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

Exhibit 99.1

FOR IMMEDIATE RELEASE

SUNOPTA ANNOUNCES THIRD QUARTER 2013 RESULTS

Record Third Quarter and Year-to-Date Revenues

Toronto, November 5, 2013 - SunOpta Inc. (“SunOpta” or “the Company”) (NASDAQ:STKL) (TSX:SOY), a leading global company focused on natural, organic and specialty foods, today announced financial results for the third quarter and first nine months ended September 28, 2013. All amounts are expressed in U.S. dollars and results are reported in accordance with U.S. GAAP, except where specifically noted.

Third Quarter 2013 Highlights

  • Record third quarter revenues of $302.7 million, an increase of 8.4%
  • Operating income1 of $9.8 million, or 3.2% of revenues
  • EBITDA1 of $15.3 million, or 5.1% of revenues
  • Adjusted earnings from continuing operations1 of $4.8 million, or $0.07 per diluted common share
  • GAAP earnings per diluted common share from continuing operations of $0.04 or $2.9 million, after accounting for non-cash impairment charges associated with a non-core investment in Opta Minerals Inc.

Year-to-date 2013 Highlights

  • Record year-to-date revenues of $896.7 million, an increase of 9.2%
  • Operating income1 of $33.8 million, or 3.8% of revenues
  • EBITDA1 of $50.2 million, or 5.6% of revenues
  • Adjusted earnings from continuing operations1 of $17.1 million, or $0.25 per diluted common share
  • GAAP loss per common share from continuing operations of $0.10 or $6.9 million, after accounting for non-cash impairment charges associated with non-core investments in Opta Minerals Inc. and Mascoma Corporation

    (all comparisons above are to the third quarter and first nine months of 2012)

“Our record revenues for the quarter and year-to-date periods demonstrate our ability to realize continued momentum in our core natural and organic foods business. We believe that interest in healthy eating is a key long term global trend and we are well positioned to capitalize on future industry growth,” commented Steve Bromley, Chief Executive Officer. “There was strong growth in our value added product offerings during the quarter, and with a number of our expansion projects now coming on line, we look forward to realizing the benefits of these expansions. Our margins in the quarter were negatively impacted by costs related to the start-up and commissioning of our specialty cocoa processing facility in the Netherlands and consumer product facility expansions, combined with continued processing challenges in our sunflower operations as well as the cyclical weakness in the steel and infrastructure segments within our non-core holding, Opta Minerals. We continue to explore strategic options for this non-core holding in support of our strategy of becoming a pure-play natural and organic foods company. Looking forward, our internal re-structuring and expansion efforts are progressing well, and while we expect costs associated with these efforts to continue for the next two quarters, we are confident that our re-structured food operations will allow us to simplify our operations, better serve our customers, and will lead to greater alignment between our structure and our strategies.”


Third Quarter 2013 Results

Revenues increased 8.4% to a record $302.7 million compared to $279.3 million in the third quarter of 2012. The increase in consolidated revenues was driven by continued growth in consumer packaged categories including re-sealable pouch products and aseptic beverages, increased demand and prices for internationally sourced organic raw materials, and higher sales volumes of industrial and food service fruit-based ingredients. Excluding the impact of a number of factors including commodity, currency and product rationalizations, revenues in SunOpta Foods increased approximately 10.4% and consolidated revenues increased approximately 8.0% versus the prior year.

Operating income1 was $9.8 million, or 3.2% of revenues, compared to $12.7 million, or 4.5% of revenues in 2012. Operating income was negatively impacted by facility start-up and expansion costs within the International Foods Group and Consumer Products Group, low sunflower processing yields and by-product values in the Grains and Foods Group, as well as Opta Minerals which continued to face cyclical weakness in both the steel and infrastructure sectors and the cost of integrating recent acquisitions.

The Company reported earnings from continuing operations of $2.9 million, or $0.04 per diluted common share, compared to earnings from continuing operations of $5.7 million, or $0.09 per diluted common share for the third quarter of 2012. Included in the results for the third quarter is a non-cash charge of approximately $1.5 million after tax, or $0.02 per diluted common share, related to an impairment of goodwill recognized in the Company’s Opta Minerals operating segment. The third quarter also included other expenses related to severance, facility restructuring and long-lived asset write-downs of approximately $0.4 million after tax, or $0.01 per diluted common share.

