Rogers Sugar Inc.

Good morning, ladies and gentlemen, and welcome to the February 5th Rogers Sugar, Inc. First Quarter 2026 Results Conference Call. At this time, all lines are in listen-only mode. While we're in the presentation, we will conduct a question and answer session. If at any time during this call you require needed assistance, please press star zero for the operator. Before we begin, please be reminded that today's call may include forward-looking statements regarding our future operations and expectations. Such statements involve known and unknown risks and uncertainties that may cause actual results to differ materially from those expressed or implied today. Please also note that we may refer to some non-IFRS measures in our call. Please refer to the forward-looking disclaimers and non-IFRS measures definitions included in our public filings with the Securities Commission for more information on these items. A replay of this call will be available later today. The replay numbers and past will be provided in our press release. And an archived recording of this call will also be available on our website. I'll now turn the call over to Mike Walton, President and CEO of Rogers Sugar.

Thank you, operator, and good morning, everyone. Thank you all for joining us today to discuss our results for the first quarter of 2026. I'll begin by summarizing our results for the quarter with updates from both our sugar and maple segments. I'll also touch on the environment and how we are navigating market developments and positioning Roger Sugar for the months ahead, including an update on our LEAP project. After my remarks, JS, our Chief Financial Officer, will provide a deeper dive into our financial performance for the first quarter. I will then come back to discuss our outlook for the remainder of 2026. We'll conclude with a summary and then open the line for questions from the analysts. As usual, We have an investor presentation accompanying this call. This presentation is available on the investor section of our website for those who want to follow along. Our results in the first quarter underscore the power of discipline execution and a clear strategic vision. Despite the evolving market dynamics around trade policy and tariffs, we delivered strong earnings, advanced our lead project, and continue to strengthen the foundation of our business. This performance reflects on our focus on operational agility, cost management, and above all, an unwavering commitment to serving our customers. At the same time, we remain mindful that the external environment is far from settled. Ongoing shifts in global trade policy and the upcoming Kuzma negotiation continue to introduce uncertainty for the Canadian economy, which ultimately could impact our industry and our markets. While we are confident in our ability to adapt and respond, as we have done for close to 140 years, we know that vigilance and flexibility will be essential in the months ahead. With the momentum we have built in recent years, and the dedication of our Sugar and Maple teams, I am confident that Roger Sugar is positioned to meet the challenges ahead and continue to lead in both of our businesses. Now, looking at the results of our first quarter, we are proud to report consolidated adjusted EBITDA of 47 million, reflecting an 18% increase year-over-year. Adjusted net earnings reached 25 million, up by 27% from last year. We generated $89 million in free cash flow in the trailing 12 months, an increase of about 4% from last year. Our internal cash generation supports ongoing investment in our business and consistent returns to shareholders. Although these strong first quarter results were somewhat boosted by some favorable non-recurring and timing items in comparison to last year, they do show the stability and resilience of our business operating model. They demonstrate the effects of our strategic focus over the last several years on delivering consistent profitable results. I am pleased with the performance from both of our business segments. We support the strong position of financial health we enjoy today. We have the people, the know-how, and the resources we need to meet various challenges while moving forward with the delivery of our lead project. Turning to slide five. Throughout the first quarter, we saw solid performance in both our sugar and maple segments. Demand in our core markets remained steady, with our teams adapting quickly to shifting customer needs and identifying new opportunities for growth. Global food inflation and consumer health focus continue to influence purchasing patterns affecting global sugar demand. Food and beverage producers in certain segments have adjusted their buying patterns in response to consumer behavior. Although we haven't seen a material direct impact on such changes in the Canadian market thus far, we view these changes as part of the normal cycle, with overall domestic demand for sugar remaining stable over time. We are staying agile and focused, working closely with customers to support their evolving needs. Years of experience have taught us that disciplined execution, delivering quality products, and strong customer service help us navigate any environment. Our maple segment continued to build momentum. The incremental sales volume is a good reflection of the recent increase in global demand for maple syrup and maple-related products. Our gross margin percentage has improved from the slight dip seen in the second half of 2025. The quality and availability of the previous crop, coupled with our active syrup procurement activities, supported our ability to deliver reliable results. Looking ahead, we will keep working with producers to ensure a steady supply as demand is expected to continue to grow. In summary, we are beginning 2026 with a strong foundation, a clear effective strategy, and confidence in our ability to create value, even as market conditions continue to shift. This quarter's results show the result of our Rogers Refined model. Through ongoing improvement, focused investment, and disciplined cost control, we keep our operations resilient and ready for change, including challenges from global trade shifts. Rodgers Refined is reflected in our team's commitment and agility. Their dedication to our shared mission enables us to meet uncertainty head-on and act on new opportunities as they arise. Now let me update you on our LEAP expansion project in eastern Canada. This quarter, we continued to progress on the construction activities related to the LEAP project, which is embedded in our strategy to support long-term growth and enhance our supply capabilities in central Canada. The construction site in Montreal remains active with significant progress on facility upgrades, electrical connections, and the integration of new refining technology. Our teams and contractors are working closely to keep the project aligned with our revised schedule. We are seeing tangible results as key infrastructure elements take shape while we are planning the commissioning process with suppliers and business partners. We continue to target a start-up date in the first half of 2027. This schedule reflects our focus on careful execution, taking into account current market conditions and our commitment to maintaining the highest standards of product quality. In addition, we are carrying out the LEAP project with an unwavering commitment to safety. Protecting our people remains our top priority, and we are dedicated to upholding rigorous standards and best practices throughout the organization. Coordinating a major capital project alongside a plant operating at capacity is complex, but our experience and planning are enabling us to advance construction without disrupting our central core business. Our estimate of the cost is completely unchanged, and we are confident that this expansion will boost our ability to serve customers more efficiently throughout central Canada. By increasing our eastern refining capacity, we can respond faster to demand shifts, reduce transportation requirements, and strengthen our overall supply chain. Now, I'll turn the call over to JS for a financial review.

