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8-K - FORM 8-K - SunOpta Inc.form8k.htm

Exhibit 99.1


FOR IMMEDIATE RELEASE

SUNOPTA INC. ANNOUNCES FISCAL 2010 AND FOURTH QUARTER 2010 RESULTS

Toronto, Ontario, March 8, 2011 - SunOpta Inc. (“SunOpta” or “the Company”) (NASDAQ:STKL; TSX:SOY), a leading global company focused on natural, organic and specialty foods and natural health products, today announced financial results for the fourth quarter and fiscal year ended January 1, 2011 (“fiscal 2010”). All amounts are expressed in U.S. dollars and results are reported in accordance with U.S. GAAP, except where specifically noted.

RESULTS FOR THE FISCAL YEAR ENDED JANUARY 1, 2011

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 income1 of $41.4 million or 4.6% of revenues versus operating income1 in the prior year of $12.2 million or 1.5% of revenues. During fiscal 2010, all operating segments realized increased revenues and operating income1 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 EBITDA1 in fiscal 2010 of $59.2 million as compared to $29.2 million in the prior year, an increase of approximately 103%.

1 See discussion of Non-GAAP Measures


RESULTS FOR THE QUARTER ENDED JANUARY 1, 2011

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 income1 for the fourth quarter of 2010 increased to $9.9 million or 4.3% of revenues versus operating income1 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.

EBITDA1 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.”

1 See discussion of Non-GAAP Measures


The Company plans to host a conference call at 10:00 a.m. Eastern Time on Wednesday, March 9th, 2011 to discuss these 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 March 9th and 16th with the toll free dial-in number 1–800-642-1687 or 706-645-9291 followed by pass code: 40966049#.

About SunOpta Inc.

SunOpta Inc. is a leading global company focused on natural, organic and specialty foods and natural health products. 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.

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 improve returns in our key operating segments, our mission to build a global leader, our goal for earnings from operations, our focus on margin improvement and asset management and positioning for long-term success. The terms and phrases “continue”, “improve”, “remain confident”, “positions”, 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.

For further information, please contact:

SunOpta Inc.
Steve Bromley, President & CEO
Eric Davis, Vice President & CFO
Tony Tavares, Chief Operating Officer
Susan Wiekenkamp, Information Officer
Tel: 905-455-2528, ext 103
susan.wiekenkamp@sunopta.com
Website: www.sunopta.com



SunOpta Inc.
Consolidated Statements of Operations
For the years ended January 1, 2011 and December 31, 2009
(Expressed in thousands of U.S. dollars, except per share amounts)
(Unaudited)

    January 1, 2011     December 31, 2009     Change  
  $    $         
                   
Revenues   898,931     819,040     9.8%  
                   
Cost of goods sold   754,487     709,981     6.3%  
                   
Gross profit   144,444     109,059     32.4%  
                   
Warehousing and distribution expenses   3,703     4,223     -12.3%  
Selling, general and administrative expenses   96,341     88,504     8.9%  
Intangible asset amortization   4,675     4,648     0.6%  
Other expense (income), net   10,945     2,245     387.5%  
Goodwill impairment   1,654     8,841     -81.3%  
Foreign exchange gain   (1,652 )   (523 )   -215.9%  
                   
Earnings from continuing operations before the following   28,778     1,121     2467.2%  
                   
Interest expense, net   9,749     13,839     -29.6%  
                   
Earnings (loss) from continuing operations                  
     before income taxes   19,029     (12,718 )   249.6%  
                   
Provision for (recovery of) income taxes   5,463     (3,201 )   270.7%  
                   
Earnings (loss) from continuing operations   13,566     (9,517 )   242.5%  
                   
Discontinued operations                  
     (Loss) earnings from discontinued operations, net of income taxes   (14,569 )   (273 )   n/m  
     Gain on sale of discontinued operations, net of income taxes   62,950     -     n/m  
                   
Earnings (loss) from discontinued operations, net of taxes   48,381     (273 )   n/m  
                   
Earnings (loss)   61,947     (9,790 )   732.8%  
                   
Earnings (loss) attributable to non-controlling interests   881     (3,027 )   129.1%  
                   
Earnings (loss) attributable to SunOpta Inc.   61,066     (6,763 )   1002.9%  
                   
Earnings (loss) per share – basic                  
     -from continuing operations   0.20     (0.10 )      
     -from discontinued operations   0.74     -        
    0.94     (0.10 )      
                   
