TORONTO, Jul 21, 2008 (PrimeNewswire via COMTEX News Network) --
SunOpta Inc. (Nasdaq:STKL) (TSX:SOY) today announced financial results for the year ended December 31, 2007 and also provided restated quarterly financial results for the quarters ended March 31, 2007, June 30, 2007 and September 30, 2007. All amounts are expressed in US dollars.
For fiscal 2007 the Company had revenues of $804,494,000 as compared to revenues of $598,026,000 in 2006, an increase of 34.5%. Fiscal 2007 revenues in the SunOpta Food Group increased to $727,290,000 from $530,453,000 in 2006, or 37.1%, including internal growth of 21.2%. The Company's consolidated internal revenue growth was 18.2%. Revenues in Opta Minerals Inc. increased 17.3% from 2006 to 2007 to $75,365,000 and revenues in SunOpta BioProcess Group declined 44.5% during the same period to $1,839,000. As a result the Company has now realized 41 consecutive quarters of consolidated revenue growth versus
the same quarter in the previous year.
Earnings for the year were $407,000, or $0.01 per diluted common share as compared to $10,959,000 or $0.19 per diluted common share in 2006. Earnings for the year were impacted by certain one-time issues as noted below.
Segment operating income(1) decreased in 2007 to $5,662,000, or 75.7% compared to 2006. Segment operating income in the SunOpta Food Group decreased $10,659,000 or 46.3%, driven by a reduction of $24,083,000 in the SunOpta Fruit Group, that resulted from higher inventory, commodity, storage and processing costs, which the group did not fully pass on to customers and higher SG&A to support this segment. This shortfall was offset by strong gains in the balance of the Company's Food operations. The SunOpta Grains and Foods Group realized a 156.2% increase in segment operating income, driven by strong demand for natural
and organic grains and grains based ingredients and packaged products combined with the turnaround in the group's sunflower business. The SunOpta Distribution Group realized a 65.3% increase in segment operating income as a result of continued internal growth and efficiency gains combined with the impact of acquisitions completed in 2006 and 2007. The SunOpta Ingredients Group also realized a 13.5% increase in segment operating earnings as a result of increased volumes and operating efficiencies.
(1) Earnings before dilution gain, goodwill impairment, interest, taxes and minority interest.
Segment operating income within Opta Minerals Inc. in 2007 was $6,668,000 as compared to $6,876,000 in 2006, a decline of $208,000, or 3.0%, reflecting the positive impact of acquisitions completed in 2006 and 2007, offset by declines in certain legacy sectors due to cyclical economic
weakness. The combined SunOpta BioProcess and Corporate Group segment operating income declined $6,769,000 from 2006 to 2007 due to reduced margins on certain equipment contracts, a provision of $3,342,000 against a disputed equipment supply contract and increased corporate, legal and professional fees, related primarily to the incremental year end activities.
At December 31, 2007, the Company's balance sheet reflected a current working capital ratio of 1.87 to 1.00, long-term debt to equity ratio of 0.39 to 1.00 and total debt to equity ratio of 0.62 to 1.00. The Company had total assets on December 31, 2007 of $564,540,000 and a net book value of $3.97 per outstanding share. The Company has obtained a waiver from its lending syndicate for the fiscal year ended December 31, 2007 and March 31, 2008 and amendments to certain covenants for the fiscal quarters ending June 30, 2008,
September 30, 2008, December 31, 2008 and March 31, 2009 and the fiscal year ending December 31, 2008.
The Company has restated financial results for the quarters ended March 31, 2007, June 30, 2007 and September 30, 2007 to reflect adjustments required to account primarily for the previously announced inventory write-downs and other adjustments in the SunOpta Fruit Group. Earnings per share for the quarter ended March 31, 2007 were amended to $0.02 per diluted common share versus the previously reported $0.06 per diluted common share; earnings for the quarter ended June 30, 2007 were amended to $0.05 per diluted common share versus the previously reported $0.11 per diluted common share; and earnings per share for the quarter ended September 30, 2007 were amended to $0.05 per diluted common share versus the previously reported $0.08 per diluted common share.
The Company
expects to file its annual report on Form 10-K for the year ended December 31, 2007 and amended quarterly reports on Forms 10-QA for the quarters ended March 31, 2007, June 30, 2007 and September 30, 2007 by the close of business on July 21, 2008. In addition, the Company expects to file a Form 10-Q for the quarter ended March 31, 2008 by July 31, 2008. At that time the Company plans to host a shareholder conference call to discuss the results and ongoing business activities.
