new finance report · 2020. 8. 3. · estimated gross beet payment 06.30.20 with dr 06.30.20...

Finance Report

FY20 Renville

Estimated Gross Beet Payment06.30.20Forecast

02.29.20Forecast

Increase(Decrease)

Per Planted Acre $818.27 $818.18 $0.09

Per Harvested Ton $35.84 $35.84 -

Net Proceeds $100.4M $100.4M -

Estimated Gross Beet Payment06.30.20With DR

06.30.20Forecast

Increase(Decrease)

Per Planted Acre $1,248.89 $818.18 $430.61

Per Harvested Ton $54.70 $35.84 $18.86

Net Proceeds $153.2M $100.4M $52.8M

Description06.30.20

Forecast

02.29.20

ForecastIncrease

(Decrease)

Estimated

$

Amount

Harvested Acres 119,606 119,606 -

-Tons Per Acre 23.42 23.42 -

Harvested Tons 2,800,794 2,800,794 -

Harvested Sugar % 15.63% 15.63% - -

Shrink % 6.65% 7.00% (0.35%) $1.0M

Extraction % (211,263 CWT*) 76.62% 78.70% (2.08%) ($7.5M)

MDS CWT 485,348 491,578 (6,230) ($0.2M)

Basis Sugar Production

Volume6,716,774 6,934,267 (217,493) ($6.7M)

All Other N/A N/A N/A $6.7M

Grand Total N/A N/A N/A -

NOTE: Estimates based on stepping through forecast changes in the order noted at left (Harvested Acres – Tons Per Acre –Harvested Tons – Sugar % - Shrink % - Extraction % - All Other); Given certain items are dependent on other items (i.e. are not linear), a different method of calculating the figures may result in different values

All Other Includes (+ is benefit; - is reduction):

+ $4.7M Sugar NSP ($30.90 to $31.60 per CWT)

+ $1.9M General Reserve

+ $0.9M Outside Services (e.g.

Transystems)

+ $0.8M Revenue – Co-Products

+ $0.5M Depreciation

- $0.2M Various

- $0.3M People – Internal

- $0.8M Processing Materials (e.g.

Chemicals)

- $0.8M Repairs & Maintenance

= $6.7M All Other Income

* 68,950 CWT of refined was produced from raws meaning the net-net reduction in CWT production including raw sugar was 142,213 CWT

Description06.30.20Forecast

Impact PerHarvested Acre

Impact PerHarvested Ton

1.00% Change in Sugar Content 15.63% $108.15 $4.62

$1.00 per CWT Change in NSP $31.60 $58.44 $2.50

1.00 Ton per Acre Change in Yield 23.42 $53.48 $0.72

1.00% Change in Purity 91.01% $29.51 $1.26

1.00% Change in Extraction 76.62% $23.79 $1.02

1.00% Change in Weight Shrink 6.65% $18.28 $0.78

Description06.30.20Forecast

Carry-In Inventory 0.5M

Production 6.8M

Purchases 0.3M

Total Available to

Sell7.6M

Actual Sales 6.3M

Open Contracts 1.0M

Total Sales 7.3M

Carry-Out

Inventory0.3M

FiscalYear

Crop Year2014

Crop Year2015

Crop Year2016

Crop Year2017

Crop Year2018

Total

At 08.31.19 $7.8M $14.0M $7.2M $13.5M $5.9M $48.4M

Payments

FY20 $7.8M - - - - $7.8M

FY21 - $14.0M - - - $14.0M

FY22 - - $7.2M - - $7.2M

FY23 - - - $13.5M - $13.5M

FY24 - - - - $5.9M $5.9M

Brawley-Sheridan

Year-End Cumulative Minimum

08.31.20 $4.0M

08.31.21 $6.0M

08.31.22 $8.0M

08.31.23 $10.0M

Fiscal YearAllocated Earnings

Outstanding Shares

Per Share Payouts Balance

FY10 $7.7M 119,302 $64.43 $7.7M -

FY11 $20.5M 119,302 $171.80 $13.4M $7.1M

FY12 $18.3M 119,302 $153.65 $0.1M $18.2M

FY13 $6.2M 119,302 $51.62 - $6.2M

FY14 $8.5M 119,302 $71.49 - $8.5M

FY15 $2.1M 119,302 $17.99 - $2.1M

FY16-FY19 - 119,302 - - -

Total $63.3M 119,302 $530.98 $21.2M $42.1M

Fiscal Year Brawley Sheridan Total

FY16A $1.7M N/A* $1.7M

FY17A ($4.2M) N/A* ($4.2M)

FY18A $8.0M ($11.6M) ($3.6M)

FY19A $1.2M $1.6M $2.8M

FY16-FY19A $6.7M ($10.0M) ($3.3M)

FY20F $4.0M $1.0M $5.0M

FY16A-FY20F $10.7M ($9.0M) $1.7M

Long-Range Plan

Baseline - Moderate

“Baseline” assumes CAPEX of $15.0M per year, which CAPEX may significantly exceed $15.0M per year moving forward.

• The main driver for exceeding this internal covenant was lower discount/ interest rates affecting pensions and AOC(L) within equity; The net change in AOC(L) was an increase in loss of $10.5M

• The main driver for exceeding this internal covenant was lower discount/ interest rates affecting pensions and AOC(L) within equity; The net change in AOC(L) was an increase in loss of $10.5M

• Working capital projects to be below $10M and has even projected to be negative at times on a financial statement basis but our cashflow basis and ability to borrow against seasonal lines projects to be sufficient through 08.31.20. This is due to extending payment terms with vendors and other cashflow enhancing activities. As such, a significant amount of payables will come due in early FY21 meaning we may need to take on Term Debt to bring Working Capital back in-line with covenants, fund the significant 08.31.20 payables and run the business in general.

Crop Year 2020 (FY21)

https://portal.smbsc.com/Tools/CoopAverageProfitabilityCalculator.aspx

Description Amount

Carry-In Inventory (CWT) 0.1M – 0.3M

Production (CWT) 7.2M – 10.5M

Total Available to Sell (CWT) 7.3M – 10.8M

Contracted Sales 5.9M

% of Production Contracted 81% – 56%

Net Selling Price (CWT) $32.20 – $31.00

PENSIONS

OTHER NOTABLE ITEMS

DISASTER RELIEF

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