Earnings (loss) per share – diluted                  
     -from continuing operations   0.19     (0.10 )      
     -from discontinued operations   0.73     -        
    0.92     (0.10 )      



SunOpta Inc.
Consolidated Statements of Operations
For the quarters ended January 1, 2011 and December 31, 2009
(Expressed in thousands of U.S. dollars, except per share amounts)
(Unaudited)

    January 1, 2011     December 31, 2009     Change  
  $           
                   
Revenues   230,392     199,268     15.6%  
                   
Cost of goods sold   193,766     171,122     13.2%  
                   
Gross profit   36,626     28,146     30.1%  
                   
Warehousing and distribution expenses   809     1,189     -32.0%  
Selling, general and administrative expenses   24,909     23,671     5.2%  
Intangible asset amortization   1,201     1,071     12.1%  
Other expense, net   2,133     2,587     -17.5%  
Goodwill impairment   -     500     -100.0%  
Foreign exchange gain   (158 )   (367 )   56.9%  
                   
Earnings (loss) from continuing operations before the following   7,732     (505 )   1631.1%  
                   
Interest expense, net   2,124     3,680     -42.3%  
                   
Earnings (loss) from continuing operations before income taxes   5,608     (4,185 )   234.0%  
                   
Provision for (recovery of) income taxes   2,791     (1,995 )   240.0%  
                   
Earnings (loss) from continuing operations   2,817     (2,190 )   228.6%  
                   
Discontinued operations                  
     Loss from discontinued operations, net of income taxes   -     (303 )   n/m  
     Loss on sale of discontinued operations, net of income taxes   (726 )   -     n/m  
                   
Loss from discontinued operations, net of taxes   (726 )   (303 )   n/m  
                   
Earnings (loss)   2,091     (2,493 )   183.9%  
                   
Earnings (loss) attributable to non-controlling interests   171     (279 )   161.3%  
                   
Earnings (loss) attributable to SunOpta Inc.   1,920     (2,214 )   186.7%  
                   
Earnings (loss) per share – basic                  
     -from continuing operations   0.04     (0.02 )      
     -from discontinued operations   (0.01 )   (0.01 )      
    0.03     (0.03 )      
                   
Earnings (loss) per share – diluted                  
     -from continuing operations   0.04     (0.02 )      
     -from discontinued operations   (0.01 )   (0.01 )      
    0.03     (0.03 )      



SunOpta Inc.
Consolidated Balance Sheets
As at January 1, 2011 and December 31, 2009
(Expressed in thousands of U.S. dollars, except per share amounts)
(Unaudited)

    January 1, 2011     December 31, 2009  
  $     
             
Assets            
             
Current assets            
     Cash and cash equivalents   2,643     1,752  
     Accounts receivable   98,875     78,483  
     Inventories   200,278     155,882  
     Prepaid expenses and other current assets   30,041     10,001  
     Current income taxes recoverable   -     442  
     Deferred income taxes   870     5,457  
     Current assets held for sale   -     56,140  
    332,707     308,157  
             
Investments   33,345     -  
Property, plant and equipment   120,055     105,220  
Goodwill   48,558     31,431  
Intangible assets   60,200     55,229  
Deferred income taxes   11,889     15,257  
Other assets   2,930     2,876  
Non-current assets held for sale   -     33,120  
             
    609,684     551,290  
             
Liabilities            
             
Current liabilities            
     Bank indebtedness   75,910     63,481  
     Accounts payable and accrued liabilities   124,031     87,519  
     Customer and other deposits   2,858     1,064  
     Income taxes payable   973     -  
     Other current liabilities   7,674     1,566  
     Current portion of long-term debt   22,247     52,455  
     Current portion of long-term liabilities   571     683  
     Current liabilities held for sale   -     19,135  
    234,264     225,903  
             
Long-term debt   42,735     34,734  
Long-term liabilities   6,642     2,760  
Deferred income taxes   20,808     12,708  
Non-current liabilities held for sale   -     487  
    304,449     276,592  
             
Preferred shares of a subsidiary company held for sale   -     28,187  
             
Equity            
SunOpta Inc. shareholders’ equity            
     Capital Stock
     65,500,091 common shares (December 31, 2009 - 64,982,968)
  180,661
  178,694
     Additional paid in capital   12,336     7,934  
     Retained earnings   95,212     34,146  
     Accumulated other comprehensive income   2,833     12,079  
    291,042     232,853  
Non-controlling interest   14,193     13,658  
Total equity   305,235     246,511  
             
