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SunOpta Announces Fourth Quarter and Fiscal 2009 Results

March 09,2010

TORONTO, March 9, 2010 (GLOBE NEWSWIRE) -- 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 fourth quarter and year ended December 31, 2009. All amounts are expressed in U.S. dollars and results are reported in accordance with U.S. GAAP, except where specifically noted.

For the fourth quarter of 2009, the Company realized revenues of $245.5 million versus revenues of $245.0 million for the fourth quarter of 2008.

Adjusted earnings(1) for the fourth quarter of 2009 were $3.9 million or $0.06 per diluted common share versus an adjusted loss(1) in the comparable period in 2008 of ($1.1) million or ($0.02) per diluted common share. On a GAAP basis the Company realized a loss of ($2.2) million or ($0.03) per diluted common share for the quarter versus a loss of ($17.0) million or ($0.27) per diluted common share for the fourth quarter of 2008.

Fourth quarter results include a non-cash write-down of tax assets of $0.9 million and additional pre-tax costs of $7.6 million related to a number of restructuring and related costs. Additional pre-tax costs include $3.6 million related to ongoing product and facility rationalization efforts including non-cash charges of $1.2 million; legal and professional costs of $3.0 million related to the 2007 restatement and class action settlement, legal costs related to completion of a number of ongoing legal matters and costs related to banking amendments; a non-cash goodwill impairment charge of $0.5 million in the Fruit Group and pre-tax costs of $0.5 million related to the ongoing revitalization and re-launch of a number of company owned natural health products brands. Adjusted earnings(1) excluding the impact of foreign exchange gains for the fourth quarter of 2009 were $3.6 million or $0.05 per diluted common share versus an adjusted loss(1) excluding the impact of foreign exchange gains of ($0.7) million or ($0.01) per diluted common share in the fourth quarter of 2008.

Results for the fourth quarter of 2009 reflect significant improvement in operating performance versus the fourth quarter of 2008 and continued operating performance improvement versus the third quarter of 2009. Gross margins increased to 15.9% for the quarter versus 11.7% in the fourth quarter of 2008. On a segment basis the SunOpta Ingredients Group had record earnings in the quarter achieving operating margins of 17.8%. For the fourth quarter of 2009 operating earnings within SunOpta Food Group increased 124% to $4.4 million versus $2.0 million in the same period in 2008. Opta Minerals Inc. realized operating earnings of $0.7 million in the fourth quarter of 2009 versus a loss of ($2.4) million loss in the fourth quarter of 2008.

For fiscal 2009 the Company realized revenues of $989.1 million versus fiscal 2008 revenues of $1,055.2 million.

For 2009 the Company reported a loss on a GAAP basis of ($6.8) million or ($0.10) per diluted common share versus a loss of ($10.9) million or ($0.17) per diluted common share in fiscal 2008. Adjusted earnings(1) for fiscal 2009 were $12.9 million or $0.20 per diluted common share versus adjusted earnings(1) in fiscal 2008 of $13.3 million or $0.21 per diluted common share. Fiscal 2009 results include the impact of a non-cash write-down of tax assets of $0.9 million and additional pre-tax costs of $24.8 million including net non-cash charges after minority interest of $4.8 million related to the impairment of goodwill in Opta Minerals Inc. and $0.5 million related to impairment of goodwill in the SunOpta Fruit Group; pre-tax costs of $10.1 million related to ongoing product and facility rationalization efforts including non-cash charges of $2.3 million, pre-tax costs of $3.2 million related to the ongoing revitalization and re-launch of a number of company owned natural health products brands and additional legal and professional fees of $6.2 million related to the 2007 restatement and class action settlement, a legal action in the SunOpta BioProcess Group, settlements of other legal matters and costs related to banking amendments. Adjusted earnings(1) excluding the impact of foreign exchange gains for fiscal 2009 were $12.2 million or $0.19 per diluted common share versus adjusted earnings(1) excluding the impact of foreign exchange of $10.2 million or $0.16 per diluted common share in fiscal 2008.

At December 31, 2009 the Company's balance sheet reflects a current working capital ratio of 1.37 to 1.00, long-term debt to equity ratio of 0.37 to 1.00 and total debt to equity ratio of 0.65 to 1.00. The decrease in the working capital ratio compared to 2008 is due to presenting the $45 million term loan due December 20, 2010 as a current liability at December 31, 2009. During fiscal 2009 the Company generated cash from operating activities of $44.9 million including cash generated from working capital of $27.3 million, reflecting ongoing efforts to reduce working capital, especially inventories, across the Company. The Company also continued to focus on reducing debt and realized a decrease in net debt of $34.4 million in fiscal 2009. At December 31, 2009 the Company has total assets of $551.3 million and a net book value of $3.58 per outstanding share.

