Investor Alert

press release

Nov. 25, 2021, 7:00 a.m. EST

Roger Sugar Reports Fourth Quarter 2021 Results, Solid Performance from the Maple and Sugar Segments, Driven by Steady Demand from Customers

MONTREAL, Nov 25, 2021 (GLOBE NEWSWIRE via COMTEX) -- MONTREAL, Nov. 25, 2021 (GLOBE NEWSWIRE) -- Rogers Sugar Inc.'s ("RSI", "our," "we", "us" or "Rogers") /zigman2/quotes/208987350/delayed CA:RSI +0.17% today reported fourth quarter fiscal 2021 results with consolidated adjusted EBITDA of $24.8 million and $91.0 million for the current quarter and the year, respectively.

"We are pleased with the results achieved in the fourth quarter in both of our business segments, as we met our volume targets with improved overall sales margins, said Mike Walton, President and Chief Executive Officer of Rogers and Lantic Inc. "In 2021, our team delivered strong financial results as we successfully navigated through unfavorable crop conditions in Alberta and the continued impacts of a global pandemic on customer demand and supply chain. This performance is a testament to the collaboration and dedication of our employees and of our operational flexibility to ensure customer needs were met."

"Over the next year, we anticipate improved financial performance for both of our business segments, supported by normal operating conditions in Alberta and a return to a more traditional and profitable sales mix. This will allow us to continue to create value for our shareholders."

Fourth Quarter 2021 Consolidated Highlights
Q4 2021 [(] [2] [)] Q4 2020 [(] [2] [)] FY 2021 [(] [3] [)] FY 2020 [(] [3] [)]
Financials ($000s)
Revenues 243,231 246,212 893,931 860,801
Adjusted gross margin [(1)] 31,020 40,065 120,811 126,118
Adjusted EBITDA [(1)] 24,786 31,231 91,022 92,259
Net earnings 16,140 12,952 47,527 35,419
per share (basic) 0.16 0.13 0.46 0.34
per share (diluted) 0.15 0.12 0.44 0.34
Adjusted net earnings [(1)] 9,620 14,551 33,866 35,245
Adjusted net earnings per share (basic) [(1)] 0.09 0.14 0.33 0.34
Trailing twelve months free cash flow [(1)] 45,505 46,537 45,505 46,537
Dividends per share 0.09 0.09 0.36 0.36
Sugar (metric tonnes) 214,753 225,396 779,505 761,055
Maple Syrup (thousand pounds) 11,678 13,181 52,255 53,180

(1) See "Cautionary statement on Non-GAAP Measures" section of this press release for definition and reconciliation to GAAP measures.
(2) The fourth quarter of fiscal 2021 consists of 13 weeks and the fourth quarter of 2020 consists of 14 weeks
(3) Fiscal 2021 consists of 52 weeks and fiscal 2020 consists of 53 weeks
  • The fourth quarter and the 2021 fiscal year consist of 13 weeks and 52 weeks respectively, while the comparative periods for last fiscal year consisted of 14 weeks and 53 weeks respectively. The impact of the additional week of fiscal 2020 on volume for the Sugar segment and the Maple Segment is approximately 15,000 metric tonnes of sugar and 1 million lbs of maple syrup;

  • Consolidated adjusted EBITDA for the fourth quarter of 2021 was $24.8 million, down $6.4 million from the same quarter last year, driven by lower adjusted EBITDA in the Sugar segment including approximately $6.0 million of non-recurring variances, partially offset by higher adjusted EBITDA in the Maple segment;

  • Adjusted EBITDA for the 2021 fiscal year was $91.0 million, down 1.3% from the same period in 2020, largely as a result of lower adjusted EBITDA in the Sugar segment, partially offset by higher adjusted EBITDA in the Maple segment;

  • Sales volume in the Sugar segment decreased by 4.7% to 214,753 metric tonnes in the fourth quarter of 2021, including the 2020 extra week impact of approximately 15,000 metric tonnes making volume higher than the same quarter last year. For the whole 2021 fiscal year, volume was 779,505, an increase of 2.4% compared to 2020, despite one less week in 2021;

