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Oakland, California
March 6, 2001
Bionova Holding Corporation (Amex: BVA) announced year-end and
fourth-quarter financial results for the year ended December 31, 2000.
For the year ended December 31, 2000, Bionova Holding reported a net loss of $42.4 million, or $1.80 per share, as compared with a
loss of $38.6 million, or $1.64 per share in 1999. The Company explained that the presentation of its fourth quarter and total year
results reflect the $63.7 million re-capitalization that was completed on December 29, 2000 and the classification of the fresh produce
business as discontinued operations consistent with its pending sale to Savia, S.A de C.V. In the capitalization transaction, the
Company issued 200 shares of convertible preferred stock to Bionova International, Inc., a subsidiary of Savia, and applied $63.7
million of advances it had previously received from Savia to the purchase price of those shares, resulting in a $63.7 million decrease
in the Company's long-term debt.
Total year revenues for the continuing technology business operations declined from $6.1 million in 1999 to $3.5 million in 2000 while
the operating loss increased from $8.1 million in 1999 to $11.5 million in 2000. The revenue decline was attributable to the termination
of certain research contracts and extra revenue payments received from Savia in 1999 to cover prior-year obligations under Savia's
long-term funded research agreement with DNA Plant Technology. The higher operating loss in 2000 was a consequence of the
decline in revenues and higher administrative expenses associated with shareholder litigation and the business and financial
restructuring of the company.
The discontinued operations of the fresh produce business posted a loss of $19.0 million in 1999 compared with a loss of $14.6
million in 2000 and an expected loss on the sale of the fresh produce business to Savia of $8.2 million. However, in conjunction with
the re-capitalization transaction in late December of 2000, all of the interest expense that had accrued since the retirement of the
floating rate notes in April and would otherwise have been due to Savia was reversed and thereby generated an extraordinary gain of
$9.9 million.
Bionova Holding also announced that it had experienced a setback in one of its shareholder litigation cases. The Circuit Court of
Appeals for the State of California recently overturned the Superior Court's previous ruling in favor of the Company in the case of the
Grace Brothers, Ltd. against DNAP Holding Corporation and DNA Plant Technology Corporation ("DNAP") concerning DNAP
preferred stock. The case has been remanded to the Superior Court for further
proceedings. The Company is considering its legal options and will continue to contest this case vigorously.
Bionova Holding Corporation is a leading biotechnology company focused on genomics-based trait development for plant agriculture.
Bionova Holding's goal is to deliver crop protection and human nutrition traits through high-efficiency gene profiling, bioinformatics,
and expertise in plant biology. Bionova Holding and its affiliates have strategic alliances and licensing agreements with
some of the world's leading agricultural companies, value-added producers and marketers, and
biotechnology research groups. Bionova Holding Corporation is majority owned by Mexico's
Savia, S.A. de C.V. (NYSE: VAI), whose subsidiaries include Seminis Vegetables Seeds,
Inc., the world's largest vegetable seed company.
Company news release
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