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    RSI   CA77519R1029

ROGERS SUGAR INC.

(RSI)
  Report
Delayed Toronto Stock Exchange  -  04:00 2022-06-24 pm EDT
6.150 CAD   +1.49%
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Rogers Sugar : Q4 2020 Report

11/25/2020 | 05:13pm EDT

Rogers Sugar Inc.

Press release - 4th Quarter 2020 Results

  • ADJUSTED EBITA OF $92.3 MILLION FOR FISCAL 2020 - 5% INCREASE OVER PRIOR YEAR
  • SUGAR REVENUES HIGHER DUE TO RECORD BREAKING SALES VOLUMES IN THE FOURTH QUARTER ACROSS ALL MARKET SEGMENTS
  • STRONG SALES VOLUME IN MAPLE DRIVING HIGHER REVENUE FOR THE QUARTER AND THE YEAR

Rogers Sugar Inc.'s (the "Company" or "Rogers") (TSX: RSI) today reported fourth quarter and year-to-date fiscal 2020 results. The Company recorded adjusted EBITDA (1) of $31.2 million and $92.3 million for fourth quarter and fiscal 2020, respectively, versus $22.2 million and $87.8 million for the comparable periods last year.

"Our strong fiscal 2020 performance is a direct result of the efforts of our agile committed team and our long-term strategic vision to continue to build a resilient, successful company," said John Holliday, President and Chief Executive Officer of Rogers and Lantic Inc. "During the year, we generated higher revenue, improved margins, and increased free cash flow, all while dealing with the impacts of a global pandemic, a severely curtailed beet harvest and rail blockades. During this time, the safety of our people has remained our top priority and by implementing thorough safety practices and protocols, our operations have continued to perform at full capacity. In addition, we successfully restructured our supply chain to ensure our customers' needs were met while also completing our capital improvement projects that will drive long-term efficiency and cost improvements. Looking forward to fiscal 2021, we expect that our strong performance will continue due to the continued firm demand from our customers and to a reduction in operational and distribution costs mostly related to the return of a normal harvest and beet sugar production in Taber."

Update on COVID-19

In December 2019, a novel strain of coronavirus, known as COVID-19 was identified. As of March 20, 2020, COVID-19 had spread to over 100 countries and been declared a pandemic by the World Health Organization. COVID-19 has negatively impacted the global economy, disrupted financial markets and supply chain, significantly restricted business travel and interrupted business activity.

Our business is considered essential services by the government and as such, the Company's plants have continued to operate at usual capacity. The Company has established extensive protection measures and protocols to ensure the health and safety of its employees. COVID-19 could have a material effect on our business as it relates to customer demand, supply and delivery chain, operations, financial market volatility, pension and benefits liabilities and other economic fundamentals.

The effect of COVID-19 on our business may continue for an extended period and the ultimate impact on the Company will depend on future developments that are uncertain and cannot be predicted, including and without limitations, the duration and severity of the pandemic, the duration of the government support measures, the effectiveness of the actions taken to contain and treat the disease, and the length of time it takes for normal economic and operating conditions to resume.

Rogers Sugar Inc.

Press release - 4th Quarter 2020 Results

Fourth Quarter Highlights

Highlights of the consolidated results are as follows:

(unaudited)

Fourth Quarter

Fiscal Year

(In thousands of dollars, except volume and per share information)

2020

2019

2020

2019

Sugar (metric tonnes)

225,396

196,903

761,055

741,144

Maple syrup ('000 pounds)

13,181

10,163

53,180

42,377

$

$

$

$

Total revenues

246,212

207,572

860,801

794,292

Gross margin

37,890

29,073

126,199

122,575

Results from operating activities

22,829

(32,800)

68,010

24,147

Net (loss) earnings

12,952

(40,021)

35,419

(8,167)

Net (loss) earnings per share (basic)

0.13

(0.38)

0.34

(0.08)

Net (loss) earnings per share (diluted)

0.12

(0.38)

0.34

(0.08)

Dividends per share

0.09

0.09

0.36

0.36

Non- IFRS results (1)

40,065

126,118

Adjusted Gross Margin (1)

29,026

116,578

Adjusted results from operating activities (1)

25,004

17,153

67,929

68,150

Adjusted EBITDA (1)

31,231

22,215

92,259

87,808

Adjusted net earnings (1)

14,551

9,910

35,245

37,079

Adjusted net earnings per share (basic) (1)

