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TheStreet Open House

Amira Nature Foods Ltd Announces First Quarter Fiscal 2014 Financial Results

Conference Call

The Company will hold an investor conference call today at 4:30 p.m. Eastern time. The dial-in number for this conference call is (877) 407-3982 for North American listeners and (201) 493-6780 for international listeners. Live audio of the conference call will be simultaneously webcast in the investor relations section of the Company's website at http://www.amirafoods.com.

An audio replay will be available following the completion of the conference call by dialing (877) 870-5176 for North American listeners or (858) 384-5517 for international listeners (conference ID 418626). The webcast of the teleconference will be archived and available on the Company’s website.

About Amira Nature Foods

Founded in 1915, Amira has evolved into a leading global provider of packaged Indian specialty rice, with sales in over 40 countries today. Amira sells Basmati rice, a premium long-grain rice grown only in certain regions of the Indian sub-continent, under their flagship Amira brand as well as under other third party brands. Amira sells its products primarily in emerging markets through a broad distribution network. Amira’s headquarters are in Dubai, United Arab Emirates, and it also has offices in India, Malaysia, Singapore, the United Kingdom, and the United States.

Cautionary Note on Forward-Looking Statements

This release may contain forward-looking statements within the meaning of the U.S. federal securities laws. These forward-looking statements generally can be identified by phrases such as that we or our members of management “believe,” “expect,” “anticipate,” “foresee,” “forecast,” “estimate” or other words or phrases of similar import. Specifically, these statements include, among other things, statements that describe our expectations for the growth of our business, expansion into new geographic markets, maintaining and expanding our relationship with key retail partners, the financial impact of new sales contracts on our revenue, our plans to make significant capital expenditures, and other statements of management’s beliefs, intentions or goals. It is uncertain whether any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do, what impact they will have on our results of operations, financial condition, or the price of our ordinary shares. These forward-looking statements involve certain risks and uncertainties that could cause actual results to differ materially from those indicated in such forward-looking statements, including but not limited to our ability to penetrate and increase the acceptance of our products in new geographic markets; our ability to perform our agreements with customers and further develop our relationships with key retail partners; our ability to recognize revenue from our contracts; continued competitive pressures in the marketplace; our reliance on a few customers for a substantial part of our revenue; our ability to implement our plans, forecasts and other expectations with respect to our business and realize additional opportunities for growth; and the other risks and important factors contained and identified in our filings with the Securities and Exchange Commission. All forward-looking statements attributable to us or to persons acting on our behalf are expressly qualified in their entirety by these risk factors. Other than as required under the securities laws, we undertake no obligation to update any forward-looking or other statements herein, whether as a result of new information, future events or otherwise.

(1) Basic and diluted earnings per share is calculated by dividing our profit after tax as reduced by the amount of a non-controlling interest reflecting the remaining approximately 19.6% of Amira India that is not indirectly owned by us, by our weighted average outstanding ordinary shares during the applicable period.

 
Amira Nature Foods Ltd
 
Condensed Consolidated Statements of Financial Position
 
       
As at   As at
June 30, 2013 March 31, 2013
(Unaudited)  
ASSETS
Non-current
Intangible assets $ 596,771 $ 607,871
Property, plant and equipment 21,290,063 23,467,379
Other long-term assets   433,180     430,739  
Total non-current assets $ 22,320,014   $ 24,505,989  
 
Current
Inventories $ 160,803,687 $ 181,459,799
Trade receivables 62,356,613 66,792,434
Derivative financial instruments - 1,260,512
Prepayments 12,873,666 8,386,856
Other current assets 11,371,702 10,856,050
Cash and cash equivalents   32,611,996     33,270,338  
Total current assets $ 280,017,664   $ 302,025,989  
Total assets $ 302,337,678   $ 326,531,978  
 
EQUITY AND LIABILITIES
Equity
Share capital $ 9,111 $ 9,111
Share premium 82,639,766 82,639,766
Share based compensation reserve 313,485 227,674
Reserve for available for sale financial assets (6,384 ) (21,561 )
Currency translation reserve (14,687,829 ) (5,582,983 )
Cash flow hedging reserve (4,251,078 ) 258,647
Actuarial gain reserve 26,340 26,340
Restructuring reserve 9,398,927 9,398,927
Retained earnings 50,229,432 44,348,684
Equity attributable to Shareholders of the Company $ 123,671,770 $ 131,304,605
Equity attributable to Non-Controlling Interest   10,478,803     12,328,130  
Total Equity   134,150,573     143,632,735  
 
