Server: Netscape-Enterprise/2.01 Date: Mon, 29 Dec 1997 18:08:31 GMT Content-type: text/html Ag Services

Press Release


NEWS RELEASE

April 22, 1996
NASDAQ: AGSV

Contact: Brad Schlotfeldt

Phone: (319) 277-0261 or (800) 395-8505, Fax No. (319) 277-0144

AG SERVICES OF AMERICA, INC. ANNOUNCES RECORD YEAR END RESULTS

For the year ended February 29, 1996, the Company reported record net revenues of $114.7 million an increase of 31.1% compared with $87.3 million for the year ended February 28, 1995. Net income for the year ended February 29, 1996 was $3,133,240 or $0.84 per share ($0.72 per share fully diluted) an increase of 30.4% compared with $2,402,078 or $0.66 per share ($0.60 per share fully diluted) for the year ended February 28, 1995.

The Company also reported record fourth quarter net revenues of $14.3 million compared with $10.3 million for the fourth quarter ended February 28, 1995. The Company reported net income for the three months ended February 29, 1996 of $87,861 or $0.02 per share (primary and fully diluted) an increase from the net loss of ($210,828) or ($0.06) per share (primary and fully diluted) for the same period last year.

Looking forward, the Company is now well into its sales, marketing and credit approval process for the 1996 spring planting season. Demand is well ahead of last years pace. We anticipate that demand for the Company's services should keep growth objectives on target for fiscal 1997.

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)
                                     Three Months Ended               Year Ended
                                 February 29,   February 28,   February 29,   February 28,
                                     1996           1995           1996           1995
                                        (In thousands except per share amounts)

Net revenues                       $14,290        $10,284       $114,686        $87,331
Income (loss) before income taxes      $89          ($335)        $4,863         $3,763
Net income (loss)                      $88          ($211)        $3,133         $2,402
Earnings per share:
  Primary                            $0.02         ($0.06)         $0.84          $0.66
  Fully diluted                      $0.02         ($0.06)         $0.72          $0.60
Weighted average shares:
  Primary                            3,776          3,657          3,709          3,659
  Fully diluted                      5,300          5,159          5,260          5,158


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