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 January 31, 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 accelerated filer
(as defined in Rule 126-2 of the Exchange Act). Yes No X
There were 2,500,000 common shares outstanding at March 5, 2003.
Total number of pages -18-
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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 January 31, 2003
(unaudited) and July 31, 2002 I-1
Statements of earnings and retained earnings
Six months ended January 31, 2003 (unaudited)
and 2002 (unaudited) I-2
Statements of earnings and retained earnings
Three months ended January 31, 2003 (unaudited)
and 2002 (unaudited) I-3
Statements of cash flows
Six months ended January 31, 2003 (unaudited)
and 2002 (unaudited) I-4
Notes to condensed financial statements
Three and six months ended January 31, 2003
and 2002 I-5
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS I-6
ITEM 4. CONTROLS AND PROCEDURES I-9
PART II. OTHER INFORMATION:
ITEM 4. SUBMISSSION OF MATTERS TO A VOTE OF SECURITY
HOLDERS II-1
ITEM 6. EXHIBITS AND REPORTS ON FORM 8K II-1
-2-
STERLING SUGARS, INC.
CONDENSED BALANCE SHEETS
January 31, July 31,
2003 2002
UNAUDITED NOTE
ASSETS: ------------- ------------
CURRENT ASSETS:
Cash and short-term investments $ 1,303,631 $ 3,866
Accounts receivable 2,845,762 1,281,542
Raw sugar and molasses inventories at
lower of cost or market 8,868,691 2,414,059
Operating supplies - at cost 691,391 753,550
Deferred income taxes 334,000 334,000
Other current assets 344,910 380,301
------------ ------------
TOTAL CURRENT ASSETS $ 14,388,385 $ 5,167,318
------------ ------------
Property, plant and equipment - net $ 23,440,564 $ 24,041,961
------------ ------------
Expenditures for future crops $ 759,309 $ 759,309
Notes receivable 347,224 376,082
Other assets 67,495 56,921
------------ ------------
$ 1,174,028 $ 1,192,312
------------ ------------
$ 39,002,976 $ 30,401,591
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY:
CURRENT LIABILITIES:
Notes Payable $ 3,538,000 $ 3,512,000
Accounts payable and accrued expenses 1,745,486 803,887
Due cane growers 7,656,017 857,425
Current portion long-term debt 618,250 628,905
------------ ------------
TOTAL CURRENT LIABILITIES $ 13,557,753 $ 5,802,217
------------ ------------
Long-term debt $ 3,590,625 $ 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 17,101,143 16,015,819
------------ ------------
$ 19,641,598 $ 18,556,274
------------ ------------
$ 39,002,976 $ 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)
SIX MONTHS ENDED JANUARY 31
---------------------------
2003 2002
REVENUES: ----------- -----------
Sugar and molasses sales $31,180,358 $22,806,521
Interest earned 781 1,728
Mineral leases and royalties 151,738 246,782
Gain (loss) on disposal of Assets 171,768 (223,560)
Other 1,236,621 1,547,574
----------- -----------
$32,741,266 $24,379,045
COSTS AND EXPENSES: ----------- -----------
Cost of products sold $30,269,836 $18,315,315
General and administrative 526,725 515,865
Interest expense 194,182 344,347
----------- -----------
$30,990,743 $19,175,527
----------- -----------
NET EARNINGS BEFORE INCOME TAXES $1,750,523 $ 5,203,518
INCOME TAXES 665,199 1,977,337
----------- -----------
NET EARNINGS (NOTE B) $ 1,085,324 $ 3,226,181
RETAINED EARNINGS AT BEGINNING OF PERIOD 16,015,819 15,024,027
----------- -----------
RETAINED EARNINGS AT END OF PERIOD $17,101,143 $18,250,208
=========== ===========
NET EARNINGS PER SHARE $ .43 $ 1.29
=========== ===========
See notes to condensed financial statements
I-2 -4-
STERLING SUGARS, INC.
