AgriBioTech, Inc. today reported audited financial results for the year ended June 30, 1999. The nation's largest developer and marketer of forage and cool-season turfgrass seed, had previously indicated that it expected a substantial loss for the fourth quarter and fiscal year as the result of restructuring charges, integration costs, an extraordinary loss on the early redemption of subordinated debt, and reserves and write-offs on inventory and receivables.

In the fourth quarter, the Company had a net loss of $37.6 million, or $0.92 per share, on revenues totaling $98.5 million, compared with a net loss of $3.9 million, or $0.11 per share, on sales of $65.4 million in the same period last year. On an EBITDA basis (earnings before interest expense, income taxes, depreciation, amortization, restructuring and special charges and extraordinary items), the Company reported a negative $18.9 million, compared with a negative $1.6 million in the fourth quarter a year ago. Management has previously stated it believes EBITDA is an important, cash-based measure of operating performance, particularly for companies engaged in significant industry consolidation through acquisitions and mergers.

For the full year, ABT had a net loss of $49.8 million, or $1.22 per share, on revenues of $370.5
million. This compares with net earnings of $387,000, or $0.01 per share, on sales of $205.1 million for all of 1998. On an EBITDA basis, the Company had a negative $12.7 million for fiscal 1999, compared with a positive $6.4 million for fiscal 1998.

For the fourth quarter and full year respectively, the Company reported restructuring and special
charges of $7.8 million and $9.8 million, $3.9 million and $3.9 million on the early debt redemption, and $13.7 million and $14.6 million on the write-off of inventory and receivables. ABT indicated that similar restructuring and special charges for fiscal 2000 are not expected to exceed $1 million.

According to Richard Budd, who became chairman and chief executive officer in February, 1999,
"Because the integration and consolidation program was not initiated until late in the fourth quarter, little expense savings was recognized during the period. As a result, virtually all expense categories for both the fourth quarter and full-year were significantly higher than in the corresponding periods a year earlier. The Company also indicated that there was no goodwill impairment and related write-off for the quarter or the full year.

"We have gone through a tremendous amount of change in a very short period of time, including the integration of 34 companies into one, transition of those individual companies into fewer business units, the closing of several facilities, the total transformation of virtually all business processes, and a new management information system change. The impact of these changes has not surprisingly spilled over into the first quarter of fiscal 2000, which also was impacted by weather in both our growing and selling regions,'' said Budd.

He indicated that demand for proprietary seed products remained strong but that lower prices reduced sales during the quarter ended September 30 by at least 10 percent from a year ago. "The late harvest created a condensed selling season which is pushing some of our sales from the traditionally strong first quarter into the historically slower second quarter. As a result, we will likely report a loss for the first quarter,'' he added.

The Company also reported that it has received a commitment from a major financial institution for a combination of long-term debt of up to $20 million and a new revolving credit facility for up to $115 million. When consummated, the revolving line of credit will replace a smaller line currently provided by the current Bank of America syndicate. The Company indicated that as of October 8, it had borrowings of $62.1 million and an available balance of $26.5 million under of the current Bank of America line of credit.

Budd concluded by stating that "The Company's new management is confident the Company is making all the necessary strides to get itself back on track. Fiscal 1999 was dedicated to cleaning up the aftermath of two years of acquisition, integration, consolidation and creating a common and stronger culture for the 34 companies now operating under one umbrella. We believe that fiscal 2000 will begin to show the benefits of these efforts to our growers, customers, shareholders, and employees.''

The foregoing information regarding anticipated financial results and finalization of new debt financings are forward looking statements. They should be considered strictly preliminary, and actual results may differ materially. The risks and uncertainties associated with these statements include, but are not limited to, possible accounting adjustments made during the finalizing of the financial results for the quarter and the ability to consummate the debt financing transactions, which depends on potential lenders' assessments of the Company's assets, overall financial condition and operations and other factors as detailed from time to time in the Company's SEC filings, including the Form 10-K for Fiscal 1999.

About AgriBioTech

AgriBioTech, Inc. is a vertically integrated, full-service seed company specializing in the forage and turfgrass sector, complete with research and development of proprietary seed varieties, seed
processing plants, and a national and international distribution and sales network. ABT's vision is to lead the turf and forage seed industry in discovering its value potential.  

Company news release
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