|AgJunction Reports First Quarter 2018 Earnings Results|
HIAWATHA, KS , May 9, 2018 /CNW/ - AgJunction Inc. ( AJX.TO) ("AgJunction" or the "Company"), a global leader in advanced guidance and autosteering, is reporting financial results for the first quarter ended March 31, 2018 . All currency amounts are expressed in U.S. dollars.
First Quarter 2018 Financial Summary vs. First Quarter 2017
- Revenue up 8% to $15.8 million versus $14.6 million .
- Gross margin was 43.0% compared to 46.8%.
- Net loss was $1.0 million or $(0.01) per share, versus net income of $3.6 million or $0.03 per share, which included a one-time payment of $3.0 million.
EBITDA was $(0.5) million versus $4.1 million .
"AgJunction continued its expansion in the first quarter, reporting our fifth consecutive quarter of revenue growth," said Dave Vaughn , president and CEO of AgJunction. "Against this growth, the timing of approximately $1.7 million in orders shifted from our first quarter to early in the second quarter. These orders have shipped and will be reflected in our second quarter results.
"We continued to make significant progress during the quarter with our Hands-Free Farm mission that autosteering is for everyone and everything. The mission includes the launch of REBEL, our next generation upgrade to the Outback line that not only introduces a new display but contains an entirely new release of our component structured software. REBEL includes our first wireless software update capability and allows our customers to purchase a simple, all-in-one solution that substantially reduces the cost and complexity of buying auto steering.
"We followed this up with the launch of our Hands-Free Farm website, HandsFreeFarm.com, and an entirely new digital marketing campaign. We also announced the launch of our e-store, a new channel for getting our products to market. The e-store will focus on offering low cost, easy-to-use, and simple-to-install products. We launched our first offering with RANGER, a revolutionary guidance system for under $1,000 .
"Our belief in our Hands-Free Farm mission is that all farmers, independent of farm size, should have access to the core enabling technology of precision steering whether they have an older tractor or are about to purchase a new one. We drive this message every day through the aftermarket, our value-added resellers, and our OEM partners."
First Quarter 2018 Financial Results
Total revenue in the first quarter of 2018 increased 8% to $15.8 million compared to $14.6 million in the first quarter of 2017. This was driven by an increase in sales in the Company's Europe , Middle East and Africa region.
Gross profit in the first quarter of 2018 remained constant at $6.8 million compared to the first quarter of 2017. Gross margin was 43.0% compared to 46.8% in the first quarter of 2017. The decrease was primarily due to a lower margin mix of products sold versus the prior year.
Total operating expenses increased to $7.8 million compared to $6.2 million in the first quarter of 2017 primarily due to higher R&D costs associated with new corporate initiatives, as the Company invests in improving and developing new products. As a percentage of revenue, operating expenses increased to 49.6% compared to 42.6% in the first quarter of 2017.
Net loss in the first quarter was $1.0 million or $(0.01) per share, compared to net income of $3.6 million or $0.03 per share in the first quarter of 2017. Net income in the prior year quarter included $3.0 million of other income associated with the Company's entry into a strategic agreement with Hemisphere GNSS, Inc., a world-class provider of global navigation satellite systems technology.
EBITDA in the first quarter of 2018 was $(0.5) million compared to $4.1 million in the first quarter of 2017.
Cash and cash equivalents at the end of the first quarter of 2018 totaled $10.2 million compared to $13.9 million at the end of 2017. The Company used some cash to build inventory ahead of the large bulk purchase it will begin to deliver in July. Working capital was $19.5 million at the end of the first quarter compared to $20.3 million at the end of 2017. 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 fourth quarter and full year results, followed by a question-and-answer session.
Date: Thursday, May 10, 2018
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: 3674199
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 May 24, 2018 .
Toll-free replay number: 1-855-859-2056
International replay number: 1-416-849-0833
Replay ID: 3674199