SunOpta Announces Third Quarter 2022 Financial Results
SunOpta reported a 15.7% revenue growth in Q3 2022, achieving $229.7 million in total revenues. The growth stemmed from 19.9% increase in plant-based products and 10.0% in fruit-based offerings. Gross margin expanded by 190 basis points to 13.7%. However, the company faced a net loss of $12.6 million, compared to a loss of $3.0 million in the prior year. Adjusted EBITDA rose 41.7% to $22.1 million. SunOpta has raised its fiscal 2022 outlook, projecting revenues of $923 - 943 million and adjusted EBITDA of $76 - 80 million.
- 15.7% revenue growth to $229.7 million
- Gross margin increased by 190 basis points to 13.7%
- Adjusted EBITDA up 41.7% to $22.1 million
- Raised fiscal 2022 revenue outlook to $923 - 943 million
- Increased adjusted EBITDA outlook to $76 - 80 million
- Net loss from continuing operations of $12.6 million compared to a loss of $3.0 million in the prior year
- Loss attributable to common shareholders was $13.4 million, or $0.12 per diluted share
Continued strong revenue growth of
Gross margin expanded 190 basis points to
Net loss from continuing operations of
Adjusted EBITDA increased
Raising 2022 Outlook
All amounts are expressed in
Third Quarter 2022 highlights:
-
Revenues increased
15.7% to$229.7 million 19.9% growth in the plant-based segment and a10.0% increase in the fruit-based segment compared to the third quarter of the prior year. -
Gross margin increased 190 basis points to
13.7% from11.8% in the third quarter of the prior year, despite approximately 140 basis points of margin dilution in pass-through pricing to recover cost inflation. -
Net loss from continuing operations was
$12.6 million $3.0 million $16.9 million Oxnard frozen fruit facility of$2.7 million -
Adjusted earnings¹ attributable to common shareholders was
$2.0 million $0.02 $1.1 million $0.01 -
Adjusted EBITDA¹ of
$22.1 million 9.6% of revenues, was up41.7% versus$15.6 million 7.9% in the prior year period.
“Strong execution continues to define our results. Innovation and capacity expansion are propelling steady volume growth, productivity gains are being driven by operational efficiencies, and we are balancing inflationary cost pressures with customer pricing,” said
Third Quarter 2022 Results
Revenues of
Gross profit was
Segment operating income¹ was
Adjusted EBITDA¹ was
Loss attributable to common shareholders for the third quarter of 2022 was
Adjusted earnings¹ in the third quarter of 2022 was
Please refer to the discussion and table below under “Non-GAAP Measures.”
Balance Sheet and Cash Flow
As of
2022 Outlook2
We are raising our previously provided outlook for fiscal 2022, as follows:
($ millions) |
|
Prior Outlook |
|
Revised Outlook Excluding Disposal Impact |
|
Disposal Impact |
|
Revised Outlook after Disposal |
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Revenue |
$ |
930 - 960 |
$ |
940 - 960 |
$ |
(17 |
) |
$ |
923 - 943 |
|||
Adj. EBITDA |
72 - 78 |
76 - 80 |
- |
|
76 – 80 |
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Revenue growth |
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Adj. EBITDA growth |
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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 belief that construction of our new greenfield plant in
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Consolidated Statements of Operations |
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For the quarters and three quarters ended |
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(Unaudited) |
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(All dollar amounts expressed in thousands of |
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Quarter ended |
Three quarters ended |
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$ |
$ |
$ |
$ |
||||
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Revenues |
229,665 |
|
198,479 |
|
713,369 |
|
608,392 |
|
||
|
|
|
|
|
|
|
||||
Cost of goods sold |
198,282 |
|
175,123 |
|
619,097 |
|
528,711 |
|
||
|
|
|
|
|
|
|
||||
Gross profit |
31,383 |
|
23,356 |
|
94,272 |
|
79,681 |
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||
|
|
|
|
|
|
|
||||
Selling, general and administrative expenses |
20,654 |
|
16,487 |
