MINNEAPOLIS, May 28, 2020 /CNW/ - Ceres Global Ag Corp.
(TSX: CRP) ("Ceres" or the "Corporation") today announced its
financial and operating results for the quarter ended March 31, 2020. All amounts are in U.S. currency
unless otherwise noted.
CEO Commentary
"I am extremely proud of our colleagues
across the company, whose commitment and resilience made it
possible to serve customers and stay true to our vision during this
challenging time," said Robert Day,
President and Chief Executive Officer of Ceres. "Our performance is
a testament to the values and culture we have built over the past
several years, making it possible for Ceres to persevere despite
the COVID-19 pandemic."
"The safety and health of our employees, customers, and the
communities in which we operate are our highest priority during
this unprecedented time. Early on, we implemented policies
and guidelines at each location to ensure safe and uninterrupted
operations." Mr. Day continued, "Despite challenges from COVID-19
and seasonal closures in the Great Lakes and upper Mississippi
river, we managed to improve net income and EBITDA vs. the same
quarter one year ago."
Summary Financial and Operational Results
(in thousands of
USD except
per share)
|
3 Months Ended
March 31, 2020
|
3 Months Ended
March 31, 2019
|
9 Months Ended
March 31, 2020
|
9 Months Ended
March 31, 2019
|
Revenue
|
$120,613
|
$90,594
|
$404,071
|
$303,656
|
Gross
profit
|
$4,176
|
$3,223
|
$19,849
|
$11,353
|
Income (loss) from
operations
|
$115
|
$477
|
$7,102
|
$1,430
|
Net income
(loss)
|
$(281)
|
$(1,240)
|
$3,810
|
$(14,912)
|
Earnings (loss) per
basic share
|
$(0.01)
|
$(0.04)
|
$0.13
|
$(0.53)
|
EBITDA1
|
$2,700
|
$1,543
|
$12,780
|
$(5,430)
|
Financial and Operational Highlights for the quarter ended
March 31, 2020
- Net loss for the quarter was $281
thousand, compared to a loss of $1.2
million for the quarter ended March
31, 2019.
- Gross profit for the quarter increased $953 thousand compared to the quarter ended
March 31, 2019 due to increased
trading margins from the Grain Division as well as the addition of
Delmar Commodities, Ltd.
- EBITDA increased by $1.2 million
compared to the quarter ended March 31,
2019 and is $12.8 million for
the first nine-months of the fiscal year.
- The Corporation repaid $5 million
of its term debt in advance of the November
2020 due date.
Outlook
Mr. Day continued, "While COVID-19 continues to create challenges
and uncertainty in our markets, we are optimistic about the fourth
quarter and expect profitable results to end the fiscal year.
Meanwhile, we continue to make progress on growth initiatives and
expect to have more to report in the coming quarters."
Conference Call Details
Ceres will hold a conference
call to discuss its third quarter 2020 financial and operational
results on Friday, May 29, 2020 at
9:00 a.m. ET. Robert Day, Ceres' President and CEO, and
Jay Bierley, 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: 6529419. Please dial
in 15 minutes prior to the call to secure a line. The conference
call will be archived for replay until Friday, June 12, 2020 at midnight, ET. To access
the archived conference call, please dial 1-855-859-2056 and enter
the encore code 6529419.
A live audio webcast of the conference call will be available
at:
https://produceredition.webcasts.com/starthere.jsp?ei=1311742&tp_key=22c9f50026
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. 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
an alternative to net income or loss, or to other standardized
financial measures determined in accordance with IFRS, and is not
intended to represent cash flows or results of operations in
accordance with IFRS.
About Ceres Global Ag Corp. (ceresglobalagcorp.com)
Through its network of commodity logistics centers and team of
industry experts, Ceres merchandizes high-quality North American
agricultural commodities and value-added products and provides
reliable supply chain logistics services to agricultural, energy
and industrial customers worldwide.
Ceres is headquartered in Minneapolis,
MN and together with its wholly-owned affiliates, operates
12 locations across Saskatchewan,
Manitoba, Ontario, and Minnesota. These facilities have an aggregate
grain and oilseed storage capacity of approximately 30.8 million
bushels.
Ceres also has a 50% interest in Savage Riverport, LLC, a joint
venture with Consolidated Grain and Barge Co., a 50% interest in
Gateway Energy Terminal, an unincorporated joint venture with Steel
Reef Infrastructure Corp., 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
Canada-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, 2020. 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.