Exhibit 99.1
FOR IMMEDIATE RELEASE
SUNOPTA ANNOUNCES SECOND QUARTER 2009 RESULTS
Toronto, Ontario, August 6, 2009 - SunOpta Inc. (“SunOpta” or “the Company”) (NASDAQ:STKL; TSX:SOY), a leading global company focused on natural, organic and specialty foods and natural health products, today announced financial results for the second quarter ended June 30, 2009. All amounts are expressed in U.S. dollars and results are reported in accordance with U.S. GAAP, except where specifically noted.
The Company realized revenues of $257.7 million in the second quarter of 2009 versus second quarter 2008 revenues of $291.9 million, a year over year decrease of 11.7% . After adjusting for revenue declines in non-food operations plus the impact on revenues due to changes in foreign exchange rates and commodity prices, food revenues declined approximately 3% in the second quarter of 2009 versus the second quarter of 2008.
Earnings for the second quarter were $1.8 million or $0.03 per diluted common share versus earnings of $0.7 million or $0.01 per diluted common share in the second quarter of 2008. The results for the second quarter of 2009 include $3.6 million of additional pre-tax costs incurred during the quarter.
Adjusted earnings1for the second quarter of 2009 were $4.3 million or $0.07 per diluted common share versus adjusted earnings1 in the second quarter of 2008 of $5.1 million or $0.08 per diluted common share. 2009 results reflect the impact of additional pre-tax costs of $3.6 million incurred during the quarter, many of which are expected to provide future benefits to the Company. During the second quarter the Company incurred approximately $1.5 million pre-tax in start-up costs related to the Modesto soymilk processing and packaging facility which commenced commercial production in June 2009. The Company also incurred pre-tax severance and related costs of approximately $0.7 million as it continues to position the business for improved future performance. In addition, pre-tax costs of approximately $0.7 million were incurred related to the investment in the revitalization and re-launch of a number of company owned natural health products brands. The Company also incurred legal and professional fees of approximately $0.7 million related to a legal action in the SunOpta BioProcess Group and costs related to ongoing matters related to the 2007 financial restatement. 2008 adjusted earnings1 reflect pre-tax costs of $6.4 million related to the Company’s investigation and actions into the write down in the SunOpta Fruit Group Berry Operations and subsequent financial restatement, as well as severance.
1Adjusted earnings is not a GAAP measure. SunOpta believes adjusted earnings (adjusted for the impact of non recurring start-up and operational costs, severance and closure costs, marketing costs in support of brand relaunches and certain professional fees) provides useful information to understand the underlying performance of the business and as a result these items have been adjusted. A reconciliation of this non-GAAP measure to GAAP is included on the last page of this release.
- 1 -
For the six months ended June 30, 2009, the Company realized revenues of $489.8 million versus revenues of $522.4 million for the six months ended June 30, 2008. After adjusting for the April 2008 acquisition of The Organic Corporation, revenue declines in non-core food operations and the impact on revenues due to changes in foreign exchange rates and commodity prices, food revenues have declined approximately 1% versus the same period in 2008.
Earnings for the six months ended June 30, 2009 were $0.1 million or $0.00 per diluted common share versus earnings of $2.2 million or $0.03 per diluted common share in the comparable period in 2008. The 2009 results reflect the impact of $5.9 million of additional pre-tax costs incurred during the first six months.
Adjusted earnings1for the six months ended June 30, 2009 were $4.1 million or $0.06 per diluted common share versus adjusted earnings1 in the comparable period in 2008 of $7.5 million or $0.12 per diluted common share. 2009 results reflect the impact of additional pre-tax costs of $5.9 million. During the six months ended June 30, 2009 the Company incurred approximately $2.5 million pre-tax in start-up costs related to the Modesto soymilk processing and packaging facility which commenced commercial production in June 2009. The Company also incurred pre-tax severance and related costs of approximately $1.5 million within a number of its operating segments as it continues to position the business for improved future performance. In addition, pre-tax costs of approximately $1.2 million were incurred related to the investment in the revitalization and re-launch of a number of company owned natural health products brands. The Company also incurred legal and professional fees of approximately $0.8 million related to a legal action in the SunOpta BioProcess Group and costs related to ongoing matters related to the 2007 financial restatement. 2008 adjusted earnings1 reflect pre-tax costs of $7.7 million related to the Company’s investigation and actions into the write down in the SunOpta Fruit Group Berry Operations and subsequent financial restatement, including severance.
At June 30, 2009 the Company’s balance sheet reflects a current working capital ratio of 1.57 to 1.00, long-term debt to equity ratio of 0.47 to 1.00 and total debt to equity ratio of 0.80 to 1.00. The Company has total assets of $594.0 million and a net book value of $3.56 per outstanding share.
