SunOpta: First Quarter 2011 Results

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Toronto - SunOpta Inc. ("SunOpta" or "the Company") (Nasdaq:STKL) (TSX:SOY), a leading global company focused on natural, organic and specialty foods, today announced financial results for the quarter ended April 2, 2011. All amounts are expressed in U.S. dollars and results are reported in accordance with U.S. GAAP, except where specifically noted.

The Company realized revenues of $260.9 million in the first quarter of 2011 versus revenues of $216.7 million in the first quarter of 2010, a year over year increase of 20.4%. Revenues increased 9.7% excluding the impact of the acquisitions completed late in 2010.

For the first quarter of 2011, the Company realized operating income1 of $11.0 million or 4.2% of revenues, an increase of approximately 14.6%, versus operating income1 in the first quarter of 2010 of $9.6 million or 4.4% of revenues. The increase in operating income was driven by increases in the Grains and Foods Group, International Foods Group and Opta Minerals Inc. combined with reduced corporate spending. Excluding the year over year impact of the foreign exchange loss (gain), operating earnings increased 31.3%.

For the first quarter of 2011, the Company reported earnings per diluted common share from continuing operations of $0.08 or $5.1 million, as compared to $0.06 or $4.2 million for the first quarter of 2010. The Company realized EBITDA1 in first quarter of 2011 of $15.9 million as compared to $14.0 million in the first quarter of 2010, an increase of approximately 13.7%.

At April 2, 2011, the Company's balance sheet reflects a current working capital ratio of 1.39 to 1.00, long-term debt to equity ratio of 0.22 to 1.00 and total debt to equity ratio of 0.62 to 1.00. During the first quarter of 2011, the Company used cash from continuing operating activities of $33.9 million as compared to $13.6 million in the first quarter of 2010, reflecting the impact of increased commodity volumes and costs and increased inventory and accounts receivable balances related to growth in the business. At April 2, 2011, the Company has total assets of $657.4 million and a net book value of $4.56 per outstanding share. At quarter-end, the Company was in compliance with its bank financial covenants.

Steve Bromley, President and Chief Executive Officer of SunOpta, commented, "We are pleased with our first quarter 2011 results which represent record first quarter net earnings for our Company. Operating income1 has improved in spite of rising commodity prices. We continue to streamline our portfolio and over the last twelve months have divested of three non-core operations, most recently the Mexican Frozen Fruit Assets, while over the same period acquiring two core operations. We remain focused on growing our business in fast growing healthy foods categories while at the same time improving operating margins and returns on assets employed. We believe we are well positioned to continue our profitable growth in the future."

The Company plans to host a conference call at 10:00 AM Eastern Time on Thursday, May 12, 2011 to discuss the first quarter results and recent corporate developments. The conference call can be accessed via a link at the Company's website at www.sunopta.com. Additionally, the call may be accessed with the toll free dial-in number 1-877-312-9198 or 631-291-4622. A replay number can also be accessed between May 12th and 19th with the toll free dial-in number 1--800-642-1687 or 706-645-9291 followed by pass code: 62090916#.

1See discussion of non-GAAP measures

About SunOpta Inc.

SunOpta Inc. is a leading global company focused on natural, organic and specialty foods. The Company specializes in sourcing, processing and packaging of natural and organic food products, integrated from seed through packaged products; with a focus on strategically significant vertically integrated business models. The Company's core natural and organic food operations focus on value-added grains, fiber and fruit based product offerings, supported by a global infrastructure. The Company has two non-core holdings, a 66.4% ownership position in Opta Minerals Inc. (TSX:OPM), a producer, distributor, and recycler of environmentally friendly industrial materials, and a minority ownership position in Mascoma Corporation, an innovative biofuels company.

