TOMBALL, TX / ACCESSWIRE / April 28, 2022 / RiceBran Technologies (NASDAQ:RIBT) (the "Company"), a global leader in the development and manufacture of nutritional and functional ingredients derived from rice and other small and ancient grains for human food, nutraceutical, pet care and equine feed applications, today announced financial results for the first quarter ended March 31, 2022.
Summary Results ($000s) | 1Q22 | 1Q21 | % Chg. | Qual |
| 1Q22 | 4Q21 | % Chg. | Qual |
Revenue | $10,559 | $8,605 | 23% | Improved | $10,559 | $8,043 | 31% | Improved | |
Gross Profit (Loss) | $502 | $672 | (25%) | Declined | $502 | $(107) | NM | Improved | |
SG&A | $1,692 | $1,741 | (3%) | Declined | $1,692 | $1,611 | 5% | Increased | |
Operating Loss | ($1,190) | ($1,076) | 11% | Increased | ($1,190) | ($5,634) | (79%) | Improved | |
Net Income (Loss) | ($1,516) | $591 | NM | Increased | ($1,516) | ($5,404) | (72%) | Improved | |
Adj. EBITDA (Loss) (non-GAAP)* | ($385) | ($158) | 144% | Increased | ($385) | ($806) | (52%) | Improved |
* Reconciliation of GAAP to Non-GAAP measures follows.
First Quarter 2022 Operating Highlights
"The first quarter's results built upon the momentum we began to see in December and bodes well for the year to come," said RiceBran's Executive Chairman Peter Bradley. "We are aligned with healthy living trends and benefitting from having high quality domestically sourced products in a difficult global supply chain environment. Strong growth in the quarter for our core-SRB and milling businesses reflects improved execution, while plans to introduce new products and expand production should support continued revenue growth and a transition to sustainable profitability, validating our strategic shift to a high value-add specialty ingredients focus."
"With their relevant consumer-facing food ingredient, ag-tech, and health and nutrition expertise, the addition of Ms. Heggie and Mr. Black to our Board signals the next important step in our strategic shift to a high value-add provider of specialty ingredients," said Executive Chairman Peter Bradley. "Both Ms. Heggie and Mr. Black have extensive experience developing and commercializing new products for companion animal and human end-markets, and as we introduce new products and expand the use of stabilized rice bran as an alternative to less healthy alternatives, we expect to be able to draw from their knowledge base to more rapidly penetrate new customers and accelerate growth of higher value-add ingredients We also thank Ari and Beth for their many contributions to the Company as we transformed the organization. Their guidance was invaluable during this process, and their oversight has been important in enabling us to reach this inflection point."
First Quarter 2022 Financial Highlights
RiceBran's CFO Todd Mitchell commented, "The Company's strong top line growth and transition to gross profit, despite facing a difficult comparison in our Value-Add SRB derivative business, reflect a healthy demand environment and strong execution from everyone on the RiceBran team and further validation of the Company's strategic shift to a value-add specialty ingredient focus. We still look for future improvement in our core-SRB business in the coming quarters, which with an expected return to growth from our Value-Add SRB derivatives business, should drive gross margins higher and allow the Company to transition to positive adjusted EBITDA."
Conference Call Information
RiceBran Technologies will host a conference call today, Thursday, April 28, at 4:30 p.m. Eastern Time to discuss these results. The call information is as follows:
Following the conclusion of the live call, a replay of the webcast will be available on the Investor Relations section of the Company's website for at least 90 days. A telephonic replay of the conference call will also be available from 7 p.m. EST on April 28, 2022 until 11:59 p.m. EST on May 12, 2022 by dialing 877-481-4010 (United States) or 919-882-2331 (international) and using the passcode 45277.
About RiceBran Technologies
RiceBran Technologies is a specialty ingredient company focused on the development, production, and marketing of products derived from traditional and ancient small grains. Notably, we are global leader in the production and marketing of stabilized rice bran (SRB), and high value-added derivative products derived from SRB, as well as a processor of rice, rice co-products, and barley and oat products. We create and produce products utilizing proprietary processes to deliver improved nutrition, ease of use, and extended shelf-life, while addressing consumer demand for all natural, non-GMO and organic products. The 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, both domestically and internationally. 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's expectations regarding its future financial results, sales growth, adjusted EBITDA (non-GAAP) improvements, and SG&A. These statements are made based upon current expectations that are subject to known and unknown risks and uncertainties, including the risks that operations are disrupted by the COVID-19 pandemic and timing of profitable operations. 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.
