SunOpta Announces Fourth Quarter and Fiscal 2022 Financial Results
SunOpta Inc. (Nasdaq:STKL) reported a 4Q 2022 revenue increase of 8.4% to $221.3 million, driven by 10.8% growth in plant-based products and 4.5% in fruit-based products. Notably, excluding the divested sunflower business, plant-based revenue surged by 23.5%. Consolidated gross profit rose 56.4% to $28.2 million, with adjusted EBITDA skyrocketing 122.7% to $23.5 million. The net loss from continuing operations shrank to $0.9 million from $6.1 million a year ago. For 2023, revenue is projected between $1,000 and $1,050 million, suggesting a growth rate of 7% to 12%.
- Plant-based revenue growth accelerated 23.5% excluding the sunflower business.
- Consolidated gross profit increased 56.4%.
- Adjusted EBITDA rose 122.7% to $23.5 million.
- Net loss from continuing operations decreased to $0.9 million from $6.1 million.
- Startup costs of approximately $4.6 million at the new Texas plant.
Plant-Based revenue growth accelerated by
Consolidated gross profit increased
Net loss from continuing operations of
Adjusted EBITDA increased
Reaffirms 2023 Adjusted EBITDA outlook
All amounts are expressed in
Fourth Quarter 2022 highlights:
-
Revenues increased
8.4% to$221.3 million 10.8% growth in the plant-based segment and4.5% growth in the fruit-based segment. Excluding the impact of the sunflower business, which was divested in October, plant-based segment revenues increased23.5% versus the fourth quarter last year, with volume growth of10.0% -
Gross profit increased
56.4% despite approximately$4.6 million Texas plant. -
Loss from continuing operations was
$0.9 million $6.1 million -
Adjusted earnings¹ attributable to common shareholders was
$2.1 million $0.02 $5.2 million $0.05 -
Adjusted EBITDA¹ of
$23.5 million 10.6% of revenues, was up122.7% versus$10.6 million 5.2% of revenues in the prior year period.
“Our significant improvement year-over-year in profitability reflects strong execution against our key priorities of driving growth and optimizing performance including maintaining high service levels and supply chain efficiency,” said
Fourth Quarter 2022 Results
Revenues of
Gross profit was
Segment operating income¹ was
Earnings attributable to common shareholders for the fourth quarter of 2022 was
Adjusted earnings¹ in the fourth quarter of 2022 was
Adjusted EBITDA¹ was
In the fourth quarter of 2022, management identified certain errors related to prior year amounts, which were not material to the Company's previously issued financial statements. These principally related to our provisions for income taxes and recognition of deferred tax assets on stock-based compensation as previously reported in fiscal 2021 and fiscal 2020. We have revised the prior year financial results accordingly. In the aggregate, these revisions had the effect of reducing the net loss in fiscal 2021 by
Please refer to the discussion and table below under “Non-GAAP Measures”.
Balance Sheet and Cash Flow
As of
2023 Outlook2
For fiscal 2023, the Company expects:
($ millions) |
|
2023 Outlook |
|
Growth |
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Revenue |
$ |
1,000 – 1,050 |
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Adj. EBITDA |
$ |
97 - 103 |
|
Excluding
Series B-1 Preferred Stock
On
The shares of Series B-1 Preferred Stock of
Additional information regarding the exchange will be included in Form 10-K to be filed by
Conference Call
1 See discussion of non-GAAP measures
2 The Company has included certain forward-looking statements about the future financial performance that include non-GAAP financial measures, including Adjusted EBITDA. These non–GAAP financial measures are derived by excluding certain amounts, expenses or income, from the corresponding financial measures determined in accordance with GAAP. The determination of the amounts that are excluded from these non-GAAP financial measures is a matter of management judgment and depends upon, among other factors, the nature of the underlying expense or income amounts recognized in a given period. We are unable to present a quantitative reconciliation of the aforementioned forward-looking non-GAAP financial measures to their most directly comparable forward-looking GAAP financial measures because management cannot reliably predict all of the necessary components of such GAAP measures. Historically, management has excluded the following items from certain of these non-GAAP measures, and such items may also be excluded in future periods and could be significant amounts.
