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Press release from GlobeNewswire (a Nasdaq OMX company)

SunOpta Announces Third Quarter 2013 Results

Tuesday, November 05, 2013

SunOpta Announces Third Quarter 2013 Results

14:00 EST Tuesday, November 05, 2013

TORONTO, Nov. 5, 2013 (GLOBE NEWSWIRE) -- SunOpta Inc. ("SunOpta" or "the Company") (Nasdaq:STKL) (TSX:SOY), a leading global company focused on natural, organic and specialty foods, today announced financial results for the third quarter and first nine months ended September 28, 2013. All amounts are expressed in U.S. dollars and results are reported in accordance with U.S. GAAP, except where specifically noted.

Third Quarter 2013 Highlights

  • Record third quarter revenues of $302.7 million, an increase of 8.4%
  • Operating income¹ of $9.8 million, or 3.2% of revenues
  • EBITDA¹ of $15.3 million, or 5.1% of revenues
  • Adjusted earnings from continuing operations¹ of $4.8 million, or $0.07 per diluted common share
  • GAAP earnings per diluted common share from continuing operations of $0.04 or $2.9 million, after accounting for non-cash impairment charges associated with a non-core investment in Opta Minerals Inc.

Year-to-date 2013 Highlights

  • Record year-to-date revenues of $896.7 million, an increase of 9.2%
  • Operating income¹ of $33.8 million, or 3.8% of revenues
  • EBITDA¹ of $50.2 million, or 5.6% of revenues
  • Adjusted earnings from continuing operations¹ of $17.1 million, or $0.25 per diluted common share
  • GAAP loss per common share from continuing operations of $0.10 or $6.9 million, after accounting for non-cash impairment charges associated with non-core investments in Opta Minerals Inc. and Mascoma Corporation

(all comparisons above are to the third quarter and first nine months of 2012)

"Our record revenues for the quarter and year-to-date periods demonstrate our ability to realize continued momentum in our core natural and organic foods business. We believe that interest in healthy eating is a key long term global trend and we are well positioned to capitalize on future industry growth," commented Steve Bromley, Chief Executive Officer. "There was strong growth in our value added product offerings during the quarter, and with a number of our expansion projects now coming on line, we look forward to realizing the benefits of these expansions. Our margins in the quarter were negatively impacted by costs related to the start-up and commissioning of our specialty cocoa processing facility in the Netherlands and consumer product facility expansions, combined with continued processing challenges in our sunflower operations as well as the cyclical weakness in the steel and infrastructure segments within our non-core holding, Opta Minerals. We continue to explore strategic options for this non-core holding in support of our strategy of becoming a pure-play natural and organic foods company. Looking forward, our internal re-structuring and expansion efforts are progressing well, and while we expect costs associated with these efforts to continue for the next two quarters, we are confident that our re-structured food operations will allow us to simplify our operations, better serve our customers, and will lead to greater alignment between our structure and our strategies."

Third Quarter 2013 Results

Revenues increased 8.4% to a record $302.7 million compared to $279.3 million in the third quarter of 2012. The increase in consolidated revenues was driven by continued growth in consumer packaged categories including re-sealable pouch products and aseptic beverages, increased demand and prices for internationally sourced organic raw materials, and higher sales volumes of industrial and food service fruit-based ingredients. Excluding the impact of a number of factors including commodity, currency and product rationalizations, revenues in SunOpta Foods increased approximately 10.4% and consolidated revenues increased approximately 8.0% versus the prior year.

Operating income¹ was $9.8 million, or 3.2% of revenues, compared to $12.7 million, or 4.5% of revenues in 2012. Operating income was negatively impacted by facility start-up and expansion costs within the International Foods Group and Consumer Products Group, low sunflower processing yields and by-product values in the Grains and Foods Group, as well as Opta Minerals which continued to face cyclical weakness in both the steel and infrastructure sectors and the cost of integrating recent acquisitions.

The Company reported earnings from continuing operations of $2.9 million, or $0.04 per diluted common share, compared to earnings from continuing operations of $5.7 million, or $0.09 per diluted common share for the third quarter of 2012. Included in the results for the third quarter is a non-cash charge of approximately $1.5 million after tax, or $0.02 per diluted common share, related to an impairment of goodwill recognized in the Company's Opta Minerals operating segment. The third quarter also included other expenses related to severance, facility restructuring and long-lived asset write-downs of approximately $0.4 million after tax, or $0.01 per diluted common share.

Excluding the goodwill impairment and other expenses, adjusted earnings from continuing operations¹ in the third quarter of 2013 were $4.8 million, or $0.07 per diluted common share. In addition, earnings for the third quarter include the impact of approximately $2.6 million in pre-tax start-up, expansion and integration costs, or approximately $1.7 million after-tax and minority interest.

EBITDA¹ was $15.3 million compared to $17.8 million during the third quarter of 2012.

Year-to-date 2013 Results

Revenues increased 9.2% to a record $896.7 million compared to $821.0 million in the first nine months of 2012. The increase in consolidated revenues was driven by strong demand and increased prices for organic grains and feed products, continued growth in consumer packaged categories including aseptic beverages and re-sealable pouch products, increased demand and prices for internationally sourced organic raw materials, as well as higher sales within Opta Minerals as a result of recent acquisitions. Excluding the impact of a number of factors including commodity, currency and product rationalizations, revenues in SunOpta Foods increased approximately 8.2% and consolidated revenues increased approximately 6.5% versus the prior year.

Operating income¹ was $33.8 million, or 3.8% of revenues, as compared to $39.8 million, or 4.9% of revenues, in the first nine months of 2012. Operating earnings were negatively impacted by the factors previously noted related to facility start-up and expansion costs, sunflower processing yields and cyclical weakness at Opta Minerals, offset partially by improved results within the Company's consumer products and ingredients operations.

The Company incurred a loss from continuing operations of $6.9 million, or $0.10 per common share in the first nine months of 2013, compared to earnings from continuing operations of $18.6 million, or $0.28 per diluted common share, for the first nine months of 2012. Included in the results for the first nine months of 2013 were non-cash charges of approximately $23.0 million after tax, or $0.34 per diluted common share, reflecting the write-down of the Company's non-core investments in Mascoma and goodwill impairment at Opta Minerals, as well as severance and long-lived asset write-downs which in aggregate amount to a charge to earnings of $0.9 million after tax or $0.01 per diluted common share. After adjusting for these items, adjusted earnings from continuing operations¹ in the first nine months of 2013 were $17.1 million, or $0.25 per diluted common share. In addition, earnings for the first nine months of 2013 include the impact of approximately $4.5 million in pre-tax start-up, expansion and integration costs, or approximately $2.8 million after-tax and minority interest.

EBITDA¹ was $50.2 million as compared to $54.8 million during the first three quarters of 2012.

Balance Sheet

The Company's balance sheet remains strong and at September 28, 2013 reflected a net debt to equity ratio of 0.57 to 1.00. At September 28, 2013, the Company had total debt outstanding of $191.4 million, net debt of $184.6 million, total assets of $689.1 million, shareholders' equity of $324.4 million and a net book value of $4.88 per outstanding share.

Conference Call

The Company plans to host a conference call at 10:00 A.M. Eastern Time on Wednesday, November 6, 2013 to discuss the results for the third quarter of 2013 and recent corporate developments. After opening remarks, there will be a question and answer period. This conference call can be accessed via a link at the Company's website at www.sunopta.com. To listen to the live call over the Internet, please go to the Company's website at least 15 minutes early to register, download and install any necessary audio software. Additionally, the call may be accessed with the toll free dial-in number (877) 312-9198 or international dial-in number (631) 291-4622. If you are unable to listen live, the conference call will be archived and can be accessed for approximately 90 days at the Company's website.

1See discussion of non-GAAP measures

About SunOpta Inc.

