MONTREAL, QUEBEC -- (Marketwired) -- 05/01/13 -- 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 and six months ended March 30, 2013.
Volume for the second quarter was 150,914 metric tonnes, as opposed to 146,494 metric tonnes in the comparable quarter of last year, an increase of approximately 4,400 metric tonnes. Year-to-date volume of 307,329 metric tonnes is approximately 11,900 metric tonnes lower than last year. For the quarter industrial volume was higher by approximately 8,200 metric tonnes and higher by approximately 12,900 metric tonnes year-to-date. As discussed last year, some industrial volume was lost in calendar 2012, but in large part recovered in calendar 2013, hence the increase in volume for the quarter and year-to-date. Liquid volume was also higher by approximately 300 metric tonnes for the quarter and by approximately 600 metric tonnes year-to-date due to timing in deliveries and slight increases with current customers. Consumer volume was lower by approximately 1,000 metric tonnes for the quarter and lower by 600 metric tonnes year-to-date. The volume variance for the quarter and year-to-date is due mainly to timing in customers' retail promotions. Export volume was lower by approximately 3,100 metric tonnes for the quarter and by approximately 24,900 metric tonnes year-to-date. The decrease in the quarter and year-to-date volume is due mainly to sugar sold under a special quota to the U.S. in fiscal 2012. A special quota of 136,078 metric tonnes 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 second quarter the earnings before interest and income taxes ("EBIT") had a mark-to-market gain of $3.0 million for the quarter and of $4.0 million year-to-date, which was deducted to calculate the adjusted EBIT and gross margin results. The major reasons of this mark-to-market gain are the timing in the settlement of derivative financial instruments and movement in raw sugar values.
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