During the three month period ended June 30, 2009, cash utilized to fund working capital decreased $15.4 million versus the second quarter of 2008, indicative of efforts to reduce working capital, especially inventories, across the Company. During the second quarter the Company generated cash from operating activities of $11.5 million, reflecting a significant improvement versus cash used in operational activities in the three month period ended June 30, 2008 of $6.3 million, an improvement of $17.8 million. During the second quarter of 2009, the Company repayed debt of $5.3 million as compared to borrowing $9.8 million in the second quarter of 2008 and has realized a reduction in net debt of $44.3 million versus June 30, 2008.
1Adjusted earnings is not a GAAP measure. SunOpta believes adjusted earnings (adjusted for the impact of non recurring start-up and operational costs, severance and closure costs, marketing costs in support of brand relaunches and certain professional fees) provides useful information to understand the underlying performance of the business and as a result these items have been adjusted. A reconciliation of this non-GAAP measure to GAAP is included on the last page of this release.
- 2 -
As previously announced, the Company reached an agreement with its lending syndicate to extend the term on its operating facilities, scheduled for renewal on June 30, 2009, through to December 31, 2009. As part of this agreement the Company negotiated a waiver of financial covenants for the first quarter of 2009 and amended certain covenants for the balance of the fiscal year. As at June 30, 2009, the Company is in compliance with these amended financial covenants. The Company has started the process to convert its current syndicated operating lines to facilities which it anticipates will provide more flexibility and better utilize the Company’s strong asset base, and is currently on target to complete this process no later than the end of the current fiscal year.
Steve Bromley, President and Chief Executive Officer of SunOpta commented: “We are pleased with the improvement in our earnings results for the second quarter combined with continued improvement in cash generated from operations. The Company’s primary focus remains the improvement of operating margins and return on assets employed, to be realized through a combination of aggressive working capital management and continuous improvement initiatives. While we are seeing some improvement in market conditions, we remain focused on our cost control, efficiency, product development and asset utilization initiatives and believe that these will position the Company for improved returns as we move forward. We remain confident that our core food operations are well positioned as interest in health and wellness continues to gain attention around the globe.”
As previously announced, as a result of uncertain and rapidly changing world-wide macroeconomic conditions, the Company will not be providing specific revenue and earnings guidance for 2009. The Company will continue to provide updates when appropriate related to material changes in business affairs resulting from changes in the business and related economic conditions.
The Company plans to host a conference call at 10:00 AM Eastern Time on Friday, August 7, 2009, to discuss these results and recent corporate developments. The conference call can be accessedvia a link at the Company’s website atwww.sunopta.com. Additionally, the call may be accessedwith the toll free dial-in number 1 (866) 322 - 1159 or (416) 640 - 3404 followed by pass code: 4137191#. A replay number can also be accessed between August 7th and 17thwith the toll free dial-in number (888) 203 -1112 or (647) 436 - 0148 followed by pass code: 4137191#.
About SunOpta Inc.
SunOpta Inc. is an operator of high-growth ethical businesses, focusing on integrated business models in the natural and organic food and natural health markets. The Company has three business units: the SunOpta Food Group, which specializes in sourcing, processing and distribution of natural and organic food products integrated from seed through packaged products; Opta Minerals Inc. (TSX:OPM) (66.5% owned by SunOpta), a producer, distributor, and recycler of environmentally friendly industrial materials; and SunOpta BioProcess Inc. which engineers and markets proprietary steam explosion technology systems for the bio-fuel, pulp and food processing industries. SunOpta believes that each of these business units has proprietary products and services that give it a solid competitive advantage in its sector.
- 3 -
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, management’s expectations regarding future benefits of additional pre-tax costs, intended revitalization of a number natural health products brands, benefits of new banking arrangements, continued and increasing interest in the health and wellness consumer markets, as well as cost cutting, efficiency and restructuring measures, and overall improved returns for 2009. The terms and phrases “expected”, “continues”, “scheduled”, “better utilize” “future performance”, “will”, “on target”, “positioned”, “remain focused”, “believe”, “confident”, “anticipates”, “improved returns”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, applicable tax legislation, consumer trends, preferences and spending patterns, product pricing levels, current customer demand, competitive intensity, cost rationalization, product development initiatives, and discussions with the Company’s lenders to date. 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 refusal or inability of the Company to renew its syndicated credit facilities and/or continue to waive certain covenants and other risks described from time to time under “Risk Factors” in the Company’s Annual Report of Form 10-K and its Quarterly Reports on Form 10-Q (available atwww.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.
For further information, please contact:
SunOpta Inc.
