PR Newswire
THE WOODLANDS, Texas, May 9, 2019
THE WOODLANDS, Texas, May 9, 2019 /PRNewswire/ -- RiceBran Technologies (Nasdaq: RIBT) (also the "Company" or "RBT"), a global leader in the production and marketing of value-added products derived from rice bran and a producer of rice, rice co-product, and barley and oat products, announced today the Company's financial results for the quarter ended March 31, 2019.
"First quarter sales increased mainly due to revenue from Golden Ridge Rice Mills, which we acquired in late November, 2018," said Brent Rystrom, President and Chief Executive Officer. "Earlier this week we received our first purchase order for rice bran for use at one of the world's largest Companion Animal companies, a segment where we see major growth opportunities this year and beyond. We are working on adding several other major customers over the next 150 days in a variety of customer segments. We are focused on completing our debottlenecking at Golden Ridge Rice Mills and starting to leverage our milling assets at MGI Grain. All of these efforts are focused on driving significant growth and attaining positive adjusted EBITDA by the end of 2019."
1Q 2019 Business Highlights:
"While we experienced some unexpected margin pressures on rice during the quarter that hurt our results, we quickly identified these issues and lessened their impact. Financing efforts and additional cash warrant exercises in the first quarter of 2019 have greatly strengthened our balance sheet. We are confident that this will provide RBT with the ability to execute on our strategic and financial plans and improved shareholder's equity as we grow the business in the coming quarters and years," said Dennis Dykes, Chief Financial Officer.
Other Updates:
Outlook:
Conference Call Information
RiceBran Technologies will host a conference call today, Thursday, May 9th, at 4:30 p.m. Eastern Time to discuss these results. The conference call information is as follows:
This call is being webcast by ViaVid and can be accessed at http://public.viavid.com/index.php?id=134453.
The call will also be available for replay by accessing http://public.viavid.com/index.php?id=134453.
About RiceBran Technologies
RiceBran Technologies is a specialty ingredient company servicing the food, animal nutrition and specialty ingredient products markets. We utilize our proprietary and patented intellectual property to convert rice bran, one of the world's most underutilized food sources, into a number of highly nutritious and clean label ingredient products. The global target markets for our products include food and animal nutrition manufacturers and retailers, as well as specialty food, functional food and nutritional supplement manufacturers and retailers. More information can be found in the Company's filings with the SEC and by visiting our website at http://www.ricebrantech.com.
Forward-Looking Statements
This release contains forward-looking statements, including, but not limited to, statements about RiceBran Technologies' expectations regarding its planned expansion of its rice milling operations, the sufficiency of its cash position to pursue its plans, its execution of strategic and financial plans, the price of rice bran and its growth opportunities, customer expansion, revenue, profit margin and adjusted EBITDA. These statements are made based upon current expectations that are subject to known and unknown risks and uncertainties. RiceBran Technologies does not undertake to update forward-looking statements in this news release to reflect actual results, changes in assumptions or changes in other factors affecting such forward-looking information. Assumptions and other information that could cause results to differ from those set forth in the forward-looking information can be found in RiceBran Technologies' filings with the Securities and Exchange Commission, including its most recent periodic reports.
RiceBran Technologies | ||||||
Condensed Consolidated Statements of Operations | ||||||
Three Months Ended March 31, 2019 and 2018 | ||||||
(Unaudited) (in thousands, except share and per share amounts) | ||||||
Three Months Ended | ||||||
2019 | 2018 | |||||
Revenues | $ 6,364 | $ 3,552 | ||||
Cost of goods sold | 6,021 | 2,598 | ||||
Gross profit | 343 | 954 | ||||
Selling, general and administrative expenses | 3,341 | 2,853 | ||||
Operating loss | (2,998) | (1,899) | ||||
Other expense: | ||||||
Interest expense | (12) | (1) | ||||
Other expense | (1) | (13) | ||||
Total other expense | (13) | (14) | ||||
Loss before income taxes | (3,011) | (1,913) | ||||
Income tax benefit | - | - | ||||
Loss from continuing operations | (3,011) | (1,913) | ||||
Loss from discontinued operations | (216) | - | ||||
Net loss | $ (3,227) | $ (1,913) | ||||
Basic loss per common share: | ||||||
Continuing operations | $ (0.10) | $ (0.11) | ||||
Discontinued operations | (0.01) | - | ||||
Basic loss per common share | $ (0.11) | $ (0.11) | ||||
Diluted loss per common share: | ||||||
Continuing operations | $ (0.10) | $ (0.11) | ||||
Discontinued operations | (0.01) | - | ||||