SunOpta Inc. is a leading global company focused on natural, organic and specialty foods products. The Company specializes in sourcing, processing and packaging of natural and organic food products, integrated from seed through packaged products; with a focus on strategically vertically integrated business models. The Company's core natural and organic food operations focus on value-added grains, fiber and fruit based product offerings, supported by a global infrastructure. The Company has two non-core holdings, a 66.1% ownership position in Opta Minerals Inc., listed on the Toronto Stock Exchange, a producer, distributor, and recycler of environmentally friendly industrial materials; and a minority ownership position in Mascoma Corporation, an innovative biofuels company.

The SunOpta Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=3958

Forward-Looking Statements

Certain statements included in this press release may be considered "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities legislation, which are based on information available to us on the date of this release. These forward-looking statements include, but are not limited to, our belief that healthy eating is a key long term global trend and that we are well positioned to capitalize on future industry growth. The terms and phrases "believe", "look forward", "continued", "growing", "leveraging" and other similar terms and phrases are intended to identify these forward looking statements. Forward looking statements are based on information available to us on the date of this release and are based on estimates and assumptions made by the Company in light of its experience and its perception of historical trends, current conditions and expected future developments as well as other factors the Company believes are appropriate in the circumstances including, but not limited to, general economic conditions, consumer interest in health and wellness, product pricing levels, current customer demand, planned facility and operational expansions, competitive intensity, cost rationalization and product development initiatives. Whether actual timing and results will agree with expectations and predications of the Company is subject to many risks and uncertainties including, but not limited to, global economic conditions, consumer spending patterns and changes in market trends, decreases in customer demand, potential failure of product development, working capital management and continuous improvement initiatives, availability and pricing of raw materials and supplies, potential covenant breaches under our credit facilities and other risks described from time to time under "Risk Factors" in the Company's Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q (available at www.sec.gov). Consequently all forward-looking statements made herein are qualified by these cautionary statements and there can be no assurance that the actual results or developments anticipated by the Company will be realized.

SunOpta Inc.
Consolidated Statements of Operations
For the quarter ended September 28, 2013 and September 29, 2012
Unaudited
(Expressed in thousands of U.S. dollars, except per share amounts)
 
  Quarter ended Quarter ended  
  September 28, 2013 September 29, 2012 Change
  $ $ %
       
Revenues  302,723   279,339  8.4%
       
Cost of goods sold  271,240   246,158  10.2%
       
Gross profit   31,483   33,181  -5.1%
       
Selling, general and administrative expenses  20,678   19,395  6.6%
Intangible asset amortization  1,180   1,225  -3.7%
Other expense, net   787   264  198.1%
Goodwill impairment  3,552   --  --
Foreign exchange gain (211) (130) -62.3%
       
Earnings from continuing operations before the following  5,497  12,427  -55.8%
       
Interest expense, net  1,957   2,339  -16.3%
       
Earnings from continuing operations before income taxes  3,540  10,088  -64.9%
       
Provision for income taxes 1,343   3,947  -66.0%
       
Earnings from continuing operations  2,197  6,141  -64.2%
       
Discontinued operations       
Earnings from discontinued operations, net of taxes  --   112  -100.0%
       
Earnings   2,197  6,253  -64.9%
       
Earnings (loss) attributable to non-controlling interests (716) 449  -259.5%
       
Earnings attributable to SunOpta Inc.  2,913  5,804  -49.8%
       
Earnings per share - basic       
 -from continuing operations  0.04   0.09   
 -from discontinued operations --  --   
   0.04  0.09   
       
Earnings per share - diluted      
 -from continuing operations  0.04   0.09   
 -from discontinued operations --  --   
   0.04  0.09   
 
SunOpta Inc.
Consolidated Statements of Operations 
For the three quarters ended September 28, 2013 and September 29, 2012
Unaudited
(Expressed in thousands of U.S. dollars, except per share amounts)
 
  Three quarters ended Three quarters ended  
  September 28, 2013 September 29, 2012 Change
  $ $ %
       
