TORONTO, March 5, 2013 (GLOBE NEWSWIRE) -- 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 year ended December 29, 2012. All amounts are expressed in U.S. dollars and results are reported in accordance with U.S. GAAP, except where specifically noted.
Fourth Quarter 2012 Highlights:
- Record revenues of $270.1 million, an increase of approximately 12% versus 2011
- Operating income of $7.2 million, an increase of 46% versus 2011
- Record fourth quarter earnings of $4.4 million versus a loss of $7.6 million in 2011
- Earnings per diluted common share of $0.07 versus a loss of $0.11 in 2011
Fiscal 2012 Highlights:
- Record revenues of $1.091 billion, an increase of approximately 7% versus 2011
- Operating income of $47.0 million, an increase of 39% versus 2011
- Record earnings of $24.2 million, an increase of 357% versus 2011
- Earnings per diluted common share increased to a record $0.36 versus $0.08 in 2011
"We are pleased with our fiscal 2012 financial results which reflect both record revenues and earnings. We continue to execute on our core strategies focused on growing our value-added packaged foods and ingredients portfolio, and leveraging our integrated platform," commented Steve Bromley, Chief Executive Officer. "While our results improved significantly in fiscal 2012, we will continue to develop our global integrated natural and organic foods platform in support of our established operating targets. We continue to believe that healthy eating and healthy living are key long-term global trends and further believe that we are well positioned to be a key player in these markets."
Fourth Quarter 2012 Results
Revenues for the fourth quarter increased approximately 12% to $270.1 million as compared to $242.3 million in the fourth quarter of 2011. Excluding the impact of changes including foreign exchange rates, commodity-related pricing, acquisitions and rationalized product lines, revenues increased approximately 6% on a consolidated basis versus the prior year. The increase in consolidated revenues in the fourth quarter was driven by strong growth across integrated packaged food product categories within SunOpta Foods, particularly in the areas of packaged aseptic non-dairy beverages and pouch products, as well as higher sales within Opta Minerals Inc. as a result of recent acquisitions.
Operating income1 increased approximately 46% to $7.2 million, or 2.6% of revenues for the fourth quarter of 2012 as compared to $4.9 million, or 2.0% of revenues in 2011. This increase was due to a significant improvement in operating income in the Consumer Products Group versus the prior year as a result of a decrease in rationalization costs in the Frozen Foods operations and leveraged selling, general and administrative costs due in part to streamlining and rationalizations completed over the past year.
Earnings for the fourth quarter of 2012 were $4.4 million, or $0.07 per diluted common share, as compared to a loss of $7.6 million, or $0.11 per diluted common share, for the fourth quarter of 2011. Excluding discontinued operations, earnings during the fourth quarter of 2012 were $4.3 million or $0.06 per diluted common share, versus $1.4 million or $0.02 per diluted common share during the fourth quarter of 2011. Fourth quarter 2012 earnings include the impact of approximately $1.2 million in pre-tax severance, acquisition, start-up costs ($0.6 million after-tax and minority interest), offset by approximately $0.6 million in tax adjustments that lowered the Company's effective tax rate.
For the fourth quarter of 2012 EBITDA1 increased 33% to $12.4 million as compared to $9.3 million during the fourth quarter of 2011.
Fiscal 2012 Results
For fiscal 2012 revenues increased 7% to $1.091 billion versus revenues of $1.020 billion in 2011. Excluding the impact of changes including foreign exchange rates, commodity-related pricing, acquisitions and rationalized product lines, revenues increased approximately 6% on a consolidated basis. The increase in consolidated revenues in 2012 was driven by strong growth within integrated packaged food product categories and the benefit of increased prices and higher volume of sales of raw grains in SunOpta Foods, as well as higher sales within Opta Minerals as a result of recent acquisitions. These increases were partially offset by the effect of lower fiber and fruit ingredient sales and decreased revenues in the Company's European organic ingredients operation.
