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SunOpta Announces Record 2012 Results

Stocks in this article: STKL

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, our focus on our core natural and organic foods business and our belief that healthy eating and healthy living are key long-term global trends and we are well positioned to be a key player in these markets. The terms and phrases "continued", "improve", "will provide", "remain confident", 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, consumer interest in health and wellness, product pricing levels, current customer demand, planned facility and operational expansions, 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, potential covenant breaches under our credit facilities and other risks described from time to time under "Risk Factors" in the Company's Annual Report on 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.

SunOpta Inc.
Consolidated Statements of Operations
For the quarter ended December 29, 2012 and December 31, 2011
Unaudited
(Expressed in thousands of U.S. dollars, except per share amounts)
       
  Quarter ended Quarter ended  
  December 29, 2012 December 31, 2011 Change
  $ $ %
       
Revenues 270,089 242,322 11.5%
       
Cost of goods sold 241,107 215,711 11.8%
       
Gross profit 28,982 26,611 8.9%
       
Selling, general and administrative expenses 20,967 20,679 1.4%
Intangible asset amortization 1,280 983 30.2%
Other expense, net 188 55 241.8%
Foreign exchange (gain) loss (417) 62 -772.6%
       
Earnings from continuing operations before the following 6,964 4,832 44.1%
       
Interest expense, net 1,853 2,302 -19.5%
       
Earnings from continuing operations before income taxes 5,111 2,530 102.0%
       
Provision for income taxes 632 1,021 -38.1%
       
Earnings from continuing operations 4,479 1,509 196.8%
       
Discontinued operations      
Loss from discontinued operations, net of taxes (69) (8,948) n/a
Gain on sale of discontinued operations, net of taxes 132 -- n/a
       
Gain (loss) from discontinued operations, net of taxes 63 (8,948) 100.7%
       
Earnings (loss) 4,542 (7,439) 161.1%
       
Earnings attributable to non-controlling interests 159 113 40.7%
       
Earnings (loss) attributable to SunOpta Inc. 4,383 (7,552) 158.0%
       
Earnings (loss) per share - basic      
-from continuing operations 0.07 0.02  
-from discontinued operations -- (0.14)  
  0.07 (0.11)  
       
Earnings (loss) per share - diluted      
-from continuing operations 0.06 0.02  
-from discontinued operations -- (0.13)  
  0.07 (0.11)  
       
SunOpta Inc.
Consolidated Statements of Operations
For the year ended December 29, 2012 and December 31, 2011
Unaudited
(Expressed in thousands of U.S. dollars, except per share amounts)
       
  Year ended Year ended  
  December 29, 2012 December 31, 2011 Change
  $ $ %
       
Revenues 1,091,064 1,019,871 7.0%
       
Cost of goods sold 957,327 898,627 6.5%
       
Gross profit 133,737 121,244 10.3%
       
Selling, general and administrative expenses 82,878 82,176 0.9%
Intangible asset amortization 4,933 4,061 21.5%
Other expense (income), net 2,194 (2,832) 177.5%
Foreign exchange (gain) loss (1,046) 1,238 -184.5%
       
Earnings from continuing operations before the following 44,778 36,601 22.3%
       
Interest expense, net 9,333 8,839 5.6%
       
Earnings from continuing operations before income taxes 35,445 27,762 27.7%
       
Provision for income taxes 10,934 9,896 10.5%
       
Earnings from continuing operations 24,511 17,866 37.2%
       
Discontinued operations      
Earnings (loss) from discontinued operations, net of taxes 448 (11,005) n/a
Gain on sale of discontinued operations, net of taxes 808 71 n/a
       
Earnings (loss) from discontinued operations, net of taxes 1,256 (10,934) 111.5%
       
Earnings 25,767 6,932 271.7%
       
Earnings attributable to non-controlling interests 1,543 1,636 -5.7%
       
Earnings attributable to SunOpta Inc. 24,224 5,296 357.4%
       
Earnings (loss) per share – basic      
-from continuing operations 0.35 0.25  
-from discontinued operations 0.02 (0.17)  
  0.37 0.08  
       
Earnings (loss) per share – diluted      
-from continuing operations 0.34 0.24  
-from discontinued operations 0.02 (0.16)  
  0.36 0.08  
       
SunOpta Inc.
Consolidated Balance Sheets
As at December 29, 2012 and December 31, 2011
Unaudited
(Expressed in thousands of U.S. dollars)
     
  December 29, 2012 December 31, 2011
  $ $
     
Assets    
     
Current assets    
Cash and cash equivalents 6,840 2,378
Restricted cash 6,595 --
Accounts receivable 113,314 88,898
Inventories 255,738 228,455
Prepaid expenses and other current assets 20,538 21,378
Current income taxes recoverable 1,814 1,503
Deferred income taxes 2,653 4,773
Current assets held for sale -- 17,923
  407,492 365,308
     
