Q1 Financial Report - 2011

CONTRACTUAL OBLIGATIONS (thousands of dollars)
Total 2011 2012 2013 2014 2015+
Debentures $114,885 $ 0 $ 0 $ 0 $114,885 $ 0
Long-term debt 24,321 12 14 0 0 24,295
Capital leases 367 235 132 0 0 0
Operating leases 2,212 716 510 313 248 425
Total obligations $141,785 $963 $656 $313 $115,133 $24,720
Debentures relate to the aggregate principal amount of debentures issued by the Company in
October 2009 (see “Convertible Debentures”). Long-term debt at March 31, 2011 is comprised of
USD $25.0 million aggregate principal amount of secured notes issued through a note purchase
and private shelf agreement and GMAC financed vehicle loans. Capital lease obligations relate to
a number of leases for equipment. The operating leases relate primarily to vehicle, equipment,
warehousing, and facility leases and were entered into in the normal course of business.
As at June 13, 2011, the Company had no outstanding commitments in relation to capital
expenditures for building and equipment.
CAPITAL RESOURCES
Cash
The Company had a cash balance of $10.8 million as at March 31, 2011 (2010 – $88.4 million).
The Company’s cash balance at March 31, 2010 was higher than is typical because it included the
majority of the net proceeds received from an October 2009 debenture offering (see “Convertible
Debentures”). The debenture proceeds were largely deployed later in fiscal 2010.
Long-term debt
On October 29, 2009, the Company authorized the issue and sale of USD $25.0 million aggregate
principal amount of secured notes through a note purchase and private shelf agreement. The notes
are non-amortizing and bear interest at 6.80% and mature October 29, 2016. The agreement also
provides for a possible future issuance and sale of notes of up to an additional USD $75.0 million
aggregate principal amount, with maturity dates no longer than ten years from the date of
issuance. Ag Growth is subject to certain financial covenants, including a maximum leverage
ratio and a minimum debt service ratio. The Company is in compliance with all financial
covenants.
On October 29, 2009, the Company also entered a credit facility with three Canadian chartered
banks that includes CAD $10.0 million and USD $2.0 million available for working capital
purposes, and provides for non-amortizing long-term debt of up to CAD $38.0 million and USD
$20.5 million. No amounts were drawn under these facilities as at March 31, 2011. The facilities
bear interest at rates of prime plus 0.50 % to prime plus 1.50% based on performance calculations
and matures on October 29, 2012. Ag Growth is subject to certain financial covenants, including
a maximum leverage ratio and a minimum debt service ratio, and is in compliance with all
financial covenants.
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