MacMusic  |  PcMusic  |  440 Software  |  440 Forums  |  440TV  |  Zicos
first
Recherche

AgroFresh Solutions Reports Results for First Quarter of 2019

mercredi 8 mai 2019, 00:02 , par Digital Pro Sound
Net sales increased 1.5% to $38.9 million versus the first quarter
of 2018


Selling, general and administrative expenses decreased 2.5% versus
the first quarter of 2018, reflecting ongoing cost optimization
initiatives


Net loss of $12.6 million for the first quarter of 2019; compared
to net loss of $13.0 million for the first quarter of 2018


Adjusted EBITDA(1) increased 11.8% to
$12.5 million, compared to $11.2 million for the first quarter of 2018


PHILADELPHIA–(BUSINESS WIRE)–AgroFresh Solutions, Inc. (“AgroFresh” or the “Company”) (Nasdaq: AGFS),
a global leader in produce freshness solutions, today announced its
financial results for the first quarter ended March 31, 2019.


“Our core business in the southern hemisphere got off to a solid start
in the first quarter of 2019, despite a delayed harvest in Latin America
that impacted apples and other key regional crops such as pears. We were
able to mitigate this seasonal softness with our diversified mix of
post-harvest solutions. We experienced modest growth in our FreshCloud
product offerings, 5% growth in our Tecnidex business on a constant
currency basis, and our first commercial sales of Harvista in Australia
following regulatory approval in late January,” commented Jordi Ferre,
Chief Executive Officer. “We continue to focus on optimizing our cost
base and driving sustainable growth through a broader and more
diversified product portfolio and crop reach. We believe that our
execution of these initiatives will promote the resilience of our core
business and position us to gain share in additional markets where we
can leverage our global post-harvest leadership position.”


Financial Highlights for the First Quarter of 2019


Net sales for the first quarter of 2019 increased 1.5%, to $38.9
million, compared to $38.4 million in the first quarter of 2018.
Excluding the impact of foreign currency rate changes, which reduced
revenue by $0.6 million compared to the first quarter of 2018, revenue
grew approximately 3%.


The increase in net sales was driven by growth in our core business,
which includes SmartFresh and Harvista, in our Middle East & Africa
region, with particular strength in South Africa. We also experienced
growth in our EthylBloc product, which is used to preserve cut flowers,
and in FreshCloud, the Company’s newest product offering. Additionally,
Tecnidex performed well, growing 5% overall on a constant currency
basis, driven by 18% constant currency growth in our fungicide, waxes
and coatings business, partially offset by a decline in our equipment
business due to timing of order delivery. In the Latin America region,
the Company’s core business was impacted by a delayed season. We also
realized our first commercial sales of Harvista in Australia.


In the first quarter of 2019, gross profit increased slightly to $27.6
million compared to $27.5 million in the prior year period. Gross profit
margin was 70.9% in the first quarter of 2019 versus 71.7% in the first
quarter of 2018. The change was in line with our expectations, and
mostly due to foreign exchange and product mix.


Research and development costs were $3.9 million in the first quarter of
2019, compared to $3.1 million in the prior year period. This increase
was driven primarily by $0.5 million of severance costs related to our
ongoing cost optimization initiatives along with timing of project
expenses.


Selling, general and administrative expenses were $15.9 million in the
first quarter of 2019 as compared to $16.3 million in the prior year
period, a decrease of 2.5%. Included in selling, general and
administrative expenses were $3.2 million in the current year and $2.0
million in the prior year of costs associated with non-recurring items
that include M&A and litigation along with severance. Excluding these
items, selling general and administrative expenses decreased
approximately 12% over the same period last year.


First quarter of 2019 net loss was $12.6 million, compared to net loss
of $13.0 million in the prior year period. Adjusted EBITDA was up 11.8%
to $12.5 million in the first quarter of 2019 as compared to $11.2
million in the prior year period. The increase was driven by higher
sales coupled with lower operating expenses adjusted for non-recurring
items.


As of March 31, 2019, cash and cash equivalents were $40.0 million.


Conference Call


The Company will host a conference call and webcast where members of the
executive management team will discuss these results with additional
comments and details today, May 7, 2019 at 4:30 pm E.T. The conference
call and supplemental earnings presentation will be available live over
the internet through the “Events & Presentations” page of the Investor
Relations section of the Company’s website at www.agrofresh.com.
To participate on the live call, listeners in the United States may dial
877-407-4018 and international listeners may dial 201-689-8471.


A replay of the conference call will be archived on the Company’s
website and telephonic playback will be available from 7:30 pm. ET,
May 7, 2019 through May 21, 2019. Listeners in the United States may
dial 844-512-2921 and international listeners may dial 412-317-6671. The
passcode is 13689469.