Excluding the goodwill impairment and other expenses, adjusted earnings from continuing operations1 in the third quarter of 2013 were $4.8 million, or $0.07 per diluted common share. In addition, earnings for the third quarter include the impact of approximately $2.6 million in pre-tax start-up, expansion and integration costs, or approximately $1.7 million after-tax and minority interest.

EBITDA1 was $15.3 million compared to $17.8 million during the third quarter of 2012.

Year-to-date 2013 Results

Revenues increased 9.2% to a record $896.7 million compared to $821.0 million in the first nine months of 2012. The increase in consolidated revenues was driven by strong demand and increased prices for organic grains and feed products, continued growth in consumer packaged categories including aseptic beverages and re-sealable pouch products, increased demand and prices for internationally sourced organic raw materials, as well as higher sales within Opta Minerals as a result of recent acquisitions. Excluding the impact of a number of factors including commodity, currency and product rationalizations, revenues in SunOpta Foods increased approximately 8.2% and consolidated revenues increased approximately 6.5% versus the prior year.


Operating income1 was $33.8 million, or 3.8% of revenues, as compared to $39.8 million, or 4.9% of revenues, in the first nine months of 2012. Operating earnings were negatively impacted by the factors previously noted related to facility start-up and expansion costs, sunflower processing yields and cyclical weakness at Opta Minerals, offset partially by improved results within the Company’s consumer products and ingredients operations.

The Company incurred a loss from continuing operations of $6.9 million, or $0.10 per common share in the first nine months of 2013, compared to earnings from continuing operations of $18.6 million, or $0.28 per diluted common share, for the first nine months of 2012. Included in the results for the first nine months of 2013 were non-cash charges of approximately $23.0 million after tax, or $0.34 per diluted common share, reflecting the write-down of the Company’s non-core investments in Mascoma and goodwill impairment at Opta Minerals, as well as severance and long-lived asset write-downs which in aggregate amount to a charge to earnings of $0.9 million after tax or $0.01 per diluted common share. After adjusting for these items, adjusted earnings from continuing operations1 in the first nine months of 2013 were $17.1 million, or $0.25 per diluted common share. In addition, earnings for the first nine months of 2013 include the impact of approximately $4.5 million in pre-tax start-up, expansion and integration costs, or approximately $2.8 million after-tax and minority interest.

EBITDA1 was $50.2 million as compared to $54.8 million during the first three quarters of 2012.

Balance Sheet

The Company’s balance sheet remains strong and at September 28, 2013 reflected a net debt to equity ratio of 0.57 to 1.00. At September 28, 2013, the Company had total debt outstanding of $191.4 million, net debt of $184.6 million, total assets of $689.1 million, shareholders’ equity of $324.4 million and a net book value of $4.88 per outstanding share.

Conference Call

The Company plans to host a conference call at 10:00 A.M. Eastern Time on Wednesday, November 6, 2013 to discuss the results for the third quarter of 2013 and recent corporate developments. After opening remarks, there will be a question and answer period. This conference call can be accessed via a link at the Company’s website at www.sunopta.com. To listen to the live call over the Internet, please go to the Company’s website at least 15 minutes early to register, download and install any necessary audio software. Additionally, the call may be accessed with the toll free dial-in number (877) 312-9198 or international dial-in number (631) 291-4622. If you are unable to listen live, the conference call will be archived and can be accessed for approximately 90 days at the Company’s website.

1See discussion of non-GAAP measures

About SunOpta Inc.

SunOpta Inc. is a leading global company focused on natural, organic and specialty foods 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 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 66.1% ownership position in Opta Minerals Inc., listed on the Toronto Stock Exchange, 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 belief that healthy eating is a key long term global trend and that we are well positioned to capitalize on future industry growth. The terms and phrases “believe”, “look forward”, “continued”, “growing”, “leveraging” 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, planned facility and operational expansions, 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, potential covenant breaches under our credit facilities 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, CEO
Robert McKeracher, Vice President & CFO
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 quarter ended September 28, 2013 and September 29, 2012
Unaudited
(Expressed in thousands of U.S. dollars, except per share amounts)

    Quarter ended     Quarter ended        
    September 28,     September 29,        
    2013     2012     Change  
  $   $     %  
                   
Revenues   302,723     279,339     8.4%  

 

                 

Cost of goods sold

  271,240     246,158     10.2%  

 

                 

Gross profit

  31,483     33,181     -5.1%  

 

                 

Selling, general and administrative expenses

  20,678     19,395     6.6%  

Intangible asset amortization

  1,180     1,225     -3.7%  

Other expense, net

  787     264     198.1%  

Goodwill impairment

  3,552     -     -  

Foreign exchange gain

  (211 )   (130 )   -62.3%  

  

