Langley, British Columbia
November 25, 2005
Bevo Agro Inc.
(BVO:TSX-Ven.) reports sales for the first quarter totaled
$2,632,714 compared to $3,411,754 for the first quarter the
year earlier.
Sales to Canadian
clients increased 10% in the quarter, however sales to US
clients declined to $1.6M from $2.4M in the same quarter
last year. US clients have been ordering more greenhouse
plants in a plug stage rather than in a full plant stage as
was done in previous years. Plugs generate approximately
50% of the revenue of a full plant. The order book for Q2
has strengthened materially over quarter 1.
Bevo reports a loss of
$558,036 for
the three months ending September 30, 2005, compared to a
net loss of
$277,265 for the three months ending September
30, 2004.
The value of the U.S. dollar
continues to be a concern to Canadian exporters including
Bevo. A declining US dollar has had a negative impact on
both sales and earnings. Bevo enters hedge transactions
from time to time, and constantly reviews its hedging
strategy.
|
Financial Summary |
|
|
|
|
|
For the 3 months ending |
Sept.
30, 2005 |
|
Sept. 30, 2004 |
|
|
Sales |
$2,632,714
|
100% |
$3,411,754
|
100% |
|
Cost of Sales |
$2,055,814
|
78% |
$2,302,977
|
68% |
|
Gross Margin |
$576,900
|
22% |
$1,108,777
|
32% |
|
|
|
|
|
|
|
Expenses |
|
|
|
|
|
Operating &
administrative |
$346,186
|
13% |
$357,048
|
10% |
|
Administrative fees,
wages & benefits |
$208,160
|
8% |
$237,591
|
7% |
|
Amortization |
$485,278
|
18% |
$514,829
|
15% |
|
Interest expenses |
$439,592
|
17% |
$450,850
|
13% |
|
|
$1,479,216
|
56% |
$1,560,318
|
46% |
|
Earnings (loss) from
operations |
($902,316) |
-34% |
($451,541) |
-13% |
|
Earnings before taxes |
($902,316) |
|
($451,541) |
|
|
Income taxes-current |
|
|
($103,828) |
|
|
Income taxes-future |
($340,195) |
|
($70,448) |
|
|
Net earnings (loss) for
period |
($562,121) |
-21% |
($277,265) |
-8% |
|
|
|
|
|
|
|
EBITDA |
$22,554
|
1% |
$514,138
|
15% |
More detailed information is
available in the MD&A posted at
www.sedar.com.
Bevo Agro’s trailing twelve
months comparative results are summarized below:
|
The 12
months ending |
Sept.
30, 2004 |
Dec
31, 2004 |
Mar.
31 ,2005 |
June
30. '05 |
Sept.
30, 2005 |
|
Sales |
$19,314,323
|
$19,934,529
|
$21,081,451
|
$21,756,304
|
$20,977,264
|
|
Gross Margin |
$6,156,450
|
$6,325,117
|
$6,968,015
|
$6,766,286
|
$6,234,409
|
|
Net earnings for period |
$241,848
|
$289,628
|
$415,359
|
$985,782
|
$700,926
|
|
EBITDA
|
$3,952,473
|
$4,070,404
|
$4,552,560
|
$4,397,946
|
$3,906,362
|
Balance Sheet Summary
Comparison
|
Balance Sheet
|
June
30, '05 |
|
Sept.
30, '05 |
|
ASSETS
|
|
|
|
|
Total Current Assets
|
$7,178,530
|
|
$4,324,662
|
|
Net Fixed Assets |
$31,343,788
|
|
$31,369,103
|
|
Other Assets |
$43,455
|
|
$39,053
|
|
Intangible & Deferred
Assets |
$262,747
|
|
$262,747
|
|
TOTAL ASSETS |
$38,828,520
|
|
$35,995,565
|
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
CURRENT |
|
|
|
|
Total Current
Liabilities |
$6,557,536
|
|
$4,860,412
|
|
LONG TERM DEBT |
$16,360,111
|
|
$16,094,364
|
|
Other Debt (leases) |
$228,822
|
|
$141,876
|
|
Total Debt
|
$23,146,469
|
|
$21,096,652
|
|
Future Income Taxes |
$1,450,042
|
|
$1,109,847
|
|
Shareholders' Loans |
$247,160
|
|
$247,160
|
|
Convertible Subordinated
Debt |
$5,000,000
|
|
$5,000,000
|
|
SHAREHOLDER EQUITY
|
$8,984,849
|
|
$8,541,906
|
|
TOTAL LIABILITIES |
$38,828,520
|
|
$35,995,565
|
|
|
|
|
|
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.
|