Revenues  896,718   820,975  9.2%
       
Cost of goods sold   794,002   716,220  10.9%
       
Gross profit  102,716   104,755  -1.9%
       
Selling, general and administrative expenses  66,428   61,911  7.3%
Intangible asset amortization  3,628   3,653  -0.7%
Other expense, net   1,799   2,006  -10.3%
Goodwill impairment  3,552   --  --
Foreign exchange gain (1,152) (629) -83.1%
       
Earnings from continuing operations before the following   28,461   37,814  -24.7%
       
Interest expense, net  5,885   7,480  -21.3%
Impairment loss on investment  21,495   --  --
       
Earnings from continuing operations before income taxes  1,081  30,334  -96.4%
       
Provision for income taxes  8,576  10,302  -16.8%
       
Earnings (loss) from continuing operations (7,495) 20,032  -137.4%
       
Discontinued operations       
Earnings (loss) from discontinued operations, net of taxes (360)  517  -169.6%
Gain on sale of discontinued operations, net of taxes  --  676  -100.0%
       
Earnings (loss) from discontinued operations, net of income taxes (360) 1,193  -130.2%
       
Earnings (loss) (7,855) 21,225  -137.0%
       
Earnings (loss) attributable to non-controlling interests (612) 1,384  -144.2%
       
Earnings (loss) attributable to SunOpta Inc. (7,243) 19,841  -136.5%
       
Earnings (loss) per share – basic       
-from continuing operations (0.10) 0.28   
-from discontinued operations (0.01) 0.02   
  (0.11) 0.30   
       
Earnings (loss) per share – diluted       
-from continuing operations (0.10) 0.28   
-from discontinued operations (0.01) 0.02   
  (0.11) 0.30   
 
SunOpta Inc.
Consolidated Balance Sheets
As at September 28, 2013 and December 29, 2012
Unaudited
(Expressed in thousands of U.S. dollars)
 
  September 28, 2013 December 29, 2012
  $ $
     
ASSETS    
     
Current assets    
Cash and cash equivalents   6,819  6,840 
Restricted cash  --   6,595 
Accounts receivable  120,630  113,314 
Inventories   248,887  255,738 
Prepaid expenses and other current assets  16,075  20,538 
Current income taxes recoverable  676   1,814 
Deferred income taxes  2,377  2,653 
  395,464  407,492 
     
Investment  12,350   33,845 
Property, plant and equipment  161,919   140,579 
Goodwill   54,184   57,414 
Intangible assets  49,139   52,885 
Deferred income taxes  14,408   12,879 
Other assets  1,616   2,216 
     
   689,080  707,310 
     
LIABILITIES    
     
Current liabilities    
Bank indebtedness   139,371  131,061 
Accounts payable and accrued liabilities  110,138  128,544 
Customer and other deposits  5,856  4,734 
Income taxes payable  4,300  4,125 
Other current liabilities  3,028  2,660 
Current portion of long-term debt  46,466  6,925 
Current portion of long-term liabilities  609  1,471 
  309,768  279,520 
     
Long-term debt   5,565   51,273 
Long-term liabilities  4,109   5,544 
Deferred income taxes  28,239   27,438 
   347,681  363,775 
     
     
EQUITY    
SunOpta Inc. shareholders' equity    
Capital Stock   185,901  183,027 
66,460,206 common shares (December 29, 2012 - 66,007,236)    
Additional paid in capital   18,438  16,855 
Retained earnings  117,489  124,732 
Accumulated other comprehensive income  2,528  1,537 
   324,356   326,151 
Non-controlling interests  17,043  17,384 
Total equity  341,399   343,535 
     
   689,080   707,310 
 
SunOpta Inc.
Consolidated Statements of Cash Flows
For the quarter ended September 28, 2013 and September 29, 2012
Unaudited
(Expressed in thousands of U.S. dollars)
 
  Quarter ended Quarter ended
  September 28, 2013 September 29, 2012
  $ $
     
Cash provided by (used in)    
     
