SunOpta Announces Second Quarter Fiscal 2024 Financial Results
SunOpta Inc. (Nasdaq:STKL) (TSX:SOY) reported strong Q2 2024 financial results, with revenue from continuing operations increasing 21% to $171 million, driven by 26.9% volume growth. The company experienced a loss from continuing operations of $3.8 million, an improvement from $11.7 million loss in the prior year. Adjusted EBITDA from continuing operations increased 12% to $20.6 million.
Key highlights include:
- Gross profit increased 17.3% to $21.8 million
- Adjusted earnings from continuing operations was $2.8 million
- Operating income improved to $2.6 million
SunOpta raised its 2024 revenue outlook to $710-730 million, expecting 13-16% growth. The company maintains its adjusted EBITDA guidance at $88-92 million, projecting 12-17% growth.
SunOpta Inc. (Nasdaq:STKL) (TSX:SOY) ha riportato risultati finanziari forti per il secondo trimestre 2024, con un aumento del fatturato delle operazioni continuative del 21%, arrivando a 171 milioni di dollari, grazie a una crescita del volume del 26,9%. L'azienda ha registrato una perdita dalle operazioni continuative di 3,8 milioni di dollari, un miglioramento rispetto alla perdita di 11,7 milioni dello scorso anno. L'EBITDA rettificato dalle operazioni continuative è aumentato del 12%, raggiungendo 20,6 milioni di dollari.
Le principali evidenze includono:
- Il profitto lordo è aumentato del 17,3% a 21,8 milioni di dollari
- Gli utili rettificati dalle operazioni continuative ammontano a 2,8 milioni di dollari
- L'utile operativo è migliorato a 2,6 milioni di dollari
SunOpta ha innalzato le previsioni di fatturato per il 2024 a 710-730 milioni di dollari, prevedendo una crescita del 13-16%. L'azienda mantiene la sua guida sull'EBITDA rettificato a 88-92 milioni di dollari, proiettando una crescita del 12-17%.
SunOpta Inc. (Nasdaq:STKL) (TSX:SOY) reportó resultados financieros fuertes para el segundo trimestre de 2024, con ingresos de operaciones continuas que aumentaron un 21%, alcanzando 171 millones de dólares, impulsados por un crecimiento del volumen del 26,9%. La empresa experimentó una pérdida en operaciones continuas de 3,8 millones de dólares, una mejora con respecto a la pérdida de 11,7 millones del año anterior. El EBITDA ajustado de operaciones continuas aumentó un 12% a 20,6 millones de dólares.
Los aspectos destacados incluyen:
- El beneficio bruto aumentó un 17,3% a 21,8 millones de dólares
- Las ganancias ajustadas de operaciones continuas fueron de 2,8 millones de dólares
- El ingreso operativo mejoró a 2,6 millones de dólares
SunOpta elevó su pronóstico de ingresos para 2024 a 710-730 millones de dólares, esperando un crecimiento del 13-16%. La empresa mantiene su guía de EBITDA ajustado en 88-92 millones de dólares, proyectando un crecimiento del 12-17%.
SunOpta Inc. (Nasdaq:STKL) (TSX:SOY)는 2024년 2분기 강력한 재무 결과를 보고했습니다. 지속적인 운영에서의 수익이 21% 증가하여 1억 7,100만 달러에 도달했으며, 이는 26.9%의 물량 증가로 인해 발생했습니다. 회사는 지속적인 운영에서 3.8백만 달러의 손실을 경험했으며, 이는 작년의 11.7백만 달러 손실에 비해 개선된 수치입니다. 조정 EBITDA는 지속적인 운영에서 12% 증가하여 2,060만 달러에 도달했습니다.
주요 하이라이트는 다음과 같습니다:
- 총 이익은 17.3% 증가하여 2,180만 달러에 달했습니다.
- 지속적인 운영에서의 조정된 수익은 280만 달러였습니다.
- 운영 소득은 260만 달러로 개선되었습니다.
SunOpta는 2024년 수익 전망을 7억 1천만 - 7억 3천만 달러로 높였으며, 13-16%의 성장을 예상하고 있습니다. 회사는 조정 EBITDA 가이드를 8,800만 - 9,200만 달러로 유지하며, 12-17%의 성장을 예상합니다.