Diluted loss per common share | $ (0.11) | $ (0.11) | ||||
Weighted average number of shares outstanding: | ||||||
Basic | 29,347,318 | 17,083,442 | ||||
Diluted | 29,347,318 | 17,083,442 |
RiceBran Technologies | ||||||
Condensed Consolidated Balance Sheets | ||||||
(Unaudited) (in thousands, except share amounts) | ||||||
March 31, 2019 | December 31, 2018 | |||||
ASSETS | ||||||
Current assets: | ||||||
Cash and cash equivalents | $ 13,278 | $ 7,044 | ||||
Restricted cash | 225 | 225 | ||||
Accounts receivable, net of allowance for doubtful | 3,931 | 2,529 | ||||
Receivable from seller of Golden Ridge - working capital | 988 | 1,147 | ||||
Inventories | ||||||
Finished goods | 1,023 | 856 | ||||
Packaging | 73 | 102 | ||||
Deposits and other current assets | 943 | 610 | ||||
Total current assets | 20,461 | 12,513 | ||||
Property and equipment, net | 15,696 | 15,010 | ||||
Operating lease right-of-use assets | 2,968 | - | ||||
Goodwill | 3,178 | 3,178 | ||||
Other long-term assets, net | 41 | 16 | ||||
Total assets | $ 42,344 | $ 30,717 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||
Current liabilities: | ||||||
Accounts payable | $ 1,279 | $ 1,583 | ||||
Commodities payable | 917 | 2,735 | ||||
Accrued salary, wages and benefits | 506 | 933 | ||||
Accrued expenses | 957 | 520 | ||||
Unearned revenue | - | 145 | ||||
Payable to purchaser of HN - working capital | 475 | 259 | ||||
Note payable to seller of Golden Ridge | 358 | 609 | ||||
Operating lease liabilities, current portion | 289 | - | ||||
Finance lease liabilities, current portion | 45 | 45 | ||||
Long term debt, current portion | 20 | 32 | ||||
Total current liabilities | 4,846 | 6,861 | ||||
Operating lease liabilities, less current portion | 2,860 | - | ||||
Finance lease liabilities, less current portion | 75 | 86 | ||||
Long term debt, less current portion | 54 | 59 | ||||
Total liabilities | 7,835 | 7,006 | ||||
Commitments and contingencies | ||||||
Shareholders' Equity: | ||||||
Preferred stock, 20,000,000 shares authorized: | ||||||
Series G, convertible, 3,000 shares authorized, | 112 | 201 | ||||
Common stock, no par value, 50,000,000 shares authorized, | ||||||
33,029,652 and 29,098,207 shares, issued and outstanding | 310,853 | 296,739 | ||||
Accumulated deficit | (276,456) | (273,229) | ||||
Total shareholders' equity | 34,509 | 23,711 | ||||
Total liabilities and shareholders' equity | $ 42,344 | $ 30,717 |
USE OF NON-GAAP FINANCIAL INFORMATION
We utilize "Adjusted EBITDA" as a supplemental measure in our ongoing analysis of short term and long-term cash requirement and liquidity needs. Adjusted EBITDA does not represent cash flows from operations as defined by generally accepted accounting principles ("GAAP"), is not a measure derived in accordance with GAAP and should not be considered as an alternative to net income (the most comparable GAAP financial measure to EBITDA). Management uses Adjusted EBITDA as an indicator of our current financial performance. By eliminating the impact of all material non-cash charges as well as items that do not regularly occur, we believe that Adjusted EBITDA provides a more accurate and informative indicator of our cash requirements.
The table below contains a reconciliation of net income (GAAP) and Adjusted EBITDA (Non-GAAP) for the three months ended March 31, 2019, March 31, 2018 and December 31. We do not provide a reconciliation of forward-looking net income (GAAP) to Adjusted EBITDA (non-GAAP). Due to the nature of certain reconciling items, it is not possible to predict with any reliability what future outcomes may be with regard to the expense or income that may ultimately be recognized in future periods. Any forward-looking Adjusted EBITDA information that we may provide from time to time consistently excludes the same items from projected net income that are excluded from actual net income in the table below.
RiceBran Technologies | ||||
Adjusted EBITDA Reconciliation | ||||
For the three months ended March 31 (in thousands) | ||||
2019 | 2018 | |||
Net income (loss) | $ (3,011) | $ (1,913) | ||
Interest expense | 12 | 1 | ||
Depreciation & amortization | 410 | 199 | ||
Unadjusted EBITDA | $ (2,589) | $ (1,713) | ||
Add Back Other Items: | ||||
Other income/expense | 1 | 13 | ||
Share-based compensation | 392 | 260 | ||
Acquisition related expenses | 344 | - | ||
Adjusted EBITDA | $ (1,852) | $ (1,440) | ||
RiceBran Technologies | ||||
Adjusted EBITDA Reconciliation | ||||
For the three months ended December 31 (in thousands) | ||||
2018 | ||||
Net income (loss) | $ (2,356) | |||
Interest expense | 7 | |||
Depreciation & amortization | 229 | |||
Unadjusted EBITDA | $ (2,120) | |||
Add Back Other Items: | ||||
Other income/expense | (132) | |||
Share-based compensation | 269 | |||
Acquisition related expenses | 132 | |||
Adjusted EBITDA | $ (1,851) |
Investor Contact:
Ascendant Partners, LLC
Richard Galterio
(732) 410-9810
[email protected]
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SOURCE RiceBran Technologies
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