At year-end, the Company is in compliance with all financial covenants.   

Steve Bromley, President and Chief Executive Officer of SunOpta commented, "We are very pleased with the continued improvement in operating results within our core business segments. Our balance sheet continues to improve with reduced working capital levels and net reductions in debt. We remain focused on improving operating margins and return on assets employed and are very pleased that our extensive restructuring and repositioning initiatives are having a positive effect on our results. We are confident that this focus, when combined with growing consumer interest in health and wellness, positions our Company for long-term success. We are looking forward to a return to profitability in 2010."

The Company plans to host a conference call at 10:00 AM Eastern Time on Wednesday, March 10th, 2010 to discuss these results and recent corporate developments. The conference call can be accessed via a link at the Company's website at www.sunopta.com. Additionally, the call may be accessed with the toll free dial-in number 1-866-551-3680 or 212-401-6760 followed by pass code: 8061610#.  A replay number can also be accessed between March 11th and 21st with the toll free dial-in number 1–866-551-4520 or 212-401-6750 followed by pass code: 260041#.

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 Foods, which specializes in sourcing, processing and distribution of natural and organic food products integrated from seed through packaged products; Opta Minerals Inc. (TSX:OPM) (66.4 % 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. SunOpta believes that 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 may be considered "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities legislation, which 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 regarding ongoing revitalization and re-launch of a number natural health products brands, continued operating performance improvement, ongoing product and facility rationalization efforts, improving operating margins and return on assets employed and return to profitability. The terms and phrases ongoing, "continued", "future performance", "will", "remain focused", "believes", "confident", "positions" 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 are based 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, applicable tax legislation, consumer trends, preferences and spending patterns, product pricing levels, current customer demand, competitive intensity, cost rationalization and product development initiatives. 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, global economic conditions, consumer spending patterns and changes in market trends, decreases in customer demand, potential failure of product development, working capital management and continuous improvement 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 of Form 10-K and its Quarterly Reports on Form 10-Q (available at www.sec.gov). 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.

(1) Adjusted earnings (loss) is not a GAAP measure. SunOpta believes adjusted earnings (adjusted for the impact of non recurring start-up and operational costs, severance and closure costs, marketing costs in support of brand relaunches and certain professional fees) provides useful information to understand the underlying performance of the business and as a result these items have been adjusted. A reconciliation of this non-GAAP measure to GAAP is included on the last page of this release. 

SunOpta Inc.
Consolidated Statements of Operations
For the three month periods ended December 31, 2009 and 2008
(Expressed in thousands of U.S. dollars, except per share amounts)
(Unaudited)
    
     
 December 31,
2009
$
December 31,
2008
 %
change
 
     
     
Revenues 245,521 245,037  0.2%
     
Cost of goods sold 206,581 216,319  (4.5%)
     
Gross profit 38,940 28,718  35.6%
     
Warehousing and distribution expenses5,165 4,858  6.3%
Selling, general and administrative expenses29,910 25,852  15.7%
Intangible asset amortization1,347 1,627  (17.2%)
Other expense, net2,935 1,003  192.6%
Goodwill impairment500 10,154  (95.1%)
Foreign exchange (gain) loss(460) 501  (191.8%)
     
Loss before the following(457) (15,277)  (97.0%)
     
Interest expense, net3,762 3,797  (0.9%)
     
Loss before income taxes (4,219) (19,074)  (77.9%)
     
Recovery of provision for income taxes(1,726) (1,375)  (25.5%)
     
Loss for the period(2.493) (17,699)  (85.9%)
     
Loss for the period attributable to non-controlling interests(279) (654)  (57.3%)
     
Loss for the period attributable to SunOpta Inc.(2,214) (17,045)  (87.07%)
     
Loss per share for the period    
     
 Basic(0.03) (0.27)  
     
 Diluted(0.03) (0.27)  
     
SunOpta Inc.
Consolidated Statements of Operations
For the years ended December 31, 2009 and 2008
(Expressed in thousands of U.S. dollars, except per share amounts)
(Unaudited)
    
