View all news

SunOpta Announces Fiscal 2008 Year-End Results

March 05,2009

TORONTO, Mar 5, 2009 (GlobeNewswire via COMTEX News Network) -- 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 year ended December 31, 2008. All amounts are expressed in U.S. dollars and results are reported in accordance with U.S. GAAP.

For fiscal 2008 the Company realized record revenues of $1.055 billion, an increase of 31.5% versus fiscal 2007 revenues of $802.5 million. These results were led by a 32.4% increase in revenues from the SunOpta Food Group and reflect a consolidated internal growth rate of approximately 16% for fiscal 2008.

On a GAAP basis for fiscal 2008 the Company realized a loss of ($10.9) million or ($0.17) per diluted common share including the impact of non-cash charges for goodwill impairment in certain operations and non-cash tax valuation allowances totaling $13.7 million or $0.21 per diluted common share, due in part to recent economic conditions and the decline in the Company's stock price.

Adjusted earnings(1) for fiscal 2008 were $13.3 million or $0.21 per diluted common share after adjusting for professional fees, severance and related costs incurred during the year related to the investigation of internal controls in the SunOpta Fruit Group and the Company's restatement of financial results for the first three months of 2007, non-cash charges for goodwill impairment and tax valuation allowances plus non-recurring start up and operational costs. Excluding non-recurring start up and operational costs, earnings were $10.8 million or $0.17 per diluted common share versus previous guidance of $0.19 to $0.23 per diluted common share. Segment operating income(2) for the year was $16.2 million as compared to $5.7 million in 2007, an increase of 186%.

During fiscal 2008 the Company realized cash from operating activities of $33.7 million versus cash used in 2007 of $35.1 million, a year over year improvement of $68.8 million, indicative of the extensive efforts to reduce working capital and control spending across the organization. Excluding the impact of credit facilities included with acquisitions completed in 2008, the Company reduced bank indebtedness by $24.6 million versus an increase of $18.0 million in 2007.

At December 31, 2008 the Company's balance sheet reflects a current working capital ratio of 1.74 to 1.00, long term debt to equity ratio of 0.49 to 1.00 and total debt to equity ratio of 0.79 to 1.00. The Company has total assets of $581.0 million and a net book value of $3.52 per outstanding share. The Company is in compliance with all banking covenants as at December 31, 2008.

Steve Bromley, President and Chief Executive Officer of SunOpta commented, "2008 was certainly a challenging year for our Company as we navigated through the issues we experienced in the SunOpta Fruit Group and the impact of the deterioration in the global economy. We have started 2009 with a cautious sense of awareness of the difficulties in the global economic environment, but confident that our position as a key player in health conscious food categories, combined with numerous cost control, efficiency and product development initiatives focused on improving and solidifying our business, will lead us to improved returns in 2009 and beyond."

Segment operating income(2) for the year was $16.2 million as compared to $5.7 million in 2007, an increase of 186%. Segment operating income(2) within the SunOpta Food Group increased 84.9%. The improved segment operating income(2) in the SunOpta Food Group was driven by record results in the SunOpta Grains & Foods Group and SunOpta Distribution Group. There is continued demand for the Food Groups natural, organic and specialty foods and natural health product offerings as consumers focus on health conscious food categories. The SunOpta Fruit Group reduced its losses as a result of a sharpened and continued focus on margin improvement and cost containment. Prospects for the SunOpta Fruit Group for 2009 are encouraging.

Segment operating income(2) within Opta Minerals declined approximately 17% to $5.5 million in 2008, reflecting the precipitous drop in the fourth quarter in the foundry and steel industries as a result of the decline in the global economy and a $2.8 million write-down of magnesium inventory to realizable value. Operations have been restructured to deal with this decline and the group is well positioned to benefit from expected increased infrastructure spending in 2009. Segment operating results in the SunOpta BioProcess Group improved in 2008 but remain in a loss position. The group remains focused on leveraging their technology and expertise in the production of cellulosic ethanol, a category that is believed offers excellent long term growth potential as the world looks to reduces its dependence on fossil fuels and reduce green house gas emissions.

