SunOpta Announces Q4 and 2006 Year End Results.TORONTO -- SunOpta Inc. (SunOpta or the Company) (Nasdaq:STKL) (TSX TSX Toronto Stock Exchange (TSE before April, 2002) TSX Transfer from Stack Pointer to Index TSX True Space Extension :SOY soy (soi) soybean. soy, n Latin name: Glycine max; part used: seeds (beans); uses: high cholesterol, analgesic, antipyretic, anorexia, hyperactivity, liver conditions; pos-sible use in ) today announced results for the fourth quarter and year ended December 31, 2006. All amounts are expressed in U.S. dollars. The Company achieved record revenues for the three months ended December 31, 2006, realizing its 37th consecutive quarter of increased revenue growth versus the same quarter in the previous year. Revenues in the fourth quarter increased by 33.9% to $163,506,000 compared to $122,070,000 in the fourth quarter of the prior year. Fourth quarter revenues were the highest of any quarter in the Company's history and reflect continued strong growth in core business segments. For the year ended December 31, 2006 revenues increased 40.3% to $598,026,000 as compared to $426,101,000 in the prior year. Internal growth of 16.1% was realized during the year with 18.4% internal growth realized within the SunOpta Food Group. Net earnings in the quarter rose 33.4% to $2,080,000 or $0.04 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. common share as compared to $1,559,000 or $0.03 per diluted common share in the fourth quarter of 2005, after absorbing pre-tax costs of $1,601,000 related to the frozen fruit recall previously announced by SunOpta's subsidiary, Cleugh's Frozen Foods Inc. These costs include $822,000 of direct expenses incurred by SunOpta and our affected customer and $779,000 in costs to voluntarily rework re·work tr.v. re·worked, re·work·ing, re·works 1. To work over again; revise. 2. To subject to a repeated or new process. n. product that was produced during the period in question. This recall was an isolated incident and the Company has captured all the known costs within the fourth quarter. Net earnings for the year were $10,959,000 or $0.19 per diluted common share as compared to $13,558,000 or $0.24 per diluted common share in the previous year which included a dilution gain of $0.08 per diluted common share related to the initial public offering of Opta Minerals. The 2006 results also include a significant segment operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. within the Company's sunflower sunflower, any plant of the genus Helianthus of the family Asteraceae (aster family), annual or perennial herbs native to the New World and common throughout the United States. business of $3,948,000 due to very poor crop conditions as compared to segment operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. in the previous year of approximately $2,000,000. Segment operating income within the SunOpta Food Group increased from $4,670,000 in the fourth quarter of 2005 to $5,385,000, reflecting a 15.3% increase despite the costs associated with the previously noted recall. Segment operating income for the year in the SunOpta Food Group was $23,007,000 as compared to $16,245,000 in 2005, a 41.6 % increase. Segment operating earnings Operating Earnings Profits after subtracting expenses such as marketing, cost of goods sold, administration and general operating costs from revenue. Notes: Tax and interest expenses are not subtracted - operating earnings are synonymous with EBIT (earnings before growth for 2006 was lead by a 323.0% increase in the SunOpta Canadian Food Distribution Group, a 102.2% increase in the SunOpta Fruit Group and a 39.8% increase in the SunOpta Ingredients Group, partially offset by a 26.9% decrease in the Grains and Foods Group due to the sunflower issue. Opta Minerals Inc. realized a significant increase in both revenues and operating income in the fourth quarter and year as compared to 2005. Revenues in the fourth quarter were $16,071,000, representing an 87.7% increase versus revenues of $8,562,000 in the fourth quarter of 2005. Segment operating income increased to $1,462,000 in the quarter, an increase of 263.7%. For the year Opta Minerals achieved revenues of $64,261,000 versus $34,659,000, an increase of 85.4%, and segment operating income increased 80.6% to $6,876,000 as compared to $3,808,000 in the previous year. Interest in the SunOpta BioProcess bi·o·proc·ess n. 1. A technique that produces a biological material, such as a genetically engineered microbial strain, for commercial use. 2. Group's technology and equipment for the pre-treatment of biomass for the production of cellulosic ethanol Cellulosic ethanol is a type of biofuel produced from lignocellulose, a structural material that comprises much of the mass of plants. It is composed mainly of cellulose, hemicellulose and lignin. remains high and the Group is now rapidly expanding its staff and pursuing additional supply contracts and partners. Results for the fourth quarter primarily reflect work on the Celunol contract. Equipment has been shipped as well with respect to the contract with Abener Energia S Energia also called RKK Energia formerly OKB-1 Russian aerospace company that is a major producer of spacecraft, rockets, and missiles. Energia originated in 1946 as a department within a Soviet institute conducting work on long-range missiles. .A. Both of these contracts are expected to be completed in the first half of 2007. During the fourth quarter the Group's proprietary technology was commissioned in China and is currently being operated around the clock in the production of cellulosic ethanol. The Group has been working diligently dil·i·gent adj. Marked by persevering, painstaking effort. See Synonyms at busy. [Middle English, from Old French, from Latin d on its previously