Ceres-developed executive, Blake Amundson, to replace Jay Bierley as Vice President & CFO, and
Corporation welcomes HR veteran, Holly
Dammer, as Vice President, Human Resources
MINNEAPOLIS, May 11, 2022
/CNW/ - Ceres Global Ag Corp. (TSX: CRP) ("Ceres" or
the "Corporation") today announced its financial and
operating results for the quarter ended March 31, 2022. All amounts are in U.S. currency
unless otherwise noted. Ceres also announced the following
personnel changes: Holly Dammer
joined the Corporation as Vice President, Human Resources,
effective April 18, 2022;
Jay Bierley, Vice President &
Chief Financial Officer, resigned from Ceres, effective
May 31, 2022; and Blake Amundson was promoted from Finance
Director to Vice President & Chief Financial Officer, effective
May 31, 2022.
Third Quarter Highlights
(Comparisons to third quarter of fiscal year 2021)
- Results driven by strong performance across core operations,
consistent volumes, and effective risk management;
- Gross profit increased 109% to $12.3
million;
- Income from operations was $3.6
million;
- Net income was $912 thousand, or
$0.03 per share;
- Advanced the Northgate canola crush project through furthering
design and engineering work, and remaining on schedule;
- On February 8, 2022, the
Corporation amended its revolving credit facility, increasing its
line by $50.0 million and lowering
variable interest rates by 25 basis points;
- February 10, 2022, the
Corporation secured an option to purchase 50% of Berthold Farmers
Elevator, LLC from Columbia Grain International;
- Appointed Holly Dammer as Vice
President of Human Resources;
- Subsequent to quarter end Jay
Bierley, Vice President & Chief Financial Officer,
resigned from Ceres; Blake Amundson,
currently Ceres' Finance Director, will succeed Jay as Vice
President & Chief Financial Officer, effective May 31, 2022.
CEO Commentary
"Q3 was another outstanding quarter, adding to our record
financial performance for the year," said Robert Day, President and Chief Executive
Officer of Ceres. "Once again, our team successfully navigated
through volatile markets, this time influenced by geo-political
events that were difficult to anticipate. During the quarter we
continued to make meaningful progress on our growth strategy as we
secured the right to purchase 50% ownership of Berthold Farmers
Elevator, LLC and we advanced on two key projects: expansion of the
grain elevator in the Farmers Grain, LLC joint venture in
Thief River Falls, to be completed
in July 2022, and the canola crush
project at Northgate."
"In people news, I am pleased to welcome Holly Dammer to the Ceres team as Vice President
of Human Resources. I would also like to thank Jay Bierley for the value he has brought to
Ceres over the past two years as CFO and congratulate Blake Amundson for his promotion to CFO,
something he has been preparing for since joining Ceres six years
ago. Jay will be staying on until the end of the month to help
ensure a smooth transition."
Summary Financial and Operational
Results
(in thousands of USD
except per
share)
|
3-Months Ended
March 31, 2022
|
3-Months Ended
March 31, 2021
|
9-Months Ended
March 31, 2022
|
9-Months Ended
March 31, 2021
|
Revenue
|
$269,625
|
$203,911
|
$782,791
|
$551,275
|
Gross profit
|
$12,265
|
$5,858
|
$52,182
|
$16,162
|
Income from
operations
|
$3,597
|
$2,215
|
$24,302
|
$4,990
|
Net income
(loss)
|
$912
|
$(78)
|
$13,714
|
$311
|
Earnings (loss) per
basic share
|
$0.03
|
$(0.00)
|
$0.45
|
$0.01
|
EBITDA1
|
$5,401
|
$3,495
|
$29,332
|
$9,368
|
Outlook
Mr. Day continued, "Limited supplies across the industry,
unpredictable weather as farmers plant crops for next year and the
war in Ukraine are likely to cause
more volatility and high prices for the products we trade and
merchandize. Ceres is well positioned from an infrastructure and
talent perspective to capitalize on opportunities created from this
environment, and we expect to continue performing well financially
in the fourth quarter and into next fiscal year."
"Our plans for building a canola processing facility in
Northgate, Saskatchewan, remain on
track. We continue to advance on the design and engineering work
needed to clarify total project cost and bring in the remaining
capital needed to fund the project."
Conference Call Details
Management of Ceres will host a conference call today,
May 11, 2022, at 9:00 a.m. ET. All interested parties can
join the conference call by dialing 1-866-575-6539 or 647-484-0478.
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/CeresQ32022. 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 and its subsidiaries 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 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% 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, 2022. 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.