SunOpta Inc. (Nasdaq:STKL) (TSX:SOY) a annoncé des résultats financiers solides pour le deuxième trimestre 2024, avec des revenus provenant des activités poursuivies augmentant de 21% pour atteindre 171 millions de dollars, soutenus par une croissance du volume de 26,9%. L'entreprise a enregistré une perte des activités poursuivies de 3,8 millions de dollars, une amélioration par rapport à une perte de 11,7 millions l'année précédente. Le EBITDA ajusté des activités poursuivies a augmenté de 12% pour atteindre 20,6 millions de dollars.
Les faits marquants incluent:
- Le bénéfice brut a augmenté de 17,3% pour atteindre 21,8 millions de dollars
- Les bénéfices ajustés des activités poursuivies s'élevaient à 2,8 millions de dollars
- Le résultat d'exploitation s'est amélioré à 2,6 millions de dollars
SunOpta a relevé ses prévisions de revenus pour 2024 à 710-730 millions de dollars, anticipant une croissance de 13-16%. L'entreprise maintient son objectif d'EBITDA ajusté à 88-92 millions de dollars, projetant une croissance de 12-17%.
SunOpta Inc. (Nasdaq:STKL) (TSX:SOY) meldete starke Finanzdaten für das zweite Quartal 2024, mit einem Umsatz aus fortgeführten Geschäftsbereichen, der um 21% auf 171 Millionen US-Dollar anstieg, was durch ein Volumenwachstum von 26,9% unterstützt wurde. Das Unternehmen verzeichnete einen Verlust aus fortgeführten Geschäftstätigkeiten von 3,8 Millionen US-Dollar, was eine Verbesserung von einem Verlust von 11,7 Millionen im Vorjahr darstellt. Das bereinigte EBITDA aus fortgeführten Geschäftsbereichen stieg um 12% auf 20,6 Millionen US-Dollar.
Zu den wichtigsten Highlights gehören:
- Der Bruttogewinn stieg um 17,3% auf 21,8 Millionen US-Dollar
- Die bereinigten Erträge aus fortgeführten Geschäftstätigkeiten lagen bei 2,8 Millionen US-Dollar
- Ergebnis vor Zinsen und Steuern (EBIT) hat sich auf 2,6 Millionen US-Dollar verbessert
SunOpta hat seine Umsatzprognose für 2024 auf 710-730 Millionen US-Dollar angehoben und rechnet mit einem Wachstum von 13-16%. Das Unternehmen hält an seiner Prognose für das bereinigte EBITDA von 88-92 Millionen US-Dollar fest und erwartet ein Wachstum von 12-17%.
- Revenue increased 21.1% to $171.0 million, driven by 26.9% volume growth
- Adjusted EBITDA from continuing operations increased 11.9% to $20.6 million
- Gross profit increased by 17.3% to $21.8 million
- Operating income improved to $2.6 million, or 1.5% of revenue
- Adjusted earnings from continuing operations increased to $2.8 million
- Company raised 2024 revenue outlook to $710-730 million, expecting 13-16% growth
- Loss from continuing operations of $3.8 million
- Adjusted gross margin decreased by 110 basis points to 16.2%
- Cash provided in operating activities decreased to $2.0 million from $17.5 million in the prior year
- Total debt increased to $303.1 million from $263.2 million at year-end fiscal 2023
Insights
SunOpta's Q2 2024 results show strong revenue growth of
The company's adjusted EBITDA grew by
Investors should monitor the company's ability to improve manufacturing efficiency and manage costs as it scales operations to meet growing demand. The strong revenue growth and pipeline indicate positive long-term potential, but short-term profitability may be challenged as the company invests in its supply chain.
SunOpta's Q2 results highlight both strengths and challenges in their supply chain management. The 26.9% volume growth demonstrates the company's ability to significantly ramp up production to meet demand. However, the mention of "manufacturing inefficiencies" and need for "short-term investments in the supply chain" indicates potential bottlenecks or capacity constraints.