  • Adjusted EBITDA in the Maple segment was $4.2 million in the fourth quarter, an increase of $0.9 million or 27.8% from the same quarter last year as a result of lower operating costs, lower administration and selling expenses as well as lower distribution costs;

  • Free cash flow for the trailing 12 months ended October 2, 2021 was $45.5 million, slightly lower than the prior year balance of $46.5 million;

  • In the fourth quarter of 2021, we distributed $0.09 per share to our shareholders for a total amount of $9.3 million;

  • On August 6, 2021, the Canadian International Trade Tribunal issued a decision to pursue its order against dumped and subsidized sugar from the United States, European Union, and the United Kingdom. Anti-dumping and countervailing duties will continue to be applied on imported sugar from these regions. The applicable future tariff for anti-dumping and countervailing duties is currently under review by the Canadian Boarder Service Agency. A decision is expected later in 2022;

  • On August 23, 2021, we announced that John Holliday, President and CEO of RSI and Lantic, would retire. Mike Walton, previously Chief Operating Officer of Lantic and President of TMTC, has been appointed President and CEO of RSI and Lantic effective October 4, 2021, with John Holliday staying with the organization in an advisory role for the next few months;

  • On October 27, 2021, after several months of negotiations, we reached an agreement for the renewal of the collective labour agreement with the main union at our Montreal facility for a period of five years;

  • On November 23, 2021, we extended the maturity of our revolving credit facility to November 23, 2026 and we amended the revolving credit facility by reducing the available credit by $65 million, from a total of $265 million to $200 million; and

  • On November 24, 2021, the Board of Directors declared a quarterly dividend of $0.09 per share, payable on or before February 1, 2022.


Fourth Quarter 2021 Sugar Highlights
Q4 2021 [(] [2] [)] Q4 2020 [(] [2] [)] FY 2021 [(] [3] [)] FY 2020 [(] [3] [)]
Financials ($000s)
Revenues 191,462 188,666 668,118 631,263
Adjusted gross margin [(1)] 26,020 35,503 100,223 106,212
Per metric tonne ($/ mt) [ (1)] 121.16 157.51 128.57 139.56
Administration and selling expenses 6,591 7,803 27,793 27,959
Distribution costs 3,531 4,197 15,970 16,266
Adjusted EBITDA [(1)] 20,634 27,982 74,640 78,877
Volumes (metric tonnes)
Total volumes 214,753 225,396 779,505 761,055

(1) See "Cautionary statement on Non-GAAP Measures" section of this press release for definition and reconciliation to GAAP measures.
(2) The fourth quarter of fiscal 2021 consists of 13 weeks and the fourth quarter of 2020 consists of 14 weeks
(3) Fiscal 2021 consists of 52 weeks and fiscal 2020 consists of 53 weeks

In the fourth quarter, revenue increased by 1.5% compared to the same period last year driven by increased pricing, despite having one less week of operation.

Sugar volume decreased by 4.7% or 10,643 metric tonnes in the fourth quarter compared to the same quarter last year mainly due to one less week of operation in the current quarter; the extra week represents approximately 15,000 metric tonnes. Sales demand in the industrial and consumer channels were lower than last year's fourth quarter, which was partly offset by an increase in the liquid and export volumes during the same period.

  • The reduction in industrial volume is mainly due to last year's additional week of operation as we continue to see firm industrial demand. The decrease in consumer volume is also attributable in part to the additional week of operation in fiscal 2020 and timing variances of purchases from retailers who had higher inventory of packed sugar in 2021. These reductions in volumes were partly offset by an increase in liquid volume.

  • During the current quarter, export volume increased by 1,459 metric tonnes, compared to the fourth quarter 2020 despite having one less week of operation. The increase in export volume was largely due to favourable market dynamics within the United States.

