MINNEAPOLIS, Sept. 25, 2018 /CNW/ - Ceres Global Ag Corp.
(TSX: CRP) ("Ceres" or the "Corporation") today announced its
financial and operating results for the quarter and year ended
June 30, 2018. All amounts are in
U.S. currency unless otherwise noted.
CEO Commentary
"Despite lower volumes and fewer
opportunities to generate larger gross margins in the fourth
quarter of fiscal 2018, net income and adjusted net income were
significantly better than the same quarter in the prior year," said
Robert Day, President and Chief
Executive Officer of Ceres. "We were challenged by extreme hail
damage and maintenance costs at Northgate and floods in the upper
Mississippi River region that negatively affected volumes. Despite
the lower volumes, we changed our footprint to lower operating
costs, we developed stronger customer relationships, and we grew
our supply chain services business at Northgate."
"The acquisition of Nature's Organic Grist, the formation
of Savage Riverport, LLC, joint venture with Consolidated Grain and
Barge, and the addition of more talent to the organization has
positioned us for a more positive start to fiscal year 2019," Mr.
Day continued. "We are confident we can maintain the positive
trajectory of improved financial results while also making big
strides in our growth."
Summary Financial and Operational Results
(in thousands of
USD except per
share and bushels handled)
|
3-Months Ended
June 30, 2018
|
3-Months Ended
June 30, 2017
|
12-Months
Ended
June 30, 2018
|
12-Months
Ended
June 30, 2017
|
Revenue
|
$92,089
|
$112,178
|
$411,122
|
$528,478
|
Gross
profit
|
$1,925
|
$52
|
$11,670
|
$7,841
|
Income from
operations
|
$(971)
|
$(2,522)
|
$(223)
|
$(1,717)
|
Net income
(loss)
|
$1,829
|
$(4,040)
|
$(556)
|
$(13,653)
|
Earnings (loss) per
basic share
|
$0.07
|
$(0.14)
|
$(0.02)
|
$(0.50)
|
EBITDA
1
|
$209
|
$(1,720)
|
$4,369
|
$2,595
|
Adjusted net income
2
|
$(1,277)
|
$(3,746)
|
$(1,438)
|
$(5,123)
|
Total bushels handled
and merchandized
|
14.3
million
|
29.7
million
|
74.7
million
|
111.1
million
|
Financial and Operational Highlights for the quarter ended
June 30, 2018
- Gross profit increased by $1.9
million to $2.0 compared to
the fourth quarter fiscal year 2017 due the Corporation's focus on
executing trades with higher margin opportunity as opposed to high
trading volume.
- On April 30, 2018, the
Corporation contributed its Savage elevator assets and formed
Savage Riverport, LLC, a 50% joint venture with Consolidated Grain
and Barge ("CGB").
- Cash flow from investing activities increased $10.9 million to $9.6
million due to the sale of 50% of Savage Riverport,
LLC.
- EBITDA increased $1.9 million to
$209 thousand compared to the same
quarter in the prior year.
- Completed an update to the Corporation website.
- The previously disclosed trial by jury of the Scoular
litigation is scheduled to commence on October 9, 2018.
Outlook
Mr. Day continued, "While fourth quarter financial results were
affected by extreme weather and lower volumes, we are seeing better
merchandizing opportunities in the first quarter of fiscal year
2019 and expect that to continue through the first six months of
fiscal year 2019. Over the next several quarters we plan to add
complementary assets to our network that will allow us to more
competitively originate products directly from farmers and
consistently create value for our end-use customers."
"In addition, the economics around handling crude oil and other
liquid energy products at Northgate continue to improve, and we are
getting closer to adding one or more new product lines to that
segment of our business," Mr. Day added. "Meanwhile, our baseline
supply chain services business at Northgate recently received
approval from U.S. Customs and Border Protection on more than ten
new products for movement from Canada into the U.S., and we expect to begin
capitalizing on that in the coming months."
Conference Call Details
Ceres will hold a conference
call to discuss its fourth quarter and annual 2018 financial and
operational results on Wednesday, September
26, 2018 at 9:00 am ET.
Robert Day, Ceres' President and
CEO, and Kyle Egbert, Ceres' CFO,
will co-chair the conference call.
All interested parties can join the conference call by dialing
1-888-231-8191 or 647-427-7450, conference ID: 3277915. Please dial
in 15 minutes prior to the call to secure a line. The conference
call will be archived for replay until Wednesday, October 10, 2018 at midnight ET. To access the archived conference
call, please dial 1-855-859-2056 and enter the encore code
3277915.
A live audio webcast of the conference call will be available
at:
https://event.on24.com/wcc/r/1820286/84FC4BA25CBC0B700BA9AEA1D5F4102D
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.
Non-IFRS Financial Measures
1EBITDA
(Earnings before Interest, Taxes, Depreciation and Amortization) is
not a standardized financial measure prescribed by IFRS; however,
it is a metric that is used by management to determine the
Corporation's ability to service its debt and finance capital.
In calculating EBITDA, Ceres excludes gains and losses on
property, plant and equipment, assets held for sale, and gains and
losses on equity investments as these items are considered to be
non-reoccurring in nature. Ceres may calculate EBITDA differently
than other companies; therefore, Ceres' EBITDA may not be
comparable to similar measures presented by other
issuers.
2Adjusted net income is not a standardized financial
measure prescribed by IFRS; however, it is a metric that is used by
management to determine the Corporation's profitability excluding
non-reoccurring events.
In calculating adjusted net income, Ceres excludes gain (loss)
on sale or impairment of property, plant and equipment, income
(loss) from investments in associates, revaluation of warrants,
gain (loss) on equity investments, legal expense related to ongoing
litigation and one-time write-downs. Ceres may calculate adjusted
net income differently than other companies; therefore, Ceres'
Adjusted Net Income may not be comparable to similar measures
presented by other issuers.
Investors are cautioned that EBITDA and adjusted net income
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)
Through our network of commodity logistics centers and team of
industry experts, Ceres procures and provides North American
agricultural commodities & value-added products, industrial
products, fertilizer, energy products and reliable supply chain
logistics services to customers worldwide.
Ceres operates five locations, Duluth,
MN; Minneapolis, MN;
Shakopee, MN; Northgate,
Saskatchewan; and Port Colborne, Ontario, and is headquartered
in Minneapolis, MN. Our facilities
throughout North America have an
aggregate grain and oilseed storage capacity of approximately 29.7
million bushels.
Ceres also has a 50% interest in Savage Riverport LLC, a joint
venture with Consolidated Grain and Barge Co. ("CGB"), a 25%
interest in Stewart Southern Railway Inc., a short-line railway
located in southeast Saskatchewan
with a range of 130 kilometers, and a 17% interest in Canterra Seed
Holdings Ltd, a Canadian-based seed development company.
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 further
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 MD&A for the
period ended June 30, 2018. 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.