                 

Earnings from continuing operations before the following

  5,497     12,427     -55.8%  

 

                 

Interest expense, net

  1,957     2,339     -16.3%  

 

                 

Earnings from continuing operations before income taxes

  3,540     10,088     -64.9%  

 

                 

Provision for income taxes

  1,343     3,947     -66.0%  

 

                 

Earnings from continuing operations

  2,197     6,141     -64.2%  

 

                 

Discontinued operations

                 

     Earnings from discontinued operations, net of taxes

  -     112     -100.0%  

 

                 

Earnings

  2,197     6,253     -64.9%  

 

                 

Earnings (loss) attributable to non-controlling interests

  (716 )   449     -259.5%  

 

                 

Earnings attributable to SunOpta Inc.

  2,913     5,804     -49.8%  

 

                 

Earnings per share - basic

                 

       -from continuing operations

  0.04     0.09        

       -from discontinued operations

  -     -        

  

  0.04     0.09        

Earnings per share - diluted

                 

       -from continuing operations

  0.04     0.09        

       -from discontinued operations

  -     -        

 

  0.04     0.09        


SunOpta Inc.
Consolidated Statements of Operations
For the three quarters ended September 28, 2013 and September 29, 2012
Unaudited
(Expressed in thousands of U.S. dollars, except per share amounts)

    Three quarters ended     Three quarters ended        
    September 28, 2013     September 29, 2012     Change  
  $   $     %  
                   

Revenues

  896,718     820,975     9.2%  

 

                 

Cost of goods sold

  794,002     716,220     10.9%  

 

                 

Gross profit

  102,716     104,755     -1.9%  

 

                 

Selling, general and administrative expenses

  66,428     61,911     7.3%  

Intangible asset amortization

  3,628     3,653     -0.7%  

Other expense, net

  1,799     2,006     -10.3%  

Goodwill impairment

  3,552     -     -  

Foreign exchange gain

  (1,152 )   (629 )   -83.1%  

 

                 

Earnings from continuing operations before the following

  28,461     37,814     -24.7%  

 

                 

Interest expense, net

  5,885     7,480     -21.3%  

Impairment loss on investment

  21,495     -     -  

 

                 

Earnings from continuing operations before income taxes

  1,081     30,334     -96.4%  

 

                 

Provision for income taxes

  8,576     10,302     -16.8%  

 

                 

Earnings (loss) from continuing operations

  (7,495 )   20,032     -137.4%  

 

                 

Discontinued operations

                 

     Earnings (loss) from discontinued operations, net of taxes

  (360 )   517     -169.6%  

     Gain on sale of discontinued operations, net of taxes

  -     676     -100.0%  

 

                 

Earnings (loss) from discontinued operations, net of income taxes

  (360 )   1,193     -130.2%  

 

                 

Earnings (loss)

  (7,855 )   21,225     -137.0%  

 

                 

Earnings (loss) attributable to non-controlling interests

  (612 )   1,384     -144.2%  

 

                 

Earnings (loss) attributable to SunOpta Inc.

  (7,243 )   19,841     -136.5%  

 

                 

Earnings (loss) per share – basic

                 

     -from continuing operations

  (0.10 )   0.28        

     -from discontinued operations

  (0.01 )   0.02        

 

  (0.11 )   0.30        

 

                 

Earnings (loss) per share – diluted

                 

     -from continuing operations

  (0.10 )   0.28        

     -from discontinued operations

  (0.01 )   0.02        

 

  (0.11 )   0.30        


SunOpta Inc.
Consolidated Balance Sheets
As at September 28, 2013 and December 29, 2012
Unaudited
(Expressed in thousands of U.S. dollars)

    September 28, 2013     December 29, 2012  
  $   $  
             

ASSETS

           

 

           

Current assets

           

     Cash and cash equivalents

  6,819     6,840  

     Restricted cash

  -     6,595  

     Accounts receivable

  120,630     113,314  

     Inventories

  248,887     255,738  

     Prepaid expenses and other current assets

  16,075     20,538  

     Current income taxes recoverable

  676     1,814  

     Deferred income taxes

  2,377     2,653  

 

  395,464     407,492  

 

           

Investment

  12,350     33,845  

Property, plant and equipment

  161,919     140,579  

Goodwill

  54,184     57,414  

Intangible assets

  49,139     52,885  

Deferred income taxes

  14,408     12,879  

Other assets

  1,616     2,216  

 

