TORONTO, Aug. 7, 2013 (GLOBE NEWSWIRE) -- SunOpta Inc. ("SunOpta" or the "Company") (Nasdaq:STKL) (TSX:SOY), a leading global company focused on natural, organic and specialty foods, today announced financial results for the second quarter ended June 29, 2013. All amounts are expressed in U.S. dollars and results are reported in accordance with U.S. GAAP, except where specifically noted.
Second Quarter 2013 Highlights:
- Record second quarter revenues of $311.2 million, an increase of 10.2% versus the 2012 second quarter
- Operating income¹ of $13.3 million, or 4.3% of revenues
- EBITDA¹ of $18.7 million, or 6.0% of revenues
- Adjusted earnings from continuing operations1 of $6.5 million, or $0.10 per diluted common share
- GAAP loss per diluted common share from continuing operations of $0.23 or $15.0 million, after accounting for non-cash impairment charge of non-core investment in Mascoma Corporation
Year-to-date 2013 Highlights:
- Record year-to-date revenues of $594.0 million, an increase of 9.7% versus the prior year
- Operating income¹ of $24.0 million, or 4.0% of revenues
- EBITDA¹ of $34.8 million, or 5.9% of revenues
- Adjusted earnings from continuing operations1 of $11.7 million, or $0.17 per diluted common share
- GAAP loss per diluted common share from continuing operations of $0.15 or $9.8 million, after accounting for non-cash impairment charge of non-core investment in Mascoma Corporation
"We are pleased with our record revenues for the quarter and year-to-date periods, combined with the continued momentum in our core natural and organic foods business. There is no doubt that interest in healthy eating continues to grow and we believe we are well positioned to capitalize on future growth as consumers around the world increase their interest in healthy eating and healthy living," commented Steve Bromley, Chief Executive Officer. "We continued to see strong growth in our value added product offerings during the quarter, and with a number of our expansion projects now coming on line, we look forward to realizing the benefits of these expansions. As we anticipated, our margins in the quarter were impacted by crop quality associated with the poor growing conditions experienced in 2012 and cyclical weakness in the steel and infrastructure segments within our non-core holding, Opta Minerals. As we look ahead, we believe that 2013 will be another successful year for our Company as we continue to execute on our core strategies of growing our value-added packaged foods and ingredients portfolio, and leveraging our integrated platform in support of our long-term operating targets."
Second Quarter 2013 Results
Revenues increased 10.2% to a record $311.2 million as compared to $282.3 million in the second quarter of 2012. The increase in consolidated revenues was driven by strong demand and increased prices for organic grains and feed products, continued growth in consumer packaged categories including aseptic non-dairy beverages and re-sealable pouch products, as well as higher sales within Opta Minerals Inc. as a result of recent acquisitions. Excluding the impact of a number of factors including commodity, currency and product rationalizations, revenues in SunOpta Foods increased approximately 7.2% versus the prior year and consolidated revenues increased approximately 5.7%.
Operating income¹ for the second quarter was $13.3 million, or 4.3% of revenues, as compared to $14.3 million, or 5.1% of revenues in 2012. Operating earnings were driven by solid results across the Company's grains, feed, international ingredients and consumer products operations, offset by the effect of the 2012 drought on sunflower processing yields and by-product values, and Opta Minerals which continued to face cyclical weakness in both the steel and infrastructure sectors and the cost of integrating recent acquisitions.
For the quarter ended June 29, 2013 the Company incurred a loss from continuing operations of $15.0 million or $0.23 per diluted common share, compared to earnings from continuing operations of $7.3 million or $0.11 per diluted common share for the second quarter of 2012. Included in the results for the second quarter is a non-cash charge of approximately $21.5 million after tax, or $0.32 per diluted common share, representing a 64% write-down of the carrying value of the Company's non-core investment in Mascoma Corporation. In assessing the fair value the Company considered a number of factors including the values of comparable public companies in the renewable energy space, which have experienced declines in value that no longer appear to be of a temporary nature. The Company's investment in Mascoma was established in the third quarter of 2010 following the sale of SunOpta BioProcess Inc. in return for a minority equity stake in Mascoma. At that time, a non-cash gain on sale was recognized and adjusted earnings were reported to remove the effect of the gain.
