SunOpta (US:STKL)2025-11-05 22:06Financial Performance - Revenue from continuing operations increased 16.8% to $205.4 million compared to $175.9 million in the prior year period[7] - Earnings from continuing operations were $0.8 million, a significant improvement from a loss of $6.2 million in the prior year[11] - Adjusted EBITDA from continuing operations increased 13.4% to $23.6 million compared to $20.8 million in the prior year[12] - Adjusted earnings per share from continuing operations were $0.05 compared to $0.02 in the prior year[12] - Operating income increased significantly to $6,866 compared to $807 in the same quarter last year, reflecting a substantial operational improvement[23] - Net earnings from continuing operations were $816, a turnaround from a loss of $6,214 in the prior year quarter[23] - Adjusted earnings from continuing operations for the first three quarters ended September 27, 2025, were $15,645,000, up from $5,859,000 in the prior year, representing a growth of 167%[30] - Adjusted EBITDA from continuing operations for the third quarter ended September 27, 2025, was $23,580,000, compared to $20,788,000 in the same quarter of 2024, indicating a year-over-year increase of 13.6%[33] - The company’s earnings from continuing operations attributable to common shareholders for the third quarter were $816,000, compared to a loss of $6,351,000 in the same quarter of 2024[30] Revenue Outlook - The company is updating its 2025 revenue outlook to $812 - 816 million, and for 2026, the outlook is $865 - 880 million[15] - Revenues for the quarter ended September 27, 2025, were $205,410, an increase of 16.8% compared to $175,856 for the same quarter in 2024[23] - Reported revenue for the third quarter ended September 27, 2025, was $5,962,000, compared to $1,784,000 for the same period in 2024, reflecting a significant increase[30] Cash Flow and Assets - Cash provided by operating activities of continuing operations was $34.1 million for the first three quarters of fiscal 2025, compared to $19.2 million in the prior year[13] - Cash provided by operating activities of continuing operations was $34,124, up from $19,221 in the same period last year[25] - Total assets as of September 27, 2025, were $694.1 million, with total debt of $265.8 million[13] - Total assets as of September 27, 2025, increased to $694,102 from $668,527 at the end of December 2024[24] - Current liabilities rose to $193,426 from $169,434, primarily due to an increase in accounts payable and short-term debt[24] - Total debt as of September 27, 2025, is $265,785,000, with net debt at $263,560,000 after accounting for cash and cash equivalents of $2,225,000[37] Operational Developments - A new aseptic manufacturing line is being announced at the Midlothian, Texas facility, which is already over 50% subscribed and expected to come online in late 2026[6] - The company reported a net loss from discontinued operations of $1,814 in the previous year, which has been eliminated in the current reporting period[25] - The company incurred asset impairment charges of $2,565,000 in the third quarter of 2025, which were not present in the same quarter of 2024[33] - The exit from aseptic totes resulted in charges of $1,423,000 in the third quarter of 2025, with no comparable charges in the previous year[33] Financial Ratios - The company expects to maintain a net leverage ratio of 2.8x through the end of the fiscal year[13] - Net leverage as of September 27, 2025, is 2.8x, compared to 3.0x as of December 28, 2024[37] - The company’s accumulated deficit improved to $(346,511) from $(355,982) year-over-year, indicating a reduction in losses[24] Other Financial Metrics - Gross profit increased by $2.6 million, or 11.4%, to $25.5 million, with a gross margin of 12.4%[9] - Gross profit for the quarter was $25,467, resulting in a gross margin of 12.4%, while the adjusted gross margin improved to 13.6%[27] - The reported gross margin for the third quarter was 14.1%, while the adjusted gross margin was 14.7%[30] - Interest expense, net for the third quarter was $5,424,000, a decrease from $6,762,000 in the prior year[33] - The company reported a loss on sale of receivables of $603,000 in the third quarter, compared to $236,000 in the same period of 2024[33] - Wastewater haul-off charges for the third quarter amounted to $1,145,000, down from $2,180,000 in the same quarter of the previous year[33] - The weighted-average common shares outstanding increased slightly to 118,245, compared to 116,841 in the same quarter last year[23]