Strong shipments and solid agri-product sales in the Pool's third quarter led to its fourth consecutive quarter of improved earnings and cash flow over the previous year's period.

Primary shipments for the quarter were 1.45 million tonnes, up 81 per cent over the same quarter last fiscal year. The Pool's shipments of wheat and barley for the first nine months were 54 per cent higher than last year's period and exceeded overall industry shipments, which were up 52 per cent. The company's shipments of non-Board commodities were also up 35 per cent for the quarter.

Seed sales that were more than double last year's quarter and an 83-per-cent increase in crop protection sales drove the Agri-products segment to quarterly sales of $57.2 million, a 30-per-cent improvement over last year. Producer purchasing patterns have returned to normal, with a greater percentage of sales generated in the third quarter, as opposed to last year's anomaly, when producers secured product in the second quarter.

"This continued momentum is a result of the Pool's strategy to focus on its core businesses," Pool CEO Mayo Schmidt said. "We are on target to exceed our expectations for fiscal 2004. Previously, we were targeting to breakeven excluding the provision we took in the second quarter with respect to our investment in the pork industry. We now believe we are in striking distance of achieving the first positive bottom line for a full fiscal year since 1998."

The Pool's core operations, particularly its agri-products retail locations, are expected to continue performing strongly through to year-end. This, as well as the one-time item that will be recorded in the fourth quarter with respect to the Pool's recent sale of its Mexican grain terminal, is also expected to make a positive contribution to full year results. Additional information can be found in the Pool's Third Quarter Report available on its website at www.swp.com.

EBITDA, or earnings before interest, securitization, taxes, depreciation and amortization, was $11.9 million, a significant improvement over last year's third quarter, when the Pool posted an EBITDA loss of $5.7 million. For the nine-month period, EBITDA was $46.4 million, compared to a loss in the same period a year ago of $5.4 million. Cash flow from continuing operations was $1.8 million for the quarter, which compares to an operating cash flow deficiency from continuing operation of $18.6 million in the third quarter last year. For the first nine-months of fiscal 2004, the Pool generated $21.5 million in cash flow from continuing operations, reflecting the earnings recovery of the Pool's core businesses. During the third quarter, the Pool generated EBIT, or earnings before interest and taxes, of $5.5 million, compared to a loss of $11.9 million for the same time period last year. EBIT for the nine-month period was $28.0 million.

For the quarter ended April 30, 2004, the Pool recorded a net loss from continuing operations of $4.8 million or $0.02 per share before accretion. This is a significant improvement from the $27.7 million lost in third quarter last year ($0.42 per share before accretion). For the nine months, the net loss from continuing operations was $2.4 million or $0.01 per share prior to accretion.

Subsequent to the quarter end, the Pool finalized its exit from the hog production and feed processing industries, selling its interests in Heartland Pork Management Services, seven rural hog operations and one feed mill to Sterling Pork Farm Ltd. As well, the Pool is in the process of selling its aquaculture operation and expects the sale to close in the coming weeks. The majority of assets previously reported under the "Other" segment have been reclassified on the balance sheet as "assets held for sale" and losses for the segment are reported as "discontinued operations" on the income statement.

The net loss from discontinued operations for the quarter was $4.3 million or $0.02 per share for the quarter, which compares to a $2.8 million loss or $0.04 per share for the same quarter last year. The net loss from discontinued operations for the first nine months of fiscal 2004 was $21.3 million or $0.11 per share. On a consolidated basis, the net loss was $9.1 million for the quarter and $23.7 million for the nine-months ended April 30, 2004.

The complete results are at http://www2.cdn-news.com/scripts/ccn-release.pl?/current/0616146n.html?cp=swbp