Legumex Walker Reports Fourth Quarter Loss

TORONTO - Mar 25/14 - SNS -- Legumex Walker Inc. reported a net loss of $7.786 million on sales of $135.345 million during the fourth quarter ending December 31, compared to a net loss of $5.933 million on sales of $104.02 million during the same three-month period the previous year.

This lifted the net after tax loss for the 2013 fiscal year to $25.459 million on sales of $433.567 million for the year ending December 31, compared to a net after tax loss of $13.845 million on sales of $294.81 million during the 2012 fiscal year.

Pulse and special crop revenue during the fourth quarter was $101.5 million on shipments of 126,300 metric tons (MT), compared to $103.5 million on 118,300 MT shipped during the same three-month period in 2012.

This lifted pulse and special crop revenue to $352.6 million on 412,000 MT shipped in 2013, compared to $294.3 million shipments of 349,400 MT in 2012.

Pacific Coast Canola (PCC) reported its first full quarter of commercial production, generating $33.9 million in revenue from 57,700 MT sold and 51,900 MT crushed during the fourth quarter. It is operating at about 56% of capacity.

Commenting on the results, Joel Horn, President and Chief Executive Officer, Legumex Walker Inc. said, "The realignment of our Special Crops segment along three product lines to focus on specific markets and customers early in the year contributed to an impressive 48% increase in EBITDA for the year and a doubling of EBITDA for the fourth quarter versus last year.

"PCC continues to produce high quality products, crush margins are at historic highs and the plant is capable of running at full capacity. We successfully resolved the outbound logistical challenges we highlighted last November by expanding our book of business with local, truck-delivered customers. Now the first shipments under our new truck-delivered Canadian seed program have started arriving at the plant, providing a near-term solution to the limited seed availability due to the North American rail congestion we highlighted in January.

"Seed availability will improve naturally in the second half of the year as the local winter and spring canola crops are harvested in the third and fourth quarters - the majority of which will be delivered to PCC by truck - allowing us to ramp up the facility to full production."