For the fourth quarter of 2008 the Company realized revenues of $245.0 million versus $209.8 million in 2007, an increase of 16.8%. On a GAAP basis the Company realized a loss of ($17.0) or ($0.27) per diluted common share including the impact of non-cash charges for goodwill impairment and non-cash tax valuation allowances totalling $0.21 per diluted common share as well as charges related to the unfavourable arbitration decision in SunOpta BioProcess and professional fees and related costs totalling $0.03 per diluted common share, resulting in an adjusted loss(1) for the quarter of ($1.1) million or ($0.02) per diluted common share. Results in the quarter were significantly impacted by pre-tax commodity cost write-downs of approximately $3.6 million on certain commodities which needed to be marked to market.

As previously announced, as a result of the current uncertain and rapidly changing world-wide macroeconomic conditions, the Company has decided to take a more cautious approach with regard to providing guidance, and in doing so has decided not to provide specific revenue and earnings guidance for 2009. The Company will provide updates when appropriate related to material changes in business affairs resulting from changes in economic conditions. The Company expects to realize improved results in 2009 as a result of improved pricing and product mix; the impact of capacity expansion, cost reduction and rationalization initiatives; fixed cost leverage; and the avoidance of certain professional fees, severance and operational costs incurred in 2008 which are not expected to reoccur to the same extent in 2009. The Company's primary focus for 2009 remains the improvement of operating margins and return on assets employed.

SunOpta will host a conference call at 10:00 am Eastern Standard Time on Friday March 6, 2009 to discuss these results and recent corporate developments. The conference call can be accessed toll free by dialing 1-(866) 322-2356 or (416) 640-3405 followed by pass code 4939312#.

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) (66.2% 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. 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.globenewswire.com/newsroom/prs/?pkgid=3958

Forward Looking Statements

Certain statements included in this press release regarding 2008 results and 2009 plans and projected results are "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities legislation, and 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 for improved financial results in 2009 and beyond, increased infrastructure spending in 2009 and the long term growth potential of cellulosic ethanol as well as the Company's business strategy and objectives. The terms and phrases "will", "continued", "prospects", "expected", "believed" 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 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, product pricing levels, customer demand, competitive intensity, cost rationalization initiatives, product development initiatives, projected capacity expansion, supply contracts and certain market publications and studies. 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, economic conditions, consumer spending patterns, potential failure of product development initiatives, availability and pricing of raw materials and supplies and other risks described from time to time under "Risk Factors" in the Company's Annual Report on Form 10-K (available at www.sec.gov). 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. We assume no obligation to update these forward looking statements except as required by law.

(1) Adjusted earnings (loss) is not a GAAP measure. SunOpta believes adjusted earnings (adjusted for the impact of the professional fees and severance costs incurred in relation to the investigation and related activities, non-recurring start up and operational costs plus the non-cash charges for goodwill impairment and tax valuation allowances) provides useful information to understand the underlying performance of the business and as a result these items have been adjusted.

(2) Segment Operating Income is defined as "Earnings Before the Following" excluding the impact of "Other expenses, net" and "Goodwill Impairment." This provides useful information to understand the underlying performance of the particular segment of the Company's business.

 SunOpta Inc.
 Consolidated Statements of Operations
 For the years ended December 31, 2008 and 2007
 (Expressed in thousands of U.S. dollars, except per share amounts)
 (Unaudited)

 ---------------------------------------------------------------------

                                December 31,  December 31,          %
                                        2008          2007     change
                                           $             $

 Revenues                          1,055,173       802,494      31.5%

 Cost of goods sold                  899,078       676,360      32.9%
                                --------------------------------------

 Gross profit                        156,095       126,134      23.8%

 Warehousing and distribution
  expenses                            21,040        20,899       0.7%
 Selling, general and
  administrative expenses            117,808        95,911      22.8%
 Intangible asset amortization         5,879         4,201      39.9%
 Other expenses, net                   1,003         1,187     (15.5%)
 Goodwill impairmant                  10,154           996     919.5%
 Foreign exchange gain                (4,835)         (539)    797.0%
                                --------------------------------------

 Earnings before the following         5,046         3,479      45.0%

 Dilution gain                            --           693        --

 Interest expense, net               (14,281)       (8,823)     61.9%
                                --------------------------------------

 Loss before income taxes             (9,235)       (4,651)     98.6%

 Provision for (recovery of)
  income taxes                           790        (6,101)   (112.9%)
                                --------------------------------------

 (Loss) earnings before
  minority interest                  (10,025)        1,450    (791.4%)

 Minority interest                       911         1,043     (12.7%)
                                --------------------------------------

