Lady, Don't get so testy. Value in this company is dependent on finding someone to aquire it, not based on its operational or financial prospects. While it has proprietary(turf) seeds other competitors have competitive offerings and the business is characterized as commodity. I don't see why someone would want to buy ABTX other than for their distribution and processing. Lets say it goes for $1 for each $1 of sales, with the dilution that $5/sh.
Here's the margin and debit issues from 92898 K(two weeks old)
. Gross Profit. The increase in gross profit is due to the Acquisition
Program. The decrease in the gross profit percentage is primarily due to a
significant change in the mix of products sold resulting from recent
acquisitions which have a higher percent of turfgrass seed sales. As is typical
in the industry, ABT's turfgrass seed companies use their suppliers, who are
typically large farmers that grow seed, to also clean, process, package, store,
and finance the seed prior to purchase. This results in lower margins being
captured by the turfgrass seed companies. The Company's goal is to raise gross
margins over the next several years as a result of the Company's attempt to
consolidate the forage and turfgrass sector of the seed industry, vertically
integrate its operations, and shift its product lines from primarily public
varieties (commodities) to proprietary (value added) products.
. On August 14, 1998, the Company and BABC amended the Revolving Credit
Facility to provide for borrowings of $15 million in excess of amounts allowed
under the borrowing base computation (the "BABC Bridge") This additional
borrowing carries a fixed interest rate of 18 percent and expires on December
31, 1998.
EMPLOYEES
As of September 16, 1998, the Company had 923 full-time employees including
six Executive Officers. The Company also had 156 part-time employees and
contracts with a number of independent sales representatives. |
