It appears that earning beat the estimate by 8 cents.
WINNIPEG, MB, Nov. 13, 2013 /CNW/ - Legumex Walker Inc. (TSX: LWP) (the "Company") today reported its financial results for the third quarter and year-to-date (nine-month) period ended September 30, 2013. All figures are in Canadian dollars unless otherwise stated.
Highlights for the Third Quarter (all comparative metrics are relative to the third quarter ended September 30, 2012, unless otherwise stated):
- Oilseed Processing (Canola) Segment:
- Based on 16,800 tonnes sold in September, Pacific Coast Canola (PCC) generated EBITDA(1) of US $730,000, and used modest cash flow from operations(1) of US $399,000.
- Completed commissioning of the PCC facility in July 2013;
- Continued to ramp up towards full commercial production, crushing and selling 33,300 tonnes of canola seed and generating$21.6 million in revenue;
- Crushed 21,000 tonnes in September or the equivalent of approximately 66% of capacity;
- Adjusted gross profit(1) for the third quarter 2013 was a small loss of $65,000, as the PCC facility generated sufficient crush margin to almost fully recoup plant costs.
- Special Crops Segment:
- Revenue increased 37% to $77.2 million on a 23% volume increase to 83,900 tonnes;
- Adjusted gross profit(1) increased 83% to $5.7 million from $3.1 million due to higher commodity margins and volumes shipped, partially offset by higher plant processing costs;
- EBITDA(1) increased 462% to $2.4 million from $434,000;
- Completed the addition of a new processing plant in Dalian, China;
- Consolidated:
- Consolidated revenue for the third quarter 2013 increased 75% to $98.8 million from $56.5 million;
- Adjusted gross profit(1) for the third quarter 2013 increased 81% to $5.6 million compared with $3.1 million.
- Selling and administrative expenses for the third quarter 2013 were stable at $5.8 million compared with $5.6 million.
- Loss before interest, taxes depreciation and amortization(1) improved to $167,000 from $2.0 million, with the loss for the third quarter of 2013 being primarily attributable to final commissioning and initial commercialization of the PCC facility; and,
"Pacific Coast Canola is turning the corner towards positive cash flow generation, essentially breaking even in the month of September with 21,000 tonnes crushed," said Joel Horn, President and Chief Executive Officer. "The facility continues to operate as designed and our customers continue to be very pleased with the quality of our oil and meal, including our non-GMO oil, for which we have now received verification. We are regularly receiving product certifications from new customers, which include some of the largest food processors in the country, our book of business is building well and demand for our products bodes well as we push to full production. To this end, we are enhancing our logistics capabilities and expanding our local customer base, and continue to drive towards our next major milestone."
Mr. Horn continued, "Our Special Crops segment delivered another quarter of solid performance, including generating significantly higher cash flow from operations over the same period last year. Tonnage, revenue, gross margin and EBITDA(1) all grew meaningfully compared to the third quarter of last year. The ramp up at PCC and our continuing progress on efficiencies, utilization and managing operating costs across our entire organization position us well for the fourth quarter and into next year and beyond as we fully realize the value of our investments and efforts."
Highlights for the Year-to-Date (all comparative metrics are relative to the year-to-date ended September 30, 2012)
- Oilseed Processing (Canola) Segment
- Revenue for the Oilseed Processing segment for the first nine months of 2013 was $47.1 million.
- Adjusted gross loss for the first nine months of 2013 was $6.8 million.
- Loss before interest, taxes depreciation and amortization for the first nine months of 2013 was $9.4 million.
- Special Crops Segment:
- Revenue increased 32% to $251.1 million on a 24% increase in tonnes shipped to 285,700;
- Adjusted gross profit1 increased 34% to $20.2 million from $15.1 million;
- EBITDA1 increased 36% to $11.4 million from $8.4 million; and
- Cash flow provided by operations1 of $8.0 million increased 120% from $3.6 million.
- Consolidated:
- Consolidated revenue for the first nine months of 2013 increased 56% to $298.2 million from $190.8 million for the first nine months of 2012.
- Loss before interest, taxes depreciation and amortization1 of $3.2 million compared with EBITDA(1) of $2.4 million, including a $9.4 million loss before interest, taxes and depreciation related to commissioning and commercialization of the PCC facility; and,
- Cash flow provided by operations was $2.9 million compared with cash flow used in operations in 2012 of $946,000 million, after excluding cash flow used in operations1 by the PCC facility during its commissioning and commercialization of $13.3 million.
Highlights Subsequent to Third Quarter End
- The PCC facility's non-GMO canola oil received Non-GMO Project Verification and the facility crushed and sold non-GMO canola oil; and,
- PCC also took delivery of its first unit train of canola seed, which provides access to significantly lower unit train freight cost, and successfully unloaded the train within specifications.
Net loss attributable to shareholders for the third quarter of 2013 improved to $3.8 million, or $0.23 loss per share, from a net loss attributable to shareholders of $5.5 million, or $0.40 loss per share, for the third quarter of 2012. The loss attributable to shareholders for the third quarter of 2013 includes a loss of $3.6 million, or $0.22 loss per share, from the commissioning and commercialization of the PCC facility.
1Non-GAAP Measures