Seminis Inc., the world's largest developer, producer and marketer of vegetable and fruit seeds, recently reported financial results for its first quarter ended December 26, 2003.

Net sales for the first quarter of fiscal year 2004 increased 26.4% to $101.9 million compared with $80.6 million for the same period last year. This increase was mainly attributable to improved pricing, product mix and favorable Euro-currency appreciation.

Gross profit decreased to $49.4 million, or 48.5% of sales, compared with $50.4 million, or 62.5% of sales, for the same quarter last year. This decrease was primarily due to a non-cash $11.5 million of inventory step-up amortization due to purchase accounting related to the Fox Paine transaction.
 

Total operating expenses for the first quarter increased by 2.3% to $59.4 million from $58.1 million in the same period last year mainly as a result of increased Euro-based expenses.
 

Operating loss for the first quarter was $7.4 million compared to an $8.1 million loss for the same quarter last year.
 

Adjusted for the non-cash amortization of inventory step-up from the purchase accounting transaction described above, gain (loss) on sale of assets, reversal of operating lease expense and expenses related to the Fox Paine merger and refinancing transaction, pro forma EBITDA was $7.0 million, or 6.9% of sales, an increase of $6.2 million or 804.1% versus pro forma EBITDA  of $0.8 million for the same period last year. Reported EBITDA in the current quarter was a loss of $3.6 million versus a loss of $0.3 million during the same quarter last year.

The net loss for the first quarter of fiscal year 2004 was $9.1 million compared to a net loss of $11.8 million during the same quarter last year. Historically, the first quarter of Seminis' fiscal year has the lowest sales due to the seasonal nature of the agronomic cycle, and the company has posted losses during these periods.
 

Seminis Inc. is the largest developer, producer and marketer of vegetable seeds in the world. The company uses seeds as the delivery vehicle for innovative agricultural technology. Its products are designed to reduce the need for agricultural chemicals, increase crop yield, reduce spoilage, offer longer shelf life, create better tasting foods and foods with better nutritional content. Seminis has established a worldwide presence and  global distribution network that spans 150 countries and territories.