SOURCE: Advanced Growing Systems

January 10, 2007 09:19 ET

Advanced Growing Systems Provides Financial Guidance for 2007

Gross Revenues Expected to Top $22,000,000 With Projected EBITDA of Between $1,400,000 and $2,300,000; Projected EBITDA to Be in the Range of $0.07-$0.11 per Share

IRVINE, CA -- (MARKET WIRE) -- January 10, 2007 -- Advanced Growing Systems, Inc. (PINKSHEETS: AGWS) announced today its financial guidance for 2007. The Company estimates EBITDA (earnings before interest, taxes, depreciation, amortization and non-cash charges, as defined) to be between $1,400,000 and $2,300,000 or $0.07-$0.11 per share for fiscal year 2007. As the year progresses, the Company will update its guidance to narrow this range to match results. The Company estimates gross revenue of both subsidiaries combined to be in excess of $22,000,000. These estimates include a capital or debt infusion of approximately $1,000,000 of non-recurring capital costs associated with plant acquisition and nursery expansion.

"We intend to see solid EBITDA growth in both subsidiaries of our company as we capitalize on opportunities that match our inherent strengths," states Chris J. Nichols, President and CEO of Advanced Growing Systems, Inc. "Our 2006 revenues of over $5,600,000 reflected only seven months of operations and did not reflect our three commercial nursery locations, nor the expanded plant facility for our organic fertilizer. 2007 will show a full year of operations at these facilities and reflect a full year of revenue and cash flow increases we have recently experienced. Our initial guidance for 2007 is a substantial increase from our original projections. We expect the Company to continue to surpass our expectations in the future."

Lyle Mortensen, CFO of Advanced Growing Systems, Inc., added, "The growth of the Company since inception has been beyond our expectations. The steady growth of gross revenues clearly indicate that the Company has been able to marry seasoned management, with a definitive need in the marketplace. We are proud of our accomplishments to date, and expect our growth to continue in 2007 and beyond."

The Company is also focused on finishing its audited financial statements and filing for reporting status with the SEC. Management expects to achieve reporting status and a listing on the Bulletin Board in the next 90 days, and an upgrade to a major US stock exchange by the end of the year.

The Company urges caution in considering its current trends and the earning guidance in this press release. The Green industry is highly competitive, and trends and guidance are subject to numerous factors and influences, some of which are discussed in the cautionary language below in this press release. The Company disclaims any obligation to update disclosed information on trends or targets other than in its periodic filings with the Securities and Exchange Commission.

About AGSI:

Advanced Growing Systems, Inc. ("AGSI" or the "Company"), founded in 2006, is the parent company of Organic Growing Systems, Inc. (a scientifically advanced Organic fertilizer manufacturer) and Advanced Nurseries, Inc. (a wholesale group of Commercial Nurseries located in the Southeastern US). AGSI is dedicated to providing its shareholders significant value and is directly involved in the $48 billion fertilizer market and the $66 billion Green industry. AGSI was founded by a skilled group of industry professionals each with over 20 years of direct experience in the "Green" industry. As profitability is paramount, we intend to maintain a combined GPM of 35-40% for Organic Growing Systems, Inc. and Advanced Nurseries, Inc. For more information, please visit

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Statements about AGSI's future expectations, including future revenues and earnings, and all other statements in this press release other than historical facts are "forward-looking statements" within the meaning of section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and as the term is defined in the Private Litigation Reform Act of 1995. AGSI's actual results could differ materially from expected results. AGSI undertakes no obligation to update forward-looking statements to reflect subsequently occurring events or circumstances. Should events occur which materially affect any comments made within this objective; AGSI will appropriately inform the public.

Contact Information

  • Contacts:

    Investment Banker:
    Tom Rubin
    Westcap Securities, Inc.
    18201 Von Karman Ave. Suite 550
    Irvine, CA 92612

    Investor Relations:
    InvestSource Communications, Inc.
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