Rogers Sugar (RSI) Q3 2024 earnings summary

Executive summary

• Q3 2024 was the most profitable third quarter in company history, with record adjusted EBITDA of $34.5M, up $10.7M year-over-year, driven by strong Sugar and Maple segment performance and favorable market trends.

• Revenues rose to $309.1M in Q3 2024, a $46.8M increase from Q3 2023, mainly due to higher pricing in Sugar and Maple segments.

• The company is executing its Rogers Refined plan, focusing on modernizing sugar operations, driving maple profitability, maintaining a strong balance sheet, and advancing ESG initiatives.

• Adjusted net earnings per share reached $0.13, up $0.05 from the prior year quarter.

• Free cash flow for the trailing twelve months was $74.5M, up $26.7M year-over-year.

Financial highlights

• Consolidated revenues reached $309.1M, up nearly 18% year-over-year, with double-digit growth in both sugar and maple.

• Q3 2024 adjusted EBITDA was $34.5M, a 45% increase from last year; year-to-date adjusted EBITDA surpassed $100M for the first time.

• Adjusted net earnings for Q3 were $16.3M ($0.13 per share), up from $8.7M ($0.08 per share) last year.

• Free cash flow for the twelve months ended June 2024 was $74.5M, up more than 50% year-over-year.

• Dividend of $0.09 per share declared for Q3 2024.

Outlook and guidance

• Expecting another record year in fiscal 2024, with strong contributions from both segments and continued growth in adjusted EBITDA.

• Sugar segment adjusted EBITDA is projected to increase despite earlier labor disruptions and a slight decline in domestic sales.

• Maple segment is expected to maintain strong results, benefiting from a healthy crop, price increases, automation, and operational improvements.

• Margins in sugar are expected to stabilize at current strong levels, with future variation driven by customer mix.

• Regular capital spending for 2024 estimated at $28M, excluding LEAP Project expenditures.