New AgriBioTech, Inc. Chairman/CEO Announces Targets and Agenda
HENDERSON, Nev.--(BUSINESS WIRE)--March 8, 1999--Richard Budd, chairman and chief executive officer (CEO), AgriBioTech, Inc. ("ABT") (Nasdaq:ABTX) made several announcements today regarding the company's near term prospects, financial targets and its fiscal year 2000 (FY2000) agenda.
"As a result of a series of comprehensive meetings March 4-5 with senior management regarding our financial performance and Company goals, a number of things have become clear," said Budd. "Demand for our products and spring shipments appears to be very good. Second, although we cannot predict the profitability of the individual remaining two quarters in our fiscal year ending June 30, 1999 (FY1999) due to the seasonality of the seed business, management believes at this time that, excluding the previously announced restructuring charge, we can at least break even on the pre-tax profit line for the remaining sixth-month period of our FY1999."
Budd continued, "Third, and most importantly, I and the ABT Co-Presidents have developed and will be implementing a plan to remove at least $14 million on an annualized basis from the expense side of the business by the end of FY1999." Budd noted that, as a result of this, "management expects that these expense reductions will make ABT profitable in FY2000."
Budd also outlined his and ABT's priorities going forward, as follows: -0- *T
-- Strengthening and improving the company's capital structure,
-- Successful integration of the acquired companies by the FY2000
first quarter so that ABT is operating as a single entity before
the busy fall selling season,
-- Achieve profitability in FY2000. *T -0-
Also today, the company announced that Richard Budd filed an SEC Form 4 last Friday, March 5, 1999, giving notice that he purchased personally, on the open market, 100,000 shares of ABT common stock on Monday, March 1, 1999 at a price of $4.70 per share.
AgriBioTech, Inc. is a fully integrated full service seed company specializing in the forage and turfgrass seed sector, complete with research and development of proprietary seed varieties, seed processing plants, and a national and international distribution and sales network. ABT's vision is to lead the turf and forage seed industry in discovering its value potential.
The statements in this press release regarding anticipated revenues, expense reductions, operating results, and integration and others are forward-looking and involve a number of risks and uncertainties, and actual results could differ materially. Among the factors that could cause actual results to differ are the following: need for the company to manage its growth, intense competition in the seed industry, seasonality of quarterly results, weather conditions, timing of implementation of the current integration plan, challenges associated with rolling out the new IT systems to all portions of the company, fluctuations in demand for the company's products, varying availability, price and quality of supply, competitive pricing, the company's historical lack of profitability, volatile stock price and other risks. For a detailed discussion of these and other risk factors relevant to an investment in the company, please refer to the company's SEC filings, including the company's recent Forms 10-Q (Feb. 19, 1999), S-3 (Oct. 26, 1998) and 10-K (Oct. 6, 1998).
--30--ari/sf* mr/sf
CONTACT:
AgriBioTech, Inc., Henderson
Tony Blum, 702/566-2440
www.agribiotech.com
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