TORONTO, Nov. 6, 2012 (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 third quarter ended September 29, 2012. All amounts are expressed in U.S. dollars and results are reported in accordance with U.S. GAAP, except where specifically noted.
Third Quarter 2012 Highlights:
- Revenues increased to $279.3 million, an increase of 8.7% versus Q3 2011
- Operating income increased to $12.7 million, an increase of 72% versus Q3 2011
- Operating margin increased to 4.5% of revenues versus 2.9% in Q3 2011
- Earnings of $5.8 million, an increase of 72% versus Q3 2011 and a record for the Company
- Earnings per diluted common share increased to a record $0.09 versus $0.05 in Q3 2011
- EBITDA increased to $17.8 million, an increase of 50.5% versus Q3 2011
"We are very pleased with our third quarter financial results, reflecting higher revenues and a 72% increase in both operating income and earnings versus the prior year," commented Steve Bromley, SunOpta's Chief Executive Officer. "We continue to execute on our core strategies focused on streamlining our organization, growing our value-added packaged foods and ingredients portfolio, and leveraging our existing platform. We are pleased with our progress to-date and remain confident in our opportunities to grow our global integrated natural and organic foods platform."
Third Quarter 2012 Results
Revenues for the third quarter increased 8.7% to $279.3 million as compared to $257.0 million in the third quarter of 2011. Excluding the impact of changes including foreign exchange rates, commodity-related pricing, acquisitions and rationalized product lines, revenues increased approximately 6% on a consolidated basis versus the prior year. The increase in consolidated revenues in the third quarter was driven by strong growth across integrated grains-based food product categories within SunOpta Foods and higher sales within Opta Minerals Inc. as a result of recent acquisitions. These increases were somewhat offset by the effect of lower fiber and fruit ingredients sales and decreased revenues in the Company's European organic ingredients operation.
Operating income1 increased 72.4% to $12.7 million, or 4.5% of revenues, for the third quarter of 2012 as compared to $7.4 million, or 2.9% of revenues, for the same period last year. This increase was led by a significant improvement in operating income in the Grains and Foods Group versus the prior year as a result of increased volumes of aseptically packaged grains-based beverages and strong organic grains and feedstuff sales, as well as significantly improved results in Opta Minerals and reduced selling, general and administrative costs due in part to streamlining and rationalizations completed over the past year.
Earnings for the third quarter of 2012 were $5.8 million, or $0.09 per diluted common share, as compared to $3.4 million, or $0.05 per diluted common share, for the third quarter of 2011. These earnings are a third quarter record for the Company after excluding certain non-recurring items in prior years. Third quarter earnings include the impact of approximately $0.9 million in pre-tax severance, acquisition and start-up costs ($0.5 million after-tax).
For the quarter ended September 30, 2012, the Company realized EBITDA1 of $17.8 million as compared to $11.9 million for the third quarter of 2011, a year-over-year increase of 50.5%.
The effective tax rate for the third quarter of 2012 was 39.1% as compared to 27.3% in the third quarter of 2011. The increase in the effective tax rate is primarily a result of increased earnings in higher tax jurisdictions in 2012 and the net effect of certain tax credits that were realized in the third quarter of 2011.
Year-to-Date 2012 Results
For the first three quarters of 2012 revenues increased 5.6% to $821.0 million versus revenues of $777.5 million in the same period last year. Excluding the impact of changes including foreign exchange rates, commodity-related pricing, acquisitions and rationalized product lines, revenues increased approximately 5% on a consolidated basis. The increase in consolidated revenues for the first three quarters was driven by strong growth within integrated packaged food product categories and higher sales within Opta Minerals Inc. as a result of recent acquisitions. Those increases were somewhat offset by the effect of lower fiber and fruit ingredients sales and decreased revenues in the Company's European organic ingredients operation.
Operating income1 for the first three quarters increased to $39.8 million, or 4.9% of revenues, versus $28.9 million, or 3.7% of revenues, in the prior year, a year-over-year increase of 37.9%. This increase was primarily led by improved operating income in the Grains and Foods Group and Opta Minerals versus the prior year.
