Imperial Sugar Company Reports First Quarter Fiscal 2012 Results

Imperial Sugar Company (NASDAQ:IPSU) today reported a net loss for the fiscal first quarter ended December 31, 2011 of $3.5 million, or $0.29 per share, on net sales of $227.7 million. Results for the same period of the prior fiscal year were a loss of $8.9 million, or $0.75 per share, on net sales of $227.4 million.

"Imperial’s results continue to be affected by the margin compression experienced in the second half of last fiscal year, driven by high raw sugar prices and competitive pricing dynamics,” commented John Sheptor, president and CEO of Imperial Sugar, "although we were able to increase prices during the quarter sufficient to improve margins on a consecutive quarter basis. Production rates at the Port Wentworth refinery in the first quarter were largely unchanged and costs remained high. We continue to focus on operating reliability and efficiency to improve results.”

Revenues for the first quarter were unchanged as 18% higher sales prices offset a 16% reduction in sales volumes relating principally to the contribution of the Gramercy refinery to Louisiana Sugar Refining LLC in January 2011. Gross margins on a hedge accounting basis and excluding the impact of LIFO inventory reductions declined to 1.2% of sales in the quarter ended December 31, 2011 from 1.4% in the same period of the prior year, as increases in raw sugar costs exceeded sales price improvements. On a consecutive quarter basis, gross margin on a hedge accounting basis excluding LIFO improved from a negative 4.2% in the quarter ended September 30, 2011.

Sheptor continued, "We have maintained compliance with the terms of our revolving credit agreement and are exploring opportunities to improve liquidity. We are in the late stages of exploring with our partner the potential sale of our interest in Wholesome Sweeteners to a third party.”

Capital expenditures during first quarter of fiscal 2012 were $4.2 million, principally for safety, environmental and equipment replacement projects. The Company reported that it had undrawn availability under its amended revolving credit agreement of $18.4 million, at February 7, 2012 after deducting $70.1 million of borrowings.

Conference Call Details

Company officials will conduct a conference call starting at 11:00 a.m. Eastern, Thursday, February 9, 2012. Imperial Sugar President and CEO, John Sheptor, and Senior Vice President and CFO, Hal Mechler, will discuss the Company’s operating results for its first fiscal quarter ended December 31, 2011, its current financial position and its business strategies.

Participants wishing to listen and participate in a brief question-and-answer session after the presentation can dial 1-866-730-5769 and enter the Participant Passcode: 55940285. The conference call can also be accessed via live audio webcast by visiting Imperial Sugar’s web site at http://www.imperialsugarcompany.com/investor-relations and clicking on the "Q1 2012 Imperial Sugar Earnings Conference Call” icon under "Investor Relations”.

For those who are unable to listen to the call during its live broadcast, a replay of the entire presentation will be available on the company’s web site beginning one hour following the conclusion of the call. In addition to the webcast replay, a telephone replay will also be available beginning one hour following the conclusion of the call that can be accessed by dialing 1-888-286-8010 and entering the Passcode: 87642007. Both replays will be available through March 9, 2012.

Please note: Participants planning to listen to the call via the Internet may need to download Windows Media Player(R) to hear the call if this feature has not been previously installed on their computers.

About Imperial

Imperial Sugar Company is one of the largest processors and marketers of refined sugar in the United States to food manufacturers, retail grocers and foodservice distributors. The Company markets products nationally under the Imperial®, Dixie Crystals® and Holly® brands. For more information about Imperial Sugar, visit www.imperialsugarcompany.com and www.iscnewsroom.com.

Statements regarding future market prices and margins, our liquidity and ability to finance our operations and capital investment programs, future expenses and liabilities arising from the Port Wentworth refinery incident, future costs and liabilities arising from the Louisiana Sugar Refining LLC venture, future import and export levels, future government and legislative action, future environmental regulatory and compliance costs, future operating results, future availability and cost of raw sugars, operating efficiencies, results of future investments and initiatives, future asset sales, future cost savings, future product innovations, future energy costs, future pension plan contributions and other statements that are not historical facts contained in this release are forward-looking statements that involve certain risks, uncertainties and assumptions. These risks, uncertainties and assumptions include, but are not limited to, market factors, farm and trade policy, unforeseen engineering and equipment delays, our ability to obtain financing and the terms of any such financing, our ability to realize planned cost savings and other improvements, the available supply of sugar, energy costs, the effect of weather and economic conditions, results of actuarial assumptions, actual or threatened acts of terrorism or armed hostilities, legislative, administrative and judicial actions and other factors detailed in the Company’s filings with the Securities and Exchange Commission. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual outcomes may vary materially from those indicated.