Saskatchewan Wheat Pool Inc. (TSX:SWP) (the Pool) posted its second consecutive full year profit in fiscal 2005. Strong fourth quarter sales and earnings from its Agri-products and Agri-food businesses and better results from the Grain Handling and Marketing segment quarter-over-quarter were key factors in the Pool's achievement of $12.1 million in net income for the year.

Fourth Quarter Highlights

• EBITDA for the quarter was $47.1 million up from $41.0 million last year.
• Earnings from continuing operations for the quarter were $25.7 million versus $20.4 million in the comparable period last year. After excluding one-time items in both periods, fiscal 2005 results were $23.1 million versus $12.5 million last year.
• Net income for the quarter was $29.5 million, up from $28.8 million in the final quarter of 2004.
• Cash flow from continuing operations was $41.2 million, a 11.4% increase from the fourth quarter last year when the Pool generated $37.0 million.
• In May 2005, the Pool retired $100.0 million of term debt with the net proceeds received from its rights offering. An additional $42.3 million was retained to support future working capital requirements.
• Total debt declined by 37.5% to $184.3 million at July 31, 2005 from $294.9 million a year earlier.
• The debt-to-equity ratio at July 31, 2005 was 33:67, a dramatic improvement from the 61:39 debt-to-equity ratio at July 31, 2004.

Year-end Highlights

• EBITDA for the year was $70.5 million down from $87.3 million last year.
• Earnings from continuing operations for the year were $7.0 million versus $17.9 million in the comparable period last year. After excluding one-time items in both periods, fiscal 2005 results were $1.6 million versus $4.5 million last year.
• Net income for the year was $12.1 million, up from $5.0 million in fiscal 2004 and the second consecutive year of positive bottom line results for the Pool.
• Cash flow from continuing operations for 2005 was $46.7 million and free cash flow (after capital expenditures) was $33.8 million. These compare to 2004 results of $58.5 million and $41.2 million respectively.
• Agri-products sales rose 11.8% year-over-year while EBITDA grew 22.6%.
• Grain shipments rose 7.2% to 6.9 million metric tonnes partially offsetting lower margins caused by poor quality crops and an 11.4% year-over-year decline in Canadian Wheat Board exports.
• The Pool's share of western Canadian grain deliveries for the twelve months grew from 21% to 23%, with the bulk of the increase coming from Saskatchewan producers.

"We are extremely pleased to end fiscal 2005 with a solid financial performance," said President and Chief Executive Officer, Mayo Schmidt. "It caps off an important year for the Pool. The Recapitalization provided the Pool with a foundation upon which we can build on our strengths. We have eliminated the legacy debt that has plagued this organization. We have the liquidity now to allow the company to more adequately absorb the impact of weather events and to make the operational decisions that will allow us to compete and grow our market share in the future. The entire Pool team is to be commended for their perseverance and commitment to this organization, our customers and our shareholders."

Complete report at http://www2.cdn-news.com/scripts/ccn-release.pl?/current/1012132n.html?cp=swbp