AgroFresh Solutions Clarifies Anticipated Full Year 2015 Results
November 18 2015 - 8:56AM
Business Wire
Company Issues Updated Full Year 2015
Guidance
Expects Full Year Adjusted EBITDA in the Range
of $87 Million to $93 Million
Announces $10 Million Share Repurchase
Program
AgroFresh Solutions, Inc. (NASDAQ:AGFS, AGFSW) (“AgroFresh” or
the “Company”), a global leader in produce freshness solutions,
announced today clarification of comments made on the Company’s
third quarter earnings conference call held on November 16, 2015
regarding its anticipated financial results for the full year 2015,
and also announced a $10 million share repurchase program.
Based on the Company’s strong year-to-date financial results and
current expectations for the remainder of the year, AgroFresh
expects to achieve full year Adjusted EBITDA in the range of $87
million to $93 million.
The Board of Directors of AgroFresh has also authorized a share
repurchase program of up to $10 million of the Company’s common
stock. Shares will be repurchased at the Company's discretion based
on ongoing assessments of the capital needs of the business, the
market price of its common stock, and general market conditions.
The repurchase program is anticipated to remain in effect for a
period of one year, but may be suspended or discontinued at any
time.
Thomas Macphee, Chief Executive Officer, commented, "As I shared
on our third quarter earnings conference call, our core business is
performing very well. With regard to the full year 2015, we expect
to outperform the market as our very good organic growth from
SmartFresh™ penetration of apples and other crops continues to
offset much of the market’s overall expected decline from the
record high of last year, which is being driven by adverse weather
conditions in the northern hemisphere. Harvista™ will be relatively
flat compared to last year’s results due to adverse weather in
Turkey and lower customer use relative to last year’s record apple
crop in Washington State. Based on these assumptions, we expect to
achieve full year Adjusted EBITDA in the range of $87 million to
$93 million and we expect to communicate to investors as more
information becomes available.”
Mr. Macphee added, “We see strong momentum with SmartFresh™, are
particularly pleased with the increased penetration that we are
achieving in apples and other crops, and expect this growth to
continue going forward. Customer feedback on Harvista™ has been
very positive, its efficacy is now widely accepted, and I remain
confident that we will continue to see strong, profitable growth
for Harvista, which we expect will generate annual sales in the
range of $50 million within the next five years. RipeLock™ is in
early commercial trials and channel interest in this game-changing
technology for bananas is very encouraging. We believe that the
sales potential for RipeLock™ could be $25 million or more in five
years. Overall, we believe that AgroFresh has strong organic growth
potential to approximately double sales within the next five years.
Reflecting our confidence in our growth strategy and expectations,
as well as our commitment to enhancing long-term shareholder value,
we are also announcing a share repurchase program.”
About AgroFreshAgroFresh Solutions, Inc. (NASDAQ: AGFS)
is a global industry leader in providing innovative data-driven
specialty solutions aimed at enabling growers and packers of fresh
produce to preserve and enhance the freshness, quality and value of
fresh produce and to maximize the percentage of produce supplied to
the market relative to the amount of produce grown. Its flagship
product is the SmartFresh™ Quality System, a freshness protection
technology proven to maintain firmness, texture and appearance of
fruits during storage and transport. SmartFresh is currently
commercialized in over 40 countries worldwide. For more
information, please visit www.agrofresh.com.
Forward-Looking StatementsIn addition to historical
information, this release contains “forward-looking statements”
within the meaning of the “safe harbor” provisions of the United
States Private Securities Litigation Reform Act of 1995. All
statements, other than statements of historical facts, included in
this release that address activities, events or developments that
the Company expects or anticipates will or may occur in the future
are forward-looking statements and are identified with, but not
limited to, words such as “anticipate”, “believe”, “expect”,
“estimate”, “plan”, “outlook”, and “project” and other similar
expressions (or the negative versions of such words or
expressions). Forward-looking statements include, without
limitation, information concerning the Company’s possible or
assumed future results of operations, including all statements
regarding 2015 guidance, anticipated future growth, business
strategies, competitive position, industry environment, potential
growth opportunities and the effects of regulation. These
statements are based on management’s current expectations and
beliefs, as well as a number of assumptions concerning future
events. Such forward-looking statements are subject to known and
unknown risks, uncertainties, assumptions and other important
factors, many of which are outside the Company’s management’s
control that could cause actual results to differ materially from
the results discussed in the forward-looking statements. These
risks include, without limitation, the risk that the Business
Combination disrupts current plans and operations; the Company’s
ability to recognize the anticipated benefits of the Business
Combination, which may be affected by, among other things,
competition and the ability of the combined business to grow and
manage growth profitably; costs related to the Business Combination
and/or related to operating AgroFresh as a stand-alone public
company; changes in applicable laws or regulations, and the
possibility that the Company may be adversely affected by other
economic, business, and/or competitive factors. Additional risks
and uncertainties are identified and discussed in the Company’s
filings with the SEC, including the Quarterly Report on Form 10-Q
filed on November 16, 2015, available at the SEC’s website at
www.sec.gov.
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version on businesswire.com: http://www.businesswire.com/news/home/20151118005923/en/
AgroFresh Solutions, Inc.Margaret M. Loebl,
215-592-2820Executive Vice President and Chief Financial
OfficerorSloane & CompanyErica Bartsch,
212-446-1875ebartsch@sloanepr.com
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