Rogers Sugar : Financial Statements Q3 2022

Unaudited condensed consolidated interim financial statements of

ROGERS SUGAR INC.

Three and nine months ended July 2, 2022 and July 3, 2021

(Unaudited and not reviewed by the Company's external independent auditors)

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ROGERS SUGAR INC.

(Unaudited)

Condensed consolidated interim statements of earnings and comprehensive income

(In thousands of dollars except per share amounts)

		For the three months ended	For the nine months ended
Condensed consolidated interim statements of earnings		July 2, 2022	July 3, 2021	July 2, 2022	July 3, 2021
Revenues (note 13)	254,632	210,931	738,728	650,700
Cost of sales	229,684	180,867	636,395	550,572
Gross margin	24,948	30,064	102,333	100,128
Administration and selling expenses	10,627	10,726	34,233	28,280
Distribution expenses	5,499	4,276	16,442	14,303
		16,126	15,002	50,675	42,583
Results from operating activities	8,822	15,062	51,658	57,545
Net finance costs (note 5)	4,385	5,345	12,509	14,424
Earnings before income taxes	4,437	9,717	39,149	43,121
Income tax expense (recovery):
Current	2,522	2,458	12,680	10,713
Deferred	(1,223)	423	(2,465)	1,021
		1,299	2,881	10,215	11,734
Net earnings	3,138	6,836	28,934	31,387
Net earnings per share (note 10)
Basic	0.03	0.07	0.28	0.30
Diluted	0.03	0.07	0.28	0.29
Condensed consolidated interim statements of comprehensive		For the three months ended	For the nine months ended
income		July 2, 2022	July 3, 2021	July 2, 2022	July 3, 2021
Net earnings	3,138	6,836	28,934	31,387
Other comprehensive (loss) income
Items that may or may not be reclassified
subsequently to net earnings:
Cash flow hedges (note 6)	3,191	5,375	15,137	9,570
Income tax on other comprehensive (loss) income (note 6)	(819)	(1,377)	(3,886)	(2,452)
Foreign currency translation differences	547	(94)	340	(1,214)
		2,919	(3,910)	11,591	5,904
Net earnings and comprehensive income
for the period	6,057	10,740	40,525	37,291

The accompanying notes are an integral part of these unaudited condensed consolidated interim financial statements.

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ROGERS SUGAR INC.

(Unaudited)

Condensed consolidated interim statements of financial position

(In thousands of dollars)

	July 2, 2022	October 2, 2021	July 3, 2021
Assets
Current assets:
Cash	2,744	15,643	4,278
Trade and other receivables	105,396	95,546	74,722
Income taxes receivable	-	285	-
Inventories	268,634	180,291	224,717
Prepaid expenses	8,542	4,570	4,721
Derivative financial instruments (note 6)	10,552	5,897	3,833
Total current assets	395,868	302,232	312,271
Non-current assets:
Property, plant and equipment	239,949	241,713	239,806
Right-of-use assets	23,905	18,526	19,602
Intangible assets	25,227	28,034	28,914
Other assets	628	548	591
Derivative financial instruments (note 6)	16,582	5,870	1,476
Goodwill	283,007	283,007	283,007
Total non-current assets	589,298	577,698	573,396
Total assets	985,166	879,930	885,667
Liabilities and Shareholder's Equity
Current liabilities:
Revolving credit facility (note 7)	41,000	-	20,000
Trade and other payables	164,001	119,940	123,522
Income taxes payable	1,282	3,454	2,407
Provisions	100	1,394	1,883
Lease obligations	4,017	3,049	3,471
Derivative financial instruments (note 6)	287	2,089	1,649
Total current liabilities	210,687	129,926	152,932
Non-current liabilities:
Revolving credit facility (note 7)	100,000	100,000	100,000
Employee benefits	29,540	29,299	60,228
Provisions	3,131	2,431	2,185
Derivative financial instruments (note 6)	696	546	1,373
Lease obligations	20,023	15,443	16,010
Convertible unsecured subordinated debentures (note 8)	149,203	147,742	147,259
Senior guaranteed notes	98,874	98,785	98,759
Deferred tax liabilities	38,228	36,800	26,650
Total non-current liabilities	439,695	431,046	452,464
Total liabilities	650,382	560,972	605,396
Shareholder's equity:
Share capital (note 9)	103,550	100,139	100,139
Contributed surplus	300,884	300,887	300,864
Equity portion of convertible unsecured subordinated
debentures (note 8)	5,085	5,085	5,085
Deficit	(105,777)	(106,604)	(113,412)
Accumulated other comprehensive income (loss)	31,042	19,451	(12,405)
Total shareholder's equity	334,784	318,958	280,271
Total liabilities and shareholder's equity	985,166	879,930	885,667

The accompanying notes are an integral part of these unaudited condensed consolidated interim financial statements.

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ROGERS SUGAR INC.

