2016 Q3 AGI Financial Report
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Ag Growth International Inc.<br />
Notes to unaudited interim condensed consolidated financial statements<br />
[in thousands of Canadian dollars, except where otherwise noted and per share data]<br />
September 30, <strong>2016</strong><br />
4. Seasonality of business<br />
Interim period sales and earnings historically reflect some seasonality. The third quarter is typically the strongest<br />
primarily due to high in-season demand at the farm level. <strong>AGI</strong>’s collections of accounts receivable are weighted<br />
towards the third and fourth quarters. This collection pattern, combined with seasonally high sales in the third<br />
quarter, result in accounts receivable levels increasing throughout the year and normally peaking in the third<br />
quarter.<br />
5. Business combinations<br />
[a] Rem Grain Vac product line<br />
Effective February 3, 2014, the Company acquired the assets related to the Rem Grain Vac product line [“Grain<br />
Vac”]. The acquisition of Grain Vac provides the Company with a complementary product line.<br />
During 2015, the allocation of the purchase price to acquired assets and liabilities was finalized. As at<br />
September 30, <strong>2016</strong>, the Company had cash held in trust of $250 [2015 – $250] relating to the acquisition of<br />
Grain Vac.<br />
[b] Vicwest’s Westeel Division<br />
Effective May 20, 2015, the Company acquired substantially all of the assets of Vicwest’s Westeel Division<br />
[“Westeel”], Canada’s leading provider of grain storage solutions. The acquisition of Westeel provides the<br />
Company with an expanded growth platform within North America and around the world.<br />
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