|
66,893 |
|
60,081 |
|
||
Intangible asset amortization |
2,612 |
|
2,612 |
|
7,836 |
|
7,338 |
|
||
Other expense, net |
20,200 |
|
1,172 |
|
22,027 |
|
7,448 |
|
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Foreign exchange loss (gain) |
473 |
|
336 |
|
(126 |
) |
533 |
|
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|
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|
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|
||||
Earnings (loss) from continuing operations before the following |
(12,556 |
) |
2,749 |
|
(2,358 |
) |
4,281 |
|
||
|
|
|
|
|
|
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||||
Interest expense, net |
4,342 |
|
2,854 |
|
10,004 |
|
6,145 |
|
||
|
|
|
|
|
|
|
||||
Loss from continuing operations before income taxes |
(16,898 |
) |
(105 |
) |
(12,362 |
) |
(1,864 |
) |
||
|
|
|
|
|
|
|
||||
Income tax expense (benefit) |
(4,259 |
) |
2,929 |
|
(2,875 |
) |
416 |
|
||
|
|
|
|
|
|
|
||||
Loss from continuing operations |
(12,639 |
) |
(3,034 |
) |
(9,487 |
) |
(2,280 |
) |
||
Earnings from discontinued operations |
- |
|
- |
|
2,752 |
|
- |
|
||
Net loss |
(12,639 |
) |
(3,034 |
) |
(6,735 |
) |
(2,280 |
) |
||
|
|
|
|
|
|
|
||||
Dividends and accretion on preferred stock |
(764 |
) |
(748 |
) |
(2,279 |
) |
(3,445 |
) |
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|
|
|
|
|
|
|
||||
Loss attributable to common shareholders |
(13,403 |
) |
(3,782 |
) |
(9,014 |
) |
(5,725 |
) |
||
|
|
|
|
|
|
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Basic and diluted earnings (loss) per share |
|
|
|
|
||||||
Loss from continuing operations |
(0.12 |
) |
(0.04 |
) |
(0.11 |
) |
(0.06 |
) |
||
Earnings from discontinued operations |
- |
|
- |
|
0.03 |
|
- |
|
||
Loss attributable to common shareholders |
(0.12 |
) |
(0.04 |
) |
(0.08 |
) |
(0.06 |
) |
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Weighted-average common shares outstanding (000s) |
|
|
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||||||
Basic |
107,752 |
|
107,255 |
|
107,566 |
|
103,017 |
|
||
Diluted |
107,752 |
|
107,255 |
|
107,566 |
|
103,017 |
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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 |
|
|
||||
Cash and cash equivalents |
459 |
|
227 |
|
||
Accounts receivable |
75,460 |
|
84,702 |
|
||
Inventories |
225,059 |
|
220,143 |
|
||
Prepaid expenses and other current assets |
16,413 |
|
16,638 |
|
||
Income taxes recoverable |
7,258 |
|
8,259 |
|
||
Assets held for sale |
16,151 |
|
- |
|
||
Total current assets |
340,800 |
|
329,969 |
|
||
|
|
|
|
|
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Property, plant and equipment, net |
292,407 |
|
219,537 |
|
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Operating lease right-of-use assets |
78,167 |
|
47,245 |
|
||
Intangible assets, net |
138,092 |
|
148,440 |
|
||
|
3,998 |
|
3,998 |
|
||
Other assets |
5,486 |
|
5,930 |
|
||
|
|
|
|
|
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Total assets |
858,950 |
|
755,119 |
|
||
|
|
|
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|
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LIABILITIES |
|
|
||||
Current liabilities |
|
|
||||
Accounts payable and accrued liabilities |
117,578 |
|
121,430 |
|
||
Income taxes payable |
44 |
|
- |
|
||
Current portion of long-term debt |
31,374 |
|
9,760 |
|
||
Current portion of operating lease liabilities |
12,601 |
|
12,203 |
|
||
Liabilities held for sale |
7,005 |
|
- |
|
||
Total current liabilities |
168,602 |
|
143,393 |
|
||
|
|
|
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Long-term debt |
274,888 |
|
214,843 |
|
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Operating lease liabilities |
71,016 |
|
39,028 |
|
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Long-term liabilities |
- |
|
2,241 |
|
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Deferred income taxes |
10,585 |
|
22,485 |
|
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Total liabilities |
525,091 |
|
421,990 |
|
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|
|
|
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Series B-1 preferred stock |
28,597 |
|
28,145 |
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SHAREHOLDERS' EQUITY |
