SunOpta Inc. (STKL) swung to a net loss for the quarter ended Oct. 01, 2016. The company has made a net loss of $3.36 million, or $ 0.04 a share in the quarter, against a net profit of $0.31 million, or $0.01 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $6.30 million, or $0.07 a share compared with $4.74 million or $0.07 a share, a year ago.
Revenue during the quarter grew 25.80 percent to $348.73 million from $277.21 million in the previous year period. Gross margin for the quarter expanded 227 basis points over the previous year period to 11.77 percent. Total expenses were 99.17 percent of quarterly revenues, down from 99.84 percent for the same period last year. This has led to an improvement of 67 basis points in operating margin to 0.83 percent.
Operating income for the quarter was $2.91 million, compared with $0.45 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $26.67 million compared with $13.23 million in the prior year period. At the same time, adjusted EBITDA margin improved 287 basis points in the quarter to 7.65 percent from 4.77 percent in the last year period.
Operating cash flow turns negative
SunOpta Inc. has spent $34.51 million cash to meet operating activities during the nine month period as against cash inflow of $5.78 million in the last year period.
The company has spent $16.90 million cash to meet investing activities during the nine month period as against cash outgo of $42.33 million in the last year period.
Cash flow from financing activities was $48.76 million for the nine month period, down 61.18 percent or $76.85 million, when compared with the last year period.
Cash and cash equivalents stood at $1.64 million as on Oct. 01, 2016.
Working capital declines
SunOpta Inc. has witnessed a decline in the working capital over the last year. It stood at $191.11 million as at Oct. 01, 2016, down 22.01 percent or $53.95 million from $245.06 million on Oct. 03, 2015. Current ratio was at 1.47 as on Oct. 01, 2016, down from 1.84 on Oct. 03, 2015.
Days sales outstanding went down to 42 days for the quarter compared with 45 days for the same period last year.
Days inventory outstanding has decreased to 58 days for the quarter compared with 103 days for the previous year period.
Debt increases substantially
SunOpta Inc. has witnessed an increase in total debt over the last one year. It stood at $546.29 million as on Oct. 01, 2016, up 267.99 percent or $397.84 million from $148.45 million on Oct. 03, 2015. Total debt was 45.36 percent of total assets as on Oct. 01, 2016, compared with 18.71 percent on Oct. 03, 2015. Debt to equity ratio was at 1.35 as on Oct. 01, 2016, up from 0.32 as on Oct. 03, 2015. Interest coverage ratio deteriorated to 0.24 for the quarter from 0.41 for the same period last year.
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