For the three quarters ended September 29, 2012, the Company reported earnings of $19.8 million, or $0.30 per diluted common share, as compared to earnings of $12.8 million, or $0.19 per diluted common share, for the same period last year, a year-over-year increase of 54.4%. Excluding discontinued operations, earnings were $18.6 million, or $0.28 per diluted common share, versus $14.8 million, or $0.22 per diluted common, share in the prior year. Included in earnings for the first three quarters of 2012 were approximately $3.1 million in pre-tax severance, acquisition and start-up costs ($1.9 million after-tax), offset by a $0.7 million after-tax gain on the sale of Purity Life Natural Health Products and approximately $0.5 million in tax adjustments that lowered the Company's effective tax rate.
The effective tax rate for the first three quarters of 2012 was 34.0% as compared to 35.2% in 2011.
For the first three quarters of 2012, the Company realized EBITDA1 of $54.8 million as compared to $42.2 million for the nine months ended October 1, 2011, a year-over-year increase of 29.7%.
Balance Sheet
The Company's balance sheet remains strong, and shareholders' equity increased to $320.2 million as of September 29, 2012. At the end of the third quarter of 2012, the Company's balance sheet reflects a current ratio of 1.51 to 1.00, and a total debt to equity ratio of 0.52 to 1.00. At September 29, 2012, the Company had total debt outstanding of $165.0 million, total assets of $669.3 million and a net book value of $4.85 per outstanding share. For the first three quarters of 2012, the Company generated cash from operating activities of $38.0 million versus cash used in operating activities of $2.7 million in the prior year, indicative of improved earnings and improved cash provided by working capital.
Conference Call Information
The Company plans to host a conference call at 10:00 AM Eastern Time on Wednesday, November 7, 2012 to discuss the third quarter financial results 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 66.2% 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 continued focus on our core strategies and opportunities to grow our global integrated natural and organic foods platform. The terms and phrases "continue", "remain confident", "improve" and "execute", 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, 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 September 29, 2012 and October 1, 2011 | ||||||
| Unaudited | ||||||
| (Expressed in thousands of U.S. dollars, except per share amounts) | ||||||
| Quarter ended | Quarter ended | |||||
| September 29, 2012 | October 1, 2011 | Change | ||||
| $ | $ | % | ||||
| Revenues | 279,339 | 257,011 | 8.7% | |||
| Cost of goods sold | 246,158 | 226,990 | 8.4% | |||
| Gross profit | 33,181 | 30,021 | 10.5% | |||
| Selling, general and administrative expenses | 19,395 | 20,591 | -5.8% | |||
| Intangible asset amortization | 1,225 | 1,045 | 17.2% | |||
| Other expense, net | 264 | 7 | 3671.4% | |||
| Foreign exchange (gain) loss | (130) | 1,022 | -112.7% | |||
| Earnings from continuing operations before the following | 12,427 | 7,356 | 68.9% | |||
| Interest expense, net | 2,339 | 2,033 | 15.1% | |||
| Earnings from continuing operations before income taxes | 10,088 | 5,323 | 89.5% | |||
| Provision for income taxes | 3,947 | 1,451 | 172.0% | |||
| Earnings from continuing operations | 6,141 | 3,872 | 58.6% | |||
| Discontinued operations | ||||||
| Earnings (loss) from discontinued operations, net of taxes | 112 | (433) | n/a | |||
| Gain on sale of discontinued operations, net of taxes | -- | 71 | n/a | |||
| Earnings (loss) from discontinued operations, net of taxes | 112 | (362) | 130.9% | |||