- Expenses related to the acquisition or divestiture of a business, including business development costs, impairment of assets, integration costs, severance, retention costs and transaction costs;
- Start-up costs of new facilities and equipment;
- Charges associated with restructuring and cost saving initiatives, including but not limited to asset impairments, accelerated depreciation, severance costs and lease abandonment charges;
- Asset impairment charges and facility closure costs;
- Legal settlements or awards; and
- The tax effect of the above items.
About
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 expectation that 2023 will be another year of significant growth for revenues and profit, our ability to continue to leverage our competitive position, and our anticipated revenue and adjusted EBITDA ranges for fiscal 2023. Generally, forward-looking statements do not relate strictly to historical or current facts and are typically accompanied by words such as “expect”, “continue”, “anticipate”, “believe”, “estimates”, “can”, “will”, “target”, "should", "would", "plans", "becoming", "intend", "confident", "may", "project", "potential", "intention", "might", "predict", “budget”, “forecast” or other similar terms and phrases intended to identify these forward-looking statements. Forward-looking statements are based on information available to the Company 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 including, but not limited to, the Company’s actual financial results; general economic conditions; continued consumer interest in health and wellness; the Company’s ability to maintain product pricing levels; planned facility and operational expansions, closures and divestitures; cost rationalization and product development initiatives; alternative potential uses for the Company’s capital resources; portfolio optimization and productivity efforts; the sustainability of the Company’s sales pipeline; the Company’s expectations regarding commodity pricing, margins and hedging results; improved availability and field prices for fruit; procurement and logistics savings; freight lane cost reductions; yield and throughput enhancements; and labor cost reductions. Whether actual timing and results will agree with expectations and predictions of the Company is subject to many risks and uncertainties including, but not limited to, potential loss of suppliers and customers as well as supply chain, logistics and other disruptions; unexpected issues or delays with the Company’s structural improvements and automation investments; failure or inability to implement portfolio changes, process improvements, go-to-market improvements and process sustainability strategies in a timely manner; changes in the level of capital investment; local and global political and economic conditions; consumer spending patterns and changes in market trends; decreases in customer demand; delayed or unsuccessful product development efforts; potential product recalls; working capital management; availability and pricing of raw materials and supplies; potential covenant breaches under the Company’s 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. The Company undertakes no obligation to publicly correct or update the forward-looking statements in this document, in other documents, or on its website to reflect future events or circumstances, except as may be required under applicable securities laws.
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Consolidated Statements of Operations |
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For the quarters and years ended |
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(Unaudited) |
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(All dollar amounts expressed in thousands of |
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Quarter ended |
Year ended |
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2022 |
2022(1) |
2022 |
2022(1) |
||||
|
$ |
$ |
$ |
$ |
||||
|
|
|
|
|
||||
Revenues |
221,293 |
|
204,232 |
|
934,662 |
|
812,624 |
|
|
|
|
|
|
||||
Cost of goods sold |
193,076 |
|
186,193 |
|
811,808 |
|
714,904 |
|
|
|
|
|
|
||||
Gross profit |
28,217 |
|
18,039 |
|
122,854 |
|
97,720 |
|
|
|
|
|
|
||||
Selling, general and administrative expenses |
22,144 |
|
16,518 |
|
89,312 |
|
76,599 |
|
Intangible asset amortization |
2,446 |
|
2,612 |
|
10,282 |
|
9,950 |
|
Other expense, net |
105 |
|
1,442 |
|
22,132 |
|
8,890 |
|
Foreign exchange loss (gain) |
(1,622 |
) |
579 |
|
(1,748 |
) |
1,112 |
|
|
|
|
|
|
||||
Earnings (loss) from continuing operations before the following |
5,144 |
|
(3,112 |
) |
2,876 |
|
1,169 |
|
|
|
|
|
|
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Interest expense, net |
4,730 |
|
2,624 |
|
14,734 |
|
8,769 |
|
|
|
|
|
|
||||
Earnings (loss) from continuing operations before income taxes |
414 |
|
(5,736 |
) |
(11,858 |
) |
(7,600 |
) |
|
|
|
|
|
||||
Income tax expense (benefit) |
1,285 |
|
342 |
|
(2,340 |
) |
(6,428 |
) |
|
|
|
|
|
||||
Loss from continuing operations |
(871 |
) |
(6,078 |
) |
(9,518 |
) |
(1,172 |
) |
Earnings from discontinued operations |
1,925 |
|
- |
|
4,677 |
|
- |
|
Net earnings (loss) |
1,054 |
|
(6,078 |
) |
(4,841 |
) |
(1,172 |
) |
|
|
|
|
|
||||
Dividends and accretion on preferred stock |
(830 |
) |
(752 |
) |
(3,109 |
) |
(4,197 |
) |
|
|
|
|
|
||||
Earnings (loss) attributable to common shareholders |
224 |
|
(6,830 |
) |
(7,950 |
) |
(5,369 |
) |
|
|
|
|
|
