SunOpta Reports Strong Rise in 2010 Revenues

For fiscal 2010, the Company realized operating income of $41.4 million or 4.6% of revenues versus operating income in the prior year of $12.2 million or 1.5% of revenues. During fiscal 2010, all operating segments realized increased revenues and operating income versus the prior year.

3/9/2011 --- SunOpta Inc.has reported that for fiscal 2010 the Company realized revenues of $898.9 million versus revenues of $819.0 million in 2009, a year over year increase of 9.8%. After adjusting for movements in foreign exchange rates, commodity related pricing and the impact of acquisitions, revenues increased approximately 10.6% on a consolidated basis.

For fiscal 2010, the Company realized operating income of $41.4 million or 4.6% of revenues versus operating income in the prior year of $12.2 million or 1.5% of revenues. During fiscal 2010, all operating segments realized increased revenues and operating income versus the prior year.

On a GAAP basis, the Company realized net income of $61.1 million or $0.92 per diluted common share in fiscal 2010 versus a net loss in 2009 of $6.8 million or $0.10 per diluted common share. Included in the 2010 results was a net gain after tax on the sale of the Canadian Food Distribution assets of $11.9 million or $0.18 per diluted common share and a net gain after tax on the sale of SunOpta BioProcess Inc. of $34.9 million or $0.53 per diluted common share, offset by certain non-cash goodwill, impairment charges and other items of $6.9 million after tax or $0.11 per diluted common share.

Adjusted earnings from operations1 in fiscal 2010 were $21.2 million or $0.32 per diluted common share. Absorbed in these results were additional pre-tax costs of approximately $5.0 million, including legal and professional fees and costs related to ongoing facility and operational rationalizations which are not expected to recur.

The Company realized EBITDA in fiscal 2010 of $59.2 million as compared to $29.2 million in the prior year, an increase of approximately 103%.

For the fourth quarter of 2010 the Company realized revenues of $230.4 million versus fourth quarter 2009 revenues of $199.3 million, a year over year increase of 15.6%. After adjusting for movements in foreign exchange rates, commodity related pricing and the impact of acquisitions, revenue increased approximately 10.6% on a consolidated basis.

Operating income for the fourth quarter of 2010 increased to $9.9 million or 4.3% of revenues versus operating income in the prior year of $2.6 million or 1.3% of revenues.

For the fourth quarter of fiscal 2010 the Company reported net income on a GAAP basis of $1.9 million or $0.03 per diluted common share versus a net loss in the fourth quarter of 2009 of $2.2 million or $0.03 loss per diluted common share. Included in the fourth quarter 2010 results were the negative impact of results from discontinued operations of $0.7 million after tax, or $0.01 per diluted common share, plus the net impact of after tax costs related to the fourth quarter acquisitions, non-cash stock compensation costs in a subsidiary and non-cash pension wind-up costs totalling $1.9 million, or $0.03 per diluted common share.

Adjusted earnings from operations1 for the fourth quarter of 2010 were $4.5 million or $0.07 per diluted common share or $0.08 per diluted common share using the annual effective tax rate for fiscal 2010. Absorbed in these results were additional pre-tax costs of approximately $0.4 million related primarily to ongoing facility and operational rationalizations which are not expected to recur.

EBITDA for the fourth quarter of fiscal 2010 increased 126% to $15.4 million versus $6.8 million in the fourth quarter of 2009, indicative of the improved operating performance realized within the business.

At January 1, 2011 the Company's balance sheet reflects a current working capital ratio of 1.42 to 1.00, long-term debt to equity ratio of 0.22 to 1.00 and total debt to equity ratio of 0.48 to 1.00. On December 20, 2010 the Company refinanced its syndicated long-term debt and operating lines through October 2012. At January 1, 2011 the Company had total assets of $609.7 million and a net book value of $4.44 per outstanding share.

Steve Bromley, President and Chief Executive Officer of SunOpta, commented, "We are very pleased with our fourth quarter and fiscal 2010 results. The fiscal 2010 results represent record net earnings and record operating income for the Company. Our earnings from operations have shown significant improvement and reflect our continued efforts to improve returns in our core operating segments. While we are pleased with the improvements realized, we believe there is further opportunity, and we are working to realize continued improvements in support of our goal of 8% earnings from operations. Over the course of 2010 we completed a number of strategic transactions, acquiring two core businesses and disposing of two non-core businesses, all in support of our mission to build a focused global leader in natural and organic foods. We remain confident that our focus on margin improvement and asset management, when combined with strong consumer interest in health and wellness, positions our Company for long-term success."