The Company anticipates filing results for the second fiscal quarter ended June 30, 2008 by August 9, 2008 and plans to host a shareholder call at the time to further discuss the results and update ongoing business activities.
About SunOpta Inc.
SunOpta Inc. is an operator of high-growth ethical businesses, focusing on integrated business models in the natural and organic food, supplements and
health and beauty markets. The Company has three business units: the SunOpta Food Group, which specializes in sourcing, processing and distribution of natural and organic food and natural health products integrated from seed through packaged products; Opta Minerals Inc. (TSX:OPM) (66.6% owned by SunOpta), a producer, distributor, and recycler of environmentally friendly industrial materials; and the SunOpta BioProcess Inc. which engineers and markets proprietary steam explosion technology systems for the bio-fuel, pulp and food processing industries. Each of these business units has proprietary products and services that give it a solid competitive advantage in its sector.
The SunOpta Inc. logo is available at http://www.primenewswire.com/newsroom/prs/?pkgid=3958
Forward Looking Statements
Certain statements included in this press release may constitute
"forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to the timing for filing the Company's periodic report and release of financial results. Whether actual timing will agree with expectations and predications of the Company is subject to many risks and uncertainties including, but not limited to, completion of the Company's internal and the external accounting procedures, which is partially beyond the control of the Company. 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 Earnings and Comprehensive Income
For the years ended December 31, 2007 and 2006
Unaudited
(Expressed in thousands of U.S. dollars, except per share amounts)
-------------------------------------------------------------------
2007 2006 %
$ $ change
Revenues 804,494 598,026 34.5%
Cost of goods sold 676,360 496,292 36.3%
----------------------------
Gross profit 128,134 101,734 26.0%
Warehousing and distribution
expenses 20,899 16,114 29.7%
Selling, general and administrative
expenses 97,911 59,272 65.2%
Intangible asset amortization 4,201 2,864 46.7%
Other expense, net 1,187 1,147 3.5%
Foreign exchange (gain) loss (539) 186 (389.8%)
----------------------------
Earnings before the following 4,475 22,151 (79.8%)
Dilution gain 693 -- --
Goodwill impairment (996) -- --
Interest expense, net (8,823) (7,021) 25.7%
----------------------------
(Loss) earnings before income taxes (4,651) 15,130 (130.7%)
(Recovery of) provision for
income taxes (6,101) 3,129 (295.0%)
----------------------------
Earnings before minority interest 1,450 12,001 (87.9%)
Minority interest 1,043 1,042 0.1%
----------------------------
Earnings for the year 407 10,959 (96.3%)
----------------------------
Earnings per share for the year
Basic 0.01 0.19
------------------
Diluted 0.01 0.19
------------------
SunOpta Inc.
Consolidated Balance Sheets
As at December 31, 2007 and 2006
Unaudited
(Expressed in thousands of U.S. dollars)
-------------------------------------------------------------------
2007 2006
$ $
Assets
Current assets
Cash and cash equivalents 30,302 954
Accounts receivable 87,729 73,599
Inventories 182,729 126,736
Prepaid expenses and other current assets 10,201 8,129
Current income taxes recoverable 1,491 1,829
Deferred income taxes 1,749 1,824
-----------------
314,201 213,071
Property, plant and equipment 116,389 87,487
Goodwill 55,503 50,521
Intangible assets 62,076 46,879
Deferred income taxes 14,110 5,615
Other assets 2,261 1,157
-----------------
564,540 404,730
-----------------
Liabilities
Current liabilities
Bank indebtedness 58,806 40,663
Accounts payable and accrued liabilities 93,462 80,851
Customer and other deposits 1,300 957
Current portion of long-term debt 13,119 8,433
Current portion of long-term liabilities 1,304 1,736
-----------------
167,991 132,640
Long-term debt 85,595 69,394
Long-term liabilities 3,275 3,607
Deferred income taxes 11,430 12,156
-----------------
268,291 217,797
-----------------
Minority interest 13,863 10,230
Preferred shares of subsidiary company 27,409 --
Shareholders' Equity
Capital stock 176,547 112,318
Authorized
Unlimited common shares without par value
Issued
64,149,593 (December 31, 2006 -
57,672,053) common shares
Additional paid in capital 5,967 4,188
Retained earnings 51,845 51,338
Accumulated other comprehensive income 20,618 8,859
-----------------
254,977 176,703
-----------------
564,540 404,730
-----------------
SunOpta Inc.