The company's focus on "operational initiatives aimed at sustainable supply chain effectiveness and efficiency" is crucial. As they scale, optimizing production processes and investing in automation could help improve margins. The completion of major capital projects, including the new plant-based beverage facility in Midlothian, Texas, should contribute to increased capacity and efficiency in the coming quarters.
Investors should watch for improvements in gross margin as these supply chain initiatives take effect, which will be key to translating the strong revenue growth into enhanced profitability.
SunOpta's Q2 performance reflects strong market demand across various product categories. The volume growth of 26.9% indicates robust consumer interest in their plant-based and fruit-based offerings. Notably, growth was seen in teas, protein shakes, broths, plant-based beverages and fruit snacks, suggesting a diversified product portfolio that's resonating with health-conscious consumers.
The company's exit from the smoothie bowls category in March 2024 shows a strategic focus on higher-growth areas. The raised revenue outlook for 2024 implies continued strong market demand and potential market share gains. However, the 3.9% price reduction due to pass-through of commodity costs highlights the importance of managing raw material prices in this industry.
Looking ahead, SunOpta's position as an "innovative and sustainable manufacturer fueling the future of food" aligns well with current consumer trends towards healthier, plant-based options. Their ability to capitalize on these trends while managing costs will be important for long-term success in the competitive food manufacturing sector.
Revenue from continuing operations increased
Loss from continuing operations of
Adjusted EBITDA from continuing operations increased
Raising 2024 revenue outlook
All amounts are expressed in
Second Quarter 2024 highlights:
-
Revenues of
$171.0 million 21.1% compared to$141.2 million 26.9% volume growth partially offset by a3.9% price reduction for pass-through commodity pricing -
Gross profit of
$21.8 million 17.3% compared to$18.6 million -
Loss from continuing operations was
$3.8 million $11.7 million -
Adjusted earnings¹ from continuing operations was
$2.8 million $1.1 million -
Adjusted EBITDA¹ from continuing operations increased
11.9% to$20.6 million $18.4 million
“We delivered another quarter of outstanding growth, reflecting strong underlying demand and solid execution on operational initiatives aimed at sustainable supply chain effectiveness and efficiency,” said Brian Kocher, Chief Executive Officer of SunOpta. “Revenue growth continues to be demand driven and broad based across customers and channels. Our supply chain supported a significant increase in output and simultaneously highlighted areas where investment is required to deliver sustainable gross margin expansion in the future. We are increasing our revenue outlook for 2024, and maintaining our adjusted EBITDA guidance to reflect short-term investments in the supply chain. Given the depth of our pipeline, operational and supply chain initiatives currently underway, and strength of our overall competitive position, we continue to have a high degree of confidence in the longer-term trajectory of our business and our ability to deliver significant value to shareholders.”
Second Quarter 2024 Results
Revenues increased
Gross profit increased by
Operating income¹ was
Loss from continuing operations was
Adjusted earnings¹ from continuing operations was
Adjusted EBITDA¹ from continuing operations was
Please refer to the discussion and table below under “Non-GAAP Measures”.
Balance Sheet and Cash Flow
As of June 29, 2024, SunOpta had total assets of
2024 Outlook2
For fiscal 2024, the Company is raising its revenue outlook and continues to expect strong growth in revenue and adjusted EBITDA:
($ millions) |
Prior Outlook |
Revised Outlook |
|
Revenue |
|
710 - 730 |
|
Adj. EBITDA |
|
88 - 92 |
|
Revenue growth |
|
|
|
Adj. EBITDA growth |
|
|
Conference Call
SunOpta plans to host a conference call at 5:30 P.M. Eastern time on Wednesday, August 7, 2024, to discuss the first quarter financial results. After prepared remarks, there will be a question and answer period. Investors interested in listening to the live webcast can access a link on SunOpta’s website at www.sunopta.com under the “Investor Relations” section or directly. A replay of the webcast will be archived and can be accessed for approximately 90 days on the Company’s website.
This call may be accessed with the toll free dial-in number (888) 440-4182 or international dial-in number (646) 960-0653 using Conference ID: 8338433.
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 SunOpta Inc.