     
 December 31,
2009
$
December 31,
2008
 %
change
 
     
     
Revenues 989,132 1,055,173  (6.3%)
     
Cost of goods sold 840,262 899,078  (6.5%)
     
Gross profit 148,870 156,095  (4.6%)
     
Warehousing and distribution expenses18,856 21,040  (10.4%)
Selling, general and administrative expenses111,475 117,808  (5.4%)
Intangible asset amortization5,677 5,879  (3.4%)
Other expense, net2,587 1,003  157.9%
Goodwill impairment8,841 10,154  (12.9%)
Foreign exchange gain(1,042) (4,835)  (78.4%)
     
Earnings before the following2,476 5,046  (50.9%)
     
Interest expense, net14,028 14,281  (1.8%)
     
Loss before income taxes (11,552) (9,235)  25.1%
     
(Recovery of) provision for income taxes (1,762) 790  (323.1%)
     
Loss for the period(9,790) (10,025)  (2.3%)
     
(Loss) earnings for the period attributable to non-controlling interests(3,027) 911  
(432.3%)
     
Loss for the period attributable to SunOpta Inc.(6,763) (10,936)  (38.2%)
     
Loss per share for the period    
     
 Basic(0.10) (0.17)  
     
 Diluted(0.10) (0.17)  
   
SunOpta Inc.
Consolidated Balance Sheet
As at December 31, 2009 and 2008
(Expressed in thousands of U.S. dollars)
(Unaudited)
  
 
 
 
December 31,
2009
December 31,
2008
   
Assets  
   
Current assets  
Cash and cash equivalents20,723 24,755
Accounts receivable94,241 95,129
Inventories178,140 200,689
Prepaid expenses and other current assets10,813 14,448
Current income taxes recoverable442 595
Deferred income taxes5,457 493
 309,816 336,109
   
Property, plant and equipment113,245 110,641
Goodwill49,717 54,022
Intangible assets 60,902 63,161
Deferred income taxes14,734 16,160
Other assets2,876 954
 551,290 581,047
Liabilities   
   
Current liabilities   
Bank indebtedness63,481 67,164
Accounts payable and accrued liabilities106,253 106,989
Customer and other deposits1,436 1,228
Other current liabilities1,566 4,437
Current portion of long-term debt52,455 12,174
Current portion of long-term liabilities712 1,362
 225,903 193,354
   
Long-term debt 34,734 99,353
Long-term liabilities 3,247 5,017
Deferred income taxes12,708 13,614
 276,592 311,338
   
Preferred shares of a subsidiary company28,187 27,796
   
Equity   
SunOpta Inc. Shareholders' Equity  
Capital stock 178,694 177,858
 64,982,968 common shares (2008 – 64,493,320)  
Additional paid in capital 7,934 6,778
Retained earnings34,146 40,909
Accumulated other comprehensive income 12,079 1,266
Total SunOpta Inc. Shareholders' Equity232,853 226,811
Non-controlling interest13,658 15,102
Total Equity246,511 241,913
 551,290 581,047
   
SunOpta Inc.
Condensed Consolidated Statements of Cash Flow
For the three month periods ended December 31, 2009 and 2008
(Expressed in thousands of U.S. dollars)
(Unaudited)
  
 
 
 
 
December 31,
2009
$
 
December 31,
2008
$
Cash provided by (used in)  
   
Operating activities  
Loss for the period(2,493) (17,699)
Items not affecting cash  
Amortization4,970 5,013
Goodwill impairment500 10,154
Stock-based compensation374 342
Non-cash interest accretion334 381
Unrealized gain on foreign exchange(619) (436)
Deferred income taxes(1,765) (1,091)
Other856 2,053
Changes in non-cash working capital, net of businesses acquired16,510 22,232
 18,667 20,949
   
Investing activities  
Purchases of property, plant and equipment, net(1,155) (727)
Payment of deferred purchase consideration(356) (83)
Purchase of patents, trademarks and other intangible assets(7) (176)
Decrease in short-term investments-- 20,000
Other450 (128)
 (1,068) 18,886
   
Financing activities  
Increase (decrease) in line of credit facilities4,106 (21,849)
Repayment of long-term debt(19,768) (2,375)
Borrowings under long-term debt3 581
Proceeds from the issuance of common shares209 199
Deferred financing fees(2,198) --
Other(74) (103)
 (17,722) (23,547)
   
