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MONTREAL, QUEBEC--
Dear Unitholder:
On July 14, 2000, Rogers Sugar Income Fund (the ``Fund'')
distributed $8,508,484 or $.205 per unit to Unitholders of record on
June 30, 2000. The distribution was $.19 interest and $.015 return
of capital for the recipients. Year to date distribution has been
$24,696,108 or $.595 per unit.
The Fund derives its income by way of receipt of interest on the
Notes of Rogers Sugar Ltd. (``Rogers''), and the return of capital
or dividends from Rogers.
In the third quarter of fiscal 2000, Rogers delivered 62,663
metric tonnes of sugar, slightly up from 62,316 in the comparable
quarter of fiscal 1999. Gross margins were $12,068,000, an
improvement of over $800,000 from the same quarter last year. Due to
change in mix of products, the rate per metric tonne of $192.58 is
lower than the previous quarter, as expected, but higher by $13.00
from last year's level. The year to date margin rate per tonne of
$222.00 is $14.00 higher than least year's rate for the comparable
period. The improvement is due mainly to the strong operating
performance of the Taber factory.
The Taber juice processing campaign was completed July 6, 2000.
Total sugar output from Taber was 113,000 metric tonnes, almost 30 %
above last year's level.
Fiscal year 2000 sales are estimated at over 255,000 metric
tonnes, up from a level of 235,000 metric tonnes in 1999.
A total of almost 43,000 acres was planted for next year's beet
campaign. This is less than the Company targeted, but nevertheless,
with historical yields per acre it should derive approximately
125,000 tonnes of refined sugar next year.
Distributable cash flow earned from operations to date is $.607.
The latest distribution of $.205 was made up of $.19 from operations
and a special $.015 distribution from the Taber cash pool. The Taber
cash pool has over $600,000 remaining, which must be fully
distributed by September 30, 2000.
Interim financial statements of Rogers Sugar Income Fund and
Rogers Sugar Ltd. are attached. Certain accounts of fiscal 1999 have
been reclassified to conform with the presentation of fiscal 2000.
FOR THE BOARD OF TRUSTEES
David C. Dingwall, P.C., Q.C.
Chairman
Montreal, Quebec
August 8, 2000
ROGERS SUGAR INCOME FUND Statement of Earnings and Distributable Cash For the three For the nine
months ended months ended
(Unaudited in thousands) June 30 June 30 June 30 June 30
2000 1999 2000 1999
---------------------------------------------------------------------
REVENUE
Interest $8,000 $8,000 $24,001 $24,000
Equity in earnings of Rogers
Sugar Ltd. (3,723) (6,995) (7,708) (13,786)
Amortization of Fund's
purchase price discrepancy (2,154) (2,154) (6,487) (6,463)
---------------------------------------------------------------------
2,123 (1,149) 9,806 3,751EXPENSES
Administration costs 66 114 256 380
--------------------------------------------------------------------- NET EARNINGS 2,057 (1,263) 9,550 3,371
--------------------------------------------------------------------- Add (subtract):
Equity in loss of Rogers
Sugar Ltd. 3,723 6,995 7,708 13,786
Dividends from Rogers
Sugar Ltd. - 23 - 4,199
Amortization of Fund's
purchase price
discrepancy 2,154 2,154 6,487 6,463
Interest adjustment on
closing - - -
---------------------------------------------------------------------
DISTRIBUTABLE CASH $7,934 $7,909 $23,745 $27,819
---------------------------------------------------------------------
---------------------------------------------------------------------
Statement of Changes in
Financial Position For the three For the nine
months ended months ended
(Unaudited in thousands) June 30 June 30 June 30 June 30
2000 1999 2000 1999
---------------------------------------------------------------------OPERATING ACTIVITIES
Distributable cash $7,934 $7,909 $23,745 $27,819
Increase (Decrease) in
non-cash working capital 372 (21) 364 35
---------------------------------------------------------------------
8,306 7,888 24,109 27,854INVESTING ACTIVITIES
Investment in Rogers Sugar Ltd. - - - -
---------------------------------------------------------------------
- - - -FINANCING ACTIVITIES
Issuance of Trust Units - - - -
Distribution to Unitholders (8,301) (7,885) (24,072) (27,911)
---------------------------------------------------------------------
(8,301) (7,885) (24,072) (27,911)Increase (Decrease) in cash 5 3 37 (57) Cash, beginning of period 35 16 3 76
---------------------------------------------------------------------
Cash, end of period $40 $19 $40 $19
---------------------------------------------------------------------
---------------------------------------------------------------------
ROGERS SUGAR INCOME FUND Balance Sheet For the period ended
(Unaudited in thousands) June 30
---------------------------------------------------------------------
2000 1999
---------------------------------------------------------------------ASSETS Current
Cash $40 $19
Other current assets 17 22
Receivable from Rogers Sugar Ltd. 8,491 7,790
--------------------------------------------------------------------- 8,548 7,831
--------------------------------------------------------------------- Investment in Rogers Sugar Ltd.