Consolidated Statements of Cash Flows
For the years ended December 31, 2007 and 2006
Unaudited
(Expressed in thousands of U.S. dollars)
-------------------------------------------------------------------
2007 2006
Cash provided by (used in) $ $
Operating activities
Earnings for the year 407 10,959
Items not affecting cash;
Amortization 15,058 11,701
Deferred income taxes (8,752) 72
Minority interest 1,043 1,042
Write-off of other assets 1,005 --
Goodwill impairment 996 --
Stock based compensation 867 556
Loss on disposal of property,
plant and equipment 663 --
Write-off of legal receivable 501 --
Loss on fair value of interest
rate swap at inception 254 --
Non-cash interest accretion 217 --
Dilution gain (693) --
Other 744 (11)
Changes in non-cash working capital,
net of businesses acquired (47,387) (14,815)
--------------------
(35,077) 9,504
--------------------
Investing activities
Acquisition of companies,
net of cash acquired (21,319) (33,188)
Purchases of property,
plant and equipment, net (29,686) (10,911)
Proceeds from sale of property,
plant and equipment 65 193
Purchase of patents, trademarks
and other intangible assets (1,805) (95)
Increase in other assets (1,076) --
Other (282) 2,605
--------------------
(54,103) (41,396)
--------------------
Financing activities
Increase in line of credit facilities 18,011 12,666
Proceeds from the issuance of preferred
shares by subsidiary 27,954 --
Borrowings under long-term debt 33,216 15,373
Repayment of long-term debt (21,127) (4,534)
Payment of deferred purchase consideration (2,156) (356)
Proceeds from the issuance of
common shares, net of issuance costs 54,989 4,501
Proceeds from exercise of warrants 7,501 --
Other (357) (390)
--------------------
118,031 27,260
--------------------
Foreign exchange gain on cash held
in foreign currency 497 131
--------------------
Increase (decrease) in cash and
cash equivalents during the year 29,348 (4,501)
Cash and cash equivalents - beginning of year 954 5,455
--------------------
Cash and cash equivalents - end of year 30,302 954
--------------------
SunOpta Inc.
Segmented Information
For the years ended December 31, 2007 and 2006
Unaudited
(Expressed in thousands of U.S. dollars)
--------------------------------------------------------------------
Twelve months ended
December 31, 2007
---------------------------------------
SunOpta
Opta BioProcess
SunOpta Minerals and Consoli-
Food Group Inc. Corporate dated
$ $ $ $
---------------------------------------
Total revenues
from external
customers 727,290 75,365 1,839 804,494
---------------------------------------
Segment Operating
Income(1) 12,348 6,668 (13,354) 5,662
---------------------------------------
The SunOpta Food Group has the following segmented reporting:
Twelve months ended
December 31, 2007
---------------------------------------------
SunOpta
SunOpta SunOpta Distri- SunOpta
Grains & Ingredi- SunOpta bution Food
Foods ents Fruit Group Group
$ $ $ $ $
---------------------------------------------
Total revenues
from external
customers 246,392 74,704 186,684 219,510 727,290
---------------------------------------------
Segment Operating
Income(1) 14,993 6,008 (17,682) 9,029 12,348
---------------------------------------------
Twelve months ended
December 31, 2006
----------------------------------------
SunOpta
Opta BioProcess
SunOpta Minerals and Consoli-
Food Group Inc. Corporate dated
$ $ $ $
----------------------------------------
Total revenues
to external
customers 530,453 64,261 3,312 598,026
----------------------------------------
Segment Operating
Income(1) 23,007 6,876 (6,585) 23,298
----------------------------------------
The SunOpta Food Group has the following segmented reporting:
Twelve months ended
December 31, 2006
---------------------------------------------
SunOpta
SunOpta SunOpta Distri- SunOpta
Grains & Ingredi- SunOpta bution Food
Foods ents Fruit Group Group
$ $ $ $ $
---------------------------------------------
Total revenues
from external
customers 185,646 66,465 142,817 135,525 530,453
----------------------------------------------
Segment Operating
Income(1) 5,852 5,293 6,401 5,461 23,007
----------------------------------------------
(1)(Segment Operating Income is defined as "Earnings before
the following" excluding the impact of "other expense, net")
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SOURCE: SunOpta Inc.
SunOpta Inc.
Jeremy N. Kendall, Chairman
Steve Bromley, President & CEO
John Dietrich, Vice President & CFO
Tony Tavares, Chief Operating Officer
Susan Wiekenkamp, Information Officer
905-455-2528, ext 103
susan.wiekenkamp@sunopta.com
www.sunopta.com
Lytham Partners, LLC
Investment Community Inquiries:
Joe Diaz
diaz@lythampartners.com
Robert Blum
Joe Dorame
602-889-9700
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