 (Loss) earnings for the year        (10,936)          407  (2,787.0%)
                                --------------------------------------

 (Loss) earnings per share for
  the year

  Basic                                (0.17)         0.01
                                --------------------------

  Diluted                              (0.17)         0.01
                                --------------------------


 SunOpta Inc.
 Consolidated Balance Sheets
 As at December 31, 2008 and December 31, 2007
 (Expressed in thousands of U.S. dollars)
 (Unaudited)

 ---------------------------------------------------------------------

                                            December 31,  December 31,
                                                    2008          2007
                                                       $             $
 Assets

 Current assets
 Cash and cash equivalents                        24,755        30,302
 Accounts receivable                              95,129        87,729
 Inventories                                     200,689       181,460
 Prepaid expenses and other current assets        14,448        15,879
 Current income taxes recoverable                    595         1,491
 Deferred income taxes                               493         1,749
                                            --------------------------
                                                 336,109       318,610

 Property, plant and equipment                   110,641       116,389
 Goodwill                                         54,022        55,503
 Intangible assets                                63,161        62,076
 Deferred income taxes                            16,160        14,110
 Other assets                                        954         2,752
                                            --------------------------
                                                 581,047       569,440
                                            --------------------------
 Liabilities

 Current liabilities
 Bank indebtedness                                67,164        58,806
 Accounts payable and accrued liabilities        106,989        93,462
 Customer and other deposits                       1,228         1,300
 Other current liabilities                         4,437         4,868
 Current portion of long-term debt                12,174        13,119
 Current portion of long-term liabilities          1,362         1,304
                                            --------------------------
                                                 193,354       172,859

 Long-term debt                                   99,353        85,595
 Long-term liabilities                             5,017         3,307
 Deferred income taxes                            13,614        11,430
                                            --------------------------
                                                 311,338       273,191
                                            --------------------------

 Minority interest                                15,102        13,863

 Preferred shares of a subsidiary company         27,796        27,409

 Shareholders' Equity

 Capital stock
  64,493,320 common shares (December 31,
   2007 - 64,149,593)                            177,858       176,547
 Additional paid in capital                        6,778         5,967
 Retained earnings                                40,909        51,845
 Accumulated other comprehensive income            1,266        20,618
                                            --------------------------
                                                 226,811       254,977
                                            --------------------------
                                                 581,047       569,440
                                            --------------------------


 SunOpta Inc.
 Consolidated Statements of Cash Flow
 For the years ended December 31, 2008 and 2007
 (Expressed in thousands of U.S. dollars)
 (Unaudited)

 ---------------------------------------------------------------------

                                            December 31,  December 31,
                                                    2008          2007
                                                       $             $

 Cash provided by (used in)

 Operating activities
 (Loss) earnings for the year                   (10,936)          407
 Items not affecting cash
  Amortization                                   19,364        15,058
  Goodwill impairment                            10,154           996
  Stock-based compensation                        1,106           867
  Dilution gain                                      --          (693)
  Minority interest                                 911         1,043
  Deferred income taxes                          (1,116)       (8,752)
  Other                                             833         3,384
 Changes in non-cash working capital, net
  of businesses acquired                         13,369       (47,387)
                                            --------------------------
                                                 33,685       (35,077)
                                            --------------------------

 Investing activities
 Acquisition of businesses, net of cash
  acquired                                       (5,267)      (21,319)
 Purchases of property, plant and equipment      (9,650)      (29,686)
 Proceeds from disposal of property, plant
  and equipment                                   2,005            65
 Payment of deferred purchase consideration      (2,042)       (2,156)
 Purchase of patents, trademarks and other
  intangible assets                                (673)       (1,805)
 Other                                             (105)       (1,358)
                                            --------------------------
                                                (15,732)      (56,259)
                                            --------------------------
 Financing activities
 (Decrease) increase in line of credit
  facilities                                    (24,584)       18,011
 Proceeds from the issuance of preferred
  shares by a subsidiary                             --        27,954
 Borrowings under long-term debt                 15,655        33,216
 Repayment of long-term debt                    (15,322)      (21,127)
 Proceeds from the issuance of common
  shares, net of issuance costs                   1,016        54,989
 Other                                              337         7,144
                                            --------------------------
                                                (22,398)      120,127
                                            --------------------------