Excluding the Mascoma impairment charge, adjusted earnings from continuing operations1 in the second quarter of 2013 were $6.5 million or $0.10 per diluted common share. In addition, earnings for the second quarter include the impact of approximately $1.7 million in pre-tax severance, acquisition and start-up costs, or approximately $1.0 million after-tax and minority interest.
For the second quarter of 2013 EBITDA¹ was $18.7 million as compared to $19.4 million during the second quarter of 2012.
Year-to-date 2013 Results
Revenues increased 9.7% to a record $594.0 million as compared to $541.6 million in the first half of 2012. The increase in consolidated revenues was driven by strong demand and increased prices for organic grains and feed products, continued growth in consumer packaged categories including aseptic non-dairy beverages and re-sealable pouch products, as well as higher sales within Opta Minerals Inc. as a result of recent acquisitions. Excluding the impact of a number of factors including commodity, currency and product rationalizations, revenues in SunOpta Foods have increased approximately 7.4% versus the prior year and consolidated revenues increased approximately 5.9%.
Operating income¹ for the first half of 2013 was $24.0 million, or 4.0% of revenues, as compared to $27.1 million, or 5.0% of revenues in the first half of 2012. Operating earnings were driven by solid results across the Company's grains, feed, and consumer products operations, offset by the effect the factors previously noted in the sunflower operations and Opta Minerals.
For the first half of 2013 the Company incurred a loss from continuing operations of $9.8 million or $0.15 per diluted common share, compared to earnings from continuing operations of $13.0 million or $0.19 per diluted common share for the first half of 2012. Included in the results for the first half of 2013 was the non-cash charge of approximately $21.5 million after tax or $0.32 per diluted common share, reflecting the write-down of the Company's investment in Mascoma. After adjusting for this item, adjusted earnings from continuing operations1 in the first half of 2013 were $11.7 million or $0.17 per diluted common share. Earnings for the first half of 2013 include the impact of approximately $2.9 million in pre-tax severance, acquisition and start-up costs, or approximately $1.7 million after-tax and minority interest.
For the first half of 2013 EBITDA¹ was $34.8 million as compared to $36.9 million during the first half of 2012.
Balance Sheet
The Company's balance sheet remains strong and at June 29, 2013 reflected a current ratio of 1.46 to 1.00 and a net debt to equity ratio of 0.57 to 1.00. At June 29, 2013, the Company had total debt outstanding of $195.5 million, net debt of $182.5 million, total assets of $694.9 million, shareholders' equity of $318.3 million and a net book value of $4.80 per outstanding share.
Conference Call Information
The Company plans to host a conference call at 10:00 A.M. Eastern Time on Thursday, August 8, 2013 to discuss the results for the second quarter of 2013 and recent corporate developments. After opening remarks, there will be a question and answer period. This conference call can be accessed via a link at the Company's website at www.sunopta.com. To listen to the live call over the Internet, please go to the Company's website at least 15 minutes early to register, download and install any necessary audio software. Additionally, the call may be accessed with the toll free dial-in number (877) 312-9198 or international dial-in number (631) 291-4622. If you are unable to listen live, the conference call will be archived and can be accessed for approximately 90 days at the Company's website.
¹See discussion of non-GAAP measures
About SunOpta Inc.
SunOpta Inc. is a leading global company focused on natural, organic and specialty foods products. The Company specializes in sourcing, processing and packaging of natural and organic food products, integrated from seed through packaged products; with a focus on strategically vertically integrated business models. The Company's core natural and organic food operations focus on value-added grains, fiber and fruit based product offerings, supported by a global infrastructure. The Company has two non-core holdings, a 66.1% ownership position in Opta Minerals Inc., listed on the Toronto Stock Exchange, a producer, distributor, and recycler of environmentally friendly industrial materials; and a minority ownership position in Mascoma Corporation, an innovative biofuels company.
