Rubicon

[ari]

Looking good to finish the year until RBC dropped the ball.....last 6 mths have been quite dismal and I was really hoping they had turned the corner.....

[minimoke]

Huge earnings downgrade. I'll have to look at the global revenue areas but loosing $1m just in a limited area of the USA seems like a hell of a hit.

“These events were severe, and have affected our current sales seasonmore than we had originally projected, as they have negatively impacted the ability of many of ourcustomers’ to plant their current season’s seedling volume due to sustained high levels of waterdestroying planting acreage they had prepared. Our revised sales (total and mix) expectations for thecurrent year are down accordingly, and we now targeting a US-GAAP EBITDA1result for ArborGen forthis fiscal year of circa US$ 6 million, compared with our previous guidance of ‘approaching US$7 million’. ”

I'll take it that "circa 6m" = closer to $5m

[BlackPeter]

Huge earnings downgrade. I'll have to look at the global revenue areas but loosing $1m just in a limited area of the USA seems like a hell of a hit.

“These events were severe, and have affected our current sales seasonmore than we had originally projected, as they have negatively impacted the ability of many of ourcustomers’ to plant their current season’s seedling volume due to sustained high levels of waterdestroying planting acreage they had prepared. Our revised sales (total and mix) expectations for thecurrent year are down accordingly, and we now targeting a US-GAAP EBITDA1result for ArborGen forthis fiscal year of circa US$ 6 million, compared with our previous guidance of ‘approaching US$7 million’. ”

I'll take it that "circa 6m" = closer to $5m

So - how much of these $5 m or whatever do they already use up to feed the troughers? I guess shareholders will be happy to pick up the balance ...

Hard to run these days a business which can't cope with bad weather events - these events will only go up in frequency and severity.

No surprises here!

[t.rexjr]

Huge earnings downgrade. I'll have to look at the global revenue areas but loosing $1m just in a limited area of the USA seems like a hell of a hit.

“These events were severe, and have affected our current sales seasonmore than we had originally projected, as they have negatively impacted the ability of many of ourcustomers’ to plant their current season’s seedling volume due to sustained high levels of waterdestroying planting acreage they had prepared. Our revised sales (total and mix) expectations for thecurrent year are down accordingly, and we now targeting a US-GAAP EBITDA1result for ArborGen forthis fiscal year of circa US$ 6 million, compared with our previous guidance of ‘approaching US$7 million’. ”

I'll take it that "circa 6m" = closer to $5m

Excludes 'corporate costs' too. Wonder how insignificant Moriarty's exit package was...

In the big picture though only short term heart ache.

[Leftfield]

Huge disappointment today, especially as some months ago management came out saying they expected little effect from the Hurricanes. Today's backdown makes me wonder about the quality of management and reporting.

TA not looking great for some time. I've lost a bit of faith in this one and have substantially reduced my holding.

[ari]

And only 3 mths earlier????? .......19 October 2018 – Rubicon announced today that its 100%-owned US operating business, ArborGen
Inc (“ArborGen”), had sustained damage at only one of its nine orchards in the US South as a result of
the recent Hurricane Michael – the third most intense Atlantic hurricane to have ever made landfall
in the US, with wind speeds above 250 km/h. Mr Knott, the Chairman of Rubicon and ArborGen said
that the Company was currently assessing the impact, and would update the market in due course, if
required. Mr Knott said that none of ArborGen’s seven US nursery facilities or any of its current year
crops sustained damage, and that the Company’s previously provided US-GAAP EBITDA1
guidance for
ArborGen of ~US$7 2 million for the current financial year ending 31 March 2019 remained in place.

[winner69]

Are these much touted superior Arborgen trees Knott free?

[winner69]

You guys need to keep the the faith if you really believe in the long term story ....what’s one storm in the big picture anyway

My view is never will be much money and performance will always be disappointing .....but current shareholders might be rewarded one day if a greater fool(s) buys them out somehow.

[mikeybycrikey]

Are these two updates not saying different things anyway. Originally, immediately after the hurricane, RBC said that everything was fine for them and they had suffered little actual damage. Now, several months after the hurricane, they are selling a little less stuff because forest owners a planting less.

I'm sure that I see this as a particularly big deal at this stage, and it feels like it has already been priced in, with the SP dropping about 25% in the past 6 months anyway.

[Balance]

Wow!

Anyone reading the comments here this morning would think the sky has fallen in!!!!

Read the announcement carefully and you can see that in the last update*, RBC sustained limited damage to its own tree growing and nursery operations but this impact update is as a consequence of its customers being severely adversely impacted by the hurricane.

RBC has undertook to update once they have assessed the damage and its impact - which it has done now.


* http://nzx-prod-s7fsd7f98s.s3-websit...562/288924.pdf