| Earnings | 6,253 | 3,510 | 78.1% | |||
| Earnings attributable to non-controlling interests | 449 | 144 | 211.8% | |||
| Earnings attributable to SunOpta Inc. | 5,804 | 3,366 | 72.4% | |||
| Earnings (loss) per share - basic | ||||||
| -from continuing operations | 0.09 | 0.06 | ||||
| -from discontinued operations | -- | (0.01) | ||||
| 0.09 | 0.05 | |||||
| Earnings (loss) per share - diluted | ||||||
| -from continuing operations | 0.09 | 0.06 | ||||
| -from discontinued operations | -- | (0.01) | ||||
| 0.09 | 0.05 | |||||
| SunOpta Inc. | |||
| Consolidated Statements of Operations | |||
| For the three quarters ended September 29, 2012 and October 1, 2011 | |||
| Unaudited | |||
| (Expressed in thousands of U.S. dollars, except per share amounts) | |||
| Three quarters ended | Three quarters ended | ||
| September 29, 2012 | October 1, 2011 | Change | |
| $ | $ | % | |
| Revenues | 820,975 | 777,549 | 5.6% |
| Cost of goods sold | 716,220 | 682,916 | 4.9% |
| Gross profit | 104,755 | 94,633 | 10.7% |
| Selling, general and administrative expenses | 61,911 | 61,497 | 0.7% |
| Intangible asset amortization | 3,653 | 3,078 | 18.7% |
| Other expense (income), net | 2,006 | (2,887) | 169.5% |
| Foreign exchange (gain) loss | (629) | 1,176 | -153.5% |
| Earnings from continuing operations before the following | 37,814 | 31,769 | 19.0% |
| Interest expense, net | 7,480 | 6,537 | 14.4% |
| Earnings from continuing operations before income taxes | 30,334 | 25,232 | 20.2% |
| Provision for income taxes | 10,302 | 8,875 | 16.1% |
| Earnings from continuing operations | 20,032 | 16,357 | 22.5% |
| Discontinued operations | |||
| Earnings (loss) from discontinued operations, net of taxes | 517 | (2,057) | n/a |
| Gain on sale of discontinued operations, net of taxes | 676 | 71 | n/a |
| Earnings (loss) from discontinued operations, net of income taxes | 1,193 | (1,986) | 160.1% |
| Earnings | 21,225 | 14,371 | 47.7% |
| Earnings attributable to non-controlling interests | 1,384 | 1,523 | -9.1% |
| Earnings attributable to SunOpta Inc. | 19,841 | 12,848 | 54.4% |
| Earnings (loss) per share – basic | |||
| -from continuing operations | 0.28 | 0.23 | |
| -from discontinued operations | 0.02 | (0.03) | |
| 0.30 | 0.20 | ||
| Earnings (loss) per share – diluted | |||
| -from continuing operations | 0.28 | 0.22 | |
| -from discontinued operations | 0.02 | (0.03) | |
| 0.30 | 0.19 | ||
| SunOpta Inc. | ||||
| Consolidated Balance Sheets | ||||
| As at September 29, 2012 and December 31, 2011 | ||||
| Unaudited | ||||
| (Expressed in thousands of U.S. dollars, except per share amounts) | ||||
| September 29, 2012 | December 31, 2011 | |||
| $ | $ | |||
| ASSETS | ||||
| Current assets | ||||
| Cash and cash equivalents | 4,187 | 2,378 | ||
| Accounts receivable | 115,979 | 88,898 | ||
| Inventories | 224,556 | 228,455 | ||
| Prepaid expenses and other current assets | 22,851 | 21,378 | ||
| Current income taxes recoverable | 1,106 | 1,503 | ||
| Deferred income taxes | 4,946 | 4,773 | ||
| Current assets held for sale | -- | 17,923 | ||
| 373,625 | 365,308 | |||
| Investments | 33,845 | 33,845 | ||
| Property, plant and equipment | 135,709 | 120,584 | ||
| Goodwill | 57,008 | 49,387 | ||
| Intangible assets | 54,416 | 48,035 | ||
| Deferred income taxes | 12,435 | 11,751 | ||
| Other assets | 2,270 | 1,854 | ||
| Non-current assets held for sale | -- | 739 | ||
| 669,308 | 631,503 | |||
| LIABILITIES | ||||
| Current liabilities | ||||
| Bank indebtedness | 111,237 | 109,718 | ||
| Accounts payable and accrued liabilities | 118,928 | 114,308 | ||
| Customer and other deposits | 3,493 | 843 | ||