(Unaudited)

Condensed consolidated interim statements of changes in shareholders' equity

(In thousands of dollars except number of shares)

							For the nine months ended July 2, 2022
					Accumulated		Accumulated
					unrealized		foreign
				Equity portion	gain on	Accumulated	currency
	Number of	Common	Contributed	of convertible	employee	cash flow	translation
	shares	shares	surplus	debentures	benefit plans	hedge gain	differences	Deficit	Total
Balance, October 2, 2021	103,686,923	100,139	300,887	5,085	12,450	7,240	(239)	(106,604)	318,958
Net earnings for the period	-	-	-	-	-	-	-	28,934	28,934
Dividends (note 9)	-	-	-	-	-	-	-	(28,107)	(28,107)
Issuance of shares (note 9)	685,122	3,411	(108)	-	-	-	-	-	3,303
Share-based compensation (note 11)	-	-	105	-	-	-	-	-	105
Cash flow hedges, net of tax (note 6)	-	-	-	-	-	11,251	-	-	11,251
Translation of foreign operations	-	-	-	-	-	-	340	-	340
Balance, July 2, 2022	104,372,045	103,550	300,884	5,085	12,450	18,491	101	(105,777)	334,784
							For the nine months ended July 3, 2021
					Accumulated		Accumulated
					unrealized	Accumulated	foreign
				Equity portion	gain on	cash flow	currency
	Number of		Contributed	of convertible	employee	hedge gain	translation
	shares	Common shares	surplus	debentures	benefit plans	(loss)	differences	Deficit	Total
Balance, October 3, 2020	103,536,923	99,452	300,794	5,085	(12,983)	(6,119)	793	(116,831)	270,191
Net earnings for the period	-	-	-	-	-	-	-	31,387	31,387
Dividends (note 9)	-	-	-	-	-	-	-	(27,968)	(27,968)
Issuance of shares (note 9)	150,000	687	(14)	-	-	-	-	-	673
Share-based compensation (note 11)	-	-	84	-	-	-	-	-	84
Cash flow hedges, net of tax (note 6)	-	-	-	-	-	7,118	-	-	7,118
Translation of foreign operations	-	-	-	-	-	-	(1,214)	-	(1,214)
Balance, July 3, 2021	103,686,923	100,139	300,864	5,085	(12,983)	999	(421)	(113,412)	280,271

The accompanying notes are an integral part of these unaudited condensed consolidated interim financial statements.

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ROGERS SUGAR INC.

(Unaudited)

Condensed consolidated interim statements of cash flows

(In thousands of dollars)

	For the three months ended	For the nine months ended
	July 2, 2022	July 3, 2021	July 2, 2022	July 3, 2021
Cash flows from operating activities:
Net earnings	3,138	6,836	28,934	31,387
Adjustments for:
Depreciation of property, plant and equipment and right-of-use
assets (note 4)	5,608	5,329	16,619	15,911
Amortization of intangible assets (note 4)	972	955	2,902	2,870
Changes in fair value of derivative financial instruments included in
cost of sales	1,708	1,726	623	1,029
Income tax expense	1,299	2,881	10,215	11,734
Pension contributions	(3,051)	(2,903)	(8,094)	(7,975)
Pension expense	3,061	3,169	8,335	8,992
Net finance costs (note 5)	4,385	5,345	12,509	14,424
Share-based compensation - equity settled (note 11)	94	24	105	84
Share-based compensation - cash settled (note 11)	579	63	4,860	229
Loss (gain) on disposal of property, plant and equipment	44	-	44	(86)
	17,837	23,425	77,052	78,599
Changes in:
Trade and other receivables	(5,298)	4,090	(9,850)	19,465
Inventories	(73,848)	(52,182)	(88,343)	(44,203)
Prepaid expenses	(4,955)	2,810	(3,972)	3,202
Trade and other payables	76,523	52,234	40,447	(8,045)
Provisions	(382)	39	(594)	-
	(7,960)	6,991	(62,312)	(29,581)
Cash flows from operating activities	9,877	30,416	14,740	49,018
Interest paid	(6,852)	(5,448)	(15,475)	(13,013)
Income taxes paid	(3,431)	(216)	(14,573)	(6,290)
Net cash (used in) from operating activities	(406)	24,752	(15,308)	29,715
Cash flows (used in) from financing activities:
Dividends paid (note 9)	(9,378)	(9,332)	(28,045)	(27,968)
Decrease in bank overdraft	-	-	-	(2,797)
Increase (decrease) in revolving credit facility (note 7)	6,000	(105,000)	41,000	(74,000)
Payment of financing fees	-	-	(268)	-
Payment of lease obligations	(1,309)	(1,344)	(3,867)	(4,256)
Net proceeds from senior guaranteed notes	-	98,740	-	98,740
Issuance of shares (note 9)	809	673	3,303	673
Cash flow (used in) from financing activities	(3,878)	(16,263)	12,123	(9,608)
Cash flows used in investing activities:
Additions to property, plant and equipment, net of proceeds on
disposal	(3,387)	(5,689)	(9,689)	(17,513)
Additions to intangible assets	-	-	(95)	(272)
Cash flow used in investing activities	(3,387)	(5,689)	(9,784)	(17,785)
Effect of changes in exchange rate on cash	129	1	70	(18)
Net increase (decrease) in cash	(7,542)	2,801	(12,899)	2,304
Cash, beginning of period	10,286	1,477	15,643	1,974
Cash, end of period	2,744	4,278	2,744	4,278

Supplemental cash flow information (note 12)

The accompanying notes are an integral part of these unaudited condensed consolidated interim financial statements.

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