 Foreign exchange (loss) gain on cash held
  in a foreign currency                            (602)          497
                                            --------------------------

 (Decrease) increase in cash and cash
  equivalents during the period                  (5,547)       29,348

 Cash and cash equivalents - beginning of
  the period                                     30,302           954
                                            --------------------------

 Cash and cash equivalents - end of the
  period                                         24,755        30,302
                                            --------------------------


 SunOpta Inc.
 Segmented Information
 For the years ended December 31, 2008 and 2007
 (Expressed in thousands of U.S. dollars)
 (Unaudited)

 ---------------------------------------------------------------------
                                                                  2008
                ------------------------------------------------------
                SunOpta
                   Food      Opta     SunOpta
                  Group  Minerals  BioProcess  Corporate  Consolidated
                      $         $           $          $             $
                ------------------------------------------------------

 Total revenues
  from external
  customers     960,316    93,422       1,435         --     1,055,173
                ------------------------------------------------------

Segment
 Operating
 Income(1)       22,833     5,531      (3,286)    (8,875)       16,203
                ------------------------------------------------------

 The SunOpta Food Group has the following segmented reporting:

              --------------------------------------------------------
                                                                  2008
              --------------------------------------------------------
              SunOpta
               Grains                                 SunOpta  SunOpta
                  and     SunOpta     Fruit           Distri-     Food
                Foods  Ingredients    Group      IST   bution    Group
                    $            $        $        $        $        $
              --------------------------------------------------------

 Total
  revenues
  from
  external
  customers   327,307       65,270  150,879  157,817  259,046  960,316
              --------------------------------------------------------

 Segment
  Operating
  Income(1)    18,541        3,392  (10,219)   1,333    9,786   22,833
              --------------------------------------------------------

 ---------------------------------------------------------------------

 ---------------------------------------------------------------------
                                                                  2007
                ------------------------------------------------------
                SunOpta
                   Food      Opta     SunOpta
                  Group  Minerals  BioProcess  Corporate  Consolidated
                      $         $           $          $             $
                ------------------------------------------------------

 Total revenues
  from external
  customers     725,290    75,365      1,839          --       802,494
                ------------------------------------------------------

Segment
 Operating
 Income(1)       12,348     6,668     (5,985)     (7,369)        5,662
                ------------------------------------------------------

 The SunOpta Food Group has the following segmented reporting:

              --------------------------------------------------------
                                                                  2007
              --------------------------------------------------------
              SunOpta
               Grains                                 SunOpta  SunOpta
                  and     SunOpta     Fruit           Distri-     Food
                Foods  Ingredients    Group      IST   bution    Group
                    $            $        $        $        $        $
              --------------------------------------------------------

 Total
  revenues
  from
  external
  customers   248,021       70,315  133,645   53,039  220,270  725,290
              --------------------------------------------------------

Segment
 Operating
 Income(1)     16,155        4,432  (18,679)     997    9,443   12,348
              --------------------------------------------------------

 (1) Segment Operating Income is defined as "Earnings Before the
 Following" excluding the impact of "Other expenses, net" and
 "Goodwill Impairment."


 SunOpta Inc.
 Consolidated Statements of Operations
 For the three months ended December 31, 2008 and 2007
 (Expressed in thousands of U.S. dollars, except per share amounts)
 (Unaudited)

 ---------------------------------------------------------------------

                                December 31,  December 31,          %
                                        2008          2007     change
                                           $             $



 Revenues                           245,037       209,838       16.8%

 Cost of goods sold                 216,319       182,885       18.3%
                                --------------------------------------

 Gross profit                        28,718        26,953        6.6%

 Warehousing and distribution
  expenses                            4,858         5,794      (16.2%)
 Selling, general and
  administrative expenses            25,852        30,424      (15.0%)
 Intangible asset amortization        1,627         1,189       36.8%
 Other expenses, net                  1,003           408      145.8%
 Goodwill impairment                 10,154           996      919.5%
 Foreign exchange loss                  501           277       80.9%
                                --------------------------------------

 Loss before the following          (15,277)      (12,135)      38.3%

 Interest expense, net               (3,797)       (2,745)      25.9%
                                --------------------------------------

 Loss before income taxes           (19,074)      (14,880)      28.2%

 Recovery of income taxes            (1,375)       (7,863)     (82.5%)
                                --------------------------------------

 Loss before minority interest      (17,699)       (7,017)    (152.2%)