           

 

  689,080     707,310  

 

           

LIABILITIES

           

 

           

Current liabilities

           

     Bank indebtedness

  139,371     131,061  

     Accounts payable and accrued liabilities

  110,138     128,544  

     Customer and other deposits

  5,856     4,734  

     Income taxes payable

  4,300     4,125  

     Other current liabilities

  3,028     2,660  

     Current portion of long-term debt

  46,466     6,925  

     Current portion of long-term liabilities

  609     1,471  

 

  309,768     279,520  

 

           

Long-term debt

  5,565     51,273  

Long-term liabilities

  4,109     5,544  

Deferred income taxes

  28,239     27,438  

 

  347,681     363,775  

 

           

 

           

EQUITY

           

SunOpta Inc. shareholders’ equity

           

     Capital Stock

  185,901     183,027  

     66,460,206 common shares (December 29, 2012 - 66,007,236)

           

     Additional paid in capital

  18,438     16,855  

     Retained earnings

  117,489     124,732  

     Accumulated other comprehensive income

  2,528     1,537  

 

  324,356     326,151  

Non-controlling interests

  17,043     17,384  

Total equity

  341,399     343,535  

 

           

 

  689,080     707,310  


SunOpta Inc.  
Consolidated Statements of Cash Flows 
For the quarter ended September 28, 2013 and September 29, 2012
Unaudited
(Expressed in thousands of U.S. dollars)

    Quarter ended     Quarter ended  
    September 28, 2013     September 29, 2012  
  $   $  
             

Cash provided by (used in)

           

 

           

Operating activities

           

     Earnings

  2,197     6,253  

     Earnings from discontinued operations

  -     112  

     Earnings from continuing operations

  2,197     6,141  

Items not affecting cash

           

     Depreciation and amortization

  5,494     5,155  

     Deferred income taxes

  (1,747 )   (639 )

     Stock-based compensation

  881     713  

     Goodwill impairment

  3,552     -  

     Impairment of long-lived assets

  310     -  

     Unrealized loss (gain) on derivative instruments

  1,950     (3,075 )

     Other

  (766 )   432  

Changes in non-cash working capital, net of businesses acquired

  (1,862 )   7,462  

Net cash flows from operations - continuing operations

  10,009     16,189  

Net cash flows from operations - discontinued operations

  -     313  

 

  10,009     16,502  

Investing activities

           

Acquisition of business, net of cash acquired

  -     (11,644 )

Purchases of property, plant and equipment

  (10,797 )   (5,709 )

Decrease in restricted cash

  6,495     -  

Payment of contingent consideration

  -     (61 )

Other

  342     66  

Net cash flows from investing activities - continuing operations

  (3,960 )   (17,348 )

 

           

Financing activities

           

Increase (decrease) in line of credit facilities

  (4,928 )   11,664  

Borrowings under long-term debt

  142     15,234  

Repayment of long-term debt

  (1,677 )   (24,136 )

Financing costs

  (5 )   (1,315 )

Proceeds from the issuance of common shares

  804     257  

Other

  (72 )   53  

Net cash flows from financing activities - continuing operations

  (5,736 )   1,757  

 

           

Foreign exchange gain on cash held in a foreign currency

  46     29  

 

           

Increase in cash and cash equivalents during the period

  359     940  

 

           

Cash and cash equivalents - beginning of the period

  6,460     3,247  

 

           

Cash and cash equivalents - end of the period

  6,819     4,187  


SunOpta Inc.  
Consolidated Statements of Cash Flows 
For the three quarters ended September 28, 2013 and September 29, 2012
Unaudited
(Expressed in thousands of U.S. dollars)

    Three quarters ended     Three quarters ended  
    September 28, 2013     September 29, 2012  
  $   $  

 

           

Cash provided by (used in)

           

 

           

Operating activities

           

     Earnings (loss)

  (7,855 )   21,225  

     Earnings (loss) from discontinued operations

  (360 )   1,193  

     Earnings (loss) from continuing operations

  (7,495 )   20,032  

Items not affecting cash

           

     Depreciation and amortization

  16,343     14,946  

     Deferred income taxes

  (242 )   3,077  

     Stock-based compensation

  2,422     2,041  

     Goodwill impairment

  3,552     -  

     Impairment of long-lived assets

  310     -  

     Unrealized loss (gain) on derivative instruments

  2,892     (1,178 )

     Impairment loss on investment

  21,495     -  

     Other

  (663 )   1,048  

Changes in non-cash working capital, net of businesses acquired

  (6,847 )   (1,921 )

