top of page

AgJunction Reports First Quarter 2021 Earnings Results

SCOTTSDALE, AZ, May 11, 2021


AgJunction Inc. (TSX: AJX) ("AgJunction" or the "Company") is reporting financial results for the first quarter ended March 31, 2021. All currency amounts are expressed in U.S. dollars.

First Quarter 2021 Financial Summary vs. First Quarter 2020

•   Revenue was $2.5 million compared to $5.2 million

•   Gross margin was 40.2% compared to 56.6%

•   Operating expenses improved to $3.4 million compared to $3.5 million

•   Net loss was $(2.4) million or $(0.02) per share, compared to a net loss of $(0.5) million or nil per share

•   EBITDA was $(1.6) million compared to $0.7 million

Management Commentary

“Continued investment in research and development has led to great progress with our autonomous modules, Whirl™ cloud, and has increased our software subscriptions,” said Dr. M. Brett McMickell, president and CEO of AgJunction. “The COVID-19 pandemic has led to delays in new vehicle launches by OEMs; however, we continue to onboard new OEM customers as a result of strong performance of our modular product portfolio.

“Recently, we announced a joint project with the world’s largest tractor manufacturer by volume, Mahindra & Mahindra Ltd. (“Mahindra”). The project is making solid progress as our automation solution is performing well in the field testing in Turkey. We will build upon our relationship with Mahindra, while also continuing to work to onboard additional OEM partners.

“For our VAR business, we worked to reset this channel in the first quarter by strategically restructuring our partnerships focusing on larger VARs across the globe to create regional hubs. Regional hubs provide strong distribution, customer support, and repair capabilities. While we just launched this new structure, we have already noticed improvements as we leverage our VAR partners to expand the global reach of our products.

“Our direct channel has seen momentum fueled by a favorable agricultural environment with strong commodity pricing. This aspect of our business grew 174% year-over-year in North America with an increasing number of customers purchasing our more advanced offerings, the Wheelman® Pro HP and Wheelman® Flex HP, along with our subscription offering. Not only are sales increasing, but we are also seeing a year-over-year increase in the average revenue per user. We expect this trend to continue, especially with the recent launch in Australia, where we have already had a steady flow of pre-orders, and we look forward to announcing further geographic expansion of this business.

“As 2021 progresses, our team is busy working to onboard new OEM customers, realize increased revenue from our new VAR ‘hub and spoke’ structure, and looking for ways to further accelerate growth in our subscription and e-commerce businesses. We are taking the right steps on our path to recovery and believe we have a solid foundation to build from.”

First Quarter 2021 Financial Results


Total revenue in the first quarter of 2021 was $2.5 million compared to $5.2 million in the first quarter of 2020. The decrease is primarily due to the reduced volume from a North American VAR customer that allegedly breached a supply agreement with AgJunction and infringed certain of its patents. 


Gross profit in the first quarter of 2021 was $1.0 million compared to $2.9 million in the first quarter of 2020. Gross margin was 40.2% compared to 56.6% in the first quarter of 2020. The reduction in margin was primarily attributable to a higher percentage of fixed costs relative to a lower revenue base and the reduced volume from the North American VAR customer that had a higher margin.


Total operating expenses in the first quarter of 2021 improved to $3.4 million compared to $3.5 million in the first quarter of 2020. The slight improvement was attributed to a reduction in variable costs.


Net loss in the first quarter of 2021 was $(2.4) million or $(0.02) per share, compared to a net loss of $(0.5) million or nil per share in the first quarter of 2020. The decline was primarily a result of the aforementioned revenue decline.


EBITDA in the first quarter of 2021 was $(1.6) million compared to $0.7 million in the first quarter of 2020.


Cash and cash equivalents at March 31, 2021, totaled $7.3 million compared to $6.8 million at the end of 2020. Working capital was $13.1 million at March 31, 2021 as compared to $13.7 million at the end of 2020. The Company operates with limited debt of $1.5 million from an outstanding paycheck protection program loan at March 31, 2021 and has an undrawn $3.5 million line of credit.


Conference Call


AgJunction will hold a conference call today at 11:00 a.m. Eastern time to discuss its first quarter 2021 results, followed by a question and answer period.


Date: Tuesday, May 11, 2021

Time: 11:00 a.m. Eastern time (8:00 a.m. Pacific time)

Toll-free dial-in number: 1-877-573-5992

International dial-in number: 1-270-215-9903

Conference ID: 1959849


Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Gateway Investor Relations at 1-949-574-3860.