Use of Non-GAAP Financial Information
We utilize "adjusted EBITDA" "Net Cash" and "Net Debt" as supplemental measures in our ongoing analysis of short term and long-term cash requirement and liquidity needs. 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. 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 adjusted EBITDA).
The tables below contain a reconciliation of net loss (GAAP) and adjusted EBITDA (non-GAAP) for the three months ended March 31, 2022 and March 31, 2021, and for Net Cash (non-GAAP) and Net Debt (non-GAAP) for the periods ended March 31, 2022 and December 31, 2021. We do not provide a reconciliation of forward-looking net loss (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 loss that are excluded from actual net loss in the table below.
Investor Contact
Rob Fink / Matt Chesler, CFA
FNK IR
[email protected]
646.809.4048 / 646.809.2183
RiceBran Technologies
Consolidated Income Statement (Unaudited) (GAAP)
(in $000, except per share amounts)
3 Months Ended | ||||||||||||
3/31/22 | 3/31/21 | % Chg. | ||||||||||
Revenue | $ | 10,559 | $ | 8,605 | 23 | % | ||||||
Cost of Goods Sold | (10,057 | ) | (7,933 | ) | 27 | % | ||||||
Gross Profit | 502 | 672 | (25 | %) | ||||||||
Gross Margin | 5 | 8 | ||||||||||
Selling, General & Admin. | (1,692 | ) | (1,741 | ) | (3 | %) | ||||||
Loss on PP&E | - | (7 | ) | NM | ||||||||
Operating Loss | (1,190 | ) | (1,076 | ) | 11 | % | ||||||
Interest Expense, net | (125 | ) | (111 | ) | 13 | % | ||||||
Gain on Extinguishment of PPP loan | - | 1,792 | NM | |||||||||
Change in FV of Derivative Warrant Liability | (171 | ) | - | NM | ||||||||
Other Expense, net | (30 | ) | (13 | ) | 131 | % | ||||||
Income (Loss) Before Income Taxes | (1,516 | ) | 592 | NM | ||||||||
Income Taxes | - | (1 | ) | NM | ||||||||
Net Income (Loss) | $ | (1,516 | ) | $ | 591 | NM | ||||||
Basic & Diluted Earnings (Loss) per Share: | $ | (0.03 | ) | $ | 0.01 | NM | ||||||
Weighted Avg. Shares Outstanding (Basic & Diluted): | 52,530 | 45,635 | 15 | % | ||||||||
RiceBran Technologies
EBITDA and Adjusted EBITDA Reconciliation (Unaudited) (Non-GAAP)
(in $000)
3 Months Ended | ||||||||||||
3/31/22 | 3/31/21 | % Chg. | ||||||||||
Net Income (Loss) | $ | (1,516 | ) | $ | 591 | NM | ||||||
Interest Expense | 125 | 111 | 13 | % | ||||||||
Income Taxes | - | 1 | ||||||||||
Depreciation and Amortization | 559 | 665 | (16 | %) | ||||||||
EBITDA | $ | (832 | ) | $ | 1,368 | NM | ||||||
Gain on extinguishment of PPP loan | - | (1,792 | ) | NM | ||||||||
Change in FV of Derivative Warrant Liability | 171 | - | NM | |||||||||
Other Expense | 30 | 13 | 131 | % | ||||||||
Share-Based Compensation | 246 | 253 | (3 | %) | ||||||||
Adjusted EBITDA | $ | (385 | )- | $ | (158 | ) | 144 | % | ||||
RiceBran Technologies
Consolidated Statement of Cash Flows (Unaudited)
(in $000)
3 Months Ended | ||||||||||||
3/31/22 | 3/31/21 | % Chg. | ||||||||||
Cash Flow from Operations | ||||||||||||
Net Income (Loss) | $ | (1,516 | ) | $ | 591 | NM | ||||||
Adjs. to reconcile net Income (Loss) to net cash | ||||||||||||
provided by (used in) operating activities: | ||||||||||||
Depreciation | 516 | 612 | (16 | %) | ||||||||
Amortization | 43 | 53 | (19 | %) | ||||||||