Foreign exchange gain (loss) on cash held in a foreign currency125 (649)
   
Increase (decrease) in cash and cash equivalents during the period2 15,639
 
Cash and cash equivalents – beginning of the period
20,721 9,116
   
Cash and cash equivalents – end of the period20,723 24,755
   
SunOpta Inc.
Condensed Consolidated Statements of Cash Flow
For the years ended December 31, 2009 and 2008
(Expressed in thousands of U.S. dollars)
(Unaudited)
  
 
 
 
 
December 31,
2009
$
 
December 31,
2008
$
Cash provided by (used in)  
   
Operating activities  
Loss for the period(9,790) (10,025)
Items not affecting cash  
Amortization19,370 19,364
Goodwill impairment8,841 10,154
Stock-based compensation1,435 1,106
Non-cash interest accretion1,266 1,009
Unrealized gain on foreign exchange(1,022) (1,702)
Deferred income taxes(3,030) (1,116)
Other522 1,526
Changes in non-cash working capital, net of businesses acquired27,296 13,369
 44,888 33,685
   
Investing activities  
Purchases of property, plant and equipment, net(12,161) (7,645)
Payment of deferred purchase consideration(1,856) (2,042)
Purchase of patents, trademarks and other intangible assets(374) (673)
Acquisition of businesses, net of cash acquired-- (5,267)
Other259 (105)
 (14,132) (15,732)
Financing activities  
Decrease in line of credit facilities(5,644) (24,584)
Repayment of long-term debt(29,438) (15,322)
Borrowings under long-term debt719 15,655
Proceeds from the issuance of common shares836 1,016
Deferred financing fees(2,198) --
Other(14) 337
 (35,739) (22,898)
   
Foreign exchange gain (loss) on cash held in a foreign currency951 (602)
   
Decrease in cash and cash equivalents during the period(4,032) (5,547)
 
Cash and cash equivalents – beginning of the period
24,755 30,302
   
Cash and cash equivalents – end of the period20,723 24,755
     
SunOpta Inc.
Segmented Information
For the three month periods ended December 31, 2009 and 2008
(Expressed in thousands of U.S. dollars)
(Unaudited)
    
 Three months ended
December 31, 2009
  SunOpta
Foods
$
 
Opta Minerals
 $
SunOpta
BioProcess
 $
 
Corporate
$
 
Consolidated
$
      
Total revenues from external customers 
228,421
 
16,713
 
387
 
--
 
245,521
       
Segment Operating Income4,385732(819)(1,320)2,978
SunOpta Foods has the following segmented reporting:     
 Three months ended
December 31, 2009
  Grains
and Foods
$
 
 Ingredients
$
Fruit 
Group
$
 
IST
$
 
Distribution
$
SunOpta
Foods
$
       
Total revenues from external customers74,69217,51934,11237,89464,204228,421
        
Segment Operating Income3,6393,120(1,794)(364)(216)4,385
 Three months ended
December 31, 2008
  SunOpta
Foods
$
 
Opta Minerals
 $
SunOpta
BioProcess
 $
 
Corporate
$
 
Consolidated
$
      
Total revenues from external customers 
227,315
 
17,364
 
358
 
--
 
245,037
      
Segment Operating Income 1,956 (2,360) (105) (3,611) (4,120)
SunOpta Foods has the following segmented reporting:     
 Three months ended
December 31, 2008
  Grains
and Foods
$
Ingredients
$
 
Fruit
Group
$
 
IST
$
 
Distribution
$
SunOpta
Foods
$
       
Total revenues from external customers 
80,072
 
14,943
 
32,967
 
41,403
 
57,930
 
227,315
       
Segment Operating Income 4,276 1,088 (3,198) (1,705) 1,495 1,956
       
(Segment Operating Income is defined as "loss before the following" excluding the impact of "other expense,
net and goodwill impairment")
      
SunOpta Inc.
Segmented Information
For the years ended December 31, 2009 and 2008
(Expressed in thousands of U.S. dollars)
(Unaudited)
 
 Year ended
December 31, 2009
  SunOpta
Foods
$
 
OptaMinerals
 $
SunOpta
BioProcess
 $
 
Corporate
$
 
Consolidated
$
      
Total revenues from external customers 
926,090
 
62,523
 
519
 
--
 
989,132
       
Segment Operating Income20,8221,161(3,287)(4,852)13,904
SunOpta Foods has the following segmented reporting:
 Year ended
December 31, 2009
  Grains
and Foods
$
 
