems globally", added Huseyin Arslan, Executive Chairman of the Board of Directors for AGTI. "We remain optimistic that our previously announced investments to bolster our global bean, rice and pasta operations, as well as our expansions in South Australia will have a positive future affect on our earnings and assist us in smoothing the seasonality of our current business."
The unaudited interim financial statements and management's discussion and analysis for the three and nine months ended September 30, 2010 are available under AGTI's profile on www.sedar.com and have been posted on AGTI's web site at www.alliancegrain.com. All amounts are reported in Canadian dollars.
Alliance Grain Traders invites you to join our Third Quarter 2010 conference call on Monday, November 15, 2010 at 10:00 a.m. Eastern time. To join the conference, please dial 1-800-319-4610 (Canada & USA) or +1-604-638-5340 (Outside Canada & USA).
A recording of the call will be available on our website at www.alliancegrain.com on November 17, 2010. A telephone replay will also be available until midnight Eastern time, Monday, November 29, 2010. To access the replay, please call 1-800-319-6413 (from Canada & USA, Toll Free) or +1-604-638-9010 (from outside Canada & USA). When prompted, enter the code 4537, followed by the pound symbol (#).
Alliance Grain Traders Inc. Profile
Alliance Grain Traders Inc. (AGTI) 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 processing facilities located in some of the best pulse growing regions in Canada, the U.S., Turkey, Australia and China and trading and sales offices in the UK and the Netherlands, AGTI 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, AGTI 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 AGTI 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 AGTI (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 AGTI dated March 30, 2010 which is available on SEDAR at www.sedar.com, and which should be reviewed in conjunction with this document. Although AGTI 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. AGTI 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-GAAP Financial Measures *
AGTI provides some non-GAAP measures as supplementary information that management believes may be useful to investors to explain AGTI's financial results. These non-GAAP measures include 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 Income*. Management believes that these are important measures in evaluating performance and in determining whether to invest in AGTI. However, EBITDA*, Adjusted EBITDA* and Adjusted Net Income* are not recognized measures under GAAP and do not have standardized meanings prescribed by GAAP. In addition, AGTI may calculate these measures differently than other companies; therefore they may not be comparable. Investors are cautioned that EBITDA*, Adjusted EBITDA* and Adjusted Net Income* should not be construed as an alternative to net income or loss or cash flows as determined in accordance with GAAP as an indicator of AGTI's performance or to cash flows. For a reconciliation of net income determined in accordance with GAAP to EBITDA*, Adjusted EBITDA* and Adjusted Net Income*, see the table on page 22 in the management's discussion and analysis for the three months and nine months ended September 30, 2010 available under AGTI's profile on www.sedar.com.
For further information: For further information:
Omer Al-Katib, Investor Relations (306) 244-1318, email@example.com