Operating income1 for fiscal 2012 increased 39% to $47.0 million or 4.3% of revenues, versus $33.8 million, or 3.3% of revenues in the prior year. This increase was primarily due to improved operating income in the Grains and Foods Group, Consumer Products Group and Opta Minerals versus the prior year.
For fiscal 2012, earnings increased 357% to $24.2 million, or $0.36 per diluted common share, as compared to earnings of $5.3 million, or $0.08 per diluted common share in 2011. Excluding discontinued operations, earnings were $23.0 million or $0.34 per diluted common share, versus $16.2 million, or $0.24 per diluted common share in 2011.
Fiscal 2012 EBITDA1 increased 30% to $67.2 million as compared to $51.6 million in fiscal 2011.
Balance Sheet
The Company's balance sheet remains strong, and shareholders' equity increased to $326.2 million as of December 29, 2012 compared to $299.1 million at December 31, 2011. At the end of fiscal 2012 the Company's balance sheet reflects a current ratio of 1.46 to 1.00, and a total debt to equity ratio of 0.58 to 1.00. At December 29, 2012, the Company had total debt outstanding of $189.3 million, total assets of $707.3 million and a net book value of $4.94 per outstanding share. During fiscal 2012 the Company generated cash from operating activities of $31.0 million versus cash used in operating activities of $5.6 million in 2011, indicative of improved earnings and less cash used to fund working capital.
Conference Call Information
The Company plans to host a conference call at 10:00 A.M. Eastern Time on Wednesday, March 6, 2013 to discuss the results for the fourth quarter and year ended 2012 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.
The SunOpta Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=3958
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 focus on our core natural and organic foods business and our belief that healthy eating and healthy living are key long-term global trends and we are well positioned to be a key player in these markets. The terms and phrases "continued", "improve", "will provide", "remain confident", 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.
| SunOpta Inc. | |||
| Consolidated Statements of Operations | |||
| For the quarter ended December 29, 2012 and December 31, 2011 | |||
| Unaudited | |||
| (Expressed in thousands of U.S. dollars, except per share amounts) | |||
| Quarter ended | Quarter ended | ||
| December 29, 2012 | December 31, 2011 | Change | |
| $ | $ | % | |
| Revenues | 270,089 | 242,322 | 11.5% |
| Cost of goods sold | 241,107 | 215,711 | 11.8% |
| Gross profit | 28,982 | 26,611 | 8.9% |
| Selling, general and administrative expenses | 20,967 | 20,679 | 1.4% |
| Intangible asset amortization | 1,280 | 983 | 30.2% |
| Other expense, net | 188 | 55 | 241.8% |
| Foreign exchange (gain) loss | (417) | 62 | -772.6% |
| Earnings from continuing operations before the following | 6,964 | 4,832 | 44.1% |
| Interest expense, net | 1,853 | 2,302 | -19.5% |
| Earnings from continuing operations before income taxes | 5,111 | 2,530 | 102.0% |
| Provision for income taxes | 632 | 1,021 | -38.1% |
| Earnings from continuing operations | 4,479 | 1,509 | 196.8% |
| Discontinued operations | |||
| Loss from discontinued operations, net of taxes | (69) | (8,948) | n/a |
| Gain on sale of discontinued operations, net of taxes | 132 | -- | n/a |
| Gain (loss) from discontinued operations, net of taxes | 63 | (8,948) | 100.7% |
| Earnings (loss) | 4,542 | (7,439) | 161.1% |
| Earnings attributable to non-controlling interests | 159 | 113 | 40.7% |
