Ceres Global Ag Reports Financial Results For Fourth Quarter 2016
TORONTO, ON, (May 11, 2016) – Ceres Global Ag Corp. (TSX: CRP) (“Ceres” or the “Corporation”) today announced its financial and operational results for the three- and 12-month periods ended March 31, 2016. All amounts are in Canadian currency unless otherwise noted.
“Our Q4 results were marked by modest gains to each of our key financial and operating metrics, including gross profit, net income, number of bushels handled and number of rail cars transloaded,” said Mr. Patrick Bracken, CEO of Ceres Global Ag. “This progress is encouraging, and suggests that our strategy of combining grain handling, storage and trading activities with a world-class logistics hub is gaining traction. With the buildout of the grain facility at our Northgate Commodities Logistics Hub now complete, we expect our recent momentum to continue as we head towards the start of the planting season.”
Financial and Operational Highlights for Q4 FY2016 compared to Q4 FY2015
- Generated revenue of $119.4 million, up 119%.
- Gross profit was $3.9 million compared to a gross loss of $208 thousand.
- Net income was $1.2 million, up from a net loss of $3.5 million.
- Earnings per share were $0.04, up from a loss per share of $0.13.
- Completed the buildout of the grain handling and shipping facility at the Corporation’s flagship Northgate Commodities Logistics Hub.
- Loaded 774 railcars, up 87%, of grains and/or oilseeds out of Northgate, for markets in the U.S., Latin America and Asia.
- Renewed and extended the Corporation’s agreement with Elbow River Marketing to unload liquefied petroleum gas.
- Loaded 153 railcars of propane on behalf of a third-party customer at Northgate.
- Began construction of the fertilizer storage warehouse in support of the agreement signed with Koch Fertilizer Canada, ULC to handle and store fertilizer at Northgate. The availability of fertilizer products at Northgate will make it possible for grain suppliers to improve their transportation costs by back-hauling agriculture inputs to points of origination.
Highlights subsequent to Quarter End
Announced that it will put three grain storage elevators located in Buffalo (Lakeport), New York, Minneapolis (Calumet) and Duluth (Lakeport), Minnesota out of service as part of a strategic initiative designed to reduce operating costs and better align operations with the Corporation’s long-term plans and focus. The grain elevator closures will take effect with the start of 2016 crop season in July. Ceres expects that the closures will result in an annual reduction of operating expenses of US$2 to $2.5 million. Ceres’ Duluth storage facility, which has a capacity of 12.2 million bushels, will remain open and be the primary focus of operations in the area.