Ag Services Announces Second 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)--Sept. 25, 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 three months ended August 31, 2001 increased to $110.3 million compared to $103.5 million one year ago. Net earnings for the quarter was $2.0 million, or $0.37 per diluted share compared to $2.7 million, or $0.50 per diluted share for the same period last year. Decreased interest rates reduced earnings on invested capital and negatively affected an interest rate swap Interest Rate Swap A deal between banks or companies where borrowers switch floating-rate loans for fixed rate loans in another country. These can be either the same or different currencies. agreement for the second quarter of Fiscal 2002. Net revenues for the six months ended August 31, 2001 increased 6% to $274.5 million from $259.3 million one year ago. Net income for the first six months of Fiscal 2002 was $3.9 million, or $0.70 per diluted share, compared to $5.9 million, or $1.06 per diluted share for the first six months of Fiscal 2001. These results were slightly better than the Company initially indicated. "Fiscal 2002 results have been impacted significantly by changes in crops planted by our customers and reduced interest rates," stated Brad Schlotfeldt, Senior Executive Officer. "Cool, wet weather delayed crop planting 4 to 5 weeks compared to last year throughout much of our primary market area which caused many customers to switch plans on crops to be planted and to leave a number of acres unplanted. This decreased a portion of our seed, chemical and fertilizer sales. In addition, the decline 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 significantly reduced earnings on our invested capital and negatively affected an interest rate swap agreement on our $30 million term note put in place in July of 2000." In the first six months of Fiscal 2002, revenues attributable to Powerfarm increased in excess of 300% to approximately $3.3 million compared to $0.7 million for the same period last year. The impact on earnings per share for the first six months of Fiscal 2002 was a loss of $0.05 per diluted share compared to a loss of $0.08 per diluted share one year ago. The Company is currently in the process of planning for the 2002 crop year. District sales managers sales manager n → gerente m/f de ventas sales manager n → directeur commercial sales manager sale n → have been added to increase Ag Services' presence in Missouri, North Carolina North Carolina, state in the SE United States. It is bordered by the Atlantic Ocean (E), South Carolina and Georgia (S), Tennessee (W), and Virginia (N). Facts and Figures Area, 52,586 sq mi (136,198 sq km). Pop. and Ohio. The Company is also having discussions with various suppliers about expanding their Seed and Chemical Financing Programs as well as supporting the growth of Agri-Flex Credit(R). Management is confident in the opportunities to resume Ag Services' growth in the future. 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 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, Powerfarm.com and Powerfarm Credit are registered 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) (Unaudited)
Three Months Ended Six Months Ended
--------------------- ---------------------
August 31, August 31, August 31, August 31,
2001 2000 2001 2000
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Net revenues:
Farm inputs $ 101,600 $ 92,866 $ 259,501 $ 242,616
Financing 8,710 10,664 14,969 16,716
---------- ---------- ---------- ----------
Net revenues $ 110,310 $ 103,530 $ 274,470 $ 259,332
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Cost of revenues:
Farm inputs $ 97,258 $ 88,731 $ 248,681 $ 230,854
Financing 4,517 5,491 7,907 8,329
Provision for doubtful
notes 1,924 1,823 4,952 4,584
---------- ---------- ---------- ----------
Net cost of revenues $ 103,699 $ 96,045 $ 261,540 $ 243,767
---------- ---------- ---------- ----------
Gross Profit:
Farm inputs $ 4,342 $ 4,135 $ 10,820 $ 11,762
Financing 4,193 5,173 7,062 8,387
Provision for doubtful
notes (1,924) (1,823) (4,952) (4,584)
---------- ---------- ---------- ----------
Gross margin $ 6,611 $ 7,485 $ 12,930 $ 15,565
Operating expenses 3,172 3,082 6,522 6,192
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Income before income
taxes $ 3,439 $ 4,403 $ 6,408 $ 9,373
Federal and state income
taxes 1,415 1,670 2,549 3,515
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Net income $ 2,024 $ 2,733 $ 3,859 $ 5,858
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Earnings per share
Basic $ 0.37 $ 0.52 $ 0.72 $ 1.11
Diluted $ 0.37 $ 0.50 $ 0.70 $ 1.06
Weighted average shares:
Basic 5,451,250 5,268,664 5,368,834 5,265,269
Diluted 5,504,140 5,475,886 5,487,861 5,521,270
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