SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
FORM 10-Q
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended April 30, 2003
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from_________________to__________________
COMMISSION FILE NUMBER 0-1287
STERLING SUGARS, INC.
____________________________________________________________________
Exact name of registrant as specified in its charter
Louisiana 72-0327950
_______________________________ ______________________________
State or other jurisdiction of IRS employer identification
incorporation or organization number
P. O. Box 572, Franklin, La. 70538
____________________________________________________________________
Address of principal executive offices Zip Code
Registrant's telephone number including area code 337 828 0620
Not Applicable
____________________________________________________________________
Former name, former address and former fiscal year, if changed since
last report.
Indicate by check mark whether registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities
Exchange Act of 1934 during the preceding 12 months (or such shorter
period that the registrant was required to file such reports), and
(2) has been subject to such filing requirements for the past 90 days.
YES X NO
Indicate by check mark whether the registrant is an accellerated filer
(as defined in Rule 12b-2 in the Exchange Act).
YES NO X
There were 2,500,000 common shares outstanding at May 30, 2003.
Total number of pages 19
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STERLING SUGARS, INC.
I N D E X
PAGE
NUMBER
PART I: FINANCIAL INFORMATION:
ITEM 1. FINANCIAL STATEMENTS
Condensed balance sheets April 30, 2003
(unaudited) and July 31, 2002 I-1
Statements of earnings and retained earnings
Nine months ended April 30, 2003 (unaudited)
and 2002 (unaudited) I-2
Statements of earnings and retained earnings
Three months ended April 30, 2003 (unaudited)
and 2002 (unaudited) I-3
Statements of cash flows
Nine months ended April 30, 2003 (unaudited)
and 2002 (unaudited) I-4
Notes to condensed financial statements
Three and nine months ended April 30, 2003
and 2002 I-6
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS I-7
ITEM 4. CONTROLS AND PROCEDURES I-10
PART II. OTHER INFORMATION:
ITEM 5. OTHER INFORMATION II-1
ITEM 6. EXHIBITS AND REPORTS ON FORM 8K II-1
-2-
STERLING SUGARS, INC.
CONDENSED BALANCE SHEETS
April 30, July 31,
2003 2002
UNAUDITED NOTE
ASSETS: ---------------------------
CURRENT ASSETS:
Cash and short-term investments $ 9,455 $ 3,866
Accounts receivable 1,658,514 1,281,542
Raw sugar and molasses inventories at
lower of cost or market 3,327,049 2,414,059
Operating supplies - at cost 703,960 753,550
Deferred income taxes 334,000 334,000
Other current assets 492,438 380,301
------------ ------------
TOTAL CURRENT ASSETS $ 6,525,416 $ 5,167,318
------------ ------------
Property, plant and equipment - net $ 23,717,180 $ 24,041,961
------------ ------------
Expenditures for future crops $ 759,309 $ 759,309
Notes receivable 341,630 376,082
Other assets 67,493 56,921
------------ ------------
$ 1,168,432 $ 1,192,312
------------ ------------
$ 31,411,028 $ 30,401,591
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY:
CURRENT LIABILITIES:
Notes Payable $ 954,000 $ 3,512,000
Accounts payable and accrued expenses 643,684 803,887
Due cane growers 5,495,732 857,425
Current portion long-term debt 618,250 628,905
------------ ------------
TOTAL CURRENT LIABILITIES $ 7,711,666 $ 5,802,217
------------ ------------
Long-term debt $ 3,513,187 $ 3,830,100
------------ ------------
Deferred income taxes $ 2,213,000 $ 2,213,000
------------ ------------
STOCKHOLDERS' EQUITY:
Common stock $ 2,500,000 $ 2,500,000
Additional paid in capital 40,455 40,455
Retained earnings 15,432,720 16,015,819
------------ ------------
$ 17,973,175 $ 18,556,274
------------ ------------
$ 31,411,028 $ 30,401,591
============ ============
NOTE: The balance sheet at July 31, 2002 has been taken from the
audited financial statements at that date, and condensed.