 Minority interest                     (654)           78      938.5%
                                --------------------------------------

 Loss for the three months
  ended                             (17,045)       (7,095)    (140.2%)
                                --------------------------------------

 Loss per share for the three
  months ended

  Basic                               (0.27)        (0.11)
                                --------------------------

  Diluted                             (0.27)        (0.11)
                                --------------------------


 SunOpta Inc.
 Consolidated Statements of Cash Flow
 For the three months ended December 31, 2008 and 2007
 (Expressed in thousands of U.S. dollars)
 (Unaudited)

 ---------------------------------------------------------------------

                                            December 31,  December 31,
                                                    2008          2007
                                                       $             $

 Cash provided by (used in)

 Operating activities
 Loss for the three months ended                (17,045)       (7,095)
 Items not affecting cash
  Amortization                                    5,013         4,348
  Goodwill impairment                            10,154           996
  Minority interest                                (654)           79
  Deferred income taxes                          (1,091)       (2,477)
  Other                                           1,255         2,656
 Changes in non-cash working capital, net
  of businesses acquired                         23,317        16,277
                                            --------------------------
                                                 20,949        14,784
                                            --------------------------

 Investing activities
 Acquisition of businesses, net of cash
  acquired                                           --        (1,735)
 Purchases of property, plant and equipment      (2,732)       (7,762)
 Proceeds from disposal of property, plant
  and equipment                                   2,005            65
 Payment of deferred purchase consideration         (83)         (688)
 Purchase of patents, trademarks and other
  intangible assets                                (176)         (883)
 Decrease in short term investments              20,000            --
 Other                                             (128)          255
                                            --------------------------
                                                 18,886       (10,748)
                                            --------------------------
 Financing activities
 Decrease in line of credit facilities          (21,849)      (22,578)
 Proceeds from exercise of warrants                  --         7,501
 Borrowings under long-term debt                    581        10,135
 Repayment of long-term debt                     (2,375)       (2,839)
 Proceeds from the issuance of common
  shares, net of issuance costs                     199           973
 Other                                             (103)         (312)
                                            --------------------------
                                                (23,547)       (7,120)
                                            --------------------------

 Foreign exchange (loss) gain on cash held
  in a foreign currency                            (649)           22
                                            --------------------------

 (Decrease) increase in cash and cash
  equivalents during the period                  15,639        (3,062)

 Cash and cash equivalents - beginning of
  the period                                      9,116        33,364
                                            --------------------------

 Cash and cash equivalents - end of the
  period                                         24,755        30,302
                                            --------------------------


 SunOpta Inc.
 Supplemental Information
 For the years ended December 31, 2008 and 2007
 (Expressed in thousands of U.S. dollars)
 (Unaudited)

 ---------------------------------------------------------------------
                                            December 31,  December 31,
                                                    2008          2007
                                                       $             $

 (Loss) earnings for the year                    (10,936)          407
 Professional fees, severance and related
  costs incurred in relation to the internal
  investigation, net of taxes of $1,871
  (2007 - $nil)                                    6,262            --
 Non-cash goodwill impairment charge              10,154           996
 Non-cash income tax valuation allowance           3,498            --
 Arbitration decision in SunOpta BioProcess
  Group                                            1,855            --
                                            --------------------------
                                                  10,833         1,403

 Non-recurring start-up, operational and
  legal costs, net of taxes of $337
  (2007 - $nil)                                    2,483            --
                                            --------------------------
 Adjusted earnings for the year                   13,316         1,403
                                            --------------------------


 SunOpta Inc.
 Supplemental Information
 For the three months ended December 31, 2008 and 2007
 (Expressed in thousands of U.S. dollars)
 (Unaudited)

 ---------------------------------------------------------------------
                                            December 31,  December 31,
                                                    2008          2007
                                                       $             $

 Loss for the period                            (17,045)       (7,095)
 Professional fees, severance and related
  costs incurred in relation to the internal
  investigation, net of taxes of $115
  (2007 - $nil)                                     387            --
 Non-cash goodwill impairment charge             10,154           996
 Non-cash income tax valuation allowance          3,498            --
 Arbitration decision in SunOpta BioProcess
  Group                                           1,855            --
                                            --------------------------
                                                 (1,151)       (6,099)

