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Bevo Agro Inc. Reports Second Quarter Results

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LANGLEY, BC, Feb. 22, 2018 /CNW/ - Bevo Agro Inc. (TSXV: BVO) is pleased to announce operating and financial results for the second quarter and for the six months ending December 31, 2017.

Sales for the three months ending December 31, 2017 totaled $5,580.874, which was $1,266,241 or 18% lower than sales of $6,847,115 in the same three month period ending December 31, 2016. Six month sales for the period ending December 31, 2017 totaled $10,091,467, compared to sales of $11,347,268 for the same period last year.  The lower sales relates to shifts in delivery dates for some customers from December to January, some customers supplying their own seed rather than using Bevo supplied seed as well as some competitive pressures.

The gross margin for the three months ending December 31, 2017 was $1,636,626, or 29% of sales compared to $1,970,771 (29%) in the same quarter the previous year. The gross margin of $3,058,628 or 30% of sales for the first six months is an increase over $3,019,883 (27%) in gross margin last year.

Expenses totaled $1,432,029 for the three months ending December 31, 2017, with amortization (a non cash expense) being the main contributor of the $106,382 increase in total expenses. A $248,497 increase in amortization for the six months ending December 31, 2017 contributed to total expenses of $2,793,302, compared to $2,524,048 for the same six months last year.

EBITDA (Earnings Before, Interest, Taxes, Depreciation, Amortization) was $1,809,223 for the six months compared to $1,798,748 for the same period last year.

The company has not provided for any bad debts in the second quarter, since accounts receivable which are reviewed monthly, are current and collectible.

Net earnings for the six months ended December 31, 2017 were $196,926, compared to $366,335for the same period last year.

Readers are encouraged to view the Company's unaudited financial statements as at December 31, 2017 and accompanying MD&A at www.sedar.com.

Summary- Consolidated Condensed Statements of Operations and Comprehensive Income


3  months ending

 Dec 31, 2017



 Dec 31, 2016


Change


Sales

$5,580,874

100%


$6,847,115

100%

($1,266,241)

-18%

Cost of Sales

$3,944,248

71%


$4,876,344

71%

($932,096)

-19%

Gross Margin

$1,636,626

29%


$1,970,771

29%

($334,145)

-17%









Expenses








Operating & administrative

$362,750

6%


$353,322

5%

$9,428

3%

Admin fees, wages & benefits

$277,797

5%


$297,482

4%

($19,685)

-7%

Amortization

$598,165

11%


$474,811

7%

$123,354

26%

Interest expenses

$193,317

3%


$200,032

3%

($6,715)

-3%

Total

$1,432,029

26%


$1,325,647

19%

$106,382

8%

Earnings from operations

$204,597

4%


$645,124

9%

($440,527)

-68%

Other








Earnings before taxes

$204,597

4%


$645,124

9%



Income taxes-future

$52,600



$168,315




Net earnings  for period

$151,997

3%


$476,809

7%

($324,812)

-68%

Earnings per share

$0.01



$0.01




EBITDA

$996,079

18%


$1,319,967

19%

($323,888)

-25%

























6 months ending

 Dec 31, 2017



 Dec 31, 2016


Change


Sales

$10,091,467

100%


$11,347,268

100%

($1,255,801)

-11%

Cost of Sales

$7,032,839

70%


$8,327,385

73%

($1,294,546)

-16%

Gross Margin

$3,058,628

30%


$3,019,883

27%

$38,745

1%

Expenses








Operating & administrative

$686,962

7%


$641,357

6%

$45,605

7%

Admin fees, wages & benefits

$562,443

6%


$579,778

5%

($17,335)

-3%

Amortization

$1,153,382

11%


$904,885

8%

$248,497

27%

Interest expenses

$390,515

4%


$398,028

4%

($7,513)

-2%

Total

$2,793,302

28%


$2,524,048

22%

$269,254

11%

Earnings  from operations

$265,326

3%


$495,835

4%

($230,509)

-46%

Other

$0



$0




Earnings before taxes

$265,326

3%


$495,835

4%

($230,509)

-46%

Income taxes-future

$68,400

1%


$129,500

1%

($61,100)

-47%

Net earnings  for period

$196,926

2%


$366,335

3%

($169,409)

-46%

Earnings per share

$0.01



$0.01




EBITDA

$1,809,223

18%


$1,798,748

16%

$10,475

1%

 

Bevo Agro accounts for revenue on a "when goods are shipped" basis.  The following is a 12 month trailing summary of financial performance.








 Dec 31, '17

June 30. '17

 Dec 31, '16

June 30. '16

 Dec 31, '15

Sales

$32,095,484

$33,351,285

$31,226,140

$31,167,250

$27,139,259

Gross Margin

$10,315,485

$10,276,740

$8,809,832

$8,610,294

$7,469,955

Net earnings

$2,886,823

$3,056,232

$2,950,459

$2,825,603

$1,627,490

EBITDA 

$6,574,761

$6,564,286

$6,001,064

$5,806,890

$4,719,558







Shares o/s

26,115,933

25,954,933

25,574,933

25,559,433

25,535,933

Earnings per share

$0.11

$0.12

$0.12

$0.11

$0.06

EBITDA/share

$0.25

$0.25

$0.23

$0.23

$0.18

 

Bevo Agro is North America's leading supplier of propagated agricultural plants, operating approximately 53 acres of greenhouse facilities on 98 acres of land in Langley, BC and 20 acres of land in Pitt Meadows, BC. The Company's main products are the propagation of vegetable plants such as tomatoes, peppers, cucumbers, and other plants such as bedding plants, flowers and grasses.  The Company markets its products to established greenhouse growers, nurseries and retail outlets throughout North America.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

SOURCE Bevo Agro Inc.

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