Non-GAAP Financial Measures


(1) Adjusted EBITDA is a non-GAAP financial measure. Please
see the information under “Non-GAAP Financial Measures” below for a
description of Adjusted EBITDA and the table at the end of this press
release for a reconciliation of this non-GAAP financial measure to GAAP
results.


This press release contains the non-GAAP financial measures EBITDA and
Adjusted EBITDA. The Company believes these non-GAAP financial measures
provide meaningful supplemental information as they are used by the
Company’s management to evaluate the Company’s performance, including
incentive bonuses and for bank covenant reporting. Management believes
that these measures enhance a reader’s understanding of the operating
and financial performance of the Company and facilitate a better
comparison between fiscal periods. EBITDA excludes income taxes,
interest expense and depreciation and amortization, whereas Adjusted
EBITDA further excludes items that are non-cash, infrequent, or
non-recurring, such as share-based compensation, severance, litigation
and M&A related costs, to provide further meaningful information for
evaluation of the Company’s performance.


The Company does not intend for the non-GAAP financial measures
contained in this release to be a substitute for any GAAP financial
information. Readers of this press release should use these non-GAAP
financial measures only in conjunction with the comparable GAAP
financial measures. Reconciliations of the non-GAAP financial measures
EBITDA and Adjusted EBITDA to the most comparable GAAP measure are
provided in the table at the end of this press release.


About AgroFresh


AgroFresh (Nasdaq: AGFS) is a leading global innovator and provider of
science-based solutions, data-driven technologies and experience-backed
services to enhance the quality and extend the shelf life of fresh
produce. For more than 20 years, AgroFresh has been revolutionizing the
apple industry and has launched new innovative solutions in a variety of
fresh produce categories from bananas to cherries and citrus to pears.
AgroFresh supports growers, packers and retailers by supplying
post-harvest solutions across the industry that enhance crop values
while conserving our planet’s resources and reducing global food waste.


Visit www.agrofresh.com
to learn more.


Trademark of AgroFresh Inc.


Forward-Looking Statements


In addition to historical information, this release may contain
“forward-looking statements” within the meaning of the “safe harbor”
provisions of the United States Private Securities Litigation Reform Act
of 1995. All statements, other than statements of historical facts,
included in this release that address activities, events or developments
that the Company expects or anticipates will or may occur in the future
are forward-looking statements and are identified with, but not limited
to, words such as “anticipate”, “believe”, “expect”, “estimate”, “plan”,
“outlook”, and “project” and other similar expressions (or the negative
versions of such words or expressions). Forward-looking statements
include, without limitation, information concerning the Company’s
possible or assumed future results of operations, including all
statements regarding financial guidance, anticipated future growth,
business strategies, competitive position, industry environment,
potential growth opportunities and the effects of regulation. These
statements are based on management’s current expectations and beliefs,
as well as a number of assumptions concerning future events. Such
forward-looking statements are subject to known and unknown risks,
uncertainties, assumptions and other important factors, many of which
are outside the Company’s management’s control that could cause actual
results to differ materially from the results discussed in the
forward-looking statements. These risks include, without limitation, the
risk of increased competition; the ability of the business to grow and
manage growth profitably; risks associated with acquisitions and
investments; changes in applicable laws or regulations, and the
possibility that the Company may be adversely affected by other
economic, business, and/or competitive factors. Additional risks and
uncertainties are identified and discussed in the Company’s filings with
the SEC, which are available at the SEC’s website at www.sec.gov.


 


AgroFresh Solutions, Inc.


CONDENSED CONSOLIDATED BALANCE SHEETS


(Unaudited)


(In thousands, except share and per share data)




 




 








   March 31,   




December 31,


 


 


2019


 


2018










 


ASSETS










Current Assets:










Cash and cash equivalents




$


39,995






$


34,852




Accounts receivable, net of allowance for doubtful accounts of
$1,887 and $2,336, respectively




63,923






67,942




Inventories




22,441






24,807




Other current assets


 


13,947


 


 


15,608


 


Total current assets




140,306






143,209




Property and equipment, net




14,095






13,289




Goodwill




6,649






6,670




Intangible assets, net




700,039






711,967




Deferred income tax assets




8,361






7,332




Other assets


 


23,968


 


 


16,820


 


TOTAL ASSETS


 


$


893,418


 


 


$


899,287


 










 


LIABILITIES AND STOCKHOLDERS’ EQUITY










Current Liabilities:










Accounts payable




$


7,377






$


7,530




Current portion of long-term debt




6,836






6,419




Income taxes payable




5,418






4,815




Accrued expenses and other current liabilities


 


51,246


 


 


45,340


 


Total current liabilities




70,877






64,104




Long-term debt




399,656






400,309




Other noncurrent liabilities




38,130






32,066




Deferred income tax liabilities


 


28,757


 


 


30,232


 


Total liabilities




537,420






526,711












 


Commitments and contingencies










Stockholders’ equity:










Common stock, par value $0.0001; 400,000,000 shares authorized,
51,425,734 and 51,071,573 shares issued and 50,764,353 and
50,410,192 outstanding at March 31, 2019 and December 31, 2018,
respectively




5






5




Preferred stock; par value $0.0001, 1 share authorized and
outstanding
















Treasury stock; par value $0.0001, 661,381 shares at March 31, 2019
and December 31, 2018, respectively




(3,885


)




(3,885


)


Additional paid-in capital




536,407






535,819




Accumulated deficit




(151,408


)




(138,789


)


Accumulated other comprehensive loss


 


(33,418


)


 


(28,837


)


Total AgroFresh stockholders’ equity




347,701






364,313




Noncontrolling Interest


 


8,297


 


 


8,263


 


Total equity


 


355,998


 


 


372,576


 


TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY


 


$


893,418


 


 


$


899,287


 


















 


 


AgroFresh Solutions, Inc.


CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS


(Unaudited)


(In thousands, except share and per share data)




 




 




 


 


Three Months EndedMarch 31, 2019


 


Three Months EndedMarch 31, 2018


Net sales




$


38,940






$


38,351




Cost of sales (excluding amortization of intangibles, shown
separately below)


 


11,335


 


 


10,846


 


Gross profit




27,605






27,505




Research and development expenses




3,897






3,069




Selling, general, and administrative expenses




15,898






16,311




Amortization of intangibles




11,616






10,939




Change in fair value of contingent consideration


 


190


 


 


138


 


Operating loss




(3,996


)




(2,952


)


Other (expense) income




(12


)




70




(Loss) gain on foreign currency exchange




(419


)




1,931




Interest expense, net


 


(8,745


)


 


(8,355


)


Loss before income taxes




(13,172


)




(9,306


)


(Benefit) provision for income taxes


 


(587


)


 


3,570


 


Net loss including non-controlling interests




$


(12,585


)




$


(12,876


)


Less: Net income attributable to non-controlling interests


 


34


 


 


91


 


Net loss attributable to AgroFresh Solutions, Inc


 


$


(12,619


)


 


$


(12,967


)










 


Net loss per share:










Basic




$


(0.25


)




$


(0.26


)


Diluted




$


(0.25


)




$


(0.26


)


Weighted average shares outstanding:










Basic




50,042,054






49,741,593




Diluted




50,042,054






49,741,593
















 


Non-GAAP Measure


The following table sets forth the non-GAAP financial measures of EBITDA
and Adjusted EBITDA. The Company believes these non-GAAP financial
measures provide meaningful supplemental information as they are used by
the Company’s management to evaluate the Company’s performance
(including incentive bonuses and for bank covenant reporting), are more
indicative of future operating performance of the Company, and
facilitate a better comparison among fiscal periods. These non-GAAP
results are presented for supplemental informational purposes only and
should not be considered a substitute for the financial information
presented in accordance with GAAP.


The following is reconciliation between the non-GAAP financial measures
of EBITDA and Adjusted EBITDA to their most directly comparable GAAP
financial measure, net loss:


(in thousands)


 


Three Months EndedMarch 31, 2019


 


Three Months EndedMarch 31, 2018


GAAP Net loss


 


$


(12,585


)


 


$


(12,876


)


(Benefit) provision for income taxes




(587


)




3,570




Interest expense(1)



8,745






8,355




Depreciation and amortization


 


12,061


 


 


11,273


 


Non-GAAP EBITDA


 


$


7,634


 


 


$


10,322


 


Share-based compensation




557






616




Severance related costs(2)



489






335




Other non-recurring costs(3)



3,193






1,680




Loss (gain) on foreign currency exchange(4)



419






(1,931


)


Mark-to-market adjustments, net(5)

 


190


 


 


138


 


Non-GAAP Adjusted EBITDA


 


$


12,482


 


 


$


11,160


 


 


 


 


(1)


 


Interest on the term loan and accretion for debt discounts, debt
issuance costs and contingent consideration


(2)




Severance costs related to ongoing cost optimization initiatives


(3)




Costs related to certain professional and other infrequent or
non-recurring fees, including those associated with transition
service agreement, litigation and M&A related fees


(4)




Loss (gain) on foreign currency exchange relates to net losses and
gains resulting from transactions denominated in a currency other
than the entity’s functional currency


(5)




Non-cash adjustment to the fair value of contingent consideration
related to the Tax Receivable Agreement and earnout


Contacts

For AgroFresh Solutions, Inc.Jeff Sonnek – Investor
RelationsICR Inc.Jeff.Sonnek@icrinc.com646-277-1263
digitalmedianet.com/agrofresh-solutions-reports-results-for-first-quarter-of-2019/
News copyright owned by their original publishers | Copyright © 2004 - 2024 Zicos / 440Network
126 sources (21 en français)
Date Actuelle
jeu. 28 mars - 20:32 CET