    609,684     551,290  



SunOpta Inc.
Consolidated Statements of Cash Flows
For the years ended January 1, 2011 and December 31, 2009
(Expressed in thousands of U.S. dollars, except per share amounts)
(Unaudited)

    January 1, 2011     December 31, 2009  
  $     
             
Cash provided by (used in)            
             
Operating activities            
     Earnings (loss)   61,947     (9,790 )
     Earnings (loss) from discontinued operations   48,381     (273 )
     Earnings (loss) from continuing operations   13,566     (9,517 )
             
Items not affecting cash            
     Amortization   17,859     17,030  
     Unrealized gain on foreign exchange   (977 )   (1,022 )
     Deferred income taxes   1,853     (2,250 )
     Stock-based compensation   2,764     1,425  
     Goodwill impairment   1,654     8,841  
     Impairment of long-lived assets   7,984     1,800  
     Other   (1,420 )   (508 )
Changes in non-cash working capital, net of businesses acquired   (33,575 )   41,229  
Net cash flows from operations - continuing operations   9,708     57,028  
Net cash flows from operations - discontinued operations   (8,400 )   (12,140 )
    1,308     44,888  
Investing activities            
Acquisition of businesses, net of cash acquired   (43,761 )   -  
Purchases of property, plant and equipment   (19,698 )   (11,538 )
Proceeds from the sale of long-lived assets   36     1,076  
Purchases of patents, trademarks and other intangible assets   (662 )   (216 )
Payment of deferred purchase consideration   (1,388 )   (1,856 )
Other   328     259  
Cash from investing activities - continuing operations   (65,145 )   (12,275 )
Cash from investing activities - discontinued operations   52,298     (1,857 )
    (12,847 )   (14,132 )
Financing activities            
Increase (decrease) in line of credit facilities   14,328     (5,644 )
Borrowings under long-term debt   30,217     719  
Proceeds from the issuance of common shares   1,883     836  
Repayment of long-term debt   (52,423 )   (29,438 )
Deferred financing costs   (642 )   (2,198 )
Other   (169 )   (14 )
Cash from financing activities - continuing operations   (6,806 )   (35,739 )
Cash from financing activities - discontinued operations   -     -  
    (6,806 )   (35,739 )
             
Foreign exchange gain on cash held in a foreign subsidiary   265     951  
             
Decrease in cash and cash equivalents during the period   (18,080 )   (4,032 )
             
Discontinued operations cash activity included above:            
     Add: Balance included at beginning of period   18,971     22,877  
     Less: Balance included at end of period   -     (18,971 )
             
Cash and cash equivalents - beginning of the period   1,752     1,878  
             
Cash and cash equivalents - end of the period   2,643     1,752  



SunOpta Inc.
Consolidated Statements of Cash Flows
For the quarters ended January 1, 2011 and December 31, 2009
(Expressed in thousands of U.S. dollars, except per share amounts)
(Unaudited)

    January 1, 2011     December 31, 2009  
  $     
             
Cash provided by (used in)            
             
Operating activities            
     Earnings (loss)   2,091     (2,493 )
     Loss from discontinued operations   (726 )   (302 )
     Earnings (loss) from continuing operations   2,817     (2,191 )
             
Items not affecting cash            
     Amortization   5,509     4,224  
     Unrealized gain on foreign exchange   (388 )   (619 )
     Deferred income taxes   2,040     (1,896 )
     Stock-based compensation   897     354  
     Goodwill impairment   -     500  
     Impairment of long-lived assets   -     804  
     Other   (3,020 )   1,223  
Changes in non-cash working capital, net of businesses acquired   (23,552 )   26,601  
Net cash flows from operations - continuing operations   (15,697 )   29,000  
Net cash flows from operations - discontinued operations   -     (10,332 )
    (15,697 )   18,668  
Investing activities            
Acquisition of businesses, net of cash acquired   (43,761 )   -  
Purchases of property, plant and equipment   (6,131 )   (2,048 )
Proceeds from the sale of long-lived assets   14     2,576  
Purchases of patents, trademarks and other intangible assets   (262 )   -  
Payment of deferred purchase consideration   (667 )   (1,856 )
Other   47     764  
Cash from investing activities - continuing operations   (50,760 )   (564 )
Cash from investing activities - discontinued operations   -     (504 )
    (50,760 )   (1,068 )
Financing activities            
Increase in line of credit facilities   53,453     4,106  
Borrowings under long-term debt   30,000     -  
Proceeds from the issuance of common shares   1,033     209  
Repayment of long-term debt   (36,096 )   (19,768 )
Deferred financing costs   (442 )   (2,198 )
Other   (82 )   (72 )
Cash from financing activities - continuing operations   47,866     (17,723 )
Cash from financing activities - discontinued operations   -     -  
    47,866     (17,723 )
             