See notes to condensed financial statements
I-1 -3-
STERLING SUGARS, INC.
STATEMENT OF EARNINGS AND RETAINED EARNINGS
(UNAUDITED)
NINE MONTHS ENDED APRIL 30
---------------------------
2003 2002
---- ----
REVENUES:
Sugar and molasses sales $ 36,867,304 $ 32,917,426
Interest earned 2,114 3,908
Mineral leases and royalties 224,520 413,458
Gain (Loss) on disposal of assets 171,137 ( 214,668)
Other 1,307,775 1,584,071
------------ ------------
$ 38,572,850 $ 34,704,195
------------ ------------
COSTS AND EXPENSES:
Cost of products sold $ 38,520,495 $ 30,378,159
General and administrative 685,540 843,746
Interest expense 307,298 553,157
------------ ------------
$ 39,513,333 $ 31,775,062
------------ ------------
NET EARNINGS (LOSS) BEFORE INCOME TAXES $( 940,483)$ 2,929,133
INCOME TAXES (CREDIT) ( 357,384) 1,113,071
------------ ------------
NET EARNINGS (LOSS) $( 583,099)$ 1,816,062
RETAINED EARNINGS AT BEGINNING OF PERIOD 16,015,819 15,024,027
------------ ------------
RETAINED EARNINGS AT END OF PERIOD $ 15,432,720 $ 16,840,089
============ ============
NET EARNINGS (LOSS) PER SHARE $ (.23)$ .73
============ ============
See notes to condensed financial statements
I-2 -4-
STERLING SUGARS, INC.
STATEMENT OF EARNINGS AND RETAINED EARNINGS
(UNAUDITED)
THREE MONTHS ENDED APRIL 30
-----------------------------
2003 2002
---- ----
REVENUES:
Sugar and molasses sales $ 5,686,946 $10,110,905
Interest earned 1,333 2,180
Mineral leases and royalties 72,782 166,676
Gain (Loss) on disposal of assets (631) 8,892
Other 71,154 36,497
------------ ------------
$ 5,831,584 $10,325,150
------------ ------------
COSTS AND EXPENSES:
Cost of products sold $ 8,250,659 $12,062,844
General and administrative 158,815 327,881
Interest expense 113,116 208,810
------------ ------------
$ 8,522,590 $12,599,535
------------ ------------
NET LOSS BEFORE INCOME TAXES $(2,691,006) $(2,274,385)
INCOME TAXES (CREDIT) (1,022,583) ( 864,266)
------------ ------------
NET LOSS $(1,668,423) $(1,410,119)
RETAINED EARNINGS AT BEGINNING OF PERIOD 17,101,143 18,250,208
------------ ------------
RETAINED EARNINGS AT END OF PERIOD $15,432,720 $16,840,089
============ ============
NET LOSS PER SHARE $( .67) $( .56)
============ ============
See notes to condensed financial statements
I-3 -5-
STERLING SUGARS, INC.