The SunOpta Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=3958

Forward-Looking Statements

Certain statements included in this press release may be considered "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities legislation, which are based on information available to us on the date of this release. These forward-looking statements include, but are not limited to, our continued efforts to streamline our portfolio, our focus on growing our business and improving operating margins and returns on assets employed and our positioning to continue profitable growth in the future. The terms and phrases "continue", "improving", "remain focused", "positioned", and other similar terms and phrases are intended to identify these forward looking statements. Forward looking statements are based on information available to us on the date of this release and are based on estimates and assumptions made by the Company in light of its experience and its perception of historical trends, current conditions and expected future developments as well as other factors the Company believes are appropriate in the circumstances including, but not limited to, general economic conditions, consumer interest in health and wellness, product pricing levels, current customer demand, competitive intensity, cost rationalization and product development initiatives. Whether actual timing and results will agree with expectations and predications of the Company is subject to many risks and uncertainties including, but not limited to, global economic conditions, consumer spending patterns and changes in market trends, decreases in customer demand, potential failure of product development, working capital management and continuous improvement initiatives, availability and pricing of raw materials and supplies, and other risks described from time to time under "Risk Factors" in the Company's Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q (available at www.sec.gov). Consequently all forward-looking statements made herein are qualified by these cautionary statements and there can be no assurance that the actual results or developments anticipated by the Company will be realized.

  SunOpta Inc.
  Consolidated Statements of Operations
  For the quarters ended April 2, 2011 and April 3, 2010
  (Expressed in thousands of U.S. dollars, except per share
   amounts)
  (Unaudited)


  ---------------------------------  --------  --------  --------

                                     April 2,  April 3,
                                       2011      2010     Change
  ---------------------------------  --------  --------  --------

  Revenues                           $260,923  $216,749     20.4%


  Cost of goods sold                  225,368   181,273     24.3%
                                     --------  --------  --------

  Gross profit                         35,555    35,476      0.2%

  Selling, general and
   administrative expenses             23,007    25,796   (10.8%)
  Intangible asset amortization         1,385     1,175     17.9%
  Other expense, net                      362       315     14.9%

  Foreign exchange loss (gain)            135   (1,117)  (112.1%)
                                     --------  --------  --------

  Earnings from continuing
   operations
   before the following                10,666     9,307     14.6%


  Interest expense, net                 1,984     3,022   (34.3%)
                                     --------  --------  --------

  Earnings from continuing
   operations
   before income taxes                  8,682     6,285     38.1%


  Provision for income taxes            3,009     2,076     44.9%
                                     --------  --------  --------

  Earnings from continuing
   operations                           5,673     4,209     34.8%

  Earnings from discontinued
   operations,

   net of taxes                            --       432       n/m
                                     --------  --------  --------

  Earnings                              5,673     4,641     22.2%

  Earnings attributable to
   non-controlling

   interests                              592        28       n/m
                                     --------  --------  --------

  Earnings attributable to SunOpta
   Inc.                                $5,081    $4,613     10.1%
                                     --------  --------  --------


  Earnings per share -- basic
   -from continuing operations          $0.08     $0.06

   -from discontinued operations           --      0.01
                                     --------  --------

                                        $0.08     $0.07
                                     --------  --------

  Earnings per share -- diluted
   -from continuing operations          $0.08     $0.06

   -from discontinued operations           --      0.01
                                     --------  --------

                                        $0.08     $0.07
                                     --------  --------


  SunOpta Inc.
  Consolidated Balance Sheets
  As at April 2, 2011 and January 1, 2011
  Unaudited
  (Expressed in thousands of U.S. dollars, except per
   share amounts)


  ---------------------------  ----------  ----------

                                April 2,   January 1,
                                  2011        2011
  ---------------------------  ----------  ----------

  Assets

  Current assets
     Cash and cash
      equivalents                  $5,720      $2,643
     Accounts receivable          112,038      98,875
     Inventories                  227,462     200,278
     Prepaid expenses and
      other current assets         32,837      30,041

     Deferred income taxes            740         870
                               ----------  ----------
                                  378,797     332,707

  Investments                      33,345      33,345
  Property, plant and
   equipment                      120,063     118,924
  Goodwill                         49,078      48,558
  Intangible assets                60,321      60,200
  Deferred income taxes            11,796      11,889
  Other assets                      2,841       2,930
  Non-current assets held for
   sale                             1,131       1,131
                               ----------  ----------


                                 $657,372    $609,684
                               ----------  ----------

  Liabilities

  Current liabilities
     Bank indebtedness           $120,643     $75,910
     Accounts payable and
      accrued liabilities         118,528     124,031
     Customer and other
      deposits                      3,627       2,858
     Income taxes payable             746         973
     Other current
      liabilities                   6,068       7,674
     Current portion of
      long-term debt               22,892      22,247
     Current portion of
      long-term liabilities           292         571
                               ----------  ----------
                                  272,796     234,264

