SunOpta Announces Third Quarter 2010 Results

TORONTO, Nov. 10, 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 period ended October 2, 2010. All amounts are expressed in U.S. dollars and results are reported in accordance with U.S. GAAP, except where specifically noted. As a result of the June 11, 2010 sale of the Company's Food Distribution Assets and August 31, 2010 sale of SunOpta BioProcess Inc., all results from operations related to these businesses have been excluded from operating results and are now reported as discontinued operations for all comparable periods.

For the third quarter of 2010 the Company realized revenues of $217.9 million versus third quarter 2009 revenues of $212.5 million, a year over year increase of 2.5%. Revenues in SunOpta Foods were $197.5 million, an increase of 0.9% versus the third quarter of 2009. After adjusting for movements in foreign exchange rates and commodity related pricing, revenues increased approximately 7.6% on a consolidated basis versus the third quarter of 2009, and approximately 6.4% in SunOpta Foods, reflecting continued momentum in the natural, organic and specialty foods sectors.

For the third quarter of 2010 the Company reported net income on a GAAP basis of $34.1 million or $0.52 per diluted common share versus net losses in the third quarter of 2009 of $4.7 million or $0.07 per diluted common share. Included in the results of the third quarter was a net gain on the sale of SunOpta Bioprocess Inc. of $34.6 million after tax or $0.52 per diluted common share, offset by non-cash goodwill and impairment charges of $6.4 million after tax or $0.10 per diluted common share.

Earnings from operations ¹ for the third quarter of 2010 were $5.3 million or $0.08 per diluted common share. Earnings from operations ¹ for the third quarter include additional pre-tax costs of approximately $0.6 million related primarily to ongoing facility and operational rationalizations.

Operating income ¹ for the third quarter increased 96.2% to $10.0 million or 4.6% of revenues versus operating income ¹ in the prior year of $5.1 million or 2.4% of revenues. Operating income ¹ in SunOpta Foods increased to $9.7 million or 4.9% of revenues versus $5.3 million or 2.7% in the prior year.

EBITDA ¹ for the third quarter of 2010, excluding the net effect of discontinued operations and non-cash charges increased 52% to $14.1 million versus $9.3 million in 2009, indicative of the improved operating performance realized within the business.

For the year to date period ended October 2, 2010 the Company has realized revenues of $668.5 million versus year to date third quarter 2009 revenues of $619.8 million, a year over year increase of 7.9%. Revenues in SunOpta Foods for the year-to-date period were $609.0 million, an increase of 6.1% versus the year-to-date period in 2009. After adjusting for movements in foreign exchange rates and commodity related pricing, revenues increased approximately 11.2% on a consolidated basis, and approximately 9.7% in SunOpta Foods. Year to date all operating segments have realized increased revenues and operating income ¹ versus the prior year.   

Year to date the Company has realized net income on a GAAP basis of $59.1 million or $0.90 per diluted common share versus a net loss in 2009 of $4.5 million or $0.07 per diluted common share.   Included in the year to date results was a net gain after tax on the sale of the Canadian Food Distribution assets of $13.8 million or $0.21 per diluted common share and a net gain after tax on the sale of SunOpta Bioprocess Inc. of $34.6 million or $0.52 per diluted common share, offset by certain non-cash goodwill and impairment charges of $6.4 million after tax or $0.10 per diluted common share.