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 belief that we are well positioned to capitalize on future growth as consumers around the world increase their interest in healthy eating and healthy living and that 2013 will be another successful year. The terms and phrases "believe", "look forward" and "continued", " 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 June 29, 2013 and June 30, 2012 | |||
| Unaudited | |||
| (Expressed in thousands of U.S. dollars, except per share amounts) | |||
| Quarter ended | Quarter ended | ||
| June 29, 2013 | June 30, 2012 | Change | |
| $ | $ | % | |
| Revenues | 311,170 | 282,308 | 10.2% |
| Cost of goods sold | 274,187 | 245,220 | 11.8% |
| Gross profit | 36,983 | 37,088 | -0.3% |
| Selling, general and administrative expenses | 22,839 | 22,086 | 3.4% |
| Intangible asset amortization | 1,200 | 1,235 | -2.8% |
| Other expense, net | 647 | 1,378 | -53.0% |
| Foreign exchange gain | (356) | (581) | 38.7% |
| Earnings from continuing operations before the following | 12,653 | 12,970 | -2.4% |
| Interest expense, net | 2,238 | 2,558 | -12.5% |
| Impairment loss on investment | 21,495 | -- | n/m |
| Earnings (loss) from continuing operations before income taxes | (11,080) | 10,412 | -206.4% |
| Provision for income taxes | 3,958 | 2,769 | 42.9% |
| Earnings (loss) from continuing operations | (15,038) | 7,643 | -296.8% |
| Discontinued operations | |||
| Earnings (loss) from discontinued operations, net of taxes | (302) | 214 | -241.1% |
| Gain on sale of discontinued operations, net of taxes | -- | 676 | n/m |
| Earnings (loss) from discontinued operations, net of taxes | (302) | 890 | -133.9% |
| Earnings (loss) | (15,340) | 8,533 | -279.8% |
| Earnings (loss) attributable to non-controlling interests | (59) | 388 | -115.2% |
| Earnings (loss) attributable to SunOpta Inc. | (15,281) | 8,145 | -287.6% |
| Earnings (loss) per share - basic | |||
| -from continuing operations | (0.23) | 0.11 | |
| -from discontinued operations | -- | 0.01 | |
| (0.23) | 0.12 | ||
| Earnings (loss) per share – diluted | |||
| -from continuing operations | (0.23) | 0.11 | |
| -from discontinued operations | -- | 0.01 | |
| (0.23) | 0.12 | ||
| SunOpta Inc. | |||
| Consolidated Statements of Operations | |||
| For the two quarters ended June 29, 2013 and June 30, 2012 | |||
| Unaudited | |||
| (Expressed in thousands of U.S. dollars, except per share amounts) | |||
| Two quarters ended | Two quarters ended | ||
| June 29, 2013 | June 30, 2012 | Change | |
| $ | $ | % | |
| Revenues | 593,995 | 541,636 | 9.7% |
| Cost of goods sold | 522,762 | 470,062 | 11.2% |
| Gross profit | 71,233 | 71,574 | -0.5% |
| Selling, general and administrative expenses | 45,750 | 42,516 | 7.6% |
| Intangible asset amortization | 2,448 | 2,428 | 0.8% |
| Other expense, net | 1,012 | 1,742 | -41.9% |
| Foreign exchange gain | (941) | (499) | -88.6% |
| Earnings from continuing operations before the following | 22,964 | 25,387 | -9.5% |
| Interest expense, net | 3,928 | 5,141 | -23.6% |
| Impairment loss on investment | 21,495 | -- | n/m |
| Earnings (loss) from continuing operations before income taxes | (2,459) | 20,246 | -112.1% |
| Provision for income taxes | 7,233 | 6,355 | 13.8% |
| Earnings (loss) from continuing operations | (9,692) | 13,891 | -169.8% |
| Discontinued operations | |||
| Earnings (loss) from discontinued operations, net of taxes | (360) | 405 | -188.9% |
| Gain on sale of discontinued operations, net of taxes | -- | 676 | n/m |