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Common shares |
439,670 |
|
436,463 |
|
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Additional paid-in capital |
29,325 |
|
23,240 |
|
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Accumulated deficit |
(165,096 |
) |
(156,082 |
) |
||
Accumulated other comprehensive income |
1,363 |
|
1,363 |
|
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Total shareholders' equity |
305,262 |
|
304,984 |
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Total liabilities and shareholders' equity |
858,950 |
|
755,119 |
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Consolidated Statements of Cash Flows |
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For the quarters and three quarters ended |
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(Unaudited) |
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(Expressed in thousands of |
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Quarter ended |
Three quarters ended |
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$ |
$ |
$ |
$ |
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CASH PROVIDED BY (USED IN) |
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Operating activities |
|
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Net loss |
(12,639 |
) |
(3,034 |
) |
(6,735 |
) |
(2,280 |
) |
|||
Earnings from discontinued operations |
- |
|
- |
|
2,752 |
|
- |
|
|||
Loss from continuing operations |
(12,639 |
) |
(3,034 |
) |
(9,487 |
) |
(2,280 |
) |
|||
Items not affecting cash: |
|
|
|
|
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Depreciation and amortization |
9,730 |
|
8,837 |
|
28,515 |
|
25,790 |
|
|||
Amortization of debt issuance costs |
413 |
|
359 |
|
1,184 |
|
993 |
|
|||
Deferred income taxes |
(2,925 |
) |
3,315 |
|
(717 |
) |
(179 |
) |
|||
Stock-based compensation |
4,092 |
|
1,250 |
|
9,691 |
|
9,593 |
|
|||
Loss on classification of sunflower business as held for sale |
23,227 |
|
- |
|
23,227 |
|
- |
|
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Gain on sale of frozen fruit processing facility |
(3,779 |
) |
- |
|
(3,779 |
) |
- |
|
|||
Impairment of long-lived assets |
- |
|
- |
|
- |
|
2,962 |
|
|||
Other |
(149 |
) |
(168 |
) |
1,596 |
|
(504 |
) |
|||
Changes in operating assets and liabilities |
2,003 |
|
(5,494 |
) |
(17,168 |
) |
(77,472 |
) |
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Net cash provided by (used in) operating activities of continuing operations |
19,973 |
|
5,065 |
|
33,062 |
|
(41,097 |
) |
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Investing activities |
|
|
|
|
|||||||
Additions to property, plant and equipment |
(38,019 |
) |
(18,386 |
) |
(100,779 |
) |
(34,989 |
) |
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Proceeds from sale of property, plant and equipment |
16,111 |
|
950 |
|
20,293 |
|
2,300 |
|
|||
Additions to intangible assets |
- |
|
- |
|
- |
|
(25,073 |
) |
|||
Net cash used in investing activities of continuing operations |
(21,908 |
) |
(17,436 |
) |
(80,486 |
) |
(57,762 |
) |
|||
Net cash used in investing activities of discontinued operations |
- |
|
- |
|
(6,324 |
) |
(13,380 |
) |
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Net cash used in investing activities |
(21,908 |
) |
(17,436 |
) |
(86,810 |
) |
(71,142 |
) |
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Financing activities |
|
|
|
|
|||||||
Increase (decrease) in borrowings under revolving credit facilities |
(24,247 |
) |
11,348 |
|
(3,485 |
) |
123,177 |
|
|||
Borrowings of long-term debt |
33,094 |
|
4,739 |
|
74,197 |
|
9,380 |
|
|||
Repayment of long-term debt |
(6,265 |
) |
(1,849 |
) |
(13,834 |
) |
(11,789 |
) |
|||
Payment of debt issuance costs |
(113 |
) |
(181 |
) |
(672 |
) |
(2,552 |
) |
|||
Proceeds from the exercise of stock options and employee share purchases |
612 |
|
304 |
|
1,203 |
|
7,494 |
|
|||
Payment of withholding taxes on stock-based awards |
(631 |
) |
(1,576 |
) |
(1,602 |
) |
(8,313 |
) |
|||
Payment of cash dividends on preferred stock |
(609 |
) |
(609 |
) |
(1,827 |
) |
(4,638 |
) |
|||
Payment of share issuance costs |
- |
|
- |
|
- |
|
(287 |
) |
|||