| Income taxes payable | 3,117 | 1,229 | ||
| Other current liabilities | 3,809 | 1,419 | ||
| Current portion of long-term debt | 5,924 | 35,198 | ||
| Current portion of long-term liabilities | 569 | 995 | ||
| Current liabilities held for sale | -- | 5,920 | ||
| 247,077 | 269,630 | |||
| Long-term debt | 47,836 | 17,066 | ||
| Long-term liabilities | 6,586 | 5,586 | ||
| Deferred income taxes | 30,689 | 24,273 | ||
| 332,188 | 316,555 | |||
| EQUITY | ||||
| SunOpta Inc. shareholders' equity | ||||
| Capital Stock | 182,916 | 182,108 | ||
| 65,977,814 common shares (December 31, 2011 - 65,796,398) | ||||
| Additional paid in capital | 16,147 | 14,134 | ||
| Retained earnings | 120,349 | 100,508 | ||
| Accumulated other comprehensive income | 795 | 2,382 | ||
| 320,207 | 299,132 | |||
| Non-controlling interest | 16,913 | 15,816 | ||
| Total equity | 337,120 | 314,948 | ||
|
|
||||
| 669,308 | 631,503 | |||
| SunOpta Inc. | ||||
| Consolidated Statements of Cash Flows | ||||
| For the quarter ended September 29, 2012 and October 1, 2011 | ||||
| Unaudited | ||||
| (Expressed in thousands of U.S. dollars, except per share amounts) | ||||
| Quarter ended | Quarter ended | |||
| September 29, 2012 | October 1, 2011 | |||
| $ | $ | |||
| Cash provided by (used in) | ||||
| Operating activities | ||||
| Earnings | 6,253 | 3,510 | ||
| Earnings (loss) from discontinued operations | 112 | (362) | ||
| Earnings from continuing operations | 6,141 | 3,872 | ||
| Items not affecting cash | ||||
| Depreciation and amortization | 5,155 | 4,497 | ||
| Unrealized gain on foreign exchange | (76) | (991) | ||
| Deferred income taxes | (639) | 1,114 | ||
| Stock-based compensation | 713 | 555 | ||
| Loss on sale of property, plant and equipment | -- | 584 | ||
| Unrealized (gain) loss on derivative instruments | (3,075) | 646 | ||
| Other | 508 | 375 | ||
| Changes in non-cash working capital, net of business acquired | 7,462 | 990 | ||
| Net cash flows from operations - continuing operations | 16,189 | 11,642 | ||
| Net cash flows from operations - discontinued operations | 313 | (903) | ||
| 16,502 | 10,739 | |||
| Investing activities | ||||
| Acquisition of business, net of cash acquired | (11,644) | (2,500) | ||
| Purchases of property, plant and equipment | (5,709) | (6,082) | ||
| Payment of contingent consideration | (61) | -- | ||
| Purchases of intangible assets | (56) | -- | ||
| Other | 122 | 411 | ||
| Net cash flows from investing activities - continuing operations | (17,348) | (8,171) | ||
| Net cash flows from investing activities - discontinued operations | -- | (318) | ||
| (17,348) | (8,489) | |||
| Financing activities | ||||
| Increase in line of credit facilities | 56,959 | 4,759 | ||
| Repayment of line of credit facilities | (45,295) | -- | ||
| Borrowings under long-term debt | 15,234 | 1,875 | ||
| Repayment of long-term debt | (24,136) | (6,697) | ||
| Financing costs | (1,315) | -- | ||
| Proceeds from the issuance of common shares | 257 | 242 | ||
| Other | 53 | (19) | ||
| Net cash flows from financing activities - continuing operations | 1,757 | 160 | ||
| Foreign exchange gain (loss) on cash held in a foreign currency | 29 | (457) | ||
| Increase in cash and cash equivalents during the period | 940 | 1,953 | ||
| Discontinued operations cash activity included above: | ||||
| Add: Balance included at beginning of period | -- | 212 | ||
| Cash and cash equivalents - beginning of the period | 3,247 | 5,361 | ||
| Cash and cash equivalents - end of the period | 4,187 | 7,526 | ||
| SunOpta Inc. | ||||
| Consolidated Statements of Cash Flows | ||||
| For the three quarters ended September 29, 2012 and October 1, 2011 | ||||
| Unaudited | ||||
