SunOpta Announces Third Quarter Results; Reports Record Third Quarter Revenues and Earnings; ``Nine Months' Revenues up 65%, Nine Months' Earnings up 71%''
TORONTO--Nov. 5, 2003--SunOpta Inc. (SunOpta)
(Nasdaq:STKL) (TSX:SOY) today announced results for the third quarter
and nine months ended September 30, 2003. All amounts are expressed in
U.S. dollars.
The Company achieved record revenues and earnings for the three
months ended September 30, 2003, realizing its 24th consecutive
quarter of record revenue growth over the same quarter in the previous
year. Revenues in the quarter increased by 54% to $50,384,000 from
$32,800,000 in the third quarter of the prior year. These results were
led by a 68% increase in revenues within the Company's vertically
integrated natural and organic food operations, driven by a
combination of internal growth and acquisitions. For the nine months
ended September 30, 2003, revenues increased 65% to $144,436,000
compared to $87,461,000 in the prior year.
Net earnings in the third quarter were $2,100,000 or $0.05 per
basic common share compared to $1,527,000 or $0.04 per basic common
share in the third quarter of 2002. For the nine months ended
September 30, 2003 net earnings are a record $5,560,000 or $0.13 per
basic common share, an increase of 71% over 2002 results of
$3,254,000, or $0.08 per basic common share. The increase over the
prior year in both the quarter and year to date, were due to a number
of factors including increased sales of bulk grains and specialty
beans, increased sales of aseptic packaged soy milk products and the
impact of the acquisitions of Opta Food Ingredients, Wild West Organic
Harvest, Simply Organic and Kettle Valley Dried Fruit. 2002 figures
also include the one-time recognition of certain tax loss
carry-forwards of $600,000. Excluding this recovery, earnings in the
third quarter of 2003 would have increased by 127% over the same
period in 2002.
As a result of the combination of strong operating results and the
equity offering completed in August, the Company is well positioned
for future growth with working capital of $66,030,000 and total assets
of $157,910,000. The debt to equity ratio at September 30, 2003 was
0.19:1 compared to 0.47:1 at June 30, 2003 and 0.74:1 at
December 31, 2002.
Jeremy N. Kendall, Chairman and CEO of SunOpta Inc., commented
that, "We are very pleased by the continued strong performance of our
operations resulting in record revenues and net earnings in the first
nine months of 2003. The recently announced acquisitions of Pro
Organics, SIGCO Sun Products and Dakota Gourmet, in addition to being
great fits with our vertically integrated natural and organic foods
model, will serve to expand the range of healthy products offerings to
our customers. As a result of these acquisitions and the performance
of our base operations we are raising our 2003 revenue guidance from
$175,000,000 to approximately $195,000,000 to $200,000,000."
Selected Financial Information (Expressed in U.S. Dollars)
Three months ended Three months ended
September 30, 2003 September 30, 2002 % Change
------------------ ------------------ ----------
Revenues $50,384,000 $32,800,000 54%
Gross Profit $8,980,000 $5,290,000 70%
Operating Earnings (1) $3,093,000 $2,050,000 51%
Earnings Before Taxes $2,443,000 $1,456,000 68%
Net Earnings $2,100,000 $1,527,000 38%
Basic E.P.S. $0.05 $0.04 25%
Diluted E.P.S. $0.04 $0.04 -
Weighted # of Shares
- Basic 46,395,000 41,879,000 11%
Nine months ended Nine months ended
September 30, 2003 September 30, 2002 % Change
------------------ ------------------ ----------
Revenues $144,436,000 $87,461,000 65%
Gross Profit $25,204,000 $14,030,000 80%
Operating Earnings (1) $7,957,000 $4,584,000 74%
Earnings Before Taxes $7,129,000 $3,932,000 81%
Net Earnings $5,560,000 $3,254,000 71%
Basic E.P.S. $0.13 $0.08 63%
Diluted E.P.S. $0.12 $0.07 71%
Weighted # of Shares
- Basic 43,904,000 41,402,000 6%
September 30, 2003 September 30, 2002 % Change
------------------ ------------------ ----------
Working Capital $66,030,000 $20,666,000 220%
Total Assets $157,910,000 $82,994,000 90%
Long-Term Debt $21,864,000 $15,396,000 42%
Shareholders' Equity $115,009,000 $48,567,000 137%
Book Value per Share $2.20 $1.16 90%
(1) Earnings before interest expense, interest and other income and
foreign exchange gains and losses.
SunOpta will be holding a conference call for investors and
analysts at 10:00 am. Eastern Time on Thursday, November 6, 2003.
Jeremy Kendall will discuss third quarter results, as well as recent
corporate developments. After opening remarks, there will be a
question and answer period. The dial in numbers are 1 (888) 855-5428
or (719) 457-2665 followed by pass code: 712120#. This conference call
will also be distributed live over CCBN's Investor Distribution
Network to both institutional and individual investors. Individual
investors may listen to the call via www.companyboardroom.com.
Institutional investors may access the call via www.streetevents.com.
Additionally, the call may 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 one of the websites at least 15 minutes early to
register, download and install any necessary audio software. A replay
number can also be accessed between November 6 and November 16 with
the toll fee dial-in number 1 (888) 203-1112 or (719) 457-0820
followed by pass code: 712120#
SunOpta Inc., is an owner/operator of high-growth ethical
businesses, focusing on integrated business models in the natural and
organic food markets. For the last five consecutive years, SunOpta was
included in Profit magazine's 'Profit 100' list of the 100 fastest
growing companies in Canada. The company has three business units: the
Food Group, which specializes in sourcing, processing and distribution
of natural and organic food products; integrated from seed through
packaged products; the Environmental Industrial Group; a producer,
distributor, and recycler of environmentally friendly industrial
materials; and the Steam Explosion Technology Group who engineer and
market clean pulping systems using patented steam explosion
technology. Each of these business units has proprietary products and
services that give it a solid competitive advantage in its sector.
Websites: www.sunopta.com www.sunrich.com www.bei.ca
www.steamexplosion.com www.sunrichvalley.com www.organickitchen.ca
www.wildwestorganicharvest.com www.kettlevalley.net www.opta-food.com
www.proorganics.com
Note: This news release may contain forward-looking information.
Actual future results may differ materially. The risks, uncertainties,
and other factors that could influence actual results are described in
the Company's annual report to shareholders and in SEC filings.
CONTACT: SunOpta Inc.
Jeremy N. Kendall, Steve Bromley or Susan Wiekenkamp
Tel: 905-455-2528, ext. 103
info@sunopta.com
or
Investor Relations Counsel
The Equity Group Inc.
Linda Latman, 212-836-9609
www.theequity.group.com
SOURCE: SunOpta Inc.