Ag Growth Announces Q1 2011 Results; Declares Dividends
Ag Growth International Inc. (TSX: AFN) ("Ag Growth" or the "Company") today reported its financial results for the three months ended March 31, 2011, as follows:(thousands of dollars) Three Months Ended March 31 2011 2010 (1) Trade sales (2) $ 66,008 $ 51,639 EBITDA (2) $ 13,318 $ 11,704 Adjusted EBITDA (2) $ 11,811 $ 9,862 Profit $ 4,706 $ 4,351 Basic net profit per share $ 0.38 $ 0.33 Fully diluted net profit per share $ 0.38 $ 0.33 (1) Restated for IFRS. See the Company's unaudited interim financial statements for the three month periods ended March 31, 2011 and 2010. (2) See "Non-IFRS Measures".
Overview of Results
Trade sales for the three month period ended March 31, 2011 increased $14.4 million or 28% compared to the same period in the prior year due to strong demand for commercial equipment and contributions from newly acquired entities. International sales increased by 62% to $11.3 million largely due to commercial projects in Eastern Europe, South America and the Middle East. In North America, strong demand for commercial handling equipment more than offset the effect of less than optimal crop conditions in western Canada and a continuing strong Canadian dollar. Trade sales excluding newly acquired divisions increased $1.6 million, and had the foreign exchange rates experienced in 2010 been in effect in 2011, trade sales net of acquisitions would have increased approximately $4.3 million or 8% over 2010.
The Company also realized significant increases in EBITDA and adjusted EBITDA. The growth in EBITDA was largely due to increased sales and earnings from two of its commercial divisions, Hi Roller and Union Iron, which resulted from strong demand both in North America and overseas. The EBITDA contribution from newly acquired divisions was limited in the first quarter primarily due the extreme seasonality of Finland based Mepu. Profit for the period increased 8% and basic and fully diluted net profit per share both increased 15% compared to the same period in the prior year.
Fx Forward And Hedge Accounting - News
Upon the adoption of IFRS the Company changed its hedge accounting for foreign exchange derivatives which resulted in a change to its gain or loss on foreign exchange. 9. Under IFRS the Company has identified a limited number of sales contracts as
In order to offset the impact of changing commodity prices and exchange rates on its cash flows, Ten Peaks enters into coffee futures and foreign exchange forward contracts. However, as it does not use hedge accounting, the current market value of its
The Company has elected not to apply hedge accounting and these financial instruments are reflected in the Company's financial statements at fair value each reporting period. These instruments are considered to be effective economic hedges and have
With Revel's accounting for just 10% of our implant mix, we had flat year-over-year pricing in our US pacemaker business in Q4. Our international pacing business grew 1% versus the international pacing market declines in the low single digits.
The revenue expense forecast impact how we produce and ship, how we hedge our currency exposure and how we guide our investors. This is fundamental and very important to the business and will be a key focus of mine. Last but not least, I will explore
Hedge your Money with Forward Exchange Rates | Article Directory
Forex market is booming these days. Be it for businesses or for personal reasons forex market offer the best deal for them. The key reason behind the unbeatable exchange rates offered by forex market is that it directly deals with the currency market thus can keep lower margin than the interbank rates. However, this is not the only reason why everyone prefers to exchange currencies through forex companies. Currency rates are notoriously volatile and it is not possible to predict them in advance thus security of fund is the major concern of all who are transferring money abroad. Forex companies offer forward exchange rates (or forward rates) and spot rates services to hedge your money.
Forward exchange rate is the rate set between two parties in an agreement for a payment delivery on a future date. This agreement is known as forward contract. If the payment date lies within two business dates, it is spot transaction and the rate in this case is spot rate. An individual or businesses can protect transaction from constantly fluctuating exchange rates by selling or purchasing currency at the fixed rate. These feature is known as currency hedging where forex companies strives to minimize the exposure to exchange rate fluctuations . If you are selling any product or property then currency hedging strategy offers stability to earnings and cash flow by minimizing the uncertainty of future transactions denominated in a foreign currency.
While forward exchange rates are superior to future rates in terms of risk reduction, there is no central place for forward rates, which contributes to higher transaction costs and lower liquidity. Businesses often choose forward exchange rates while making big transaction and the reason is not profit but the uncertainty of the market. From currency speculation they want to minimize the risk of unfavourable exchange rate movement which can cause potential money loss. Forex companies offer hedging strategies based on the long term and short term foreign currency asset positions. This is achieved by using derivatives whose price movements are highly correlated with movements in the spot market.
Forward rates provides you with the fix cost of your foreign currency. Forward rate can be lower or greater than future spot rates. Forward contract is also suitable for internal transaction. Suppose company X from UK buy product from the US and also sell some product to the US. In this case, currency pair is same at the time of purchase or sale but position of currencies are different. You can make the contract where your income will be offset by the expense thus you need not to buy foreign currency every time.
Fx Forward And Hedge Accounting - Bookshelf
Accounting for derivatives, advanced hedging under IFRS
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