Saskatoon, Saskatchewan
September 2, 2005
Philom Bios
Inc. is pleased to report its results for the nine months
ended June 30, 2005.
Third Quarter Highlights:
-
Financial
-
Year to date sales highest in Company
history.
-
Operating and production costs remain well
controlled in line with increased sales volumes and market
expansion activities leading to record earnings from
on-going operations.
-
Net cash flows increase in quarter by $2.9
million on strength of positive quarterly earnings.
-
Company establishes record number of field
trials across key crop sectors.
-
Second phase of building improvements
commenced as production group relocates to new facility
effective July 1, 2005. Construction activities remain on
schedule and on budget for relocation of office and lab to
new facility by end of calendar year.
-
Company receives judgment on Dow AgroSciences
legal claim resulting in extraordinary item charge to
earnings. Company announces appeal of judgment.
Building on a second consecutive year of double
digit percent sales growth, the Company reported year to date
net earnings before extraordinary item of $2.7 million (2004 -
$2.5 million) or $0.79 per share (2004 - $0.77). Improved
results are directly attributable to market success with sales
gains in all major product categories and across all sectors of
the North American market. With the primary sales season now
complete, year to date gross margins are considered
representative of final outcomes but net earnings will decline
over the balance of the year as the Company incurs its fourth
quarter operating costs.
Net operating costs for the year to date total
$5.2 million (2004 - $4.2 million). The increases over the prior
year relate to investment in market expansion and product
development, and legal fees incurred in defense of the Dow
AgroSciences claim. Taking into account final quarter
departmental costs, forecasted earnings before extraordinary
item are expected to reach $0.45 per share (2004 - $0.43 per
share).
President/CEO Calvin Sonntag comments, “By many
measures, our interim results reflect a tremendous outcome for
the Company. Record sales, prudent management of operating
expenses and success with our facilities investment and market
development plans have combined to make this an extraordinary
year for Philom Bios. The only negative has been the charge
we’ve taken in the Dow claim which has reduced net earnings.
However, even as we look forward to a vigorous appeal of this
decision as noted in earlier news releases, this outcome will
not affect our go-forward operating plans in any way.”
Philom Bios is a world leading Inoculant Company
with over 70 employees across North America in a wide range of
research, manufacturing, marketing, and management positions.
Headquartered in Saskatoon, SK, Philom Bios is a Canadian public
company serving the needs of farmers with high-value inoculants.
Philom Bios has a 20+ year commitment to farmers through a
dynamic partnership with distributors and leading retailers. |