| (Expressed in thousands of U.S. dollars, except per share amounts) | ||||
| Three quarters ended | Three quarters ended | |||
| September 29, 2012 | October 1, 2011 | |||
| $ | $ | |||
| Cash provided by (used in) | ||||
| Operating activities | ||||
| Earnings | 21,225 | 14,371 | ||
| Earnings (loss) from discontinued operations | 1,193 | (1,986) | ||
| Earnings from continuing operations | 20,032 | 16,357 | ||
| Items not affecting cash | ||||
| Depreciation and amortization | 14,946 | 13,354 | ||
| Unrealized gain on foreign exchange | (169) | (22) | ||
| Deferred income taxes | 3,077 | 5,835 | ||
| Stock-based compensation | 2,041 | 1,536 | ||
| Gain on sale of property, plant and equipment | -- | (3,240) | ||
| Unrealized gain on derivative instruments | (1,178) | (3,272) | ||
| Other | 1,217 | 310 | ||
| Changes in non-cash working capital, net of business acquired | (1,921) | (31,903) | ||
| Net cash flows from operations - continuing operations | 38,045 | (1,045) | ||
| Net cash flows from operations - discontinued operations | (3) | (1,638) | ||
| 38,042 | (2,683) | |||
| Investing activities | ||||
| Acquisition of businesses, net of cash acquired | (29,174) | (2,500) | ||
| Purchases of property, plant and equipment | (17,623) | (15,256) | ||
| Proceeds on sale of property, plant and equipment | -- | 2,773 | ||
| Payment of contingent consideration | (388) | -- | ||
| Purchases of intangible assets | (81) | (67) | ||
| Other | (84) | (30) | ||
| Net cash from investing activities - continuing operations | (47,350) | (15,080) | ||
| Net cash flows from investing activities - discontinued operations | 12,134 | (388) | ||
| (35,216) | (15,468) | |||
| Financing activities | ||||
| Increase in line of credit facilities | 46,434 | 33,186 | ||
| Repayment of line of credit facilities | (45,296) | -- | ||
| Borrowings under long-term debt | 34,607 | 1,912 | ||
| Repayment of long-term debt | (34,959) | (13,423) | ||
| Financing costs | (2,490) | (186) | ||
| Proceeds from the issuance of common shares | 680 | 989 | ||
| Other | 24 | 802 | ||
| Net cash from financing activities - continuing operations | (1,000) | 23,280 | ||
| Foreign exchange gain (loss) on cash held in a foreign currency | (17) | (246) | ||
| Increase in cash and cash equivalents during the period | 1,809 | 4,883 | ||
| 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 | 4,187 | 7,526 | ||
| SunOpta Inc. | ||||||||||||||||
| Segmented Information | ||||||||||||||||
| For the quarter ended September 29, 2012 and October 1, 2011 | ||||||||||||||||
| Unaudited | ||||||||||||||||
| (Expressed in thousands of U.S. dollars) | ||||||||||||||||
| Quarter ended | ||||||||||||||||
| September 29, 2012 | ||||||||||||||||
| SunOpta | Corporate | |||||||||||||||
| Foods | Opta Minerals | Services | Consolidated | |||||||||||||
| $ | $ | $ | $ | |||||||||||||
|
Total revenues from external customers |
246,359 | 32,980 | -- | 279,339 | ||||||||||||
| Segment operating income (loss) | 10,835 | 3,280 | (1,424) | 12,691 | ||||||||||||
| SunOpta Foods has the following segmented reporting: | ||||||||||||||||
| Quarter ended | ||||||||||||||||
| September 29, 2012 | ||||||||||||||||
| Grains and | Consumer | International | SunOpta | |||||||||||||
| Foods | Ingredients | Products | Foods | Foods | ||||||||||||
| $ | $ | $ | $ | $ | ||||||||||||
| Total revenues from external customers | 139,917 | 20,273 | 41,636 | 44,533 | 246,359 | |||||||||||
| Segment operating income (loss) | 8,780 | 878 | (544) | 1,721 | 10,835 | |||||||||||
| Quarter ended | ||||||||||||||||
| October 1, 2011 | ||||||||||||||||
| SunOpta | Corporate | |||||||||||||||
| Foods | Opta Minerals | Services | Consolidated | |||||||||||||
| $ | $ | $ | $ | |||||||||||||
| Total revenues from external customers | 232,909 | 24,102 | -- | 257,011 | ||||||||||||
| Segment operating income (loss) | 8,563 | 1,606 | (2,806) | 7,363 | ||||||||||||
| SunOpta Foods has the following segmented reporting: | ||||||||||||||||
| Quarter ended | ||||||||||||||||
| October 1, 2011 | ||||||||||||||||
| Grains and | Consumer | International | SunOpta | |||||||||||||
| Foods | Ingredients | Products | Foods | Foods | ||||||||||||
| $ | $ | $ | $ | $ | ||||||||||||
| Total revenues from external customers | 121,596 | 21,966 | 42,066 | 47,281 | 232,909 | |||||||||||
| Segment operating income | 4,394 | 2,065 | 205 | 1,899 | 8,563 | |||||||||||
| (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 three quarters ended September 29, 2012 and October 1, 2011 | ||||||||||
| Unaudited | ||||||||||
|
(Expressed in thousands of U.S. dollars) |
||||||||||
| Three quarters ended | ||||||||||
| September 29, 2012 | ||||||||||
| SunOpta | Corporate | |||||||||
| Foods | Opta Minerals | Services | Consolidated | |||||||
| $ | $ | $ | $ | |||||||
| Total revenues from external customers | 728,449 | 92,526 | -- | 820,975 | ||||||
| Segment operating income (loss) | 36,423 | 8,178 | (4,781) | 39,820 | ||||||
| SunOpta Foods has the following segmented reporting: | ||||||||||
| Three quarters ended | ||||||||||
| September 29, 2012 | ||||||||||
| Grains and | Consumer | International | SunOpta | |||||||
| Foods | Ingredients | Products | Foods | Foods | ||||||
| $ | $ | $ | $ | $ | ||||||
| Total revenues from external customers | 397,096 | 62,408 | 135,879 | 133,066 | 728,449 | |||||
| Segment operating income (loss) | 27,662 | 2,946 | (549) | 6,364 | 36,423 | |||||
| Three quarters ended | ||||||||||
| October 1, 2011 | ||||||||||
| SunOpta | Corporate | |||||||||
| Foods | Opta Minerals | Services | Consolidated | |||||||
| $ | $ | $ | $ | |||||||
| Total revenues from external customers | 707,054 | 70,495 | -- | 777,549 | ||||||
| Segment operating income (loss) | 29,835 | 6,216 | (7,169) | 28,882 | ||||||
| SunOpta Foods has the following segmented reporting: | ||||||||||
| Three quarters ended | ||||||||||
| October 1, 2011 | ||||||||||
| Grains and | Consumer | International | SunOpta | |||||||
| Foods | Ingredients | Products | Foods | Foods | ||||||
| $ | $ | $ | $ | $ | ||||||
| Total revenues from external customers | 361,971 | 71,602 | 125,757 | 147,724 | 707,054 | |||||
| Segment operating income (loss) | 15,962 | 6,692 | (151) | 7,332 | 29,835 | |||||
| (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 [income], 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 | |||||
| September 29, 2012 | October 1, 2011 | |||||
| $ | $ | |||||
| Earnings from continuing operations | 6,141 | 3,872 | ||||
| Provision for income taxes | 3,947 | 1,451 | ||||
| Interest expense, net | 2,339 | 2,033 | ||||
| Other expense, net | 264 | 7 | ||||
| Operating income | 12,691 | 7,363 | ||||
| Depreciation and amortization | 5,155 | 4,497 | ||||
| Earnings before interest, taxes, depreciation and amortization (EBITDA) | 17,846 | 11,860 | ||||
| Three quarters ended | Three quarters ended | |||||
| September 29, 2012 | October 1, 2011 | |||||
| $ | $ | |||||
| Earnings from continuing operations | 20,032 | 16,357 | ||||
| Provision for income taxes | 10,302 | 8,875 | ||||
| Interest expense, net | 7,480 | 6,537 | ||||
| Other expense (income), net | 2,006 | (2,887) | ||||
| Operating income | 39,820 | 28,882 | ||||
| Depreciation and amortization | 14,946 | 13,354 | ||||
| Earnings before interest, taxes, depreciation and amortization (EBITDA) | 54,766 | 42,236 | ||||