Rogers Sugar Inc. reported unaudited consolidated earnings and production results for the first quarter ended December 27, 2014. For the period, the company reported volume was 152,608 metric tonnes, as opposed to 162,258 metric tonnes in the comparable quarter of last year, a decrease of approximately 9,700 metric tonnes. Industrial volume was lower by approximately 4,100 metric tonnes due to timing in deliveries. Liquid volume also decreased by approximately 3,600 metric tonnes.

For the period, the company reported adjusted EBIT of $17.7 million was $0.2 million lower when compared to the same quarter of last year. The higher adjusted gross margin was offset by an increase in administrative costs mainly due to higher consultant fees associated with the process improvement review of the Montreal refinery. Free cash flow was $1.2 million higher than the comparable quarter in fiscal 2014, due mostly to lower income taxes paid, partially offset by higher capital expenditures and higher interest paid. Revenues were $128.726 million against $136.876 million a year ago. Earnings before interest and provision for income taxes was $15.76 million against $19.425 million a year ago. Net earnings were $9.415 million or $0.10 basic per share against $12.516 million or $0.13 basic per share a year ago. Adjusted net earnings were $10.804 million or $0.11 basic per share against $11.403 million or $0.12 per share a year ago. Revenues for the quarter were $8.2 million lower than the previous year's comparable quarter due to a lower level of sales achieved during the current quarter, combined with an average lower value of raw sugar in fiscal 2015. Cash flow used in operating activities was $7.969 million against cash flow from operating activities of $3.454 million a year ago. The negative variation of $11.5 million is mostly explained by a higher non-cash working capital variation of negative $25.4 million compared to negative $8.7 million in fiscal 2014 due mainly to a significant year-over-year variation in trade and other receivables, inventories and trade and other payables. Capital expenditures were higher by $0.4 million in the first quarter of 2015 due timing in spending on capital projects. Free cash flow was $14.835 million against $13.595 million a year ago. Free cash flow was $1.2 million higher than the comparable quarter in fiscal 2014 mostly due to lower income taxes paid related to timing, somewhat offset by higher capital expenditures and higher interest paid.

For fiscal 2015, total sales volume is expected to be slightly lower as compared to fiscal 2014.