SunOpta Announces First Quarter 2013 Results Company Reports Record First Quarter Revenues of $282.8 Million TORONTO, May 7, 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 first quarter ended March 30, 2013. All amounts are expressed in U.S. dollars and results are reported in accordance with U.S. GAAP, except where specifically noted. First Quarter 2013 Highlights: *Record first quarter revenues of $282.8 million, an increase of approximately 9% versus the 2012 first quarter *Operating income¹ ^ of $10.7 million, or 3.8% of revenues *EBITDA¹ of $16.1 million, or 5.7% of revenues *Earnings of $5.1 million, or $0.08 per diluted common share "We continue to experience strong momentum across our business segments and are pleased with our record revenues in the first quarter. As we anticipated, our margins were impacted by crop quality associated with the drought-like conditions experienced in 2012, along with continued investment in a number of our consumer product and ingredient operations, and cyclical weakness in the steel and infrastructure segments within Opta Minerals," commented Steve Bromley, Chief Executive Officer. "Looking ahead, we believe that 2013 will be another successful year for our Company as we continue to execute on our core strategies of growing our value-added packaged foods and ingredients portfolio, and leveraging our integrated platform in support of our long-term operating targets. We believe SunOpta is well positioned to capitalize on future growth opportunities as consumers around the world are increasingly focused on healthy eating and healthy living." First Quarter 2013 Results Revenues increased approximately 9% to a record $282.8 million as compared to $259.3 million in the first quarter 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 non-dairy beverages and re-sealable pouch products, as well as higher sales within Opta Minerals Inc. as a result of recent acquisitions. Excluding the impact of changes including foreign exchange rates, commodity-related pricing, acquisitions, rationalized product lines and the impact on current revenues related to reduced commodity sales volumes due to the impact of the 2012 drought and delayed 2013 planting season, Food Group revenues increased approximately 7.5% versus the prior year and consolidated revenues increased approximately 6.0%. Operating income¹ ^ for the quarter was $10.7 million, or 3.8% of revenues, for the first quarter of 2013 as compared to $12.8 million, or 4.9% of revenues in 2012. Operating earnings reflected the impact of lower soy and sunflower processing yields due to the effects of the 2012 North American drought, which negatively impacted seed quality and by-product values. In addition, margin pressure was experienced across a number of product lines in the European operations of the International Foods Group as a result of weak economic conditions in Europe and Opta Minerals was impacted by cyclical weakness in the steel and infrastructure sectors, partially offset by the positive impact of recent acquisitions, continued growth in certain consumer packaged goods categories, favorable margins on organic grains and feed products as well as the positive impact of product rationalization efforts in the Company's frozen foods operation. Earnings for the first quarter of 2013 were $5.1 million, or $0.08 per diluted common share, as compared to $5.9 million, or $0.09 per diluted common share, during the record first quarter of 2012. Excluding discontinued operations, earnings for the first quarter of 2013 were $5.2 million, or $0.08 per diluted common share, versus $5.7 million, or $0.09 per diluted common share, during the first quarter of 2012. Earnings for the first quarter include the impact of approximately $1.2 million in pre-tax severance, acquisition and start-up costs, or approximately $0.7 million after-tax and minority interest. For the first quarter of 2013 EBITDA¹ ^ was $16.1 million as compared to $17.6 million during the first quarter of 2012. Balance Sheet The Company's balance sheet remains strong and at March 30, 2013 reflected a current ratio of 1.45 to 1.00 and a net debt to equity ratio of 0.58 to 1.00. At March 30, 2013, the Company had total debt outstanding of $206.2 million, net debt of $193.1 million, total assets of $715.1 million, shareholders' equity of $331.0 million and a net book value of $5.00 per outstanding share. Conference Call Information The Company plans to host a conference call at 10:00 A.M. Eastern Time on Wednesday, May 8, 2013 to discuss the results for the first 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. 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 2013 will be another successful year for the Company, our core strategies of growing our value-added packaged foods and ingredients portfolio and leveraging our integrated platform and that we are well positioned to capitalize on future growth opportunities. The terms and phrases "continued", "believe", "growing", "leveraging", "increasingly", 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 and focus on healthy eating and living, 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 quarters ended March 30, 2013 and March 31, 2012 Unaudited (Expressed in thousands of U.S. dollars, except per share amounts) Quarter ended Quarter ended March 30, 2013 March 31, 2012 Change $ $ % Revenues 282,825 259,328 9.1% Cost of goods sold 248,575 224,842 10.6% Gross profit 34,250 34,486 -0.7% Selling, general and administrative 22,911 20,430 12.1% expenses Intangible asset amortization 1,248 1,193 4.6% Other expense, net 365 364 0.3% Foreign exchange loss (gain) (585) 82 -813.4% Earnings from continuing operations 10,311 12,417 -17.0% before the following Interest expense, net 1,690 2,583 -34.6% Earnings from continuing operations 8,621 9,834 -12.3% before income taxes Provision for income taxes 3,275 3,586 -8.7% Earnings from continuing operations 5,346 6,248 -14.4% Earnings (loss) from discontinued (58) 191 -130.4% operations, net of income taxes Earnings 5,288 6,439 -17.9% Earnings attributable to non-controlling 163 547 -70.2% interests Earnings attributable to SunOpta Inc. 5,125 5,892 -13.0% Earnings per share – basic -from continuing operations 0.08 0.09 -from discontinued operations -- -- 0.08 0.09 Earnings per share – diluted -from continuing operations 0.08 0.09 -from discontinued operations -- -- 0.08 0.09 SunOpta Inc. Consolidated Balance Sheets As at March 30, 2013 and March 31, 2012 Unaudited (Expressed in thousands of U.S. dollars) March 30, 2013 December 29, 2012 $ $ ASSETS Current assets Cash and cash equivalents 6,709 6,840 Restricted cash 6,397 6,595 Accounts receivable 117,763 113,314 Inventories 258,798 255,738 Prepaid expenses and other current assets 17,309 20,538 Current income taxes recoverable 1,814 1,814 Deferred income taxes 2,664 2,653 411,454 407,492 Investments 33,845 33,845 Property, plant and equipment 147,600 140,579 Goodwill 56,998 57,414 Intangible assets 51,076 52,885 Deferred income taxes 12,085 12,879 Other assets 2,073 2,216 715,131 707,310 LIABILITIES Current liabilities Bank indebtedness 150,849 131,061 Accounts payable and accrued liabilities 111,133 128,544 Customer and other deposits 8,702 4,734 Income taxes payable 3,632 4,125 Other current liabilities 2,177 2,660 Current portion of long-term debt 6,582 6,925 Current portion of long-term liabilities 1,477 1,471 284,552 279,520 Long-term debt 48,799 51,273 Long-term liabilities 5,830 5,544 Deferred income taxes 27,596 27,438 366,777 363,775 EQUITY SunOpta Inc. shareholders' equity Capital Stock 183,954 183,027 66,151,249 common shares (December 29, 2012 - 66,007,236) Additional paid in capital 17,277 16,855 Retained earnings 129,857 124,732 Accumulated other comprehensive income (loss) (93) 1,537 330,995 326,151 Non-controlling interest 17,359 17,384 Total equity 348,354 343,535 715,131 707,310 SunOpta Inc. Consolidated Statements of Cash Flows For the quarters ended March 30, 2013 and March 31, 2012 Unaudited (Expressed in thousands of U.S. dollars) Quarter ended Quarter ended March 30, 2013 March 31, 2012 $ $ Cash provided by (used in) Operating activities Earnings 5,288 6,439 Earnings (loss) from discontinued operations (58) 191 Earnings from continuing operations 5,346 6,248 Items not affecting cash Depreciation and amortization 5,420 4,773 Deferred income taxes 941 2,086 Stock-based compensation 685 588 Unrealized loss on derivative instruments 743 682 Other 322 443 Changes in non-cash working capital, net of (20,176) (21,930) business acquired Net cash flows from operations - continuing (6,719) (7,110) operations Net cash flows from operations - discontinued (38) (148) operations (6,757) (7,258) Investing activities Acquisition of businesses, net of cash acquired (3,828) (17,530) Purchases of property, plant and equipment (7,893) (4,919) Purchases of intangible assets (99) (25) Other (398) (77) Net cash flows from investing activities - (12,218) (22,551) continuing operations Net cash flows from investing activities – -- (13) discontinued operations (12,218) (22,564) Financing activities Increase in line of credit facilities 20,639 19,008 Borrowings under long-term debt 232 19,088 Repayment of long-term debt (2,419) (7,030) Financing costs (14) (91) Proceeds from the issuance of common shares 664 157 Other (45) (3) Net cash flows from financing activities - 19,057 31,129 continuing operations Foreign exchange (loss) gain on cash held in a (213) 44 foreign currency Increase (decrease) in cash and cash equivalents (131) 1,351 during the period Cash and cash equivalents - beginning of the 6,840 2,378 period Cash and cash equivalents - end of the period 6,709 3,729 SunOpta Inc. Segmented Information For the quarters ended March 30, 2013 and March 31, 2012 Unaudited (Expressed in thousands of U.S. dollars) Quarter ended March 30, 2013 SunOpta Corporate Foods Opta Services Consolidated Minerals $ $ $ $ Total revenues from external 246,600 36,225 -- 282,825 customers Segment Operating Income 9,624 2,463 (1,411) 10,676 (Loss) SunOpta Foods has the following segmented reporting: Quarter ended March 30, 2013 Grains and Consumer International SunOpta Foods Ingredients Products Foods Foods $ $ $ $ $ Total revenues from external 130,453 21,521 46,551 48,075 246,600 customers Segment Operating Income 7,493 1,002 (175) 1,304 9,624 (Loss) Quarter ended March 31, 2012 SunOpta Corporate Foods Opta Services Consolidated Minerals $ $ $ $ Total revenues from external 230,996 28,332 -- 259,328 customers Segment Operating Income 11,553 3,081 (1,853) 12,781 (Loss) SunOpta Foods has the following segmented reporting: Quarter ended March 31, 2012 Grains and Consumer International SunOpta Foods Ingredients Products Foods Foods $ $ $ $ $ Total revenues from external 121,175 21,649 45,152 43,020 230,996 customers Segment Operating Income 8,386 1,229 (175) 2,113 11,553 (Loss) (Segment operating income (loss) is defined as "Earnings from continuing operations before the following" excluding the impact of "Other expense (income), net") ^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 (income) 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 a reconciliation to GAAP earnings, which the Company believes to be the most directly comparable GAAP financial measure: Quarter ended Quarter ended March 30, 2013 March 31, 2012 $ $ Earnings from continuing operations 5,346 6,248 Provision for income taxes 3,275 3,586 Interest expense, net 1,690 2,583 Other expense, net 365 364 Operating income 10,676 12,781 Depreciation and amortization 5,420 4,773 Earnings before interest, taxes, depreciation 16,096 17,554 and amortization (EBITDA) 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 firstname.lastname@example.org Website: www.sunopta.com SunOpta Inc. Logo
SunOpta Announces First Quarter 2013 Results
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