Adjusted gross margin decreased by $9.5 million in the current quarter compared to the same quarter last year. The unfavourable variance was mainly due to a $3.1 million, one-time gain recorded in the fourth quarter of 2020 related to prior period settlement of carbon credit claims, a $2.9 million non-recurring expenditure associated with future pension liabilities included in the Montreal recently negotiated collective agreement, a $2.7 million reduction in sugar sales margin attributable to lower volume and unfavourable sales mix, specifically related to the absence of US refined tariff-rate quota ("TRQ") in 2020, and higher production costs of $0.8 million mainly related to our operations in Taber.

On a per unit basis, adjusted gross margin for the fourth quarter was $121.16 per metric tonne, lower than the same quarter last year by $36.35 per metric tonne. The decrease was due mainly to non-recurring items explained above. Excluding the impact of such items the variance in adjusted gross margin on a per unit basis would have been unfavourable by $9.10 per metric tonne mainly due to lower sugar sales margin and higher production costs.

Adjusted EBITDA for the fourth quarter decreased by $7.3 million compared to the same period last year, largely as a result of lower adjusted gross margin, offset by lower administration and selling expenses as well as lower distribution costs. During the quarter, administration and selling expenses were lower by $1.2 million compared to the same quarter last year due mainly to a decrease in COVID-19 related health and safety costs and lower compensation cost and related employee benefits. Distribution costs decreased by $0.7 million as costs associated with reconfiguring our supply chain to serve our customers were lower compared to the same quarter last year due mainly to improved production volume from our Taber facility.


Fourth Quarter 2021 Maple Highlights
Q4 2021 [(] [2] [)] Q4 2020 [(] [2] [)] FY 2021 [(] [3] [)] FY 2020 [(] [3] [)]
Financials ($000s)
Revenues 51,769 57,546 225,813 229,538
Adjusted gross margin [(1)] 5,000 4,562 20,588 19,906
As a percentage of revenues (%) [ (1)] 9.7% 7.9% 9.1% 8.7%
Administration and selling expenses 2,084 2,589 9,162 10,981
Distribution costs 458 472 2,322 2,983
Adjusted EBITDA [(1)] 4,152 3,249 16,382 13,382
Volumes (thousand pounds)
Total volumes 11,678 13,181 52,255 53,180

(1) See "Cautionary statement on Non-GAAP Measures" section of this press release for definition and reconciliation to GAAP measures.
(2) The fourth quarter of fiscal 2021 consists of 13 weeks and the fourth quarter of 2020 consists of 14 weeks
(3) Fiscal 2021 consists of 52 weeks and fiscal 2020 consists of 53 weeks

Revenues for the current quarter were $5.8 million lower than the prior comparable period due to a reduction in sales volume. The reduction was mainly attributable to higher volume in the prior comparable period related to increased demand associated with the COVID-19 pandemic.

Adjusted gross margin for the current quarter was $0.4 million higher than the comparable period last year, driven by a combination of higher sales margin from increased pricing and lower costs from improved operational efficiency. Improved profitability was also reflected in our adjusted gross margin percentage, increasing by 180 basis points to 9.7% in the current quarter, up from 7.9% in the same quarter last year.

Adjusted EBITDA for the current quarter was $0.9 million compared to the same period last year, mainly driven by higher adjusted gross margin and lower administration and selling expenses. During the quarter, administration and selling expenses were lower by $0.5 million compared to the same quarter last year due mainly to lower sales and marketing expenses and lower employee compensation and benefits costs.


The health and safety of our employees remains our top priority. We are closely following all COVID-19 public health authority recommendations and have enhanced safety protocols in place. Since the beginning of the COVID-19 pandemic, our plants have operated without significant disruption. The uncertainty and increased demand volatility continue to make it difficult to estimate the impact on future sale volumes, operations, and financial results. We are closely monitoring the situation and will continue to adapt quickly to the changing circumstances.

In fiscal 2021, our financial results for our Sugar Segment were negatively impacted by issues, we anticipate will not occur in 2022. Overall, we believe our adjusted EBITDA of 2021 was negatively impacted by over $10.0 million in relation with such issues. This includes weather-related unfavourable impacts with our sugar beets in Alberta, the costs associated with the recognition of prior period past service charge related to the new Montreal refinery collective bargaining agreement, and the lingering effects of COVID-19 related expenditures for preventive measures and logistics.

