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Overview of Results

Trade sales and adjusted EBITDA significantly exceeded record 2016 results due to robust demand in Canada, higher international sales and the impact of acquisitions. Strength in the Canadian Farm market was complemented by higher Farm sales in the U.S., which increased 18% over Q1 2016. Farm backlogs in both Canada and the U.S. are substantially higher than at the same time in 2016. Robust demand in Europe, the Middle East and Africa ("EMEA") and the Black Sea region resulted in higher international sales and an increase in international sales order backlog compared to the prior year. Trade sales from acquisitions in the quarter were $30.0 million. Higher adjusted EBITDA was offset by transaction costs related to the acquisition of Global Industries, Inc. ("Global") and increased share based compensation expenses, resulting in a small decrease in profit and diluted profit per share compared to 2016.

"We saw broad based strength across AGI in the first quarter as many international Commercial projects moved off the drawing board into development, the US Farm market began showing signs of a rebound and Canadian Commercial and Farm markets remained robust." said Tim Close, President and CEO of AGI. "During the quarter we also completed the acquisition of Global Industries and in doing so welcomed a great team of people, added leading brands and dealers, and significantly increased our platform in the US. Our project in Brazil is on track due to some outstanding work from across AGI to fast track the design and construction of our facility and tackle the engineering required to support our product transfer. With robust backlogs across AGI we are seeing positive signs for continued strength in 2017."

Diluted profit (per share) and Diluted adjusted profit (per share)

A reconciliation of profit and diluted adjusted profit per share to adjusted profit and adjusted diluted profit per share is below.

OUTLOOK

The Farm market in Canada remains robust as Canadian farmers benefit from the positive economics of a favourable crop mix and a weak Canadian dollar. A large crop in 2016 contributed to strong in-season sales and resulted in low inventory levels throughout AGI's distribution network that, along with a general expectation of strong end-user demand in 2017, has resulted in sales order backlogs significantly higher than the prior year. The Farm market in the U.S. remained weak in 2016 as farmer net income continued to be affected by low corn and soybean prices. In 2017, however, early signs of a recovery in demand for AGI product appear to be forming, particularly for portable grain handling equipment. Management postulates the significant increase in sales order backlog for our Farm equipment reflects marginally improved economics for some farmers and the product replacement cycle for portable grain handling equipment. It remains too early in the crop year to confidently predict higher demand for Farm equipment throughout 2017, however management is cautiously optimistic that recent activity is an indicator of a modest improvement in the U.S. Farm sector.

The demand environment for AGI's Commercial business remains positive for several reasons including the global trend towards higher crop volumes, infrastructure deficiencies in many grain producing and importing regions of the world, the drive towards improved efficiencies in a mature North American market, the dissolution of the Canadian Wheat Board and the evolution of retail fertilizer distribution. Excluding acquisitions, AGI's Commercial backlog is relatively flat compared to the same time in 2016 as a higher international backlog is partially offset by lower backlogs in North America. Management anticipates the Commercial backlog may increase substantially in the near-term as several projects in Canada, South America, EMEA and the Black Sea region come to fruition. Overall, management expects sales of Commercial equipment in 2017 will significantly exceed the prior year, largely due to growth in offshore sales.

AGI acquired Global on April 4, 2017. Consistent with AGI's Farm business in the U.S., Global's results in recent years have reflected weakness in the U.S. Farm market and its normalized EBITDA averaged approximately U.S. $11.5 million over the three years ended November 30, 2016, with fiscal 2016 being below the three-year average. AGI anticipates a modest recovery in the U.S. Farm market in 2017 that should likewise benefit Global's' business.

AGI completed several acquisitions in 2016 and the inclusion of a full twelve months of results from NuVision (acquired April 2016), Mitchell (July 2016) and Yargus (November 2016) in fiscal 2017 is expected to increase EBITDA compared to the prior year. In addition, management believes the combination of these entities has created a market leading fertilizer platform and accordingly expects to organically grow sales for each of these businesses.

AGI entered the Brazilian market through its purchase of Entringer in March 2016, and soon after commenced construction of a new production facility that will house both Entringer products and many of AGI's North American product lines. Management anticipates the new facility will be fully commissioned in the second half of 2017. AGI has focused efforts in 2017 on growing its Farm and Commercial business in Brazil while at the same time transferring product knowledge from North America to Brazil and investing in people to prepare for future growth. On balance, management anticipates adjusted EBITDA in Brazil will be slightly positive in the second half of 2017.

Demand in 2017 will be influenced by, among other factors, weather patterns, crop conditions and the timing of harvest and conditions during harvest. Planting in many areas of North America has been delayed by wet conditions that, if the delays persist, may lower crop production in certain regions. Changes in global macroeconomic factors as well as sociopolitical factors in certain local or regional markets and the availability of credit and export credit agency support in offshore markets also may influence sales, primarily of Commercial grain handling and storage products. Consistent with prior periods, Commercial sales are subject to the timing of customer commitment and delivery considerations. AGI's financial results are impacted by the rate of exchange between the Canadian and U.S. dollars and a weaker Canadian dollar relative to its U.S. counterpart positively impacts profit and adjusted EBITDA. The Company has mitigated its exposure to higher input costs though procurement of steel at lower prices, sales price increases and limiting the length of time commercial quotes remain valid. However, AGI's results in 2017 may be impacted by higher steel prices.

On balance, based on current conditions, management anticipates record sales and adjusted EBITDA in 2017 will result from strength in the Canadian Farm market, a modest recovery in the U.S. Farm market and an increase in international sales. In addition, inclusion of a full twelve months of results from the 2016 acquisitions of NuVision, Mitchell and Yargus, and results from Global, are expected to significantly contribute to sales and EBITDA in 2017.

Dividends

AGI today announced the declaration of cash dividends of $0.20 per common share for the months of June, July and August 2017. The dividends are eligible dividends for Canadian income tax purposes. AGI's current annualized cash dividend rate is $2.40 per share.

The table below sets forth the scheduled payable and record dates:

MD&A and Financial Statements

AGI's financial statements and MD&A (the "Q1 MD&A") for the three-month period ended March 31, 2017 can be obtained at  and will also be available electronically on SEDAR () and on AGI's website ().