MONTREAL, QUEBEC -- (Marketwire) -- 01/30/13 -- Rogers Sugar Inc. (TSX: RSI)
Message to Shareholders: On behalf of the Board of Directors, I am pleased to present the unaudited condensed consolidated interim financial results of Rogers Sugar Inc. (the "Company") for the three months ended December 29, 2012.
On January 30, 2013, the Board of Directors has authorized and declared a special dividend of 36 cents per share to be paid to Shareholders of record on February 8, 2013, payable on or before February 28, 2013. This special dividend totalling approximately $33.9 million will be financed through the working capital line of credit and available cash. The payment of the special dividend reflects the distribution of a portion of the previously earned but undistributed free cash flow generated over the five fiscal years from October 2007 to September 2012 which totalled approximately $64.7 million.
Volume for the first quarter was 156,415 metric tonnes, as opposed to 172,754 metric tonnes in the comparable quarter of last year, a decrease of approximately 16,300 metric tonnes. Industrial volume was higher by approximately 4,700 metric tonnes due to the gain of additional volume with existing and new customers. Consumer volume was higher by approximately 500 metric tonnes due mainly to timing in customers' retail promotions. Liquid volume also increased by approximately 300 metric tonnes due mainly to timing in some deliveries and increases in deliveries to existing customers. These increases were offset with lower export volume of approximately 21,800 metric tonnes due to sugar sold under a special quota to the U.S in fiscal 2012. A special quota of 136,078 metric tonnes was opened, effective October 3, 2011 by the U.S. Department of Agriculture, of which 25,000 metric tonnes was allocated specifically to Canada and the balance of 111,078 to global suppliers on a first-come, first-served basis. The Company, through its cane refineries, was able to enter approximately 10,000 metric tonnes against the global quota by the time it closed on October 25, 2011. As the sole producer of Canadian origin sugar in Taber Alberta, the Company was able to enter approximately 17,600 metric tonnes by the time that quota closed on November 30, 2011.
With the mark-to-market of all derivative financial instruments and embedded derivatives in non-financial instruments at the end of each reporting period, our accounting income does not represent a complete understanding of factors and trends affecting the business. Consistent with previous reporting, we therefore prepared adjusted gross margin and adjusted earnings results to reflect the performance of the Company during the period without the impact of the mark-to-market of derivative financial instruments and embedded derivatives in non-financial instruments. At the end of the first quarter the accounting results had a mark-to-market gain of $1.1 million before income taxes, which was deducted to arrive at the adjusted results.
For the quarter, adjusted gross margin decreased by approximately $8.2 million, when compared to the same quarter of last year, due in large part to lower export volume. On a per metric tonne basis, adjusted gross margin was $189.02 compared to $218.74 for the first quarter of last year. The decrease in the adjusted gross margin rate of $29.72 is due mainly to the sales mix, as a higher margin rate was realized on export sales under the special quota in the first quarter of fiscal 2012.
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