Operating activities    
Earnings   2,197   6,253 
Earnings from discontinued operations  --   112 
Earnings from continuing operations  2,197   6,141 
     
Items not affecting cash    
Depreciation and amortization  5,494   5,155 
Deferred income taxes (1,747) (639)
Stock-based compensation  881   713 
Goodwill impairment  3,552   -- 
Impairment of long-lived assets   310   -- 
Unrealized loss (gain) on derivative instruments  1,950  (3,075)
Other (766)  432 
Changes in non-cash working capital, net of businesses acquired (1,862)  7,462 
Net cash flows from operations - continuing operations  10,009   16,189 
Net cash flows from operations - discontinued operations  --   313 
   10,009   16,502 
Investing activities    
Acquisition of business, net of cash acquired  --  (11,644)
Purchases of property, plant and equipment (10,797) (5,709)
Decrease in restricted cash  6,495   -- 
Payment of contingent consideration  --  (61)
Other  342   66 
Net cash flows from investing activities - continuing operations (3,960) (17,348)
     
Financing activities    
Increase (decrease) in line of credit facilities (4,928)  11,664 
Borrowings under long-term debt  142   15,234 
Repayment of long-term debt (1,677) (24,136)
Financing costs (5) (1,315)
Proceeds from the issuance of common shares  804   257 
Other (72)  53 
Net cash flows from financing activities - continuing operations (5,736)  1,757 
     
Foreign exchange gain on cash held in a foreign currency  46   29 
     
Increase in cash and cash equivalents during the period  359   940 
     
     
Cash and cash equivalents - beginning of the period  6,460   3,247 
     
Cash and cash equivalents - end of the period  6,819   4,187 
 
SunOpta Inc.
Consolidated Statements of Cash Flows
For the three quarters ended September 28, 2013 and September 29, 2012
Unaudited
(Expressed in thousands of U.S. dollars)
 
  Three quarters ended Three quarters ended
  September 28, 2013 September 29, 2012
  $ $
     
Cash provided by (used in)    
     
Operating activities    
Earnings (loss) (7,855)  21,225 
Earnings (loss) from discontinued operations (360)  1,193 
Earnings (loss) from continuing operations (7,495)  20,032 
     
Items not affecting cash    
Depreciation and amortization  16,343   14,946 
Deferred income taxes (242)  3,077 
Stock-based compensation  2,422   2,041 
Goodwill impairment   3,552   -- 
Impairment of long-lived assets   310   -- 
Unrealized loss (gain) on derivative instruments  2,892  (1,178)
Impairment loss on investment  21,495   -- 
Other (663)  1,048 
Changes in non-cash working capital, net of businesses acquired (6,847) (1,921)
Net cash flows from operations - continuing operations  31,767   38,045 
Net cash flows from operations - discontinued operations (4,608) (3)
   27,159   38,042 
Investing activities    
Acquisitions of businesses, net of cash acquired (3,828) (29,174)
Purchases of property, plant and equipment (32,773) (17,623)
Decrease in restricted cash  6,495   -- 
Payment of contingent consideration (1,074) (388)
Other (496) (165)
Net cash flows from investing activities - continuing operations (31,676) (47,350)
Net cash flows from investing activities - discontinued operations  --   12,134 
  (31,676) (35,216)
Financing activities    
Increase in line of credit facilities  7,854   1,138 
Borrowings under long-term debt  486   34,607 
Repayment of long-term debt (5,697) (34,959)
Financing costs (28) (2,490)
Proceeds from the issuance of common shares  2,035   680 
Other (97)  24 
Net cash flows from financing activities - continuing operations  4,553  (1,000)
     
Foreign exchange loss on cash held in a foreign currency (57) (17)
     
     
Increase (decrease) in cash and cash equivalents during the period (21)  1,809 
     
     
Cash and cash equivalents - beginning of the period  6,840   2,378 
     
Cash and cash equivalents - end of the period  6,819   4,187 
 
SunOpta Inc.
Segmented Information
For the quarter ended September 28, 2013 and September 29, 2012
Unaudited
(Expressed in thousands of U.S. dollars)
 