11.5 % Subordinated notes 278,261 278,261
Common shares 102,703 103,739
Equity in loss and amortization of purchase
price discrepancy less dividend (54,412) (35,303)
Dividends (12,160) (12,136)
--------------------------------------------------------------------- 314,392 334,561
--------------------------------------------------------------------- $322,940 $342,392
---------------------------------------------------------------------
--------------------------------------------------------------------- LIABILITIES & UNITHOLDERS' EQUITY Current
Accounts payable and accrued liabilities $45 $40
Distribution payable to Unitholders 8,508 7,885
--------------------------------------------------------------------- 8,553 7,925
---------------------------------------------------------------------
Unitholders' Equity
Net proceeds from issuance of Trust Units 382,000 382,000
Net earnings 31,903 19,402
Distributions (99,516) (66,935)
--------------------------------------------------------------------- 314,387 334,467
--------------------------------------------------------------------- $322,940 $342,392
---------------------------------------------------------------------
---------------------------------------------------------------------
ROGERS SUGAR LTD. Statement of Earnings For the three For the nine
months ended months ended
(Unaudited in thousands) June 30 June 30 June 30 June 30
2000 1999 2000 1999
---------------------------------------------------------------------Revenues $40,991 $40,682 $129,769 $124,054
Cost of sales 28,923 29,483 87,299 88,955
---------------------------------------------------------------------
Gross Margin 12,068 11,199 42,470 35,099 EXPENSES
Distribution 1,578 2,102 5,507 5,412
Management and outsourcing
fees 1,107 1,107 3,322 3,317
Capital tax 109 120 396 441
---------------------------------------------------------------------
Earnings before interest,
income taxes, depreciation
and amortization 9,274 7,870 33,245 25,929 Growers' settlement - 4,316 - 4,316
Depreciation and amortization 3,530 3,258 10,586 9,775
--------------------------------------------------------------------- Earnings before interest
and income taxes 5,744 296 22,659 11,838 Long-term debt interest 9,712 9,507 29,066 28,425
Other interest 459 406 1,375 843
--------------------------------------------------------------------- (Loss) Earnings before
income taxes (4,427) (9,617) (7,782) (17,430) Income taxes (704) (2,622) (74) (3,644)
--------------------------------------------------------------------- NET (LOSS) EARNINGS $(3,723) $(6,995) $(7,708) $(13,786)
---------------------------------------------------------------------
---------------------------------------------------------------------
Statement of Changes in
Financial Position For the three For the nine
months ended months ended
(Unaudited in thousands) June 30 June 30 June 30 June 30
2000 1999 2000 1999
---------------------------------------------------------------------OPERATING ACTIVITIES
Net (loss) earnings $(3,723) $(6,995) $(7,708) $(13,786)
Depreciation and
amortization 3,530 3,258 10,586 9,775
Future income taxes 484 (761) (49) (1,032)
Other 197 190 713 1,495
(Increase) Decrease in
non-cash working capital
and other items 9,123 3,005 (5,230) (16,328)
--------------------------------------------------------------------- 9,611 (1,303) (1,688) (19,876) INVESTING ACTIVITIES
Property, plant and equipment
additions (net) (627) (6,058) (1,101) (12,836)
Other assets - - - -
--------------------------------------------------------------------- (627) (6,058) (1,101) (12,836)
--------------------------------------------------------------------- FINANCING ACTIVITIES
Dividend declared - (23) - (4,199)
Increase in long-term debt - 4,000 - 14,000
--------------------------------------------------------------------- Increase (Decrease) in cash 8,984 (3,384) (2,789) (22,911)
(Bank indebtedness) Cash,
beginning of period (27,856) (18,856) (16,083) 671
---------------------------------------------------------------------
(Bank indebtedness) Cash,
end of period $(18,872) $(22,240) $(18,872) $(22,240)
---------------------------------------------------------------------
---------------------------------------------------------------------
ROGERS SUGAR LTD. Balance Sheet For the period ended
June 30
(Unaudited in thousands) 2000 1999
---------------------------------------------------------------------ASSETS Current
Cash pool $643 $2,728
Other current assets 49,436 42,594
--------------------------------------------------------------------- 50,079 45,322
--------------------------------------------------------------------- Investments
Investments & other assets 179,064 178,302
Property, plant and equipment 81,353 77,984
Goodwill 174,445 184,556
--------------------------------------------------------------------- 434,862 440,842
--------------------------------------------------------------------- $484,941 $486,164
---------------------------------------------------------------------
--------------------------------------------------------------------- LIABILITIES Current
Bank indebtedness $18,872 $22,240
Accounts payable 25,021 15,758
--------------------------------------------------------------------- 43,893 37,998
--------------------------------------------------------------------- 11.5 % Notes payable 278,261 278,261
Long-term debt 98,500 93,500
Other liabilities 178,000 178,000
--------------------------------------------------------------------- 554,761 549,761
---------------------------------------------------------------------
Deficiency in assets
Share capital 102,702 103,739
Deficit (216,415) (205,334)
--------------------------------------------------------------------- (113,713) (101,595)
--------------------------------------------------------------------- $484,941 $486,164
---------------------------------------------------------------------
---------------------------------------------------------------------
--------------------------------------------------------------------------------
Contact:
Rogers Sugar Income Fund
Mr. Dan Lafrance
Senior Vice-President of Finance, CFO and Secretary
(514) 940-4350 |