Sunopta — Q3 2016 Earnings Presentation
17 slides from Sunopta's earnings presentation, Nov 9, 2016
Slide 1: Q3 2016 Update
Q3 2016 Update November 9, 2016
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation may include forward-looking statements and therefore is subject to important risks and uncertainties. Actual results could differ materially from the conclusions, forecasts and projections as certain material factors and assumptions were applied in drawin
Slide 3: SunOpta Vision and Three Key Strategies
SunOpta Vision and Three Key Strategies Our Responsibly bring Healthy Food from the Field to the Table Vision 1. Focus on efficient vertically integrated supply chains • Use more and more ingredients we source in CPG products • Continue to expand our core sourcing capabilities 2. Ultimately to build
Slide 4: We are Taking Decisive Action to Drive Shareholder Value
We are Taking Decisive Action to Drive Shareholder Value • April 2016: Established Mid-Term Targets • June 2016: Began Strategic Review Process • October 2016: Accepted $85M investment from Oaktree o Added dedicated operational resources while reducing leverage o Appointed three new directors with o
Slide 5: Four Key Pillars to Value Creation Plan
Four Key Pillars to Value Creation Plan 1. Portfolio Optimization o Invest in products where SunOpta has the ability to win o Evaluate products where SunOpta is not effectively positioned 2. Operational Excellence o Ensure food safety and improve quality performance o Maintain reliable and responsiv
Slide 6: Near Term Actions Against the Four Pillars
Near Term Actions Against the Four Pillars 1. Portfolio Optimization: Actions o Immediate closure of San Bernardino facility announced 2. Operational Excellence: Actions o Engaged third party support in manufacturing, procurement and logistics o Investing in data systems to provide further insights
Slide 7: Q3 2016 Revenue Recap
Q3 2016 Revenue Recap • Total Revenue $348.7 million • Global Ingredients (overall down 3% versus PY): o Domestic down 24%: - Acreage reduction and lower export o International up 16%: - Continue to outpace end markets - Slower summer deliveries • Consumer Products (overall up 1% versus PY) o Health
Slide 8: Q3 2016 Gross Margin Recap
Q3 2016 Gross Margin Recap • Gross Margin of $41.0 million or 11.8% of sales versus $26.3 million or 9.5% of sales in PY o Adjusted for purchase accounting and impact of the sunflower recall, gross margin rate was 12.3% (PY 10.7% excluding transloading issues and startup costs) • Global Ingredients
Slide 9: Key Financial Statistics
Key Financial Statistics Q3 Q3 YTD YTD Q2 ($ millions, except % and per share amounts) 2016(1) 2015(1) 2016(1) 2015(1) 2016(1) Revenues $348.7 $277.2 $1,049.2 $828.8 $348.1 41.0 26.3 108.9 85.1 36.0 Gross Margin (2) 11.8% 9.5% 10.4% 10.3% 10.3% 13.2 4.1 24.7 23.0 8.8 Operating Income (2) 3.8% 1.5% 2
Slide 10: Cash Flow and EBITDA
Cash Flow and EBITDA Cash Provided by (used in) Q3 Q3 YTD YTD 2016 2015 2016 2015 ($ millions) Cash Flows from Operations (1) $17.0 $18.3 ($35.3) $0.3 Cash Flows from Investing Activities (1) (5.5) (12.8) (18.7) (41.1) Cash Flows from Financing Activities (1) (14.6) 89.9 49.9 130.6 (1) Reflects cash
Slide 11: Key Balance Sheet Metrics
Key Balance Sheet Metrics Balance Sheet October 1, 2016 January 2, 2016 ($ millions, except ratio and per share amounts) Working Capital (1) $418.3 $364.8 Total Assets (2) $1,204.2 $1,154.9 Total Debt $546.3 $482.8 Ratio of Total Debt to Equity 1.36 to 1.00 1.15 to 1.00 (1) Working capital is define
Slide 12: The Goals of Our Plan
The Goals of Our Plan • For our Customers: o Be the most trusted, reliable supplier of natural & organic ingredients and private label consumer products o Deliver timely, on-trend product innovation • For our Employees: o Provide the tools, resources and support necessary to drive our shared success
Slide 13: SunOpta - Bringing well-being to life
SunCpta Bringing well-being to life
Slide 14: Appendix: Reconciliation of Non-GAAP Measures
Appendix Reconciliation of Non-GAAP Measures This presentation includes certain measures not derived in accordance with generally accepted accounting principles (“GAAP”). Such measures should not be considered substitutes for any measures derived in accordance with GAAP and may also be inconsistent
Slide 15: Reconciliation of GAAP Results to Adjusted Earnings and Adjusted EPS
Reconciliation of GAAP Results to Adjusted Earnings and Adjusted EPS ($ millions, except per share amounts; totals may not sum due to rounding) Q3 2016 Q3 2015 YTD 2016 YTD 2015 Earnings (loss) attributable to SunOpta Inc. $ (3.4) $ 0.3 $ (17.7) $ 7.6 Loss (earnings) from discontinued operations att
Slide 16: Reconciliation of GAAP Results to Operating Income, EBITDA and Adjusted EBITDA
Reconciliation of GAAP Results to Operating Income, EBITDA and Adjusted EBITDA ($ millions, totals may not sum due to rounding) Q3 2016 Q3 2015 YTD 2016 YTD 2015 Earnings (loss) from continuing operations $ (3.9) $ (0.1) $ (17.1) $ 10.6 Provision for income taxes (5.4) (0.6) (15.6) 4.8 Interest expe
Slide 17: 2233 Argentia Road, Suite 401 Mississauga, Ontario L5N 2X7 www.sunopta.com
2233 Argentia Road, Suite 401 Mississauga, Ontario L5N 2X7 www.sunopta.com