Foreign exchange gain on cash held in a foreign subsidiary   167     125  
             
(Decrease) increase in cash and cash equivalents during the period   (18,424 )   2  
             
Discontinued operations cash activity included above:            
     Add: Balance included at beginning of period   -     429  
             
Cash and cash equivalents - beginning of the period   21,067     1,321  
             
Cash and cash equivalents - end of the period   2,643     1,752  



SunOpta Inc.
Segmented Information
For the years ended January 1, 2011 and December 31, 2009
(Unaudited)
(Expressed in thousands of U.S. dollars)
 

Year ended  
January 1, 2011  
    SunOpta           Corporate        
    Foods     Opta Minerals     Services     Consolidated  
         

 

                       

Total revenues from external customers

  818,063     80,868     -     898,931  

 

                       

Segment Operating Income

  44,837     7,753     (11,213 )   41,377  

SunOpta Foods has the following segmented reporting:

    Year ended  
    January 1, 2011  
    Grains and     Ingredients     Fruit     International     SunOpta  
    Foods Group     Group     Group     Foods Group     Foods  
           
                               

Total revenues from external customers

  365,527     68,363     151,578     232,595     818,063  

 

                             

Segment Operating Income

  26,398     13,172     3,615     1,652     44,837  

    Year ended  
    December 31, 2009  
    SunOpta           Corporate        
    Foods     Opta Minerals     Services     Consolidated  
         
                         

Total revenues from external customers

  756,517     62,523     -     819,040  

 

                       

Segment Operating Income

  17,660     1,161     (6,614 )   12,207  

SunOpta Foods has the following segmented reporting:

    Year ended  
    December 31, 2009  
    Grains and     Ingredients     Fruit     International     SunOpta  
    Foods Group     Group     Group     Foods Group     Foods  
           
                               

Total revenues from external customers

  325,038     64,657     147,443     219,379     756,517  

 

                             

Segment Operating Income

  18,044     8,691     (4,073 )   (5,002 )   17,660  

(Segment Operating Income is defined as "Earnings before the following" excluding the impact of "Other expense (income), net" and "Goodwill impairment")



SunOpta Inc.
Segmented Information
For the quarters ended January 1, 2011 and December 31, 2009
(Unaudited)
(Expressed in thousands of U.S. dollars)
 

    Quarter ended  
    January 1, 2011  
    SunOpta           Corporate        
    Foods     Opta Minerals     Services     Consolidated  
         
                         

Total revenues from external customers

  209,017     21,375     -     230,392  

 

                       

Segment Operating Income

  10,918     1,529     (2,582 )   9,865  

SunOpta Foods has the following segmented reporting:

    Quarter ended  
    January 1, 2011  
    Grains and     Ingredients     Fruit     International     SunOpta  
    Foods Group     Group     Group     Foods Group     Foods  
           
                               

Total revenues from external customers

  107,642     15,431     32,102     53,842     209,017  

 

                             

Segment Operating Income

  8,841     2,850     (252 )   (521 )   10,918  

    Quarter ended  
    December 31, 2009  
    SunOpta           Corporate        
    Foods     Opta Minerals     Services     Consolidated  
         
                         

Total revenues from external customers

  182,555     16,713     -     199,268  

 

                       

Segment Operating Income

  3,609     732     (1,759 )   2,582  

SunOpta Foods has the following segmented reporting:

    Quarter ended  
    December 31, 2009  
    Grains and     Ingredients     Fruit     International     SunOpta  
    Foods Group     Group     Group     Foods Group     Foods  
           
                               

Total revenues from external customers

  74,692     17,519     34,112     56,232     182,555  

 

                             

Segment Operating Income

  3,639     3,120     (1,794 )   (1,356 )   3,609  

(Segment Operating Income is defined as "Earnings before the following" excluding the impact of "Other expense (income), net" and "Goodwill impairment")


Non-GAAP Measures

In addition to reporting financial results in accordance with generally accepted accounting principles (“GAAP”), the Company provides information regarding Operating income, Earnings before interest, taxes, depreciation and amortization (“EBITDA”) and Adjusted earnings from operations 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, EBITDA, and Adjusted earnings from operations 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 (income), net” and “Goodwill impairment”; 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.

