Bevo Agro Inc. Reports Fiscal 2018 Results

LANGLEY, BC, Sept. 28, 2018 /CNW/ - Bevo Agro Inc. (TSXV: BVO) is pleased to report our financial results for the fiscal year ending June 30, 2018.

Major 2018 Highlights

• Revenues totaling $32,791,722
• Record EBITDA of $7,710,527, a 9% increase.
• Net earnings of $2,699,154 compared to $3,056,232 last year.
• Earnings per share of $0.10 compared to $0.12 last year.

Net earnings were $2,699,154 for the year ending June 30, 2018 compared to the previous year earnings of  $3,056,232.  Increased income taxes was the main cause of lower earnings. Net earnings for the fourth quarter were $1,620,207, compared to $1,881,623 in Q4 last year.

Sales for the year ending June 30, 2018 of $32,791,772, compared to sales of  $33,351,285 for the year ended June 30, 2017. Sales for the fourth quarter were $16,048,168, on par with sales of $16,151,587 in Q4 last year.

Earnings before interest, taxes, depreciation and amortization (EDITDA) increased by 9% to $7,710,527 for the year ending June 30, 2018, compared to $7,048,609 of EBITDA for the previous  year.  EBITDA for Q4 of fiscal 2018 was $3,918,979, a 16% improvement over $3,374,501 of EBITDA for the same quarter last year.

Operating expenses were lower than the previous year with depreciation expenses approximately $309,000 higher because of increases in fixed assets.

Financial Summary

at June 30	2018	2017
Working Capital	$6,351,321	$5,793,784
Land Greenhouse & Equip	$47,731,363	$42,810,896
Total Debt	$25,539.696	$27,002,590
Shareholder Equity	$30,140,553	$23,646,951
Working Capital Ratio	2.14	2.2
Debt to Equity ratio	0.81	1.15

 

Readers are encouraged to view the Company's audited financial statements at June 30, 2018 and accompanying MD&A at www.sedar.com.

Consolidated Interim Condensed Statements of Operations and Comprehensive Income

12 months ending	June 30. '18			June 30. '17		Variance	Chge
Sales	$32,791,772	100%		$33,351,285	100%	-$559,513	-2%
Cost of Sales	$22,866,868	70%		$23,074,545	69%
Gross Margin	$9,924,904	30%		$10,276,740	31%	-$351,836	-3%
Expenses
General Operating	$1,224,189	4%		$2,260,107	7%	-$1,035,918	-46%
Employee Benefits	$1,478,668	5%		$1,480,053	4%	-$1,385	0%
Amortization	$2,383,416	7%		$2,073,452	6%	$309,964	15%
Interest expenses	$798,726	2%		$827,284	2%	-$28,558	-3%
Total expenses	$5,884,999	18%		$6,640,896	20%	-$755,897	-11%
Earnings (loss) from operations	$4,039,905	12%		$3,635,844	11%	$404,061	11%
Other	$488,480			$27,706		$460,774	1663%
Earnings before taxes	$4,528,385			$3,663,550		$864,835	24%
Income taxes-current	$1,229,025			$0		$1,229,025
Income taxes-future	$600,206			$1,091,641		-$491,435	-45%
Net earnings for period	$2,699,154	8%		$2,571,909	9%	$127,245	5%
Loss attributed to CubicFarms				$484,323
Net earnings for period	$2,699,154			$3,056,232
EBITDA	$7,710,527	24%		$7,048,609	21%	$661,918	9%
Consolidated Interim Condensed Statements of Operations and Comprehensive Income for 3 months
3 months ending	June 30. '18			June 30. '17		Variance	Chge
Sales	$16,048,168	100%		$16,151,587	100%	-$103,419	-1%
Cost of Sales	$11,735,075	73%		$11,388,874	71%	$346,201	3%
Gross Margin	$4,313,093	27%		$4,762,713	29%	-$449,620	-9%
Expenses
General Operating	$260,063	2%		$1,276,767	8%	-$1,016,704	-80%
Employee Benefits	$622,531	4%		$623,474	4%	-$943	0%
Amortization	$632,346	4%		$598,020	4%	$34,326	6%
Interest expenses	$216,295	1%		$215,817	1%	$478	0%
Total expenses	$1,731,235	11%		$2,714,078	17%	-$982,843	-36%
Earnings from operations	$2,581,858	16%		$2,048,635	13%	$533,223	26%
Other	$488,480			$27,706		$460,774	1663%
Earnings before taxes	$3,070,338			$2,076,341		$993,997	48%
Income taxes-future	$221,106			$679,041			5%
Income taxes-current	$1,229,025
Net earnings for period	$1,620,207	15%		$1,397,300	9%	$222,907	69%
Loss attributed to CubicFarms	0			$484,323
Net Income & Comprehensive	$1,620,207	10%		$1,881,623	12%	-$261,416	-14%
EBITDA	$3,918,979	24%		$3,374,501	18%	$544,478	16%

 

Bevo Agro maintains a balance of fixed and floating rates on borrowings as a hedge against interest rate fluctuations.  From a balance sheet perspective, the Company maintains enough working capital to manage its business and to maintain conservative financial ratios.

Bevo's sales fluctuate by quarter depending on type of crop and client demands. Typically, the third and fourth quarters account for most 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 ending	June 30. '18	June 30. '17	June 30. '16	June 30. '15
Sales	$32,791,772	$33,351,285	$31,167,250	$26,221,677
Gross Margin	$9,924,904	$10,276,740	$8,610,294	$6,801,354
Earnings from operations	$4,039,905	$3,635,844	$3,219,358	$1,441,805
Net earnings for period	$2,699,154	$3,056,232	$2,825,603	$1,197,556
EBITDA	$7,710,527	$7,048,609	$5,806,890	$4,078,579
Cash Flow	$6,911,801	$6,221,325	$5,030,578	$3,222,765

 

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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