|AgJunction Reports Second Quarter 2017 Earnings Results|
HIAWATHA, KS , Aug. 10, 2017 /CNW/ - AgJunction Inc. ( AJX.TO) ("AgJunction" or the "Company"), a leading provider of innovative hardware and software solutions for precision agriculture worldwide, reported financial results for the second quarter ended June 30, 2017 . All currency amounts are expressed in U.S. dollars.
Second Quarter 2017 Financial Summary vs. Second Quarter 2016
Revenue was up 12% to $13.3 million .Gross margin increased 110 basis points to 41.3%.Operating loss improved to $0.5 million compared to a loss of $1.3 million .Net loss improved to $0.5 million or $0.00 per share, compared to a loss of $1.2 million or $(0.01) per share.Adjusted EBITDA improved to $(0.0) million from $(0.7) million .
"Our second quarter marked the return to organic revenue growth on the back of strong sales to our large OEM customers in France and Germany ," said Dave Vaughn , President and CEO of AgJunction. "While we remain cautious about the near-term industry growth dynamics, we are ahead of our plan for the year and continue to effectively manage working capital and increase free cash flow. We grew cash on a consecutive quarter basis by approximately $3 million , while investing $1.8 million to repurchase our own stock ( US$0.225 per share; CA$0.297, representing a 50% discount to the closing price of CA$0.60 on the date of the transaction). Given our overall business outlook, we are confident this will prove to be an accretive use of our Company's capital.
"Looking to the remainder of 2017, we believe the steps we have taken to strategically invest in intellectual property, innovate our product portfolio and improve our balance sheet has positioned AgJunction for further growth as our markets strengthen."
Second Quarter 2017 Financial Results
Total sales in the second quarter of 2017 increased 12% to $13.3 million compared to $11.9 million in the second quarter of 2016. This was driven by 51% sales growth in the Europe , Middle East and Africa (EMEA) region due to strong OEM business.
Gross profit in the second quarter of 2017 increased 15% to $5.5 million compared to $4.8 million in the second quarter of 2016. Gross margin increased 110 basis points to 41.3% compared to 40.2% in the second quarter of 2016. The increase was primarily due to the absorption of production overhead by the higher sales volumes.
Total operating expenses declined to $6.0 million compared to $6.1 million in the second quarter of 2016. As a percentage of sales, operating expenses were 45.3% compared to 50.9% in the second quarter of 2016.
Net loss in the second quarter was $0.5 million or $0.00 per share, compared to a net loss of $1.2 million or $(0.01) per share in the second quarter of 2016.
EBITDA in the second quarter of 2017 improved to $(0.0) million compared to $(0.7) million in the second quarter of 2016.
Cash and cash equivalents at the end of the second quarter of 2017 totaled $18.8 million compared to $12.9 million at the end of 2016. Working capital was $24.8 million , up from $22.4 million at the end of 2016. The Company continues to carry no debt and has access to its full $3.0 million line of credit.
AgJunction will hold a conference call tomorrow at 11:00 a.m. Eastern time to discuss its second quarter results, followed by a question-and-answer session.
Date: Friday, August 11, 2017
Time: 11:00 a.m. Eastern time (8:00 a.m. Pacific time)
Toll-free dial-in number: 1-888-231-8191
International dial-in number: 1-647-427-7450
Conference ID: 55184625
Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Liolios at 1-949-574-3860.
The conference call will be broadcast live and available for replay via the investor center section of the company's website at www.corp.agjunction.com.
A replay of the conference call will be available after 2:00 p.m. Eastern time on the same day through August 25, 2017 .
Toll-free replay number: 1-855-859-2056
International replay number: 1-416-849-0833
Replay ID: 55184625