Winnipeg, Manitoba (TSX:BUI)
December 28, 2018
Revenue for the year was $288.0 million, down $24.0 million from 2017. The sales levels for the Company continue to be depressed due to weak commodity prices. Sales to Canada and the United States are down from the prior years while sales to other regions including Eastern Europe were flat year to year.
Year ending September 30, 2018
Revenue (millions) $288.0 Year Ago $312.0
Net (loss) income (millions) ($49.5) Year Ago $0.5
Net (loss) income/share ($1.98) Year Ago $0.02
Shares issued (millions) 25.0 Year Ago 25.0
Net Earnings down for the Year
The net loss for the year was $49.5 million, down from the $0.5 million income in the prior year. The reduction in gross margin due to increased discounts and write downs of certain inventories were the largest contributors to the decline, as well as lower gains on the sale of surplus assets, increased spending on research and development and interest expenses. Furthermore, in the current year the Company had a $5.8 million write down in tax assets due to a major reduction of the corporate tax rate in the United States during the first quarter, and a further $15.1 million write down as management decided to write off the remaining deferred tax assets in the United States. While the Company believes that these assets will be realized in future periods, management has decided to not
recognize these assets as at September 30, 2018. These assets will be recognized in future periods when profitability returns in the United States.
Sales for 2019 are expected to be flat over 2018 results. The Company expects to significantly reduce its losses in 2019 as it focuses on margin improvements and reduction of costs. The Company has already reduced overhead costs at the beginning of the year through staff reductions and other cost cutting measures. After making significant investments in product development over the last few
years, the Company is excited to start shipping its new tractor platform in early 2019 with horsepower ranging from 170 to 250 horsepower. This is in addition to the new 16 inch x 124 foot auger and 13 inch x 114 foot auger which started shipping late in 2018.