| MONTREAL, QUEBEC--
Dear Unitholder:
On April 12, 2001, Rogers Sugar Income Fund (the ``Fund'')
distributed $4,150,480 or $.1000 per unit to Unitholders of
record on March 31, 2001. The distribution was all interest
income to the recipient. Year to date distribution has been
$12,036,392 or $.2900 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 second quarter of fiscal 2001, Rogers delivered
59,431 metric tonnes of sugar as opposed to 57,983 in the
comparable quarter of fiscal 2000. The increase in sales is
due to timing in sales to the export market. These sales had
been delayed from the first quarter due to depressed pricing
in the U.S. market.
Gross margins at $8,494,000 were $3.0 million less than the
previous year. The per metric tonne rate was reduced from
$200.00 in fiscal 2000 to $143.00 in fiscal 2001. The
reduction in rate per metric tonne is largely attributable to
higher energy costs, which were $2.5 million above the same
quarter last year. The remaining $.5 million reduction in
gross margin was due mainly to the mix of sales, which had a
larger liquid sales component.
The long-term debt interest is $3.4 million lower than last
year due to the reduction in distribution and hence the rate
of interest paid on the Subordinated Notes to the Fund. The
rate paid for the quarter was 6.04% compared to 11.5% last
year for the comparable quarter.
The Taber beet slicing campaign was completed on February
28, 2001. The 2001 crop generated 920,000 tonnes of beets, up
80,000 tonnes from last year's level. The sugar yield from the
crop was negatively impacted by a severe three-day frost that
struck the region prior to the main harvest in October. The
campaign was extended by 26 days because of the volume of
harvested beets as well as the failure of a main generator,
which occurred in the first quarter. An insurance claim is now
being pursued for the additional costs incurred due to the
generator breakdown.
The total sugar output for the campaign is estimated at
113,000 tonnes, the same as last year's tonnage.
Rogers has renegotiated the last year of the contract with
the Alberta Beet Growers in order to entice the Growers to
increase acreage. At the present time, the amount of acreage
for next year is uncertain due to continued drought conditions
affecting southern Alberta and lower level of water available
through the irrigation system.
The distributable cash flow earned from operations in the
second quarter was $2.9 million or 7 cents per unit and 28
cents per unit year to date. As a result of the lower earnings
and distributable cash flow generated, due mainly to the
increased natural gas prices, the distribution was reduced to
10 cents per unit for the quarter ended March 31, 2001.
On March 1, 2001, Rogers introduced a Distribution
Reinvestment Program where unitholders may reinvest their
distribution into additional units of Rogers Sugar Income Fund
at 95% of the average market price of the units for the ten
trading days immediately preceding the distribution payment
date. If you have not received your Program brochure, please
call us or visit our website for a full description of the
Program.
Interim financial statements for Rogers Sugar Income Fund
and for Rogers Sugar Ltd. are attached. Full disclosure as
required by Canadian GAAP for annual financial statements are
presented in our Annual Report, and accordingly, these interim
financial statements should be read in conjunction with our
2000 Annual Report. These interim financial statements follow
the same accounting policies and methods of application as
disclosed in our 2000 Annual Report. There have not been
significant changes in estimates in the current interim
period. Certain accounts of fiscal 2000 have been reclassified
to conform with the fiscal 2001 presentation.
FOR THE BOARD OF TRUSTEES
David C. Dingwall, P.C., Q.C.
Chairman
Montral, Qubec
May 10, 2001
ROGERS SUGAR INCOME FUND
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Statement of Earnings and Distributable Cash
For the For the
three months ended six months ended
(Unaudited in thousands) March 31 March 31 March 31 March 31
2001 2000 2001 2000
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REVENUE
Interest $4,200 $8,000 $12,200 $16,001
Equity in earnings of
Rogers Sugar Ltd. (4,901) (4,145) (6,360) (3,985)
Amortization of Fund's
purchase price discrepancy (2,154) (2,154) (4,332) (4,333)
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(2,855) 1,701 1,508 7,683
EXPENSES
Administration costs 41 71 153 190
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NET (LOSS) EARNINGS (2,896) 1,630 1,355 7,493
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Add:
Equity in loss of
Rogers Sugar Ltd. 4,901 4,145 6,360 3,985
Amortization of Fund's
purchase price
discrepancy 2,154 2,154 4,332 4,333
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DISTRIBUTABLE CASH $4,159 $7,929 $12,047 $15,811
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Net (loss) earnings
per trust unit $(0.07) $0.04 $0.03 $0.18
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Distributable cash
per trust unit $0.10 $0.19 $0.29 $0.38
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Statement of Cash Flows
For the For the
three months ended six months ended
(Unaudited in thousands) March 31 March 31 March 31 March 31
2001 2000 2001 2000
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OPERATING ACTIVITIES
Distributable cash $4,159 $7,929 $12,047 $15,811
Decrease in non-cash
working capital (12) (28) (16) (8)
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4,147 7,901 12,031 15,803
FINANCING ACTIVITIES
Distribution to Unitholders (4,150) (7,885) (12,036) (15,771)
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(4,150) (7,885) (12,036) (15,771)
(Decrease) Increase in cash (3) 16 (5) 32
Cash, beginning of period 17 19 19 3
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Cash, end of period $14 $35 $14 $35
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ROGERS SUGAR INCOME FUND
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Balance Sheet
For the period ended
(Unaudited in thousands) March 31 September 30
2001 2000
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ASSETS
Current
Cash $14 $19
Other current assets 29 7
Receivable from Rogers Sugar Ltd. 4,200 8,000
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4,243 8,026
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Investment in Rogers Sugar Ltd.