Share-Based Compensation | 246 | 253 | (3 | %) | ||||||||
Gain on Extinguishment of PPP Debt | - | (1,792 | ) | NM | ||||||||
Change in FV of Derivative Warrant Liability | 171 | - | NM | |||||||||
Other | (48 | ) | (18 | ) | 167 | % | ||||||
Changes in operating assets and liabilities: | NM | |||||||||||
Accounts Receivable | (493 | ) | (808 | ) | (39 | %) | ||||||
Inventories | (39 | ) | 384 | NM | ||||||||
Accounts Payable | 884 | 508 | 74 | % | ||||||||
Commodities Payable | 589 | 556 | 6 | % | ||||||||
Other | (163 | ) | (340 | ) | (52 | %) | ||||||
Net Cash Flow from Operations | $ | 190 | $ | (1 | ) | NM | ||||||
Cash Flow from Investing | ||||||||||||
Purchases of PP&E | (157 | ) | (325 | ) | (52 | %) | ||||||
Proceeds from Insurance on Involuntary Conversion | 109 | - | NM | |||||||||
Net Cash Flow from Investing | $ | (48 | ) | $ | (325 | ) | (85 | %) | ||||
Cash Flow from Financing | ||||||||||||
Net Change in Debt | (99 | ) | 481 | NM | ||||||||
Net Cash Flow from Financing | $ | (99 | ) | $ | 481 | NM | ||||||
Net Change in Cash | $ | 43 | $ | 155 | NM | |||||||
BOP Cash Balance | $ | 5,825 | $ | 5,263 | ||||||||
Net Change in Cash | 43 | 155 | ||||||||||
EOP Cash Balance | $ | 5,868 | $ | 5,418 | ||||||||
RiceBran Technologies
Consolidated Balance Sheets (Unaudited)
(in $000)
Period Ending | ||||||||||||
3/31/22 | 12/31/21 | % Chg. | ||||||||||
Assets | ||||||||||||
Cash and Cash Equivalents | $ | 5,868 | $ | 5,825 | 1 | % | ||||||
Accounts Receivable, net | 4,629 | 4,136 | 12 | % | ||||||||
Inventories | 2,482 | 2,444 | 2 | % | ||||||||
Other Current Assets | 952 | 810 | 18 | % | ||||||||
Total Current Assets | $ | 13,931 | $ | 13,215 | 5 | % | ||||||
PP&E, Net | 14,887 | 15,444 | (4 | %) | ||||||||
Operating Lease right-of-use assets | 2,043 | 2,127 | (4 | %) | ||||||||
Goodwill & Intangibles | 484 | 527 | (8 | %) | ||||||||
Total Assets | $ | 31,345 | $ | 31,313 | 0 | % | ||||||
Liabilities and Shareholders' Equity | ||||||||||||
Accounts Payable | $ | 1,672 | $ | 826 | 102 | % | ||||||
Commodities Payable | 2,291 | 1,702 | 35 | % | ||||||||
Accruals | 1,397 | 1,470 | (5 | %) | ||||||||
Leases, Current | 478 | 468 | 2 | % | ||||||||
Debt, Current | 4,938 | 4,690 | 5 | % | ||||||||
Total Current Liabilities | $ | 10,776 | $ | 9,156 | 18 | % | ||||||
Leases, Not Current | 1,880 | 2,048 | (8 | %) | ||||||||
Debt, Not Current | 1,035 | 1,356 | (24 | %) | ||||||||
Derivative Warrant Liability | 429 | 258 | 66 | % | ||||||||
Total Liabilities | $ | 14,120 | $ | 12,818 | 10 | % | ||||||
Preferred Stock | 75 | 75 | NM | |||||||||
Common Stock | 326,525 | 326,279 | 0 | % | ||||||||
Accumulated Deficit | (309,375 | ) | (307,859 | ) | 0 | % | ||||||
Total Shareholders' Equity | $ | 17,225 | $ | 18,495 | (7 | %) | ||||||
Total Liabilities and Shareholders' Equity | $ | 31,345 | $ | 31,313 | 0 | % | ||||||
RiceBran Technologies
Net Cash and Net Debt Reconciliation (Unaudited) (Non-GAAP)
(in $000)
Period Ending | ||||||||||||
3/31/22 | 12/31/21 | % Chg. | ||||||||||
Cash and Cash Equivalents | $ | 5,868 | $ | 5,825 | 1 | % | ||||||
Less: Total Debt, Current and Non-current | 5,973 | 6,046 | (1 | %) | ||||||||
Net Cash (Debt) | $ | (105 | ) | $ | (221 | ) | (52 | %) | ||||
SOURCE: RiceBran Technologies