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Basic and diluted earnings (loss) per share |
|
|
|
|
||||
Loss from continuing operations |
(0.02 |
) |
(0.06 |
) |
(0.12 |
) |
(0.05 |
) |
Earnings from discontinued operations |
0.02 |
|
- |
|
0.04 |
|
- |
|
Earnings (loss) attributable to common shareholders(2) |
0.00 |
|
(0.06 |
) |
(0.07 |
) |
(0.05 |
) |
|
|
|
|
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Weighted-average common shares outstanding (000s) |
|
|
|
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||||
Basic |
107,861 |
|
107,341 |
|
107,659 |
|
104,098 |
|
Diluted |
107,861 |
|
107,341 |
|
107,659 |
|
104,098 |
|
|
|
|
|
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(1) Revised from amounts previously filed to adjust for prior period errors. More information is included in our Form 10-K. |
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(2) The sum of individual per share amounts may not add due to rounding. |
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Consolidated Balance Sheets |
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As at |
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(Unaudited) |
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(All dollar amounts expressed in thousands of |
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$ |
$ |
||
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ASSETS |
|
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Current assets |
|
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||
Cash and cash equivalents |
679 |
|
227 |
|
Accounts receivable |
74,903 |
|
84,702 |
|
Inventories |
207,047 |
|
219,778 |
|
Prepaid expenses and other current assets |
15,688 |
|
16,638 |
|
Income taxes recoverable |
4,040 |
|
8,259 |
|
Total current assets |
302,357 |
|
329,604 |
|
|
|
|
||
Property, plant and equipment, net |
322,391 |
|
219,537 |
|
Operating lease right-of-use assets |
82,564 |
|
47,245 |
|
Intangible assets, net |
135,646 |
|
148,440 |
|
|
3,998 |
|
3,998 |
|
Deferred income taxes |
3,712 |
|
- |
|
Other assets |
5,184 |
|
5,930 |
|
|
|
|
||
Total assets |
855,852 |
|
754,754 |
|
|
|
|
||
LIABILITIES |
|
|
||
Current liabilities |
|
|
||
Accounts payable and accrued liabilities |
108,511 |
|
121,155 |
|
Income taxes payable |
957 |
|
- |
|
Current portion of long-term debt |
38,491 |
|
9,760 |
|
Current portion of operating lease liabilities |
13,074 |
|
12,203 |
|
Total current liabilities |
161,033 |
|
143,118 |
|
|
|
|
||
Long-term debt |
269,993 |
|
214,843 |
|
Operating lease liabilities |
77,557 |
|
39,028 |
|
Long-term liabilities |
- |
|
2,241 |
|
Deferred income taxes |
- |
|
14,051 |
|
Total liabilities |
508,583 |
|
413,281 |
|
|
|
|
||
Series B-1 preferred stock |
28,062 |
|
28,145 |
|
|
|
|
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SHAREHOLDERS' EQUITY |
|
|
||
Common shares |
440,348 |
|
436,463 |
|
Additional paid-in capital |
33,184 |
|
23,240 |
|
Accumulated deficit |
(155,688 |
) |
(147,738 |
) |
Accumulated other comprehensive income |
1,363 |
|
1,363 |
|
Total shareholders' equity |
319,207 |
|
313,328 |
|
|
|
|
||
Total liabilities and shareholders' equity |
855,852 |
|
754,754 |
|
|
|
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||
(1) Revised from amounts previously filed to adjust for prior period errors. More information is included in our Form 10-K. |
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Consolidated Statements of Cash Flows |
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For the quarters and years ended |
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(Unaudited) |
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(Expressed in thousands of |
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Quarter ended |
Year ended |
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2022 |
2022(1) |
2022 |
2022(1) |
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$ |
$ |
$ |
$ |
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CASH PROVIDED BY (USED IN) |
|
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|
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Operating activities |
|
|
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|
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Net earnings (loss) |
1,054 |
|
(6,078 |
) |
(4,841 |
) |
(1,172 |
) |
||
Earnings from discontinued operations |
1,925 |
|
- |
|
4,677 |
|
- |
|
||
Loss from continuing operations |
(871 |
) |
(6,078 |
) |
(9,518 |
) |
(1,172 |
) |
||
Items not affecting cash: |
|
|
|
|
||||||
Depreciation and amortization |
9,158 |
|
8,851 |
|
37,673 |
|
34,641 |
|
||
Amortization of debt issuance costs |
417 |
|
360 |
|
1,601 |
|
1,353 |
|
||
Deferred income taxes |
(3,188 |
) |
1,380 |
|
(4,655 |
) |
(5,985 |
) |
||
Stock-based compensation |
4,139 |
|
(493 |
) |
13,830 |
|
9,100 |
|
||
Loss on sale of sunflower business |
- |
|
- |
|
23,227 |
|
- |
|
||
Gain on sale of frozen fruit processing facility |
- |
|
- |
|
(3,779 |
) |
- |
|
||
Impairment of long-lived assets |
- |
|
244 |
|
- |
|
3,206 |
|
||
Other |
2,004 |
|
1,594 |
|
3,600 |
|
1,090 |
|
||
Changes in operating assets and liabilities, net of sunflower business |
15,854 |
|
13,807 |
|
(1,404 |
) |
(63,665 |
) |
||
Net cash provided by (used in) operating activities of continuing operations |
27,513 |
|
19,665 |
|
60,575 |
|
(21,432 |
) |
||
Investing activities |
|
|
|
|
||||||
Additions to property, plant and equipment |
(27,847 |
) |
(23,308 |
) |
(128,626 |
) |
