Five Points, California, USA
February 13, 2013

S&W Seed Company (Nasdaq: SANW) today announced financial results for its second quarter of fiscal year 2013 ended December 31, 2012.

Second Quarter Fiscal Year 2013 and Other Business Highlights:

• Record quarterly revenues of $13.7 million, an increase of 189% year-over-year;
• Record six month revenues of $20.4 million, an increase of 88% year-over-year;
• Seed and crop revenues for the quarter increased 233% versus the comparable period last year;
• Organic (non-Imperial Valley Seeds ("IVS") related) seed and crop revenue growth of 54% versus second quarter of the prior year;
• Improved gross margins on the company's organic seed and crop operations to 19.1% for the second quarter compared to 12.7% in the first quarter excluding stevia-related operations;
• Non-GAAP adjusted EBITDA for second quarter increased 20% compared to the second quarter of fiscal 2012 and increased 172% compared to the first quarter of fiscal 2013;
• Improved quarter-over-quarter basic EPS (excluding special items) of $0.05 compared to $0.01 in the first quarter of fiscal 2013;
• Significant expansion in planned production and sourcing of alfalfa seed for the fall 2013 harvest; and
• Progress made on the company's long-term collaboration with Monsanto and FGI through the commencement of field trials.

Quarterly results

For the second fiscal quarter ended December 31, 2012, S&W reported revenues of $13.7 million versus $4.7 million in the comparable period of the prior year, an increase of 189%, and versus $6.7 million in first quarter ended September 30, 2012, an increase of 104%. The company experienced 54% organic (non-IVS related) revenue growth on seed and crop revenues during the current quarter versus the comparable period of the prior year driven by strong pricing power and increased volumes for the company's proprietary alfalfa seed varieties. Revenue from the Company's recent acquisition of IVS, completed on October 1, 2012, exceeded expectations contributing $7.3 million to the company's second quarter combined revenues.

Gross profit margins for the company's organic seed and crop sales (excluding stevia-related operations) improved to 19.1% in the second quarter of fiscal 2013 compared to 12.7% in the first quarter of fiscal 2013 due to an increase in average selling price quarter-over-quarter. Gross profit margins were down compared to 27.3% in the second quarter of fiscal 2012 which reflects the higher costs of seed production in fiscal 2013 versus 2012. Gross profit margins on IVS's alfalfa seed sales were 8.5%, leading to a blended seed and other crop margin (excluding stevia-related operations) of 13.4% during the quarter.

Full release
 

Website: http://www.swseedco.com/

Published: February 13, 2013