Ag Services Announces Increased Revenues and Earnings for the 3rd Quarter.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)--Dec. 23, 2002 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 income for the third quarter of the fiscal year ending February 28, 2003 ("Fiscal 2003") increased 4.4% to $1.4 million, compared to $1.3 million for the same period one year ago. Net revenues for the same periods increased 22% to $30.6 million from $25.1 million last year. Net income for the nine months ended November 30, 2002 increased 16.6% to $6.0 million as compared to $5.2 million for the same period one year ago. Net revenues for the nine months ended November 30, 2002 were $391.1 million, which was a 30.6% increase over the prior year of $299.6 million. The 30.6% increase in net revenues was realized primarily through increasing demand for the Company's AgriFlex Credit(R) financing program. The convenience, flexibility and service within the program, plus the internal focus and efforts placed on customer support throughout all areas of the Company has contributed to high customer retention and a demand for the program. Gross margin on the sale of farm inputs increased 33% for the first nine months as the Company continues to focus on its primary market areas. Net financing income increased 11% for the first nine months over last year but was reduced by a 200 basis point decline in interest rates from one year ago which lowered the Company's return on equity. Despite a 20% increase in operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. over last year through November 30, 2002, operating expenses as a percentage of net revenues have continued to decline to 2.9% compared to 3.2% for the same period one year ago. Management's outlook for Fiscal 2003 earnings has been revised and estimated to be in the range of $1.00 to $1.05 per fully diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share. This revision from previous estimates is related to additional costs associated with the Company's recently announced $100 million credit facility and extensions on its existing credit facilities credit facilities npl → facilidades fpl de crédito credit facilities npl → facilités fpl de paiement credit facilities . As previously announced on November 14th the Company signed a letter of intent with American Securities Capital Partners, L.P. (ASCP ASCP American Society of Clinical Pathologists. ), a New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of private-equity investment firm, under which ASCP will make investments in the Company up to an aggregate of $70 million in three annual investments. The first investment of $35 million is targeted on or around February 28, 2003. All investments are subject to, among other things, satisfactory completion of due diligence Research; analysis; your homework. This term has caught on in all industries, because it sounds so "wired." Who would want to do analysis or research when they can do due diligence. See wired. , Ag Services replacement of its current secured credit facilities and shareholder approval. There can be no assurance at this time that this investment will be consummated con·sum·mate tr.v. con·sum·mat·ed, con·sum·mat·ing, con·sum·mates 1. a. To bring to completion or fruition; conclude: consummate a business transaction. b. . A conference call on nine-month 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 December 23, 2002. To listen live call (888) 413-2121. A recording of the call will be available for replay until January 6, 2003 at (888) 266-2081 or (703) 925-2533 code #6358216. Ag Services of America, Inc. 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 crop input financing and agricultural inputs, including seed, chemicals and fertilizers 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, 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, Syngenta and 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". . The Company also administers additional financing programs for various suppliers, manufacturers and distributors in the agriculture industry and provides ancillary services such as crop insurance 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: availability of adequate debt and equity financing Equity Financing The act of raising money for company activities by selling common or preferred stock to individual or institutional investors. In return for the money paid, shareholders receive ownership interests in the corporation. ; 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 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. (All amounts presented in thousands, except per share amounts)
(Unaudited) (Unaudited)
Three Months Ended Nine Months Ended
--------------------- ---------------------
November November November November
30, 2002 30, 2001 30, 2002 30, 2001
---------- ---------- ---------- ----------
Net revenues:
Farm inputs $21,744 $17,656 $366,832 $277,156
Financing 8,874 7,448 24,277 22,417
---------- ---------- ---------- ----------
Net revenues $30,618 $25,104 $391,109 $299,573
---------- ---------- ---------- ----------
Cost of revenues:
Farm inputs $19,600 $15,816 $349,948 $264,497
Financing 4,419 3,741 12,268 11,648
Provision for doubtful
notes 711 484 7,616 5,435
---------- ---------- ---------- ----------
Net cost of revenues $24,730 $20,041 $369,832 $281,580
---------- ---------- ---------- ----------
Gross Profit:
Farm inputs $2,144 $1,840 $16,884 $12,659
Financing 4,455 3,707 12,009 10,769
Provision for doubtful
notes (711) (484) (7,616) (5,435)
---------- ---------- ---------- ----------
Gross margin $5,888 $5,063 $21,277 $17,993
Operating expenses 3,694 3,078 11,508 9,601
---------- ---------- ---------- ----------
Income before income taxes $2,194 $1,985 $9,769 $8,392
Federal and state income
taxes 840 688 3,756 3,237
---------- ---------- ---------- ----------
Net income $1,354 $1,297 $6,013 $5,155
========== ========== ========== ==========
Earnings per share
Basic $0.25 $0.24 $1.10 $0.95
Diluted $0.25 $0.24 $1.09 $0.94
Weighted average shares:
Basic 5,479,514 5,458,490 5,476,521 5,398,336
Diluted 5,489,903 5,487,455 5,502,488 5,487,956
Income Statement Information Nine Months Nine Months
(Unaudited): Ended Ended
11/30/02 11/30/01
--------------- ---------------
Farm input revenue
Input only program $27,765 7.6% $9,797 3.5%
Seeds 46,955 12.8% 32,302 11.6%
Chemicals 54,425 14.8% 43,167 15.6%
Fertilizers 42,510 11.6% 35,674 12.9%
Other farm inputs (cash rents,
irrigation, etc.) 190,693 52.0% 152,595 55.1%
Other services (insurance, fees,
etc.) 4,484 1.2% 3,622 1.3%
--------------- ---------------
Total farm input revenue $366,832 100.0% $277,157 100.0%
=============== ===============
Balance Sheet Information (Unaudited): 11/30/02 11/30/01
--------- ---------
Notes receivables, net $423,106 $309,071
All other assets 22,588 24,337
--------- ---------
Total assets $445,694 $333,408
========= =========
Liabilities $368,025 $263,064
Equity 77,669 70,344
--------- ---------
Total liabilities and equity $445,694 $333,408
========= =========
|
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion