May 14, 2012. /Lesprom Network/. PRT Growing Services Ltd. has released its financial results for the 1Q ended March 31, 2012. Forest seedlings generally take from six months to a year or more to grow, with most being grown and harvested within the calendar year. PRT’s quarterly results generally reflect only a portion of the revenue that accrues over the full crop cycle, and, accordingly, the results are best considered in an annual context, as the company said in a press release received by Lesprom Network. PRT reported operating earnings of $911,000 and total comprehensive income of $193,000 for the quarter-ended March 31, 2012, compared with $1.5 million and income of $452,000, respectively for the 1Q 2011. The lower quarterly result primarily reflects timing of revenue recognition as forest seedling volumes and prices in PRT’s core traditional markets increased slightly. Revenue decreased 5.8% to $6.9 million compared to $7.3 million, due to timing of revenue recognition from product mix changes under annual growing contracts and reduction of orders from new markets. For the 2012 contract year, volumes and prices in PRT’s core forestry business increased slightly. Gross profit margin decreased to 30.6% from 34.2% due to the effect of fixed costs on the lower revenue recognized and inventory adjustments in the quarter. As a result of the lower revenue recognized, Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA) decreased to $1 million from $1.5 million in the 1Q 2011. President and CEO Rob Miller remarked, “We are pleased that the improvement in core forest seedling order volumes we experienced in 2011 was sustained into 2012. While seedling demand remains significantly below historical levels, with the improvements we have made to our business over the past three years to adapt to the down turn we are able to generate improved returns on lower volumes. Our key focuses continue to be highly reliable contract delivery, customer service, and product innovations to meet changing customer needs. At the same time we are carefully managing capacity and costs, and emphasizing continuous improvement throughout our organization. These strategies have positioned us well for the market conditions we expect in 2012 and beyond.” PRT Growing Services Ltd. is the largest producer of container-grown forest seedlings in North America, operating 12 nursery locations that are expected to produce more than 160 million seedlings in 2012. The company was formed on October 1, 2011 from the conversion of PRT Forest Regeneration Income Fund to a corporate structure.