Investments 33,845 33,845
Property, plant and equipment 140,579 120,584
Goodwill 57,414 49,387
Intangible assets 52,885 48,035
Deferred income taxes 12,879 11,751
Other assets 2,216 1,854
Non-current assets held for sale -- 739
     
  707,310 631,503
     
Liabilities    
     
Current liabilities    
Bank indebtedness 131,061 109,718
Accounts payable and accrued liabilities 128,544 114,308
Customer and other deposits 4,734 843
Income taxes payable 4,125 1,229
Other current liabilities 2,660 1,419
Current portion of long-term debt 6,925 35,198
Current portion of long-term liabilities 1,471 995
Current liabilities held for sale -- 5,920
  279,520 269,630
     
Long-term debt 51,273 17,066
Long-term liabilities 5,544 5,586
Deferred income taxes 27,438 24,273
  363,775 316,555
     
     
Equity    
SunOpta Inc. shareholders' equity    
Capital Stock 183,027 182,108
66,007,236 common shares (December 31, 2011 - 65,796,398)    
Additional paid in capital 16,855 14,134
Retained earnings 124,732 100,508
Accumulated other comprehensive income 1,537 2,382
  326,151 299,132
Non-controlling interest 17,384 15,816
Total equity 343,535 314,948
     
  707,310 631,503
     
SunOpta Inc.
Consolidated Statements of Cash Flows
For the quarter ended December 29, 2012 and December 31, 2011
Unaudited
(Expressed in thousands of U.S. dollars)
     
  Quarter ended Quarter ended
  December 29, 2012 December 31, 2011
  $ $
     
Cash provided by (used in)    
     
Operating activities    
Earnings (loss) 4,542 (7,439)
Earnings (loss) from discontinued operations 63 (8,948)
Earnings from continuing operations 4,479 1,509
     
Items not affecting cash    
Depreciation and amortization 5,280 4,455
Unrealized gain on foreign exchange -- (246)
Deferred income taxes (1,096) (1,842)
Stock-based compensation 712 554
Impairment of long-lived assets -- 358
Unrealized loss on derivative instruments 483 4,111
Loss on sale of property, plant and equipment 51 39
Other (2) 383
Changes in non-cash working capital (16,917) (12,266)
Net cash flows from operating activities - continuing operations (7,010) (2,945)
Net cash flows from operating activities - discontinued operations (55) 36
  (7,065) (2,909)
Investing activities    
Acquisitions of businesses, net of cash acquired (870) (2,961)
Purchases of property, plant and equipment (6,628) (1,964)
Increase in restricted cash (6,595) --
Proceeds on sale of property, plant and equipment 50 1,755
Purchases of intangible assets (47) 9
Payment of contingent consideration (89) (233)
Other (352) (919)
Net cash flows from investing activities - continuing operations (14,531) (4,313)
Net cash flows from investing activities - discontinued operations -- (35)
  (14,531) (4,348)
Financing activities    
Increase under line of credit facilities 19,379 3,317
Borrowings under long-term debt 6,573 2,913
Repayment of long-term debt (1,713) (4,545)
Financing costs (74) --
Proceeds from the issuance of common shares 107 166
Other (105) 114
Net cash flows from financing activities - continuing operations 24,167 1,965
Foreign exchange gain on cash held in a foreign currency 82 144
Increase (decrease) in cash and cash equivalents during the period 2,653 (5,148)
Discontinued operations cash activity included above:    
Cash and cash equivalents - beginning of the period 4,187 7,526
Cash and cash equivalents - end of the period 6,840 2,378
     
SunOpta Inc.
Consolidated Statements of Cash Flows
For the year ended December 29, 2012 and December 31, 2011
Unaudited
(Expressed in thousands of U.S. dollars)
     
  Year ended Year ended
  December 29, 2012 December 31, 2011
  $ $
     
Cash provided by (used in)    
     
Operating activities    
Earnings 25,767 6,932
Earnings (loss) from discontinued operations 1,256 (10,934)
Earnings from continuing operations 24,511 17,866
     
Items not affecting cash    
Depreciation and amortization 20,226 17,809
Unrealized gain on foreign exchange (169) (268)
Deferred income taxes 1,981 3,993
Stock-based compensation 2,753 2,090
Impairment of long-lived assets -- 358
Unrealized (gain) loss on derivative instruments (695) 839
Loss (gain) on sale of property, plant and equipment 51 (3,201)
Other 1,215 693
Changes in non-cash working capital (18,838) (44,169)
Net cash flows from operating activities - continuing operations 31,035 (3,990)
Net cash flows from operating activities - discontinued operations (58) (1,602)
  30,977 (5,592)
Investing activities    
Acquisition of businesses, net of cash acquired (30,044) (5,461)
Purchases of property, plant and equipment (24,251) (17,220)
Increase in restricted cash (6,595) --
Proceeds on sale of property, plant and equipment 50 4,528
Purchases of intangible assets (128) (58)
Payment of contingent consideration (477) (233)
Other (436) (949)
Net cash flows from investing activities - continuing operations (61,881) (19,393)
Net cash flows from investing activities - discontinued operations 12,134 (423)
  (49,747) (19,816)
Financing activities    
Increase under line of credit facilities 65,813 36,503
Repayment of line of credit facilities (45,296) --
Borrowings under long-term debt 59,992 4,825
Repayment of long-term debt (55,484) (17,968)
Financing costs (2,564) (186)
Proceeds from the issuance of common shares 787 1,155
Other (81) 916
Net cash flows from financing activities - continuing operations 23,167 25,245
Foreign exchange gain (loss) on cash held in a foreign currency 65 (102)
     
