Rogers Sugar Inc T.RSI

Results are not good

[DeanEdmonton]

First Quarter 2021 Consolidated Highlights (unaudited)	Q1 2021	Q1 2020	Change
Financial ($000s, except per share and change %)
Revenues	223,840	209,316	7	%
Adjusted Gross Margin (1)	36,452	36,526	0	%
Adjusted EBITDA (1)	27,647	30,227	(9	%)
Free cash flow - trailing 12 months (1)	33,676	34,878	(3	%)
Net earnings	13,773	15,964	(14	%)
Per share (basic)	0.13	0.15	(13	%)
Per share (diluted)	0.13	0.14	(7	%)
Adjusted net earnings (1)	12,248	14,098	(13	%)
Per share (basic)	0.12	0.13	(8	%)
Dividends per share	0.09	0.09	0	%
Volumes
Sugar (metric tonnes)	190,440	188,379	1	%
Maple syrup (thousand pounds)	14,892	12,792	16	%

Gross Revenue is up but margin as a percentage of sales is way down, AGAIN. This measure has been slipping for 2 years now. EBITA, net income etc are also still falling. I have said for quite a while that this company needs new management. The company is larger than the people running it are capable of handling. There is a never ending stream of excuses from them as to why results are not improving but none of the actions they talk about change the downward trend.

[boomtimeer]

Hi Dean,,,agreed,,,they missed by a few cents,,,,,analysts,,,the manipulators that they are,,,,actually raised the bar far too high at 16 cents for the quarter per share.....just because the previous quarter was an anomaly beat......everyone stayed home stuffing their faces in sweets and booze for at least 5 months....lol...........trudeau paid for it all....andddd,,,,that is why the National debt

[DeanEdmonton]

boomtimeer I am not referring to missing analysts estimates, I am talking about the companies actual performance quarter over quarter. For just a simple measure take a look back over 4 years and compare the gross margin on sales and how much it has dropped. In Sept 2016 it was 22.7%, Sept 2019 it was 15.4%, Sept 2020 it is 14.7%. Yes sales are way up, but that is the only thing trending positive

[boomtimeer]

good day Dean,,,,,,Maple division aquisition was a bad move,initially,,,imho, ,,,yer thoughts ,,,was Maple a good move then and how about today?,,,,.i love the stuff,,,but at what price?,,,,,...bt RSI.TO - Rogers Sugar Inc Key Metrics | Reuters it's complicated.....by the way,,,,,have they ever cut the div. in the past 20 years?

[DeanEdmonton]

BT- there can be little doubt it was a VERY bad idea. They massively over paid for what they got. They have already taken a 50 million writedown on the original purchase price, they are still having problems getting volume where they want it and the margins are still poor. With the right senior leadership in Rogers, I think they could turn things around but like I have said quite a few times

[schocor]

Appeciate your insight dean edmonton.  rogers has a new coo and a new vp of finance. When you said complication was above management, did you mean the new management or the old? in my experience with management/operational changes, the wheels start to come off after 8 months (just before your third quarter). I have  followed this company for years, and even with the good beet

[boomtimeer]

                 Hello Shocr,,,,,, Dean,,,both of you,,,thks. for the feed-back ,,,,,pros and cons,,,,,still do believe the 5 analysts got carried way with their estimates ,,,,16 cents was far too high imo,,,,one real good quarter doesn;t constitute a real trend                          &

[schocor]

Rogers has a de facto monopoly on a consumer stable in canada. Whitegold!! consumption grows with population.  This company is all about operational efficiencies  and financial mgmt.  A good beet harvest should impact operational eficiencies vis a vis last year (.15/share?). The financial anchor that is/was the syrup acquisition appears to be a bit lighter than last quarter. I

[boomtimeer]

Hi Shocor,,,,,,noticing signs of perhaps a near-term bottom,,,,but, i suppose it could go back into the 4s during a market correction.............profitable company with a fat div,,,pay daddy while he waits...:)....good luck,,,buy low,,sell high.....bt Rogers Sugar Inc. (RSI) | Stock Price | TMX Money Stock Technical Analysis: Analysis of RSI.C based on EMA, MACD, RSI, Stochastic, Fibonacci

[LawrenceKnight]

That's what I'm waiting for. This company has limited growth opportunities so picking your entry is very important. Dividend is reasonably safe, so anywhere under $5 is not bad.

[DeanEdmonton]

You could not be more wrong. Not only is Rogers a teeny tiny player in the sugar market, they don't supply anywhere near even Canada's needs. Most of our sugar is imported. Rogers is strictly a price taker and the competition in the sugar market doesn't even cosnider them as a factor. This is why their gross margin has been slipping and continues to do so. Buy Rogers if you want but do

[DeanEdmonton]

Another from a couple of years ago. As you can see, poor performance has been a pattern the last number of years. Management makes endless promises and positive forecasts but never deliver. There commentary does not match the posted numbers. I could go back a lot further. Like I have said, a good trading stock, buy in the high 4 low 5 and sell over 6. NOT a buy and hold candidate.