Imperial Sugar Company (NASDAQ:IPSU) today reported a net loss
for the fiscal first quarter ended December 31, 2011 of $3.5
million, or $0.29 per share, on net sales of $227.7 million.
Results for the same period of the prior fiscal year were a loss of
$8.9 million, or $0.75 per share, on net sales of $227.4
million.
“Imperial’s results continue to be affected by the margin
compression experienced in the second half of last fiscal year,
driven by high raw sugar prices and competitive pricing dynamics,”
commented John Sheptor, president and CEO of Imperial Sugar,
“although we were able to increase prices during the quarter
sufficient to improve margins on a consecutive quarter basis.
Production rates at the Port Wentworth refinery in the first
quarter were largely unchanged and costs remained high. We continue
to focus on operating reliability and efficiency to improve
results.”
Revenues for the first quarter were unchanged as 18% higher
sales prices offset a 16% reduction in sales volumes relating
principally to the contribution of the Gramercy refinery to
Louisiana Sugar Refining LLC in January 2011. Gross margins on a
hedge accounting basis and excluding the impact of LIFO inventory
reductions declined to 1.2% of sales in the quarter ended December
31, 2011 from 1.4% in the same period of the prior year, as
increases in raw sugar costs exceeded sales price improvements. On
a consecutive quarter basis, gross margin on a hedge accounting
basis excluding LIFO improved from a negative 4.2% in the quarter
ended September 30, 2011.
Sheptor continued, “We have maintained compliance with the terms
of our revolving credit agreement and are exploring opportunities
to improve liquidity. We are in the late stages of exploring with
our partner the potential sale of our interest in Wholesome
Sweeteners to a third party.”
Capital expenditures during first quarter of fiscal 2012 were
$4.2 million, principally for safety, environmental and equipment
replacement projects. The Company reported that it had undrawn
availability under its amended revolving credit agreement of $18.4
million, at February 7, 2012 after deducting $70.1 million of
borrowings.
Conference Call Details
Company officials will conduct a conference call starting at
11:00 a.m. Eastern, Thursday, February 9, 2012. Imperial Sugar
President and CEO, John Sheptor, and Senior Vice President and CFO,
Hal Mechler, will discuss the Company’s operating results for its
first fiscal quarter ended December 31, 2011, its current financial
position and its business strategies.
Participants wishing to listen and participate in a brief
question-and-answer session after the presentation can dial
1-866-730-5769 and enter the Participant Passcode: 55940285. The
conference call can also be accessed via live audio webcast by
visiting Imperial Sugar’s web site at
http://www.imperialsugarcompany.com/investor-relations and clicking
on the “Q1 2012 Imperial Sugar Earnings Conference Call” icon under
“Investor Relations”.
For those who are unable to listen to the call during its live
broadcast, a replay of the entire presentation will be available on
the company’s web site beginning one hour following the conclusion
of the call. In addition to the webcast replay, a telephone replay
will also be available beginning one hour following the conclusion
of the call that can be accessed by dialing 1-888-286-8010 and
entering the Passcode: 87642007. Both replays will be available
through March 9, 2012.
Please note: Participants planning to listen to the call via the
Internet may need to download Windows Media Player(R) to hear the
call if this feature has not been previously installed on their
computers.
About Imperial
Imperial Sugar Company is one of the largest processors and
marketers of refined sugar in the United States to food
manufacturers, retail grocers and foodservice distributors. The
Company markets products nationally under the Imperial®, Dixie
Crystals® and Holly® brands. For more information about Imperial
Sugar, visit www.imperialsugarcompany.com and
www.iscnewsroom.com.
Statements regarding future market prices and margins, our
liquidity and ability to finance our operations and capital
investment programs, future expenses and liabilities arising from
the Port Wentworth refinery incident, future costs and liabilities
arising from the Louisiana Sugar Refining LLC venture, future
import and export levels, future government and legislative action,
future environmental regulatory and compliance costs, future
operating results, future availability and cost of raw sugars,
operating efficiencies, results of future investments and
initiatives, future asset sales, future cost savings, future
product innovations, future energy costs, future pension plan
contributions and other statements that are not historical facts
contained in this release are forward-looking statements that
involve certain risks, uncertainties and assumptions. These risks,
uncertainties and assumptions include, but are not limited to,
market factors, farm and trade policy, unforeseen engineering and
equipment delays, our ability to obtain financing and the terms of
any such financing, our ability to realize planned cost savings and
other improvements, the available supply of sugar, energy costs,
the effect of weather and economic conditions, results of actuarial
assumptions, actual or threatened acts of terrorism or armed
hostilities, legislative, administrative and judicial actions and
other factors detailed in the Company’s filings with the Securities
and Exchange Commission. Should one or more of these risks or
uncertainties materialize, or should underlying assumptions prove
incorrect, actual outcomes may vary materially from those
indicated.
IMPERIAL SUGAR COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF
OPERATIONS (In Thousands, Except Per Share Data) (Unaudited)
Three Months Ended December 31,
2011
2010
Net Sales $ 227,676 $ 227,389 Cost of Sales (220,647 )
(231,081 ) Selling, General and Administrative Expense
(10,837 ) (9,649 ) Operating Income (Loss) (3,808 ) (13,341
) Interest Expense (951 ) (363 ) Interest Income - 13 Other
Income (Loss), Net 1,302 (685 ) Income
(Loss) Before Income Taxes (3,457 ) (14,376 ) (Provision) Credit
for Income Taxes - 5,461 Net
Loss $ (3,457 ) $ (8,915 ) Basic Earnings Per Share of
Common Stock: Net Income (Loss) $ (0.29 ) $ (0.75 ) Diluted
Earnings Per Share of Common Stock: Net Income (Loss) $ (0.29 ) $
(0.75 ) IMPERIAL SUGAR COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS (In Thousands of Dollars)
(Unaudited)
December 31, September 30,
2011
2011
Cash and Temporary Investments $ 249 $ 134 Marketable
Securities 206 206 Accounts Receivable, Net 41,479 55,622 Inventory
64,187 70,589 Other Current Assets 47,849 59,155
Current Assets 153,970 185,706 Property, Plant & Equipment, Net
250,437 251,009 Deferred Income Taxes, Net 11,223 11,034 Other
Assets 22,772 42,672 Total $ 438,402 $ 490,421
Accounts Payable, Raw Sugar $ 7,625 $ 23,461 Accounts Payable,
Trade 13,803 13,367 Borrowing under Revolving Credit Line 70,834
81,843 Deferred Income Taxes, Net 8,313 8,313 Other Current
Liabilities 57,911 74,200 Current Liabilities 158,486
201,184 Long-Term Debt - - Other Liabilities 127,582 127,783
Shareholders' Equity 152,334 161,454 Total $ 438,402
$ 490,421 Shares of Common Stock Outstanding 12,219,036
12,223,978
Imperial Sugar (NASDAQ:IPSU)
Historical Stock Chart
From Jun 2024 to Jul 2024
Imperial Sugar (NASDAQ:IPSU)
Historical Stock Chart
From Jul 2023 to Jul 2024