View all news

SunOpta Announces Second Quarter Results; Reports Record Revenues and Earnings

August 09,2004
SunOpta Announces Second Quarter Results; Reports Record Revenues and Earnings

TORONTO--Aug. 9, 2004--SunOpta Inc. (SunOpta or the Company) (Nasdaq:STKL) (TSX:SOY) today announced results for the three months and six months ended June 30, 2004. All amounts are expressed in U.S. dollars.

The Company achieved record revenues for the three months ended June 30, 2004, realizing its 27th 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 $80 million. Revenues in the quarter increased by 54% to $80,946,000 as compared to $52,641,000 in the second quarter of the prior year. These results were driven by internal growth of 16% and the impact of acquisitions completed in late 2003 and the first six months of 2004. For the six months ended June 30, 2004, revenues increased 53% to $143,448,000 from $94,052,000 in the prior year.

Net earnings for the second quarter increased by 146% to $6,024,000, or $0.11 per diluted common share, as compared to $2,448,000 or $0.05 per diluted common share in the second quarter of 2003 (adjusted to U.S. GAAP). For the six months ended June 30, 2004 net earnings were a record $7,894,000, an increase of 121% over the same period in 2003.

The growth in revenues and earnings in 2004 resulted from the following key factors:

    --  Significant increase in sales of oat fiber products resulting
        from the successful expansion projects at the Company's
        Cambridge, Minnesota facility and the recent purchase and
        escalating production of the Cedar Rapids, Iowa facility;

    --  Improvement in the Company's Canadian Distribution operations
        as acquired businesses are integrated into the national
        distribution system and synergies are realized;

    --  Improved results in the Opta Minerals Group, as the demand for
        silica-free abrasives increased in the Eastern United States;

    --  Net earnings in the quarter included a judgment awarded to the
        Company in a lawsuit against a former supplier for breach of
        contract. Excluding this judgment, net earnings per diluted
        common share would have been $0.07 in the second quarter.

The Company continues to maintain a strong balance sheet with working capital of $48,496,000 and total assets of $188,898,000. The long-term debt to equity ratio for the Company as at June 30, 2004 was 0.18 to 1.00. In July, the Company renegotiated its credit agreement with its existing lenders, which included an increase to the Company's term loan to $35,000,000 from $18,700,000, and an increase to existing Canadian and U.S. operating lines of credit. In addition, a $10,000,000 revolving acquisition facility was added to facilitate financing future acquisitions and internal capital growth projects.

Jeremy N. Kendall, Chairman and CEO of SunOpta, commented that "We are very pleased with our second quarter results, both from our base operations and recent additions. We continue to effectively expand on our healthy products business and our second quarter results reflect these efforts."

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 six 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.

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.

SunOpta Inc.
Consolidated Statements of Earnings
For the three months ended June 30, 2004 and 2003
Unaudited
(expressed in thousands of U.S. dollars, except per share amounts)
----------------------------------------------------------------------
                                        June 30,  June 30,
                                            2004      2003           %
                                               $         $      Change
-----------------------------------------------------------  ---------
Revenues                                  80,946    52,641         54%

Cost of goods sold                        64,690    43,536         49%
                                         ------------------  ---------

Gross profit                              16,256     9,105         79%

Warehousing and distribution expenses      1,442       229        530%
Selling, general and administrative
 expenses                                  8,964     5,575         61%
                                         ------------------  ---------

                                          10,406     5,804         79%
                                         ------------------  ---------

Earnings before the following              5,850     3,301         77%

Interest expense                            (152)     (493)       -69%
Interest and other income                  2,499       173       1345%
Foreign exchange gain                        389       254         53%
                                         ------------------  ---------

                                           2,736       (66)
                                         ------------------  ---------

Earnings before income taxes               8,586     3,235        165%

Provision for income taxes                 2,562       787        226%
                                         ------------------  ---------

Net earnings for the period                6,024     2,448        146%
                                         ------------------  ---------
                                         ------------------  ---------

