SunOpta Announces First Quarter Results and Increases Revenue Guidance; Reports Record Quarterly Revenues and Earnings
TORONTO--May 5, 2004--SunOpta Inc. (SunOpta or
the Company) (Nasdaq:STKL) (TSX:SOY) today announced results for the
three months ended March 31, 2004. All amounts are expressed in U.S.
dollars.
The Company achieved record revenues for the three months ended
March 31, 2004, realizing its 26th consecutive quarter of record
revenue growth compared to the same quarter in the previous year, and
the first quarter in the Company's history with revenues in excess of
$60 million. Revenues in the quarter increased by 51% to $62,502,000
as compared to $41,411,000 in the first quarter of the prior year.
These results were led by a 55% increase in revenues within the
Company's vertically integrated natural and organic food operations,
driven by a combination of internal growth and the acquisitions
completed in 2003.
Net earnings for the first quarter increased by 66% to $1,870,000
or $0.04 per basic common share compared to $1,127,000 (adjusted to
U.S. GAAP) or $0.03 per basic common share in the first quarter of
2003. This increase was due to a number of factors including expanded
revenues within our Ingredients Group lead by oat fiber products and
specialty food ingredients, improved revenues and margins within our
distribution businesses and the impact of the 2003 acquisitions. These
gains were partially offset by foreign exchange losses incurred in the
current year compared to foreign exchange gains in the prior year, and
the impact of one time closure costs of $186,000 related to the
rationalization of the previously announced St. Thomas and Hamilton
facilities.
The Company continues to maintain a strong balance sheet with
working capital of $57,619,000 and total assets of $179,059,000. The
long term debt to equity ratio for the Company is 0.20 to 1.00 as at
March 31, 2004.
The Company previously announced that it expected to achieve
revenues of $275,000,000 in 2004, an increase of 38% versus 2003,
which was based on a combination of continued internal growth and the
impact of the food based acquisitions completed in 2003. Based on
current trends and the recently completed acquisitions, the Company is
now increasing its revenue guidance to $300,000,000 for 2004.
Jeremy N. Kendall, Chairman and CEO of SunOpta, commented that "We
are pleased with our first quarter results, realizing an internal
growth rate of 16% in revenues and achieving a gross profit margin of
19.6%, versus 17.2% in 2003. The acquisitions we have completed this
year are all profitable and will be accretive to earnings. When
combined with continued growth in core businesses we are confident
that business performance will continue to improve throughout the
year."
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
SunOpta Food Group, which specializes in sourcing, processing and
distribution of natural and organic food products integrated from seed
through packaged products; the Opta Minerals Group, a producer,
distributor, and recycler of environmentally friendly industrial
materials; and the StakeTech Steam Explosion Group that engineers and
markets 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.
For further information, please contact:
SunOpta Inc.
Jeremy N. Kendall, Chairman & CEO
Steve Bromley, Executive Vice President & COO
John Dietrich, Vice President & CFO
Susan Wiekenkamp, Information Officer
Tel: 905-455-2528, ext 103
swiekenkamp@sunopta.com
Website: www.sunopta.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. The
attached consolidated balance sheet and consolidated statement of
earnings are unaudited. The information provided here should be
considered in conjunction with the other information included within
the SEC Form 10Q March 31, 2004 filing.
SunOpta Inc.
Consolidated Balance Sheets
As at March 31, 2004 and December 31, 2003
Unaudited
(expressed in thousands of U.S. dollars)
2004 2003 Change
Assets $ $ %
Current assets
Cash and cash equivalents 19,503 21,990 -11%
Accounts receivable - trade 28,391 26,241 8%
Inventories 38,059 34,778 9%
Prepaid expenses and other current assets 3,328 2,524 32%
Income taxes recoverable 1,686 1,686 0%
Future income taxes 667 1,172 -43%
----------------------
91,634 88,391 4%
Assets held for sale 4,993 6,007 -17%
Property, plant and equipment 47,283 44,761 6%
Goodwill and intangibles, net 25,838 25,084 3%
Future income taxes 8,891 9,023 -1%
Other assets 420 490 -14%
----------------------
179,059 173,756 3%
----------------------
Liabilities
Current liabilities
Bank Indebtedness 3,227 -
Accounts payable and accrued liabilities 22,806 24,670 -8%
Customer and other deposits 2,966 1,778 67%
Current portion of long-term debt 3,992 3,840 4%
Current portion of long-term payables 1,024 740 38%
----------------------
34,015 31,028 10%
Long-term debt 20,398 21,196 -4%
Long-term payables 1,382 1,591 -13%
----------------------
55,795 53,815 4%
Shareholders' Equity
Capital stock 98,286 96,636 2%
Contributed surplus 3,384 3,384 0%
Retained earnings 17,649 15,779 12%
Currency translation adjustment 3,945 4,142 -5%
----------------------
123,264 119,941 3%
----------------------
179,059 173,756 3%
----------------------
SunOpta Inc.
Consolidated Statements of Earnings
For the three months ended March 31, 2004 and 2003
Unaudited
(expressed in thousands of U.S. dollars, except per share amounts)
2004 2003 Change
$ $ %
Revenues 62,502 41,411 51%
Cost of good sold 50,231 34,293 46%
----------------------------
Gross profit 12,271 7,118 72%
Warehousing and distribution expenses 1,156 178 549%
Selling, general and administrative
expenses 7,979 5,217 53%
----------------------------
9,135 5,395 69%
Earnings before the following 3,136 1,723 82%
Interest expense (208) (491)
Interest and other income (expense) (115) 37
Foreign exchange gain (loss) (141) 341
----------------------------
(464) (113) 311%
----------------------------
Earnings before income taxes 2,672 1,610 66%
Provision for income taxes 802 483 66%
----------------------------
Net earnings for the period 1,870 1,127 66%
----------------------------
Net earnings per share for the period
Basic 0.04 0.03 33%
----------------------------
Diluted 0.03 0.03 0%
----------------------------
Weighted Average # of shares (in
thousands)
Basic 52,838,493 42,290,847 25%
----------------------------
Diluted 55,856,723 44,549,911 25%
----------------------------
CONTACT: SunOpta Inc.
Jeremy N. Kendall, Steve Bromley,
John Dietrich, Susan Wiekenkamp,
905-455-2528, ext 103
email: swiekenkamp@sunopta.com
SOURCE: SunOpta Inc.