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Cedar Falls, Iowa
April 10, 2001
Ag Services of America, Inc. (NYSE:ASV) today announced record
net revenue for Fiscal 2001 through further penetration of AgriFlex Credit(R) in existing market areas. Net revenues increased
17% to $345.6 million for Fiscal 2001 as compared to $294.6 million in Fiscal 2000. Net income from continuing operations
was $7.5 million, or $1.36 per diluted share, which includes Powerfarm, the Company's e-commerce initiative, compared to
$8.1 million, or $1.48 per diluted share a year ago.
Powerfarm net revenues reached $1.6 million for the Fiscal 2001. As part of Ag Services long-term strategy, the Company's
investment in the build-out of Powerfarm reduced earnings by $975,000, or $0.18 per diluted share in Fiscal 2001 as
compared to $120,000, or $0.02 per share last year. Powerfarm's results were in line with plans and management's
expectations. Excluding Powerfarm, net earnings from continuing operations for Fiscal 2001 were $8.4 million as
compared to $8.2 million for Fiscal 2000.
"This level of earnings was anticipated given the continued increase in the average size of our customers who qualified for
greater seed volume discounts, pricing pressures specifically in the chemical industry, expansion into the West and Pacific
Northwest where our margins on input sales are currently less than the Midwest and our investment in the future of Ag
Services through Powerfarm," stated Brad Schlotfeldt, Senior Executive Officer. "Additionally, early harvesting conditions in
the Midwest and record direct government payments to producers resulted in greater program fee refunds earned by our
customers."
Fourth quarter net revenue increased 35.3% to $62.7 million in Fiscal 2001 compared to $46.3 million for the fourth quarter
one year ago. Net income from continuing operations for the fourth quarter of Fiscal 2001 increased 11.3% to approximately
$598,000, $0.11 per diluted share, compared to $538,000 or $0.10 per diluted share, for the same period last year. Excluding
Powerfarm, net earnings from continuing operations for the fourth quarter of Fiscal 2001 were $932,000 as compared to
$657,000 for the same period one year ago.
Looking forward to Fiscal 2002, AgriFlex Credit(R) applications and approvals are currently running approximately 15-20%
ahead of last year's record levels. The Company's seed and chemical financing program, intermediate financing program, and
Powerfarm financing applications have also generated good interest. Efforts have begun to increase the Company's asset
backed securitization program to $355 million which is complemented with a senior secured $30 million term note and $15
million revolving line of credit and will provide the necessary funding for Fiscal 2002.
Ag Services of America, Inc., which operates Powerfarm.com, is based in Cedar Falls, Iowa, and is a competitive supplier of
input financing and agricultural inputs, including seed, chemicals, fertilizer and cash advances to primarily corn and soybean
growers in the U.S. The Company's one-stop shopping business model includes competitive and flexible financing packages
through its AgriFlex Credit(R) program combined with the most comprehensive offering of agricultural inputs from national
sources such as American Cyanamid, Asgrow, Bayer, Dekalb, Dow AgroSciences, DuPont, Garst, Monsanto, Pioneer
Hi-Bred, and Syngenta. The Company also provides ancillary services such as crop insurance, crop scouting and grain
marketing.
AgriFlex Credit is a registered trademark and Powerfarm.com and Powerfarm Credit are trademarks of Ag Services of
America, Inc. All other trademarks or product names are the property of their respective owners. For more information visit
www.agservices.com or www.powerfarm.com.
Company news release
N3441 |