Increase (decrease) in cash and cash equivalents during the period 4,462 (265)
Discontinued operations cash activity included above:    
Add: Balance included at beginning of period -- 308
Cash and cash equivalents - beginning of the period 2,378 2,335
Cash and cash equivalents - end of the period 6,840 2,378
     
SunOpta Inc.
Segmented Information
For the quarter ended December 29, 2012 and December 31, 2011
Unaudited
(Expressed in thousands of U.S. dollars)
 
 
Quarter ended
December 29, 2012
    SunOpta   Corporate  
    Foods Opta Minerals Services Consolidated
    $ $ $ $
Total revenues from external customers   235,964 34,125 -- 270,089
Segment Operating Income (Loss)   6,488 1,884 (1,220) 7,152
           
SunOpta Foods has the following segmented reporting:          
 
Quarter ended
December 29, 2012
  Grains and Ingredients Consumer Products International SunOpta
  Foods Group Group Group Foods Group Foods
  $ $ $ $ $
Total revenues from external customers 127,563 20,136 45,143 43,122 235,964
Segment Operating Income (Loss) 5,134 518 (433) 1,269 6,488
           
 
Quarter ended
December 31, 2011
    SunOpta   Corporate  
    Foods Opta Minerals Services Consolidated
    $ $ $ $
Total revenues from external customers   219,697 22,625 -- 242,322
Segment Operating Income (Loss)   5,123 1,361 (1,597) 4,887
           
SunOpta Foods has the following segmented reporting:          
 
Quarter ended
December 31, 2011
  Grains and Ingredients Consumer Products International SunOpta
  Foods Group Group Group Foods Group Foods
  $ $ $ $ $
Total revenues from external customers 117,224 19,472 39,482 43,519 219,697
Segment Operating Income (Loss) 6,851 391 (3,827) 1,708 5,123
           
(Segment operating income (loss) is defined as "Earnings from continuing operations before the following" excluding the impact of "Other expense (income), net".)
           
SunOpta Inc.
Segmented Information
For the year ended December 29, 2012 and December 31, 2011
Unaudited
(Expressed in thousands of U.S. dollars)
 
 
Year ended
December 29, 2012
    SunOpta   Corporate  
    Foods Opta Minerals Services Consolidated
    $ $ $ $
Total revenues from external customers   964,413 126,651 -- 1,091,064
Segment Operating Income (Loss)   42,911 10,062 (6,001) 46,972
           
SunOpta Foods has the following segmented reporting:          
 
Year ended
December 29, 2012
  Grains and Ingredients Consumer Products International SunOpta
  Foods Group Group Group Foods Group Foods
  $ $ $ $ $
Total revenues from external customers 524,659 82,544 181,022 176,188 964,413
Segment Operating Income (Loss) 32,796 3,464 (982) 7,633 42,911
           
 
Year ended
December 31, 2011
    SunOpta   Corporate  
    Foods Opta Minerals Services Consolidated
    $ $ $ $
Total revenues from external customers   926,751 93,120 -- 1,019,871
Segment Operating Income (Loss)   34,958 7,577 (8,766) 33,769
           
SunOpta Foods has the following segmented reporting:          
 
Year ended
December 31, 2011
  Grains and Ingredients Consumer Products International SunOpta
  Foods Group Group Group Foods Group Foods
  $ $ $ $ $
Total revenues from external customers 479,195 91,074 165,239 191,243 926,751
Segment Operating Income (Loss) 22,813 7,083 (3,978) 9,040 34,958
           
(Segment operating income (loss) is defined as "Earnings from continuing operations before the following" excluding the impact of "Other expense (income), net".)

1 Non-GAAP Measures

In addition to reporting financial results in accordance with generally accepted accounting principles ("GAAP"), the Company provides information regarding Operating Income and Earnings before interest, taxes, depreciation and amortization ("EBITDA") as additional information about its operating results, which are not measures in accordance with GAAP. The Company believes that these non-GAAP measures assist investors in comparing performance across reporting periods on a consistent basis by excluding items that are not indicative of the Company's core operating performance. The non-GAAP measures of operating income and EBITDA should not be considered in isolation or as a substitute for performance measures calculated in accordance with GAAP. 

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