Viterra reports strong year-end results, debt-to-capital ratio of 21%

By Lisa Kerner

Charlotte, N.C., Jan. 19 - Viterra Inc. president and chief executive officer Mayo Schmidt said that while it was a demanding year, the company delivered strong results.

The company announced on Wednesday its earnings results for the fiscal year and quarter ended Oct. 31.

Viterra's total debt-to-capital ratio at Oct. 31 was 21%.

At year-end, Viterra had C$155 million in cash and cash equivalents and cash drawings of C$52 million on its C$1.6 billion global credit facility.

The company said financing expenses associated with its long-term and short-term debt increased by C$50.5 million in fiscal 2010, due in part to the C$300 million private placement of notes in July 2009.

The increases were partially offset by the reduction of interest expense due to the redemption of C$100 million of senior notes during fiscal 2010 and the repayment of approximately C$300 million of long-term debt associated with legacy Australian debt.

Viterra also reported one-time refinancing costs of C$24.9 million (C$17.7 million after tax) of which C$16.5 million was related to costs associated with the settlement of interest rate swaps related to the term credit facility and the early redemption premium paid on the C$100 million of senior notes.

Viterra's net earnings for the year were up 28.4% at C$145.3 million, compared with C$113.1 million last year. Earnings per share were C$0.39 in fiscal 2010, compared with C$0.45 per share in fiscal 2009.

Cash flow from operations in fiscal 2010 was C$361 million, or C$0.97 per share, up from C$223 million, or C$0.89 per share, in fiscal 2009. Free cash flow was C$239 million, compared with C$139 million in fiscal 2009, according to a company news release.

The consolidated net earnings for the final quarter of fiscal 2010 were C$52.7 million, or C$0.14 per share, which compares with a net loss of C$900,000 last year, or C$0.00 per share.

Cash flow provided by operations before changes in non-cash working capital was C$88 million, or C$0.24 per share, for the three months ended Oct. 31, compared with cash flow used in operations of C$15.2 million, or C$0.05 per share, in the same three months of 2009.

The global agribusiness company is based in Calgary, Alta.

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