(58,297 |
) |
||
Proceeds from sale of property, plant and equipment |
- |
|
- |
|
20,293 |
|
2,300 |
|
||
Net proceeds from sale of sunflower business |
7,833 |
|
- |
|
7,833 |
|
- |
|
||
Additions to intangible assets |
- |
|
- |
|
- |
|
(25,073 |
) |
||
Net cash used in investing activities of continuing operations |
(20,014 |
) |
(23,308 |
) |
(100,500 |
) |
(81,070 |
) |
||
Net cash used in investing activities of discontinued operations |
- |
|
- |
|
(6,324 |
) |
(13,380 |
) |
||
Net cash used in investing activities |
(20,014 |
) |
(23,308 |
) |
(106,824 |
) |
(94,450 |
) |
||
Financing activities |
|
|
|
|
||||||
Increase (decrease) in borrowings under revolving credit facilities |
(16,336 |
) |
(17,161 |
) |
(19,821 |
) |
106,016 |
|
||
Borrowings of long-term debt |
16,710 |
|
23,420 |
|
90,907 |
|
32,800 |
|
||
Repayment of long-term debt, including premium paid |
(6,623 |
) |
(1,882 |
) |
(20,457 |
) |
(13,671 |
) |
||
Payment of debt issuance costs |
(63 |
) |
(9 |
) |
(735 |
) |
(2,561 |
) |
||
Proceeds from the exercise of stock options and employee share purchases |
425 |
|
232 |
|
1,628 |
|
7,726 |
|
||
Payment of withholding taxes on stock-based awards |
(27 |
) |
(405 |
) |
(1,629 |
) |
(8,718 |
) |
||
Payment of cash dividends on preferred stock |
(609 |
) |
(609 |
) |
(2,436 |
) |
(5,247 |
) |
||
Payment of preferred stock issuance costs |
(756 |
) |
- |
|
(756 |
) |
- |
|
||
Payment of share issuance costs |
- |
|
- |
|
- |
|
(287 |
) |
||
Net cash provided by (used in) financing activities of continuing operations |
(7,279 |
) |
3,586 |
|
46,701 |
|
116,058 |
|
||
Net cash used in financing activities of discontinued operations |
- |
|
- |
|
- |
|
(200 |
) |
||
Net cash provided by (used in) financing activities |
(7,279 |
) |
3,586 |
|
46,701 |
|
115,858 |
|
||
Increase (decrease) in cash and cash equivalents in the period |
220 |
|
(57 |
) |
452 |
|
(24 |
) |
||
Cash and cash equivalent, beginning of the period |
459 |
|
284 |
|
227 |
|
251 |
|
||
Cash and cash equivalents, end of the period |
679 |
|
227 |
|
679 |
|
227 |
|
||
|
|
|
|
|
|
|
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(1) Revised from amounts previously filed to adjust for prior period errors. More information is included in our Form 10-K. |
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Segmented Information |
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|
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For the quarters and years ended |
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Unaudited |
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|
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(Expressed in thousands of |
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|
Quarter ended |
Year ended |
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|
2022 |
2022(1) |
2022 |
2022(1) |
||||
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|
$ |
$ |
$ |
$ |
||||
Segment revenues from external customers: |
|
|
|
|
|||||
|
138,587 |
|
125,074 |
|
557,736 |
|
470,754 |
|
|
|
82,706 |
|
79,158 |
|
376,926 |
|
341,870 |
|
|
Total segment revenues from external customers |
221,293 |
|
204,232 |
|
934,662 |
|
812,624 |
|
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Segment gross profit: |
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|
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|
20,772 |
|
14,220 |
|
85,163 |
|
75,971 |
|
|
|
7,445 |
|
3,819 |
|
37,691 |
|
21,749 |
|
|
Total segment gross profit |
28,217 |
|
18,039 |
|
122,854 |
|
97,720 |
|
|
|
|
|
|
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Segment operating income (loss): |
|
|
|
|
|||||
|
9,020 |
|
6,602 |
|
38,491 |
|
36,616 |
|
|
|
54 |
|
(2,462 |
) |
6,919 |
|
(9,320 |
) |
|
Corporate Services |
(3,825 |
) |
(5,810 |
) |
(20,402 |
) |
(17,237 |
) |
|
Total segment operating income (loss) |
5,249 |
|
(1,670 |
) |
25,008 |
|
10,059 |
|
|
|
|
|
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Segment gross profit percentage: |
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|
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|
15.0 |
% |
11.4 |
% |
15.3 |
% |
16.1 |
% |
|
|
9.0 |
% |
4.8 |
% |
10.0 |
% |
6.4 |
% |
|
Total segment gross profit percentage |
12.8 |
% |
8.8 |
% |
13.1 |
% |
12.0 |
% |
|
|
|
|
|
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|
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Segment operating income (loss) percentage: |
|
|
|
|
|||||
|
6.5 |
% |
5.3 |
% |
6.9 |
% |
7.8 |
% |
|
|
0.1 |
% |
-3.1 |
% |
1.8 |
% |
-2.7 |
% |
|
Total segment operating income (loss) percentage |
2.4 |
% |
-0.8 |
% |
2.7 |
% |
1.2 |
% |
|
|
|
|
|
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|
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(1) Revised from amounts previously filed to adjust for prior period errors. More information is included in our Form 10-K. |
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Non-GAAP Measures
In addition to reporting financial results in accordance with
In order to evaluate its results of operations, the Company uses certain other non-GAAP measures that it believes enhance an investor’s ability to derive meaningful period-over-period comparisons and trends from the results of operations. In particular, the Company excludes specific items from its reported results that due to their nature or size, it does not expect to occur as part of its normal business on a regular basis. These items are identified in the tables below. These non-GAAP measures are presented solely to allow investors to more fully assess the Company’s results of operations and should not be considered in isolation of, or as substitutes for, an analysis of the Company’s results as reported under