Subordinated notes 278,261 278,261
Common shares 102,701 102,701
Equity in loss and amortization of
purchase price discrepancy
less dividend (83,374) (72,682)
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297,588 308,280
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$301,831 $316,306
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LIABILITIES & UNITHOLDERS' EQUITY
Current
Accounts payable and
accrued liabilities $158 $216
Distribution payable to Unitholders 4,150 7,886
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4,308 8,102
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Unitholders' Equity
Net proceeds from
issuance of Trust Units 382,000 382,000
Net earnings 34,962 33,607
Distributions (119,439) (107,403)
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297,523 308,204
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$301,831 $316,306
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ROGERS SUGAR LTD.
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Statement of Earnings For the For the
For the period three months ended six months ended
ended March 31 March 31 March 31 March 31 March 31
(Unaudited in thousands) 2001 2000 2001 2000
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Revenues
Cost of sales $43,034 $37,763 $92,112 $88,778
Gross Margin 34,540 26,192 68,848 58,376
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8,494 11,571 23,264 30,402
EXPENSES
Distribution 1,605 1,678 3,672 3,929
Management and
outsourcing fees 1,163 1,108 2,324 2,215
Capital tax 125 143 250 287
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Earnings before interest,
income taxes, depreciation
and amortization 5,601 8,642 17,018 23,971
Depreciation and
amortization 3,492 3,527 6,985 7,056
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Earnings before interest
and income taxes 2,109 5,115 10,033 16,915
Long-term debt interest 6,234 9,686 16,269 19,354
Other interest 516 523 837 916
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Loss before income taxes (4,641) (5,094) (7,073) (3,355)
Provision for (recovery of)
income taxes 260 (949) (713) 630
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NET LOSS $(4,901) $(4,145) $(6,360) $(3,985)
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Statement of Cash Flows For the For the
For the period three months ended six months ended
ended March 31 March 31 March 31 March 31 March 31
(Unaudited in thousands) 2001 2000 2001 2000
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OPERATING ACTIVITIES
Net loss $(4,901) $(4,145) $(6,360) $(3,985)
Depreciation and
amortization 3,492 3,527 6,985 7,056
Future income taxes (333) (246) 780 (533)
Other 441 198 (393) 516
Decrease in non-cash
working capital and
other items (10,800) (492) (22,378) (13,433)
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(12,101) (1,158) (21,366) (10,379)
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INVESTING ACTIVITIES
Property, plant and
equipment additions (net) (28) (273) (598) (1,394)
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(28) (273) (598) (1,394)
FINANCING ACTIVITIES
Increase in bank overdraft
and revolving credit
facility 12,129 1,431 21,964 11,773
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12,129 1,431 21,964 11,773
Increase (Decrease) in cash
and cash equivalent - - - -
Cash and cash equivalent,
beginning of period - - - -
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Cash and cash equivalent,
end of period $- $- $- $-
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ROGERS SUGAR LTD.
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Balance Sheet For the period ended
March 31 September 30
(Unaudited in thousands) 2001 2000
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ASSETS
Current assets $48,491 $40,452
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48,491 40,452
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Investments
Investments & other assets 187,309 187,358
Property, plant and equipment 81,215 82,766
Goodwill 166,860 171,916
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435,384 442,040
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$483,875 $482,492
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LIABILITIES
Current
Bank indebtedness $32,641 $10,677
Accounts payable and
accrued liabilities 14,329 28,668
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46,970 39,345
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Other employee benefits 4,913 4,795
Notes payable 278,261 278,261
Long-term debt 100,000 100,000
Other liabilities 178,000 178,000
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561,174 561,056
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Deficiency in assets
Share capital 102,701 102,701
Deficit (226,970) (220,610)
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(124,269) (117,909)
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$483,875 $482,492
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Contact:
Rogers Sugar Income Fund
Mr. Dan Lafrance
Senior Vice-President Finance and CFO and Secretary
(514) 940-4350
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