MINNEAPOLIS, May 14, 2021 /CNW/ - Ceres Global Ag Corp. (TSX:
CRP) ("Ceres" or the "Corporation") today announced its financial
and operating results for the quarter ended March 31, 2021. All amounts are in U.S. currency
unless otherwise noted.
Third Quarter Highlights
- Revenue grew 68.6%, primarily due to an increase of 11.0
million bushels handled compared to the same quarter a year
ago;
- Gross profit and income from operations increased by
$1.6 million and $2.0 million respectively compared to the third
quarter of last year. Improved trading and risk management along
with an increase in bushels merchandised were the primary drivers
of the increase over the prior year;
- Established Farmers Grain, LLC, a joint venture with Farmers
Cooperative Grain and Seed Association from Thief River Falls, MN and commenced on a
project to add 1.2 million bushels of storage and unit train
loading capabilities. The grain merchandizing joint venture will
allow Ceres to increase its grower origination in the region;
- On February 10, 2021, the
Corporation amended its revolving credit facility, resulting in
lower and more competitive interest rates.
CEO Commentary
"We had a solid third quarter with higher than usual volumes for
what is typically a weaker seasonal period," said Robert Day, President and Chief Executive
Officer of Ceres. "Our team managed market volatility well and we
were particularly pleased with the results from core products such
as oats, wheat, and canola, despite limited logistical outlets due
to seasonal closures in the Great Lakes and the upper Mississippi
River. During the quarter, we also completed the formation of
Farmers Grain, LLC – a joint venture whereby we are adding
strategic origination of our core products while also expanding our
geographic footprint in the upper Midwest region of the U.S."
Summary Financial and Operational Results
(in thousands of
USD except per
share)
|
3-Months Ended
March 31, 2021
|
3-Months Ended
March 31, 2020
|
9-Months Ended
March 31, 2021
|
9-Months Ended
March 31, 2020
|
Revenue
|
$203,911
|
$120,947
|
$551,275
|
$405,205
|
Gross
profit
|
$5,858
|
$4,306
|
$16,162
|
$20,324
|
Income from
operations
|
$2,215
|
$245
|
$4,990
|
$7,577
|
Net income
(loss)
|
$(78)
|
$(281)
|
$311
|
$3,810
|
Earnings (loss) per
basic share
|
$(0.00)
|
$(0.01)
|
$0.01
|
$0.13
|
EBITDA1
|
$3,495
|
$2,830
|
$9,368
|
$13,255
|
Outlook
Mr. Day continued, "With low ending inventories from the
2020/2021 crop year, Ceres expects to handle slightly lower volumes
than normal in our fourth quarter ending June 30. However, overall price strength and
volatility are providing opportunities to generate attractive gross
margins."
"Meanwhile, we are making a significant amount of progress
advancing several key growth initiatives. The expansion of our
soybean crush plant in Jordan,
Manitoba, remains on schedule for
completion this summer, which we expect will have a meaningful
impact on results starting with the coming crop year. In addition,
our project pipeline is full as we look to continue adding
origination to our existing network. We will have more to say about
our growth initiatives in the coming quarters."
Conference Call Details
Management of Ceres will host a conference call today,
May 14, 2021 at 8:30 am ET to discuss its third quarter financial
and operational results. All interested parties can join the
conference call by dialing 1-888-231-8191 or 647-427-7450. Please
dial in 15 minutes prior to the call to secure a line.
A live audio webcast of the conference call will be available
at: http://bit.ly/CeresQ32021. 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.
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)
Ceres and its subsidiaries ("Ceres") add value across
agricultural, energy and industrial supply chains through efficient
sourcing, storing, transporting and marketing of high-quality
agricultural commodities, value-added products and raw materials.
Leveraging its network of commodity logistics centers and team of
industry experts, Ceres connects farmers to customers around the
world.
Ceres is headquartered in Golden
Valley, Minnesota, and together with its affiliated
companies, 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 has a 50% interest in Savage Riverport, LLC (a joint
venture with Consolidated Grain and Barge Co.), a 50% interest in
Farmers Grain, LLC (a joint venture with Farmer's Cooperative Grain
and Seed Association), 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).
For more information about Ceres, please visit
www.ceresglobalagcorp.com.
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, 2021. 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.