AgriBioTech Inc. announces its first profitable quarter and record growth in sales, assets & equity.LAS VEGAS--(BUSINESS WIRE)--May 13, 1997--Dr. Johnny R. Thomas, CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of AgriBioTech Inc. (NASDAQ/NM:ABTX) announced record revenues of $20,223,487, an increase of 108% from the prior year, and profits of $1,285,044 or 7 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. for the third fiscal quarter, ended March 31, 1997. In comparison, revenues were $9,743,741 with a loss of $255,774 or 3 cents per share for the comparable quarter of the preceding year. For the nine months, year to date, record revenues are $41,164,828 with a net loss of $1,188,926 or 9 cents per share as compared with revenues of $16,676,415 with a net loss of $1,965,576 or 27 cents per share for the comparable nine months of the preceding year. Assets of the company on March 31, 1997 were $55,290,355 as compared with $26,277,488 a year earlier and equity was $26,056,205 as compared with $6,900,566, increases of 110% and 278%, respectively. Management is pleased with the operating results for the quarter and year to date. Operating results, to date, confirm the validity of the company's operating plan. For example, 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. as a percentage of net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight have declined to 19.7% for the third quarter as compared with 27.3% for the comparable quarter a year ago. Similar year to date comparisons are 26.3% for this year as compared with 36% for the prior year. The company has grown revenues internally, while maintaining the revenue base of its 11 acquisitions. Historical revenues for the 11 acquisitions are approximately $57 million annually. The company is on target to exceed $55 million in revenues this fiscal year, even though its largest acquisition will be operated for only 10 months. Annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. revenues in fiscal 1998 for current operations are expected to be about $64 million. As it initiated its acquisition strategy two years ago, management projected that the third quarter of fiscal 1997 would be the company's first profitable quarter. The company's policy has been to build infrastructure ahead of revenues and to expect a time lag for implementing synergies. (Graphics illustrating this point are available from the company upon request.) Although operating results confirm the validity of the company's operating plan, it should be noted that management continues to make all decisions to assure success of the long term plan, at the possible expense of short term earnings. "The ultimate value of AgriBioTech will depend upon our success in building a strong platform as measured by market share, people and access to biotechnology," according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Thomas. Profits were less than originally budgeted due to management's decision to build infrastructure faster than budgeted, delayed opportunities to implement some synergies due to delayed closing of some acquisitions (such as W-L and Germain's) and adverse weather conditions. The company is 6-9 months behind expected time tables for certain synergies for the reasons stated above. Consequently, it is unlikely that the company will be profitable for the current fiscal year, although the company is on target for a profitable year in fiscal 1998. The company has accelerated expansion of people resources with new hirings in accounting and management, such as Byron Ford Byron Ford (born January 8, 1982 in Sydney, Australia) is a rugby league player for Oldham Roughyeds in National League 2. He is currently on loan at Oldham Roughyeds. , vice president corporate development and strategic planning Strategic planning is an organization's process of defining its strategy, or direction, and making decisions on allocating its resources to pursue this strategy, including its capital and people. . These accelerations were made to assure that the company has the personnel resources necessary to double its annualized revenue base by Sept. 30, 1997, effect a reorganization plan A scheme authorized by federal law and promulgated by the president whereby he or she alters the structure of federal agencies to promote government efficiency and economy through a transfer, consolidation, coordination, authorization, or abolition of functions. to maximize future performance and accelerate access to biotechnology. The company is on schedule for all these vital performance criteria. -0-
AgriBioTech Inc.
Unaudited Consolidated Financial Information
(in thousands, except net earnings (loss) per share)
Year To Date
Third Quarter (9 months)
1997 1996 1997 1996
Assets at 3/31 55,290 26,277 55,290 26,277
Equity at 3/31 26,056 6,901 26,056 6,901
Net sales 20,223 9,744 41,165 16,676
Net earnings (loss) 1,285 (256) (1,189) (1,966)
Net earnings (loss) per share 0.07 (0.03) (0.09) (0.27)
Average shares 18,397 7,567 13,301 7,345
The statements discussed in this news release include forward looking statements that involve a number of risks and uncertainties. These include the company's lack of profitability, need to manage its growth, intense competition in the seed industry, seasonality of quarterly results, and other risks detailed from time to time in the company's SEC reports. AgriBioTech is a fully integrated full service seed company specializing in the forage forage Vegetable food, including corn and hay, of wild or domestic animals. Harvested, processed, and stored forage is called silage. Forage should be harvested in early maturity to avoid a decrease in protein and fibre content as crops mature. and turf turf: see lawn. turf In horticulture, the surface layer of soil with its matted, dense vegetation, usually grasses grown for ornamental or recreational use. seed sector, complete with research and development of proprietary seed varieties, seed processing plants, and a national distribution and sales network. The company has completed 11 acquisitions since Jan. 1, 1995 and is now the fourth largest forage seed company in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . CONTACT: AgriBioTech Inc., Las Vegas Las Vegas (läs vā`gəs), city (1990 pop. 258,295), seat of Clark co., S Nev.; inc. 1911. It is the largest city in Nevada and the center of one of the fastest-growing urban areas in the United States. John C. Francis, 702/798-1969 |
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