SunOpta (Nasdaq:STKL) (TSX:SOY) is an innovative and sustainable manufacturer fueling the future of food. With roots tracing back over 50 years, SunOpta drives growth for today’s leading brands by serving as a trusted innovation partner and value-added manufacturer, crafting organic, plant-based beverages, fruit snacks, nutritional beverages, broths and tea products sold through retail, club, foodservice and e-commerce channels. Alongside the company’s commitment to top brands, retailers and coffee shops, SunOpta also proudly produces its own brands, including Sown®, Dream®, and West LifeTM. For more information, visit www.sunopta.com and LinkedIn.
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 deliver significant long-term sustainable growth and value for shareholders, our continued confidence in the longer-term trajectory of our business and ability to deliver significant value to shareholders, our expectation for strong growth in revenue and Adjusted EBITDA for fiscal 2024 and our revised outlook for Revenue, Adjusted EBITDA , Revenue growth and Adjusted EBITDA growth for fiscal 2024. Generally, forward-looking statements do not relate strictly to historical or current facts and are typically accompanied by words such as “expect”, “believe”, “anticipate”, “estimates”, “can”, “will”, “target”, "should", "would", "plans", “continue”, "becoming", "intend", "confident", "may", "project", "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; our exit from, and use of proceeds from the divestiture of the assets and liabilities of, Frozen Fruit, uninterrupted operations and service levels to our customers; current customer demand for the Company’s products; 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; procurement and logistics savings; freight lane cost reductions; yield and throughput enhancements; the cost of the frozen fruit recall; labor cost reductions; and the terms of our insurance policies. 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 the possibility of 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; potential additional costs associated with the frozen fruit recall; 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.
SunOpta Inc. |
||||||||
Consolidated Statements of Operations |
||||||||
For the quarters and two quarters ended June 29, 2024 and July 1, 2023 |
||||||||
(Unaudited) |
||||||||
(All dollar amounts expressed in thousands of |
||||||||
|
|
|
|
|
||||
|
Quarter ended |
Two quarters ended |
||||||
|
June 29, 2024 |
July 1, 2023 |
June 29, 2024 |
July 1, 2023 |
||||
|
$ |
$ |
$ |
$ |
||||
|
|
|
|
|
||||
Revenues |
170,995 |
|
141,163 |
|
353,843 |
|
296,132 |
|
|
|
|
|
|
||||
Cost of goods sold |
149,147 |
|
122,534 |
|
300,248 |
|
253,424 |
|
|
|
|
|
|
||||
Gross profit |
21,848 |
|
18,629 |
|
53,595 |
|
42,708 |
|
|
|
|
|
|
||||
Selling, general and administrative expenses |
17,784 |
|
16,957 |
|
40,772 |
|
40,026 |
|
Intangible asset amortization |
446 |
|
446 |
|
892 |
|
892 |
|
Other income, net |
(304 |
) |
(62 |
) |
(2,104 |
) |
(20 |
) |
Foreign exchange loss |
1,310 |
|
92 |
|
1,259 |
|
81 |
|
|
|
|
|
|
||||
Operating income |
2,612 |
|
1,196 |
|
12,776 |
|
1,729 |
|
|
|
|
|
|
||||
Interest expense, net |
6,410 |
|
6,565 |
|
12,460 |
|
12,229 |
|
|
|
|
|
|
||||
Earnings (loss) from continuing operations before income taxes |
(3,798 |
) |
(5,369 |
) |
316 |
|
(10,500 |
) |
|
|
|
|
|
||||
Income tax expense (benefit) |
(17 |
) |
6,282 |
|
260 |
|
3,978 |
|
|
|
|
|
|
||||
Earnings (loss) from continuing operations |
(3,781 |
) |
(11,651 |
) |
56 |
|
(14,478 |
) |