| Earnings (loss) from discontinued operations, net of taxes | (360) | 1,081 | -133.3% |
| Earnings (loss) | (10,052) | 14,972 | -167.1% |
| Earnings attributable to non-controlling interests | 104 | 935 | -88.9% |
| Earnings (loss) attributable to SunOpta Inc. | (10,156) | 14,037 | -172.4% |
| Earnings (loss) per share – basic | |||
| -from continuing operations | (0.15) | 0.20 | |
| -from discontinued operations | (0.01) | 0.02 | |
| (0.15) | 0.21 | ||
| Earnings (loss) per share – diluted | |||
| -from continuing operations | (0.15) | 0.19 | |
| -from discontinued operations | (0.01) | 0.02 | |
| (0.15) | 0.21 | ||
| SunOpta Inc. | ||
| Consolidated Balance Sheets | ||
| As at June 29, 2013 and December 29, 2012 | ||
| Unaudited | ||
| (Expressed in thousands of U.S. dollars) | ||
| June 29, 2013 | December 29, 2012 | |
| $ | $ | |
| ASSETS | ||
| Current assets | ||
| Cash and cash equivalents | 6,460 | 6,840 |
| Restricted cash | 6,495 | 6,595 |
| Accounts receivable | 120,680 | 113,314 |
| Inventories | 249,407 | 255,738 |
| Prepaid expenses and other current assets | 19,862 | 20,538 |
| Current income taxes recoverable | 676 | 1,814 |
| Deferred income taxes | 3,178 | 2,653 |
| 406,758 | 407,492 | |
| Investment | 12,350 | 33,845 |
| Property, plant and equipment | 155,141 | 140,579 |
| Goodwill | 57,022 | 57,414 |
| Intangible assets | 49,788 | 52,885 |
| Deferred income taxes | 12,565 | 12,879 |
| Other assets | 1,234 | 2,216 |
| 694,858 | 707,310 | |
| LIABILITIES | ||
| Current liabilities | ||
| Bank indebtedness | 142,977 | 131,061 |
| Accounts payable and accrued liabilities | 113,459 | 128,544 |
| Customer and other deposits | 9,127 | 4,734 |
| Income taxes payable | 3,358 | 4,125 |
| Other current liabilities | 2,873 | 2,660 |
| Current portion of long-term debt | 6,393 | 6,925 |
| Current portion of long-term liabilities | 689 | 1,471 |
| 278,876 | 279,520 | |
| Long-term debt | 46,122 | 51,273 |
| Long-term liabilities | 4,949 | 5,544 |
| Deferred income taxes | 28,944 | 27,438 |
| 358,891 | 363,775 | |
| EQUITY | ||
| SunOpta Inc. shareholders' equity | ||
| Capital Stock | 184,742 | 183,027 |
| 66,305,459 common shares (December 29, 2012 - 66,007,236) | ||
| Additional paid in capital | 17,912 | 16,855 |
| Retained earnings | 114,576 | 124,732 |
| Accumulated other comprehensive income | 1,057 | 1,537 |
| 318,287 | 326,151 | |
| Non-controlling interests | 17,680 | 17,384 |
| Total equity | 335,967 | 343,535 |
| 694,858 | 707,310 | |
| SunOpta Inc. | ||
| Consolidated Statements of Cash Flows | ||
| For the quarter ended June 29, 2013 and June 30, 2012 | ||
| Unaudited | ||
| (Expressed in thousands of U.S. dollars) | ||
| Quarter ended | Quarter ended | |
| June 29, 2013 | June 30, 2012 | |
| $ | $ | |
| Cash provided by (used in) | ||
| Operating activities | ||
| Earnings (loss) | (15,340) | 8,533 |
| Earnings (loss) from discontinued operations | (302) | 890 |
| Earnings (loss) from continuing operations | (15,038) | 7,643 |
| Items not affecting cash | ||
| Depreciation and amortization | 5,429 | 5,018 |
| Deferred income taxes | 564 | 1,630 |
| Stock-based compensation | 856 | 740 |
| Unrealized loss on derivative instruments | 199 | 1,215 |
| Impairment loss on investment | 21,495 | -- |
| Other | (219) | 173 |
| Changes in non-cash working capital, net of businesses acquired | 15,191 | 12,547 |
| Net cash flows from operations - continuing operations | 28,477 | 28,966 |
