WIT Announces 2009 Results, Dividends

Claude Carles, President of ‘The Terminal’, announced today that the Company had after-tax consolidated earnings of $2,364,000 in Fiscal 2009, generated by handling 496,000 tonnes of grain and crop input sales of over $26,400,000.  “The challenges of handling the ergot infested 2008 crop took significant resources last year, but our customers saw an additional $15,000,000 in their pockets due to the efforts of WIT and our staff.  We believe that our shareholders understand that value as a component of our long term relationships with our farm customers.  The continuing strong support of our customers has allowed Weyburn Inland Terminal to be a profitable, farmer owned and directed Company” said Carles.  “WIT also has the lowest filed tariffs in the industry.  We have not increased cleaning and handling fees to farmers for the 6th year in a row, providing customers with a strong competitive force in our market area.”

WIT also announced that the Board of Directors has approved a semi-annual dividend of $0.10 per common share, and Preferred A shareholders will receive $1.60 per share. The dividend is to be paid on or before April 7, 2010 to shareholders of record on March 26, 2010.  “Most of our shareholders are also our customers, and we depend on their support,” said Carles.  “This semi–annual dividend payout of approximately $536,000 is a way to pay them back for their continuing support.  The Company paid dividends of $1,594,000 to shareholders in 2009, and shareholder equity increased $1,663,000 to $35,166,000 on Gross Revenues of $118,360,000.”

“Our oilseed program and our commitment to cleaning ergot from our customer’s grain to improve the grade on their behalf, combined with our ability to execute our sales plans resulted in a consistent grain shipping program, even though durum shipping was very slow in the 4th quarter” noted CEO Rob Davies.  “NorAmera BioEnergy has taken time and resources, reducing net earnings of WIT by just over $2,400,000 last year.  That said, production has stabilized and the business is now cash flow positive.  There are still improvements to be made, but it appears we have turned the corner at NorAmera.”  The Company received solid contributions from the Crop Inputs, Pro-Pellet and Vigro Seed & Supply businesses as well.  “Certainly the variability in the fertilizer markets last year had a significant impact on our profitability, however our diversification gives us the ability to balance good and bad years from various parts of the operation” said Davies.  “We believe there is a solid foundation for our business going forward as the world population continues to grow and demand more, better quality food.”  WIT continues to work towards a positive future in agriculture, and supports students, customers, and local communities and organizations in southeast Saskatchewan.  Donations to these various items totaled $110,000 in 2009.  

WIT is a shareholder-owned, farmer-directed grain company located on CP Rail’s Soo Line near Weyburn, Saskatchewan. Since its start in 1976, ‘The Terminal’ has been at the forefront of change in the industry, leading the way to help improve the overall efficiency of Canada’s grain-handling system. The philosophy and goals of the company are summed up in its mission statement: Profitability Through Service, Innovation and Integrity.