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Gold/Mining/Energy : SASKATCHEWAN WHEAT POOL ( SWP.B - TSE ) -- Ignore unavailable to you. Want to Upgrade?

To: Jay Durell who wrote (10)	3/18/1998 8:49:00 PM
From: Jay Anderson	Read Replies (1) \| Respond to of 47

REGINA, SASKATCHEWAN--Saskatchewan Wheat Pool reported net earnings for the second quarter ended January 31, 1998 of $7.2 million or $0.24 per share, more than double last year's second quarter net earnings of $3.3 million or $0.11 per share. Higher grain handling volumes and stronger agri-food processing results were chiefly responsible for the increase. Operating earnings in grain handling and marketing were 52 percent ahead of last year while earnings from agri-food processing increased by 181 percent. Overall, second quarter earnings before interest, taxes, depreciation and amortization (EBITDA) were ahead by 19 percent while earnings before interest and taxes (EBIT) were up 50 percent compared to 1997. "Our core grain handling business had another strong quarter," said Don Loewen, the Pool's Chief Executive Officer, "and agri-food processing showed considerable improvement over last year." For the first six months of fiscal 1998, the Company recorded net earnings of $16.9 million or $0.57 per share, a 38 percent increase over last year's $12.3 million or $0.41 per share. EBITDA and EBIT for the Company were ahead 21 percent and 26 percent, respectively, compared to the first six months of fiscal 1997. Six month cash flow from operations was $45.3 million or $1.53 per share, an 11 percent increase from $40.6 million or $1.37 per share one year earlier. For the first six months of the 1998 fiscal year, grain handling volumes increased 12 percent over 1997. The increase was largely attributable to good weather, improved transportation, and the marketing plan of the Canadian Wheat Board which has pulled deliveries forward from the last half of the year. Port terminal handlings were ahead 30 percent with increases reported at all facilities. One-half of the increase was recorded at Thunder Bay while the Pool's affiliates accounted for a further one-third of the volume gain. /T/ Six Month Handling Volumes to January 31 ---------------------------------------- (millions of tonnes) 1998 1997 ---- ---- Primary Elevator System 5.69 5.10 ---- ---- ---- ---- Terminal Operations Vancouver - SWP 1.41 1.26 Thunder Bay - SWP 1.95 1.43 Share of Affiliates 1.12 0.75 ---- ---- 4.48 3.44 ---- ---- ---- ---- /T/ Six month operating earnings for agri-food processing were $9.9 million, an increase of 58 percent over last year. Sales for the first half of fiscal 1998 increased by 9 percent to $340 million from $313 million in fiscal 1997. CanAmera has been the major contributor to this segment's turnaround, recording higher sales and much improved margins due to a healthier Canadian canola processing sector. To January 31, 1998, CanAmera's crushing volumes were ahead by 19 percent over 1997. The Company is presently in the midst of a two to three year major capital spending program to further its two major strategies - the development of western Canada's most efficient grain handling network and the growth of its value-added businesses. "The grain handling and value-added strategies go hand in hand", says Don Loewen. "The company's elevator expansion across western Canada, the livestock feed and hog production initiatives and investments in companies like Fletcher's Fine Foods and Can-oat Milling will result in the Pool becoming a larger and stronger agri-business co-operative". Saskatchewan Wheat Pool is Canada's largest publicly traded agri-business co-operative. The company's Class B shares are listed on the TSE under stock symbol SWP.B. /T/ Consolidated Statements of Earnings and Retained Earnings (in millions of dollars, except per share amounts) Three Months Ended Six Months Ended January 31 January 31 (unaudited) (unaudited) ----------- ----------- 1998 1997 1998 1997 Sales and other operating revenues $988.7 $958.6 $2,031.5 $2,004.5 ------ ------ -------- -------- Operating income before interest & securitization expenses 17.4 11.3 42.8 34.1 Interest and securitization expenses (6.9) (4.2) (14.3) (10.6) ------ ------ -------- -------- Earnings from operations 