TORONTO, Sept. 22, 2016 /CNW/ - Ceres Global Ag Corp.
(TSX: CRP) ("Ceres" or the "Corporation") today announced its
financial and operational results for the three- and 15-month
periods ended June 30, 2016. All
amounts are in Canadian currency unless otherwise noted.
"Despite the impact of a $11.7
million durum wheat loss and a backdrop of low commodity
prices, we made considerable progress in FY2016 to ramp up our
operations, better utilize our infrastructure and strengthen our
relationships with farmers and buyers of grains and other
commodities," said Robert Day,
President and Interim CEO of Ceres Global Ag. "Most notably,
our performance in FY2016 was marked by the buildout of Northgate,
the increase in the number of customers served and bushels handled,
the growth in number rail cars loaded with grains, oilseed or
propane, and the addition of Koch Fertilizer Canada as one of our
strategic partners."
Mr Day added, "We ended the year with a more diverse mix of
products handled, a larger inventory of tradeable grains and a
reduced exposure to risk than when we began FY2016. This
progress positioned us to capitalize on the high demand for
handling and storage services during the recent harvest season
given the record output of grains, canola, and pulses. This
record supply should also help to sustain increased trading
activities across our network throughout FY2017."
Summary Financial and Operational Results
|
3-month period
ended June 30,
2016
|
3-month period
ended June 30,
2015
|
FY2016
|
FY2015
|
Revenue
|
$149.3
Million
|
$59.3
Million
|
$505.5
Million
|
$192.8
Million
|
Gross profit
(loss)
|
$2.4
Million
|
$1.9
Million
|
$(0.7
Million)
|
$11.7
Million
|
EBITDA2
|
$0.7
Million
|
$0.1
Million
|
$(7.3
Million)
|
$3.7
Million
|
Income (loss) from
operations
|
$(0.4
Million)
|
$(0.6
Million)
|
$(14.0
Million)
|
$1.0
Million
|
Net income
(loss)
|
$(1.9
Million)
|
$(1.7
Million)
|
$(15.8
Million)
|
$(1.4
Million)
|
Earnings (loss) per
share basic and fully diluted
|
$(0.07)
|
$(0.06)
|
$(0.58)
|
$(0.08)
|
Total bushels
handled
|
18.7
million
|
6.7
million
|
55.8
million
|
37.9
million
|
Total railcars loaded
at Northgate
|
1,146
|
317
|
3,200
|
416
|
Financial and Operational Highlights for FY2016
- Generated revenue of $505.5
million for the 15-month period ended June 30, 2016, compared to $192.8 million for the 12-month period ended
March 31, 2015.
- Incurred a gross loss of $700,000
largely as a result of a durum wheat loss of $11.7 million, which the Company previously
disclosed with its Q3 results for the period ended December 31, 2015.
- Net loss was $15.8 million
compared to a net loss of $1.4
million for FY2015.
- Completed the buildout of the grain handling and shipping
facility at Company's Northgate Commodities Logistics Hub.
- Appointed Robert Day as
President and Interim CEO, following Patrick Bracken's decision to retire from
day-to-day management responsibilities.
- Loaded 3,200 railcars of grain, oilseed and propane destined
for markets in the U.S., Latin
America, and Asia out of
the Company's Northgate Facilities, up from 416 railcars in
FY2015.
- Renewed and extended the Corporation's agreement with Elbow
River Marketing to unload liquefied petroleum gas.
- Sold product to Mexico and US
gateways to supply customers in Asia and Europe for the first time.
- Began construction of the fertilizer storage warehouse in
support of the agreement signed with Koch Fertilizer Canada, ULC to
handle and store fertilizer at Northgate. The availability of
fertilizer products at Northgate will make it possible for grain
suppliers to improve their transportation costs by back-hauling
agriculture inputs to points of origination.
Working Capital and Liquidity
As at June 30, 2016, Ceres had working capital of
$73.5 million and access to unused
credit facilities totaling $84.2
million. These compare to working capital of $80.6 million and access to unused credit
facilities of $77.8 million at the
end of March 31, 2016.
Change in reporting periods
As previously announced,
Ceres has changed its fiscal year reporting period from
April 1 to March 31 to July 1 to June 30, effective with the start of FY
2017. The change is designed to make Ceres' reporting of its
financial results consistent with industry norms and the
traditional crop season. Effective with the start of FY 2017
on July 1, 2016, Ceres will begin to
report its results in U.S. dollars.
Outlook
"The high demand for our grain handling and
storage services during this year's harvest season was very
encouraging for a number of reasons," said Mr. Day. "It
suggests that we are establishing a strong reputation among farmers
for the quality of our infrastructure, allowing farmers to
penetrate markets across North
America and through to U.S. export gateways more
efficiently. Just as important, higher demand for our services has
allowed us to develop capabilities at handling a wide assortment of
commodities beyond our core grains. These new capabilities
will help to ramp up operations and increase utilization of our
network."
Mr Day also said, "Over the longer term, we continue to explore
opportunities where we can add new commodities for trans-loading at
Northgate in addition to propane gas and phosphate fertilizer. The
introduction of new commodities will strengthen Northgate's
economics and its ability to attract grain growers."
Conference Call Details
Ceres will hold a conference
call to discuss its FY2016 financial and operational results on
Friday, September 23, 2016 at
10:00 a.m. ET. Robert Day, Ceres' President and Interim CEO,
and Mark Kucala, Ceres' CFO, will
co-chair the conference call.