Jeremy N. Kendall, Chairman
Steve Bromley, President & CEO
Eric Davis, Vice President & CFO
Tony Tavares, Chief Operating Officer
Susan Wiekenkamp, Information Officer
Tel: 905-455-2528, ext 103
susan.wiekenkamp@sunopta.com
Website:www.sunopta.com
- 4 -
| SunOpta Inc. |
| Condensed Consolidated Statements of Operations |
| For the three month periods ended June 30, 2009 and 2008 |
| (Expressed in thousands of U.S. dollars, except per share amounts) |
| (Unaudited) |
| |
| | | June 30, | | | June 30, | | | | |
| | | 2009 | | | 2008 | | | | |
| | | $ | | | $ | | | | |
| | | | | | | | | | |
| Revenues | | 257,725 | | | 291,945 | | | -11.7% | |
| | | | | | | | | | |
| Cost of goods sold | | 219,644 | | | 246,077 | | | -10.7% | |
| | | | | | | | | | |
| Gross profit | | 38,081 | | | 45,868 | | | -17.0% | |
| | | | | | | | | | |
| Warehousing and distribution expenses | | 4,494 | | | 5,448 | | | -17.5% | |
| Selling, general and administrative expenses | | 27,279 | | | 34,700 | | | -21.4% | |
| Intangible asset amortization | | 1,332 | | | 1,508 | | | -11.7% | |
| Other expense, net | | 109 | | | - | | | n/m | |
| Foreign exchange gain | | (982 | ) | | (1,279 | ) | | -23.2% | |
| | | | | | | | | | |
| Earnings before the following | | 5,849 | | | 5,491 | | | 6.5% | |
| | | | | | | | | | |
| Interest expense, net | | 3,470 | | | 3,601 | | | -3.6% | |
| | | | | | | | | | |
| Earnings before income taxes | | 2,379 | | | 1,890 | | | 25.9% | |
| | | | | | | | | | |
| Provision for income taxes | | 833 | | | 473 | | | 76.1% | |
| | | | | | | | | | |
| Earnings for the period | | 1,546 | | | 1,417 | | | 9.1% | |
| | | | | | | | | | |
| (Loss) earnings for the period attributable to non-controlling interests | | (234 | ) | | 698 | | | -133.5% | |
| | | | | | | | | | |
| Earnings for the period attributable to SunOpta Inc. | | 1,780 | | | 719 | | | 147.6% | |
| | | | | | | | | | |
| | | | | | | | | | |
| Earnings per share for the period | | | | | | | | | |
| | | | | | | | | | |
| Basic | $ | 0.03 | | $ | 0.01 | | | | |
| | | | | | | | | | |
| Diluted | $ | 0.03 | | $ | 0.01 | | | | |
- 5 -
| SunOpta Inc. |
| Condensed Consolidated Statements of Operations |
| For the six month periods ended June 30, 2009 and 2008 |
| (Expressed in thousands of U.S. dollars, except per share amounts) |
| (Unaudited) |
| |
| | | June 30, | | | June 30, | | | | |
| | | 2009 | | | 2008 | | | | |
| | | $ | | | $ | | | | |
| | | | | | | | | | |
| Revenues | | 489,799 | | | 522,389 | | | -6.2% | |
| | | | | | | | | | |
| Cost of goods sold | | 418,071 | | | 436,320 | | | -4.2% | |
| | | | | | | | | | |
| Gross profit | | 71,728 | | | 86,069 | | | -16.7% | |
| | | | | | | | | | |
| Warehousing and distribution expenses | | 8,955 | | | 10,894 | | | -17.8% | |
| Selling, general and administrative expenses | | 54,131 | | | 62,511 | | | -13.4% | |
| Intangible asset amortization | | 2,763 | | | 2,766 | | | -0.1% | |
| Other income, net | | (77 | ) | | - | | | n/m | |
| Foreign exchange loss (gain) | | 281 | | | (991 | ) | | -128.4% | |
| | | | | | | | | | |
| Earnings before the following | | 5,675 | | | 10,889 | | | -17.8% | |
| | | | | | | | | | |
| Interest expense, net | | 6,341 | | | 6,501 | | | -2.5% | |
| | | | | | | | | | |
| (Loss) earnings before income taxes | | (666 | ) | | 4,388 | | | -115.2% | |
| | | | | | | | | | |
| (Recovery of) provision for income taxes | | (233 | ) | | 1,122 | | | -120.8% | |
| | | | | | | | | | |
| (Loss) earnings for the period | | (433 | ) | | 3,266 | | | -113.3% | |
| | | | | | | | | | |
| (Loss) earnings for the period attributable to non-controlling interests | | (556 | ) | | 1,061 | | | -152.4% | |
| | | | | | | | | | |
| Earnings for the period attributable to SunOpta Inc. | | 123 | | | 2,205 | | | -94.4% | |
| | | | | | | | | | |
| | | | | | | | | | |
| Earnings per share for the period | | | | | | | | | |
| | | | | | | | | | |
| Basic | $ | 0.00 | | $ | 0.03 | | | | |
| | | | | | | | | | |
| Diluted | $ | 0.00 | | $ | 0.03 | | | | |
- 6 -
SunOpta Inc.
