GreenStar Agricultural Corporation
TSX VENTURE : GRE

GreenStar Agricultural Corporation

November 21, 2013 09:00 ET

GreenStar Agricultural Reports 50% Increase in Net Earnings for Q3 2013

TORONTO, ONTARIO--(Marketwired - Nov. 21, 2013) - GreenStar Agricultural Corporation (TSX VENTURE:GRE) ("GreenStar" or the "Corporation") today announced its financial results for the three month and nine month periods ending September 30, 2013.

Key Financial Metrics
In thousands except
share data and EPS
Q3
2013
Q3
2012
Change YTD
2013
YTD
2012
Change
Key Operation Results Unaudited Unaudited Unaudited Unaudited
Total revenue $10,416 $8,474 22.92% $30,422 $24,477 24.29%
Gross profit $3,969 $3,123 27.09% $13,051 $10,169 28.34%
EBITDA1 $4,036 $2,845 41.86% $12,432 $9,426 31.89%
Net profit before income tax $3,631 $2,649 37.07% $11,656 $8,843 31.81%
Profit for the period $2,713 $1,947 39.34% $8,607 $6,521 31.99%
EPS - basic $0.18 $0.13 38.46% $0.57 $0.43 32.56%
EPS - diluted2 $0.09 $0.06 50.00% $0.28 $0.21 33.33%
Sep.30,
2013
Dec. 31,
2012
Key Balance Sheet Highlights Unaudited Audited
Cash and cash equivalents $15,656 $7,836 99.80%
Total assets $57,302 $46,614 22.93%
Total Liabilities $6,061 $6,307 -3.90%
Shareholders' Equity $51,241 $40,308 27.12%
Weighted average number of shares outstanding (basic, in thousands) 15,070 15,070 0.00%
Working capital per share, diluted $0.96 $0.62 54.84%
Net assets per share, diluted $1.64 $1.29 27.13%
1 Earnings before interest, taxes, depreciation and amortization (EBITDA) is often used as a measure of financial performance. However, EBITDA is a not a term that has specific meaning in accordance with IFRS, and may be calculated differently by other companies.).
2 Includes the effect of the 16,069,892 special warrants granted on completion of the RTO. Each special warrant is convertible into one common share for no additional consideration.

"Despite challenging economic conditions in both the domestic Chinese and international markets, the Corporation managed to substantially grow both its top line revenues and net profit," said Mr. Guan Lianyun, Chairman and CEO of GreenStar. "GreenStar's increased land base continues to have a positive effect on operational results as demonstrated by the increase in revenues and earnings from fresh agricultural produce and specifically the significant increase in sales volumes from bamboo shoots and mature bamboo trees. We believe that GreenStar is well positioned to continue this path of growing revenues and profits as the fresh produce and canned product operations continue to expand."

Q3 2013 Financial Highlights

  • Revenue of $10.4 million, an increase of 22.92% over $8.5 million in Q3 2012
  • EBITDA of $4 million, an increase of 41.86% over $2.8 million in Q3 2012
  • Net profit of $3.6 million, an increase of 37.07% over $2.6 million in Q3 2012
  • Earnings per share (fully diluted) of $0.09, an increase of 50% over $0.06 in Q3 2012
  • Shareholders' Equity $51 million, an increase of 27.12% over $40.3 million in Q3 2012

GreenStar invites readers to review Management's Discussion & Analysis, as filed on SEDAR, for a more complete review and analysis of the Corporation's financial information and performance.

About GreenStar Agricultural Corporation

GreenStar operates two main divisions, agricultural and food processing. The agricultural division is involved in the cultivation and harvesting of agricultural products such as fresh fruit and vegetables, for sale either directly as fresh fruit and vegetables or canned, and sold overseas and domestically. The food processing division is primarily involved in the processing of canned food, which includes canned tomato paste, canned boiled bamboo shoots, canned oranges, canned peaches and various other types of fruits and vegetables.

GreenStar has been operating for over 19 years. Through the application of science and technology in production, quality control and assurance, and business operations and management, GreenStar has focused on maintaining product and reputational excellence with a high standard of food quality. Key assets include a well established management team, modern production facilities, and a close partnership with local farmers.

GreenStar Agricultural Corp. is listed on the TSX Venture Exchange under the symbol "GRE".

For further information on GreenStar please visit our web site at www.greenstaragricultural.com.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

Caution Regarding Forward-Looking Information:

Certain statements in this press release may constitute ''forward looking'' statements which involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward looking statements.

When used in this press release, such statements may use such words as ''may'', ''will'', ''expect'', ''believe'', ''plan'' and other similar terminology. These statements reflect management's current expectations regarding future events and operating performance and speak only as of the date of this press release. Forward looking information in this press release includes management's belief that the Corporation will continue to grow its revenues and profits and enhance shareholder value. These forward looking statements involve a number of risks and uncertainties. Some of the factors that could cause actual results to differ materially from those expressed in or underlying such forward looking statements are the effects of, as well as changes in: international, national and local business and economic conditions; political or economic instability in the Company's markets; competition; legislation and governmental regulation; and accounting policies and practices. The foregoing list of factors is not exhaustive. Please see the Company's annual MD&A dated April 25, 2013, available on www.sedar.com, for a more detailed description of the risk factors. The Company undertakes no obligation to update publicly or revise any forward looking information, whether a result of new information, future results or otherwise, except as required by law.

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