0.14

0.09

0.34

0.35

Trailing twelve months free cash flow (1)

40,001

30,843

40,001

30,843

    1. See "Non-GAAP Measures" section of the MD&A for definition and reconciliation to GAAP measures
  • Adjusted EBITDA of $92.3 million and free cash flow of $40.0 million were better than 2019 by $4.5 million and $9.2 million respectively;
  • Record sales volume for sugar in the fourth quarter of 2020 at 225,396 metric tonnes, representing a normalized increase of 7.3% when considering the extra week of production of the current quarter;
  • Lower adjusted EBITDA in Maple despite higher customer demand caused by continuous market competition pressuring margins
  • For the year, the Company incurred unforeseen expenses amounting to $3.4 million in relation with COVID-19. These costs were largely due to increased health and safety measures and premium pay for employees;
  • During the year, RSI purchase and cancelled 1,377,394 shares for a total cash consideration of $6,5 million
  • In fiscal 2020, RSI distributed $0.36 per share to its shareholders for a total amount of $37.4 million; and
  • On November 25, 2020, the Board of Directors declared a quarterly dividend of $0.09.

Please refer to the MD&A for additional details on the consolidated results of the Company.

Rogers Sugar Inc.

Press release - 4th Quarter 2020 Results

Segmented Information

The following is a table showing the key results by segments:

Consolidated results

Fourth Quarter Fiscal 2020

Fourth Quarter Fiscal 2019

(In thousands of dollars)

Maple

Maple

Sugar

Products

Total

Sugar

Products

Total

Revenues

$

188,666

$

57,546

$

246,212

$

159,432

$

48,140

$

207,572

Gross margin

32,198

5,692

37,890

24,643

4,430

29,073

Administration and selling expenses

7,803

2,589

10,392

4,730

2,622

7,352

Distribution costs

4,197

472

4,669

3,465

1,056

4,521

Goodwill impairment

-

-

-

-

50,000

50,000

Results from operating activities (EBIT)

$

20,198

$

2,631

$

22,829

$

16,448

$

(49,248)

$

(32,800)

Non- GAAP results (1)

Adjusted Gross Margin (1)

$

35,503

$

4,562

$

40,065

$

24,358

$

4,668

$

29,026

Adjusted results from operating activities (Adjusted

EBIT) (1)

$

23,503

$

1,501

$

25,004

$

16,163

$

990

$

17,153

Adjusted EBITDA (1)

$

27,982

$

3,249

$

31,231

$

19,662

$

2,553

$

22,215

Additional information:

Addition to property, plant and equipment and

8,394

578

8,972

intangible assets

7,054

1,081

8,135

Consolidated results

Fiscal 2020

Fiscal 2019

(In thousands of dollars)

Maple

Maple

Sugar

Products

Total

Sugar

Products

Total

Revenues

$

631,263

$

229,538

$

860,801

$

595,878

$

198,414

$

794,292

Gross margin

105,088

21,111

126,199

100,301

22,274

122,575

Administration and selling expenses

27,959

10,981

38,940

21,609

9,962

31,571

Distribution costs

16,266

2,983

19,249

13,153

3,704

16,857

Goodwill impairment

-

-

-

-

50,000

50,000

Results from operating activities (EBIT)

$

60,863

$

7,147

$

68,010

$

65,539

$

(41,392)

$

24,147

Non- GAAP results:

Adjusted Gross Margin (1)

$

106,212

$

19,906

$

126,118

$

94,032

$

22,546

$

116,578

Adjusted results from operating activities (Adjusted

EBIT)(1)

$

61,987

$

5,942

$

67,929

$

59,270

$

8,880

$

68,150

Adjusted EBITDA (1)

$

78,877

$

13,382

$

92,259

$

73,135

$

14,673

$

87,808

Additional information:

Addition to property, plant and equipment and

20,711

6,569

27,280

intangible assets

22,645

4,468

27,113

  1. See "Non-GAAP Measures" section of the MD&A for definition and reconciliation to GAAP measures

Sugar

Strong performance in the sugar segment in the fourth quarter and full year fiscal 2020 was driven by increased volumes across almost all segments of the sugar business and improved adjusted gross margin. Approximately 14,000 metric tonnes of the volume increase in the fourth quarter and the current year is attributable to the extra week of fiscal 2020.

