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AG SERVICES OF AMERICA, INC., ANNOUNCES SECOND QUARTER RESULTS

 CEDAR FALLS, Iowa, Sept. 21 /PRNewswire/ -- Ag Services of America, Inc. (NASDAQ-NMS: AGSV) today reported second quarter results. During the three months ended Aug. 31, 1993, the company reported record net revenues of $25.1 million compared with $17.8 million for the three months ended Aug. 31, 1992. Net income for the three months ended Aug. 31, 1993 was $942,998 or $0.52 per share compared with $520,801 or $0.30 per share for the same period last year.
 For the six months ended Aug. 31, 1993, the company also reported record net revenues of $51.3 million compared with $43.1 million for the six months ended Aug. 31, 1992. Net income for the six months ended Aug. 31, 1993 was $1,672,452 or $0.93 per share compared with $1,376,063 or $0.79 per share for the same period last year.
 Continued wet weather conditions experienced in portions of the Midwest during the spring and summer has impacted net revenues more than originally anticipated. Although there has been no effect on the company's collateral position because of the company's requirement of federal or multi-peril crop insurance carried by all customers before extending credit, net revenues and net income have been effected. The expected growth in net revenues and net income has been weakened due to reduced fertilizer application to crop land, the switching from corn acres to soybean acres, which cost less to produce, and, in some cases, farmers electing to switch and receive payment under the 0-92 government program where no crops are planted. However, the impact is not considered to be substantial and the company's management is pleased with the results for the first two quarters of fiscal 1994 giving consideration to the extreme weather conditions.
 Included in the comparative numbers for a year ago is the settlement of a lawsuit on Sept. 2, 1992, the effect of which, resulted in the company's recording of a non-recurring pretax charge of $490,000 for the quarter and six months ended Aug. 31, 1992.
 Ag Services of America, Inc. supplies farm inputs including seed, fertilizer, agricultural chemicals, crop insurance, and cash advances for land rent, fuel, and irrigation to farmers primarily in the central United States.
 AG SERVICES OF AMERICA, INC.
 (Unaudited)
 (In thousands except per share amounts)
 Three Months Ended Six Months Ended
 8/31/93 8/31/92 8/31/93 8/31/92
 Net revenues $25,104 $17,816 $51,279 $43,054
 Income before income
 taxes 1,477 820 2,620 2,166
 Net income $943 $521 $1,672 $1,376
 Earnings per share:
 Primary $0.52 $0.30 $0.93 $0.79
 Fully diluted $0.44 $0.30 $0.82 $0.79
 Weighted average shares:
 Primary 1,799 1,740 1,795 1,742
 Fully diluted 2,545 1,740 2,302 1,742
 -0- 9/21/93
 /CONTACT: Brad Schlotfeldt of Ag Services of America, 319-277-0261/
 (AGSV)


CO: Ag Services of America, Inc. ST: Minnesota IN: AGR SU: ERN

DB-KH -- MN012 -- 4205 09/21/93 13:26 EDT
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Publication:PR Newswire
Date:Sep 21, 1993
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