Net loss from discontinued operations |
(897 |
) |
(7,187 |
) |
(2,314 |
) |
(2,983 |
) |
Net loss |
(4,678 |
) |
(18,838 |
) |
(2,258 |
) |
(17,461 |
) |
|
|
|
|
|
||||
Dividends and accretion on preferred stock |
169 |
|
(422 |
) |
(264 |
) |
(1,126 |
) |
|
|
|
|
|
||||
Loss attributable to common shareholders |
(4,509 |
) |
(19,260 |
) |
(2,522 |
) |
(18,587 |
) |
|
|
|
|
|
||||
Basic and diluted loss per share |
|
|
|
|
||||
Loss from continuing operations attributable to common shareholders |
(0.03 |
) |
(0.10 |
) |
(0.00 |
) |
(0.14 |
) |
Loss from discontinued operations |
(0.01 |
) |
(0.06 |
) |
(0.02 |
) |
(0.03 |
) |
Loss attributable to common shareholders(1) |
(0.04 |
) |
(0.17 |
) |
(0.02 |
) |
(0.16 |
) |
|
|
|
|
|
||||
Weighted-average common shares outstanding (000s) |
|
|
|
|
||||
Basic |
116,640 |
|
115,471 |
|
116,336 |
|
112,743 |
|
Diluted |
116,640 |
|
115,471 |
|
116,336 |
|
112,743 |
|
|
|
|
|
|
||||
(1) The sum of the individual per share amounts may not add due to rounding. |
|
|
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SunOpta Inc. |
||||
Consolidated Balance Sheets |
||||
As at June 29, 2024 and December 30, 2023 |
||||
(Unaudited) |
||||
(All dollar amounts expressed in thousands of |
||||
|
|
|
||
|
June 29, 2024 |
December 30, 2023 |
||
|
$ |
$ |
||
|
|
|
||
ASSETS |
|
|
||
Current assets |
|
|
||
Cash and cash equivalents |
3,190 |
|
306 |
|
Accounts receivable |
65,326 |
|
64,862 |
|
Inventories |
98,484 |
|
83,215 |
|
Prepaid expenses and other current assets |
17,429 |
|
25,235 |
|
Income taxes recoverable |
4,048 |
|
4,717 |
|
Current assets held for sale |
- |
|
5,910 |
|
Total current assets |
188,477 |
|
184,245 |
|
|
|
|
||
Restricted cash |
8,227 |
|
8,448 |
|
Property, plant and equipment, net |
346,909 |
|
319,898 |
|
Operating lease right-of-use assets |
108,736 |
|
105,919 |
|
Intangible assets, net |
20,969 |
|
21,861 |
|
Goodwill |
3,998 |
|
3,998 |
|
Deferred income taxes |
315 |
|
- |
|
Other assets |
27,067 |
|
25,055 |
|
|
|
|
||
Total assets |
704,698 |
|
669,424 |
|
|
|
|
||
LIABILITIES |
|
|
||
Current liabilities |
|
|
||
Accounts payable and accrued liabilities |
86,532 |
|
96,650 |
|
Notes payable |
16,364 |
|
17,596 |
|
Current portion of long-term debt |
29,306 |
|
24,346 |
|
Current portion of operating lease liabilities |
16,400 |
|
15,808 |
|
Total current liabilities |
148,602 |
|
154,400 |
|
|
|
|
||
Long-term debt |
273,806 |
|
238,883 |
|
Operating lease liabilities |
102,857 |
|
100,102 |
|
Deferred income taxes |
325 |
|
505 |
|
Total liabilities |
525,590 |
|
493,890 |
|
|
|
|
||
Series B-1 preferred stock |
14,773 |
|
14,509 |
|
|
|
|
||
SHAREHOLDERS' EQUITY |
|
|
||
Common shares |
469,719 |
|
464,169 |
|
Additional paid-in capital |
27,816 |
|
27,534 |
|
Accumulated deficit |
(335,209 |
) |
(332,687 |
) |
Accumulated other comprehensive income |
2,009 |
|
2,009 |
|
Total shareholders' equity |
164,335 |
|
161,025 |
|
|
|
|
||
Total liabilities and shareholders' equity |
704,698 |
|
669,424 |
|
|
|
|
||
SunOpta Inc. |
||||||
Consolidated Statements of Cash Flows |
||||||
For the two quarters ended June 29, 2024 and July 1, 2023 |
||||||
(Unaudited) |
||||||
(Expressed in thousands of |
||||||
|
|
|
|
|
||
|
|
Two quarters ended |
||||
|
|
|
June 29, 2024 |
July 1, 2023 |
||
|
|
|
$ |
$ |
||
|
|
|
|
|
||
CASH PROVIDED BY (USED IN) |
|
|
|
|
||
Operating activities |
|
|
|
|
||
Net loss |
|
|
(2,258 |
) |
(17,461 |
) |
Net loss from discontinued operations |
|
|
(2,314 |
) |
(2,983 |
) |
Earnings (loss) from continuing operations |
|
|
56 |
|
(14,478 |
) |
Items not affecting cash: |