(In thousands of dollars, except volume)

Fourth Quarter

Fiscal Year

2020

2019

2020

2019

Revenues

$

188,666

$

159,432

$

631,263

$

595,878

Volume (MT) as at September 28, 2019

196,903

741,144

Variation:

(MT

Industrial

10,367

(10,850)

Consumer

5,818

19,770

Liquid

5,418

5,642

Export

6,890

5,349

Total variation

28,493

19,911

Volume as at October 3, 2020

225,396

761,055

Rogers Sugar Inc.

Press release - 4th Quarter 2020 Results

Revenues increased in the fourth quarter of fiscal 2020 and for the year due to an extra week of operation in fiscal 2020, higher weighted average raw sugar values in Canadian dollars as well as an increase in overall volumes.

Volumes in the industrial market segment increased in the fourth quarter mostly due to the extra week of shipments and the return to normal demand for certain large industrial accounts earlier impacted by the COVID-19 pandemic. For the full year, industrial volumes were lower than last year due to reduced demand in the third quarter driven by the COVID-19 pandemic which resulted in less demand for manufacturing of food products destined for the food service sector. Industrial volumes were also impacted by the non-recurring sales to a competitor that occurred in the first quarter of fiscal year 2019 and by the rail blockades that took place in the second quarter of the current fiscal year, which created difficulties in servicing our Ontario customers.

Consumer volumes increased in the fourth quarter and full year in 2020 due to the extra week of shipments in the current year and continued strong retail demand driven by the increase in home baking associated with the COVID-19 pandemic.

Liquid volumes increased in the current quarter and the current year as a result of the extra week of shipments in 2020 along with additional demand from existing customers.

Finally, export volumes increased in the current quarter and the full year driven by additional U.S. global refined Tariff-Rate Quotas ("TRQ") in fiscal 2020. In total the Company sold 5,349 metric tonnes more than in the previous year. Most of the extra volume was sold in the fourth quarter of 2020. The export sales for 2020 amounted to approximately 57,000 metric tonnes of which approximately 18,000 metric tonnes were entered against the various US refined TRQs.

Fourth Quarter

Fiscal Year

(In thousands of dollars, except per metric tonne information)

2020

2019

2020

2019

Gross margin

$

32,198

$

24,643

$

105,088

$

100,301

Total adjustment to cost of sales (1) (2)

3,305

(285)

1,124

(6,269)

Adjusted gross margin (1)

$

35,503

$

24,358

$

106,212

$

94,032

Gross margin per metric tonne

$

142.85

$

125.15

$

138.08

$

135.33

Adjusted gross margin per metric tonne

$

157.51

$

123.71

$

139.56

$

126.87

Included in Gross margin:

$

3,920

$

14,918

Depreciation of property, plant and equipment and right-of-use assets

$

3,298

$

13,072

  1. See "Non-GAAP Measures" section of the MD&A for definition and reconciliation to GAAP measures
  2. See "Adjusted results" section of the MD&A

Adjusted gross margin for the current quarter was $11.1 million or 45.8% higher than the last quarter of fiscal 2019. For the fourth quarter of 2020, the adjusted gross margin per metric tonne was $33.80 higher than the prior year. The favourable variance in adjusted gross margin per metric tonne was mainly related to higher sales volume in the grocery and exports segments.

For fiscal 2020, adjusted gross margin increased by $12.2 million or 13%. For fiscal 2020, adjusted gross margin per metric tonne increased by $12.69 compared to fiscal 2019. The favourable variance in adjusted gross margin per metric tonne was again mainly related to higher sales volume in the grocery and export segments and from lower volume originating from our beet sugar plant in Taber.

This is an excerpt of the original content. To continue reading it, access the original document here.

Disclaimer

Rogers Sugar Inc. published this content on 25 November 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 25 November 2020 22:12:03 UTC


© Publicnow 2020
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Sales 2022 986 M 764 M 764 M
Net income 2022 - - -
Net Debt 2022 - - -
P/E ratio 2022 -
Yield 2022 5,85%
Capitalization 641 M 497 M 497 M
Capi. / Sales 2022 0,65x
Capi. / Sales 2023 0,64x
Nbr of Employees 1 303
Free-Float 99,3%
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Mean consensus HOLD
Number of Analysts 5
Last Close Price 6,15 CAD
Average target price 6,05 CAD
Spread / Average Target -1,63%
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Michael W. Walton President & Chief Executive Officer
Jean-Sebastien Couillard Chief Financial Officer, Secretary & VP-Finance
M. Dallas H. Ross Chairman
Dean J. Bergmame Independent Director
William Stephen Maslechko Independent Director
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