  Long-term debt                   42,088      42,735
  Long-term liabilities             6,419       6,642

  Deferred income taxes            22,351      20,808
                               ----------  ----------
                                  343,654     304,449


  Equity
  SunOpta Inc. shareholders'
   equity
     Capital Stock                180,881     180,661
     65,539,104 common shares
      (January 1, 2011 -
      65,500,091)
     Additional paid in
      capital                      12,758      12,336
     Retained earnings            100,293      95,212
     Accumulated other
      comprehensive income          4,872       2,833
                               ----------  ----------
                                  298,804     291,042

  Non-controlling interest         14,914      14,193
                               ----------  ----------

  Total equity                    313,718     305,235
                               ----------  ----------


                                 $657,372    $609,684
                               ----------  ----------



  SunOpta Inc.
  Consolidated Statements of Cash Flow
  For the quarters ended April 2, 2011 and April 3, 2010
  (Expressed in thousands of U.S. dollars)
  (Unaudited)


  ---------------------------------------------  --------  --------

                                                  Quarter   Quarter
                                                  ended     ended
                                                 April 2,  April 3,
                                                   2011      2010
  ---------------------------------------------  --------  --------

  Cash provided by (used in)

  Operating activities
   Earnings                                        $5,673    $4,641

   Earnings from discontinued operations               --       432
                                                 --------  --------
   Earnings from continuing operations              5,673     4,209

  Items not affecting cash
   Amortization                                     4,833     4,328
   Unrealized loss (gain) on foreign exchange         723   (1,092)
   Deferred income taxes                            1,766     1,166
   Unrealized (gain) loss on derivative
    instruments                                   (3,685)     1,443
   Other                                              115     (284)

  Changes in non-cash working capital            (43,328)  (23,354)
                                                 --------  --------
  Net cash flows from operations - continuing
   operations                                    (33,903)  (13,584)
  Net cash flows from operations - discontinued
   operations                                          --     (751)
                                                 --------  --------

                                                 (33,903)  (14,335)
                                                 --------  --------
  Investing activities
  Purchases of property, plant and equipment,
   net                                            (3,909)   (5,951)
  Payment of deferred purchase consideration           --     (500)
  Purchases of patents, trademarks and other
   intangible assets                                 (81)      (30)

  Other                                                --       296
                                                 --------  --------
  Cash from investing activities - continuing
   operations                                     (3,990)   (6,185)
  Cash from investing activities - discontinued
   operations                                          --     (373)
                                                 --------  --------

                                                  (3,990)   (6,558)
                                                 --------  --------
  Financing activities
  Increase in line of credit facilities            42,551    23,386
  Borrowings under long-term debt                      37        --
  Proceeds from the issuance of common shares         213       207
  Repayment of long-term debt                     (2,004)   (1,102)
  Financing costs                                    (25)        --

  Other                                                28     (188)
                                                 --------  --------
  Cash from financing activities - continuing
   operations                                      40,800    22,303
  Cash from financing activities - discontinued
   operations                                          --        --
                                                 --------  --------

                                                   40,800    22,303
                                                 --------  --------

  Foreign exchange gain on cash held in a
   foreign currency                                   170       207
                                                 --------  --------


  Increase in cash and cash equivalents during
   the period                                       3,077     1,617

  Discontinued operations cash activity
   included above:
   Add: Balance included at beginning of period        --    18,971

   Less: Balance included at end of period             --  (20,135)
                                                 --------  --------

  Cash and cash equivalents - beginning of the
   period                                           2,643     1,752
                                                 --------  --------


  Cash and cash equivalents - end of the period    $5,720    $2,205
                                                 --------  --------



  SunOpta Inc.
  Segmented Information
  For the quarters ended April 2, 2011 and April 3, 2010
  (Expressed in thousands of U.S. dollars)
  (Unaudited)



  -------------------------------------------  --------  -----------  ---------  -------------

                                                                                 Quarter ended

                                                                                 April 2, 2011
                                               --------  -----------  ---------  -------------


                                                SunOpta     Opta      Corporate
                                                Foods     Minerals     Services   Consolidated
                                                  $           $           $            $
                                               --------  -----------  ---------  -------------

