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Imperial Sugar Company Reports First Quarter Fiscal Year 2009 Results

^{Published on 2009-02-05 06:01:45, Last Modified on 2009-02-05 06:04:01 - Market Wire}
 

SUGAR LAND, Texas--([ BUSINESS WIRE ])--TheImperial Sugar Company (NASDAQ:IPSU) today reported a loss from continuing operations for the fiscal first quarter ended December 31, 2008 of $0.6 million, or $0.05 per share, compared to income from continuing operations of $12.3 million, or $1.04 per diluted share, for the same period last year. The recent quarter also included a pre-tax charge of $3.3 million related to the company's Port Wentworth refinery accident that occurred in February, 2008 as well as a gain on litigation settlement of $16.1 million. Last year's first quarter included $11.4 million of other income related to a limited partnership investment distribution.

Port Wentworth charges in the recent quarter include amounts for cleanup and repairs, continuing refinery payroll and other costs related to the accident totaling $14.9 million, offset by $11.7 million of insurance recoveries recognized under the company's property insurance coverage.

Net sales and gross margin for the fiscal fourth quarter declined to $108.6 million and a negative 2.7%, compared to $215.5 million and a positive 6.6%, respectively, for the same period last year. The operating loss for the recent quarter was $1.7 million compared to operating income of $3.6 million for the first quarter of last year. Overall results were affected primarily by the loss of production capability due to the Port Wentworth incident as well as higher freight, manufacturing, energy, and selling, general and administrative costs, offset in part by higher refined sugar prices.

"Understandably, financial results continue to be affected by the Port Wentworth outage," stated John Sheptor, president and CEO of Imperial Sugar. However, construction at the Port Wentworth site is making excellent progress as we have begun erecting steel and major equipment is on order. After reviewing equipment delivery and construction schedules, we now anticipate bulk sugar production will begin in the spring of 2009 with the complete restoration of packaging capabilities by fall of 2009. We will continue managing our business to best maximize our resources until all insurance recoveries are received and full manufacturing is restored.

"Initiatives in other areas are also progressing. Discussions with the Louisiana sugar growers and Cargill to become an equity partner in the Louisiana Sugar Refining joint venture are progressing with due diligence underway. Despite the economic slowdown, consumers continue to seek out Wholesome's organic, natural and fair trade products preferentially. And with the seasonal harvest in Mexico now underway, the second year of operations at our joint venture Comercializadora Santos Imperial is in full swing as our customer base continues to grow."

Conference Call Details

Imperial Sugar will conduct a conference call, starting at 11:00 a.m. Eastern, Thursday, February 5, 2009. President and CEO John Sheptor and Senior Vice President and CFO Hal Mechler, will discuss the company's operating results for its fiscal first quarter ended December 31, 2008, its current financial position and its business strategies.

Participants wishing to listen and participate in a brief question-and-answer session after the presentation can dial 1-866-730-5768 and enter the Participant Passcode: 92159103. The conference call can also be accessed via live audio webcast by visiting Imperial Sugar's web site at [ http://www.imperialsugar.com ] and clicking on the "Q1 2009 Imperial Sugar Earnings Conference Call" icon under "Investor Relations".

For those who are unable to listen to the call during its live broadcast, a replay of the entire presentation will be available on the company's web site beginning one hour following the conclusion of the call. In addition to the webcast replay, a telephone replay will also be available beginning one hour following the conclusion of the call that can be accessed by dialing 1-888-286-8010 and entering the Passcode: 26877248. Both replays will be available through March 5, 2009.

Please note: Participants planning to listen to the call via the Internet may need to download Windows Media Player® to hear the call if this feature has not been previously installed on their computers.

About Imperial

Imperial Sugar Company is one of the largest processors and marketers of refined sugar in the United States to food manufacturers, retail grocers and foodservice distributors. The Company markets products nationally under the Imperial®, Dixie Crystals® and Holly® brands. For more information about Imperial Sugar, visit [ www.imperialsugar.com ].

Statements regarding future market prices and margins, future Port Wentworth construction costs, timelines and operational restart dates, future expenses and liabilities arising from the Port Wentworth refinery incident, future insurance recoveries, future actions regarding the Louisiana Sugar Refining joint venture, future import and export levels, future government and legislative action, future operating results, future availability of raw sugar, operating efficiencies, future investments and initiatives, future cost savings, future product innovations, future energy costs, our liquidity and ability to finance our operations and capital investment programs, future pension payments and other statements that are not historical facts contained in this release are forward-looking statements that involve certain risks, uncertainties and assumptions.These include, but are not limited to, results of damaged equipment inspections, unforeseen engineering, construction and equipment delays, results of insurance negotiations, market factors, farm and trade policy, our ability to realize planned cost savings and other improvements, the available supply of sugar, energy costs, the effect of weather and economic conditions, results of actuarial assumptions, actual or threatened acts of terrorism or armed hostilities, legislative, administrative and judicial actions and other factors detailed in the Company's Securities and Exchange Commission filings.Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual outcomes may vary materially from those indicated.