Bevo Agro Inc. Reports Second Quarter Results for Fiscal 2015

LANGLEY, BC, Feb. 25, 2015 /CNW/ - Bevo Agro Inc. (BVO:TSXV) reports record sales of $6,422,391 for the second quarter ending December 31, 2014, an increase of 23% over the same period last year when sales of $5,206,237 were reported.

Sales for the six months ending December 31, 2014 totaled $10,370,796, compared to sales of $7,356,413 for the same period the year earlier, an increase of 41%. The three month and six month figures represent all-time record high sales for both periods.

The gross profit for the six months ending December 31, 2014 totals $2,151,744 an increase of 18.6% when compared to gross profits of $1,814,921 for the six months in the previous year.

Expenses for the six months were $2,474,360 (24% of sales) compared $2,315,192 (31% of sales) for the same six months last year. While expenses increased slightly in dollars, the expense to sales ratio declined to 24% compared to 31% last year.

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

The net loss for the six months ended December 31, 2014 was $188,455 compared to a loss of $336,042 for the same period last year. EBITDA (Earnings before income taxes, depreciation and amortization) for the six months increased by 37%, to $963,595 from $704,107 in the same six month period last year.

It should be noted that the company's business is somewhat cyclical with the majority of sales and profits occurring in the second half of the fiscal year.

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

Financial Summary

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

For the three months ending	Dec 31, 2014		Dec 31, 2013		Change
Sales	$6,422,391	100%	$5,206,237	100%	23%
Cost of Sales	$5,126,410	80%	$3,732,125	72%	37%
Gross Margin	$1,295,981	20%	$1,474,112	28%	-12%
Expenses
Operating & administrative	$345,800	5%	$337,996	6%
Admin. fees, wages & benefits	$307,439	5%	$283,749	5%
Amortization	$415,500	6%	$388,412	7%
Interest expenses	$209,846	3%	$214,409	4%
Total expenses	$1,278,585	20%	$1,224,566	24%	4.%
Earnings (loss) from operations	$17,396	0%	$249,546	5%	-93%
Other			$3,373
Earnings before taxes	$17,396	0%	$252,919	5%
Income taxes-future	$4,530		$75,300
Net earnings (loss) for period	$12,866	0%	$177,619	3%	-92%
Earnings per share	$0.00		$0.01
EBITDA	$642,742	10%	$855,740	16%
EBITDA per share	$0.03		$0.04
For the 6 months ending	Dec 31, 2014		Dec 31, 2013		Change
Sales	$10,370,796	100%	$7,356,413	100%	41%
Cost of Sales	$8,219,052	79%	$5,541,492	75%	48%
Gross Margin	$2,151,744	21%	$1,814,921	25%	19%
Expenses
Operating & administrative	$644,138	6%	$567,544	8%
Admin. fees, wages & benefits	$611,962	6%	$562,659	8%
Amortization	$805,383	8%	$763,509	10%
Interest expenses	$412,877	4%	$421,480	6%
Total expenses	$2,474,360	24%	$2,315,192	31%	7%
Earnings (loss) from operations	-$322,616	-3%	-$500,271	-7%	-36%
Other	$67,951		$19,389
Earnings before taxes	-$254,665	-2%	-$480,882	-7%	-47%
Income taxes-future	-$66,210	-1%	-$144,840	-2%
Net earnings (loss) for period	-$188,455	-2%	-$336,042	-5%	-44%
Earnings per share	-$0.01		-$0.01
EBITDA	$963,595	9%	$704,107	10%	37%
EBITDA per share	$0.04		$0.03

Because revenue is accounted as "when goods are shipped", the Company provides the following 12 month trailing summary of financial performance. Sales, gross margins and earnings have shown steady increases on year over year periods.

Bevo's trailing twelve months results are summarized below

12 months ended	Dec 31,'12	June 30. '13	Dec 31,'13	June 30. '14	Dec 31, 2014
Sales	$19,899,943	$20,587,204	$21,008,627	$23,309,085	$26,323,468
Gross Margin	$4,817,838	$5,083,066	$5,350,194	$5,918,741	$6,255,564
Earnings before taxes	$105,467	$158,943	$433,895	$923,245	$1,149,462
Net earnings	$541,175	$184,533	$356,425	$738,745	$886,332
EBITDA	$2,609,311	$2,629,701	$2,866,060	$3,359,710	$3,619,198

Bevo Agro is North America's leading supplier of propagated agricultural plants, operating 45 acres of greenhouse facilities on 98 acres of land in Langley, BC and 20 acres of land in Pitt Meadows, BC. The Company's main products are the propagation of vegetable plants such as tomatoes, peppers, cucumbers, and other plants such as bedding plants, flowers and grasses.  The Company markets its products to established greenhouse growers, nurseries and retail outlets throughout North America.  The majority of Bevo's sales result from repeat orders through recurring multiyear contracts. 

Bevo has achieved a ranking in the 2015 TSX Venture 50® which recognizes the strongest companies on TSXV by share price, trading volume, market capitalization and analyst coverage. The winning companies have seen impressive growth over the past year, offered strong return to their shareholders and are actively traded in the market.

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]