WIT Continues Strong Performance
Thursday, 27 November 2008 18:00
The first three quarters of Fiscal 2008 showed Weyburn Inland Terminal Ltd. continuing to show solid profitability.
WIT reported after-tax earnings of $3,092,000 ($3.01share) on sales of $88,900,000 for the January-to-September period — down from $4,092,000 ($4.14/share) in the same period in Fiscal 2007. A smaller 2007 harvest and solid grain movement for CWB grain prior to the end of last December reduced the cereal grain available for the Company to move in the first nine months of 2008, however non-CWB grain marketing and shipping made up a significant amount of the shortfall. Strong performance from the crop inputs and Vigro Seed & Supply businesses also helped balance reduced grain handling. A slower CWB sales program has continued to reduce shipping opportunities, however grain shipping is expected to improve in the new year.
The Company also announced that a $5 million receiving and storage system upgrade is nearly complete. “Difficulty in getting trades people and materials have delayed the project from our targeted completion date” said CEO Rob Davies. “While some of the truck unloading system speed improvements are operational now, we expect to see the full benefit of the upgrade by the end of the year.” This is the first quarter with financial results that include WIT’s 55.5% ownership of local ethanol producer NorAmera BioEnergy. “NorAmera has had some operational challenges that we are taking steps to address” noted Davies. “We look forward to the plant operating at capacity and being a positive contributor to WIT’s earnings in the very near future.”
“The services and efficiencies that ‘The Terminal’ provides continue to benefit both customers and shareholders, and their continued support has allowed for very good results in a year where durum deliveries have been slower” said Company President Claude Carles. Significant ergot problems in the 2008 durum crop have resulted in the company providing special programs to help farmers maximize the value of grain that would otherwise be downgraded. “The ergot program is an example of WIT’s focus on helping farmers extract additional value from their grain at a reasonable cost” said Carles. “While many companies charge different handling fees at different times of the year, to farmers who have different crop qualities in different market areas, WIT has maintained our focus on providing high value, low cost services to all of our farmer customers. We believe this focus on farmers’ needs will pay off in the long term.”
The Company continues to file the lowest handling tariffs and be the only major grain handling company to offer net weight tariffs. This results in lower costs to farmers for elevation, cleaning, and shipping of their grain. WIT has also paid over $3,050,000 in Common and Preferred dividend payments in 2008, representing a yield of 7.06% based on September’s closing share price of $42.50.
“Very strong canola, flax, and malt barley marketing and movement by WIT provided both cash flow and movement opportunities for customers this fall, especially since CWB grain movement has not been able to stay ahead of producer delivery demands. The volume of grain to move will mean that having the right grain available for shipping opportunities as they present themselves will be critical “ said Davies. “Our customer service, marketing and grain buying staff will ensure that we maintain close contact with producers to maximize delivery opportunities. We will continue to aggressively market flax and canola, and our professional agronomists will be working with customers to plan for the 2009 crop.”
“The Directors and staff at WIT look forward to working with our customers to take advantage of the opportunities before us” said Carles. “The quality of both our staff and our facility allow us to work with our customers to maximize their returns on an ongoing basis. Our local presence helps keep us in touch with our customers and shareholders, and we look forward to continuing to grow for the benefit of both.”
WIT is a farmer-owned and farmer-directed grain company located on the CP Rail Soo Line near Weyburn, Saskatchewan. Since its beginning 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.
WIT reported after-tax earnings of $3,092,000 ($3.01share) on sales of $88,900,000 for the January-to-September period — down from $4,092,000 ($4.14/share) in the same period in Fiscal 2007. A smaller 2007 harvest and solid grain movement for CWB grain prior to the end of last December reduced the cereal grain available for the Company to move in the first nine months of 2008, however non-CWB grain marketing and shipping made up a significant amount of the shortfall. Strong performance from the crop inputs and Vigro Seed & Supply businesses also helped balance reduced grain handling. A slower CWB sales program has continued to reduce shipping opportunities, however grain shipping is expected to improve in the new year.
The Company also announced that a $5 million receiving and storage system upgrade is nearly complete. “Difficulty in getting trades people and materials have delayed the project from our targeted completion date” said CEO Rob Davies. “While some of the truck unloading system speed improvements are operational now, we expect to see the full benefit of the upgrade by the end of the year.” This is the first quarter with financial results that include WIT’s 55.5% ownership of local ethanol producer NorAmera BioEnergy. “NorAmera has had some operational challenges that we are taking steps to address” noted Davies. “We look forward to the plant operating at capacity and being a positive contributor to WIT’s earnings in the very near future.”
“The services and efficiencies that ‘The Terminal’ provides continue to benefit both customers and shareholders, and their continued support has allowed for very good results in a year where durum deliveries have been slower” said Company President Claude Carles. Significant ergot problems in the 2008 durum crop have resulted in the company providing special programs to help farmers maximize the value of grain that would otherwise be downgraded. “The ergot program is an example of WIT’s focus on helping farmers extract additional value from their grain at a reasonable cost” said Carles. “While many companies charge different handling fees at different times of the year, to farmers who have different crop qualities in different market areas, WIT has maintained our focus on providing high value, low cost services to all of our farmer customers. We believe this focus on farmers’ needs will pay off in the long term.”
The Company continues to file the lowest handling tariffs and be the only major grain handling company to offer net weight tariffs. This results in lower costs to farmers for elevation, cleaning, and shipping of their grain. WIT has also paid over $3,050,000 in Common and Preferred dividend payments in 2008, representing a yield of 7.06% based on September’s closing share price of $42.50.
“Very strong canola, flax, and malt barley marketing and movement by WIT provided both cash flow and movement opportunities for customers this fall, especially since CWB grain movement has not been able to stay ahead of producer delivery demands. The volume of grain to move will mean that having the right grain available for shipping opportunities as they present themselves will be critical “ said Davies. “Our customer service, marketing and grain buying staff will ensure that we maintain close contact with producers to maximize delivery opportunities. We will continue to aggressively market flax and canola, and our professional agronomists will be working with customers to plan for the 2009 crop.”
“The Directors and staff at WIT look forward to working with our customers to take advantage of the opportunities before us” said Carles. “The quality of both our staff and our facility allow us to work with our customers to maximize their returns on an ongoing basis. Our local presence helps keep us in touch with our customers and shareholders, and we look forward to continuing to grow for the benefit of both.”
WIT is a farmer-owned and farmer-directed grain company located on the CP Rail Soo Line near Weyburn, Saskatchewan. Since its beginning 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.
-Paul Carles, Radville |