STATEMENT OF CASH FLOWS
(UNAUDITED)
NINE MONTHS ENDED APRIL 30
---------------------------
2003 2002
---- ----
OPERATING ACTIVITIES:
Net earnings (Loss) $( 583,099) $ 1,816,062
Adjustments to reconcile net earnings to net
cash provided by operating activities:
Depreciation 1,478,330 1,525,271
(Gain) loss on disposal of assets ( 171,137) 214,668
Changes in operating assets and liabilities:
Increase in accounts receivable ( 376,972) ( 1,581,574)
Increase in inventories ( 863,400) (10,292,176)
Increase in accounts payable accrued
expenses and due cane growers 4,467,449 6,080,670
Other items - net 301,787 ( 147,374)
------------ ------------
Net cash provided by operating activities $ 4,252,958 $( 2,384,453)
------------ ------------
INVESTING ACTIVITIES:
Collection on notes receivable $ 34,452 $ 36,245
Issuance of notes receivable - ( 20,000)
Purchase of property, plant and equipment (1,605,431) ( 876,088)
Proceeds from sale of assets 634,610 61,887
------------- ------------
Net cash used in investing activities $ ( 936,369) $( 797,956)
------------ ------------
FINANCING ACTIVITIES:
Proceeds from short-term notes payable
and long-term debt $ 25,557,200 $ 34,425,667
Payments on short-term notes payable
and long-term debt (28,868,200) (31,273,740)
------------ ------------
Net cash provided by financing activities $( 3,311,000) $ 3,151,927
------------ ------------
Increase (decrease) in cash and temporary
investments $ 5,589 $( 30,482)
Cash and temporary investments at the
beginning of the period 3,866 33,949
------------ ------------
Cash and temporary investments at the
end of the period $ 9,455 $ 3,467
============= ============
Continued
See notes to condensed financial statements
I-4 -6-
STERLING SUGARS, INC.
STATEMENT OF CASH FLOWS
(UNAUDITED)
NINE MONTHS ENDED APRIL 30
----------------------------
2003 2002
---- ----
Supplemental information:
Interest paid $ 234,914 $ 588,150
=========== ===========
Income taxes paid $ 142,945 $ 32,610
=========== ===========
I-5 -7-
STERLING SUGARS, INC.
NOTES TO CONDENSED FINANCIAL STATEMENTS
THREE AND NINE MONTHS ENDED APRIL 30, 2003 AND 2002
(UNAUDITED) (CONTINUED)
A. CONDENSED FINANCIAL STATEMENTS:
The condensed balance sheet as of April 30, 2003,
the statements of earnings and retained earnings for the three
and nine months ending April 30, 2003 and 2002, and the condensed
statements of cash flows for the nine month periods then
ended have been prepared by the Company, without audit. In
the opinion of management, all adjustments (which include
only normal recurring adjustments) necessary to present
fairly the financial position, results of operations and
cash flows at April 30, 2003 and for all periods presented
have been made.
Certain information and footnote disclosures normally
included in financial statements prepared in accordance with
generally accepted accounting principles have been condensed
or omitted. It is suggested that these condensed financial
statements be read in conjunction with the July 31, 2002
report to stockholders and/or the Form 10-K filed with
the Securities and Exchange Commission on October 28, 2002.
The results of operations for the period ending April 30, 2003
are not necessarily indicative of the operating results expected
for the full year.
B. ANTICIPATED LOSS
Management believes the Company will incur a loss for the year
ended July 31, 2003. The anticipated loss stems from
losses sustained from Tropical Storm Isadore and Hurricane Lili
both of which struck the gulf coast just before the start of the
grinding season causing considerable damage to the cane crop in
this region. See also the "Anticipated Loss" caption under
"Management's Discussion and Analysis of Financial Condition and
Results of Operations".
I-6 -8-
STERLING SUGARS, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Forward -Looking Information:
This Form 10-Q contains certain statements that may be deemed
"forward-looking statements." All statements, other than historical
statements, in this Form 10-Q that address activities, events or
developments that the Company intends, expects, projects, believes or
anticipates will or may occur in the future, are forward-looking
statements. Such statements are based on assumptions and analysis made
by management of the Company in light of its experience and its
perception of historical trends, current conditions, expected future
developments and other factors it believes are appropriate. The
forward-looking statements in the Form 10-Q are also subject to a number
of material risks and uncertainties, including weather conditions in
south Louisiana during the sugarcane growing season, the success of
sugarcane pest and disease abatement procedures, the quality and quantity
of the sugarcane crops, mechanical failures at the Company's sugar mill,
and prices for sugar and molasses produced by the Company. Such
forward-looking statements are not guarantees of future performance and
actual results. Development and business decisions may differ from
those envisioned by such forward-looking statements.