|
|
|
|
||
Depreciation and amortization |
|
|
17,686 |
|
14,890 |
|
Amortization of debt issuance costs |
|
|
457 |
|
795 |
|
Deferred income taxes |
|
|
(368 |
) |
3,978 |
|
Stock-based compensation |
|
|
7,742 |
|
5,921 |
|
Gain on sale of smoothie bowls product line |
|
|
(1,800 |
) |
- |
|
Other |
|
|
(193 |
) |
506 |
|
Changes in operating assets and liabilities, net of divestitures |
|
|
(21,567 |
) |
5,856 |
|
Net cash provided by operating activities of continuing operations |
|
|
2,013 |
|
17,468 |
|
Net cash provided by (used in) operating activities of discontinued operations |
|
|
(2,310 |
) |
2,277 |
|
Net cash provided by (used in) operating activities |
|
|
(297 |
) |
19,745 |
|
Investing activities |
|
|
|
|
||
Additions to property, plant and equipment |
|
|
(17,259 |
) |
(32,556 |
) |
Proceeds received from sale of smoothie bowls product line |
|
|
3,336 |
|
- |
|
Net cash used in investing activities of continuing operations |
|
|
(13,923 |
) |
(32,556 |
) |
Net cash provided by (used in) investing activities of discontinued operations |
|
|
6,300 |
|
(958 |
) |
Net cash used in investing activities |
|
|
(7,623 |
) |
(33,514 |
) |
Financing activities |
|
|
|
|
||
Increase in borrowings under revolving credit facilities |
|
|
26,350 |
|
6,511 |
|
Repayment of long-term debt |
|
|
(12,320 |
) |
(20,806 |
) |
Borrowings of long-term debt |
|
|
- |
|
19,333 |
|
Proceeds from notes payable |
|
|
70,477 |
|
35,095 |
|
Repayment of notes payable |
|
|
(71,709 |
) |
(15,368 |
) |
Proceeds from the exercise of stock options and employee share purchases |
|
|
749 |
|
576 |
|
Payment of withholding taxes on stock-based awards |
|
|
(2,659 |
) |
(9,007 |
) |
Payment of cash dividends on preferred stock |
|
|
(305 |
) |
(1,123 |
) |
Payment of share issuance costs |
|
|
- |
|
(123 |
) |
Net cash provided by financing activities of continuing operations |
|
|
10,583 |
|
15,088 |
|
Net cash used in financing activities of discontinued operations |
|
|
- |
|
(1,017 |
) |
Net cash provided by financing activities |
|
|
10,583 |
|
14,071 |
|
Increase in cash, cash equivalents and restricted cash in the period |
|
|
2,663 |
|
302 |
|
Cash, cash equivalents and restricted cash, beginning of the period |
|
|
8,754 |
|
679 |
|
Cash, cash equivalents and restricted cash, end of the period |
|
|
11,417 |
|
981 |
|
Non-GAAP Measures
Adjusted Gross Margin
The Company uses a measure of adjusted gross margin to evaluate the underlying profitability of its revenue-generating activities within each reporting period. This non-GAAP measure excludes non-capitalizable start-up costs included in cost of goods sold that are incurred in connection with capital expansion projects. Start-up costs have had a significant impact on the comparability of reported gross margins, which may obscure trends in the Company’s margin performance. Additionally, the Company’s measure of adjusted gross margin may exclude other unusual items that are identified and evaluated on an individual basis, which due to their nature or size, the Company would not expect to occur as part of its normal business on a regular basis. The Company believes that disclosing this non-GAAP measure provides investors with a meaningful, consistent comparison of its profitability measure for the periods presented. However, the non-GAAP measure of adjusted gross margin should not be considered in isolation or as a substitute for gross margin calculated based on gross profit determined in accordance with
The following table presents a reconciliation of adjusted gross margin from reported gross margin calculated in accordance with