Net cash provided by financing activities of continuing operations |
1,841 |
|
12,176 |
|
53,980 |
|
112,472 |
|
|||
Net cash used in financing activities of discontinued operations |
- |
|
- |
|
- |
|
(200 |
) |
|||
Net cash provided by financing activities |
1,841 |
|
12,176 |
|
53,980 |
|
112,272 |
|
|||
Increase (decrease) in cash and cash equivalents in the period |
(94 |
) |
(195 |
) |
232 |
|
33 |
|
|||
Cash and cash equivalent, beginning of the period |
553 |
|
479 |
|
227 |
|
251 |
|
|||
Cash and cash equivalents, end of the period |
459 |
|
284 |
|
459 |
|
284 |
|
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Segmented Information |
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For the quarters and three quarters ended |
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Unaudited |
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(Expressed in thousands of |
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Quarter ended |
Three quarters ended |
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$ |
$ |
$ |
$ |
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Segment revenues from external customers: |
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|
|||||||
|
137,726 |
|
114,870 |
|
419,149 |
|
345,680 |
|
|||
|
91,939 |
|
83,609 |
|
294,220 |
|
262,712 |
|
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Total segment revenues from external customers |
229,665 |
|
198,479 |
|
713,369 |
|
608,392 |
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Segment gross profit: |
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|
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|
20,106 |
|
18,697 |
|
64,026 |
|
61,751 |
|
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|
11,277 |
|
4,659 |
|
30,246 |
|
17,930 |
|
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Total segment gross profit |
31,383 |
|
23,356 |
|
94,272 |
|
79,681 |
|
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|
|
|
|
|
|
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|
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Segment operating income (loss): |
|
|
|
|
|||||||
|
8,814 |
|
8,056 |
|
29,106 |
|
30,014 |
|
|||
|
2,870 |
|
(3,517 |
) |
6,865 |
|
(6,858 |
) |
|||
Corporate Services |
(4,040 |
) |
(618 |
) |
(16,302 |
) |
(11,427 |
) |
|||
Total segment operating income |
7,644 |
|
3,921 |
|
19,669 |
|
11,729 |
|
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|
|
|
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Segment gross profit percentage: |
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|
14.6 |
% |
16.3 |
% |
15.3 |
% |
17.9 |
% |
|||
|
12.3 |
% |
5.6 |
% |
10.3 |
% |
6.8 |
% |
|||
Total segment gross profit percentage |
13.7 |
% |
11.8 |
% |
13.2 |
% |
13.1 |
% |
|||
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|
|
|
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Segment operating income (loss) percentage: |
|
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|
|
|||||||
|
6.4 |
% |
7.0 |
% |
6.9 |
% |
8.7 |
% |
|||
|
3.1 |
% |
-4.2 |
% |
2.3 |
% |
-2.6 |
% |
|||
Total segment operating income percentage |
3.3 |
% |
2.0 |
% |
2.8 |
% |
1.9 |
% |
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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
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 and adjusted earnings 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 and adjusted earnings 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 |
||||
|
For the quarter ended |
$ |
$ |
|
$ |
$ |
||||||
|
Loss from continuing operations |
(12,639 |
) |
|
|
(3,034 |
) |
|
||||
|
Dividends and accretion on preferred stock |
(764 |
) |
|
|
(748 |
) |
|
||||
|
Loss from continuing operations attributable to common shareholders |
(13,403 |
) |
(0.12 |
) |
|
(3,782 |
) |
(0.04 |
) |
||
|
Adjusted for: |
|
|
|
|
|
||||||
|
Loss on classification of sunflower business as held for sale(a) |
23,227 |
|
|
|
- |
|
|
||||
|
Gain on sale of frozen fruit processing facility(b) |
(3,779 |
) |
|
|
- |
|
|
||||
|
Start-up costs(c) |
608 |
|
|
|
- |
|
|
||||
|
Facility closure costs(d) |
525 |
|
|
|
- |
|
|
||||
|
Business development costs(e) |
75 |
|
|
|
1,782 |
|
|
||||
|
Workforce reduction charges(f) |
- |
|
|