Consolidated Balance Sheets
As at June 30, 2009 and December 31, 2008
(Expressed in thousands of U.S. dollars)
(Unaudited)
| | | | | | | |
| | | June 30, | | | December 31, | |
| | | 2009 | | | 2008 | |
| | | $ | | | $ | |
| Assets | | | | | | |
| | | | | | | |
| Current assets | | | | | | |
| Cash and cash equivalents | | 21,592 | | | 24,755 | |
| Short-term investments | | 1,500 | | | - | |
| Accounts receivable | | 106,014 | | | 95,129 | |
| Inventories | | 194,933 | | | 200,689 | |
| Prepaid expenses and other current assets | | 20,631 | | | 14,448 | |
| Current income taxes recoverable | | 1,293 | | | 595 | |
| Deferred income taxes | | 5,209 | | | 493 | |
| | | 351,172 | | | 336,109 | |
| | | | | | | |
| Property, plant and equipment | | 112,999 | | | 110,641 | |
| Goodwill | | 55,121 | | | 54,022 | |
| Intangible assets | | 61,860 | | | 63,161 | |
| Deferred income taxes | | 11,931 | | | 16,160 | |
| Other assets | | 925 | | | 954 | |
| | | 594,008 | | | 581,047 | |
| Liabilities | | | | | | |
| | | | | | | |
| Current liabilities | | | | | | |
| Bank indebtedness | | 78,087 | | | 67,164 | |
| Accounts payable and accrued liabilities | | 112,075 | | | 106,989 | |
| Customer and other deposits | | 725 | | | 1,228 | |
| Other current liabilities | | 4,197 | | | 4,437 | |
| Current portion of long-term debt | | 28,459 | | | 12,174 | |
| Current portion of long-term liabilities | | - | | | 1,362 | |
| | | 223,543 | | | 193,354 | |
| | | | | | | |
| Long-term debt | | 78,928 | | | 99,353 | |
| Long-term liabilities | | 4,784 | | | 5,017 | |
| Deferred income taxes | | 13,359 | | | 13,614 | |
| | | 320,614 | | | 311,338 | |
| | | | | | | |
| Preferred shares of a subsidiary company | | 27,991 | | | 27,796 | |
| | | | | | | |
| Equity | | | | | | |
| SunOpta Inc. Shareholders’ Equity | | | | | | |
| Capital stock | | 178,270 | | | 177,858 | |
| 64,846,560 common shares (2008 – 64,493,320) | | | | | | |
| Additional paid in capital | | 7,463 | | | 6,778 | |
| Retained earnings | | 41,032 | | | 40,909 | |
| Accumulated other comprehensive income | | 4,010 | | | 1,266 | |
| Total SunOpta Inc. Shareholders’ Equity | | 230,775 | | | 226,811 | |
| Non-controlling interest | | 14,628 | | | 15,102 | |
| Total Equity | | 245,403 | | | 241,913 | |
| | | 594,008 | | | 581,047 | |
- 7 -
| SunOpta Inc. |
| Condensed Consolidated Statements of Cash Flow |
| For the three month periods ended June 30, 2009 and 2008 |
| (Expressed in thousands of U.S. dollars) |
| (Unaudited) |
| |
| | | June 30, | | | June 30, | |
| | | 2009 | | | 2008 | |
| | | $ | | | $ | |
| | | | | | | |
| Cash provided by (used in) | | | | | | |
| | | | | | | |
| Operating activities | | | | | | |
| Earnings for the period | | 1,546 | | | 1,417 | |
| Items not affecting cash | | | | | | |
| Amortization | | 4,904 | | | 5,135 | |
| Unrealized loss on a foreign exchange | | 291 | | | 389 | |
| Deferred income taxes | | 1,861 | | | (413 | ) |
| Other | | 1,243 | | | 934 | |
| Changes in non-cash working capital, net of businesses acquired | | 1,630 | | | (13,780 | ) |
| | | | | | | |
| | | 11,475 | | | (6,318 | ) |
| | | | | | | |
| Investing activities | | | | | | |
| Acquisition of businesses, net of cash acquired | | - | | | (4,111 | ) |
| Decrease (increase) in short-term investments | | 15,000 | | | (20,000 | ) |
| Purchases of property, plant and equipment, net | | (4,255 | ) | | (3,164 | ) |
| Payment of deferred purchase consideration | | (1,000 | ) | | (255 | ) |
| Purchase of patents, trademarks and other intangible assets | | (138 | ) | | (32 | ) |
| Other | | (2,282 | ) | | 117 | |
| | | | | | | |
| | | 7,325 | | | (27,445 | ) |
| | | | | | | |
| Financing activities | | | | | | |
| (Decrease) increase in line of credit facilities | | (2,756 | ) | | 12,129 | |