Net cash flows from operations - continuing operations

  31,767     38,045  

Net cash flows from operations - discontinued operations

  (4,608 )   (3 )

 

  27,159     38,042  

Investing activities

           

Acquisitions of businesses, net of cash acquired

  (3,828 )   (29,174 )

Purchases of property, plant and equipment

  (32,773 )   (17,623 )

Decrease in restricted cash

  6,495     -  

Payment of contingent consideration

  (1,074 )   (388 )

Other

  (496 )   (165 )

Net cash flows from investing activities - continuing operations

  (31,676 )   (47,350 )

Net cash flows from investing activities - discontinued operations

  -     12,134  

 

  (31,676 )   (35,216 )

Financing activities

           

Increase in line of credit facilities

  7,854     1,138  

Borrowings under long-term debt

  486     34,607  

Repayment of long-term debt

  (5,697 )   (34,959 )

Financing costs

  (28 )   (2,490 )

Proceeds from the issuance of common shares

  2,035     680  

Other

  (97 )   24  

Net cash flows from financing activities - continuing operations

  4,553     (1,000 )

 

           

Foreign exchange loss on cash held in a foreign currency

  (57 )   (17 )

 

           

Increase (decrease) in cash and cash equivalents during the period

  (21 )   1,809  

 

           

Cash and cash equivalents - beginning of the period

  6,840     2,378  

 

           

Cash and cash equivalents - end of the period

  6,819     4,187  


SunOpta Inc.
Segmented Information 
For the quarter ended September 28, 2013 and September 29, 2012
Unaudited
(Expressed in thousands of U.S. dollars)

   
Quarter ended
September 28, 2013
 
    SunOpta           Corporate        
    Foods     Opta Minerals     Services     Consolidated  
  $   $   $   $  

Total revenues from external customers

  267,796     34,927     -     302,723  

 

                       

Segment operating income (loss)

  10,430     1,704     (2,298 )   9,836  

SunOpta Foods has the following segmented reporting:

Quarter ended
September 28, 2013
 
    Grains and           Consumer     International     SunOpta  
    Foods     Ingredients     Products     Foods     Foods  
  $   $   $   $   $  

Total revenues from external customers

  143,051     23,962     49,318     51,465     267,796  

 

                             

Segment operating income

  7,227     1,649     628     926     10,430  

Quarter ended
September 29, 2012
 
    SunOpta           Corporate        
    Foods     Opta Minerals     Services     Consolidated  
  $   $   $   $  

Total revenues from external customers

  246,359     32,980     -     279,339  

 

                       

Segment operating income (loss)

  10,835     3,280     (1,424 )   12,691  

SunOpta Foods has the following segmented reporting:

Quarter ended
September 29, 2012
 
    Grains and           Consumer     International     SunOpta  
    Foods     Ingredients     Products     Foods     Foods  
  $   $   $   $   $  

Total revenues from external customers

  139,917     20,273     41,636     44,533     246,359  

 

                             

Segment operating income (loss)

  8,780     878     (544 )   1,721     10,835  

(Segment operating income (loss) is defined as “Earnings from continuing operations before the following” excluding the impact of “Other expense, net” and “Goodwill impairment”) 


SunOpta Inc.
Segmented Information 
For the three quarters ended September 28, 2013 and September 29, 2012
Unaudited
(Expressed in thousands of U.S. dollars)

   
Three quarters ended
September 28, 2013
 
    SunOpta           Corporate        
    Foods     Opta Minerals     Services     Consolidated  
  $   $   $   $  

Total revenues from external customers

  788,104     108,614     -     896,718  

 

                       

Segment operating income (loss)

  34,338     5,070     (5,596 )   33,812  

SunOpta Foods has the following segmented reporting:

Three quarters ended
September 28, 2013
 
    Grains and           Consumer     International     SunOpta  
    Foods     Ingredients     Products     Foods     Foods  
  $   $   $   $   $  

Total revenues from external customers

  418,455     67,458     149,594     152,597     788,104  

 

                             

Segment operating income

  24,251     3,601     2,508     3,978     34,338  

Three quarters ended
September 29, 2012
 
    SunOpta           Corporate        
    Foods     Opta Minerals     Services     Consolidated  
  $   $   $   $  

Total revenues from external customers

  728,449     92,526     -     820,975  

 

                       

Segment operating income (loss)

  36,423     8,178     (4,781 )   39,820  

SunOpta Foods has the following segmented reporting:

Three quarters ended
September 29, 2012
 
    Grains and           Consumer     International     SunOpta  
    Foods     Ingredients     Products     Foods     Foods  
  $   $   $   $   $  

Total revenues from external customers

  397,096     62,408     135,879     133,066     728,449  

 

                             

Segment operating income (loss)

  27,662     2,946     (549 )   6,364     36,423  

(Segment operating income (loss) is defined as “Earnings from continuing operations before the following” excluding the impact of “Other expense, net” and “Goodwill impairment”)


1Non-GAAP Measures

In addition to reporting financial results in accordance with generally accepted accounting principles (“GAAP”), the Company provides information regarding Operating Income and Earnings before interest, taxes, depreciation and amortization (“EBITDA”) 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 and EBITDA 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, 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 reconciliation to GAAP earnings, which the Company believes to be the most directly comparable GAAP financial measure:

    Quarter ended     Quarter ended  
    September 28, 2013     September 29, 2012  
  $   $  
             

Earnings from continuing operations

  2,197     6,141  

 

           

Provision for income taxes

  1,343     3,947  

Interest expense, net

  1,957     2,339  

Other expense, net

  787     264  

Goodwill impairment

  3,552     -  

     Operating income

  9,836     12,691  

Depreciation and amortization

  5,494     5,155  

     Earnings before interest, taxes, depreciation and amortization (EBITDA)

  15,330     17,846  

    Three quarters ended     Three quarters ended  
    September 28, 2013     September 29, 2012  
  $   $  
             

Earnings (loss) from continuing operations

  (7,495 )   20,032  

 

           

Provision for income taxes

  8,576     10,302  

Interest expense, net

  5,885     7,480  

Other expense, net

  1,799     2,006  

Goodwill impairment

  3,552     -  

Impairment loss on investment

  21,495     -  

     Operating income

  33,812     39,820  

Depreciation and amortization

  16,343     14,946  

     Earnings before interest, taxes, depreciation and amortization (EBITDA)

  50,155     54,766  


The Company also reported Adjusted earnings from continuing operations and Adjusted earnings from continuing operations per diluted share for the quarter and three quarters ended September 28, 2013. Adjusted earnings from continuing operations and Adjusted earnings from continuing operations per diluted share are also non-GAAP financial measures. During the quarter and three quarters ended September 28, 2013, the Company recognized specific charges that we do not believe are reflective of normal business operations. We have excluded the impairment loss on our investment in Mascoma, an impairment of goodwill recognized in our Opta Minerals operating segment, as well as severance, facility restructuring and long-lived asset write-downs all reported in “Other expense, net” to arrive at Adjusted earnings from continuing operations and Adjusted earnings from continuing operations per diluted share. The following is a tabular presentation of Adjusted earnings from continuing operations and Adjusted earnings from continuing operations per diluted share, including a reconciliation to GAAP Earnings (loss) attributable to SunOpta Inc. and GAAP Earnings (loss) attributable to SunOpta Inc. on a per diluted share basis, which the Company believes to be the most directly comparable GAAP financial measures.

Following is a calculation of our Adjusted earnings from continuing operations and Adjusted earnings from continuing operations per diluted share for the quarter and three quarters ended September 28, 2013.

          Adjusted earnings  
    Quarter ended     per diluted share  
    September 28, 2013     for the quarter  
  $   $  
             

Earnings attributable to SunOpta Inc.

  2,913     0.04  

 

           

     Adjusted for:

           

     Goodwill impairment (net of taxes of $1,252 and non-controlling interest of $780)

  1,520     0.02  

     Other expense, net (net of taxes of $272 and non-controlling interest of $109)

  406     0.01  

 

           

Adjusted earnings from continuing operations

  4,839     0.07  

          Adjusted earnings  
        per diluted share  
    Three Quarters ended     for the three  
    September 28, 2013     quarters  
    $   $  
             

Loss attributable to SunOpta Inc.

  (7,243 )   (0.11 )

Loss from discontinued operations, net of taxes

  (360 )   (0.01 )

Loss from continuing operations attributable to SunOpta Inc.

  (6,883 )   (0.10 )

 

           

     Adjusted for:

           

     Impairment loss on Mascoma investment

  21,495     0.32  

     Goodwill impairment (net of taxes of $1,252 and non-controlling interest of $780)

  1,520     0.02  

     Other expense, net (net of taxes of $557 and non-controlling interest of $292)

  950     0.01  

 

           

Adjusted earnings from continuing operations

  17,082     0.25