announced financing to raise approximately $30 million into this business, which will be used primarily in the construction and ownership cellulosic ethanol production facilities in Canada in partnership with Greenfield Ethanol, Inc. SunOpta has confirmed revenue guidance for 2007 of $740 to $760 million and earnings guidance of $0.35 to $0.40 per diluted common share reflecting continued growth, further leverage in selling, general and administration costs and improved margins resulting from product mix, cost reductions including automation projects and a focus on higher plant utilization. This guidance reflects an approximate increase in revenues of 25% and approximately 100% in net earnings per share. The Company remains well positioned for future growth, augmented by the post year end equity financing Equity Financing The act of raising money for company activities by selling common or preferred stock to individual or institutional investors. In return for the money paid, shareholders receive ownership interests in the corporation. which raised gross proceeds of $53.8 million, leaving the Company with a long term debt to equity ratio The debt to equity ratio (D/E) is a financial ratio indicating the relative proportion of equity and debt used to finance a company's assets. It is equal to total debt divided by shareholders' equity. of approximately 0.33:1.00 and providing financial resources to grow the Company through a combination of internal growth and strategic acquisitions for the next several years. The Company had total assets at December 31, 2006 of $404,730,000 and net book value of $3.06 per share. Steve Bromley, President and Chief Executive Officer of SunOpta commented, "Clearly 2006 was a year of significant improvements in many of our businesses including an internal growth rate within the range of 15 to 20% which we strive to achieve plus the addition of six strategic acquisitions which are all off to great starts in their first year. We have made a number of inroads inroads Noun, pl make inroads into to start affecting or reducing: my gambling has made great inroads into my savings inroads npl to make inroads into [+ on improving profitability as we leverage our assets, capital investments, IT infrastructure and selling, general and administrative platform. Unfortunately, these improvements were tempered by the results of our Sunflower business and the expense in dealing with our recall costs. We are confident however that these incidents are behind us and in dealing with them we have strengthened our organization including our risk management procedures and quality programs. We look forward to an exciting and profitable 2007." About SunOpta Inc. SunOpta Inc. is an operator of high-growth ethical businesses, focusing on integrated business models in the natural and organic food, supplements and health and beauty markets. The Company has three business units: the SunOpta Food Group, which specializes in sourcing, processing and distribution of natural and organic food products integrated from seed through packaged products; the Opta Minerals Group, a producer, distributor, and recycler of environmentally friendly Environmentally friendly, also referred to as nature friendly, is a term used to refer to goods and services considered to inflict minimal harm on the environment.[1] industrial materials; and the SunOpta BioProcess Group (soon to become SunOpta BioProcess Inc.) which engineers and markets proprietary steam explosion technology systems for the pulp, bio-fuel and food processing Food processing is the set of methods and techniques used to transform raw ingredients into food for consumption by humans or animals. The food processing industry utilises these processes. industries. Each of these business units has proprietary products and services that give it a solid competitive advantage in its sector. Forward-Looking Statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. Certain statements included in this press release may constitute "forward-looking statements" within the meaning of the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. These forward-looking statements include, but are not limited to references to business strategies, competitive strengths, goals, capital expenditure plans, business and operational growth plans and references to the future growth of the business. These forward looking statements are based on certain assumptions and analyses made by the Company in light of its experience and its interpretation of current conditions, historical trends and expected future developments as well as other factors that the Company believes are appropriate in the circumstance. However, whether actual results and developments will agree with expectations and predications of the Company is subject to many risks and uncertainties including, but not limited to; general economic, business or market risk conditions; competitive actions by other companies; changes in laws or regulations or policies of local governments, provinces and states as well as the governments of United States and Canada, many of which are beyond the control of the Company. 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. [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] 1 (Segment Operating Income is defined as earnings (loss) before other income (expense), interest expense (net), income taxes and minority interest as disclosed in the companies consolidated financial statements Consolidated Financial Statements The combined financial statements of a parent company and its subsidiaries. Notes: Because consolidated financial statements present an aggregated look at the financial position of a parent and its subsidiaries, they enable you to gauge ) |
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