BUSINESS NEWS: SunOpta Announces First Quarter 2010 Results

SunOpta, which this week agreed to sell its Canadian food distribution assets to United Natural Foods Inc for (CDN)$68 million in cash, has announced first quarter 2010 results. For the first quarter of 2010 the Company realized revenues of $266.1 million versus first quarter 2009 revenues of $232.1 million, a year over year increase of 14.7%. Revenues in SunOpta Foods were $247.6 million, an increase of 13.9% versus the first quarter of 2009. After adjusting for movements in foreign exchange rates and commodity prices, food revenues increased approximately 10.8% in the first quarter of 2010 versus the first quarter of 2009. All operating segments realized increased revenues year over year.

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SunOpta Announces First Quarter 2010 Results

TORONTO (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 quarter period ended April 3, 2010. All amounts are expressed in U.S. dollars and results are reported in accordance with U.S. GAAP, except where specifically noted.

For the first quarter of 2010 the Company realized revenues of $266.1 million versus first quarter 2009 revenues of $232.1 million, a year over year increase of 14.7%. Revenues in SunOpta Foods were $247.6 million, an increase of 13.9% versus the first quarter of 2009. After adjusting for movements in foreign exchange rates and commodity prices, food revenues increased approximately 10.8% in the first quarter of 2010 versus the first quarter of 2009. All operating segments realized increased revenues year over year.

For the first quarter of 2010 the Company reported net income on a GAAP basis of $4.6 million or $0.07 per diluted common share versus a loss in 2009 of $(1.7) million or $(0.03) per diluted common share. Results for the quarter include additional pre-tax costs of approximately $2.4 million, including legal and professional fees and costs related to ongoing facility and operational rationalizations.

Gross margin as a percentage of revenue increased to 18.4% in the quarter versus 14.5% in the prior year. All operating segments realized improved gross margins as a percentage of revenue. Operating income(1) increased to $10.7 million or 4.0% of revenues versus negative operating income(1) in the prior year of $(0.4) million or (0.02%) of revenues. Operating income(1) in SunOpta Foods increased to $12.5 million or 5.1% of revenues versus $2.7 million or 1.3% in the prior year.

EBITDA(1) for the first quarter of 2010 increased 259% to $15.7 million versus $4.4 million in the first quarter of 2009, indicative of the improved operating performance realized in the business.

At April 3, 2010 the Company's balance sheet reflects a current working capital ratio of 1.30 to 1.00, long-term debt to equity ratio of 0.36 to 1.00 and total debt to equity ratio of 0.72 to 1.00. During the first quarter of 2010 the Company used cash from operating activities of $14.3 million, due primarily to increased accounts receivable and normal seasonal fluctuations. At April 3, 2010 the Company has total assets of $571.1 million and a net book value of $3.68 per outstanding share.

At quarter-end, the Company is in compliance with all banking covenants.

Steve Bromley, President and Chief Executive Officer of SunOpta commented, "We are very pleased with our first quarter results and our return to profitability. The results of the first quarter are the product of extensive initiatives we have completed, centered on improving operating results within our core business segments while at the same time improving our return on assets employed. We continue to focus on these efforts and are very pleased that the initiatives completed to date are beginning to have the expected positive effect on our results. We remain confident that our continued focus on margin improvement, when combined with strong consumer interest in health and wellness, positions our Company for long-term success."

SOURCE: SunOpta Press Release