All interested parties in Ceres' Q5 financial and operational
results can join the conference call by dialing 1-888-231-8191 or
647-427-7450, conference ID: 72110742. Please dial in
15 minutes prior to the call to secure a line. The conference call
will be archived for replay until Friday,
October 7, 2016 at midnight, ET. To access the archived
conference call, please dial 1-855-859-2056 and enter the encore
code 72110742.
A live audio webcast of the conference call will be available
at:
http://event.on24.com/r.htm?e=1253055&s=1&k=3F2D9B962DE94B61212D0F2D0A2952FC
Please connect at least 15 minutes prior to the conference call
to ensure adequate time for any software download that may be
required to join the webcast. An archived replay of the webcast
will be available for 90 days.
2Non-IFRS Financial Measures
EBITDA
(Earnings before Interest, Taxes, Depreciation and Amortization) is
not a standardized financial measure prescribed by IFRS; however,
is one metric that is used by management to determine the
Corporation's ability to service its debt and finance capital.
EBITDA excludes gains and losses on property, plant and equipment
and assets held for sale, as these items are considered to be
non-reoccurring in nature.
In calculating EBITDA, Ceres excludes its share of the net
income (loss) from investments in associates and the gain (loss) on
sale or impairment of property, plant and equipment. Ceres may
calculate EBITDA differently than other companies; therefore,
Ceres' EBITDA may not be comparable to similar measures presented
by other issuers.
Investors are cautioned that EBITDA should not be construed as
alternatives to net income or loss, or to other standardized
financial measures determined in accordance with IFRS, and are not
intended to represent cash flows or results of operations in
accordance with IFRS.
About Ceres Global Ag Corp.
(ceresglobalagcorp.com)
Headquartered in Minneapolis, Ceres Global Ag Corp. is focused
on two primary businesses: a Grain Storage, Handling and
Merchandising unit; and a Commodity Logistics unit.
Ceres operates in two business units, one of which is a grain
storage, handling, and merchandising unit anchored by a collection
of nine (9) grain storage and handling assets in Minnesota, New
York, Saskatchewan and
Ontario having aggregate storage
capacity of approximately 43 million bushels as at June 30, 2016, including 5.4 million bushels of
idle capacity.
Ceres' Commodity Logistics unit is focused on the development of
a Commodity Logistics Centre in Northgate, SK. The Northgate
Commodities Logistics Centre is a state-of-the-art grain,
agriculture services and oilfield supplies transloading site.
Ceres also has a 25% interest in Stewart Southern Railway Inc.,
a short-line railway with a range of 130 kilometres that operates
in South-eastern Saskatchewan.
Cautionary Notice: This news release contains
"forward-looking information" within the meaning of applicable
Canadian securities legislation and United States securities laws. Forward-looking
information may include, but is not limited
to, statements regarding future operations and results,
anticipated business prospects and financial performance of Ceres
and its subsidiaries, including the plans, costs, timing and
capital for the development of the Northgate Commodities Logistics
Centre, expectations or projections about the future, strategies
and goals for growth, expected and future cash flows, costs,
planned capital expenditures, regulatory change, general economic
political and market conditions anticipated capital projects,
construction and completion dates, operating and financial results,
critical accounting estimates, the expected financial and
operational consequences of future commitments. Generally,
forward-looking information can be identified by the use of
forward-looking terminology such as "plans", "expects" or "does not
expect", "is expected", "budget", "scheduled", "estimates",
"forecasts", "intends", "anticipates" or "does not anticipate",
"believes", "may have implications" or variations of such words and
phrases or statements that certain actions, events or results
"may", "could", "would", "might", or "will be taken", "occur", or
"be achieved". Forward-looking information is based on the opinions
and estimates of management at the date the information is made,
and is based on a number of assumptions and subject to a variety of
risks and uncertainties and other factors that could cause actual
events or results to differ materially from those projected in the
forward-looking information. Key assumptions
upon which such forward-looking information is based are
listed in the "Forward-Looking Information" section of the interim
MD&A for the year and quarter ended March 31, 2015. Many such
assumptions are based on factors and events that are not within
the control of Ceres and there is no assurance they will prove to
be correct. Factors that could cause actual results to vary
materially from results anticipated by such forward-looking
information include, among others, risks related to weather,
politics and governments, changes in environmental and other laws
and regulations, competitive factors in agricultural, food
processing and feed sectors, construction and completion of capital
projects, labour, equipment and material costs, access to capital
markets, interest and currency exchange rates, technological
developments, global and local economic conditions, the ability of
Ceres to successfully implement strategic initiatives and whether
such strategic initiatives will yield the expected benefits, the
ability of Ceres to successfully defend the claim by The Scoular
Corporation, the operating performance of the Corporation's assets,
the availability and price of commodities and regulatory
environment, processes and decisions. Although Ceres has
attempted to identify important factors that could cause actual
actions, events or results to differ materially from those
described in forward-looking information, there may be other
factors that cause actions, events or results that are not
anticipated, estimated or intended. There can be no assurance that
forward-looking information will prove to be accurate, as actual
results and future events could differ materially from those
anticipated in such information. Ceres undertakes no obligation to
update forward-looking information if circumstances or management's
estimates or opinions should change, except as required by
applicable securities laws. The reader is cautioned not to place
undue reliance on forward-looking information.
SOURCE Ceres Global Ag Corp.