Results of Operations:
General Information:
The Company's grinding season started on October 1, 2002 and
because of Hurricane Lili which occurred on October 3rd, operations
were suspended until October 10th. The Company completed grinding on
January 22, 2003. Last year the Company started on September 18, 2001
and ended December 23, 2001. The Company processed 1,046,748 tons of
sugarcane compared to 1,027,102 tons of sugarcane the previous year.
The Company processed 1,063,646 tons for the 2000 crop.
Sugar yield for the past crop is estimated at 173 pounds per ton of
cane compared to 207 and 202 pounds per ton of cane the previous two
years, respectively. The lower yield for the past crop resulted from
Tropical Storm Isadore and Hurricane Lili. Also, weather during the
past crop was unusually wet which caused higher costs in harvesting and
processing the cane. It is beleived the higher processing cost and lower
yield of raw sugar will result in a loss for the year.
The price the Company receives for its raw sugar is currently
averaging 20.57 cents per pound compared to the 20.45 cents per pound
for the year ended July 31, 2002. For the year ended July 31, 2001,
the Company received 19.24 cents per pound. The Company systematically
sells on the futures market throughout the year, which tends to average
out the highs and lows over a period of time.
I-7 -9-
Blackstrap molasses production is estimated at 4.40 gallons per
ton of cane compared to 5.36 and 5.63 gallons per ton the previous two
years, respectively. Total production of molasses is estimated at
4,600,621 gallons this year compared to 5,514,088 gallons last year and
5,987,764 gallons for the previous year. The price for blackstrap
molasses is currently quoted at $57.50 per ton compared to $67.50 and
$57.50 per ton for the previous two years, respectively.
Sugar and Molasses Sales:
Sugar and molasses sales for the nine months ended April 30, 2003
and 2002 were as follows:
2003 2002
----------- -----------
Raw sugar sales $35,525,202 $31,006,718
Blackstrap molasses 1,342,102 1,910,708
----------- -----------
$36,867,304 $32,917,426
=========== ===========
Sugar sales were up substantially for the nine months ended April
30, 2003 compared to the same period in 2002 because of greater demand
early during the season from sugar refiners. At April 30, 2003, the
Company had on hand approximately 8,000 tons of raw sugar compared to
26,597 last year. The Company expects ship all sugar by the end of
July, 2003. Molasses sales were down compared to the same period in
2002 reflecting the lower production and sales for the current year.
All molasses production had been shipped as of April 30, 2003 whereas the
had an inventory of 667 tons the previous year.
Interest Earned:
Interest earned for the nine month period ending April 30,
2003 was $2,114 compared to $3,908 for the same period last year.
Interest earned was $1,333 for the three month period ending April 30,
2003 and $2,180 for same period ending in 2002.
Mineral Leases and Royalties:
Income from Mineral leases and royalties were down for the nine
months ended April 30, 2003 totaling $224,520 compared to $413,458 for
the same period last year. Royalties for the two periods were $195,813
and $383,430, respectively. Income from Mineral leases for the same
periods were $28,707 and $30,028, respectively. In November, 2000, the
Company began receiving royalty payments from a new well named Zenor A16
located near Patterson, La. Payments received from the Zenor A16 well
are being used to reduce the Company's long-term debt.
The Company's activities with respect to oil and gas are limited to
the granting of leases and the collection of bonuses, delay rentals and
landowner royalties thereunder. Accordingly, only limited information,
furnished primarily by the Company's lessees, has been included with
respect to oil and gas operations affecting Company lands. Complete
information respecting these and related matters, such as proved
reserves, are unavailable to the Company and cannot be obtained without
unreasonable effort and expense.
I-8 -10-
DISPOSAL OF ASSETS:
The Company recorded a gain of $171,137 for the nine months ended
April 30, 2003 principally from the sale of property located in LaFourche
and St. Mary Parishes. The Company sustained a loss of $214,668 for the
previous period from the write off of obsolete equipment.
