Rogers Sugar earns $5.53-mil­lion in fis­cal Q3

Prairie Post (West Edition) - - Alberta -

Rogers Sugar Inc. recently re­leased its third quar­ter fis­cal 2020 re­sults. The com­pany recorded ad­justed EBITDA (earn­ings be­fore in­ter­est, taxes, de­pre­ci­a­tion and amor­ti­za­tion) of $14.3-mil­lion and $61-mil­lion for the cur­rent quar­ter and year to date, $4.5-mil­lion and $4.6-mil­lion lower than the com­pa­ra­ble pe­ri­ods last year, re­spec­tively.

“The pan­demic has re­sulted in strong con­sumer de­mand for both our sugar and maple prod­ucts, while con­cur­rently driv­ing in­dus­trial and liq­uid de­mand lower, as the food ser­vice sec­tor re­mains un­der pres­sure. We un­der­stand that the fight against COVID-19 is far from over, and as we ad­dress the unique chal­lenges the pan­demic brings, we con­tinue to pri­or­i­tize the health and safety of our peo­ple and re­main com­mit­ted to meet­ing the needs of our cus­tomers. De­spite this chal­leng­ing en­vi­ron­ment, we are focused on run­ning our busi­ness and are see­ing signs of en­cour­age­ment for the fu­ture, in­clud­ing re­cent changes in ex­port quo­tas that will al­low us to sup­ply in­cre­men­tal sugar vol­umes to the U.S.,” said John Hol­l­i­day, pres­i­dent and chief ex­ec­u­tive of­fi­cer of Rogers and Lan­tic Inc.

Im­pact of COVID-19

The com­pany’s plants have con­tin­ued to op­er­ate fully de­spite the COVID-19 pan­demic, and pro­duc­tion ca­pac­i­ties have not been sig­nif­i­cantly im­pacted. The health and safety of em­ploy­ees re­mains the top pri­or­ity and the com­pany has con­tin­ued its ex­ten­sive pro­tec­tion mea­sures, in­clud­ing: a spe­cial com­mit­tee, com­pris­ing rep­re­sen­ta­tives from each site, that meets reg­u­larly; so­cial dis­tanc­ing mea­sures; ad­di­tional per­sonal pro­tec­tive equip­ment re­quire­ments; in­creased san­i­ta­tion and rig­or­ous dis­in­fec­tion pro­ce­dures; tem­per­a­ture mon­i­tor­ing of all per­son­nel prior to en­try into one of the com­pany’s lo­ca­tions; and daily fol­low-ups by the com­pany’s nurses re­gard­ing all health-re­lated ques­tions and con­cerns. For the third quar­ter, the fi­nan­cial im­pact of the COVID-19 pan­demic amounted to $2.1-mil­lion for both seg­ments, largely due to in­creased health and safety mea­sures and pre­mium pay for em­ploy­ees.

Third quar­ter high­lights:

• During the quar­ter, the com­pany curred $2.1-mil­lion in ad­di­tional ad­min­is­tra­tive costs as­so­ci­ated with the COVID-19 pan­demic.

• To­tal sugar vol­ume was lower than the com­pa­ra­ble quar­ter last year, as strong de­mand from the con­sumer vol­umes and ad­di­tional op­por­tunis­tic sales to the United States was off­set by a re­duc­tion of vol­umes from the in­dus­trial and liq­uid seg­ments.

• Ap­prox­i­mately 5,500 met­ric tonnes were de­liv­ered un­der the global and Cana­dian re­fined sugar tar­iff-rate quota (TRQ) during the quar­ter. Rogers re­turned $9.4-mil­lion to share­hold­ers during the quar­ter, of which $9.3-mil­lion was through div­i­dends and $100,000 was through share re­pur­chases. A new NCIB was put in place and com­menced June 3, 2020, to pur­chase up to 1.5 mil­lion com­mon shares.

• Qu­atas were an­nouced in the last quar­ter for 5,000 met­ric tonnes of re­fined sugar that can only be sup­plied by Taber by Sept. 30, 2020, as well as non-orig­i­nat­ing sugar re­fined in Canada of 36,287 met­ric tonnes to be sup­plied be­tween July 1, 2020, and Dec. 31, 2020, by any sugar re­finer in Canada. The com­pany in­tends to fully de­liver its Cana­dian TRQ by the end of the fis­cal year and max­i­mize its ex­port vol­ume to the U.S. un­der the non-orig­i­nat­ing sugar re­fined in Canada TRQ un­til the end of the cal­en­dar year.

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