| Net cash flows from operations - discontinued operations | (4,570) | (168) |
| 23,907 | 28,798 | |
| Investing activities | ||
| Purchases of property, plant and equipment, net | (14,083) | (6,995) |
| Payment of contingent consideration | (1,074) | (327) |
| Other | (341) | (129) |
| Net cash flows from investing activities - continuing operations | (15,498) | (7,451) |
| Net cash flows from investing activities - discontinued operations | -- | 12,147 |
| (15,498) | 4,696 | |
| Financing activities | ||
| Decrease in line of credit facilities | (7,857) | (29,534) |
| Borrowings under long-term debt | 112 | 285 |
| Repayment of long-term debt | (1,601) | (3,793) |
| Financing costs | (9) | (1,084) |
| Proceeds from the issuance of common shares | 567 | 266 |
| Other | 20 | (26) |
| Net cash flows from financing activities - continuing operations | (8,768) | (33,886) |
| Foreign exchange gain (loss) on cash held in a foreign currency | 110 | (90) |
| Decrease in cash and cash equivalents during the period | (249) | (482) |
| Cash and cash equivalents - beginning of the period | 6,709 | 3,729 |
| Cash and cash equivalents - end of the period | 6,460 | 3,247 |
| SunOpta Inc. | ||
| Consolidated Statements of Cash Flows | ||
| For the two quarters ended June 29, 2013 and June 30, 2012 | ||
| Unaudited | ||
| (Expressed in thousands of U.S. dollars) | ||
| Two quarters ended | Two quarters ended | |
| June 29, 2013 | June 30, 2012 | |
| $ | $ | |
| Cash provided by (used in) | ||
| Operating activities | ||
| Earnings (loss) | (10,052) | 14,972 |
| Earnings (loss) from discontinued operations | (360) | 1,081 |
| Earnings (loss) from continuing operations | (9,692) | 13,891 |
| Items not affecting cash | ||
| Depreciation and amortization | 10,849 | 9,791 |
| Deferred income taxes | 1,505 | 3,716 |
| Stock-based compensation | 1,541 | 1,328 |
| Unrealized loss on derivative instruments | 942 | 1,897 |
| Impairment loss on investment | 21,495 | -- |
| Other | 103 | 616 |
| Changes in non-cash working capital, net of businesses acquired | (4,985) | (9,383) |
| Net cash flows from operations - continuing operations | 21,758 | 21,856 |
| Net cash flows from operations - discontinued operations | (4,608) | (316) |
| 17,150 | 21,540 | |
| Investing activities | ||
| Acquisitions of businesses, net of cash acquired | (3,828) | (17,530) |
| Purchases of property, plant and equipment | (21,976) | (11,914) |
| Payment of contingent consideration | (1,074) | (327) |
| Other | (838) | (231) |
| Net cash flows from investing activities - continuing operations | (27,716) | (30,002) |
| Net cash flows from investing activities - discontinued operations | -- | 12,134 |
| (27,716) | (17,868) | |
| Financing activities | ||
| Increase (decrease) in line of credit facilities | 12,782 | (10,526) |
| Borrowings under long-term debt | 344 | 19,373 |
| Repayment of long-term debt | (4,020) | (10,823) |
| Financing costs | (23) | (1,175) |
| Proceeds from the issuance of common shares | 1,231 | 423 |
| Other | (25) | (29) |
| Net cash flows from financing activities - continuing operations | 10,289 | (2,757) |
| Foreign exchange loss on cash held in a foreign currency | (103) | (46) |
| Increase (decrease) in cash and cash equivalents during the period | (380) | 869 |
| Cash and cash equivalents - beginning of the period | 6,840 | 2,378 |
| Cash and cash equivalents - end of the period | 6,460 | 3,247 |
| SunOpta Inc. | |||||
| Segmented Information | |||||