    Year ended     Year ended  
    January 1, 2011     December 31, 2009  
  $     
             
Earnings (loss) from continuing operations   13,566     (9,517 )
             
Provision for (recovery of) income taxes   5,463     (3,201 )
Interest expense, net   9,749     13,839  
Other expense (income), net   10,945     2,245  
Goodwill impairment   1,654     8,841  
     Operating income   41,377     12,207  
Depreciation and amortization   17,859     17,030  
     Earnings before interest, taxes, depreciation and amortization (EBITDA)   59,236     29,237  

    Quarter ended     Quarter ended  
    January 1, 2011     December 31, 2009  
  $     
             
Earnings (loss) from continuing operations   2,817     (2,191 )
             
Provision for (recovery of) income taxes   2,791     (1,994 )
Interest expense, net   2,124     3,680  
Other expense (income), net   2,133     2,587  
Goodwill impairment   -     500  
     Operating income   9,865     2,582  
Depreciation and amortization   5,509     4,224  
     Earnings before interest, taxes, depreciation and amortization (EBITDA)   15,374     6,806  


Adjusted earnings from operations and Adjusted earnings from operations per diluted share are non-GAAP measures. During the quarter and year ended January 1, 2011, the Company recognized certain gains and recorded specific expenses against income that we do not believe are reflective of normal business operations. As a result, earnings attributable to SunOpta Inc. and earnings per diluted share are adjusted to arrive at Adjusted earnings from operations and Adjusted earnings from operations per diluted share. The following is a tabular presentation of Adjusted earnings from operations and Adjusted earnings from operations per diluted share, including a reconciliation to GAAP earnings attributable to SunOpta Inc. and earnings per diluted share, which the Company believes to be the most directly comparable GAAP financial measure.

          Adjusted earnings  
    Year ended     per diluted share  
    January 1, 2011     for the period  
  $    $   
             
Earnings attributable to SunOpta Inc.   61,066     0.92  
     Adjusted for:            
     Gain on sale of discontinued operations, net of taxes   (62,950 )   (0.95 )
     Gain on dilution of SunOpta BioProcess Inc.'s ownership
             position in Xylitol Canada
  (1,242 )   (0.02 )
     Reversal of tax valuation allowance at SunOpta Inc., net of
             valuation allowance recorded at Opta Minerals
 
(350
)  
(0.01
)
     Costs included in discontinued operations as a result of the sale
             of the Canadian food distribution assets and SunOpta
             BioProcess Inc., net of taxes of $388
 

16,183
   

0.25
 
     Impairment of long-lived assets and goodwill, net of taxes of $2,320   6,367     0.10  
     Severance and closure costs at our natural health products
             operation and our brokerage operation, net of taxes of $345
 
662
   
0.01
 
     Non-cash accounting charge on the wind-up of a defined
             benefit pension plan
 
588
   
0.01
 
      Costs incurred to complete acquisitions of Dahlgren & Company
             Inc. and Edner of Nevada, Inc.
 
547
   
0.01
 
      Non-cash compensation costs related to cancelled stock options
             recorded at Opta Minerals, net of $146 allocated to
             non-controlling interests
 

289
   

-
 
Adjusted earnings from operations   21,160     0.32  



          Adjusted earnings  
    Quarter ended     per diluted share  
    January 1, 2011     for the period  
  $    $   
             
Earnings attributable to SunOpta Inc.   1,920     0.03  
     Adjusted for:            
     Loss on sale of discontinued operations, net of taxes   726     0.01  
     Non-cash accounting charge related to wind up of a defined
             benefit pension plan
 
588
   
0.01
 
     Costs incurred to complete acquisitions of Dahlgren & Company
              Inc. and Edner of Nevada, Inc.
 
547
   
0.01
 
      Non-cash compensation costs related to cancelled stock options
             recorded at Opta Minerals, net of $146 allocated to
             non-controlling interests
 

289
   

0.01
 
     Costs to close Chicago administrative facility, net of taxes of $122   249     -  
     Non-cash income tax valuation allowance recorded at Opta Minerals   199     -  
Adjusted earnings from operations   4,518     0.07  
             
Adjusted earnings from operations   4,518     0.07  
     Adjusted for:            
     Provision for income taxes at the annualized 2010 effective tax rate   1,066     0.01  
Adjusted earnings from operations, normalized for tax rate   5,584     0.08