| Earnings (loss) attributable to SunOpta Inc. | 4,383 | (7,552) | 158.0% |
| Earnings (loss) per share - basic | |||
| -from continuing operations | 0.07 | 0.02 | |
| -from discontinued operations | -- | (0.14) | |
| 0.07 | (0.11) | ||
| Earnings (loss) per share - diluted | |||
| -from continuing operations | 0.06 | 0.02 | |
| -from discontinued operations | -- | (0.13) | |
| 0.07 | (0.11) | ||
| SunOpta Inc. | |||
| Consolidated Statements of Operations | |||
| For the year ended December 29, 2012 and December 31, 2011 | |||
| Unaudited | |||
| (Expressed in thousands of U.S. dollars, except per share amounts) | |||
| Year ended | Year ended | ||
| December 29, 2012 | December 31, 2011 | Change | |
| $ | $ | % | |
| Revenues | 1,091,064 | 1,019,871 | 7.0% |
| Cost of goods sold | 957,327 | 898,627 | 6.5% |
| Gross profit | 133,737 | 121,244 | 10.3% |
| Selling, general and administrative expenses | 82,878 | 82,176 | 0.9% |
| Intangible asset amortization | 4,933 | 4,061 | 21.5% |
| Other expense (income), net | 2,194 | (2,832) | 177.5% |
| Foreign exchange (gain) loss | (1,046) | 1,238 | -184.5% |
| Earnings from continuing operations before the following | 44,778 | 36,601 | 22.3% |
| Interest expense, net | 9,333 | 8,839 | 5.6% |
| Earnings from continuing operations before income taxes | 35,445 | 27,762 | 27.7% |
| Provision for income taxes | 10,934 | 9,896 | 10.5% |
| Earnings from continuing operations | 24,511 | 17,866 | 37.2% |
| Discontinued operations | |||
| Earnings (loss) from discontinued operations, net of taxes | 448 | (11,005) | n/a |
| Gain on sale of discontinued operations, net of taxes | 808 | 71 | n/a |
| Earnings (loss) from discontinued operations, net of taxes | 1,256 | (10,934) | 111.5% |
| Earnings | 25,767 | 6,932 | 271.7% |
| Earnings attributable to non-controlling interests | 1,543 | 1,636 | -5.7% |
| Earnings attributable to SunOpta Inc. | 24,224 | 5,296 | 357.4% |
| Earnings (loss) per share – basic | |||
| -from continuing operations | 0.35 | 0.25 | |
| -from discontinued operations | 0.02 | (0.17) | |
| 0.37 | 0.08 | ||
| Earnings (loss) per share – diluted | |||
| -from continuing operations | 0.34 | 0.24 | |
| -from discontinued operations | 0.02 | (0.16) | |
| 0.36 | 0.08 | ||
| SunOpta Inc. | ||
| Consolidated Balance Sheets | ||
| As at December 29, 2012 and December 31, 2011 | ||
| Unaudited | ||
| (Expressed in thousands of U.S. dollars) | ||
| December 29, 2012 | December 31, 2011 | |
| $ | $ | |
| Assets | ||
| Current assets | ||
| Cash and cash equivalents | 6,840 | 2,378 |
| Restricted cash | 6,595 | -- |
| Accounts receivable | 113,314 | 88,898 |
| Inventories | 255,738 | 228,455 |
| Prepaid expenses and other current assets | 20,538 | 21,378 |
| Current income taxes recoverable | 1,814 | 1,503 |
| Deferred income taxes | 2,653 | 4,773 |
| Current assets held for sale | -- | 17,923 |
| 407,492 | 365,308 | |
| Investments | 33,845 | 33,845 |
| Property, plant and equipment | 140,579 | 120,584 |
| Goodwill | 57,414 | 49,387 |
| Intangible assets | 52,885 | 48,035 |
| Deferred income taxes | 12,879 | 11,751 |
| Other assets | 2,216 | 1,854 |
| Non-current assets held for sale | -- | 739 |
| 707,310 | 631,503 | |
| Liabilities | ||
| Current liabilities | ||
| Bank indebtedness | 131,061 | 109,718 |
| Accounts payable and accrued liabilities | 128,544 | 114,308 |
| Customer and other deposits | 4,734 | 843 |
| Income taxes payable | 4,125 | 1,229 |
| Other current liabilities | 2,660 | 1,419 |
| Current portion of long-term debt | 6,925 | 35,198 |
| Current portion of long-term liabilities | 1,471 | 995 |