|
Quarter ended |
Two quarters ended |
||
|
June 29, 2024 |
July 1, 2023 |
June 29, 2024 |
July 1, 2023 |
Reported gross margin |
|
|
|
|
Start-up costs(a) |
|
|
|
|
Product withdrawal costs(b) |
|
- |
|
- |
Adjusted gross margin |
|
|
|
|
|
|
|
|
|
Note: percentages may not add due to rounding. |
|
|
||
(a) |
Represents incremental direct costs incurred in connection with plant expansion projects and new product introductions before the project or product reaches normal production levels, including costs for the hiring and training of additional personnel, fees for outside services, travel costs, and plant- and production-related expenses. For the second quarter and first two quarters of 2024, start-up costs of |
|
|
(b) |
In the second quarter of 2024, we conducted a voluntary withdrawal from customers of certain batches of aseptically-packaged products that may have the potential for non-pathogenic microbial contamination. None of the withdrawn product made it into the consumer marketplace. For the second quarter, we recognized direct costs related to the withdrawal of |
Adjusted Earnings and Adjusted EBITDA from continuing operations
In addition to reporting financial results in accordance with
The following are tabular presentations of adjusted earnings and adjusted EBITDA from continuing operations, including a reconciliation from earnings (loss) from continuing operations, which the Company believes to be the most directly comparable
|
June 29, 2024 |
July 1, 2023 |
||||||
|
|
Per Share |
|
Per Share |
||||
For the quarter ended |
$ |
$ |
$ |
$ |
||||
|
|
|
|
|
||||
Loss from continuing operations |
(3,781 |
) |
|
(11,651 |
) |
|
||
Dividends and accretion on preferred stock |
169 |
|
|
(422 |
) |
|
||
Loss from continuing operations attributable to common |
|
|
|
|
||||
shareholders |
(3,612 |
) |
(0.03 |
) |
(12,073 |
) |
(0.10 |
) |
Adjusted for: |
|
|
|
|
||||
Start-up costs(a) |
3,774 |
|
|
6,697 |
|
|
||
Product withdrawal costs(b) |
2,145 |
|
|
- |
|
|
||
Unrealized foreign exchange loss on restricted cash(c) |
838 |
|
|
- |
|
|
||
Business development costs(d) |
- |
|
|
731 |
|
|
||
Other(e) |
(304 |
) |
|
(62 |
) |
|
||
Net income tax on adjusting items(f) |
- |
|
|
1,873 |
|
|
||
Change in valuation allowance for deferred tax assets(g) |
- |
|
|
3,978 |
|
|
||
Adjusted earnings from continuing operations |
2,841 |
|
0.02 |
|
1,144 |
|
0.01 |
|
|
June 29, 2024 |
July 1, 2023 |
||
For the quarter ended |
$ |
$ |
||
Loss from continuing operations |
(3,781 |
) |
(11,651 |
) |
Income tax expense (benefit) |
(17 |
) |
6,282 |
|
Interest expense, net |
6,410 |
|
6,565 |
|
Depreciation and amortization |
9,110 |
|
7,840 |
|
Stock-based compensation |
2,443 |
|
2,029 |
|
Adjusted for: |
|
|
||
Start-up costs(a) |
3,774 |
|
6,697 |
|
Product withdrawal costs(b) |
2,145 |
|
- |
|
Unrealized foreign exchange loss on restricted cash(c) |
838 |
|
- |
|
Business development costs(d) |
- |
|
731 |
|
Other(e) |
(304 |
) |
(62 |
) |
Adjusted EBITDA from continuing operations |
20,618 |
|
18,431 |
|
(a) |
Refer to footnote (a) to the Adjusted Gross Margin table above for a description of start-up costs included in cost of goods sold. Additionally, for the second quarter of 2023, start-up costs included |
|
|
(b) |
Refer to footnote (b) to the Adjusted Gross Margin table above for a description of product withdrawal costs included in cost of goods sold. |
|
|
(c) |
For the second quarter of 2024, reflects an unrealized foreign exchange loss associated with peso-denominated bank accounts in |