|
499 |
|
|
||||
|
Costs related to exit from fruit ingredient processing facility(g) |
- |
|
|
|
479 |
|
|
||||
|
Other(h) |
227 |
|
|
|
40 |
|
|
||||
|
Net income tax effect(i) |
(5,491 |
) |
|
|
2,121 |
|
|
||||
|
Adjusted earnings |
1,989 |
|
0.02 |
|
|
1,139 |
|
0.01 |
|
||
(a) |
Reflects the loss on the classification of the sunflower business as held for sale at the end of the third quarter of 2022, which was recorded in other expense. |
(b) |
Reflects the gain on sale of our frozen fruit processing facility located in |
(c) |
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 third quarter of 2022, start-up costs mainly related to new employee hires for our plant-based beverage facility under construction in |
(d) |
For the third quarter of 2022, facility closure costs mainly related to the relocation of certain equipment from the sold |
(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 the third quarter of 2022, these costs related to actions undertaken to optimize non-core assets, which were recorded in SG&A expenses. For the third quarter of 2021, these costs were mainly related to the transition of the Dream and WestSoy brands, acquired in |
(f) |
For the third quarter of 2021, represents employee termination costs related to workforce reduction actions in our frozen fruit operations, which were recorded in other expense. |
(g) |
For the third quarter of 2021, these costs related to the exit from our former |
(h) |
For the third quarters of 2022 and 2021, other mainly reflects losses on the disposal of assets and the settlement of certain legal and matters. |
(i) |
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. |
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
Per Share |
|
|
Per Share |
||||
|
For the three quarters ended |
$ |
$ |
|
$ |
$ |
|||||||
|
Loss from continuing operations |
(9,487 |
) |
|
|
(2,280 |
) |
|
|||||
|
Dividends and accretion on preferred stock |
(2,279 |
) |
|
|
(3,445 |
) |
|
|||||
|
Loss from continuing operations attributable to common shareholders |
(11,766 |
) |
(0.11 |
) |
|
(5,725 |
) |
(0.06 |
) |
|||
|
Adjusted for: |
|
|
|
|
|
|||||||
|
Loss on classification of sunflower business as held for sale(a) |
23,227 |
|
|
|
- |
|
|
|||||
|
Gain on sale of frozen fruit processing facility(b) |
(3,779 |
) |
|
|
- |
|
|
|||||
|
Facility closure costs(c) |
1,812 |
|
|
|
- |
|
|
|||||
|
Start-up costs(d) |
1,329 |
|
|
|
- |
|
|
|||||
|
Business development costs(e) |
874 |
|
|
|
3,568 |
|
|
|||||
|
Costs related to exit from fruit ingredient processing facility(f) |
- |
|
|
|
4,602 |
|
|
|||||
|
Restructuring costs(g) |
- |
|
|
|
1,432 |
|
|
|||||
|
Workforce reduction charges(h) |
- |
|
|
|
499 |
|
|
|||||
|
Other(i) |
767 |
|
|
|
287 |
|
|
|||||
|
Net income tax effect(j) |
(6,370 |
) |
|
|
(2,141 |
) |
|
|||||
|
Adjusted earnings |
6,094 |
|
0.06 |
|
|
2,522 |
|
0.02 |
|
|||
(a) |
Reflects the loss on the classification of the sunflower business as held for sale at the end of the third quarter of 2022, which was recorded in other expense. |
(b) |
Reflects the gain on sale of our frozen fruit processing facility located in |
(c) |
Facility closure costs mainly related to the relocation of certain equipment from the sold |
(d) |
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 first three quarters of 2022, start-up costs mainly related to new employee hires for our plant-based beverage facility under construction in |
(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 the first three quarters of 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 |
(f) |
For the first three quarters of 2021, represents asset impairment charges, together with employee termination and asset relocation costs related to the exit from our former |
(g) |
For the first three quarters of 2021, represents costs to complete the exit from our former |
(h) |
For the first three quarters of 2021, represents employee termination costs related to workforce reduction actions in our frozen fruit operations, which were recorded in other expense. |
(i) |
For the first three quarters of 2022 and 2021, other mainly reflects the settlement of certain legal and contractual matters, together with losses on the disposal of assets, which were recorded in other expense |
