AGT Food and Ingredients Inc. Announces Anticipated Financial Results for Quarter 1 2017

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AGT Food and Ingredients Inc. Announces Anticipated Financial Results for Quarter 1 2017

Canada NewsWire

SYMBOL: TSX: AGT

REGINA, May 5, 2017 /CNW/ - At the request of IIROC, AGT Food and Ingredients Inc. (TSX:AGT) ("AGT" or the "Company") is announcing certain of its anticipated financial results for the three months ended March 31, 2017.

Results for quarter are anticipated to be in the range of (within plus or minus 5%). All amounts are in Canadian Dollars.

  • Revenues of $515 million to $535 million
  • Adjusted EBITDA* of $20 million
  • Adjusted Earnings per fully Diluted Share* $0.28
  • Metric Tonnes handled 570,000 mtn
  • Net Debt to Adjusted EBITDA* of 5.25x

AGT will be in compliance with all financial covenants on its debt and management estimates that at March 31, 2017, AGT had in excess of $250 million of operating lines available. 

"We are complying with the request of IIROC in releasing this preview of our anticipated results to the market. Near-term headwinds caused by a number of non-tariff trade barriers and slower seasonal sales in markets like India and Turkey are contributors to this weaker result. Management expects that medium and long-term prospects and demand fundamentals for staple foods in emerging markets remain intact. AGT, with its recently extended bank syndication and new bond issue of $200 million issued in December 2016, has the capital to be able to position the company to succeed in the global agricultural industry" said Mr. Murad Al-Katib, President and CEO of AGT.

The financial statements and notes thereto for the three months ended March 31, 2017, as well as the related management's discussion and analysis, are planned to be filed on May 8, 2017 under AGT's profile on www.sedar.com and will be posted on AGT's website at www.agtfoods.com.

AGT invites you to join our conference call to discuss First Quarter 2017 results scheduled for Monday, May 8, 2017 at 10:00 a.m. Eastern time. To join the conference, please dial 1-800-319-4610 (toll free from Canada & the U.S.) or +1-604-638-5340 (from outside Canada & the U.S.).

AGT Food and Ingredients Inc. Profile                        
AGT Food and Ingredients Inc. (AGT) is a processor of value-added pulses, staple foods and ingredients for export and domestic markets as well as a supplier of retail packaged and canned foods to retail and food service sectors. Through its offices and processing facilities located in some of the best agricultural growing regions in Canada, the U.S., Turkey, China, Australia and South Africa, merchandising and sales offices in the U.K., the Netherlands, Spain, Switzerland and India and origination offices in Russia, AGT produces a full range of pulses and specialty crops including lentils, peas, chickpeas, beans and canary seed as well as food ingredients such as pulse flours, proteins, starches and fibres. Through its subsidiaries in Turkey, the Arbel Group, AGT also produces staple foods such as Arbella Pasta, rice, and milled wheat products, including bulgur and semolina.

Cautionary Statements
Certain statements in this press release are forward-looking statements. In particular, this press release contains forward looking statements with respect to, among other things, anticipated financial results for the first quarter of 2017 and volumes and margins. The reader is cautioned that assumptions used in the preparation of such information, although considered reasonable by AGT at the time of preparation, may prove to be incorrect. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of AGT (including its operating subsidiaries) to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such risks and uncertainties include, among others, the actual results of harvests, fluctuations in the price of lentils and other crops, failure of plant, equipment or processes to operate as anticipated, accidents or labour disputes, risks relating to the integration of acquisitions or to international operations, as well as those factors referred to in the section entitled "Risk Factors" in the Annual Information Form of AGT which is available on SEDAR at www.sedar.com, and which should be reviewed in conjunction with this document. Although AGT has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. AGT expressly disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except in accordance with applicable securities laws.

Non-IFRS Financial Measures
* AGT provides some non-IFRS measures as supplementary information that management believes may be useful to investors to explain AGT's financial results. These non-IFRS measures include Adjusted Gross Profit* (gross profit plus depreciation in cost of sales), Adjusted EBITDA* (earnings before finance expense, income taxes, depreciation and amortization, restructuring costs and any effects of non-cash, non-recurring and other costs and foreign exchange adjustment), Adjusted Net Earnings*, Adjusted Basic Net Earnings Per Share* and Adjusted Diluted Net Earnings Per Share* (earnings before any effects of non-cash, non-recurring and other costs, restructuring costs and foreign exchange adjustments), Net Debt* (bank indebtedness, short term financing and long term debt less cash) and Net Working Capital* (current assets less current liabilities). Adjusted Net Earnings*, Adjusted Basic Net Earnings Per Share* and Adjusted Diluted Net Earnings Per Share* do not include the tax effect of non-cash, non-recurring and other costs and foreign exchange. Management believes that Adjusted EBITDA*, Adjusted Net Earnings*, Adjusted Basic Net Earnings Per Share* and Adjusted Diluted Earnings Per Share, Net Debt* and Net Working Capital* are important indicators of AGT's ability to generate liquidity through operating cash flow to fund future working capital needs, service outstanding debt and fund future capital expenditures and uses the metric for this purpose. The exclusion of non-cash and foreign exchange adjustments eliminates the non-cash impact on Adjusted EBITDA*, Adjusted Net Earnings*, Adjusted Basic Net Earnings Per Share* and Adjusted Diluted Earnings Per Share*. Adjusted EBITDA* and Adjusted Net Earnings*, Adjusted Basic Net Earnings Per Share*, Adjusted Diluted Net Earnings Per Share*, Net Debt* and Net Working Capital* are also used by investors and analysts for the purpose of valuing AGT. The intent of these measures is to provide additional useful information to investors and analysts and the measure does not have any standardized meaning under IFRS. Adjusted Gross Profit*, Adjusted EBITDA* and Adjusted Net Earnings*, Adjusted Basic Net Earnings Per Share*, Adjusted Diluted Net Earnings Per Share*, Net Debt* and Net Working Capital* should therefore not be considered in isolation or used as a substitute for measures of performance prepared in accordance with IFRS. For a reconciliation of net earnings (loss) determined in accordance with IFRS to Adjusted EBITDA*, Adjusted Net Earnings* and Adjusted Basic Net Earnings Per Share* and Adjusted Diluted Earnings Per Share*.

SOURCE AGT Food and Ingredients Inc.

View original content: http://www.newswire.ca/en/releases/archive/May2017/05/c6463.html

Copyright CNW Group 2017

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