  Total revenues from external customers        239,317       21,606         --        260,923
                                               --------  -----------  ---------  -------------

  Segment Operating Income                       10,463        2,451    (1,886)         11,028
                                               --------  -----------  ---------  -------------

  The SunOpta Foods has the following segmented reporting:



                                               --------  -----------  ---------  -------------  --------

                                                                                                 Quarter
                                                                                                 ended
                                                                                                April 2,
                                                                                                  2011
                                               --------  -----------  ---------  -------------  --------


                                                Grains                           International
                                                  and    Ingredients                             SunOpta
                                                Foods                   Fruit        Foods       Foods
                                                  $           $           $            $           $
                                               --------  -----------  ---------  -------------  --------

  Total revenues from external customers        115,601       15,751     37,010         70,955   239,317
                                               --------  -----------  ---------  -------------  --------

  Segment Operating Income                        5,707        1,895        388          2,473    10,463
                                               --------  -----------  ---------  -------------  --------



                                               --------  -----------  ---------  -------------

                                                                                 Quarter ended

                                                                                 April 3, 2010
                                               --------  -----------  ---------  -------------

                                                                      Corporate
                                                SunOpta     Opta
                                                Foods     Minerals     Services   Consolidated
                                                  $           $           $            $
                                               --------  -----------  ---------  -------------

  Total revenues from external customers        198,818       17,931         --        216,749
                                               --------  -----------  ---------  -------------

  Segment Operating Income                       11,391        1,713    (3,482)          9,622
                                               --------  -----------  ---------  -------------

  The SunOpta Foods has the following segmented reporting:



                                               --------  -----------  ---------  -------------  --------

                                                                                                 Quarter
                                                                                                 ended
                                                                                                April 3,
                                                                                                  2010
                                               --------  -----------  ---------  -------------  --------

                                                Grains                           International
                                                  and    Ingredients                             SunOpta
                                                Foods                   Fruit        Foods       Foods
                                                  $           $           $            $           $
                                               --------  -----------  ---------  -------------  --------

  Total revenues from external customers         78,845       18,150     40,340         61,483   198,818
                                               --------  -----------  ---------  -------------  --------

  Segment Operating Income                        5,016        4,212      1,864            299    11,391
                                               --------  -----------  ---------  -------------  --------

  (Segment Operating Income is defined as "Earnings from continuing operations before the following"
   excluding the impact of "other expense, net")


1Non-GAAP Measures

In addition to reporting financial results in accordance with generally accepted accounting principles ("GAAP"), the Company provides information regarding Operating Income and Earnings before interest, taxes, depreciation and amortization ("EBITDA") as additional information about its operating results, which are not measures in accordance with GAAP. The Company believes that these non-GAAP measures assist investors in comparing performance across reporting periods on a consistent basis by excluding items that are not indicative of the Company's core operating performance. The non-GAAP measures of operating income and EBITDA should not be considered in isolation or as a substitute for performance measures calculated in accordance with GAAP.

The Company defines Operating Income as "Earnings from continuing operations before the following" excluding the impact of "Other expense, net"; and EBITDA as Operating Income plus depreciation and amortization. The following is a tabular presentation of Operating income and EBITDA, including a reconciliation to GAAP earnings, which the Company believes to be the most directly comparable GAAP financial measure.



                                       Quarter  Quarter
                                       ended     ended
                                      April 2,   April
                                        2011    3, 2010
                                      --------  -------

  Earnings from continuing
   operations before the following     $10,666   $9,307

  Other expense, net                       362      315
                                      --------  -------
   Operating Income                     11,028    9,622

  Depreciation and amortization          4,833    4,328
                                      --------  -------
  Earnings before interest, taxes,
   depreciation and
  amortization (EBITDA)                $15,861  $13,950
                                      --------  -------


This news release was distributed by GlobeNewswire, www.globenewswire.com

SOURCE: SunOpta Inc.

CONTACT: SunOpta Inc.
Steve Bromley, President & CEO
Eric Davis, Vice President & CFO
Tony Tavares, Vice President & COO
Susan Wiekenkamp, Information Officer
Tel: 905-455-2528, ext 103
[email protected]
Website:  www.sunopta.com
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