Saskatoon, Saskatchewan
August 20, 2007
Philom Bios Inc. is
pleased to report its results for the nine months ended June 30,
2007.
Highlights:
- Financial
- Quarterly earnings, before
extraordinary item, of $3.4 million versus prior year of
$0.9 million reflect the benefit of a strong sales quarter
and the effect of timing of shipments, and thus revenue
recognition.
- Year to dates sales growth
of 18%, driven by rising demand for JumpStart® and TagTeam®
products in key crop sectors.
- Net cash inflows in the
quarter were $2.3 million (year to date - $5.5 million)
reflective of strong improvement in earnings over the prior
year.
- Extraordinary item gain
realized on reduced judgment on Company’s legal appeal
resulting in increased net earnings of $0.20 per share.
Year to date earnings before
extraordinary item of $2.8 million versus $1.4 million in the
prior year reflect the sum of our successes in the spring sales
season as the Company gained market share in the key crop
sectors it serves. Total operating costs for the year to date
remain within expectations and now total $5.6 million (2006 -
$5.4 million). The increase over the prior year is mainly
reflective of growing commitments in marketing and sales costs
associated with expanding U.S. operations. Also in the quarter,
the Company recorded an extraordinary item gain of $0.7 million
or $0.20 per share representing the reduction in damages and
costs as determined by the Alberta Court of Appeal judgment in
respect of the Dow AgroSciences Canada Inc. claim.
As the majority of sales are now
complete, the balance of year activities are primarily devoted
to build up of production inventories for next year’s business
cycle. Fourth quarter expenses are expected to increase over the
prior year due to higher marketing spending and planned research
actitivities. However, in offset, the Company anticipates added
sales of JumpStart on fall crops prior to the end of the fiscal
year.
President/CEO Calvin Sonntag comments, “We are very pleased with
year to date results that reflect solid customer support across
all product lines, in particular, JumpStart® and Next Generation
TagTeam® products. The benefits of an improved farm economy and
robust crop input markets are readily evident in our business
and as a result, we expect to meet our net earnings forecast in
the range of $0.60 to $0.70 per share, with the upper end of the
range dependent on final quarter sales.”
Philom Bios is a world leading Inoculant Company with over 70
employees across North America in research, manufacturing,
marketing and management and in its joint-venture operations in
Australia. Headquartered in Saskatoon, SK, Philom Bios is a
Canadian public company serving the needs of farmers with
high-value inoculants. Philom Bios has an over 25 year
commitment to farmers through a dynamic partnership with
distributors and leading retailers. |
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