| Proceeds from the issuance of common shares | | 214 | | | 41 | |
| Repayment of long-term debt | | (2,510 | ) | | (2,296 | ) |
| Other | | (8 | ) | | 16 | |
| | | | | | | |
| | | (5,060 | ) | | 9,890 | |
| | | | | | | |
| Foreign exchange gain (loss) on cash held in a foreign currency | | 447 | | | (5 | ) |
| | | | | | | |
| Increase (decrease) in cash and cash equivalents during the period | | 14,187 | | | (23,878 | ) |
| | | | | | | |
| Cash and cash equivalents – beginning of the period | | 7,405 | | | 33,001 | |
| | | | | | | |
| Cash and cash equivalents – end of the period | | 21,592 | | | 9,123 | |
- 8 -
| SunOpta Inc. |
| Condensed Consolidated Statements of Cash Flow |
| For the six month periods ended June 30, 2009 and 2008 |
| (Expressed in thousands of U.S. dollars) |
| (Unaudited) |
| |
| | | June 30, | | | June 30, | |
| | | 2009 | | | 2008 | |
| | | $ | | | $ | |
| | | | | | | |
| Cash provided by (used in) | | | | | | |
| | | | | | | |
| Operating activities | | | | | | |
| (Loss) earnings for the period | | (433 | ) | | 3,266 | |
| Items not affecting cash | | | | | | |
| Amortization | | 9,635 | | | 9,513 | |
| Unrealized (gain) loss on foreign exchange | | (234 | ) | | 389 | |
| Deferred income taxes | | 63 | | | 75 | |
| Other | | 768 | | | 996 | |
| Changes in non-cash working capital, net of businesses acquired | | (2,844 | ) | | (25,207 | ) |
| | | | | | | |
| | | 6,955 | | | (10,968 | ) |
| | | | | | | |
| Investing activities | | | | | | |
| Acquisition of businesses, net of cash acquired | | - | | | (4,111 | ) |
| Increase in short-term investments | | (1,500 | ) | | (20,000 | ) |
| Purchases of property, plant and equipment, net | | (8,843 | ) | | (5,530 | ) |
| Payment of deferred purchase consideration | | (1,500 | ) | | (755 | ) |
| Purchase of patents, trademarks and other intangible assets | | (202 | ) | | (122 | ) |
| Other | | (2,232 | ) | | 169 | |
| | | | | | | |
| | | (14,277 | ) | | (30,349 | ) |
| | | | | | | |
| Financing activities | | | | | | |
| Increase in line of credit facilities | | 9,246 | | | 16,981 | |
| Borrowings under long-term debt | | 716 | | | 13,075 | |
| Proceeds from the issuance of common shares | | 412 | | | 260 | |
| Repayment of long-term debt | | (6,529 | ) | | (10,253 | ) |
| Other | | 61 | | | 100 | |
| | | | | | | |
| | | 3,906 | | | 20,163 | |
| | | | | | | |
| Foreign exchange (gain) loss on cash held in a foreign subsidiary | | 253 | | | (25 | ) |
| | | | | | | |
| Decrease in cash and cash equivalents during the period | | (3,163 | ) | | (21,179 | ) |
| | | | | | | |
| Cash and cash equivalents – beginning of the period | | 24,755 | | | 30,302 | |
| | | | | | | |
| Cash and cash equivalents – end of the period | | 21,592 | | | 9,123 | |
- 9 -
| SunOpta Inc. |
| Segmented Information |
| For the three month periods ended June 30, 2009 and 2008 |
| (Expressed in thousands of U.S. dollars) |
| (Unaudited) |
| |
| | Three Months Ended | |
| | | June 30, 2009 | |
| | | SunOpta | | | Opta | | | SunOpta | | | Corporate | | | | |
| | | Food Group | | | Minerals | | | BioProcess | | | Services | | | Consolidated | |
| | | $ | | | $ | | | $ | | | $ | | | $ | |
| | | | | | | | | | | | | | | | |
| Total revenues from external customers | | 243,266 | | | 14,340 | | | 119 | | | - | | | 257,725 | |
| | | | | | | | | | | | | | | | |
| Segment operating income (loss) | | 7,794 | | | (109 | ) | | (836 | ) | | (891 | ) | | 5,958 | |
The SunOpta Food Group has the following segmented reporting:
| | | Three Months Ended | |
| | | June 30, 2009 | |
| | | SunOpta | | | | | | | | | International | | | | | | SunOpta | |
| | | Grains and | | | SunOpta | | | SunOpta | | | Sourcing & | | | SunOpta | | | Food | |