| Current liabilities held for sale | -- | 5,920 |
| 279,520 | 269,630 | |
| Long-term debt | 51,273 | 17,066 |
| Long-term liabilities | 5,544 | 5,586 |
| Deferred income taxes | 27,438 | 24,273 |
| 363,775 | 316,555 | |
| Equity | ||
| SunOpta Inc. shareholders' equity | ||
| Capital Stock | 183,027 | 182,108 |
| 66,007,236 common shares (December 31, 2011 - 65,796,398) | ||
| Additional paid in capital | 16,855 | 14,134 |
| Retained earnings | 124,732 | 100,508 |
| Accumulated other comprehensive income | 1,537 | 2,382 |
| 326,151 | 299,132 | |
| Non-controlling interest | 17,384 | 15,816 |
| Total equity | 343,535 | 314,948 |
| 707,310 | 631,503 | |
| SunOpta Inc. | ||
| Consolidated Statements of Cash Flows | ||
| For the quarter ended December 29, 2012 and December 31, 2011 | ||
| Unaudited | ||
| (Expressed in thousands of U.S. dollars) | ||
| Quarter ended | Quarter ended | |
| December 29, 2012 | December 31, 2011 | |
| $ | $ | |
| Cash provided by (used in) | ||
| Operating activities | ||
| Earnings (loss) | 4,542 | (7,439) |
| Earnings (loss) from discontinued operations | 63 | (8,948) |
| Earnings from continuing operations | 4,479 | 1,509 |
| Items not affecting cash | ||
| Depreciation and amortization | 5,280 | 4,455 |
| Unrealized gain on foreign exchange | -- | (246) |
| Deferred income taxes | (1,096) | (1,842) |
| Stock-based compensation | 712 | 554 |
| Impairment of long-lived assets | -- | 358 |
| Unrealized loss on derivative instruments | 483 | 4,111 |
| Loss on sale of property, plant and equipment | 51 | 39 |
| Other | (2) | 383 |
| Changes in non-cash working capital | (16,917) | (12,266) |
| Net cash flows from operating activities - continuing operations | (7,010) | (2,945) |
| Net cash flows from operating activities - discontinued operations | (55) | 36 |
| (7,065) | (2,909) | |
| Investing activities | ||
| Acquisitions of businesses, net of cash acquired | (870) | (2,961) |
| Purchases of property, plant and equipment | (6,628) | (1,964) |
| Increase in restricted cash | (6,595) | -- |
| Proceeds on sale of property, plant and equipment | 50 | 1,755 |
| Purchases of intangible assets | (47) | 9 |
| Payment of contingent consideration | (89) | (233) |
| Other | (352) | (919) |
| Net cash flows from investing activities - continuing operations | (14,531) | (4,313) |
| Net cash flows from investing activities - discontinued operations | -- | (35) |
| (14,531) | (4,348) | |
| Financing activities | ||
| Increase under line of credit facilities | 19,379 | 3,317 |
| Borrowings under long-term debt | 6,573 | 2,913 |
| Repayment of long-term debt | (1,713) | (4,545) |
| Financing costs | (74) | -- |
| Proceeds from the issuance of common shares | 107 | 166 |
| Other | (105) | 114 |
| Net cash flows from financing activities - continuing operations | 24,167 | 1,965 |
| Foreign exchange gain on cash held in a foreign currency | 82 | 144 |
| Increase (decrease) in cash and cash equivalents during the period | 2,653 | (5,148) |
| Discontinued operations cash activity included above: | ||
| Cash and cash equivalents - beginning of the period | 4,187 | 7,526 |
| Cash and cash equivalents - end of the period | 6,840 | 2,378 |
| SunOpta Inc. | ||
| Consolidated Statements of Cash Flows | ||
| For the year ended December 29, 2012 and December 31, 2011 | ||
| Unaudited | ||
| (Expressed in thousands of U.S. dollars) | ||
| Year ended | Year ended | |
| December 29, 2012 | December 31, 2011 | |
| $ | $ | |
| Cash provided by (used in) | ||
| Operating activities | ||
| Earnings | 25,767 | 6,932 |
