Server: Netscape-Enterprise/2.01 Date: Mon, 29 Dec 1997 18:08:55 GMT Content-type: text/html
September 25, 1996
NASDAQ: AGSV
Contact: Brad Schlotfeldt
Phone No. (319) 277-0261
or (800) 395-8505
Fax No. (319) 277-0144
http://www.agservices.com
For the three months ended August 31, 1996, the Company reported record net revenues and earnings. Net revenues increased to $49.6 million compared with $39.4 million for the three months ended August 31, 1995. Net income for the three months ended August 31, 1996 was $1,634,997 or $0.39 per share ($0.31 per share fully diluted) compared with $1,358,599 or $0.37 per share ($0.30 per share fully diluted) for the same period last year.
For the six months ended August 31, 1996, the Company also
reported record net revenues and earnings. Net revenues increased
to $115.8 million compared with $88.4 million for the same period
a year ago. Net income for the six months ended August 31, 1996
was $3,207,713 or $0.79 per share ($0.63 per share fully diluted)
compared with $2,506,754 or $0.68 per share ($0.55 per share fully
diluted) for the same period last year.
The Company's management is pleased with the results for the
quarter and six months ended August 31, 1996. The growth rate in
the Company's earnings per share was less than the growth rate in
net revenues due to the Company's planned marketing changes for the
1996 crop year. The Company focused its marketing efforts
primarily in the corn belt and panhandle of Texas where the Company
has had substantially more favorable collection experience than in
the southern cotton producing regions. The effect of this
geographic realignment was noticeable in the second quarter as
product mix changes from the highly chemical dependent southern
cotton regions to the highly irrigation dependent western corn belt
and Texas panhandle regions resulted in lower overall product
margins. The Company is currently in the process of completing
farm visits with customers to survey crops. Crops appear adequate
for a successful harvest and collection season. Furthermore, the
Company currently anticipates that the earnings results for the
final six months of fiscal 1997 will more closely approximate or
exceed our revenue growth rate due to operating efficiency gains
over a year ago.
SAFE HARBOR PROVISION
This release contains forward-looking statements based on
current expectations that involve a number of risks and
uncertainties. The factors that could cause actual results to
differ materially, include the following: general economic
conditions within the agricultural industry; competitive factors
and pricing pressures; changes in product mix; changes in the
seasonality of demand patterns; changes in weather conditions;
changes in agricultural regulations; and the risks described from
time to time in the Company's SEC reports.
Ag Services of America, Inc. supplies farm inputs including seed, fertilizer, agricultural chemicals, crop insurance, and cash advances for land rent, fuel, and irrigation to farmers primarily in the central United States.
(Unaudited) (Unaudited) Three Months Ended Six Months Ended August 31, August 31, August 31, August 31, 1996 1995 1996 1995 (In thousands except per share amounts) Net revenues $49,631 $39,436 $115,838 $88,389 Income before income taxes $2,552 $2,127 $5,008 $3,926 Net income $1,635 $1,359 $3,208 $2,507 Earnings per share: Primary $0.39 $0.37 $0.79 $0.68 Fully diluted $0.31 $0.30 $0.63 $0.55 Weighted average shares: Primary 4,222 3,656 4,036 3,665 Fully diluted 5,337 5,169 5,337 5,170