Net earnings per share for the period

   - Basic                                  0.11      0.06
                                         ------------------
                                         ------------------

   - Diluted                                0.11      0.05
                                         ------------------
                                         ------------------
SunOpta Inc.
Consolidated Statements of Earnings
For the six months ended June 30, 2004 and 2003
Unaudited
(expressed in thousands of U.S. dollars, except per share amounts)
----------------------------------------------------------------------
                                        June 30,  June 30,
                                            2004      2003           %
                                               $         $      Change
-----------------------------------------------------------  ---------

Revenues                                 143,448    94,052         53%

Cost of goods sold                       114,921    77,829         48%
                                         ------------------  ---------

Gross profit                              28,527    16,223         76%

Warehousing and distribution expenses      2,597       407        538%
Selling, general and administrative
 expenses                                 16,944    10,792         57%
                                         ------------------  ---------

                                          19,541    11,199         74%
                                         ------------------  ---------

Earnings before the following              8,986     5,024         79%

Interest expense                            (360)     (984)       -63%
Interest and other income                  2,384       210       1035%
Foreign exchange gain                        248       595        -58%
                                         ------------------  ---------

                                           2,272      (179)
                                         ------------------  ---------

Earnings before income taxes              11,258     4,845        132%

Provision for income taxes                 3,364     1,270        165%
                                         ------------------  ---------

Net earnings for the period                7,894     3,575        121%
                                         ------------------  ---------
                                         ------------------  ---------

Net earnings per share for the period

   - Basic                                  0.15      0.08
                                         ------------------  ---------
                                         ------------------  ---------

   - Diluted                                0.14      0.08
                                         ------------------  ---------
                                         ------------------  ---------
SunOpta Inc.
Segmented Information
For the three months ended June 30, 2004
Unaudited
(expressed in thousands of U.S. dollars)
----------------------------------------------------------------------

                                                    Three months ended
                                                         June 30, 2004
----------------------------------------------------------------------
                                               StakeTech
                                                 Steam
                                               Explosion
                            SunOpta      Opta  Technology
                               Food  Minerals  Group and
                              Group     Group  Corporate  Consolidated
                                  $         $          $             $
External revenues by market
U.S.                         44,825     3,570        290       48,685
Canada                       21,123     5,270          -       26,393
Other                         5,716       152          -        5,868
                             -----------------------------------------

Total revenues to
 external customers          71,664     8,992        290       80,946
                             -----------------------------------------

Segment net earnings (loss)
 before interest expense
 and income taxes             8,000     1,717       (979)       8,738
                             -----------------------------------------

Interest expense                  -         -        152          152
                             -----------------------------------------

Provision for income taxes        -         -      2,562        2,562
                             -----------------------------------------

Segment net earnings (loss)   8,000     1,717     (3,693)       6,024
                             -----------------------------------------
The SunOpta Food Group has the following segmented reporting:

                                                    Three months ended
                                                         June 30, 2004
----------------------------------------------------------------------
                    Grains
                   and Soy                           Packaged SunOpta
                  Products Ingredients Distribution  Products    Food
                     Group       Group        Group     Group   Group
                         $           $            $         $       $
External revenues
 by market
U.S.                20,102      14,766            -     9,957  44,825
Canada                 341         443       19,403       936  21,123
Other                4,187       1,479            -        50   5,716
                  --------------------- ------------ -----------------

Total revenues
 from external
 customers          24,630      16,688       19,403    10,943  71,664
                  --------------------- ------------ -----------------

Segment net
 earnings before
 interest
 expense and
 income taxes        1,140       2,043        1,421     3,396   8,000
                  --------------------- ------------ -----------------

SunOpta Inc.
Segmented Information
For the three months ended June 30, 2003
Unaudited
(expressed in thousands of U.S. dollars)
----------------------------------------------------------------------
                                                    Three months ended
                                                         June 30, 2003
----------------------------------------------------------------------
                                               StakeTech
                                                 Steam
                                               Explosion
                            SunOpta      Opta  Technology
                               Food  Minerals  Group and
                              Group     Group  Corporate  Consolidated
                                  $         $          $            $
External revenues by market
U.S.                         37,858     2,543         76       40,477
Canada                        6,523     4,070          -       10,593
Other                         1,520        51          -        1,571
                             -----------------------------------------