| Earnings (loss) from discontinued operations | 1,256 | (10,934) |
| Earnings from continuing operations | 24,511 | 17,866 |
| Items not affecting cash | ||
| Depreciation and amortization | 20,226 | 17,809 |
| Unrealized gain on foreign exchange | (169) | (268) |
| Deferred income taxes | 1,981 | 3,993 |
| Stock-based compensation | 2,753 | 2,090 |
| Impairment of long-lived assets | -- | 358 |
| Unrealized (gain) loss on derivative instruments | (695) | 839 |
| Loss (gain) on sale of property, plant and equipment | 51 | (3,201) |
| Other | 1,215 | 693 |
| Changes in non-cash working capital | (18,838) | (44,169) |
| Net cash flows from operating activities - continuing operations | 31,035 | (3,990) |
| Net cash flows from operating activities - discontinued operations | (58) | (1,602) |
| 30,977 | (5,592) | |
| Investing activities | ||
| Acquisition of businesses, net of cash acquired | (30,044) | (5,461) |
| Purchases of property, plant and equipment | (24,251) | (17,220) |
| Increase in restricted cash | (6,595) | -- |
| Proceeds on sale of property, plant and equipment | 50 | 4,528 |
| Purchases of intangible assets | (128) | (58) |
| Payment of contingent consideration | (477) | (233) |
| Other | (436) | (949) |
| Net cash flows from investing activities - continuing operations | (61,881) | (19,393) |
| Net cash flows from investing activities - discontinued operations | 12,134 | (423) |
| (49,747) | (19,816) | |
| Financing activities | ||
| Increase under line of credit facilities | 65,813 | 36,503 |
| Repayment of line of credit facilities | (45,296) | -- |
| Borrowings under long-term debt | 59,992 | 4,825 |
| Repayment of long-term debt | (55,484) | (17,968) |
| Financing costs | (2,564) | (186) |
| Proceeds from the issuance of common shares | 787 | 1,155 |
| Other | (81) | 916 |
| Net cash flows from financing activities - continuing operations | 23,167 | 25,245 |
| Foreign exchange gain (loss) on cash held in a foreign currency | 65 | (102) |
| Increase (decrease) in cash and cash equivalents during the period | 4,462 | (265) |
| Discontinued operations cash activity included above: | ||
| Add: Balance included at beginning of period | -- | 308 |
| Cash and cash equivalents - beginning of the period | 2,378 | 2,335 |
| Cash and cash equivalents - end of the period | 6,840 | 2,378 |
| SunOpta Inc. | |||||
| Segmented Information | |||||
| For the quarter ended December 29, 2012 and December 31, 2011 | |||||
| Unaudited | |||||
| (Expressed in thousands of U.S. dollars) | |||||
| Quarter ended | |||||
| December 29, 2012 | |||||
| SunOpta | Corporate | ||||
| Foods | Opta Minerals | Services | Consolidated | ||
| $ | $ | $ | $ | ||
| Total revenues from external customers | 235,964 | 34,125 | -- | 270,089 | |
| Segment Operating Income (Loss) | 6,488 | 1,884 | (1,220) | 7,152 | |
| SunOpta Foods has the following segmented reporting: | |||||
| Quarter ended | |||||
| December 29, 2012 | |||||
| Grains and | Ingredients | Consumer Products | International | SunOpta | |
| Foods Group | Group | Group | Foods Group | Foods | |
| $ | $ | $ | $ | $ | |
| Total revenues from external customers | 127,563 | 20,136 | 45,143 | 43,122 | 235,964 |
| Segment Operating Income (Loss) | 5,134 | 518 | (433) | 1,269 | 6,488 |
| Quarter ended | |||||
| December 31, 2011 | |||||
| SunOpta | Corporate | ||||
| Foods | Opta Minerals | Services | Consolidated | ||
| $ | $ | $ | $ | ||
| Total revenues from external customers | 219,697 | 22,625 | -- | 242,322 | |
| Segment Operating Income (Loss) | 5,123 | 1,361 | (1,597) | 4,887 | |
