AGT Reports Fiscal Year Loss

TORONTO - Mar 24/14 - SNS -- Alliance Grain Traders Inc. (AGT) reported a net loss of $876,000 on sales of $375.119 million for the fourth quarter ending December 31, compared to net earnings of $1.792 million on sales of $247.195 million during the same three-month period in 2012.

This resulted in a total comprehensive loss of $24.467 million on revenue of $1183.773 million during the 2013 fiscal year, compared to total comprehensive income of $8.937 million on sales of $855.325 million during the previous fiscal year.

In releasing its fiscal results, AGT also announced a cash dividend for the quarter ending March 31, 2014 of $0.15 per common share. The dividend will be payable on April 8, 2014 to shareholders of record on March 31, 2014. This dividend is an eligible dividend for Canadian income tax purposes. AGT's current annualized cash dividend rate is approximately $0.60 per share.

Murad Al-Katib, President and CEO of AGT expressed optimism about this year's performance as the company rolls out its "food ingredient and packaged foods segment. . .

"We are excited about our expanded retail canned and packaged food business with AGT CLIC in Montreal and the opportunities this is expected to provide. As well, AGT continues making progress with respect to protein and fibre sales with demand developing in food, feed and petfood sales ensuring that the movement of starch products continues as the pace of production increases with the completion of the second line of production in Minot."

Looking at the special crops business, Al-Katib added, "We have been watching volatility with respect to currency closely; however, our risk management program provides us with mechanisms to deal with this in our export business and operations. As well, we are optimistic that proposed solutions to transportation issues, including the recently announced legislative remedies by the Government of Canada, will assist in clearing the grain transportation system backlogs and return shipping to normalized seasonal flows."

In reporting the result, AGT noted that it has improved its cash flow position by reducing its average outstanding accounts receivable from 68 to 52 days. It also reported an improvement in days inventory outstanding to 74 days for the year from 86 days the previous year.