 
Quarter ended
September 28, 2013
    SunOpta   Corporate  
    Foods Opta Minerals Services Consolidated
    $ $ $ $
Total revenues from external customers    267,796   34,927   --   302,723 
Segment operating income (loss)    10,430   1,704  (2,298)  9,836 
           
SunOpta Foods has the following segmented reporting:
 
Quarter ended
September 28, 2013
  Grains and   Consumer International SunOpta
  Foods Ingredients Products Foods Foods
  $ $ $ $ $
Total revenues from external customers  143,051   23,962   49,318   51,465   267,796 
Segment operating income  7,227   1,649   628   926   10,430 
           
 
Quarter ended
September 29, 2012
    SunOpta   Corporate  
    Foods Opta Minerals Services Consolidated
    $ $ $ $
Total revenues from external customers    246,359   32,980   --   279,339 
Segment operating income (loss)    10,835   3,280  (1,424)  12,691 
           
SunOpta Foods has the following segmented reporting:
 
Quarter ended
September 29, 2012
  Grains and   Consumer International SunOpta
  Foods Ingredients Products Foods Foods
  $ $ $ $ $
Total revenues from external customers  139,917   20,273   41,636   44,533   246,359 
Segment operating income (loss)  8,780   878  (544)  1,721   10,835 
           
(Segment operating income (loss) is defined as "Earnings from continuing operations before the following" excluding the impact of "Other expense, net" and "Goodwill impairment")
 
SunOpta Inc.
Segmented Information
For the three quarters ended September 28, 2013 and September 29, 2012
Unaudited
(Expressed in thousands of U.S. dollars)
 
 
Three quarters ended
September 28, 2013
    SunOpta   Corporate  
    Foods Opta Minerals Services Consolidated
    $ $ $ $
Total revenues from external customers    788,104   108,614   --   896,718 
Segment operating income (loss)    34,338   5,070  (5,596)  33,812 
           
SunOpta Foods has the following segmented reporting:
 
Three quarters ended
September 28, 2013
  Grains and   Consumer International SunOpta
  Foods Ingredients Products Foods Foods
  $ $ $ $ $
Total revenues from external customers  418,455   67,458   149,594   152,597   788,104 
Segment operating income  24,251   3,601   2,508   3,978   34,338 
           
 
Three quarters ended
September 29, 2012
    SunOpta   Corporate  
    Foods Opta Minerals Services Consolidated
    $ $ $ $
Total revenues from external customers    728,449   92,526   --   820,975 
Segment operating income (loss)    36,423   8,178  (4,781)  39,820 
           
SunOpta Foods has the following segmented reporting:
 
Three quarters ended
September 29, 2012
  Grains and   Consumer International SunOpta
  Foods Ingredients Products Foods Foods
  $ $ $ $ $
Total revenues from external customers  397,096   62,408   135,879   133,066   728,449 
Segment operating income (loss)  27,662   2,946  (549)  6,364   36,423 
           
(Segment operating income (loss) is defined as "Earnings from continuing operations before the following" excluding the impact of "Other expense, net" and "Goodwill impairment")

1Non-GAAP Measures

In addition to reporting financial results in accordance with generally accepted accounting principles ("GAAP"), the Company provides information regarding Operating Income and Earnings before interest, taxes, depreciation and amortization ("EBITDA") as additional information about its operating results, which are not measures in accordance with GAAP. The Company believes that these non-GAAP measures assist investors in comparing performance across reporting periods on a consistent basis by excluding items that are not indicative of the Company's core operating performance. The non-GAAP measures of Operating Income and EBITDA should not be considered in isolation or as a substitute for performance measures calculated in accordance with GAAP.

