On balance, although the U.S. drought of 2012 is anticipated to negatively impact the second quarter of 2013, the lingering effects of the drought are expected to dissipate later in the quarter with the arrival of the new crop season. Accordingly, based on current conditions, management expects adjusted EBITDA in the second quarter to fall below the strong levels achieved in 2012. However, the anticipated decrease is not expected to be as significant as the year-over-year decrease experienced in the first quarter of 2013.
Management's outlook for the second half of 2013 remains optimistic. Moisture levels in the United States corn-belt have improved significantly and if realized the current forecast for a 35% increase in corn production over 2012 should greatly benefit demand for grain handling equipment. The Company's international business continues to grow and we remain confident that the talent of our sales teams, our growing relationships offshore and the strength of our product offering will enable this growth to be sustained.
Consistent with prior years, demand in 2013, particularly in the second half, will be influenced by weather patterns, crop conditions, the timing of harvest and conditions during harvest. Yield per acre and the number of acres ultimately harvested may be impacted by dry conditions that persist in some regions of the U.S., particularly in the Great Plains, and the likelihood of regional flooding in western Canada. Changes in global macro-economic factors, including the availability of credit in new markets, also may influence demand, primarily for commercial grain handling and storage products. Results may be also be impacted by changes in steel and other material input costs and the rate of exchange between the Canadian and U.S. dollars.
Dividends
AGI today announced the declaration of cash dividends of $0.20 per common share for the months of June, July and August 2013. The dividends are eligible dividends for Canadian income tax purposes. AGI's current annualized cash dividend rate is $2.40 per share.
The table below sets forth the scheduled payable and record dates:
---------------------------------------------------------------------------- Monthly dividend Payable date Record date---------------------------------------------------------------------------- June 2013 July 15, 2013 June 28, 2013---------------------------------------------------------------------------- July 2013 August 15, 2013 July 31, 2013---------------------------------------------------------------------------- August 2013 September 13, 2013 August 30, 2013----------------------------------------------------------------------------
MD&A and Financial Statements
AGI's financial statements and management's discussion and analysis for the three month period ended March 31, 2013 can be obtained at http://media3.marketwire.com/docs/Q1aggrowth623.pdf and will also be available electronically from SEDAR (www.sedar.com) or from Ag Growth's website (www.aggrowth.com).
Conference Call
AGI will hold a conference call on Friday, May 10, 2013, at 2:00 p.m. EST to discuss its results for the three month period ended March 31, 2013. To participate in the conference call, please dial 1-866-226-1792 or for local access dial 416-340-2216. An audio replay of the call will be available for seven days. To access the audio replay, please dial 1-800-408-3053 or for local access dial 905-694-9451. Please quote pass code 4173771.
