Alliance Grain Traders earnings increase
Aug. 14, 2014
by World Grain Staff
REGINA, SASKATCHEWAN, CANADA — Alliance Grain Traders Inc. announced on Aug. 13 net earnings of C$12.98 million for the second quarter compared to a loss of C$5.539 million in the same period a year earlier.
Diluted earnings per share were C64¢ compared to a loss of C28¢ a year earlier.
Earnings before interest, taxes, depreciation and amortization (EBITDA) for the second quarter were C$24.4 million, compared to C$13.9 million for the same period last year. Net debt improved to C$335.7 million at June 30, compared to C$369.4 million at March 31, and cash flow from operating activities increased by C$66.8 million, to an increase of C$38.9 million for the three months ended June 30 compared to a decrease of C$27.9 million for the three months ended March 31.
Adjusted earnings per share increased to C44¢ (C43¢ fully diluted) for the three months ended June 30 compared to C25¢ (C24¢ fully diluted) a year ago.
“As our food ingredient and packaged foods segment gains momentum through our recent agreement with Ingredion and the ramping up of utilization at our Minot facility, we are pleased with the positive normalizing trends in our pulses and grains segment. While our food ingredients platform is a focal point of our future strategy, our legacy pulses business continues to be a significant and strong performer for our company, providing the solid foundation on which AGT can grow and expand. Customer demand for our commodities, our ingredients and our retail food products is strong. Export markets are continuing to improve and North American harvest is shaping up well, with another season of significant production volumes,” said Murad Al-Katib, president and chief executive officer of AGT.
“This has been a positive quarter for AGT and all of the operations in our company. After prolonged periods where conditions adversely affected our operations, we are optimistic that the normalizing trends and the growth and expansion plans we have initiated will contribute to AGT’s ongoing success. The strength of our facilities and assets and our sound strategy and global sales reach is beginning to show the positive results for shareholder value that we have always believed existed in our business. We look forward to AGT’s future as our new business segments grow and expand,” said Huseyin Arslan, executive chairman of AGT’s board of directors.