STATEMENT OF EARNINGS AND RETAINED EARNINGS
(UNAUDITED)
THREE MONTHS ENDED JANUARY 31
-----------------------------
2003 2002
----------- -------------
REVENUES:
Sugar and molasses sales $22,739,432 $14,355,916
Interest earned - -
Mineral leases and royalties 65,464 120,484
Gain on disposal of assets 171,768 -
Other 798,251 700,256
----------- -----------
$23,774,915 $15,176,656
----------- -----------
COSTS AND EXPENSES:
Cost of products sold $19,921,672 $ 9,441,775
General and administrative 266,958 291,492
Interest expense 112,876 175,922
----------- -----------
$20,301,506 $ 9,909,189
----------- -----------
NET EARNINGS BEFORE INCOME TAXES $3,473,409 $ 5,267,467
INCOME TAXES 1,319,894 2,000,998
----------- -----------
NET EARNINGS (NOTE B) $2,153,513 $ 3,266,469
RETAINED EARNINGS AT BEGINNING OF PERIOD 14,947,630 14,983,739
----------- -----------
RETAINED EARNINGS AT END OF PERIOD $17,101,143 $18,250,208
=========== ===========
NET EARNINGS (LOSS) PER SHARE $ .86 $ 1.31
=========== ===========
See notes to condensed financial statements
I-3 -5-
STERLING SUGARS, INC.
STATEMENT OF CASH FLOWS
(UNAUDITED)
SIX MONTHS ENDED JANUARY 31
---------------------------
2003 2002
OPERATING ACTIVITIES: ------------ ------------
Net earnings $1,085,324 $ 3,226,181
Adjustments to reconcile net earnings to net
cash provided by operating activities:
Depreciation 985,553 1,016,361
(Gain) loss on disposl of assets ( 171,768) 223,560
Changes in operating assets and liabilities:
Increase in accounts receivable (1,564,220) (3,842,219)
Increase in inventories (6,392,473) (20,005,817)
Increase in accounts payable accrued
expenses and due cane growers 7,729,536 11,148,438
Other items - net 129,138 104,221
----------- ------------
Net cash provided (Used In) Operating Activities $1,801,090 $ (8,129,275)
------------- -------------
INVESTING ACTIVITIES:
(Increase) decrease in Notes receivable 28,858 ( 664)
Purchase of property, plant and equipment ( 453,764) (409,701)
Proceeds from sale of assets 132,710 61,273
------------- -------------
Net cash used in investing activities $( 292,196) $( 349,092)
------------- -------------
FINANCING ACTIVITIES:
Proceeds from short-term notes payable
and long-term debt $ 22,724,340 $ 30,690,668
Payments on short-term notes payable
and long-term debt (22,933,469) (22,233,602)
------------ -------------
Net cash provided by (used in)
financing activities $( 209,129) $ 8,457,066
------------- -------------
Increase (decrease) in cash and temporary
investments $ 1,299,765 $ (21,301)
Cash and temporary investments at the
beginning of the period 3,866 33,949
------------- -------------
Cash and temporary investments at the
end of the period $ 1,303,631 $ 12,648
============= =============
Supplemental information:
Interest paid $ 220,946 $ 379,284
============ ============
Income taxes paid $ 127,435 $ 41,802
============ ============
See notes to condensed financial statements
I-4 -6-
STERLING SUGARS, INC.
NOTES TO CONDENSED FINANCIAL STATEMENTS
THREE AND SIX MONTHS ENDED JANUARY 31, 2003 AND 2002
(UNAUDITED) (CONTINUED)
A. CONDENSED FINANCIAL STATEMENTS:
The condensed balance sheet as of January 31, 2003,
the statements of earnings and retained earnings for the three
and six months ending January 31, 2003 and 2002, and the condensed
statements of cash flows for the six 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 January 31, 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 the Form 10-K filed with the
Securities and Exchange Commission on October 28, 2002. The
results of operations for the period ending January 31, 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-5 -7-
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 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. 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 20.33 cents per pound compared to the 20.41 cents per pound
for the six months ended January 31, 2002. For the six month period
ending January 31, 2001, the Company received 18.93 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-6 -8-
Blackstrap molasses production is estimated at 4.51 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
4,722,116 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 $60 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 six months ended January 31, 2003
and 2002 were as follows:
2003 2002
----------- -----------
Raw sugar sales $30,040,229 $20,820,227
Blackstrap molasses 1,140,129 1,986,294
----------- -----------
$31,180,357 $22,806,521
=========== ===========
Sugar sales were up substantially for the six months ended January
31, 2003 compared to the same period in 2002 because of greater demand
from sugar refiners. Molasses sales were down compared to the same
period in 2002 because of lower demand for the product for the six
month period ended January 31, 2003.
