While volumes were up in
several key items, such as plant food, seed corn, feed, liquid fuel and
lubricants, we experienced lower margins on many of our products. Many of the strategic initiatives and
investments we have made are already showing
early signs of positive results.
However, we are even more excited that these initiatives will have strong
long term benefits to our customers and the future financial performance of our
well as the company wide promotionto celebrate our 25% growth with FS InVISION™ Seed Corn.
The new dry fertilizer storage at Knoxville was well received by growers. Enhancements to almost all of our NH3 sites will create safer and more efficient handling of NH3. We continue to plan for future projects that will enhance efficiency and promote volume growth.
At the same time, we must make sure we "right size" locations during the more difficult times with the right amount of equipment and service capacities.
In spite of stronger volumes, the gross and service for agronomy/seed was down 12% during the fiscal year.
The addition of our 12th FAST STOP® Express at Harlan helped maintain growth of diesel and gasoline volumes. We are extremely pleased with the first year success of the Harlan retail fuel location. We recently purchased property on Highway 34 in Creston, IA and Highway 71 in Audubon, IA for future construction of new FAST STOP Express locations.
Diesel volume was up, representing a 10% growth. Plus, Dieselex® Gold, SURE-FLO™ and FS Clean Flow™ additive sales continued a nice growth pace.
Lubricants, DEF and coolant sales showed an increase with the continued implementation of bulk delivery strategies from Oskaloosa and Underwood sites.
We have added several new liquid fuel routes in the company:
· East & West routes in Nodaway, IA
· Griswold, IA
· Burlington, IA
· Bloomfield, IA
New liquid fuel storage sites were constructed at Nodaway, Burlington and Knoxville to service our growing liquid fuel volumes.
Overall, energy gross and service income was up 1.8% over last year.
The feed department generated 1% growth in gross and service during the fiscal 2015-16 year.
· After tax, net income is $8.5 million.
· In August 2016, the AGRILAND FS Board of Directors authorized patronage to be paid 80% cash and 20% stock.
· The audit committee also authorized a stock redemption of $750,000 to be paid at the end of this calendar year (2016).
· After-tax earnings will increase retained earnings by $8 million and bring our retained earnings up to over $122 million.
· Working capital increased during the year by $8.8 million.