Bevo Agro
(BVO:TSX-Ven.) reports a net profit of $561,614
($0.02/share) for the year ending June 30, 2004 compared to
$1,905,234 ($0.09/share) for the year ending June 2003.
Results for 2003 included a $418,487 insurance recovery for
an equipment failure.
Fiscal 2004 was affected by expansion costs and expenses
relative to the 50% increase in propagation area to 34
acres. Increased amortization, interest, and utilities
expenses were largely a result of this expansion. A higher
Canadian dollar exchange rate also contributed to lower
sales and earnings.
Sales (shipments to customers) for the year ending June 30,
2004 were $19,495,807 compared to $20,073,130 for the twelve
months ending June 2003. The change in sales was caused
primarily by customers ordering a plug plant rather than
full stage plant which is a higher cost item, as well as
changes in customers' order timing.
EBITDA (Earnings before Interest, Taxes, Amortization and
Depreciation) totaled $4,117,410 ($0.18/share) for the year
versus $5,387,846 ($0.24/share) last year.
The financial benefits of the increased space are expected
to begin in the 2005 and 2006 fiscal years as several
significant clients complete expansions and marketing
efforts towards additional products are realized.
Milestones for 2004
-
Completed Bevo's largest expansion to date totaling 11.5
acres.
-
Installed a second alternative fuel heating system. The
two systems combined can eliminate Bevo's dependence on
natural gas, thus substantially reducing heating costs.
-
Grafted over 10 million seedlings into 5 million tomato
plants. This grafting innovation, first introduced in
2000, increases the client production of tomatoes.
-
Installed a new plant grading machine which reduces
labour costs and improves efficiencies.
-
Flower and bedding plants shipments exceeded $6.9
million, a 43% increase over fiscal 2003.
Year ending June 30, 2004 June 30, 2003
----------- ------------- -------------
Sales $19,495,807 $20,073,130
Cost of Sales $13,281,520 $12,850,695
----------- -----------
Gross Margin $6,214,287 $7,222,435
Expenses
Operating & administrative $1,245,631 $1,449,812
Administrative fees, wages & benefits $857,648 $768,954
Amortization $1,814,850 $1,312,940
Interest expenses $1,198,748 $1,085,212
---------- ----------
Total Expenses $5,116,877 $4,616,918
---------- ----------
Earnings from operations $1,097,410 $2,605,517
Other $6,402 $384,177
------ --------
Earnings before taxes $1,103,812 $2,989,694
---------- ----------
Income taxes-current $203,104 $867,934
Income taxes-future $339,094 $216,526
-------- --------
Net earnings for period $561,614 $1,905,234
-------- ----------
EBITDA $4,117,410 $5,387,846
CASH FLOW $2,715,558 $3,434,700
Trailing Twelve Months Results
------------------------------
Year ending June 30, 2001 June 30, 2002
----------- ------------- -------------
Sales $12,021,771 100% $13,584,116 100%
Gross Margin $3,188,759 27% $4,149,215 31%
----------- --- ----------- ---
Net earnings $128,900 1% $314,662 2%
EBITDA $1,801,853 15% $2,590,046 19%
CASH FLOW $1,041,381 9% $1,511,358 11%
Shares o/s 22,197,141 22,197,141
Earnings/share $0.01 $0.01
EBITDA/share $0.08 $0.12
Cash flow/share $0.05 $0.07
Trailing Twelve Months Results
------------------------------
Year ending June 30, 2003 June 30, 2004
----------- ------------- -------------
Sales $20,073,130 100% $19,495,807 100%
Gross Margin $7,222,435 36% $6,214,287 32%
----------- --- ----------- ---
Net earnings $1,905,234 9% $561,614 3%
EBITDA $5,387,846 27% $4,117,410 21%
CASH FLOW $3,434,700 17% $2,715,558 14%
Shares o/s 22,197,141 22,914,932
Earnings/share $0.09 $0.02
EBITDA/share $0.24 $0.18
Cash flow/share $0.15 $0.12
Bevo Agro is North America's
leading supplier of propagated agricultural plants, growing
and distributing vegetable, flower, berry and other plant
seedlings to North America's growers. Bevo propagates
quality seedlings and plants primarily for wholesale
vegetable greenhouse growers, field growers and nursery
operators from its 34 acre production facility.
