Ceres provides update on Northgate canola
crush plant project
MINNEAPOLIS, Nov. 12, 2021 /CNW/ - Ceres Global Ag Corp.
(TSX: CRP) ("Ceres" or the "Corporation") today announced its
financial and operating results for its first quarter ended
September 30, 2021. All dollar
amounts are in U.S. currency unless otherwise noted.
First Quarter Highlights:
(Comparisons to first
quarter of fiscal year 2021)
- Strong performance across core operations;
- Results driven by increased volumes and effective risk
management;
- Gross profit increased 526% to $23.9
million;
- Income from operations was $13.7
million;
- Net income was $8.8 million, or
$0.28 per share (~C$0.37 per share);
- Handled 31.6 million bushels of grain and oilseed, an increase
of 12%;
- Jordan Mills soybean crush plant
expansion completed in July, increasing the plant's production
capacity by 50%.
- Advanced Northgate canola crush plant project by ordering major
equipment and beginning design and engineering work.
CEO Commentary
"A very strong first quarter has Ceres off to an excellent start
to our fiscal year. Diversification over the past few years,
relentless focus on our customers, and our ability to successfully
navigate through a generational drought and volatile grain markets
contributed to our strongest quarter on record," said Robert Day, President and Chief Executive
Officer of Ceres. "In addition to the record financial performance,
we made significant progress on our growth and development;
specifically, advancing the transformational canola crush project
that was announced in May 2021."
Summary Financial and Operational Results
(in thousands of
USD except per
share data)
|
Three Months
Ended
September 30, 2021
|
Three Months
Ended
September 30, 2020
|
Revenue
|
$208,371
|
$172,097
|
Gross
profit
|
$23,859
|
$3,810
|
Income from
operations
|
$13,659
|
$42
|
Net income
(loss)
|
$8,769
|
$(936)
|
Earnings (loss) per
basic share
|
$0.28
|
$(0.03)
|
EBITDA1
|
$15,378
|
$1,618
|
Outlook
Mr. Day continued, "Looking ahead, we expect favorable
conditions to continue through the second quarter. With strong
demand and limited supplies, we expect to continue realizing
opportunities through effective trading and positioning, and we
anticipate that will level off in the second half of the year as
supplies diminish."
"Meanwhile, we continue to make steady progress on plans to
build a one million metric ton integrated canola processing
facility in Northgate, Saskatchewan. We have made deposits with major
equipment suppliers, continued our progress on design and
engineering, and will shortly begin to evaluate proposals from
potential strategic partners."
For more details on Ceres' plans to build an integrated
canola crush facility in Northgate, Saskatchewan, click here.
Conference Call Details
Management of Ceres will host a conference call today,
November 12, 2021, at 9:00 am ET to discuss its third quarter financial
and operational results. All interested parties can join the
conference call by dialing 1- 800-437-2398 or 647-792-1240. 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: https://bit.ly/CRP2022Q1. 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.
Ceres adds 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 Global
connects farmers to customers around the world.
Ceres is headquartered in Minneapolis,
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% 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 Global, 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
quarter ended September 30, 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.