The conference call will be broadcast live and available for replay here and via the investor center section of the company’s website at


A replay of the conference call will be available after 2:00 p.m. Eastern time on the same day through May 25, 2021.


Toll-free replay number: 1-855-859-2056

International replay number: 1-404-537-3406

Replay ID: 1959849

About AgJunction

AgJunction Inc. is a global leader of advanced guidance and autosteering solutions for precision agriculture applications. Its technologies are critical components in over 30 of the world’s leading precision Ag manufacturers and solution providers and it holds over 200 patents and patents pending. AgJunction markets its solutions under leading brand names including Novariant®, Wheelman®, Whirl™ and Handsfreefarm® and is committed to advancing its vision by bringing affordable hands-free farming to every farm, regardless of terrain or size. AgJunction is headquartered in Scottsdale, Arizona, and is listed on the Toronto Stock Exchange (TSX) under the symbol “AJX.” For more information, please go to

Non-IFRS Measures

This press release uses EBITDA, which is a financial measure that does not have any standardized meaning prescribed under International Financial Reporting Standards ("IFRS"). EBITDA is defined as net income before interest, income tax, depreciation and amortization. The Company believes that this non-IFRS measure provides useful information to both management and investors in measuring financial performance. As this measure, does not have a standard meaning prescribed by IFRS, it may not be comparable to similarly titled measures presented by other publicly traded companies, and should not be construed as an alternative to other financial measures determined in accordance with IFRS. This non-IFRS measure is provided as additional information to complement IFRS measures by providing further understanding of operations from management’s perspective. Accordingly, non-IFRS measures should never be considered in isolation nor as a substitute to using net income as a measure of profitability or as an alternative to the IFRS consolidated statements of income or other IFRS statements. See "Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) Reconciliation" herein for additional information.

Forward-Looking Statements

This press release contains forward-looking information and forward-looking statements (collectively, "forward-looking information") within the meaning of applicable securities laws and is based on the expectations, estimates and projections of management of AgJunction as of the date of this news release, unless otherwise stated. The use of any of the words "expect", "anticipate", "continue", "estimate", "objective", "ongoing", "may", "will", "project", "should", "believe", "plans", "intends" and similar expressions are intended to identify forward-looking information. These statements are only predictions and actual events or results may differ materially. Although the Company’s management believes that the expectations reflected in the forward-looking statements are reasonable, it cannot guarantee future results, performance or achievement since such expectations are inherently subject to significant business, economic, competitive and political uncertainties and contingencies. In particular, forward-looking statements in this press release include, but are not limited to statements with respect to: the Company’s plans, and priorities working to onboard new OEM partners; expected trend with product sales; and ability to increase revenue from new VAR partnership structure. Accordingly, readers should not place undue reliance on such forward-looking information contained in this press release.

In respect of the forward-looking information, AgJunction has provided such information in reliance on certain assumptions that it believes are reasonable at this time, including, but not limited to, the sufficiency of budgeted capital expenditures in carrying out planned activities; impact (and duration thereof) that the COVID-19 pandemic will have on the Company’s business, including on demand for the Company’s products; effects of regulation by governmental agencies; that AgJunction's future results of operations will be consistent with management expectations in relation thereto; availability of key supplies, components, services, networks and developments; the impact of increasing competition; conditions in general economic, agricultural and financial markets; demand for the Company's products; and the continuity of existing business relationships.


Since forward-looking information addresses future events and conditions, such information by its very nature involves inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to the risks associated with the industries in which AgJunction operates, the COVID-19 pandemic and its impacts on the Company including our products; our supply chain and our ability to receive products on a timely basis from our global suppliers; a prolonged economic downturn from the negative effects of COVID-19 pandemic may result in reduction of revenue, cashflows and negatively affect our profitability; competition; inability to introduce new technology and new products in a timely manner; legal claims for the infringement of intellectual property and other claims; negative conditions in general economic, agricultural and financial markets; and reduced demand for the Company's products. Readers are cautioned that the foregoing list of factors is not exhaustive.

Additional information on other factors that could affect the Company's operations or financial results, are included in reports of AgJunction on file with applicable securities regulatory authorities, including but not limited to, AgJunction's Annual Information Form which may be accessed on its SEDAR profile at The forward-looking information contained in this press release is made as of the date hereof and AgJunction undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.






Investor Relations

Gateway Investor Relations

Cody Slach or Cody Cree


bottom of page