Other Revenues:
Other revenues, which consist mainly of miscellaneous income items
and cane land rentals, were $1,307,775 for the nine months ended April
30, 2003 and $1,584,071 for the nine months ended April 30, 2002. Cane
land rentals for the current period were $1,162,828 compared to
$1,316,279 for the same period last year. Cane land rentals were down
because of the aforementioned hurricane, tropical storm and other
inclement weather experienced during the past crop.
Cost of Products Sold:
Cost of products sold totaled $38,520,495 for the nine months ended
April 30, 2003 and $30,378,159 for the nine months ended April 30,
2002. The large increase in this account results from the increase in
sales of $3,949,878 and higher weather related processing costs. The
costs charged to this account are relative to the sales of raw sugar
and molasses.
ANTICIPATED LOSS:
The Company anticipates a loss for the year ended July 31, 2003.
Management believes the loss for the year ended July 31, 2003 will be in
the range of $2,000,000 to $2,500,000 before taxes. However, Congress
passed the Omnibus Budget Bill in mid-February which included $3.1
billion in disaster assistance. Sixty million of this amount was
allocated to the Louisiana sugar industry. At this time, it is not
known when or how the funds will be divided in the industry. Should any
share due the Company become available before July 31, 2003, it could
have a significant impact on the bottom line and possibly reduce or
eliminate the loss anticipated by the Company.
The estimated loss is based on management's best estimates taking
into consideration budgeted expenditures for the period ending July 31,
2003 and other factors that may affect the earnings or losses sustained
by the Company. Circumstances and events that may happen in the future
cannot be predicted and the range of the estimated loss could be
significantly different from that projected.
General and Administrative Expenses:
General and administrative expenses were $685,540 for the nine
months ended April 30, 2003 and $843,746 for the same period last
year. The $158,206 reduction results primarily from decreased Board
of Directors fees, bonuses and hospitalization costs. These three items
were $136,486 less in 2003 compared to 2002.
I-9 -11-
Interest Expense:
Interest expense was $307,298 compared to $553,157 for the nine
months ended April 30, 2003 and 2002, respectively. The reduced
interest cost resulted from lower interest rates and increased
shipments of sugar for the current period. Short-term debt
outstanding at April 30, 2003 was $954,000 compared to $3,512,000
at April 30, 2002. The increased shipments of sugar for the nine months
ended April 30, 2003 compared to the same period last year generated
larger cash flows which resulted in lower short-term borrowing
requirements for the current year.
Income Taxes:
The income tax expense (credit) for the three and nine month
periods ending April 30, 2003 and 2002 were recorded at the statutory
rate of 38 percent, which reflects the 34 percent federal corporate rate
plus 4 percent state income taxes.
Liquidity and Capital Resources:
At April 30, 2003, the Company had negative working capital of
$1,186,250 compared to a negative working capital of $634,899 at July
31, 2002. Due to the seasonal nature of the industry, it is not
uncommon to have a negative working capital balance at July 31 of
each year or just before the start of the new season.
For the period February 1, 2003 to September 30, 2003, the Company
has budgeted $3,097,850 for repairs and $3,453,000 for capital
improvements to the factory. The latter amount includes a new boiler
budgeted at $2,600,000. Management believes the new boiler will
significantly reduce the amount of natural gas used and generate
substantial savings given the current world situation and uncertainty
about oil and gas prices in the fall of 2003. The Company expects to
finance some of these expenditures internally with any excess financed
short-term or long-term through a bank with which the Company has a
$12,000,000 line of short-term credit.