Well, thank you, Mike, and good morning, everyone. I will begin my financial remarks on slide 10 with a high-level review of consolidated results before we get into the details of the two segments. Adjusted net earnings per share in the first quarter amounted to 19 cents compared to 15 cents in the first quarter last year. The increase was due to a favorable variance of over 7 million in adjusted EBITDA. This increase of 18% came mainly from the sugar segment, where our business benefited from some timing and non-recurring items while relying on strong sales margins. Free cash flow for the trading 12 months totaled $89 million, consistent with the same period last year. Overall, though, if we exclude timing differences in the payment of tax installments, free cash flow improved by over $11 million. The improvement was the result of stronger operating performance and tight control over working capital. This strong financial performance was delivered in the quarter when revenues declined year over year. Revenues for the quarter were just short of $300 million, down from $331 million in the same period last year. The reduction was largely due to a lower average rod number 11 sugar price and lower sales volume in the sugar segment, partially upset by favorable sales volumes in the maple segment. Although important in the overall performance of both of our business segments, Revenues and associated sales volume are not the primary drivers of our strategy. Our focus remains on delivering what matters most, consistent profitability as measured by adjusted EBITDA and robust free cash flow. Now let's take a moment to review the individual business segments, starting with our sugar segment, which drives about 85% of our profitability. Sales volume was 175,000 metric tons during the quarter, a reduction of about 21,000 tons from the same quarter last year, with a significant portion of the reduction attributable to lower export volumes. The decrease in export sales is mainly related to the current market dynamics, which do not favor the sales of refined sugar of Brazilian origin in the U.S. Although we are disappointed with the volume reductions, We want to point out that this sales category usually has a lower contributed margin. We also experienced a reduction in industrial sales with a non-recurring production issue at one of our key customers. This is the same issue that impacted the last few weeks of the fourth quarter of 2025 and has since been resolved. Overall, revenues in our sugar segment became by about 15% in the quarter to $226 million reflecting the decline in volumes that we have just discussed in a drop in the price for raw number 11 sugar. That being said, our refining margin continued to be healthy and mitigated the decrease. Despite these headwinds, we were able to report improved profitability in the quarter. Adjusted gross margin per ton rose to $304, an increase of $79 from the same period last year. A significant portion of the increase was attributable to favorable timing variances in non-recurring items related to procurement activities, raw sugar freight, and major maintenance programs. The positive adjusted growth margin was also supported by a higher sales margin associated with our disciplined pricing strategy. Adjusted EBITDA for the sugar segment reached $41 million, an increase of $7 million over last year. This performance underscores our focus on protecting margin and managing through volatile market cycles. Distribution costs increased slightly, reflecting an unexpected adjustment we made to our supply chain to meet the needs of our customers. Administration expenses were also slightly higher, mainly reflecting market-based increases in compensation and employees' benefits. Overall, the sugar segment delivered strong results in the first quarter, setting up the foundation for the remainder of 2026. The maple segment also delivered strong financial results in the first quarter, reflecting strong execution and healthy market demand. Revenues increased by 8% to $72 million, driven by higher sales volume as we continue to expand and take advantage of the growing global demand for this beloved sweetener. Interest in maple syrup remains robust, supported by positive customer trends and effective supply management. Adjusted EBITDA for maple was $5.8 million, a slight improvement over the same period last year, as we maintain our overall profitability through disciplined operations. Sales volume were 8% higher in the first quarter, supported by incremental demand from some of our established customers. Adjusted gross margin percentage at 10.6% was consistent with our recovery expectation and reflected the impact of consistent product mix sold during the period. If you recall, margin dipped below 10% in the second half of 2025 as we faced challenges related to mix of products. Over the last few months, we have strengthened our sourcing strategy and are expecting a more stable adjusted gross margin percentage for our maple segment going forward. Looking ahead, we remain focused on supporting our producers' partners and maintaining reliable access to supply as global demand for maple syrup continues to grow. Our strong and stable performance in maple reinforces the value of our diversified platform and positions us well to meet growing demand in this segment. From a capital allocation standpoint, we remain disciplined. We invested in our future by allocating $25 million to capital expenditures, with the bulk of that spent supporting the ongoing progress of our LEAP project. This investment reflects our joint commitment to growth and operational excellence. We continue to support the LEAP project with a diversified funding approach. Our financing plan for the project supports the expected cost, which continues to range between $280 and $300 million. In January, we further enhanced our financial flexibility with a successful issue of our ninth series convertible to ventures. Following the issuance of the eighth series last year, this issue completes the refinancing of sixth and seventh series, which matured in 2024 and 2025. This move anchored our liquidity position and ensures we have the resources to continue to fund our strategic priorities. Our balance sheet remains strong, supported by ample available credit and a robots-free cash flow profile. We maintain our quarterly dividend, reflecting our ongoing commitment to consistent shareholder returns. This approach positions us well to execute on our growth strategy while delivering value to our investors. With that, I will turn the call back over to Mike to provide a summary and outlook for 2026.