| For the quarter ended June 29, 2013 and June 30, 2012 | |||||
| Unaudited | |||||
| (Expressed in thousands of U.S. dollars) | |||||
| Quarter ended | |||||
| June 29, 2013 | |||||
| SunOpta | Corporate | ||||
| Foods | Opta Minerals | Services | Consolidated | ||
| $ | $ | $ | $ | ||
| Total revenues from | |||||
| external customers | 273,708 | 37,462 | -- | 311,170 | |
| Segment operating income (loss) | 14,284 | 903 | (1,887) | 13,300 | |
| SunOpta Foods has the following segmented reporting: | |||||
| Quarter ended | |||||
| June 29, 2013 | |||||
| Grains and | Consumer | International | SunOpta | ||
| Foods | Ingredients | Products | Foods | Foods | |
| $ | $ | $ | $ | $ | |
| Total revenues from | |||||
| external customers | 144,951 | 21,975 | 53,725 | 53,057 | 273,708 |
| Segment operating income | 9,531 | 950 | 2,055 | 1,748 | 14,284 |
| Quarter ended | |||||
| June 30, 2012 | |||||
| SunOpta | Corporate | ||||
| Foods | Opta Minerals | Services | Consolidated | ||
| $ | $ | $ | $ | ||
| Total revenues from | |||||
| external customers | 251,094 | 31,214 | -- | 282,308 | |
| Segment operating income (loss) | 14,035 | 1,817 | (1,504) | 14,348 | |
| SunOpta Foods has the following segmented reporting: | |||||
| Quarter ended | |||||
| June 30, 2012 | |||||
| Grains and | Consumer | International | SunOpta | ||
| Foods | Ingredients | Products | Foods | Foods | |
| $ | $ | $ | $ | $ | |
| Total revenues from | |||||
| external customers | 136,004 | 20,486 | 49,091 | 45,513 | 251,094 |
| Segment operating income | 10,496 | 839 | 170 | 2,530 | 14,035 |
| (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 two quarters ended June 29, 2013 and June 30, 2012 | |||||
| Unaudited | |||||
| (Expressed in thousands of U.S. dollars) | |||||
| Two quarters ended | |||||
| June 29, 2013 | |||||
| SunOpta | Corporate | ||||
| Foods | Opta Minerals | Services | Consolidated | ||
| $ | $ | $ | $ | ||
| Total revenues from | |||||
| external customers | 520,308 | 73,687 | -- | 593,995 | |
| Segment operating income (loss) | 23,908 | 3,366 | (3,298) | 23,976 | |
| SunOpta Foods has the following segmented reporting: | |||||
| Two quarters ended | |||||
| June 29, 2013 | |||||
| Grains and | Consumer | International | SunOpta | ||
| Foods | Ingredients | Products | Foods | Foods | |
| $ | $ | $ | $ | $ | |
| Total revenues from | |||||
| external customers | 275,404 | 43,496 | 100,276 | 101,132 | 520,308 |
| Segment operating income | 17,024 | 1,952 | 1,880 | 3,052 | 23,908 |
| Two quarters ended | |||||
| June 30, 2012 | |||||
| SunOpta | Corporate | ||||
| Foods | Opta Minerals | Services | Consolidated | ||
| $ | $ | $ | $ | ||
| Total revenues from | |||||
| external customers | 482,090 | 59,546 | -- | 541,636 | |
| Segment operating income (loss) | 25,588 | 4,898 | (3,357) | 27,129 | |
| SunOpta Foods has the following segmented reporting: | |||||
| Two quarters ended | |||||
| June 30, 2012 | |||||
| Grains and | Consumer | International | SunOpta | ||
| Foods | Ingredients | Products | Foods | Foods | |
| $ | $ | $ | $ | $ | |
| Total revenues from | |||||
| external customers | 257,179 | 42,135 | 94,243 | 88,533 | 482,090 |
| Segment operating income (loss) | 18,882 | 2,068 | (5) | 4,643 | 25,588 |
| (Segment operating income (loss) is defined as "Earnings from continuing operations before the following" excluding the impact of "Other expense (income), net") |
1Non-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.