The Company defines Operating Income as "Earnings from continuing operations before the following" excluding the impact of "Other expense, net" and "Goodwill impairment" and EBITDA as Operating Income plus depreciation and amortization. The following is a tabular presentation of Operating Income and EBITDA, including reconciliation to GAAP earnings, which the Company believes to be the most directly comparable GAAP financial measure:

  Quarter ended Quarter ended
  September 28, 2013 September 29, 2012
  $ $
     
Earnings from continuing operations  2,197   6,141 
     
Provision for income taxes  1,343   3,947 
Interest expense, net  1,957   2,339 
Other expense, net  787   264 
Goodwill impairment   3,552   -- 
Operating income  9,836   12,691 
Depreciation and amortization  5,494   5,155 
Earnings before interest, taxes, depreciation and amortization (EBITDA)  15,330   17,846 
     
     
  Three quarters ended Three quarters ended
  September 28, 2013 September 29, 2012
  $ $
     
Earnings (loss) from continuing operations (7,495)  20,032 
     
Provision for income taxes  8,576   10,302 
Interest expense, net  5,885   7,480 
Other expense, net  1,799   2,006 
Goodwill impairment   3,552   -- 
Impairment loss on investment  21,495   -- 
Operating income  33,812   39,820 
Depreciation and amortization  16,343   14,946 
Earnings before interest, taxes, depreciation and amortization (EBITDA)  50,155   54,766 

The Company also reported Adjusted earnings from continuing operations and Adjusted earnings from continuing operations per diluted share for the quarter and three quarters ended September 28, 2013. Adjusted earnings from continuing operations and Adjusted earnings from continuing operations per diluted share are also non-GAAP financial measures. During the quarter and three quarters ended September 28, 2013, the Company recognized specific charges that we do not believe are reflective of normal business operations. We have excluded the impairment loss on our investment in Mascoma, an impairment of goodwill recognized in our Opta Minerals operating segment, as well as severance, facility restructuring and long-lived asset write-downs all reported in "Other expense, net" to arrive at Adjusted earnings from continuing operations and Adjusted earnings from continuing operations per diluted share. The following is a tabular presentation of Adjusted earnings from continuing operations and Adjusted earnings from continuing operations per diluted share, including a reconciliation to GAAP Earnings (loss) attributable to SunOpta Inc. and GAAP Earnings (loss) attributable to SunOpta Inc. on a per diluted share basis, which the Company believes to be the most directly comparable GAAP financial measures. 

Following is a calculation of our Adjusted earnings from continuing operations and Adjusted earnings from continuing operations per diluted share for the quarter and three quarters ended September 28, 2013.

     
    Adjusted earnings
  Quarter ended per diluted share
  September 28, 2013 for the quarter
  $ $
     
Earnings attributable to SunOpta Inc. 2,913 0.04
     
Adjusted for:    
Goodwill impairment (net of taxes of $1,252 and non-controlling interest of $780) 1,520 0.02
Other expense, net (net of taxes of $272 and non-controlling interest of $109) 406 0.01
     
Adjusted earnings from continuing operations 4,839 0.07
     
    Adjusted earnings
  Three Quarters ended per diluted share
  September 28, 2013 for the three quarters
  $ $
     
Loss attributable to SunOpta Inc. (7,243) (0.11)
Loss from discontinued operations, net of taxes (360) (0.01)
Loss from continuing operations attributable to SunOpta Inc.  (6,883) (0.10)
     
Adjusted for:    
Impairment loss on Mascoma investment  21,495 0.32
Goodwill impairment (net of taxes of $1,252 and non-controlling interest of $780) 1,520 0.02
Other expense, net (net of taxes of $557 and non-controlling interest of $292) 950 0.01
     
Adjusted earnings from continuing operations 17,082  0.25 
CONTACT: For further information, please contact:
SunOpta Inc.
Steve Bromley, CEO
Robert McKeracher, Vice President & CFO
Susan Wiekenkamp, Information Officer
Tel: 905-455-2528, ext 103
susan.wiekenkamp@sunopta.com
Website: www.sunopta.com

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