President’s / Chairman’s Letter
MFA Incorporated Annual Report for August 31, 2011
MFA Incorporated posted very good numbers for the fiscal year ending Aug. 31, 2011, including net income exceeding $18 million. The numbers are all the more impressive considering the crop-year weather. That operating environment saw delayed planting due to a wet spring and flooding in key areas of our sales territory which contrasted with severe drought in other key areas.
Three ingredients underlie the success of MFA Incorporated: an engaged and well-informed corporate board of directors; talented and dedicated employees; and most importantly, an interested and supportive customer base of local cooperatives and farmer/members.
Underscoring the financial success achieved during this fiscal year is our substantially improved balance sheet in terms of net worth (now $112 million), working capital, solvency, and earnings before interest, depreciation and amortization.
Management continues to focus on asset levels, while improving cash flow and building net worth. We manage capital requirements intensively. MFA enjoys good lender support and outstanding customer confidence, as evidenced by $73 million in prepay and exceptional bond purchases.
As your cooperative, MFA has focused on growth strategies, while developing effective solutions in selling, marketing, operations, inventory control, warehousing, credit, logistics, and personnel management and training. Sales volumes continue to increase. We continue to identify products and services that provide economic benefit to the customer.
Our corporate road map is focused on expanding the business through strategic acquisitions and sales growth into new geography adjacent to MFA’s existing trade territory. Measured against targeted levels of return, planned expansion allows us to capitalize on our strengths as a premier retail input supplier and grain originator.
Simultaneously, we have structured our wholesale divisions to complement retail expansion through planned volumes of plant foods, crop protection, farm supply, seed and feed with targeted levels of return. Wholesale divisions also concentrate efforts on sales growth into strategic new geography. We stay focused on core businesses and respond to changes in the marketplace.
In summary, at MFA we have a clear vision. We are communicating that vision throughout the cooperative and the customer base. We know where this company needs to be. More importantly, we know how to get there, even in an uncertain and volatile market.
We will stay focused, and we look forward to great things as the cooperative moves closer to its 100th year in 2014. Your cooperative will continue to be successful and vibrant as we grow the business and achieve continued financial improvements.
For more information, Visit MFA Incorporated's financial page where you can download financials.