 Ingredients
$
Fruit
Group
$
 
IST
$
 
Distribution
$
SunOpta
Foods
$
       
Total revenues from external customers325,03864,657147,443151,698237,254926,090
        
Segment Operating Income18,0448,691(4,073)(1,153)(627)20,882
 Year ended
December 31, 2008
  SunOpta
Foods
$
 
Opta Minerals
 $
SunOpta
BioProcess
 $
 
Corporate
$
 
Consolidated
$
      
Total revenues from external customers 
960,316
 
93,422
 
1,435
 
--
 
1,055,173
      
Segment Operating Income 22,833 5,531 (3,286) (8,875) 16,203
SunOpta Foods has the following segmented reporting:
 Year ended
December 31,
2008
  Grains
and Foods
$
 
 Ingredients
$
 
Fruit
Group
$
 
IST
$
 
 Distribution
$
SunOpta
Foods
$
       
Total revenues from external customers 
327,307
 
65,270
 
150,879
 
157,814
 
259,046
 
960,316
       
Segment Operating Income 18,541 3,392 (10,219) 1,333 9,786 22,833
(Segment Operating Income is defined as "Earnings before the following" excluding the impact of "other expense, net and goodwill impairment")
 
SunOpta Inc.
Non-GAAP Reconciliation
For the three month periods ended December 31, 2009 and 2008
(Expressed in thousands of U.S. dollars)
(Unaudited)
 
 For the Three Months Ended December 31,
 2009
GAAP
 
Adjustments
2009
Adjusted
2008
Adjusted
     
Revenues245,521--245,521 245,037
Cost of goods sold206,581(1,874)204,707 216,308
     
Gross profit38,9401,87440,814 28,729
     
Warehousing and distribution expenses5,165--5,165 4,858
Selling, general and administrative expenses29,910(2,069)27,841 25,243
Intangible asset amortization1,347--1,347 1,627
Other expense, net2,935(2,460)475 (852)
Goodwill impairment500(500)-- --
Foreign exchange(gain) loss(460)--(460) 501
     
(Loss) earnings before the following(457)6,9036,446 (2,648)
     
Interest expense, net3,762(675)3,087 3,797
     
(Loss) earnings before income taxes(4,219)7,5783,359 (6,445)
     
(Recovery of) provision for(1,726)1,509(217) (4,731)
     
(Loss) earnings for the period(2,493)6,0693,576 (1,714)
     
(Loss) earnings for the period attributable to non-controlling interests(279)--(279) 
(654)
     
(Loss) earnings for the period attributable to SunOpta Inc.(2,214)6,0693,855 (1,060)
     
(Loss) earnings per share for the period    
Basic(0.03)0.090.06 (0.02)
Diluted(0.03)0.090.06 (0.02)
 
 
SunOpta Inc.
Non-GAAP Reconciliation
For the three month periods ended December 31, 2009 and 2008 (continued)
(Expressed in thousands of U.S. dollars)
(Unaudited)
 
 Three months Ended
December 31, 2009
Three Months Ended
December 31, 2008
  Impact on (loss) earnings before
 income taxes
Impact on (loss) earnings before
income taxes
   
Costs to rationalize product offerings in the Fruit Group1,217 --
Non-recurring start-up and operational costs542 11
Non-cash inventory write-off115 --
Costs in support of brand re-launches-- --
 Cost of sales1,874 11
   
   
Marketing costs in support of brand re-launches493 --
Professional fees incurred in relation to the 2007 restatement531 502
Legal costs incurred related to SunOpta BioProcess litigation392 107
Severance costs and related plant closure expenses653 --
Selling, general and administrative expense2,069 609
   
   
Arbitration settlement in SunOpta BioProcess Group-- 1,855
Legal settlements1,425 --
Impairment of long-lived assets1,119 --
Sale of business in the Ingredients Group(84) --
Other expense, net2,460 1,855
   
Goodwill impairment in Fruit Group500 8,198
Goodwill impairment in International Sourcing and Trading Group-- 1,956
Goodwill impairment500 10,154
   
Non-cash amortization of amended financing fees675 --
Interest expense, net675 --
   
Total adjustments to (loss) earnings before income taxes7,578 12,629
   
   
  Impact on (loss)
earnings for the period
attributable to
SunOpta Inc.
Impact on (loss)
earnings for the period
attributable to
SunOpta Inc.
   