Adjusted Earnings (Loss)
When assessing its financial performance, the Company uses an internal measure that excludes charges and gains that it believes are not reflective of normal operations. This information is provided to allow investors to make meaningful comparisons of the Company’s operating performance between periods and to view the Company’s business from the same perspective as the Company’s management. Adjusted earnings (loss) and adjusted earnings (loss) per diluted share should not be considered in isolation or as a substitute for performance measures calculated in accordance with
The following is a tabular presentation of adjusted earnings (loss) and adjusted earnings (loss) per diluted share, including a reconciliation from loss from continuing operations, which the Company believes to be the most directly comparable
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Per Share |
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Per Share |
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For the quarters ended |
$ |
$ |
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$ |
$ |
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Loss from continuing operations |
(871 |
) |
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(6,078 |
) |
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Dividends and accretion on preferred stock |
(830 |
) |
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(752 |
) |
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Loss from continuing operations attributable to common shareholders |
(1,701 |
) |
(0.02 |
) |
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(6,830 |
) |
(0.06 |
) |
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Adjusted for: |
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Start-up costs(a) |
4,699 |
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|
745 |
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Business development costs(b) |
296 |
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2,641 |
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Facility closure costs(c) |
- |
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1,063 |
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Costs related to exit from fruit ingredient processing facility(d) |
- |
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902 |
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Other(e) |
105 |
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(26 |
) |
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Net income tax effect(f) |
(1,341 |
) |
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(3,686 |
) |
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Adjusted earnings (loss) |
2,058 |
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0.02 |
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(5,191 |
) |
(0.05 |
) |
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(1) Revised from amounts previously filed to adjust for prior period errors. More information is included in our Form 10-K. |
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| (a) |
For the fourth quarter of 2022, start-up costs related to our new plant-based beverage facility in |
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| (b) |
Represents third-party costs associated with business development activities, including costs related to the evaluation, execution, and integration of external acquisitions and divestitures, internal expansion projects, and other strategic initiatives. For the fourth quarter of 2022, these costs related to actions undertaken to optimize non-core assets, which were recorded in SG&A expenses. For the fourth quarter of 2021, these costs were mainly related to the integration of the Dream and West Life brands and the exploration of other potential strategic opportunities, which were recorded in cost of goods sold ( |
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| (c) |
For the fourth quarter of 2021, mainly reflects costs related to the relocation of our executive office and innovation center into |
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| (d) |
For the fourth quarter of 2021, reflects closure costs related to the exit from our fruit ingredient processing facility, including inventory write-offs of |
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| (e) | For the fourth quarter of 2022, other mainly reflects losses on the disposal of assets, which were recorded in other expense. |
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| (f) | For the fourth quarter of 2022 and 2021, reflects the tax effect of the preceding adjustments to earnings calculated based on the statutory tax rates applicable in the tax jurisdiction of the underlying adjustment. |
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Per Share |
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Per Share |
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For the years ended |
$ |
$ |
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$ |
$ |
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Loss from continuing operations |
(9,518 |
) |
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(1,172 |