Liabilities
Non-current liabilities
Employee benefit obligations $ 199,611 $ 185,437
Debt 3,943,933 4,831,416
Deferred tax liabilities   6,872,048     8,527,874  
Total non-current liabilities $ 11,015,592   $ 13,544,727  
 
Current liabilities
Trade payables $ 4,483,286 $ 4,516,657
Debt 136,351,744 156,785,820
Current tax liabilities (net) 2,546,577 2,658,236
Derivative financial instruments 7,382,468 -
Other current liabilities   6,407,438     5,393,803  
Total current liabilities $ 157,171,513   $ 169,354,516  
Total liabilities $ 168,187,105   $ 182,899,243  
Total equity and liabilities $ 302,337,678   $ 326,531,978  
 
Amira Nature Foods Ltd
 
Condensed Consolidated Statements of Income
 
   
Three months ended
June 30, 2013   June 30, 2012
(Unaudited)   (Unaudited)
Revenue $ 110,285,088 $ 80,171,804
Other income 37,876 51,399
Cost of material (89,871,922 ) (36,778,793 )
Change in inventory of finished goods 2,368,511 (29,108,552 )
Employee expenses (2,144,918 ) (804,681 )
Depreciation and amortization (488,883 ) (460,898 )
Freight, forwarding and handling expenses (6,541,015 ) (2,724,280 )
Other expenses   (3,421,597 )   (2,912,313 )
$ 10,223,140 $ 7,433,686
Finance costs (5,163,522 ) (5,338,500 )
Finance income 784,977 109,167
Other financial items   3,758,638     2,269,416  
Profit before tax $ 9,603,233 $ 4,473,769
Income tax expense   (2,256,537 )   (1,201,915 )
 
Profit after tax $ 7,346,696 $ 3,271,854
Profit after tax attributable to:
Shareholders of the company 5,880,748 2,630,571
Non-controlling interest 1,465,948 641,283
Earnings per share
 
Basic and diluted earnings per share $ 0.21   $ 0.13  
 
Amira Nature Foods Ltd
 
Condensed Consolidated Statements of Comprehensive Income
 
   
Three months ended
June 30, 2013   June 30, 2012
(Unaudited)   (Unaudited)
Profit after tax $ 7,346,696 $ 3,271,854
Other comprehensive income
Items to be reclassified to income statement in subsequent period
Available for sale financial assets
-Current period gain/(loss) 28,596 (14,285 )
-Income tax (9,720 ) 4,635
Cash flow hedge reserve

-Current period gain/(loss)

(7,983,593 ) (10,224,404 )
-Reclassification to income statement (513,772 ) -
-Income tax 2,888,254 3,317,308
Exchange differences on translation of foreign operations $ (11,324,434 ) $ (2,893,428 )
Other comprehensive loss for the period, net of tax $ (16,914,669 ) $ (9,810,174 )
Total comprehensive loss for the period $ (9,567,973 ) $ (6,538,320 )
 
Total comprehensive loss for the period attributable to:
Shareholders of the Company (7,718,646 ) (5,256,810 )
Non-controlling interest   (1,849,327 )   (1,281,510 )
 
Amira Nature Foods Ltd
 
Condensed Consolidated Statements of Changes in Equity
(Unaudited)
 
 
  Share   Share  

Share

 

Reserve for

 

Currency

 

Cash flow

 

Actuarial

 

Restructuring

 

Retained

 

Equity

 

Equity

 

Total

capital premium

based

available

translation

hedging

gain/(loss)

Reserve

Earnings

attributable

attributable

Equity

compensation

for

Reserve

Reserve

Reserve

to

to

reserve

sale

Shareholders

Non-

financial

of the

controlling

               

assets

                     

Company

 

interest

   
Balance as at April 1, 2012 $ 100 $ $ $ (25,496 ) $ (1,945,447 ) $ $ 9,954 $ 9,398,927 $ 29,292,375 $ 36,730,413 $ 8,954,156 $ 45,684,569
Profit after tax 2,630,571

$

2,630,571

641,283

$

3,271,854

Other comprehensive income/(loss) for the period

(7,760 ) (2,326,316 ) (5,553,305 )

$

(7,887,381 ) (1,922,793 )

$

(9,810,174 )
Total comprehensive income/(loss) for the period   $   $   $   $ (7,760 )   $ (2,326,316 )   $ (5,553,305 )   $   $   $ 2,630,571   $ (5,256,810 )   $ (1,281,510 )  