| SunOpta Foods has the following segmented reporting: | |||||
| Quarter ended | |||||
| December 31, 2011 | |||||
| Grains and | Ingredients | Consumer Products | International | SunOpta | |
| Foods Group | Group | Group | Foods Group | Foods | |
| $ | $ | $ | $ | $ | |
| Total revenues from external customers | 117,224 | 19,472 | 39,482 | 43,519 | 219,697 |
| Segment Operating Income (Loss) | 6,851 | 391 | (3,827) | 1,708 | 5,123 |
| (Segment operating income (loss) is defined as "Earnings from continuing operations before the following" excluding the impact of "Other expense (income), net".) | |||||
| SunOpta Inc. | |||||
| Segmented Information | |||||
| For the year ended December 29, 2012 and December 31, 2011 | |||||
| Unaudited | |||||
| (Expressed in thousands of U.S. dollars) | |||||
| Year ended | |||||
| December 29, 2012 | |||||
| SunOpta | Corporate | ||||
| Foods | Opta Minerals | Services | Consolidated | ||
| $ | $ | $ | $ | ||
| Total revenues from external customers | 964,413 | 126,651 | -- | 1,091,064 | |
| Segment Operating Income (Loss) | 42,911 | 10,062 | (6,001) | 46,972 | |
| SunOpta Foods has the following segmented reporting: | |||||
| Year ended | |||||
| December 29, 2012 | |||||
| Grains and | Ingredients | Consumer Products | International | SunOpta | |
| Foods Group | Group | Group | Foods Group | Foods | |
| $ | $ | $ | $ | $ | |
| Total revenues from external customers | 524,659 | 82,544 | 181,022 | 176,188 | 964,413 |
| Segment Operating Income (Loss) | 32,796 | 3,464 | (982) | 7,633 | 42,911 |
| Year ended | |||||
| December 31, 2011 | |||||
| SunOpta | Corporate | ||||
| Foods | Opta Minerals | Services | Consolidated | ||
| $ | $ | $ | $ | ||
| Total revenues from external customers | 926,751 | 93,120 | -- | 1,019,871 | |
| Segment Operating Income (Loss) | 34,958 | 7,577 | (8,766) | 33,769 | |
| SunOpta Foods has the following segmented reporting: | |||||
| Year ended | |||||
| December 31, 2011 | |||||
| Grains and | Ingredients | Consumer Products | International | SunOpta | |
| Foods Group | Group | Group | Foods Group | Foods | |
| $ | $ | $ | $ | $ | |
| Total revenues from external customers | 479,195 | 91,074 | 165,239 | 191,243 | 926,751 |
| Segment Operating Income (Loss) | 22,813 | 7,083 | (3,978) | 9,040 | 34,958 |
| (Segment operating income (loss) is defined as "Earnings from continuing operations before the following" excluding the impact of "Other expense (income), net".) | |||||
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 (income) 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 a reconciliation to GAAP earnings, which the Company believes to be the most directly comparable GAAP financial measure:
| Quarter ended | Quarter ended | |
| December 29, 2012 | December 31, 2011 | |
| $ | $ | |
| Earnings from continuing operations | 4,479 | 1,509 |
| Provision for income taxes | 632 | 1,021 |
| Interest expense, net | 1,853 | 2,302 |
| Other expense, net | 188 | 55 |
| Operating income | 7,152 | 4,887 |
| Depreciation and amortization | 5,280 | 4,455 |
| Earnings before interest, taxes, depreciation and amortization (EBITDA) | 12,432 | 9,342 |
| Year ended | Year ended | |
| December 29, 2012 | December 31, 2011 | |
| $ | $ | |
| Earnings from continuing operations | 24,511 | 17,866 |
| Provision for income taxes | 10,934 | 9,896 |
| Interest expense, net | 9,333 | 8,839 |
| Other expense (income), net | 2,194 | (2,832) |
| Operating income | 46,972 | 33,769 |
| Depreciation and amortization | 20,226 | 17,809 |
| Earnings before interest, taxes, depreciation and amortization (EBITDA) | 67,198 | 51,578 |