) |
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Dividends and accretion on preferred stock |
(3,109 |
) |
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(4,197 |
) |
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Loss from continuing operations attributable to common shareholders |
(12,627 |
) |
(0.12 |
) |
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(5,369 |
) |
(0.05 |
) |
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Adjusted for: |
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Loss on sale of sunflower business(a) |
23,227 |
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- |
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Gain on sale of frozen fruit processing facility(b) |
(3,779 |
) |
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- |
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Start-up costs(c) |
6,028 |
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745 |
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Facility closure costs(d) |
1,812 |
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1,063 |
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Business development costs(e) |
1,170 |
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6,209 |
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Costs related to exit from fruit ingredient processing facility(f) |
- |
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5,504 |
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Restructuring costs(g) |
- |
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1,432 |
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Workforce reduction charges(h) |
- |
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|
499 |
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Other(i) |
872 |
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261 |
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Net income tax effect(j) |
(7,711 |
) |
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(5,827 |
) |
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Adjusted earnings |
8,992 |
|
0.08 |
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4,517 |
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0.04 |
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(1) Revised from amounts previously filed to adjust for prior period errors. More information is included in our Form 10-K. |
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| (a) | Reflects the loss on sale of the sunflower business, which was recorded in other expense. |
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| (b) |
Reflects the gain on sale of our frozen fruit processing facility located in |
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| (c) |
For 2022, start-up costs mainly related to our new plant-based beverage facility in |
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| (d) |
For 2022, facility closure costs mainly related to the relocation of certain equipment from our sold |
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| (e) |
Represents third-party costs associated with business development activities, including costs related to the evaluation, execution, and integration of external acquisitions and divestitures, internal expansion projects, and other strategic initiatives. For 2022, these costs related to actions undertaken to optimize non-core assets, including the sale of the sunflower business, as well as costs related to our inaugural Investor Day held in |
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| (f) |
For 2021, represents asset impairment charges of |
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| (g) |
For 2021, represents costs to complete the exit from our former |
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| (h) | For 2021, represents employee termination costs related to workforce reduction actions in our frozen fruit operations, which were recorded in other expense. |
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| (i) | For 2022 and 2021, other mainly reflects the settlement of certain legal, tax, and contractual matters, together with losses on the disposal of assets, which were recorded in other expense. |
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| (j) | For 2022 and 2021, reflects the tax effect of the preceding adjustments to earnings calculated based on the statutory tax rates applicable in the tax jurisdiction of the underlying adjustment. |
Segment Operating Income (Loss) and Adjusted EBITDA
The Company defines segment operating income (loss) as loss from continuing operations before income taxes, interest expense and other income/expense items, and adjusted EBITDA as segment operating income (loss) plus depreciation, amortization, stock-based compensation, and other unusual items that affect the comparability of operating performance as identified above in the determination of adjusted earnings (loss). The following is a tabular presentation of segment operating income (loss) and adjusted EBITDA, including a reconciliation from loss from continuing operations, which the Company believes to be the most directly comparable
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For the quarters ended |
$ |
|
$ |
||||
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Loss from continuing operations |
(871 |
) |
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(6,078 |
) |
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Income tax expense |