| | | Foods | | | Ingredients | | | Fruit | | | Trading | | | Distribution | | | Group | |
| | | $ | | | $ | | | $ | | | | $ | | $ | | | $ | |
| | | | | | | | | | | | | | | | | | | |
| Total revenues from externalcustomers | | 89,717 | | | 16,213 | | | 39,859 | | | 39,110 | | | 58,367 | | | 243,266 | |
| | | | | | | | | | | | | | | | | | | |
| Segment operating income | | 5,213 | | | 1,890 | | | 623 | | | 9 | | | 59 | | | 7,794 | |
| | | Three Months Ended | |
| | | June 30, 2008 | |
| | | SunOpta | | | Opta | | | SunOpta | | | Corporate | | | | |
| | | Food Group | | | Minerals | | | BioProcess | | | Services | | | Consolidated | |
| | | $ | | | $ | | | $ | | | $ | | | $ | |
| | | | | | | | | | | | | | | | |
| Total revenues from external customers | | 266,226 | | | 25,248 | | | 471 | | | - | | | 291,945 | |
| | | | | | | | | | | | | | | | |
| Segment operating income (loss) | | 9,051 | | | 3,351 | | | (755 | ) | | (6,156 | ) | | 5,491 | |
The SunOpta Food Group has the following segmented reporting:
| | | Three Months Ended | |
| | | June 30, 2008 | |
| | | SunOpta | | | | | | | | | International | | | | | | SunOpta | |
| | | Grains and | | | SunOpta | | | SunOpta | | | Sourcing & | | | SunOpta | | | Food | |
| | �� | Foods | | | Ingredients | | | Fruit | | | Trading | | | Distribution | | | Group | |
| | | $ | | | $ | | | $ | | | | $ | | $ | | | $ | |
| | | | | | | | | | | | | | | | | | | |
| Total revenues from externalcustomers | | 86,487 | | | 16,826 | | | 41,461 | | | 52,571 | | | 68,881 | | | 266,226 | |
| | | | | | | | | | | | | | | | | | | |
| Segment operating income (loss) | | 5,601 | | | 586 | | | (1,906 | ) | | 1,625 | | | 3,145 | | | 9,051 | |
- 10 -
| SunOpta Inc. |
| Segmented Information |
| For the six month periods ended June 30, 2009 and 2008 |
| (Expressed in thousands of U.S. dollars) |
| (Unaudited) |
| | | Six Months Ended | |
| | | June 30, 2009 | |
| | | SunOpta | | | Opta | | | SunOpta | | | Corporate | | | | |
| | | Food Group | | | Minerals | | | BioProcess | | | Services | | | Consolidated | |
| | | $ | | | $ | | | $ | | | $ | | | $ | |
| | | | | | | | | | | | | | | | |
| Total revenues from external customers | | 460,602 | | | 29,065 | | | 132 | | | - | | | 489,799 | |
| | | | | | | | | | | | | | | | |
| Segment operating income (loss) | | 10,540 | | | (861 | ) | | (1,594 | ) | | (2,487 | ) | | 5,598 | |
The SunOpta Food Group has the following segmented reporting:
| | | Six Months Ended | |
| | | June 30, 2009 | |
| | | SunOpta | | | | | | | | | International | | | | | | SunOpta | |
| | | Grains | | | SunOpta | | | SunOpta | | | Sourcing & | | | SunOpta | | | Food | |
| | | and Foods | | | Ingredients | | | Fruit | | | Trading | | | Distribution | | | Group | |
| | | $ | | | $ | | | $ | | | $ | | | $ | | | $ | |
| | | | | | | | | | | | | | | | | | | |
| Total revenues from externalcustomers | | 164,056 | | | 29,753 | | | 77,461 | | | 74,293 | | | 115,039 | | | 460,602 | |
| | | | | | | | | | | | | | | | | | | |
| Segment operating income (loss) | | 9,148 | | | 2,712 | | | (534 | ) | | (1,163 | ) | | 377 | | | 10,540 | |
| | | Six Months Ended | |
| | | June 30, 2008 | |
| | | SunOpta | | | Opta | | | SunOpta | | | Corporate | | | | |
| | | Food Group | | | Minerals | | | BioProcess | | | Services | | | Consolidated | |
| | | $ | | | $ | | | $ | | | $ | | | $ | |
| | | | | | | | | | | | | | | | |
| Total revenues from external customers | | 475,168 | | | 46,618 | | | 603 | | | - | | | 522,389 | |
| | | | | | | | | | | | | | | | |
| Segment operating income (loss) | | 15,279 | | | 5,355 | | | (1,637 | ) | | (8,108 | ) | | 10,889 | |
The SunOpta Food Group has the following segmented reporting:
| | | Six Months Ended | |
| | | June 30, 2009 | |
