Bevo Agro Inc. announces results for the third quarter of fiscal 2014

LANGLEY, BC, May 28, 2014 /CNW/ - Bevo Agro Inc. (BVO:TSXV) is pleased to report sales totaled $5,126,0842 for the third quarter ending March 31, 2104, an increase of 44% compared to sales of $3,567,427 for the three months ending March 31, 2013.  Deliveries of propagated plants to new clients in addition to larger orders from customers contributed to the increase in sales.

Sales for the nine months ending March 31, 2014 totaled $12,482,497, compared to sales of $10,502,417 for the same nine months last year which is an increase of 19%.

As a result of increased sales, the gross profit increased to $1,875,260 compared to $1,469,809 for the same three months last year.

Operating expenses for the three months were $1,243,602 (24% of sales) compared to $1,150,790 (32% of sales) in the same period last year.

EBITDA (Earnings before interest, taxes, depreciation and amortization) increased 33% and 39% respectively to $1,250,186 and $1,954,293 for the three and nine month periods.

The company has not provided for any bad debt write offs in the second quarter, since accounts receivable are current and collectable.

Readers are encouraged to view the Company's unaudited financial statements at March 31, 2014, and accompanying MD&A at www.sedar.com.

Summary- Consolidated Interim Condensed Statements of Operations and Comprehensive Income (Loss)

Three Months ended	Mar 31 ,2014		Mar 31 ,2013			Change
Sales	$5,126,084	100%	$3,567,427	100%		44%
Cost of Sales	$3,250,724	63%	$2,097,618	59%		55%
Gross Margin	$1,875,360	37%	$1,469,809	41%		28%
Expenses
Operating & administrative	$323,050	6%	$257,943	7%		25%
Administrative fees, wages & benefits	$302,124	6%	$273,955	8%		10%
Amortization	$402,916	8%	$398,845	11%		1%
Interest expenses	$215,512	4%	$220,047	6%		-2%
Provision for bad debts	$0	0%	$0	0%
Total	$1,243,602	24%	$1,150,790	32%		8%
Earnings  from operations	$631,758	12%	$319,019	9%		98%
Other	$0	0%	$0	0%
Earnings before taxes	$631,758	12%	$319,019	9%		98%
Income taxes-future	$190,140		$108,100			76%
Net earnings  for period	$441,618	9%	$210,919	6%		109%
EBITDA	$1,250,186	24%	$937,911	26%		33%
Earnings Share	$0.02		$0.01

Nine  months ended	Mar 31 ,2014		Mar 31 ,2013
Sales	$12,482,497	100%	$10,502,417	100		19%
Cost of Sales	$8,792,216	70%	$7,484,815	71%		17%
Gross Margin	$3,690,281	30%	$3,017,602	29%		22%
Expenses
Operating & administrative	$890,594	7%	$796,615	8%		12%
Administrative fees, wages & benefits	$864,783	7%	$815,328	8%		6%
Amortization	$1,166,425	9%	$1,174,641	11%		-1%
Interest expenses	$636,992	5%	$667,833	6%		-5%
Provision for bad debts	$0	0%	$0	0%
Total	$3,558,794	29%	$3,454,417	33%		3%
Earnings (loss) from operations	$131,487	1%	-$436,815	-4%
Other	$19,389		$0
Earnings before taxes	$150,876	1%	-$436,815	-4%
Income taxes-future	$45,300	0%	-$139,800	-1%
Net earnings (loss) for period	$105,576	1%	-$297,015	-3%
EBITDA	$1,954,293	16%	$1,405,659	13%		39%
Earnings per share	$0.00		-$0.01

Because revenue is accounted as "when goods are shipped", the Company provides the following summary of trailing twelve month financial performance. 

Bevo's trailing twelve months results are summarized below

Twelve months ended	Mar 31 ,2012	June 30. '12	Mar 31 2013	June 30. '13	Mar 31, 2014
Sales	$17,483,472	$18,897,742	$20,539,020	$20,587,204	$22,567,284
Gross Margin	$4,237,149	$4,757,872	$4,838,147	$5,083,066	$5,755,745
Net earnings (loss) for period	-$189,926	$571,781	$561,997	$184,533	$587,124
EBITDA	$2,073,968	$2,605,826	$2,632,729	$2,815,045	$3,363,679

Bevo Agro is North America's leading supplier of propagated agricultural plants, growing and distributing vegetable, flower, berry and other plant seedlings to North America's growers. Bevo propagates quality seedlings and plants for wholesale vegetable greenhouse growers, field growers, nurseries and retail outlets from its 39 acre production facility.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release

SOURCE: Bevo Agro Inc.

Jack Benne, President, Bevo Agro Inc., Phone: [phone], Fax: [phone], Email: [email protected]