Legumex Walker Posts Q1 Loss

TORONTO - May 15/13 - SNS -- Legumex Walker reported a net loss of $5.974 million on sales of $87.316 million for the first quarter ending March 31, compared to a net loss of $2.363 million on sales of $65.793 million during the same three-month period last year.

The increase in revenue was mainly due to a 19% increase in the volume of shipments to 97,500 metric tons (MT). Gross commodity margins increased to $144 MT, "reflecting the success of the Company's strategy to diversify into higher-margin products," Legumex Walker said in releasing its quarterly results.

Commissioning of the Pacific Coast Canola plant (PCC) progressed according to plan with PCC shipping its first food-grade canola oil in mid-March. The PCC Plant remains on schedule to begin full production in the third quarter of 2013.

Consolidated EBITDA of $0.2 million compared with $2.2 million (including corporate costs that were consistent year-over-year), reflecting the expected loss generated by the Oilseed Seed division during commissioning.

"Our improved Special Crops results for the first quarter of 2013 are indicative of the underlying strength of that division as we began to realize the benefit of last year's substantial investment in facilities, technology and people as well as improvements in demand in the marketplace," said Joel Horn, President and Chief Executive Officer, Legumex Walker Inc.

"We are clearly seeing payoff from our acquisitions, diversification into higher margin products and optimization of our processing facilities to achieve EBITDA and cash flow that were not previously available to us."

Horn added, "Looking out to the remainder of 2013, we expect to continue to realize the value of last year's acquisitions and investments while leveraging our platform for organic growth opportunities that will be influenced by the new crop. In the back half of the year, we will see meaningful contribution from our Canola business and will begin to take advantage of additional margin opportunities. By next year, both the Special Crops and Oilseed Processing divisions will be well positioned to deliver on the full potential of our efforts."