Interest Earned:
Interest earned for the six month period ending January 31,
2003 was $781 compared to $1,728 for the same period last year.
Interest earned was $0 for the three month periods ending January
31, 2003 and 2002.
Mineral Leases and Royalties:
Income from Mineral leases and royalties were down for the six
months ended January 31, 2003 totaling $151,738 compared to $246,782 for
the same period last year. Royalties for the two periods were $128,125
and $239,545, respectively. Income from Mineral leases for the same
periods were $23,613 and $7,237, 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
have been 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-7 -9-
DISPOSAL OF ASSETS:
The Company recorded a gain of $171,768 for the six months ended
January 31, 2003 principally from the sale of property located
in St. Mary Parish. The Company sustained a loss for the previous period
from the writeoff of obsolete equipment.
Other Revenues:
Other revenues, which consist mainly of miscellaneous income items
and cane land rentals, were $1,236,621 for the six months ended January
31, 2003 and $1,547,574 for the six months ended January 31, 2002. Cane
land rentals for the current period were $1,129,503 compared to
$1,220,134 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 crop.
Cost of Products Sold:
Cost of products sold totaled $30,269,836 for the six months ended
January 31, 2003 and $18,315,315 for the six months ended January 31,
2002. The large increase in this account results from the increase in
sales of $8,373,837. 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 next six months and
other factors that may affect the earnings or loss of 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 estimated.
General and Administrative Expenses:
General and administrative expenses were $526,725 for the six
months ended January 31, 2003 and $515,865 for the same period last
year. Expenses were comparable for the two years.
I-8 -10-
Interest Expense:
Interest expense was $194,182 compared to $344,347 for the six
months ended January 31, 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 January 31, 2003 was $3,538,000 compared to $11,921,000
at January 31, 2002. The increased shipments of sugar for the six months
ended January 31, 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 for the three and six month periods
ending January 31, 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 January 31, 2003, the Company had working capital of
$830,632 compared to a negative working capital of $634,899 at July
31, 2001. 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 January 31, 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-9 -11-
PART II - OTHER INFORMATION
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
The Company held its Annual Meeting of Stockholders on
November 21, 2002. Stockholders voted on the election of
directors to serve for one year or until their successors are
elected and qualified. The voting results were as follows:
FOR WITHHELD
----- --------
Bernard E. Boudreaux, Jr. 2,190,907 1,250
Dr. James Patout Burns, Jr. 2,190,907 1,250
Craig P. Caillier 2,190,907 1,250
Peter V. Guarisco 2,190,907 1,250
Victor Guarisco, II 2,190,907 1,250
Edwin Patout 2,190,907 1,250
Mark Patout 2,190,907 1,250
ITEM 6 - EXHIBITS AND REPORTS ON FORM 8K
(a) Exhibits
Exhibit Description Page
----------------------------------------------------
99.1 Section 906 Certification of Chief 18
Executive Officer
99.2 Section 906 Certification of Chief 18
Financial Officer
(b) Reports on Form 8K
There were no reports filed on Form 8K for the period.
II-1 -12-
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 March 13, 2003 By /s/ Craig P. Caillier
-------------- ---------------------
CRAIG P. CAILLIER
PRESIDENT AND
CHIEF EXECUTIVE OFFICER
DATE March 13, 2003 By /s/ Stanley H. Pipes
-------------- ---------------------
STANLEY H. PIPES
VICE PRESIDENT AND TREASURER
II-2 -13-
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 -14-
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: March 13, 2003
-----------------
/s/ Craig P. Caillier
-----------------------
Craig P. Caillier
President
II-4 -15-
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 -16-
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: March 13, 2003
-----------------
/s/ Stanley H. Pipes
--------------------
Stanley H. Pipes
Vice President & Treasurer
II-6 -17-
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 six months ending January 31, 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: March 13, 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 six months ending January 31, 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: March 13, 2003 /s/ Stanley H. Pipes
----------------- ---------------------
Stanley H. Pipes
Vice President & Treasurer
II-7 -18-