SunOpta (US:STKL)2024-11-05 22:05Revenue and Profitability - Revenue from continuing operations increased 15.5% to $176.2 million compared to $152.5 million in the prior year period, driven by 20.6% volume growth [2] - Adjusted EBITDA from continuing operations increased 12.6% to $21.5 million compared to $19.1 million in the prior year period [10] - Gross profit increased 16.4% to $23.6 million, with a gross profit margin of 13.4% compared to 13.3% in the prior year [7] - Adjusted earnings from continuing operations were $2.5 million or $0.02 per diluted share, compared to $0.5 million or $0.00 per diluted share in the prior year [10] - Adjusted gross margin for the third quarter of 2024 was 17.0%, compared to 16.4% in the third quarter of 2023, indicating an improvement of 0.6 percentage points [24] - Adjusted earnings from continuing operations for the first three quarters of 2024 were $7,272 million, representing an increase from $3,390 million in 2023 [35] Loss and Improvement - Loss from continuing operations was $5.5 million, an improvement from a loss of $5.7 million in the prior year period [3] - The company reported a net loss of $7,756 thousand for the three quarters ended September 28, 2024, a significant improvement from a net loss of $163,284 thousand for the same period in 2023 [21] - For the quarter ended September 28, 2024, the loss from continuing operations was $5,498 million, an improvement from a loss of $5,680 million in the same quarter of 2023 [31] - For the first three quarters of 2024, the loss from continuing operations attributable to common shareholders was $5,843 million, compared to $21,710 million for the same period in 2023 [35] Cash Flow and Operating Activities - Cash provided from operating activities of continuing operations was $19.2 million, up from cash used of $8.4 million in the same period last year [11] - Cash provided by operating activities for the three quarters ended September 28, 2024, was $16,911 thousand, compared to $10,413 thousand for the same period in 2023, marking a year-over-year increase of approximately 62.5% [21] - Cash, cash equivalents, and restricted cash at the end of the period increased to $10,636 thousand, up from $3,544 thousand at the end of September 30, 2023, indicating a year-over-year increase of approximately 200% [21] Assets and Liabilities - Total assets as of September 28, 2024, were $699.3 million, with total debt of $289.9 million [11] - Total assets increased to $699,326 thousand as of September 28, 2024, up from $669,424 thousand on December 30, 2023, representing a growth of approximately 4.3% [20] - Current assets rose to $192,922 thousand, compared to $184,245 thousand at the end of 2023, reflecting an increase of about 4.6% [20] - Total liabilities increased to $523,164 thousand as of September 28, 2024, from $493,890 thousand at the end of 2023, representing an increase of about 5.9% [20] Business Operations and Initiatives - The exit from the smoothie bowls category resulted in a 2.3% reduction in revenue [6] - The company continues to have a substantial pipeline of new business opportunities and is focused on driving increasing returns on invested capital [5] - The company incurred start-up costs of $4.1 million in the third quarter of 2024, down from $4.7 million in the same quarter of 2023, indicating a reduction in costs associated with production ramp-up [25] - The company has initiated operational productivity initiatives, incurring $0.8 million in professional fees related to these efforts in the third quarter of 2024 [32] Other Financial Metrics - Interest expense, net for the first three quarters of 2024 was $19,222 million, slightly down from $19,391 million in the same period of 2023 [36] - The company incurred start-up costs of $7,655 million in the first three quarters of 2024, a decrease from $17,855 million in the same period of 2023 [36] - The unrealized foreign exchange loss on restricted cash for the first three quarters of 2024 was $1,363 million, with no such loss reported in the same period of 2023 [36] - The company reported a gain on the sale of the smoothie bowls product line of $1,800 million in the first three quarters of 2024 [36] - Depreciation and amortization expenses for the first three quarters of 2024 totaled $27,005 million, compared to $22,873 million in 2023 [36]