 Non-recurring start-up, operational and
  legal costs, net of taxes of $27
  (2007 - $nil)                                      91            --
                                            --------------------------
 Adjusted loss for the year                      (1,060)       (6,099)
                                            --------------------------


 SunOpta Inc.
 Reconciliation of GAAP Results to Non-GAAP Presentation
 For the year ended December 31, 2008 and 2007
 (Expressed in thousands of U.S. dollars, except per share amounts)
 (Unaudited)

  --------------------------------------------------------------------
                              For the Year Ended December 31,
                    --------------------------------------------------
                                                  2008         2007
                     2008 GAAP   Adjustments    Adjusted     Adjusted

 Revenues            1,055,173            --   1,055,173      802,494

 Cost of goods sold    899,078       (2,053)     897,025      676,360
                    --------------------------------------------------

 Gross profit          156,095        2,053      158,148      126,134

 Warehousing and
  distribution
  expenses              21,040           --       21,040       20,899
 Selling, general
  and administrative
  expenses             117,808       (8,900)     108,908       95,911
 Intangible asset
  amortization           5,879           --        5,879        4,201
 Other expenses, net     1,003       (1,855)        (852)       1,187
 Goodwill impairment    10,154      (10,154)          --           --
 Foreign exchange
  gain                  (4,835)          --       (4,835)        (539)
                    --------------------------------------------------

 Earnings before the
  following              5,046       22,962       28,008        4,475

 Dilution gain              --           --           --          693

 Interest expense,
  net                  (14,281)          --      (14,281)      (8,823)
                    --------------------------------------------------

 (Loss) earnings
  before income
  taxes                 (9,235)      22,962       13,727       (3,655)

 Provision for
  (recovery of)
  income taxes             790       (1,290)        (500)      (6,101)
                    --------------------------------------------------

 (Loss) earnings
  before minority
  interest             (10,025)      24,252       14,227        2,446

 Minority interest         911           --          911        1,043
                    --------------------------------------------------

 (Loss) earnings
  for the year         (10,936)      24,252       13,316        1,403
                    --------------------------------------------------

 (Loss) earnings per
  share for the year

  Basic                  (0.17)        0.38         0.21         0.02
                    --------------------------------------------------

  Diluted                (0.17)        0.38         0.21         0.02
                    --------------------------------------------------


 SunOpta Inc.
 Reconciliation of GAAP Results to Non-GAAP Presentation
 For the year ended December 31, 2008 and 2007
 (Expressed in thousands of U.S. dollars, except per share amounts)
 (Unaudited)

 ---------------------------------------------------------------------
                        Year Ended                  Year Ended
                    December 31, 2008            December 31, 2007
               -------------------------------------------------------
                                              Impact on
                 Impact on     Impact on       (loss)      Impact on
                   (loss)    provision for    earnings   provision for
                 earnings    (recovery of)     before    (recovery of)
               before taxes  income taxes   income taxes  income taxes
               -------------------------------------------------------

 Non-recurring
  start-up,
  operational
  and legal
  costs               2,053          337             --            --
               -------------------------------------------------------

 Cost of sales        2,053          337             --            --
               -------------------------------------------------------

 Professional
  fees,
  severance and
  related costs
  incurred in
  relation to
  the internal
  investigation       8,133        1,871             --            --

 Legal and
  other fees
  incurred
  related to the
  arbitration
  decision in
  SunOpta
  BioProcess
  Group                 767           --             --            --
               -------------------------------------------------------
 Selling,
  general and
  administrative
  expense             8,900        1,871             --            --
               -------------------------------------------------------

 Arbitration
  decision in
  SunOpta
  BioProcess
  Group               1,855           --             --            --
               -------------------------------------------------------
 Other expenses,
  net                 1,855           --             --            --
               -------------------------------------------------------

 Goodwill
  impairment in
  SunOpta Fruit
  Group               8,198           --            996            --
 Goodwill
  impairment in
  SunOpta
  International
  Sourcing and
  Trading Group       1,956           --             --            --
               -------------------------------------------------------
 Goodwill
  impairment         10,154           --            996            --
               -------------------------------------------------------

 Non-cash
  income tax
  valuation
  allowance              --        (3,498)           --            --
               -------------------------------------------------------
 Provision for
  (recovery of)
  income taxes           --        (3,498)           --            --
               -------------------------------------------------------
 Total
  adjustments        22,962        (1,290)          996            --
               -------------------------------------------------------