| | | SunOpta | | | | | | | | | International | | | | | | SunOpta | |
| | | Grains | | | SunOpta | | | SunOpta | | | Sourcing & | | | SunOpta | | | Food | |
| | | and Foods | | | Ingredients | | | Fruit | | | Trading | | | Distribution | | | Group | |
| | | $ | | | $ | | | $ | | | $ | | | $ | | | $ | |
| | | | | | | | | | | | | | | | | | | |
| Total revenues from externalcustomers | | 159,042 | | | 33,774 | | | 78,629 | | | 65,300 | | | 138,423 | | | 475,168 | |
| | | | | | | | | | | | | | | | | | | |
| Segment operating income (loss) | | 11,094 | | | 1,604 | | | (5,974 | ) | | 1,885 | | | 6,670 | | | 15,279 | |
- 11 -
| SunOpta Inc. |
| Non-GAAP Reconciliation |
| For the three month periods ended June 30, 2009 and 2008 |
| (Expressed in thousands of U.S. dollars) |
| (Unaudited) |
| |
| | | For the Three Months Ended June 30, | | | | |
| | | 2009 | | | | | | 2009 | | | 2008 | |
| | | GAAP | | | Adjustments | | | Adjusted | | | Adjusted | |
| | | | | | | | | | | | | |
| Revenues | | 257,725 | | | - | | | 257,725 | | | 291,945 | |
| Cost of goods sold | | 219,644 | | | (1,463 | ) | | 218,181 | | | 246,077 | |
| | | | | | | | | | | | | |
| Gross profit | | 38,081 | | | 1,463 | | | 39,544 | | | 45,868 | |
| | | | | | | | | | | | | |
| Warehousing and distribution expenses | | 4,494 | | | - | | | 4,494 | | | 5,448 | |
| Selling, general and administrative expenses | | 27,279 | | | (1,984 | ) | | 25,295 | | | 28,348 | |
| Intangible asset amortization | | 1,332 | | | - | | | 1,332 | | | 1,508 | |
| Other expense, net | | 109 | | | (109 | ) | | - | | | - | |
| Foreign exchange gain | | (982 | ) | | - | | | (982 | ) | | (1,279 | ) |
| | | | | | | | | | | | | |
| Earnings before the following | | 5,849 | | | 3,556 | | | 9,405 | | | 11,843 | |
| | | | | | | | | | | | | |
| Interest expense, net | | 3,470 | | | - | | | 3,470 | | | 3,601 | |
| | | | | | | | | | | | | |
| Earnings before income taxes | | 2,379 | | | 3,556 | | | 5,935 | | | 8,242 | |
| | | | | | | | | | | | | |
| Provision for income taxes | | 833 | | | 1,081 | | | 1,914 | | | 2,474 | |
| | | | | | | | | | | | | |
| Earnings for the period | | 1,546 | | | 2,475 | | | 4,021 | | | 5,768 | |
| | | | | | | | | | | | | |
| (Loss) earnings for the period attributable to non-controlling interests | | (234 | ) | | - | | | (234 | ) | | 698 | |
| | | | | | | | | | | | | |
| Earnings for the period attributable to SunOpta Inc. | | 1,780 | | | 2,475 | | | 4,255 | | | 5,070 | |
| | | | | | | | | | | | | |
| Earnings per share for the period | | | | | | | | | | | | |
| Basic | | 0.03 | | | 0.04 | | | 0.07 | | | 0.08 | |
| Diluted | | 0.03 | | | 0.04 | | | 0.07 | | | 0.08 | |
| | | Three Months Ended | | | Three Months Ended | |
| | | June 30, 2009 | | | June 30, 2008 | |
| | | Impact on | | | Impact on | | | Impact on | | | Impact on | |
| | | earnings before | | | provision for | | | earnings before | | | provision for | |
| | | income taxes | | | income taxes | | | Income taxes | | | Income taxes | |
| | | | | | | | | | | | | |
| Non-recurring start-up and operations costs | | 1,463 | | | 512 | | | - | | | - | |
| Cost of sales | | 1,463 | | | 512 | | | - | | | - | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| Severance costs and related plant closure expenses | | 635 | | | 222 | | | 2,048 | | | 645 | |
| Up front marketing costs in support of brand re-launches | | 687 | | | 240 | | | - | | | - | |
| Professional fees incurred | | 662 | | | 70 | | | 4,304 | | | 1,356 | |
| | | 1,984 | | | 532 | | | 6,352 | | | 2,001 | |
| | | | | | | | | | | | | |
| Closing costs | | 109 | | | 37 | | | - | | | - | |
| Other expense, net | | 109 | | | 37 | | | - | | | - | |
| | | | | | | | | | | | | |
| Total adjustments | | 3,556 | | | 1,081 | | | 6,352 | | | 2,001 | |
- 12 -
SunOpta Inc.
