PRT Growing Services Ltd. Reports Results for the First Nine-Months of 2012
(firmenpresse) - VICTORIA, BRITISH COLUMBIA -- (Marketwire) -- 11/08/12 -- PRT Growing Services Ltd. (TSX: PRT), today released its financial results for the nine- and three-months ended September 30, 2012. Forest seedlings generally take from six months to a year or more to grow, with most being grown and harvested within the calendar year. PRT's quarterly results generally reflect only a portion of the revenue that accrues over the full crop cycle, and, accordingly, the results are best considered in an annual context. Excerpts from the Company's financial report are included as part of this release.
On November 2, 2012 the Company announced that it had agreed to an acquisition proposal from Mill Road Capital L.P. which, subject to shareholder approval and other conditions precedent, is expected to close in mid-December, 2012.
Highlights
(For the nine-months ended September 30, 2012, as compared to September 30, 2011)
PRT reported EBITDA of $2,901,000 and total comprehensive income of $477,000 ($0.05 per share) for the nine months ended September 30, 2012, compared with $3,378,000 and income of $605,000 ($0.06 per share), respectively for the first three-quarters of 2011. The slightly lower results reflect timing of revenue recognition, increased labour costs and spending on a review of strategic alternatives for the Company.
Forestry seedling markets in western North America are continuing to benefit from growth of wood product exports to China in 2011 and stabilization of the US housing market, but the effect this year on our business has not fully offset the loss of seedling volumes from certain new regional markets in 2012.
Earnings were affected by higher Selling General and Administration (SG&A) spending in the period relative to the same period last year. SG&A increased due to one time costs associated with a review of strategic alternatives as well as increased spending on business development initiatives to enhance product and market diversification. As markets continue to recover we expect to achieve scale economies and operating leverage with increased volumes, and margin improvement with nursery cost containment, and continuous improvement efforts.
Working capital and cash from operations improved in the first three-quarters, and the Company had no net debt at the end of the period.
For the three months ended September 30, 2012, the Company reported EBITDA of negative $481,000 and total comprehensive loss of $1,032,000 ($0.13 per share). Aggregate results were in line with management's expectations given the highly seasonal nature of PRT's business. The third quarter is typically the slowest quarter in the Company's annual cycle.
President and CEO Rob Miller observed, "The improvement in core forest seedling order volumes we experienced in 2011 has been sustained into 2012. While total market seedling demand remains significantly below historical levels, with the improvements we have made to our business over the past three years to adapt to the downturn we are now able to generate improved returns on lower volumes. Our key focuses continue to be highly reliable contract delivery, superior customer service, and product innovations to meet changing customer needs. At the same time we are carefully managing capacity and costs, and emphasizing continuous improvement throughout our organization. We are also exploring expansion of our core business into new geographic regions and new product lines. These operating strategies position us well for the market conditions we expect in 2012 and beyond."
"Going forward, we will continue to focus on improving our operations, developing new markets, and managing our balance sheet for sustainability."
Management's discussion and analysis for PRT and the information circular are available at .
About PRT Growing Services Ltd.
PRT Growing Services Ltd. (the Company) is the largest producer of container-grown forest seedlings in North America, operating 13 nursery locations that are expected to produce more than 160 million seedlings in 2012. The Company was formed on October 1, 2011 from the conversion of PRT Forest Regeneration Income Fund to a corporate structure. Shares of the Corporation are listed for trading on the Toronto Stock Exchange under the trading symbol PRT.
Conference Call and Taped Replay (ii)Please note revised time(ii)
The Company will host a conference call to further discuss the matters contained in this press release. The call will take place on Thursday, November 8, 2012, at 1:00 PM PST, 4:00 PM EST. To participate in this conference call, please call 1-877-407-8035 or 201-689-8035.
Persons unable to participate in the conference call may listen to a recorded version by dialing 1-877-660- 6853, account #286, conference ID# 400829. This option is available through November 15, 2012. A recorded webcast of the call may also be accessed from the Corporation's website, at .
The Company's next earnings conference call is expected to take place on Thursday, November 8, 2012, after the release of the Corporation's third-quarter 2012 earnings information.
Forward-Looking Statements
This press release contains forward-looking statements that involve risks and uncertainties. These forward-looking statements relate to, among other things, expectations for order volumes, pricing, margins, operating costs and other expenditures; plans and opportunities for housing markets and for new market development; statements relating to the acquisition of PRT and other statements contained in this discussion that are not historical fact. Risks and uncertainties include, but are not limited to, agricultural risks and crop yield; future commodity prices; exchange rate risks; customer credit risks and customer insolvency; liquidity risk; the outlook for the forest industry; the impact of corporate conversion on reported earnings and taxation; and other risks identified from time to time in the Corporation's annual report and information return, prospectus, and other filing documents that are available in electronic form at or by contacting the Corporation directly.
Forward-looking statements are based on current expectations, and the Corporation assumes no obligation to update such information to reflect later events or developments, except as required by law.
Excerpts from PRT's Condensed Consolidated Interim Financial Statements (unaudited):
Contacts:
PRT Growing Services Ltd.
Tony Pollard
VP Finance/CFO
(866) 553-8733 ext. 229
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Datum: 08.11.2012 - 14:06 Uhr
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News-ID 1169009
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