Server: Netscape-Enterprise/2.01 Date: Mon, 29 Dec 1997 18:07:04 GMT Content-type: text/html Ag Services Investor Information

Welcome to the Ag Services Investor Information Page!


Contents

Corporate Profile
Financial Strength
Looking Forward
New Markets
Graphs
Analysts' Reports
Quarterly Reports
Press Releases
Ag Services in the News


Press Here to view Ag Services'
1997 Annual Report


Corporate Profile

Ag Services of America Inc. supplies and provides credit for agricultural supplies. The Company sells farm inputs (the raw materials for farming), including seed, fertilizer, agricultural chemicals and fertilizer. The Company also provides crop insurance and cash advances for rent, fuel and irrigation to farmers. The seed, chemicals and fertilizer are purchased from various national and regional suppliers, assuring the customer a complete line of quality products. The Company's strategy is to be a single source for farm inputs while also providing the credit to finance these inputs and other operational needs. Ag Services' operates in 28 states with the primary target market being the Midwest corn and soybean producer.

Headquartered in Cedar Falls, Iowa, Ag Services began as an industry innovator in 1985. During the last five years of operation through fiscal 1997, the Company has produced a 30 percent compound average growth in net income, with net revenues increasing at an average of 33 percent annually.

Get a stock quote of Ag Services from USA TODAY's Money Section.

Financial Strength

Because of Ag Services' past financial performance, the Company was able to negotiate an asset backed securitization program with an available borrowing amount of $135 million. The program began at the start of the current fiscal year and will provide the following benefits:

Borrowing is done via the commercial paper market, which allows for a considerable interest cost savings. The savings could be as high as 100 basis points on outstanding borrowings.

The Company can pass a portion of the interest cost savings to customers to remain competitive in the farm lending market.

Looking Forward

New Markets

By being in a recession resistant industry, Ag Services has maintained steady growth and profitability. To maintain that growth and retain customers, the Company is continually refining our program to tailor to new customer segments. We have also been using new methods to penetrate market areas which include the following.

In early fiscal 1998, Ag Services entered into an agreement to lease three retail fertilizer and chemical facilities in northwestern Illinois. We expect these retail outlets to generate a customer base through which we can offer our financing program and supply farm input products. If these facilities perform as we project, we plan to duplicate this concept in other areas of our market.

During the 1998 crop season, Ag Services will introduce our new "AgriFlex Credit" program. The program will offer additional input financing options to customers which will allow us to service a broader customer base.

Geographical market expansion remains a company commitment. To accomplish this goal, the Company plans to hire additional district sales managers and increase exposure through participation in farm industry shows around the country

Graphs

Graph showing Net Income
Graph showing Net Revenues
Graph Showing Increases in the Marketplace
Graph Showing Growth in Equity

Analysts' Reports and Other Reviews

Frost Research, Inc. Equity Research, Recommendation: Strong Buy - February 7, 1997
Frost Research, Inc. Equity Research, Recommendation: Strong Buy - December 11, 1996
CL King & Associates Institutional Report - December 2, 1996
George K. Baum & Company Equity Research, Good Value Stock - November 19, 1996
Farm Chemicals Magazine "Giving them Credit" - November 1996
CL King & Associates Institutional Report - September 27, 1996
Investor's Business Daily The Newspaper for Important Decision Makers - April 24, 1996
CL King & Associates Institutional Report, Recommendation: Buy - January 18, 1996
Fidelity Advisor #1 Undiscovered Stock For 1996 - January 22, 1996
CIBC Wood Gundy Securities Recommendation: Buy - January 25, 1996

Quarterly Reports

Fiscal 1998 Second Quarter Report
Fiscal 1998 First Quarter Report

Fiscal 1997 Third Quarter Report
Fiscal 1997 Second Quarter Report
Fiscal 1997 First Quarter Report

Press Releases

June 24, 1997 Ag Services of America, Inc. Announces Record First Quarter Results
April 30, 1997 Ag Services of America, Inc. Comments on Spring 1997 Progress and Fiscal 1998 Projections
March 31, 1997 Ag Services of America, Inc. Announces Record Fourth Quarter and Year End Results
March 12, 1997 Ag Services of America, Inc. Announces 135 Million Asset Backed Securitization Program
December 23, 1996 Ag Services of America, Inc. Announces Record Third Quarter and Nine Month results
November 25, 1996 Ag Services of America, Inc. Announces move to New York Stock Exchange
November, 1996 Ag Services of America, Inc. Selected one of "200 BEST SMALL COMPANIES"
September 25, 1996 Ag Services of America, Inc. Announces Record Second Quarter and Six Month Results
June 24, 1996 Ag Services of America, Inc. Announces Record First Quarter Results
June 7, 1996 Ag Services of America, Inc. announces the calling for conversion or redemption all of the company's outstanding 7% convertible subordinated debentures due 2003
April 22, 1996 Ag Services of America, Inc. Announces Record Year End Results

Ag Services in the News

June 19, 1996Ag Services of America, Inc. Awarded 1996 Service Entrepreneur of the Year Award


SAFE HARBOR PROVISION

Information contained on this web site, other than historical information, should be considered forward looking which reflect Management's current views of future events and financial performance that involve a number of risks and uncertainties. The factors that could cause actual results to differ materially include, but are not limited to, the following: general economic conditions within the agricultural industry; competitive factors and pricing pressures; changes in product mix; changes in the seasonality of demand patterns; changes in weather conditions; changes in agricultural regulations; and the risks detailed in the Company's Securities and Exchange Commission filings.


For further information contact:

Brad D. Schlotfeldt
Vice President Finance and Treasurer
Ag Services of America, Inc.
PO Box 668
Cedar Falls, Iowa 50613
bschlotf@agservices.com


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