Bevo Agro Inc. Announces 2018 Third Quarter Results

LANGLEY, BC, May 24, 2018 /CNW/ - Bevo Agro Inc. (BVO:TSXV) reports  sales totaled $6,652,137 for the third quarter ending March 31, 2018, a 14% increase over sales of $5,852,430 for the three months ending March 31, 2017.  New customers, an increase in orders from existing customers as well as a carry-over of orders from the second quarter all contributed to the increase.

Sales for the nine months ending March 31, 2018 totaled $16,743,604, compared to sales of $17,199,698 for the same nine months last year.

The gross profit for the three months ending March 31, 2018 totaled $2,553,183 compared to the gross profit of $2,494,144 for the three months the previous year.

Operating expenses for the three months were $1,360,462 compared $1,402,770 in the same period last year.

EBITDA (Earnings before interest, taxes, depreciation and amortization) was $1,982,325 and $3,791,548 respectively for the three and nine-month periods ending March 2018, both increases over the previous periods.  EBITDA for the same periods last year was $1,875,360 for three months and $3,674,108 for the nine months.

Net comprehensive income after allowance for income taxes was $882,021 for the three months and $1,078,947 for the nine-month period. During the same period last year, net income was $808,274 and $1,174,609 for the three and nine months.

Readers are encouraged to view the Company's unaudited financial statements as at March 31, 2018, and accompanying MD&A at www.sedar.com.

Financial Summary

Consolidated Interim Condensed Statements of Operations and Comprehensive Income

3 months ending	Mar 31 ,2018		Mar 31 ,2017		Change
Sales	$6,652,137	100%	$5,852,430	100%	$799,707	14%
Cost of Sales	$4,098,954	62%	$3,358,286	57%	$740,668	22%
Gross Margin	$2,553,183	38%	$2,494,144	43%	$59,039	2%
Expenses
Operating & admin	$277,164	4%	$341,983	6%	-$64,819	-19%
Admin fees, wages & benefits	$293,694	4%	$276,801	5%	$16,893	6%
Amortization	$597,688	9%	$570,547	10%	$27,141	5%
Interest expenses	$191,916	3%	$213,439	4%	-$21,523	-10%
Total expenses	$1,360,462	20%	$1,402,770	24%	-$42,308	-3%
Earnings from operations	$1,192,721	18%	$1,091,374	19%	$101,347	9%
Income taxes-future	$310,700		$283,100		$27,600	10%
Net earnings for period	$882,021	13%	$808,274	14%	$73,747	9%
EBITDA	$1,982,325	30%	$1,875,360	32%	$106,965	6%
Earnings Share	$0.03		$0.03
EBITDA/Share	$0.08		$0.08
9 months ending	Mar 31 ,2018		Mar 31 ,2017		Change
Sales	$16,743,604	100%	$17,199,698	100%	-$456,094	-3%
Cost of Sales	$11,131,793	66%	$11,685,671	68%	-$553,878	-5%
Gross Margin	$5,611,811	34%	$5,514,027	32%	$97,784	2%
Operating & admin	$964,126	6%	$983,340	6%	-$19,214	-2%
Admin fees, wages & benefits	$856,137	5%	$856,579	5%	-$442	0%
Amortization	$1,751,070	10%	$1,475,432	9%	$275,638	19%
Interest expenses	$582,431	3%	$611,467	4%	-$29,036	-5%
Total expenses	$4,153,764	25%	$3,926,818	23%	$226,946	6%
Earnings from operations	$1,458,047	9%	$1,587,209	9%	-$129,162	-8%
Income taxes-future	$379,100	2%	$412,600	2%	-$33,500	-8%
Net earnings for period	$1,078,947	6%	$1,174,609	7%	-$95,662	-8%
EBITDA	$3,791,548	23%	$3,674,108	21%	$117,440	3%
Earnings per share	$0.04		$0.04
EBITDA/Share	$0.14		$0.14

 

Bevo's sales fluctuate by quarter depending on type of crop and client demands. Typically, the third and fourth quarters account for a majority of sales.  Bevo accounts for sales as "when goods are shipped" and believes the following 12-month trailing summary of financial performance is more indicative of financial performance. 

Bevo's trailing twelve months results are summarized below
12 months ended	Mar. 31, 2015	Mar 31 ,2016	Mar 31 ,2017	Mar 31 ,2018
Sales	$26,047,687	$29,057,300	$30,310,226	$32,895,191
Gross Margin	$6,376,278	$7,974,696	$8,803,161	$10,374,524
Earnings before taxes	$1,198,837	$2,604,017	$3,285,838	$3,534,388
Net earnings for period	$948,757	$2,007,307	$2,874,873	$2,960,570
EBITDA	$3,720,432	$5,219,182	$6,025,380	$6,681,726

 

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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