Non-GAAP Reconciliation
For the six month periods ended June 30, 2009 and 2008
(Expressed in thousands of U.S. dollars)
(Unaudited)
| | | | | | | |
| | | For the Six Months Ended June 30, | | | | |
| | | 2009 | | | | | | 2009 | | | 2008 | |
| | | GAAP | | | Adjustments | | | Adjusted | | | Adjusted | |
| | | | | | | | | | | | | |
| Revenues | | 489,799 | | | - | | | 489,799 | | | 522,389 | |
| Cost of goods sold | | 418,071 | | | (2,464 | ) | | 415,607 | | | 436,320 | |
| | | | | | | | | | | | | |
| Gross profit | | 71,728 | | | 2,464 | | | 74,192 | | | 86,069 | |
| | | | | | | | | | | | | |
| Warehousing and distribution expenses | | 8,955 | | | - | | | 8,955 | | | 10,894 | |
| Selling, general and administrative expenses | | 54,131 | | | (3,339 | ) | | 50,792 | | | 54,791 | |
| Intangible asset amortization | | 2,763 | | | - | | | 2,763 | | | 2,766 | |
| Other income, net | | (77 | ) | | (109 | ) | | (186 | ) | | - | |
| Foreign exchange (loss) gain | | 281 | | | - | | | 281 | | | (991 | ) |
| | | | | | | | | | | | | |
| Earnings before the following | | 5,675 | | | 5,912 | | | 11,587 | | | 18,609 | |
| | | | | | | | | | | | | |
| Interest expense, net | | 6,341 | | | - | | | 6,341 | | | 6,501 | |
| | | | | | | | | | | | | |
| (Loss) Earnings before income taxes | | (666 | ) | | 5,912 | | | 5,246 | | | 12,108 | |
| | | | | | | | | | | | | |
| (Recovery of) provision for income taxes | | (233 | ) | | 1,906 | | | 1,673 | | | 3,554 | |
| | | | | | | | | | | | | |
| (Loss) earnings for the period | | (433 | ) | | 4,006 | | | 3,573 | | | 8,554 | |
| | | | | | | | | | | | | |
| (Loss) earnings for the period attributable to non-controlling interests | | (556 | ) | | - | | | (556 | ) | | 1,061 | |
| | | | | | | | | | | | | |
| Earnings for the period attributable to SunOpta Inc. | | 123 | | | 4,006 | | | 4,129 | | | 7,493 | |
| | | | | | | | | | | | | |
| Earnings per share for the period | | | | | | | | | | | | |
| Basic | | 0.00 | | | 0.06 | | | 0.06 | | | 0.12 | |
| Diluted | | 0.00 | | | 0.06 | | | 0.06 | | | 0.12 | |
| | | Six Months Ended | | | Six Months Ended | |
| | | June 30, 2009 | | | June 30, 2008 | |
| | | Impact on | | | Impact on | | | Impact on | | | Impact on | |
| | | earnings before | | | provision for | | | Earnings before | | | provision for | |
| | | income taxes | | | income taxes | | | Income taxes | | | Income taxes | |
| | | | | | | | | | | | | |
| Non-recurring start-up and operations costs | | 2,464 | | | 862 | | | - | | | - | |
| Cost of sales | | 2,464 | | | 862 | | | - | | | - | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| Severance costs and related plant closure expenses | | 1,377 | | | 482 | | | 2,048 | | | 645 | |
| Up front marketing costs in support of brand re-launches | | 1,159 | | | 406 | | | - | | | - | |
| Professional fees incurred in relation to the internalinvestigation | | 803 | | | 119 | | | 5,672 | | | 1,787 | |
| | | 3,339 | | | 1,007 | | | 7,720 | | | 2,432 | |
| | | | | | | | | | | | | |
| Closing costs | | 109 | | | 37 | | | - | | | - | |
| Other expense, net | | 109 | | | 37 | | | - | | | - | |
| | | | | | | | | | | | | |
| Total adjustments | | 5,912 | | | 1,906 | | | 7,720 | | | 2,432 | |
- 13 -