Item 4. Disclosure Controls
Our principal executive officer and principal accounting officer
have evaluated our disclosure controls and procedures within 90 days
prior to the date of filing of this Quarterly Report on Form 10-Q for
the period ending April 30, 2003. They believe that our current
internal controls and procedures are effective and designed to ensure
that information required to be disclosed by us in our periodic reports
is recorded, processed, summarized and reported, within the appropriate
time periods specified by the SEC, and that such information is
accumulated and communicated to our principal executive officer and
principal accounting officer as appropriate to allow timely decisions to
be made regarding required disclosure. Subsequent to the date of the
evaluation, there were no significant corrective actions taken by us or
other changes made to these internal controls. Management does not
believe there were changes in other factors that could significantly
affect these controls subsequent to the date of the evaluation.
I-10 -12-
PART II - OTHER INFORMATION
ITEM 5 - OTHER INFORMATION
On February 21, 2003, J. Patout Burns resigned from the
Company's Board of Directors. Additionally, Edwin Patout,
Mark Patout and Craig P. Caillier resigned from the
Company's Board of Directors on May 16, 2003. The
resigning directors did not give the Company reasons for
their resignations. Mr. Caillier remains in his position
as President and Chief Executive Officer of the Company.
The following four persons were appointed to the Company's
Board of Directors to fill the vacant positions on May
16, 2003: James R. Keys, Frank William Patout, Robert B.
Patout, and William S. Patout, III.
ITEM 6 - EXHIBITS AND REPORTS ON FORM 8K
(a) Exhibits
Exhibit Description Page
----------------------------------------------------
99.1 Section 906 Certification of Chief 19
Executive Officer
99.2 Section 906 Certification of Chief 19
Financial Officer
(b) Reports on Form 8K - There were no reports on Form 8K
filed for the period.
II-1 -13-
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act
of 1934, the registrant has duly caused this report to be signed
on its behalf by the undersigned thereunto duly authorized.
STERLING SUGARS, INC.
---------------------
(REGISTRANT)
DATE June 11, 2003 By /s/ Craig P. Caillier
--------------------------- ---------------------
CRAIG P. CAILLIER
PRESIDENT AND
CHIEF EXECUTIVE OFFICER
DATE June 11, 2003 By /s/ Stanley H. Pipes
---------------------------- ---------------------
STANLEY H. PIPES
VICE PRESIDENT AND TREASURER
(PRINCIPAL FINANCIAL AND
ACCOUNTING OFFICER)
II-2 -14-
CERTIFICATIONS
I, Craig P. Caillier, certify that:
1. I have reviewed this quarterly report on Form 10-Q of Sterling Sugars,
Inc.;
2. Based on my knowledge, this quarterly report does not contain any
untrue statement of a material fact or omit to state a material fact
necessary to make the statements made, in light of the circumstances
under which such statements were made, not misleading with respect to
the period covered by this quarterly report;
3. Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all
material respects the financial condition, results of operations and
cash flows of the registrant as of, and for, the periods presented in
this quarterly report;
4. The registrant's other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures
(as defined in Exchange Act Rules 13a-14 and 15d-14) for the registrant
and we have:
a) designed such disclosure controls and procedures to ensure that
material information relating to the registrant, including its
consolidated subsidiaries, is made known to us by others within
those entities, particularly during the period in which this
quarterly report is being prepared;
b) evaluated the effectiveness of the registrant's disclosure controls
and procedures as of a date within 90 days prior to the filing date
of this quarterly report (the "Evaluation Date"); and
c) presented in this quarterly report our conclusions about the
effectiveness of the disclosure controls and procedures based on
our evaluation as of the Evaluation Date;
5. The registrant's other certifying officers and I have disclosed, based
on our most recent evaluation, to the registrant's auditors and the
audit committee of registrant's board of directors (or persons
performing the equivalent function):
a) all significant deficiencies in the design or operation of internal
controls which could adversely affect the registrant's ability to
record, process, summarize and report financial data and have
identified for the registrant's auditors any material weaknesses in
internal controls; and
b) any fraud, whether or not material, that involves management or
other employees who have a significant role in the registrant's
internal controls; and
II-3 -15-
6. The registrant's other certifying officers and I have indicated in this
quarterly report whether or not there were significant changes in
internal controls or in other factors that could significantly affect
internal controls subsequent to the date of our most recent evaluation,
including any corrective actions with regard to significant deficiencies
and material weaknesses.
