LANGLEY, BC, Sept. 21, 2012 /CNW/ - Bevo Agro Inc. (TSXV:BVO) is pleased to announce sales for the year ending June 30, 2012 totaled $18,897,742, an increase of $634,039 (3.5%) over last year sales of $18,263,703. Sales for Q4 were particularly strong because of favorable early spring weather.
The gross margin was $4,757,872 for the year ended June 30, 2012, an increase of 4.8% compared to the gross margin last year of $4,538,849.
Operating expenses for the year totaled $4,598,519 compared to $4,495,347 last year. Interest expense increased because of borrowing costs related to the five acre expansion, and amortization expense was higher as a result of the increase in area. These increases were offset by lower administrative costs and recoveries of bad debts. Recovery of bad debts totaled $36,013.
Net earnings increased to $571,781 for the year ending June 30, 2012, compared to $44,128 for the year ending June 30, 2011. During the year, $412,428 in income taxes was recovered as the company realized significant tax credits due to its Scientific Research and Experimental Development claims.
Financial Summary
| 12 months ending | June 30. 2012 | June 30. 2011 | Change | |||||
| Sales | $18,897,742 | 100% | $18,263,703 | 100% | $634,039 | 3.47% | ||
| Cost of Sales | $14,139,870 | 75% | $13,724,854 | 75% | $415,016 | 3.02% | ||
| Gross Margin | $4,757,872 | 25% | $4,538,849 | 25% | $219,023 | 4.83% | ||
| Expenses | ||||||||
| Operating & administrative | $1,001,874 | 5% | $1,083,130 | 6% | -$81,256 | -7.50% | ||
| Admin fees, wages & benefits | $1,186,185 | 6% | $1,207,592 | 7% | -$21,407 | -1.77% | ||
| Amortization | $1,542,322 | 8% | $1,462,655 | 8% | $79,667 | 5.45% | ||
| Interest expenses | $904,151 | 5% | $704,571 | 4% | $199,580 | 28.33% | ||
| Provision for bad debts | -$36,013 | 0% | $37,399 | 0% | -$73,412 | -196.29% | ||
| Total expenses | $4,598,519 | 24% | $4,495,347 | 25% | $103,172 | 2.30% | ||
| Earnings from operations | $159,353 | 1% | $43,502 | 0% | $115,851 | 266.31% | ||
| Earnings before taxes | $159,353 | 1% | $43,502 | 0% | $115,851 | 266.31% | ||
| Income taxes-current | $0 | $0 | ||||||
| Income taxes-recovery | $412,428 | -$626 | ||||||
| Net earnings for period | $571,781 | 3% | $44,128 | 0% | ||||
| Shares o/s | 25,535,933 | 25,535,933 | ||||||
| Earnings per share | $0.02 | $0.00 | ||||||
Readers are encouraged to view the Company's year-end audited financial statements and accompanying MD&A at www.sedar.com.
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.
SOURCE: Bevo Agro Inc.
Jack Benne, President
Bevo Agro Inc.
Phone: (604) 888-0420
Fax: (604) 888-8048
Email: [email protected]
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