1,285 |
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|
342 |
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Interest expense, net |
4,730 |
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2,624 |
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Other expense, net |
105 |
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1,442 |
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Total segment operating income (loss) |
5,249 |
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(1,670 |
) |
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Depreciation and amortization |
9,158 |
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|
8,851 |
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Stock-based compensation |
4,139 |
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(493 |
) |
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Start-up costs(a) |
4,699 |
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|
745 |
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Business development costs(b) |
296 |
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|
2,566 |
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Costs related to exit from fruit ingredient processing facility(c) |
- |
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|
572 |
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Adjusted EBITDA |
23,541 |
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|
10,571 |
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(1) Revised from amounts previously filed to adjust for prior period errors. More information is included in our Form 10-K. |
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| (a) |
For the fourth quarter of 2022, start-up costs related to our new plant-based beverage facility in |
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| (b) |
For the fourth quarter of 2022, business development costs related to actions undertaken to optimize non-core assets, which were recorded in SG&A expenses. For the fourth quarter of 2021, these costs related to the integration of the Dream and West Life brands, and the exploration of other potential strategic opportunities, which were recorded in cost of goods sold ( |
|
| (c) | For the fourth quarter of 2021, reflects inventory write-offs related to the exit from our fruit ingredient processing facility, which were recorded in cost of goods sold. |
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For the years ended |
$ |
|
$ |
||||
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Loss from continuing operations |
(9,518 |
) |
|
(1,172 |
) |
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Income tax benefit |
(2,340 |
) |
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(6,428 |
) |
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Interest expense, net |
14,734 |
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|
8,769 |
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Other expense, net |
22,132 |
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|
8,890 |
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Total segment operating income |
25,008 |
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|
10,059 |
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|
Depreciation and amortization |
37,673 |
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|
34,641 |
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|
Stock-based compensation |
13,830 |
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|
9,100 |
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||
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Start-up costs(a) |
6,028 |
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|
745 |
|
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Business development costs(b) |
1,170 |
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|
5,506 |
|
||
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Costs related to exit from fruit ingredient processing facility(c) |
- |
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|
572 |
|
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|
Adjusted EBITDA |
83,709 |
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|
60,623 |
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(1) Revised from amounts previously filed to adjust for prior period errors. More information is included in our Form 10-K. |
|||||||
| (a) |
For 2022, start-up costs mainly related to our new plant-based beverage facility in |
|
| (b) |
For 2022, business development costs related to actions undertaken to optimize non-core assets, including the sale of the sunflower business, as well as costs related to our inaugural Investor Day, which were recorded in SG&A expenses. For 2021, these costs mainly related to the integration of the Dream and West Life brands and project development activities related to our new plant in |
|
| (c) | For 2021, reflects inventory write-offs related to the exit from our fruit ingredient processing facility, which were recorded in cost of goods sold. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20230301005490/en/
Investor Relations:
ICR
646-277-1260
reed.anderson@icrinc.com
Media Relations:
213-988-8344
sunopta@konnectagency.com
Source:
FAQ
What were SunOpta's 4Q 2022 earnings results?
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What is SunOpta's revenue outlook for 2023?
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