Total revenues to
 external customers          45,901     6,664         76       52,641
                             -----------------------------------------

Segment net earnings (loss)
 before interest expense
 and income taxes             3,292       963       (527)       3,728
                             -----------------------------------------

Interest expense                  -         -        493          493
                             -----------------------------------------

Provision for income taxes        -         -        787          787
                             -----------------------------------------

Segment net earnings (loss)   3,292       963     (1,807)       2,448
                             -----------------------------------------


The SunOpta Food Group has the following segmented reporting:

                                                    Three months ended
                                                         June 30, 2003
----------------------------------------------------------------------
                    Grains
                   and Soy                           Packaged SunOpta
                  Products Ingredients Distribution  Products    Food
                     Group       Group        Group     Group   Group
                         $           $            $         $       $
External revenues
 by market
U.S.                18,616      11,082            -     8,160  37,858
Canada                  75         289        5,346       813   6,523
Other                  338       1,182            -         -   1,520
                  --------------------- ------------ -----------------

Total revenues
 from external
 customers          19,029      12,553        5,346     8,973  45,901
                  --------------------- ------------ -----------------

Segment net
 earnings before
 interest
 expense and
 income taxes        1,309       1,067          207       709   3,292
                  --------------------- ------------ -----------------
SunOpta Inc.
Segmented Information
For the six months ended June, 30 2004
Unaudited
(expressed in thousands of U.S. dollars)
----------------------------------------------------------------------
                                                      Six months ended
                                                         June 30, 2004
----------------------------------------------------------------------
                                               StakeTech
                                                 Steam
                                               Explosion
                            SunOpta      Opta  Technology
                               Food  Minerals  Group and
                              Group     Group  Corporate  Consolidated
                                  $         $          $            $
External revenues by market
U.S.                         80,061     7,705        437       88,203
Canada                       36,690     7,974          -       44,664
Other                        10,429       152          -       10,581
                            ------------------------------------------

Total revenues to
 external customers         127,180    15,831        437      143,448
                            ------------------------------------------

Segment net earnings
 (loss) before interest
 expense and income taxes    11,221     2,224     (1,827)      11,618
                            ------------------------------------------

Interest expense                  -         -        360          360
                            ------------------------------------------

Provision for income taxes        -         -      3,364        3,364
                            ------------------------------------------

Segment net earnings (loss)  11,221     2,224     (5,551)       7,894
                            ------------------------------------------


The SunOpta Food Group has the following segmented reporting:

                                                      Six months ended
                                                         June 30, 2004
----------------------------------------------------------------------
                   Grains
                  and Soy                           Packaged  SunOpta
                 Products Ingredients Distribution  Products     Food
                    Group       Group        Group     Group    Group
                        $           $            $         $        $
External
 revenues
 by market
U.S.               34,483      28,043            -    17,535   80,061
Canada                500         936       33,404     1,850   36,690
Other               7,330       2,994            -       105   10,429
                 --------------------- ------------ ------------------

Total revenues
 from external
 customers         42,313      31,973       33,404    19,490  127,180
                 --------------------- ------------ ------------------

Segment net
 earnings before
 interest
 expense and
 income taxes       1,662       3,829        2,579     3,151   11,221
                 --------------------- ------------ ------------------
SunOpta Inc.
Segmented Information
For the six months ended June 30, 2003
Unaudited
(expressed in thousands of U.S. dollars)
----------------------------------------------------------------------
                                                      Six months ended
                                                         June 30, 2003
----------------------------------------------------------------------
                                               StakeTech
                                                 Steam
                                               Explosion
                            SunOpta      Opta  Technology
                               Food  Minerals  Group and
                              Group     Group  Corporate  Consolidated
                                  $         $          $            $
External revenues by market
U.S.                         67,682     4,536        301       72,519
Canada                       11,031     7,452          -       18,483
Other                         2,972        75          3        3,050
                             -----------------------------------------