Date: June 11, 2003
-----------------
/s/ Craig P. Caillier
-----------------------
Craig P. Caillier
President
II-4 -16-
CERTIFICATIONS
I, Stanley H. Pipes, certify that:
1. I have reviewed this quarterly report on Form 10-Q of Sterling Sugars,
Inc.;
2. Based on my knowledge, this quarterly report does not contain any
untrue statement of a material fact or omit to state a material fact
necessary to make the statements made, in light of the circumstances
under which such statements were made, not misleading with respect to
the period covered by this quarterly report;
3. Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all
material respects the financial condition, results of operations and
cash flows of the registrant as of, and for, the periods presented in
this quarterly report;
4. The registrant's other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures
(as defined in Exchange Act Rules 13a-14 and 15d-14) for the registrant
and we have:
a) designed such disclosure controls and procedures to ensure that
material information relating to the registrant, including its
consolidated subsidiaries, is made known to us by others within
those entities, particularly during the period in which this
quarterly report is being prepared;
b) evaluated the effectiveness of the registrant's disclosure controls
and procedures as of a date within 90 days prior to the filing date
of this quarterly report (the "Evaluation Date"); and
c) presented in this quarterly report our conclusions about the
effectiveness of the disclosure controls and procedures based on
our evaluation as of the Evaluation Date;
5. The registrant's other certifying officers and I have disclosed, based
on our most recent evaluation, to the registrant's auditors and the
audit committee of registrant's board of directors (or persons
performing the equivalent function):
a) all significant deficiencies in the design or operation of internal
controls which could adversely affect the registrant's ability to
record, process, summarize and report financial data and have
identified for the registrant's auditors any material weaknesses in
internal controls; and
b) any fraud, whether or not material, that involves management or
other employees who have a significant role in the registrant's
internal controls; and
II-5 -17-
6. The registrant's other certifying officers and I have indicated in this
quarterly report whether or not there were significant changes in
internal controls or in other factors that could significantly affect
internal controls subsequent to the date of our most recent evaluation,
including any corrective actions with regard to significant deficiencies
and material weaknesses.
Date: June 11, 2003
-----------------
/s/ Stanley H. Pipes
--------------------
Stanley H. Pipes
Vice President & Treasurer
II-6 -18-
Exhibit 99.1
CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the Quarterly Report of Sterling Sugars, Inc.
(the "Company") on Form 10-Q for the quarterly period ended April 30, 2003
as filed with the Securities and Exchange Commission on the date hereof
(the "Report"), I, Craig P. Caillier, President and Chief Executive Officer
of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, to my knowledge
that:
(1) The Report fully complies with the requirements of section 13(a)
or 15(d) of the Securities Exchange Act of 1934; and
(2) The information contained in the Report fairly presents, in all
material respects, the financial condition and results of
operations of the Company.
/s/ Craig P. Caillier
Date: June 11, 2003 ---------------------
----------------- Craig P. Caillier
President and Chief Executive Officer
Exhibit 99.2
CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the Quarterly Report of Sterling Sugars, Inc.
(the "Company") on Form 10-Q for the quarterly period ended April 30, 2003
as filed with the Securities and Exchange Commission on the date hereof
(the "Report"), I, Stanley H. Pipes, Vice President & Treasurer of the
Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant
to Section 906 of the Sarbanes-Oxley Act of 2002, to my knowledge that:
(1) The Report fully complies with the requirements of section 13(a)
or 15(d) of the Securities Exchange Act of 1934; and
(2) The information contained in the Report fairly presents, in all
material respects, the financial condition and result of
operations of the Company.
Date: June 11, 2003 /s/ Stanley H. Pipes
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Stanley H. Pipes
Vice President & Treasurer
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