(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. EBITDA excludes cost associated with the reverse taken over transaction completed on May 31, 2011 (the "RTO").
(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 Chinese and international markets that negatively impacted the Corporation's ability to achieve growth levels experienced in the past, Green Star, through targeted cost reductions, still achieved net earnings of $0.33 per share as compared to $0.30 in the previous fiscal year" said Guan Lianyun, Chairman and CEO of Green Star. "With the additional agricultural lands acquired during the year, our production capacity of both fresh and processed food products for 2013 has increased significantly. With a cash balance of $7.8 million we are pleased to be distributing a quarterly dividend of $0.01 per share to our common shareholders on April 30, 2013, as the first implementation of our $0.04 per annum dividend policy, as well as investing in future expansion plans as demonstrated by last year's agricultural land acquisition, as well as exploring opportunities for other strategic acquisitions."
2012 Operational and Financial Highlights
-- Revenue of $39 million, a decline of 3.2% over $40 million in 2011-- EBITDA of $14.7 million, an increase of 3.1% over $14.3 million in 2011-- Net profit of $10.3 million, an increase of 16.2% over $8.8 million in 2011-- Had cash in treasury of $7.8 million as at December 31, 2012-- Signed additional farming land lease agreements to increase farming land base by 63.6% to approximately 1,483 acres-- Introduced dividend policy of distributing $0.04 per share per annum on a quarterly basis to holders of the Corporation's common shares, representing an estimated annualized yield of 4.54% based on the closing price of GRE shares on the TSX.V on April 26, 2013-- Had two Canadian food industry veterans join the Board of Directors-- Appointed a Canada based, food industry executive as manager of Business Development
Green Star 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 China Green Star Agricultural Corporation
Green Star 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.
Green Star 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, Green Star 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.
China Green Star Agricultural Corp. is listed on the TSX Venture Exchange under the symbol "GRE".
For further information on Green Star please visit our web site at www.greenstaragricultural.com.
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 plan to further implement its dividend policy, management's future expansion plan including acquisition of additional agricultural land and exploring other strategic acquisitions. 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.
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.
China Green Star Agricultural Corporation:
(416) 849 3858
Investor Cubed Inc.:
(647) 258-3311 or (888) 258-3323