MINNEAPOLIS, MN, Sept. 23, 2020 /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, 2020. All amounts are in
U.S. currency unless otherwise noted.
CEO Commentary
"I am proud to announce that Ceres was
profitable in the fourth quarter of the 2020 fiscal year,
culminating in the best annual financial performance in our
history," said Robert Day, President
and Chief Executive Officer of Ceres. "Despite a challenging
environment and uncertainties caused from the COVID-19 pandemic, we
lived up to our values and surpassed goals set at the beginning of
the year."
"Thanks to the commitment and perseverance by Ceres colleagues
across the entire organization to ensure safe and uninterrupted
operations, we are delivering on our vision to be the preferred
supplier to quality-conscious customers," Mr. Day continued. "From
the expansion of our grower origination network to the critical
efforts we are making to protect and support our employees,
suppliers, and end-use customers, our team is creating value for
shareholders and the communities in which we operate."
Summary Financial and Operational Results
(in thousands of
USD except per share)
|
3 Months
Ended June 30,
2020
|
3 Months Ended
June 30, 2019
|
Year Ended
June 30, 2020
|
Year Ended
June 30, 2019
|
Revenue
|
$177,642
|
$134,741
|
$581,713
|
$438,396
|
Gross
profit
|
$7,469
|
$2,967
|
$27,318
|
$14,320
|
Income (loss) from
operations
|
$2,513
|
$(141)
|
$9,615
|
$1,289
|
Net income
(loss)
|
$527
|
$(1,858)
|
$4,337
|
$(16,871)
|
Earnings (loss) per
basic share
|
$0.02
|
$(0.07)
|
$0.14
|
$(0.60)
|
EBITDA1
|
$4,126
|
$1,370
|
$16,906
|
$(4,061)
|
Financial and operational highlights for the quarter and year
ended June 30, 2020
- Net income for the quarter was $0.5
million, bringing the total net income for the year to
$4.3 million, compared to a net loss
of $16.9 million for the year ended
June 30, 2019.
- Income from operations for the year was over $9.6 million, an increase of $8.3 million compared to the previous year.
- EBITDA for the year was over $16.9
million, an increase of $21.0
million compared to the previous year.
- The Corporation increased its term debt from $20 million to $35
million to fund the acquisition of Delmar Commodities Ltd.
("Delmar") and elected to repay $5
million in advance of the November
2020 due date.
- Successfully integrated the acquisition of Delmar into Ceres'
operations which positively contributed top- and bottom-line growth
across our Grain and Seed and Processing segments.
Outlook
Mr. Day continued, "While COVID-19 continues
to create challenges and uncertainty in our markets and a decrease
in volumes for our energy business, we are optimistic about the
prospects for our core business for the next fiscal year.
Meanwhile, we are quickly integrating the Nicklen Siding grain
elevator acquisition announced earlier this month and expect to
have more acquisition-related announcements to report over the
coming quarters."
Conference Call Details
Ceres will hold a conference
call to discuss its fourth quarter 2020 financial and operational
results on Thursday, September 24,
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: 7090606. Please dial
in 15 minutes prior to the call to secure a line. The conference
call will be archived for replay until Thursday, October 8, 2020 at midnight, ET. To
access the archived conference call, please dial 1-855-859-2056 and
enter the encore code 7090606.
A live audio webcast of the conference call will be available
at:
https://produceredition.webcasts.com/starthere.jsp?ei=1367770&tp_key=036ff5688e
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
13 locations across Saskatchewan,
Manitoba, Ontario, and Minnesota. These facilities have an aggregate
grain and oilseed storage capacity of approximately 31 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, and 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, 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, risks related to the COVID-19 pandemic, 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.