Valuation allowance against deferred taxes(947) (3,498)
Tax impact of adjustments noted above2,456 142
 1,509 (3,356)
   
Total adjustments to (loss) earnings for the period attributable to SunOpta Inc.6,069 15,985
SunOpta Inc.
Non-GAAP Reconciliation
For the years ended December 31, 2009 and 2008
(Expressed in thousands of U.S. dollars)
(Unaudited)
 
 
 For the Years Ended December 31,
 2009
GAAP
 
Adjustments
2009
Adjusted
2008
Adjusted
     
Revenues989,132--989,132 1,055,173
Cost of goods sold840,262(6,613)833,649 897,025
     
Gross profit148,8706,613155,483 158,148
     
Warehousing and distribution expenses18,856--18,856 21,040
Selling, general and administrative expenses111,475(7,671)103,804 108,908
Intangible asset amortization5,677--5,677 5,879
Other expense, net2,587(2,344)243 (852)
Goodwill impairment8,841(8,841)-- --
Foreign exchange gain(1,042)--(1,042) (4,835)
     
Earnings before the following2,47625,46927,945 28,008
     
Interest expense, net14,028(1,800)12,228 14,281
     
(Loss) earnings before income taxes(11,552)27,26915,717 13,727
     
(Recovery of) provision for income taxes(1,762)5,1563,394 (500)
     
(Loss) earnings for the period(9,790)22,11312,323 14,227
     
(Loss) earnings for the period attributable to non-controlling interests(3,027)2,447(580) 
911
     
(Loss) earnings for the period attributable to SunOpta Inc.(6,763)19,66612,903 13,316
     
(Loss) earnings per share for the period    
Basic(0.10)0.300.20 0.21
Diluted(0.10)0.300.20 0.21
   
SunOpta Inc.
Non-GAAP Reconciliation
For the years ended December 31, 2009 and 2008 (continued)
(Expressed in thousands of U.S. dollars)
(Unaudited)
 
  
 Year Ended
December 31, 2009
Year Ended
December 31, 2008
  Impact on (loss)
earnings before
 income taxes
Impact on (loss)
earnings before
income taxes
   
Costs to rationalize product offerings in the Fruit Group3,238 --
Non-recurring start-up and operational costs3,190 2,053
Costs in support of brand re-launches647 --
Non-cash inventory write-off115 --
Business interruption proceeds received(577) --
Cost of sales6,613 2,053
   
   
Marketing costs in support of brand re-launches2,551 --
Severance costs and related plant closure expenses2,140 --
Professional fees incurred in relation to the 2007 restatement1,619 8,133
Legal costs incurred related to SunOpta BioProcess litigation1,361 767
Selling, general and administrative expense7,671 8,900
   
   
Impairment of long-lived assets2,188 --
Legal settlements1,425 --
Arbitration decision in SunOpta BioProcess Group-- 1,855
Elimination of long-term liability at Opta Minerals(1,110) --
Sale of business in the Ingredients Group(159) --
Other expense, net2,344 1,855
   
Goodwill impairment in Opta Minerals8,341 --
Goodwill impairment in Fruit Group500 8,198
Goodwill impairment in International Sourcing and Trading Group-- 1,956
Goodwill impairment8,841 10,154
   
Non-cash amortization of amended financing fees1,800 --
Interest expense, net1,800 --
   
Total adjustments to (loss) earnings before income taxes27,269 22,962
   
  Impact on (loss)
earnings for the period
attributable to
SunOpta Inc.
Impact on (loss)
earnings for the period
attributable to
SunOpta Inc.
   
Valuation allowance against deferred taxes(947) (3,498)
Tax impact of adjustments noted above6,103 2,208
Provision for income taxes5,156 (1,290)
   
Goodwill impairment and elimination of long-term liability at Opta Minerals(2,447) --
(Loss) earnings for the period attributable to non-controlling interests(2,447) --
   
Total adjustments to (loss) earnings for the period attributable to SunOpta Inc.19,666 24,252
CONTACT:  SunOpta Inc.
          Jeremy N. Kendall, Chairman
          Steve Bromley, President & CEO
          Eric Davis, Vice President & CFO
          Tony Tavares, Vice President & COO
          Susan Wiekenkamp, Information Officer
            905-455-2528, ext 103
            susan.wiekenkamp@sunopta.com
          www.sunopta.com

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