|
|
(d) |
For the second quarter of 2023, business development costs related to the divestiture of Frozen Fruit and are recorded in SG&A expenses. |
|
|
(e) |
For the second quarter of 2024, other reflects gains on the settlement of certain legal matters. |
|
|
(f) |
Reflects the tax effect of the adjustments to earnings calculated based on the statutory tax rates applicable in the tax jurisdiction of the underlying adjustment, net of deferred tax valuation allowances. |
|
|
(g) |
For the second quarter of 2023, reflects an increase to the valuation allowance for |
|
June 29, 2024 |
July 1, 2023 |
||||||
|
|
Per Share |
|
Per Share |
||||
For the two quarters ended |
$ |
$ |
$ |
$ |
||||
|
|
|
|
|
||||
Earnings (loss) from continuing operations |
56 |
|
|
(14,478 |
) |
|
||
Dividends and accretion on preferred stock |
(264 |
) |
|
(1,126 |
) |
|
||
Loss from continuing operations attributable to common |
|
|
|
|
||||
shareholders |
(208 |
) |
(0.00 |
) |
(15,604 |
) |
(0.14 |
) |
Adjusted for: |
|
|
|
|
||||
Start-up costs(a) |
4,101 |
|
|
13,122 |
|
|
||
Product withdrawal costs(b) |
2,145 |
|
|
- |
|
|
||
Unrealized foreign exchange loss on restricted cash(c) |
838 |
|
|
- |
|
|
||
Business development costs(d) |
- |
|
|
1,462 |
|
|
||
Gain on sale of smoothie bowls product line(e) |
(1,800 |
) |
|
- |
|
|
||
Other(f) |
(304 |
) |
|
(20 |
) |
|
||
Change in valuation allowance for deferred tax assets(g) |
- |
|
|
3,978 |
|
|
||
Adjusted earnings from continuing operations |
4,772 |
|
0.04 |
|
2,938 |
|
0.03 |
|
|
June 29, 2024 |
July 1, 2023 |
||
For the two quarters ended |
$ |
$ |
||
Earnings (loss) from continuing operations |
56 |
|
(14,478 |
) |
Income tax expense |
260 |
|
3,978 |
|
Interest expense, net |
12,460 |
|
12,229 |
|
Depreciation and amortization |
17,686 |
|
14,890 |
|
Stock-based compensation |
7,742 |
|
5,921 |
|
Adjusted for: |
|
|
||
Start-up costs(a) |
4,101 |
|
13,122 |
|
Product withdrawal costs(b) |
2,145 |
|
- |
|
Unrealized foreign exchange loss on restricted cash(c) |
838 |
|
- |
|
Business development costs(d) |
- |
|
1,462 |
|
Gain on sale of smoothie bowls product line(e) |
(1,800 |
) |
- |
|
Other(f) |
(304 |
) |
(20 |
) |
Adjusted EBITDA from continuing operations |
43,184 |
|
37,104 |
|
(a) |
Refer to footnote (a) to the Adjusted Gross Margin table above for a description of start-up costs included in cost of goods sold. Additionally, for the first two quarters of 2023, start-up costs included |
|
|
(b) |
Refer to footnote (b) to the Adjusted Gross Margin table above for a description of product withdrawal costs included in cost of goods sold. |
|
|
(c) |
For the first two quarters of 2024, reflects an unrealized foreign exchange loss associated with peso-denominated bank accounts in |
|
|
(d) |
For the first two quarters of 2023, business development costs related to the divestiture of Frozen Fruit and are recorded in SG&A expenses. |
|
|
(e) |
For the first two quarters of 2024, reflects the pre-tax gain on sale of the smoothie bowls product line, which is recorded in other income. |
|
|
(f) |
For the first two quarters of 2024, other reflects gains on the settlement of certain legal matters. |
|
|
(g) |
For the first two quarters of 2023, reflects an increase to the valuation allowance for |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240807114548/en/
Investor Relations:
Reed Anderson
ICR
646-277-1260
reed.anderson@icrinc.com
Media Relations:
Claudine Galloway
SunOpta
952-295-9579
press.inquiries@sunopta.com
Source: SunOpta Inc.
FAQ
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