Recognizing these unusual conditions in fiscal 2021, we expect, for 2022, improved financial performance across both of our business segments, supported by strong demand for sugar and maple syrup and improved margins in both sectors.


We expect the sugar segment to perform well in fiscal 2022. The underlying demand remains strong across all our customer segments in our domestic market while we are anticipating a reduction in the export market. We also anticipate a return to normal for our beet sugar operations in Taber for 2022. Thus far, the 2021 harvest season has delivered the expected volume of sugar beets. The processing of the sugar beets is currently going according to schedule and is expected to be completed by the end of February.

We expect sales volume for 2022 to reach approximately 770,000 metric tonnes, representing a reduction of 9,500 metric tonnes compared to 2021. While we anticipate the domestic volume to grow steadily at 2%, exports opportunities will not be as high as in 2021, resulting in a reduction in volume. Overall, we see the following volumes variances for our customer segments:

  • Industrial, which is our largest segment, is expected to grow at a modest 1% as demand for sugar containing products remains steady both in Canada and the US.

  • Liquid volume is expected to deliver growth of approximately 2% to 3% driven by continued demand from existing customers as well as new customer acquisitions.

  • We also expect our consumer business to be up 2% to 3%, which is more in line with normalized growth that we experienced pre-covid.

  • We anticipate to sell less into export markets in 2022 since we do not foresee the US issuing a TRQ and the market dynamics for high-tier sales are not as favourable.

Despite the reduction of total volume, favourable price mix will contribute to improved profitability as compared to 2021.

Maintenance programs for the Montreal and Vancouver operating facilities are expected to follow the trend of previous years and should provide for marginal increase in operating costs. For the Taber facility, a return to normal and an improvement in the quality of the sugar beet over 2021 is expected to yield improvement in operating costs.

Spending on capital projects is also expected to be similar to recent periods. For fiscal 2022, we anticipate spending approximately $25.0 million on various capital projects, with approximately a quarter allocated to return-on-investment projects.


For fiscal 2022, we expect the Maple business segment to outperform the 2021 results. Our outlook is mainly based on expected improvement to sales margins, a trend established in 2021 and driven by successful contract negotiations with new and existing customers.

Competitive pressures in the Maple industry, along with market volatility from the COVID-19 pandemic has impacted the pace of margin improvement in 2021. For 2022, we anticipate an increase in margin from new agreements negotiated with new and existing customers and volume to remain stable at approximately 52 million lbs.

In addition, we expect to continue to drive lower operating costs through ongoing optimization at our manufacturing facilities and efficiency improvements provided by the investments made in our facilities at Granby and Degelis.

Capital investments have been reduced significantly for the Maple segment since 2021, considering the expenditures incurred over the past few years improved and increased the production capacity. We continue to expect steady growth in demand for Maple-related products although we expect a tempering from the increase seen during the period of COVID-19.

See Cautionary statement on forward-looking information and NON-GAAP measure sections.

A full copy of Rogers fourth quarter 2021, including management's discussion and analysis and audited consolidated financial statements, can be found at www.LanticRogers.com .

Conference Call and Webcast

Rogers will host a conference call to discuss its fourth quarter fiscal 2021 results on November 25, 2021 starting at 8:00a.m. ET. To participate, please dial 1-888-400-2425. A recording of the conference call will be accessible shortly after the conference, by dialing 1-800-770-2030, access code 9031006#. This recording will be available until December 5, 2021. A live audio webcast of the conference call will also be available via www.LanticRogers.com .

