Net Sales decreased (10%) to $25.4 million for the quarter ended March 31, 2013 compared to $28.2 million for the quarter ended March 31, 2012; Earnings (loss) per share of $0.07 for the quarter ended March 31, 2013 versus a loss of ($0.02) for the quarter ended March 31, 2012;
Net income increased $3.3 million for the quarter ended March 31, 2013 to $2.6 million from a net loss of ($0.7) million for the quarter ended March 31, 2012; EBITDA increased 116% to $6.4 million for the quarter ended March 31, 2013 compared to $3.0 million for the quarter ended March 31, 2012.
Michael DeGiglio, Chief Executive Officer, stated, "I am pleased to report that our first quarter of 2013 is in line with expectations. Pricing continues at customary levels and is substantially improved when compared to the same period in 2012. Our results would have been much stronger if not for the missing production capacity in the first quarter of this year, as a result of the remaining unrepaired portion of the Marfa, Texas facilities. The repaired portion of the Marfa facilities performed well, equating to roughly half of the damaged acres sustained in the hail storm in May 2012. While visiting our new Monahans, Texas facility last week, I am pleased to report the crop is in the best condition it has been since start up over one year ago. We have solved the local labour supply issue with company-owned housing coupled with a stronger employee pool from El Paso, Texas. These advancements along with our increased management experience with our GATES® technology are enabling improved efficiencies, higher yields and lower production costs that further drive our expectations for significant improvements in our results as the year progresses."
Mr. DeGiglio continued, "As we forge ahead approaching the one year anniversary of the devastating hail storm we endured, we continue to be disappointed by the ongoing delays and the handling of our pending insurance claim by our prior carrier - Travelers Insurance. Our proposal to settle the entire claim would have allowed us to move forward with our goal to repair at least 20 acres of the remaining damaged 40 acres at the Marfa facility to make it operable in time for next year."
Unfortunately, due to the delays, at this stage, it appears this goal is uncertain. Consequently, we are moving forward with an alternative tactic in dealing with the insurance claim. To date, the launch of our exclusive new varieties has received strong retailer response, which has facilitated our desire to seek additional opportunities for increasing our greenhouse capacity to meet this ever increasing demand for these new products, as well as our full line of core products, and mounting retailer interest in new items that we are currently looking to offer."
To read the full results click here.
Source: istockanalyst.com
To read the full results click here.
Source: istockanalyst.com