Market Overview

AGI Announces Fourth Quarter and Annual 2018 Results; Declares Dividends

Share:

WINNIPEG, March 14, 2019 /CNW/ - Ag Growth International Inc. (TSX:AFN) ("AGI", the "Company", "we" or "our") today announced its financial results for the three months and year ended December 31, 2018, and declared dividends for March, April and May 2019.

Overview of Results


Three-months Ended
December 31

Year Ended

December 31

[thousands of dollars except per
share amounts]

2018

$

2017

$

2018

$

2017

$

Trade sales [1][2][4]

214,195

167,691

934,063

750,287

Adjusted EBITDA [1][3][4]

28,014

19,715

148,195

121,797

Profit [4]

(11,861)

(1,800)

26,618

33,664

Diluted profit per share [4]

(0.66)

(0.11)

1.56

2.08

Adjusted profit [1][4]

11,766

3,319

58,148

37,917

Diluted adjusted profit per share [1] [4][5]

0.66

0.20

3.38

2.35






[1]

See "Non-IFRS Measures".

[2]

See "Operating Results – Year Ended December 31, 2018 - Trade Sales" and "Quarter Ended December 31, 2018 – Trade Sales" in our Management's Discussion and Analysis for the year ended December 31, 2018 ("MD&A") for the reconciliation of trade sales to sales.

[3]

See "Operating Results - Year Ended December 31, 2018 - EBITDA and Adjusted EBITDA" and "Quarter Ended December 31, 2018 - EBITDA and Adjusted EBITDA" in our MD&A for the reconciliation of EBITDA and Adjusted EBITDA to profit.

[4]

The Company adopted IFRS 15 in 2018 without retrospective application and as a result reversed sales and adjusted EBITDA of $5.3 million and $1.5 million, respectively, that under IAS 18 had previously been recognized in 2017. For purposes of comparability, where applicable, these amounts have been adjusted for in the 2017 figures in the above table and elsewhere in this press release.

[5]

See "Detailed Operating Results – Year Ended December 31, 2018 - Diluted profit per share and diluted adjusted profit per share" and "Quarter Ended December 31, 2018 – Diluted profit per share and diluted adjusted profit per share" in our MD&A for the reconciliation of adjusted profit to profit.

Trade sales and adjusted EBITDA increased significantly in the fourth quarter of 2018 due to strength in international markets, continued momentum in the Canadian Commercial market and contributions from acquisitions. Adjusted EBITDA as a percentage of sales in the quarter reflected seasonal patterns and was consistent with 2017. AGI Brazil posted a loss for the quarter, despite an increase in sales, largely due to a significant warranty provision related to damaged steel and expenses incurred in delivery and assembly as we improve our distribution model in Brazil. In the quarter, net profit was negatively impacted by a non-cash foreign exchange loss on U.S. dollar denominated debt and a non-cash loss on the Company's equity compensation swap, however adjusted profit and profit per share increased significantly compared to the prior year.

"A strong fourth quarter closed off a record year for AGI in 2018", said Tim Close, President and CEO of AGI. "We made significant progress against our 5-6-7 strategy throughout 2018, resulting in organic sales growth of 12.8%. We kicked off 2019 with three acquisitions as AGI added significantly to its Food platform and made two transformational additions, one to its technology platform and more recently to establish a solid platform in India. Moving into 2019, a prolonged winter has impacted projects and deliveries, pushing some sales into the second quarter, however we expect continued organic growth in 2019 augmented with significant contributions from acquisitions."

Trade sales and adjusted EBITDA for the year ended December 31, 2018 were at record levels, significantly exceeding 2017 results. Farm sales increased over 2017 as higher sales in the U.S. and contributions from acquisitions more than offset an expected decrease in Canada from record 2017 levels. Continued momentum in the Canadian grain and fertilizer platforms along with robust international demand resulted in a significant increase in Commercial sales over the prior year. Net profit was negatively impacted by the non-cash foreign exchange loss on U.S. dollar denominated debt and the non-cash loss on the Company's equity compensation swap, however adjusted profit and profit per share increased significantly compared to the prior year. AGI entered 2019 with record backlogs and anticipates continued momentum in both its Farm and Commercial businesses (see "Outlook").

Diluted profit per share and diluted adjusted profit per share [5]

Diluted profit per share for the year ended December 31, 2018 was $1.56 [2017 - $2.08[5]]. Profit (loss) per share in 2018 and 2017 has been impacted by the items enumerated in the table below, which reconciles profit to adjusted profit:


Three-months Ended
December 31

Year Ended

December 31

[thousands of dollars except per share
amounts]

2018

$

2017

$

2018

$

2017

$

Profit (loss) [5]

(11,861)

(1,800)

26,618

33,664

Diluted profit per share [5]

(0.66)

(0.11)

1.56

2.08






Loss (gain) on foreign exchange

9,084

1,491

19,004

(11,578)

Fair value of inventory from acquisition [2]

-

(1)

1,183

5,037

M&A expenses

833

289

2,283

1,259

Other transaction and transitional costs [3]

3,108

644

6,582

7,506

Loss (gain) on financial instruments

10,562

(11)

2,061

(357)

Loss on sale of PP&E

48

1,012

193

46

Gain on disposal of assets held for sale

(8)

(955)

(8)

(955)

View Comments and Join the Discussion!
 
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com