(j) |
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 and Adjusted EBITDA
The Company defines segment operating income as loss from continuing operations before income taxes, interest expense and other income/expense items, and adjusted EBITDA as segment operating income 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. The following is a tabular presentation of segment operating income and adjusted EBITDA, including a reconciliation from loss from continuing operations, which the Company believes to be the most directly comparable
|
|
|
|
|
|
|
|
||
|
For the quarter ended |
$ |
|
$ |
|||||
|
Loss from continuing operations |
(12,639 |
) |
|
(3,034 |
) |
|||
|
Income tax expense (benefit) |
(4,259 |
) |
|
2,929 |
|
|||
|
Interest expense, net |
4,342 |
|
|
2,854 |
|
|||
|
Other expense, net |
20,200 |
|
|
1,172 |
|
|||
|
Total segment operating income |
7,644 |
|
|
3,921 |
|
|||
|
Depreciation and amortization |
9,730 |
|
|
8,837 |
|
|||
|
Stock-based compensation |
4,092 |
|
|
1,250 |
|
|||
|
Start-up costs(a) |
608 |
|
|
- |
|
|||
|
Business development costs(b) |
75 |
|
|
1,628 |
|
|||
|
Adjusted EBITDA |
22,149 |
|
|
15,636 |
|
|||
| (a) |
For the third quarter of 2022, start-up costs mainly related to new employee hires for our plant-based beverage facility under construction in |
| (b) |
For the third quarter of 2022, business development costs related to actions undertaken to optimize non-core assets, which were recorded in SG&A expenses. For the third quarter of 2021, these costs related to the integration of the Dream and WestSoy brands and project development activities related to our new plant in |
|
|
|
|
|
|
|
|
||
|
For the three quarters ended |
$ |
|
$ |
|||||
|
Loss from continuing operations |
(9,487 |
) |
|
(2,280 |
) |
|||
|
Income tax expense (benefit) |
(2,875 |
) |
|
416 |
|
|||
|
Interest expense, net |
10,004 |
|
|
6,145 |
|
|||
|
Other expense, net |
22,027 |
|
|
7,448 |
|
|||
|
Total segment operating income |
19,669 |
|
|
11,729 |
|
|||
|
Depreciation and amortization |
28,515 |
|
|
25,790 |
|
|||
|
Stock-based compensation |
9,691 |
|
|
9,593 |
|
|||
|
Start-up costs(a) |
1,329 |
|
|
- |
|
|||
|
Business development costs(b) |
874 |
|
|
2,940 |
|
|||
|
Adjusted EBITDA |
60,078 |
|
|
50,052 |
|
|||
| (a) |
For the first three quarters of 2022, start-up costs mainly related to new employee hires for our plant-based beverage facility under construction in |
| (b) |
For the first three quarters of 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 Investor Day, which were recorded in SG&A expenses. For the first three quarters of 2021, these costs related to the integration of the Dream and WestSoy brands and project development activities related to our new plant in |
Sunflower Business - Selected Financial Information
The following table presents a summary of the results of operations of the sunflower business, together with a reconciliation of adjusted EBITDA for the sunflower business from earnings/loss before income taxes, which we consider in this case to be the most directly comparable
|
|
|
|
Quarter ended |
Three quarters ended |
|
Trailing four quarters ended |
||||
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
2022 |
|
2022 |
2022 |
|
2022 |
|
2022 |
|
|
|
|
$ |
$ |
$ |
$ |
|
$ |
||
Revenues |
17,163 |
|
21,302 |
17,309 |
|
55,774 |
|
70,358 |
|||
Gross profit |
239 |
|
2,377 |
6 |
|
2,622 |
|
2,952 |
|||
Segment operating income (loss)(a) |
(296 |
) |
1,835 |
(514 |
) |
1,025 |
|
877 |
|||
Earnings (loss) before income taxes(a) |
(296 |
) |
1,835 |
(514 |
) |
1,025 |
|
877 |
|||
|
|
|
|
|
|
|
|
|
|
||
Depreciation and amortization |
597 |
|
598 |
597 |
|
1,792 |
|
2,388 |
|||
Adjusted EBITDA |
301 |
|
2,433 |
83 |
|
2,817 |
|
3,265 |
|||
| (a) | Excludes corporate costs allocated to the sunflower business. |
Segment operating income/loss and adjusted EBITDA are non-GAAP measures. See discussion above under the heading “Segment Operating Income and Adjusted EBITDA” on the use of these non-GAAP measures.
View source version on businesswire.com: https://www.businesswire.com/news/home/20221109005325/en/
ICR
646-277-1260
reed.anderson@icrinc.com
Source:
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