 SunOpta Inc.
 Reconciliation of GAAP Results to Non-GAAP Presentation
 For the three months ended December 31, 2008 and 2007
 (Expressed in thousands of U.S. dollars, except per share amounts)
 (Unaudited)

 ---------------------------------------------------------------------
                          For the Three Months Ended December 31,
                    --------------------------------------------------
                                                  2008         2007
                     2008 GAAP   Adjustments    Adjusted     Adjusted

 Revenues              245,037           --      245,037      209,838

 Cost of goods sold    216,319          (11)     216,308      182,885
                    --------------------------------------------------

 Gross profit           28,718           11       28,729       26,953

 Warehousing and
  distribution
  expenses               4,858          --         4,858        5,794
 Selling, general
  and administrative
  expenses              25,852         (609)      25,243       30,424
 Intangible asset
  amortization           1,627           --        1,627        1,189
 Other expenses, net     1,003       (1,855)        (852)         408
 Goodwill impairment    10,154      (10,154)          --           --
 Foreign exchange
  loss                     501           --          501          277
                    --------------------------------------------------

 Loss before the
  following            (15,277)      12,629       (2,648)     (11,139)

 Interest expense,
  net                   (3,797)          --       (3,797)      (2,745)
                    --------------------------------------------------

 Loss before income
  taxes                (19,074)      12,629       (6,445)     (13,884)

 Recovery of income
  taxes                 (1,375)      (3,356)      (4,731)      (7,863)
                    --------------------------------------------------

 Loss before
  minority interest    (17,699)      15,985       (1,714)      (6,021)

 Minority interest        (654)          --         (654)          78
                    --------------------------------------------------

 Loss for the three
  months ended         (17,045)      15,985       (1,060)      (6,099)
                    --------------------------------------------------

 (Loss) per share
  for the three
  months ended

  Basic                  (0.27)        0.25        (0.02)       (0.10)
                    --------------------------------------------------

  Diluted                (0.27)        0.25        (0.02)       (0.10)
                    --------------------------------------------------


 SunOpta Inc.
 Reconciliation of GAAP Results to Non-GAAP Presentation
 For the three months ended December 31, 2008 and 2007
 (Expressed in thousands of U.S. dollars, except per share amounts)
 (Unaudited)

 ---------------------------------------------------------------------
                    Three Months Ended          Three Months Ended
                    December 31, 2008           December 31, 2007
               -------------------------------------------------------
                                              Impact on
                 Impact on     Impact on       (loss)      Impact on
                   (loss)    provision for    earnings   provision for
                 earnings    (recovery of)     before    (recovery of)
               before taxes  income taxes   income taxes  income taxes
               -------------------------------------------------------

 Non-recurring
  start-up,
  operational
  and legal
  costs                  11            27            --            --
               -------------------------------------------------------
 Cost of sales           11            27            --            --
               -------------------------------------------------------

 Professional
  fees,
  severance and
  related costs
  incurred in
  relation to
  the internal
  investigation         502           115            --            --

 Legal and
  other fees
  incurred
  related to the
  arbitration
  decision in
  SunOpta
  BioProcess
  Group                 107            --            --            --
               -------------------------------------------------------
 Selling,
  general and
  administrative
  expense               609           115            --            --
               -------------------------------------------------------

 Arbitration
  decision in
  SunOpta
  BioProcess
  Group               1,855            --            --            --
               -------------------------------------------------------
 Other expenses,
  net                 1,855            --            --            --
               -------------------------------------------------------

 Goodwill
  impairment in
  SunOpta Fruit
  Group               8,198            --           996            --
 Goodwill
  impairment in
  SunOpta
  International
  Sourcing and
  Trading Group       1,956            --            --            --
               -------------------------------------------------------
 Goodwill
  impairment         10,154            --           996            --
               -------------------------------------------------------

 Non-cash
  income tax
  valuation
  allowance              --        (3,498)           --            --
               -------------------------------------------------------
 Provision for
  (recovery of)
  income taxes           --        (3,498)           --            --
               -------------------------------------------------------

 Total
  adjustments        12,629        (3,356)          996            --
               -------------------------------------------------------

This news release was distributed by GlobeNewswire, www.globenewswire.com

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

(C) Copyright 2009 GlobeNewswire, Inc. All rights reserved.

News Provided by COMTEX

Multimedia Files:

View all news