The Company defines Operating Income as "Earnings from continuing operations before the following" excluding the impact of "Other expense, net"; and EBITDA as Operating Income plus depreciation and amortization. The following is a tabular presentation of Operating Income and EBITDA, including a reconciliation to GAAP earnings, which the Company believes to be the most directly comparable GAAP financial measure:
| Quarter ended | Quarter ended | |
| June 29, 2013 | June 30, 2012 | |
| $ | $ | |
| Earnings (loss) from continuing operations | (15,038) | 7,643 |
| Provision for income taxes | 3,958 | 2,769 |
| Interest expense, net | 2,238 | 2,558 |
| Other expense, net | 647 | 1,378 |
| Impairment loss on investment | 21,495 | -- |
| Operating income | 13,300 | 14,348 |
| Depreciation and amortization | 5,429 | 5,018 |
| Earnings before interest, taxes, depreciation and amortization (EBITDA) | 18,729 | 19,366 |
| Two quarters ended | Two quarters ended | |
| June 29, 2013 | June 30, 2012 | |
| $ | $ | |
| Earnings (loss) from continuing operations | (9,692) | 13,891 |
| Provision for income taxes | 7,233 | 6,355 |
| Interest expense, net | 3,928 | 5,141 |
| Other expense, net | 1,012 | 1,742 |
| Impairment loss on investment | 21,495 | -- |
| Operating income | 23,976 | 27,129 |
| Depreciation and amortization | 10,849 | 9,791 |
| Earnings before interest, taxes, depreciation and amortization (EBITDA) | 34,825 | 36,920 |
The Company also reported Adjusted earnings from continuing operations and Adjusted earnings from continuing operations per diluted share for the quarter and two quarters ended June 29, 2013. Adjusted earnings from continuing operations and Adjusted earnings from continuing operations per diluted share are also non-GAAP financial measures. During the quarter and two quarters ended June 29, 2012, the Company recognized specific charges that we do not believe are reflective of normal business operations. We have excluded the impairment loss on our investment in Mascoma to arrive at Adjusted earnings from continuing operations and Adjusted earnings from continuing operations per diluted share. The following is a tabular presentation of Adjusted earnings from continuing operations and Adjusted earnings from continuing operations per diluted share, including a reconciliation to GAAP Loss attributable to SunOpta Inc. and GAAP Loss attributable to SunOpta Inc. on a per diluted share basis, which the Company believes to be the most directly comparable GAAP financial measures.
Following is a calculation of our Adjusted earnings from continuing operations and Adjusted earnings from continuing operations per diluted share for the quarter and two quarters ended June 29, 2013.
| Adjusted earnings | ||
| Quarter ended | per diluted share | |
| June 29, 2013 | for the quarter | |
| $ | $ | |
| Loss attributable to SunOpta Inc. | (15,281) | (0.23) |
| Loss from discontinued operations, net of taxes | (302) | -- |
| Loss from continuing operations attributable to SunOpta Inc. | (14,979) | (0.23) |
| Adjusted for: | ||
| Impairment loss on Mascoma investment | 21,495 | 0.32 |
| Adjusted earnings from continuing operations | 6,516 | 0.10 |
| Adjusted earnings | ||
| Two quarters ended | per diluted share | |
| June 29, 2013 | for the two quarters | |
| $ | $ | |
| Loss attributable to SunOpta Inc. | (10,156) | (0.15) |
| Loss from discontinued operations, net of taxes | (360) | (0.01) |
| Loss from continuing operations attributable to SunOpta Inc. | (9,796) | (0.15) |
| Adjusted for: | ||
| Impairment loss on Mascoma investment | 21,495 | 0.32 |
| Adjusted earnings from continuing operations | 11,699 | 0.17 |