About Rogers Sugar

Rogers is a corporation established under the laws of Canada. The Corporation holds all of the common shares of Lantic and its administrative office is in Montréal, Québec. Lantic operates cane sugar refineries in Montreal, Québec and Vancouver, British Columbia, as well as the only Canadian sugar beet processing facility in Taber, Alberta. Lantic also operate a custom blending and packaging operation and distribution center in Toronto, Ontario. Lantic's sugar products are marketed under the "Lantic" trademark in Eastern Canada, and the "Rogers" trademark in Western Canada and include granulated, icing, cube, yellow and brown sugars, liquid sugars and specialty syrups. Lantic owns all of the common shares of TMTC and its head office is headquartered in Montréal, Québec. TMTC operates bottling plants in Granby, Dégelis and in St-Honore-de-Shenley, Québec and in Websterville, Vermont. TMTC's products include maple syrup and derived maple syrup products supplied under retail private label brands in over fifty countries and also sold under various brand names, such as TMTC, Uncle Luke's, Great Northern, Decacer and Highland Sugarworks.

For more information about Rogers please visit our website at www.LanticRogers.com .

Cautionary Statement Regarding forward-looking information

This report contains Statements or information that are or may be "forward-looking statements" or "forward-looking information" within the meaning of applicable Canadian Securities laws. Forward-looking statements may include, without limitation, statements and information which reflect the current expectations of RSI with respect to future events and performance. Wherever used, the words "may," "will," "should," "anticipate," "intend," "assume," "expect," "plan," "believe," "estimate," and similar expressions and the negative of such expressions, identify forward-looking statements.

Although this is not an exhaustive list, RSI cautions investors that statements concerning the following subjects are, or are likely to be, forward-looking statements:

  • future prices of raw sugar

  • natural gas costs

  • the opening of special refined sugar quotas in the United States ("U.S.")

  • beet production forecasts

  • growth of the maple syrup industry and the refined sugar industry

  • the status of labour contracts and negotiations

  • the level of future dividends

  • the status of government regulations and investigations

  • the impact of the COVID-19 pandemic on RSI and its operations.

Forward-looking statements are based on estimates and assumptions made by Rogers in light of its experience and perception of historical trends, current conditions and expected future developments, as well as other factors that we believe are appropriate and reasonable in the circumstances, including with respect to the continuity of its operations despite the COVID-19 pandemic, but there can be no assurance that such estimates and assumptions will prove to be correct. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Actual performance or results could differ materially from those reflected in the forward-looking statements, historical results or current expectations. Readers should also refer to the section "Risks and Uncertainties" of the current quarter MD&A for additional information on risk factors and other events that are not within our control. These risks are also referred to in Rogers Annual Information Form in the "Risk Factors" section.

Although we believe that the expectations and assumptions on which forward-looking information is based are reasonable under the current circumstances, readers are cautioned not to rely unduly on this forward-looking information as no assurance can be given that it will prove to be correct. Forward-looking information contained herein is made as at the date of this press release and Rogers does not undertake any obligation to update or revise any forward-looking information, whether as a result of events or circumstances occurring after the date hereof, unless so required by law.

Cautionary Statement Regarding non-GAAP measures

In analyzing results, we supplement the use of financial measures that are calculated and presented in accordance with IFRS with a number of non-GAAP financial measures. A non-GAAP financial measure is a numerical measure of a company's performance, financial position or cash flow that excludes (includes) amounts, or is subject to adjustments that have the effect of excluding (including) amounts, that are included (excluded) in most directly comparable measures calculated and presented in accordance with IFRS. Non-GAAP financial measures are not standardized; therefore, it may not be possible to compare these financial measures with the non-GAAP financial measures of other companies having the same or similar businesses. We strongly encourage investors to review the audited consolidated financial statements and publicly filed reports in their entirety, and not to rely on any single financial measure.

We use these non-GAAP financial measures in addition to, and in conjunction with, results presented in accordance with IFRS. These non-GAAP financial measures reflect an additional way of viewing aspects of the operations that, when viewed with the IFRS results and the accompanying reconciliations to corresponding IFRS financial measures, may provide a more complete understanding of factors and trends affecting our business. See "Non-GAAP measures" section at the end of the MD&A for the current quarter for additional information.

For further information
Mr. Jean-Sebastien Couillard
Vice President of Finance, Chief Financial Officer and Corporate Secretary
Phone: (514) 940-4350
Email: jscouillard@lantic.ca


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