10.5 7.1 28.5 23.5 Equity earnings 0.4 - 0.5 - Non-controlling interest (0.2) (0.1) (0.3) (0.2) ----- ------ -------- -------- Earnings before corporate taxes 10.7 7.0 28.7 23.3 Provision for corporate taxes (3.5) (3.7) (11.8) (11.0) ----- ----- ------ ------ Net earnings $7.2 $3.3 $16.9 $12.3 ----- ----- ------ ------ ----- ----- ------ ------ Earnings per share $0.24 $0.11 $0.57 $0.41 ------ ------ ------ ------ ------ ------ ------ ------ Sales and Operating Revenues by Segment (in millions of dollars) Three Months Ended Six Months Ended January 31 January 31 (unaudited) (unaudited) ----------- ----------- 1998 1997 1998 1997 Grain handling and marketing $704.9 $714.8 $1,495.4 $1,522.8 Farm supplies 82.2 63.5 156.7 140.6 Agri-food processing 177.0 160.9 339.5 312.8 Livestock marketing 32.7 24.7 58.0 42.8 Publishing and Other 3.8 5.7 6.9 11.7 Intersegment sales (11.9) (11.0) (25.0) (26.2) ------- ------ -------- -------- $988.7 $958.6 $2,031.5 $2,004.5 ------- ------ -------- -------- ------- ------ -------- -------- Earnings from Operations (in millions of dollars) Three Months Six Months Ended January 31 Ended January 31 (unaudited) (unaudited) --------- --------- 1998 1997 1998 1997 Grain handling and Marketing $ 9.5 $6.2 $35.0 $23.2 Farm supplies 7.1 7.7 7.4 14.6 Agri-food processing 6.3 2.2 9.9 6.3 Livestock marketing 1.8 1.4 3.1 1.9 Publishing and Other 0.5 0.4 1.3 1.0 ---- ---- ---- ---- 25.2 17.9 56.7 47.0 Corporate expenses (7.4) (6.6) (13.4) (12.9) Interest & securitization expenses (6.9) (4.2) (14.3) (10.6) Equity earnings (included in Agri-food processing) (0.4) - (0.5) - ---- ---- ---- ---- $10.5 $7.1 $28.5 $23.5 ---- ---- ---- ---- ---- ---- ---- ---- Consolidated Statement of Financial Position (in millions of dollars) As at January 31, 1998 1998 1997 Current assets $633.1 $511.6 Investments 57.0 14.7 Capital assets 530.0 436.2 Other long-term assets 47.5 35.7 ----- ----- $1,267.6 $998.2 ------- ----- ------- ----- Current liabilities $503.4 $390.8 Long-term debt 199.0 96.0 Other long-term liabilities 39.2 28.3 Non-controlling interest 4.3 1.7 Shareholders' equity 521.7 481.4 ----- ----- $1,267.6 $998.2 ------- ----- ------- ----- Consolidated Statement of Changes in Financial Position (in millions of dollars, except cash flow per share) Six Months Ended January 31 1998 1997 Net earnings $16.9 $12.3 Depreciation and amortization 24.6 21.8 Other 3.8 6.5 ---- ---- Cash flow provided by operations 45.3 40.6 Changes in working capital (38.2) (11.8) ---- ---- Net funds provided by operations 7.1 28.8 Capital expenditures (106.4) (45.4) Increase in investments (14.8) (15.1) Increase in non-controlling interest 2.3 - (Decrease)/Increase in long-term debt (3.2) 14.9 Increase/(Decrease) in share capital 0.2 - ----- ---- Increase in bank financing (114.8) (16.8) Bank financing beginning of year (107.5) (169.5) ----- ----- Bank financing end of year (222.3) (186.3) ----- ----- ----- ----- Cash flow per share $ 1.53 $ 1.37 ----- ----- ----- ----- /T/ -30- FOR FURTHER INFORMATION PLEASE CONTACT: Saskatchewan Wheat Pool Donald K. Loewen Chief Executive Officer (306) 569-4806 swp.com or Saskatchewan Wheat Pool Lyle A. Spencer Executive Vice President, Finance & Chief Financial Officer (306) 569-4341

To: Jay Durell who wrote (10)	3/26/1998 1:27:00 AM
From: Glen McGlaughlin	Respond to of 47

Jay-sorry for being so tardy in responding,I have had other fish to fry in recent days including some liquidation of my exposure in SWP.I was able to pick up $22 for some of my shares to-day,giving me a tidy 57% gain in less than 20 months. Don't get me wrong I'm still bullish on this company over the longer term but I agree with the Dominion Bond Rating Service comments on march 13 which headlined "SASK POOL EPS WHIPSAWED BY EXPANSION" In other words new competitors entering the Sask grain marketing picture such as ADM,ConAgra, numerous Producer built terminals,the purchase of Humboldt Flour Mills jointly by ALTA WHEAT POOL and MAN POOL ELEVATORS will all put pressure on operating margins for all grain companies in the short run-this will not bode well for increased share values over the next 12-24 mths.Hence my decision to lighten my exposure at this time. Thats the way I see it at this point in time. Glen McGlaughlin