Ag Services Announces First Quarter Results.Business Editors CEDAR FALLS Cedar Falls, city (1990 pop. 34,298), Black Hawk co., N Iowa, on the Cedar River; inc. 1854. It developed as a milling center in the late 19th-century after the coming of the railroad; its name is derived from the cedar tree. , Iowa--(BUSINESS WIRE)--June 27, 2001 Ag Services of America, Inc. (NYSE NYSE See: New York Stock Exchange :ASV ASV abbr. Bible American Standard Version ASV n abbr (= American Standard Version) → traduction de la Bible ASV n abbr (Bible) (= ) today announced that net revenues for the first quarter of Fiscal 2002 increased 5.3% to $164.2 million as compared to $155.8 million for the same period one year ago. Net income for the first quarter of Fiscal 2002 was $1.8 million, or $0.34 per diluted share. Net income was $3.1 million, or $0.57 per diluted share, for the first quarter of Fiscal 2001. "Our Fiscal 2002 first quarter results were impacted by delays in chemical and fertilizer sales due to wet weather conditions in much of our primary market area," stated Brad Schlotfeldt, Senior Executive Officer. "The cool and wet weather has delayed the current crop-growing season approximately two to three weeks compared to a normal planting season and roughly four to five weeks behind last year's early crop season throughout our primary market area. Wet and cool conditions in areas of North Dakota North Dakota, state in the N central United States. It is bordered by Minnesota, across the Red River of the North (E), South Dakota (S), Montana (W), and the Canadian provinces of Saskatchewan and Manitoba (N). , South Dakota South Dakota (dəkō`tə), state in the N central United States. It is bordered by North Dakota (N), Minnesota and Iowa (E), Nebraska (S), and Wyoming and Montana (W). , Minnesota, portions of Iowa and Nebraska have caused producers to switch crop rotations and leave a small percentage of acres unplanted. Declines in the prime lending rate The lowest rate of interest that a financial institution, such as a bank, charges its best customers, usually large corporations, for short-term unsecured loans. The prime lending rate is an economic indicator and is often used as a measuring point for adjusting interest , which is the base rate we use to charge interest on a variable rate basis to our customers, also impacted the first quarter earnings. The decline in the prime lending rate has the effect of reducing earnings on our invested capital. We do not believe that first quarter results will be indicative of our Fiscal year end results." In the first quarter of Fiscal 2002, revenues attributable to Powerfarm increased four-fold to approximately $1.7 million as compared to last year's level of $0.4 million. The impact on earnings per share from Powerfarm was a loss of $0.03 per diluted share for the first quarter of Fiscal 2002, as compared to a loss $0.04 a diluted share, one year ago. Looking forward, the Company anticipates that delayed first quarter chemical and fertilizer sales will be realized in the second quarter. In addition to the switching of crop rotations, unplanted acres and the lower interest rate environment discussed above, the Company also took a cautious and conservative approach to credit approvals in Washington and Idaho due to economic conditions involving the potato and apple markets. This approach resulted in a higher than normal rejection rate which reduced our volume in those states. Given the effect of these items, the Company expects that fiscal year revenues will increase in the range of 10 to 13% and earnings to increase between 3 - 10% over prior year's levels. A conference call on first quarter results will occur at 10:30 a.m. Eastern, 9:30 a.m. CST CST abbr. 1. Central Standard Time 2. convulsive shock treatment CST Central Standard Time Noun 1. on June 27, 2001. To listen live call (888) 481-9042. A recording of the call will be available for replay until July 11, 2001 at (888) 836-6074 or (703) 925-2505 code No.5324695. Ag Services of America, Inc., which operates Powerfarm.com, is based in Cedar Falls, Iowa Cedar Falls is a city in Black Hawk County, Iowa, United States, and it is home to one of Iowa's three public universities, the University of Northern Iowa. The population was 36,145 at the 2000 census. , and is a leading supplier of input financing and agricultural inputs, including seed, chemicals, fertilizer and cash advances to primarily corn and soybean soybean, soya bean, or soy pea, leguminous plant (Glycine max, G. soja, or Soja max) of the family Leguminosae (pulse family), native to tropical and warm temperate regions of Asia, where it has been growers in the U.S. The Company's one-stop shopping business model includes competitive and flexible financing packages through its AgriFlex Credit(R) program combined with the most comprehensive offering of agricultural inputs from national sources such as Asgrow, Aventis, BASF BASF Bar Association of San Francisco (since 1872; San Francisco, California) BASF Badische Anilin und Soda Fabrik (German chemical products company) BASF Builders Association of South Florida , Dekalb, Dow AgroSciences Dow AgroSciences LLC is a wholly owned subsidiary of the Dow Chemical Company specializing in not only agricultural chemicals such as pesticides, but also seeds and biotechnology solutions. The company is based in Indianapolis, Indiana, in the United States. , DuPont, Garst, Monsanto, Pioneer Hi-Bred Pioneer Hi-Bred is one of the largest U.S. companies which produces hybrid seeds for agriculture. History In 1926, farm journal editor and future U.S. Vice President Henry A. Wallace, along with a group of Des Moines, Iowa businessmen, started the "Hi-Bred Corn Company". , and Syngenta. The Company also provides ancillary services such as crop insurance, crop scouting scouting: see Boy Scouts; Girl Scouts. scouting Activities of various national and worldwide organizations for youth aimed at developing character, citizenship, and individual skills. Scouting began when Robert S. and grain marketing. The Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995 provides a "safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " for forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. . This release contains forward-looking statements based on current expectations that involve a number of risks and uncertainties. The factors that could cause actual results to differ materially, include the following: general economic conditions within the agricultural industry; competitive factors and pricing pressures; changes in product mix; changes in the seasonality of demand patterns; changes in weather conditions; changes in agricultural regulations; unknown risks; the amount and availability under its asset backed securitization Securitization The process of creating a financial instrument by combining other financial assets and then marketing them to investors. Notes: Mortgage backed securities are a perfect example of securitization. May also be spelled as "securitisation. program; and the risks described from time to time in the Company's SEC reports. AgriFlex Credit is a registered trademark and Powerfarm.com and Powerfarm Credit are trademarks of Ag Services of America, Inc. All other trademarks or product names are the property of their respective owners. For more information visit www.agservices.com or www.powerfarm.com.
Unaudited
Three months ended
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May 31, May 31,
2001 2000
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Net revenue:
Farm inputs $157,901 $149,750
Financing 6,259 6,052
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Net revenue $164,160 $155,802
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Cost of revenue:
Farm inputs $151,423 $142,123
Financing 3,391 2,838
Provision for doubtful notes 3,026 2,761
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Net cost of revenue $157,841 $147,722
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Gross Profit:
Farm inputs $6,478 $7,627
Financing 2,868 3,214
Provision for doubtful notes (3,026) (2,761)
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Gross margin $6,319 $8,080
Operating expenses 3,351 3,110
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Income before income taxes $2,968 $4,970
Federal and state income taxes 1,134 1,845
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Net income $1,834 $3,125
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Earnings per share
Basic $0.35 $0.59
Diluted $0.34 $0.57
Weighted average shares:
Basic 5,283,773 5,255,622
Diluted 5,471,079 5,530,827
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