Minneapolis, MN, May 8, 2019 /CNW/ - Ceres Global Ag Corp.
(TSX: CRP) ("Ceres" or the "Corporation") today announced its
financial and operating results for the quarter ended March 31, 2019. All amounts are in U.S. currency
unless otherwise noted.
CEO Commentary
"Ceres improved its third quarter
operating results and EBITDA year over year," said Robert Day, President and Chief Executive
Officer of Ceres. "The core grain business performed exceptionally
well considering railroad service issues and late train arrivals
caused by extreme flooding in the Midwest. In addition, the non-ag
supply chain services business performed well despite unplanned
downtime due to extreme cold temperatures in Canada during much of the quarter."
"While financial performance improved from a year ago despite
extreme weather challenges, we are most excited about the progress
made around growth-based initiatives during the quarter," Mr. Day
continued. "We made significant strides towards forming a joint
venture to handle natural gas liquids and condensates at Northgate,
and we made substantial progress in the due diligence of two
potential acquisition opportunities in the core grain space."
Summary Financial and Operational Results
(in thousands of
USD except
per share)
|
3 Months
Ended
March 31,
2019
|
3 Months
Ended
March 31,
2018
|
9 Months
Ended
March 31,
2019
|
9 Months
Ended
March 31,
2018
|
Revenue
|
$90,594
|
$98,106
|
$303,656
|
$318,314
|
Gross
profit
|
$3,223
|
$2,399
|
$11,353
|
$9,745
|
Income from
operations
|
$477
|
$(933)
|
$1,430
|
$751
|
Net income
(loss)
|
$(1,240)
|
$(1,802)
|
$(14,912)
|
$(2,382)
|
Earnings (loss) per
basic share
|
$(0.04)
|
$(0.06)
|
$(0.53)
|
$(0.09)
|
Earnings (loss) per
diluted share
|
$(0.04)
|
$(0.06)
|
$(0.53)
|
$(0.09)
|
EBITDA1
|
$1,543
|
$302
|
$(5,430)
|
$4,162
|
Adjusted net
income2
|
$(1,794)
|
$(1,283)
|
$(3,904)
|
$(412)
|
Financial and Operational Highlights for the quarter ended
March 31, 2019
- Income from operations and EBITDA both increased compared to
the third quarter of 2018; adjusted net income was lower because of
the non-cash amortization of intangible assets from the acquisition
of Natures Organic Grist, LLC on July 11,
2018.
- Financial results, while improved from a year earlier, were
negatively impacted by railroad service issues caused by extreme
flooding in the Midwest and sustained sub-zero temperatures in
Canada.
- On February 14, 2019, the
Corporation amended its revolving credit facility, increasing its
revolving credit limit from $67.5
million to $80 million and
providing increased flexibility and funding for operations.
- Significant progress was made on growth-based initiatives in
both core grains and supply chain services, moving the Corporation
closer to increasing its origination infrastructure and increasing
revenue generated at its Northgate site.
Outlook
Mr. Day continued, "We expect an increase in volumes and margins in
the supply chain services business over the next several
quarters. Meanwhile, our core grain business will likely
experience a slight seasonal slowdown in the fourth quarter of
fiscal year 2019, and then improve over the first two quarters in
fiscal year 2020 as increased supply and wide carries in several
core crops should provide opportunities."
"We are committed to the growth plan laid out at the Annual
General Meeting in November 2018, and
through acquisitions and investments over the next several quarters
we expect to add important assets and capabilities needed to
develop the identity-preserved supply chain programs our customers
are looking for," Mr. Day added. "In addition, every farmer
origination asset we add to our network adds value to our existing
terminal network and enables Ceres to bring more value to
customers."
Conference Call Details
Ceres will hold a conference
call to discuss its third quarter fiscal year 2019 financial and
operational results on Thursday, May 9,
2019 at 10:00 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: 2583106. Please dial
in 15 minutes prior to the call to secure a line. The conference
call will be archived for replay until Thursday, May 23, 2019 at midnight ET. To access the archived conference
call, please dial 1-855-859-2056 and enter the encore code
2583106.
A live audio webcast of the conference call will be available
at:
https://event.on24.com/wcc/r/1993663/488FEC5DA8E3C3F1C03688B512E8FA72
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
outside of the routine operations of the Corporation 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
unusual 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 and
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 six locations, Duluth,
MN; Minneapolis, MN;
Shakopee, MN; Northgate,
Saskatchewan; Port Colborne, Ontario; and Savage, MN (Savage Riverport, LLC) 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 March 31, 2019. 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
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.