Net income up at Village Farms
November 14, 2012 By Village Farms
Nov. 14, 2012, Vancouver — After a bumpy start to the year, Village
Farms International, Inc. had mostly good news in its financial report
for its first three quarters that ended Sept. 30, 2012.
Nov. 14, 2012, Vancouver — After a bumpy start to the year, Village Farms International, Inc. had mostly good news in its financial report for its first three quarters that ended Sept. 30, 2012.
Highlights include (with amounts in U.S. dollars):
• Revenues decreased (20 per cent) to $103.4 million for the nine month-period, compared to $129.7 million for the nine months that ended Sept. 30, 2011.
• Earnings per share of $0.44 for the nine months ended September 30, 2012 versus $0.12 for the nine months ended September 30, 2011.
• Net income increased 256 per cent to $17.1 million during the past nine months, versus $4.8 million for the nine months ended Sept. 30, 2011.
• EBITDA increased 41 per cent to $21 million for the nine months ended Sept. 30, 2012 compared to $14.9 million for the nine months ended Sept. 30, 2011.
CEO Michael DeGiglio says it has been a very difficult and challenging year, "between low market pricing, labour issues at our new facility in Monahans, and the devastating hailstorm in Marfa, Texas on May 31.
"Currently, we are experiencing improved pricing, increased output due to rebuilding half of our Marfa facilities, which is now in full operation, and an enhanced labor situation at our new Monahans facility.
"Additionally, the U.S. Department of Commerce provided an indication that it is likely to rule to terminate the suspension agreement with Mexico in January, which should benefit pricing for at least this winter, if not longer.
"Our Canadian operations have had a terrific crop cycle this year with the great growing weather in Vancouver this summer and should end their crop cycle on a strong note."
He added that while things are improving operationally, "the continued slow response by our insurance carrier on our business income losses has been very frustrating and has strained the company's working capital. Our recent amended credit facility will provide some needed relief but it also comes with a cost of additional fees and a higher interest rate, so we continue to press our insurance carrier for a more timely response to our business income losses.
"While our carrier has been responsive on the property coverage, we cannot commit to repair any part of the remaining Marfa facilities without the necessary working capital to make it operational once repaired."
Village Farms is one of the largest producers, marketers and distributors of premium-quality, greenhouse-grown tomatoes, bell peppers and cucumbers in North America.
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