Saskatoon, Saskatchewan, Canada
May 15, 2007
Philom Bios Inc. is
pleased to report its results for the six months ended March 31,
2007.
Highlights:
- Financial
- Quarterly earnings of $0.7
million versus prior year of $1.7 million reflect the normal
variation that may occur between quarters due to nature of
our business cycle. In the current year, most shipments, and
thus sales, will be realized in the 3rd quarter.
- Net cash inflows in the
quarter were $5.9 million (2006 - $4.6 million) reflecting
the benefit of early order payment incentive plans.
- The Company announced
registration of TagTeam® soybean granular inoculants in
Western Canada, bringing new registrations in the fiscal
year to a total of five products.
- Subsequent to quarter, the
Company realized a reduced judgment on its legal appeal,
with the outcome estimated to be accretive to net earnings
after taxes of $0.20 per share.
Second quarter earnings of $0.7
million versus $1.7 million in the prior year represent a normal
variation in interim earnings that may occur from time to time
in our business cycle as revenue recognition depends on timing
of shipments. In the current year, the majority of shipments
(sales) will be realized in the 3rd quarter, whereas in the
prior year shipments were more evenly distributed over 2nd and
3rd quarters. Total operating costs for the year to date now
total $3.8 million (2006 - $3.6 million) with the increase over
the prior year mainly reflective of growing commitments in
marketing and sales costs associated with expanding U.S.
operations.
Subsequent to the quarter, the
Company also reported the decision of the Alberta Court of
Appeal in respect of the Dow AgroSciences Canada Inc. judgment.
As a result of this decision, the Company expects to record an
extraordinary item gain in the 3rd quarter of $0.7 million or
$0.20 per share. President/CEO Calvin Sonntag comments,
“Although second quarter earnings are below the prior year due
to timing of shipments, based on total sales to date we are very
encouraged by customer support across all product lines and the
impact that an improving farm economy and robust crop input
markets are having on our business. As a result, we are
currently estimating annual net earnings, inclusive of the
extraordinary item gain, in the range of $0.60 to $0.70 per
share, a significant increase over 2006 net earnings of $0.16
per share. ”
Philom Bios is a world leading
Inoculant Company with over 70 employees across North America in
research, manufacturing, marketing and management and in its
joint-venture operations in Australia. Headquartered in
Saskatoon, SK, Philom Bios is a Canadian public company serving
the needs of farmers with high-value inoculants. Philom Bios has
an over 25 year commitment to farmers through a dynamic
partnership with distributors and leading retailers. |
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