AGI Announces Q4 Results
Ag Growth International Inc. today announced its financial results for the three-months and year-ended December 31, 2022.
Fourth Quarter 2022 Highlights
- Record fourth quarter results for sales and adjusted EBITDA
- Sales increased 14% to $374 million on a year-over-year (‘YOY’) basis
- Adjusted EBITDA1 increased 14% to $51 million on a YOY basis
- Adjusted EBITDA margin2 of 13.6% vs 13.7% on a YOY basis
- Total leverage ratio2 of 3.7x at December 31, 2022 vs 4.1x at September 30, 2022 and 4.7x at December 31, 2021
Full year 2022 Highlights
- Third consecutive year of record sales and adjusted EBITDA results with growth largely attributable to organic growth efforts and initiatives
- Sales increased 22% to $1.46 billion on a YOY basis
- Adjusted EBITDA1 increased 33% to $235 million on a YOY basis
- Adjusted EBITDA margin2 of 16.1% vs 14.7% on a YOY basis
- Management expects full year 2023 adjusted EBITDA to be at least $260 million1, representing continued growth and momentum
- Backlog3 is up 10% YOY as of December 31, 2022, despite the deferred or cancelled orders as a result of the conflict in Ukraine, and is sitting at record-levels for year-end and near-record levels all-time
The Farm segment delivered impressive results in the fourth quarter, with sales and adjusted EBITDA growing by 24% and 4% YOY, respectively. In addition, full year sales and adjusted EBITDA growth of 20% and 16%, respectively, continue the trend of strong momentum over an already historic performance in 2021. This growth was fueled by the continued demand for portable grain handling equipment in Canada, the U.S., and Asia Pacific, as well as permanent grain handling and storage solutions in South America. As consumption continues to increase globally, we are seeing sustained demand for our Farm segment products as growers around the world increase production. The fourth quarter adjusted EBITDA margin decreased as compared to the fourth quarter of 2021 as that quarter benefited from the price increases we implemented ahead of rising input costs which peaked in 2022.
Sustained demand for agriculture equipment and infrastructure enabled AGI to cap off another record year in sales and adjusted EBITDA with excellent momentum heading into 2023.