Ag Growth Sees Record Sales In 2011

Ag Growth International Inc. recently reported its financial results for the three and nine months ended September 30, 2011, and declared dividends for December 2011, January 2012 and February 2012.

Ag Growth achieved record sales in the nine months ended September 30, 2011, due largely to revenues from divisions acquired in 2010 and strength in commercial grain handling. Sales for the quarter ended September 30, 2011 decreased from 2010 due to weather related weakness in western Canada, less than optimal growing conditions in the U.S. and the impact of a stronger Canadian dollar.

EBITDA for the three and nine months ended September 30, 2011 was $12.7 million and $46.4 million, respectively (2010 $25.6 million and $57.8 million) and adjusted EBITDA was $14.8 million and $44.8 million, respectively, (2010 $22.9 million and $53.0 million) for the periods then ended.

“Our commercial divisions continue to deliver solid results,” said Gary Anderson, president and chief executive officer, “however, we also faced a number of challenges in the third quarter. Sales of portable grain handling, aeration and temporary storage equipment were negatively impacted by a fast and dry harvest in western Canada and an unusual growing season and reduced crop yields in the U.S. In addition, our financial results were significantly impacted by start-up challenges at our Twister greenfield plant, while regional market issues, primarily the result of a 2010 drought in northern Europe, negatively impacted our Finland-based Mepu division.”

“While these factors negatively impacted 2011 results, we remain positive about growth for 2012 and beyond. We are confident the start-up challenges at our greenfield storage bin facility will have been largely addressed by the end of 2011, and as a result expect a significant contribution from this product line in 2012,” Anderson added.

Ag Growth has been a member since 2005. For more information about the company go to aggrowth.com.