Total revenues to
 external customers          81,685    12,063        304       94,052
                             -----------------------------------------

Segment net earnings (loss)
 before interest expense and
 income taxes                 4,980     1,435       (586)       5,829
                             -----------------------------------------

Interest expense                  -         -        984          984
                             -----------------------------------------

Provision for income taxes        -         -      1,270        1,270
                             -----------------------------------------

Segment net earnings (loss)   4,980     1,435     (2,840)       3,575
                             -----------------------------------------


The SunOpta Food Group has the following segmented reporting:

                                                      Six months ended
                                                         June 30, 2003
----------------------------------------------------------------------
                 Grains
                and Soy                              Packaged  SunOpta
               Products   Ingredients  Distribution  Products   Food
                  Group         Group         Group     Group   Group
                      $             $             $         $       $
External
 revenues by
 market
U.S.             31,161        20,848             -    15,673  67,682
Canada              128           578         9,269     1,056  11,031
Other               594         2,378             -         -   2,972
               ----------------------- ------------- -----------------

Total revenues
 from external
 customers       31,883        23,804         9,269    16,729  81,685
               ----------------------- ------------- -----------------

Segment net
 earnings
 before
 interest
 expense and
 income taxes     1,646         1,455           256     1,623   4,980
               ----------------------- ------------- -----------------
SunOpta Inc.
Consolidated Balance Sheets
As at June 30, 2004 and December 31, 2003
Unaudited
(expressed in thousands of U.S. dollars)

                                      June 30,  December 31,
                                          2004         2003          %
                                             $            $     Change
------------------------------------------------------------  --------

Assets

Current assets
Cash and cash equivalents                1,609       21,990       -93%
Accounts receivable - trade             38,487       26,241        47%
Inventories                             40,288       34,778        16%
Prepaid expenses and
 other current assets                    5,877        2,524       133%
Income taxes recoverable                     -        1,686      -100%
Future income taxes                        667        1,172       -43%
                                   -------------------------  --------

                                        86,928       88,391        -2%

Assets held for sale                       193        6,007       -97%
Property, plant and equipment, net      54,535       44,761        22%
Goodwill and intangibles, net           40,198       25,084        60%
Future income taxes                      6,715        9,023       -26%
Other assets                               329          490       -33%
                                   -------------------------  --------

                                       188,898      173,756         9%
                                   -------------------------  --------
                                   -------------------------  --------

Liabilities

Current liabilities
Bank indebtedness                        3,515            -
Accounts payable and
 accrued liabilities                    29,962       24,670        21%
Customer and other deposits                  -        1,778      -100%
Current portion of long-term debt        4,104        3,840         7%
Current portion of
 long-term payables                        851          740        15%
                                   -------------------------  --------

                                        38,432       31,028        24%

Long-term debt                          19,787       21,196        -7%
Long-term payables                       1,294        1,591       -19%
                                   -------------------------  --------

                                        59,513       53,815        11%
                                   -------------------------  --------
Shareholders' Equity

Capital stock                           98,590       96,636         2%
Contributed surplus                      3,384        3,384         0%
Retained earnings                       23,673       15,779        50%
Accumulated other
 comprehensive income                    3,738        4,142       -10%
                                   -------------------------  --------

                                       129,385      119,941         8%
                                   -------------------------  --------

                                       188,898      173,756         9%
                                   -------------------------  --------
                                   -------------------------  --------
    CONTACT: SunOpta Inc.
             Jeremy N. Kendall, Steve Bromley, John Dietrich,
             Susan Wiekenkamp, 905-455-2528, ext 103
             email: swiekenkamp@sunopta.com
             website: www.sunopta.com

    SOURCE: SunOpta Inc.

Multimedia Files:

View all news