Mr. Robert Day reports
CERES GLOBAL AG REPORTS FINANCIAL RESULTS FOR Q1 FY2020
Ceres Global Ag Corp. has released its financial and operating results for the quarter ended Sept. 30, 2019. All amounts are in U.S. currency unless otherwise noted.
"Q1 2020 marked a strong start to the 2020 fiscal year as we met both financial and growth-based targets for the quarter, demonstrating continued progress from the turnaround strategy we have been pursuing for the past several years," said Robert Day, President and Chief Executive Officer of Ceres. "In addition to strong financial performance from our core business, the team made solid progress integrating the acquisition of Delmar Commodities and in collaborating with Steel Reef to ensure a smooth start to the Gateway Energy Terminal joint venture."
"While market conditions have been challenging, due in part to rain and snow through most of harvest and continued uncertainty around international trade tariffs, efforts made around talent development and process improvement over the past several years have prepared us for this type of environment," Mr. Day continued. "This is allowing us to consistently deliver on our customers' needs and be true to our vision to be the most trusted and valued partner with quality-conscious customers."
Summary Financial and Operational Results
(in thousands of USD except per share )
3-Months Ended September 30, 2019 3-Months Ended September 30, 2018
Revenue $126,592 $90,241
Gross profit $6,460 $5,084
Income from operations $2,805 $1,317
Net income (loss) $1,758 $(8,514)
Earnings (loss) per basic share $0.06 $(0.30)
EBITDA1 $4,413 $(5,748)
Financial and Operational Highlights for the quarter ended September 30, 2019
Net income for the period was $1.8 million compared to a net loss of $8.5 million for the quarter ended September 30, 2018.
Gross profit increased $1.5 million compared to the first quarter of fiscal year 2019 as a result of solid positioning ahead of challenging harvest weather events.
EBITDA increased $10.1 million compared to the quarter ended September 30, 2018.
Gateway Energy Terminal began operations on July 1, 2019.
Delmar Commodities, Ltd. was acquired effective August 1, 2019 and was accretive to earnings of the Corporation for the quarter.
On September 30, 2019, the Corporation closed a non-brokered private placement equity raise of approximately $10 million through the issuance of common shares.
Mr. Day continued, "While we expect conditions to remain challenging as weather experienced over the harvest period impacts the broader 2019-20 crop year, Ceres positioned itself well for these events and we expect the core business will continue to perform well through Q2 2020 while the Great Lakes and North Mississippi River logistics gateways remain open."
"Meanwhile, we remain committed to our growth, and to adding complementary farmer grain origination assets to our network that will allow us to more competitively originate products directly from farmers," Mr. Day added. "In addition, we are focused on increasing efficiency and adding capacity to recent acquisitions."
Conference Call Details
Ceres will hold a conference call to discuss its first quarter fiscal year 2020 financial and operational results on Thursday, November 14, 2019 at 10:00 a.m. E.S.T.
Robert Day, Ceres' President and CEO, and Kyle Egbert, Ceres' CFO, will co-chair the conference call.
All interested parties can join the conference call by dialing 1-888-231-8191 or 647-427-7450, conference ID: 3999251. Please dial in 15 minutes prior to the call to secure a line. The conference call will be archived for replay until Thursday, November 28, 2019 at midnight E.S.T. To access the archived conference call, please dial 1-855-859-2056 and enter the encore code 3999251.
A live audio webcast of the conference call will be available on-line.
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.
About Ceres Global Ag Corp.
Through its network of commodity logistics centers and team of industry experts, Ceres merchandizes high-quality North American agricultural commodities and value-added products and provides reliable supply chain logistics services to agricultural, energy and industrial customers worldwide.
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