$

(6,538,320 )
Balance as at June 30, 2012   $ 100   $   $   $ (33,256 )   $ (4,271,763 )   $ (5,553,305 )   $ 9,954   $ 9,398,927   $ 31,922,946   $ 31,473,603     $ 7,672,646     $ 39,146,249  
                                                 
Balance as at April 1, 2013 $ 9,111 $ 82,639,766 $ 227,674 $ (21,561 ) $ (5,582,983 ) $ 258,647 $ 26,340 $ 9,398,927 $ 44,348,684 $ 131,304,605 $ 12,328,130 $ 143,632,735
Share based compensation 85,811

$

85,811

$

85,811
Transaction with owners $ $ $ 85,811 $ $ $ $ $ $ $ 85,811 $ $ 85,811
Profit after tax 5,880,748

$

5,880,748 1,465,948

$

7,346,696

Other comprehensive income/(loss) for the period

15,177 (9,104,846 ) (4,509,725 )

$

(13,599,394 ) (3,315,275 )

$

(16,914,669 )
Total comprehensive income/(loss) for the period   $   $   $   $ 15,177     $ (9,104,846 )   $ (4,509,725 )   $   $   $ 5,880,748   $ (7,718,646 )   $ (1,849,327 )   $ (9,567,973 )
Balance as at June 30, 2013   $ 9,111   $ 82,639,766   $ 313,485   $ (6,384 )   $ (14,687,829 )   $ (4,251,078 )   $ 26,340   $ 9,398,927   $ 50,229,432   $ 123,671,770     $ 10,478,803     $ 134,150,573  
 
Amira Nature Foods Ltd
 
Condensed Consolidated Statements of Cash Flows
 
       
June 30, 2013   June 30, 2012
(Unaudited) (Unaudited)
(A) CASH FLOW FROM OPERATING ACTIVITIES
Profit before tax $ 9,603,233 $ 4,473,768
Adjustments for non-cash items (1,869,009 ) (2,083,040 )
Adjustments for non-operating expenses 3,954,965 4,241,217
Changes in operating assets and liabilities   2,777,060     (17,038,395 )
$ 14,466,249 $ (10,406,450 )
Income Taxes paid   (225,043 )   (191,174 )
Net cash generated from/(used in) operating activities $ 14,241,206   $ (10,597,624 )
 
(B) CASH FLOW FROM INVESTING ACTIVITIES
Purchase of property, plant and equipment $ (315,703 ) $ (245,883 )
Purchase of intangible assets (67,286 ) (27,485 )
Proceeds from sale of property, plant and equipment 5,332 -
Interest income   784,976     109,167  
Net cash generated from/(used in) investing activities $ 407,319   $ (164,201 )
 
(C) CASH FLOWS FROM FINANCING ACTIVITIES
Net proceeds from/(repayment of) short term debt $ (7,714,984 ) $ 13,000,712
Repayment of long term debt (500,743 ) (599,186 )
Interest paid   (4,743,922 )   (4,350,384 )
Net cash (used in)/ generated from financing activities $ (12,959,649 ) $ 8,051,142  
 
(D) Effect of change in exchange rate on cash and cash equivalents (2,347,218 ) (2,010,709 )
   
Net decrease in cash and cash equivalents (A+B+C+D) $ (658,342 ) $ (4,721,392 )
Cash and cash equivalents at the beginning of the period 33,270,338 8,368,256
Cash and cash equivalents at the end of the period $ 32,611,996   $ 3,646,864  

Non-IFRS Financial Measures

In evaluating our business, we consider and use the non-IFRS measures EBITDA, adjusted earnings per share, adjusted net working capital and net debt as supplemental measures to review and assess our operating performance. The presentation of these non-IFRS financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with IFRS. We define: (1) EBITDA as profit after tax plus finance costs (net of finance income), income tax expense and depreciation and amortization; (2) adjusted earnings per share as the quotient of: (a) profit after tax and (b) the sum of our outstanding ordinary shares and the ordinary shares subject to the exchange agreement between us and the non-controlling shareholders of Amira India or 35.7 million shares, during the applicable period; (3) adjusted net working capital as total current assets minus: (a) cash and cash equivalents and (b) trade payables, current tax liabilities (net) and other current liabilities; and (4) net debt as total current and non-current debt minus cash and cash equivalents.

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