|
Cedar Falls, Iowa
December 19, 2001
Ag Services of America, Inc.
(NYSE:ASV) today announced that net revenues for the three
months ended November 30, 2001 increased 6% to $25.1 million
compared to $23.6 million one year ago. Net earnings for the
quarter increased 30% to $1.3 million, or $0.24 per diluted
share compared to $1.0 million, or $0.18 per diluted share for
the same period last year. Net revenues for the nine months
ended November 30, 2001 increased 6% to $299.6 million from
$283.0 million one year ago. Net income for the first nine
months of Fiscal 2002 was $5.2 million, or $0.94 per diluted
share, compared to $6.9 million, or $1.24 per diluted share for
the first nine months of Fiscal 2001.
"We are very pleased with our third quarter results," stated
Brad Schlotfeldt, Executive Vice President. "Although hampered
by reduced interest rates, our third quarter earnings increased
30% over last year as a result of increased volume under our
crop insurance program. As we previously stated at the end of
our second quarter, year-to-date Fiscal 2002 results have been
impacted significantly by changes in crops planted by our
customers and reduced interest rates. The delay in crop planting
this spring throughout much of our primary market area caused
many customers to switch crop plans and to leave a portion of
acres unplanted which decreased a portion of our seed, chemical
and fertilizer sales. Also attributing to lower earnings for the
first nine months of Fiscal 2002 was the decline in the prime
lending rate which significantly reduced earnings on our
invested capital and negatively affected an interest rate swap
agreement associated with our $30 million term note."
In the first nine months of Fiscal 2002, revenues attributable
to Powerfarm increased substantially to $3.6 million as compared
to $0.8 million for the same period last year. The impact on
earnings per share for the first nine months of Fiscal 2002 was
a loss of $0.08 per diluted share compared to a loss of $0.12
per diluted share one year ago.
Looking forward, the Company anticipates fourth quarter earnings
per share on a diluted basis to range from $0.11 to $0.13.
Currently the Company is beginning its marketing campaign for
the 2002 crop year producers. The Company's focus is to increase
penetration in Midwest corn and soybean producers through direct
mail, print media and a dedicated sales force. Although very
early in the approval season, the Company anticipates customer
credit growth in the range of 15-20% for the next year. Given
this assumed customer growth and projected reduced interest rate
environment, the Company forecasts earnings per share growth for
Fiscal 2003 to also approximate 15-20%.
Ag Services of America, Inc., which operates
Powerfarm.com, is based
in Cedar Falls, Iowa, and is a leading 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 Asgrow, Aventis, BASF, Dekalb, Dow AgroSciences,
DuPont, Garst, Monsanto and Pioneer Hi-Bred. The Company also
provides ancillary services such as crop insurance and grain
marketing.
AgriFlex Credit,
Powerfarm.com and Powerfarm Credit are registered trademarks of
Ag Services of America, Inc. All other trademarks or product
names are the property of their respective owners.
Company news release
N4061
|
