Ag Services of America Announces Increased Earnings and Revenue for Fiscal 2003.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)--April 24, 2003 Ag Services of America America [for Amerigo Vespucci], the lands of the Western Hemisphere—North America, Central (or Middle) America, and South America. The world map published in 1507 by Martin Waldseemüller is the first known cartographic use of the name. , 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 results for the fiscal year ended February 28, 2003 which included an increase in net revenue of 22% to $197.9 million as compared to $162.0 million in fiscal 2002. Net revenues have been reclassified to a net reporting basis as previously announced. Net income rose 7.7% to $5.9 million, or $1.07 per 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, compared to $5.5 million, or $1.00 per diluted share for the prior year. Fourth quarter net revenue remained flat at $24.0 million as compared to $24.3 million for the prior year. The Company also reported a net loss of $0.1 million, or $0.02 per share for the quarter compared to net income of $0.3 million, or $0.06 per share in the same quarter the previous year. In spite of in opposition to all efforts of; in defiance or contempt of; notwithstanding. See also: Spite considerable challenges related to its secured credit facility this past year, the Company is pleased with year end earnings which actually exceeded previously revised earnings expectations. Demand for the Company's AgriFlex Credit Program continued to grow as a viable alternative to traditional crop input financing in the primary, Midwest market areas. However, continued reductions in the prime interest rate and additional costs associated with new credit facilities credit facilities npl → facilidades fpl de crédito credit facilities npl → facilités fpl de paiement credit facilities , extensions on existing facilities and efforts to secure a new long term credit facility significantly impacted earnings. The Company continues to work towards the closing of its previously announced transaction with American Securities Capital Partners, L.P. (ASCP ASCP American Society of Clinical Pathologists. ). The Company and ASCP entered into a definitive agreement on February 24, 2003. The transaction contemplated by this agreement requires the approval of the Company's shareholders. Proxy materials Proxy Materials Documents regulated by the Securities & Exchange Commission in which a public company outlines its methods and procedures. These documents are used to inform shareholders and solicit votes for corporate decisions, such as the election of directors and other for this meeting have been filed with the Securities Exchange Commission (SEC). The Company anticipates setting a meeting date and mailing proxy materials soon, although no assurances can be made that the transaction will be approved and/or 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. . American Securities Capital Partners is the private-equity investment arm of American Securities, a family office founded in 1947 by the late William Rosenwald, to manage his share of his family's Sears Roebuck fortune. ASCP manages more than $1 billion of committed capital in private equity and is currently investing its third private-equity investment fund with outside investors, which has $650 million of capital committed. 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 agricultural industry and provides ancillary Subordinate; aiding. A legal proceeding that is not the primary dispute but which aids the judgment rendered in or the outcome of the main action. A descriptive term that denotes a legal claim, the existence of which is dependent upon or reasonably linked to a main claim. 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; timing and/or probability of consummating the ASCP transaction; 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 or www.american-securities.com.
(All amounts presented in thousands, except per share amounts)
(Unaudited) (Unaudited)
Three Months Ended Twelve Months Ended
----------------------- ---------------------
Feb. 28, Feb. 28, Feb. 28, Feb. 28,
2003 2002 2003 2002
----------- ----------- ---------- ----------
Net revenues:
Farm inputs $16,592 $17,595 $160,482 $128,739
Financing income 4,919 4,119 29,196 26,536
Customer fees(a) 2,121 2,030 6,605 5,652
Other farm inputs 385 562 1,583 1,070
----------- ----------- ---------- ----------
Net revenues $24,017 $24,306 $197,866 $161,997
----------- ----------- ---------- ----------
Cost of revenues:
Farm inputs $15,249 $16,483 $147,936 $119,098
Financing expense 3,936 2,182 16,205 13,830
Provision for doubtful
notes 1,453 2,050 9,068 7,485
----------- ----------- ---------- ----------
Net cost of revenues $20,638 $20,715 $173,209 $140,413
----------- ----------- ---------- ----------
Gross Profit:
Farm inputs $1,343 $1,112 $12,546 $9,641
Financing 983 1,937 12,991 12,706
Customer fees 2,121 2,030 6,605 5,652
Other farm inputs 385 562 1,583 1,070
Provision for doubtful
notes (1,453) (2,050) (9,068) (7,485)
----------- ----------- ---------- ----------
Gross margin $3,379 $3,591 $24,657 $21,584
Operating expenses 3,756 3,079 15,265 12,679
----------- ----------- ---------- ----------
Income before income
taxes ($377) $512 $9,392 $8,905
Income taxes (262) 192 3,494 3,429
----------- ----------- ---------- ----------
Net income ($115) $320 $5,898 $5,476
=========== =========== ========== ==========
Earnings per share
Basic ($0.02) $0.06 $1.08 $1.01
Diluted ($0.02) $0.06 $1.07 $1.00
Weighted average shares:
Basic 5,479,514 5,279,057 5,477,277 5,415,104
Diluted 5,480,689 5,459,699 5,494,366 5,489,755
(a) Customer fees comprise insurance commissions, net program fees and
application fees.
Income Statement Information (Unaudited):
Twelve Months Ended Twelve Months Ended
2/28/03 2/28/02
------------------- -------------------
Farm input revenue
Seeds 51,651 32.2% 37,235 28.9%
Chemicals 57,867 36.0% 47,687 37.1%
Fertilizers 50,964 31.8% 43,817 34.0%
------------------- -------------------
Total farm input revenue $160,482 100.0% $128,739 100.0%
=================== ===================
Balance Sheet Information
(Unaudited): 2/28/03 2/28/02
----------- ------------
Notes receivables, net $263,150 $254,147
All other assets 19,518 19,654
----------- ------------
Total assets $282,668 $273,801
=========== ============
Liabilities $204,957 $202,334
Equity 77,711 71,467
----------- ------------
Total liabilities and equity $282,668 $273,801
=========== ============
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