Bevo Agro Inc. Announces Second Quarter Results

LANGLEY, BC, Feb. 23, 2012 /CNW/ - Bevo Agro Inc. (BVO:TSXV) reports sales of $4,231,964 for the second quarter ending December 31, 2011, a decrease of 2.4% compared to sales of $4,333,408 for the quarter ending December 31, 2010. Sales for the six months ending December 31, 2011 totaled $5,932,789, compared to sales of $6,295,102 for the six months the year earlier.

For the six months ending December 31, 2011 the gross margin was 25% versus 26% for the six months last year.

Second quarter operating expenses declined slightly from the previous year totaling $1,156,977 for the six months compared to $1,169,895 for the second quarter a year earlier.

The Company generated net earnings of $59,577 for the three months ended December 31, 2011, compared to a net profit of $134,952 for the three months ending December 31, 2010.  The net loss for the six months ending December 31, 2011 was $477,328 compared to a loss of $340,701 for the second quarter ending December 31, 2010.

Readers are encouraged to view the Company's unaudited financial statements as at December 31, 2011, and accompanying MD&A at www.sedar.com.

Financial Summary;

For the three months ending	Dec 31, 2011			Dec 31, 2010
Sales	$4,231,964	100%		$4,333,408	100%
Cost of Sales	$2,997,490	71%		$2,965,051	68%
Gross Margin	$1,234,474	29%		$1,368,357	32%
Expenses
Operating & administrative	$269,162	6%		$327,159	8%
Administrative fees, wages & benefits	$264,148	6%		$283,542	7%
Amortization	$375,380	9%		$358,389	8%
Interest expenses	$226,837	5%		$177,405	4%
Provision for bad debts	$21,450	1%		$23,400	1%
	$1,156,977	27%		$1,169,895	27%
Earnings (loss) from operations	$77,497	2%		$198,462	5%
Earnings before taxes	$77,497	2%		$198,462	5%
Income taxes-future	$17,920			$63,510
Net earnings (loss) for period	$59,577	1%		$134,952	3%
Earnings per share	$0.00			$0.00
EBITDA	$679,714	16%		$734,256	17%
For the six months ending	Dec 31, 2011			Dec 31, 2010
Sales	$5,932,789	100%		$6,295,102	100%
Cost of Sales	$4,444,962	75%		$4,666,416	74%
Gross Margin	$1,487,827	25%		$1,628,686	26%
Expenses
Operating & administrative	$464,144	8%		$495,647	8%
Administrative fees, wages & benefits	$529,440	9%		$541,405	9%
Amortization	$725,808	12%		$714,747	11%
Interest expenses	$440,403	7%		$339,845	5%
Provision for bad debts	$38,073	1%		$38,073	1%
	$2,189,775	37%		$2,129,717	34%
Earnings (loss) from operations	- $701,948	-12%		- $501,031	-8%
Earnings before taxes	- $701,948	-12%		- $501,031	-8%
Income taxes-future	-$224,620	-4%		-$160,330	-3%
Net earnings (loss) for period	-$477,328	-8%		-$340,701	-5%
Earnings per share	- $0.02			- $0.02
EBITDA	$464,263	8%		$553,561	9%

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 and nursery operators from its 40 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. 

 

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