PR Newswire
THE WOODLANDS, Texas, April 1, 2019
THE WOODLANDS, Texas, April 1, 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 and rice co-products, announced today the Company's financial results for the year ended December 31, 2018.
"We made progress on many fronts in 2018 – the acquisition of Golden Ridge Rice Mills in Arkansas, keeping our customers supplied during major production issues at one of our facilities in the second and third quarters, achieving a substantial increase in our shareholders' equity, receiving all of our planned facility certifications, and, in the 2018 fourth quarter, accelerating sales of our rice bran products by more than 15%," said Brent Rystrom, President and Chief Executive Officer. "We now have a portfolio of assets that each have an ability to deliver substantial sales and EBITDA growth at the plant level, and we are planning a major expansion of our rice milling and stabilized rice bran operations in Arkansas. Scaling production and sales at these facilities are a major focus that will help in our drive to achieve positive adjusted EBITDA."
"We are also excited to announce the agreement to acquire MGI Grain," added Rystrom. "MGI Grain, based in East Grand Forks, MN, will bring us new barley and oat ingredients that complement our rice and rice bran product offerings. We believe our sales team can drive substantial sales growth of MGI Grain's product offering and expand already meaningful EBITDA."
2018 Key Accomplishments:
2018 Business Highlights:
2018 Fourth Quarter Business Highlights:
2019 Subsequent Events
2019 Guidance Updates:
"We continue to execute on our strategic and financial plans to position RBT for sustainable revenue and EBITDA growth," said Dennis Dykes, Chief Financial Officer. "Our balance sheet has strengthened considerably in 2018 through warrant exercises and our Golden Ridge acquisition. This has enabled us to increase cash while making significant investments in the business, and significantly improve shareholders' equity. With the additional capital received subsequent to the year's end, we are in a strong position to grow the business and build value for stockholders throughout 2019 and in the years to come."
Conference Call Information
RiceBran Technologies will host a conference call today, Monday, April 1st, at 10:00 a.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=133767.
The call will also be available for replay by accessing http://public.viavid.com/index.php?id=133767.
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.
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 acquisition of MGI Grain, the sufficiency of its cash position to pursue its plans through 2019, the rice production volumes in California, Louisiana and Arkansas, the price of rice bran, the rice milling volumes in the Delta region and the impact of these volumes on its financial performance, and its business plans, future growth, revenue and adjusted EBITDA. These statements are made based upon current expectations that are subject to known and unknown risks and uncertainties, including the risks that RBT does not complete the acquisition of MGI Grain or receive the resulting benefit from this acquisition. 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 | |||||||
Consolidated Statements of Operations | |||||||
Years Ended December 31, 2018 and 2017 | |||||||
(in thousands, except share and per share amounts) | |||||||
2018 | 2017 | ||||||
Revenues | $ 14,762 | $ 13,355 | |||||
Cost of goods sold | 11,780 | 9,564 | |||||
Gross profit | 2,982 | 3,791 | |||||
Selling, general and administrative expenses | 11,194 | 9,888 | |||||
Loss from continuing operations before other income (expense) | (8,212) | (6,097) | |||||
Other income (expense): | |||||||
Interest expense | (12) | (1,623) | |||||
Change in fair value of derivative warrant liabilities | - | 670 | |||||
Loss on extinguishment of debt | - | (8,290) | |||||
Other income | 193 | 307 | |||||
Other expense | (25) | (182) | |||||
Total other income (expense) | 156 | (9,118) | |||||
Loss from continuing operations before income taxes | (8,056) | (15,215) | |||||
Income tax (expense) benefit | (45) | 5,030 | |||||
Loss from continuing operations | (8,101) | (10,185) | |||||
Income from discontinued operations, net of tax | - | 3,983 | |||||
Net loss | (8,101) | (6,202) | |||||
Less - Net loss attributable to noncontrolling interest | |||||||
in discontinued operations | - | (1,671) | |||||
Net loss attributable to RiceBran Technologies shareholders | (8,101) | (4,531) | |||||
Less - Dividends on preferred stock, beneficial conversion feature | - | 778 | |||||
Net loss attributable to RiceBran Technologies common shareholders | $ (8,101) | $ (5,309) | |||||
Basic earnings (loss) per common share: | |||||||
Continuing operations | $ (0.37) | $ (0.92) | |||||
Discontinued operations | - | 0.47 | |||||
Basic loss per common share - RiceBran Technologies | $ (0.37) | $ (0.45) | |||||
Diluted earnings (loss) per common share: | |||||||
Continuing operations | $ (0.37) | $ (0.92) | |||||
Discontinued operations | - | 0.47 | |||||
Diluted loss per common share - RiceBran Technologies | $ (0.37) | $ (0.45) | |||||
Weighted average number of shares outstanding: | |||||||
Basic | 22,099,149 | 11,923,923 | |||||
Diluted | 22,099,149 | 11,923,923 | |||||
RiceBran Technologies | |||||||
Consolidated Balance Sheets | |||||||
December 31, 2018 and 2017 | |||||||
(in thousands, except share amounts) | |||||||
2018 | 2017 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ 7,044 | $ 6,203 | |||||
Restricted cash | 225 | 775 | |||||
Accounts receivable, net of allowance for doubtful accounts of $14 and $8 | 2,529 | 1,273 | |||||
Purchase price working capital receivable | 1,147 | - | |||||
Inventories | |||||||
Finished goods | 856 | 564 | |||||
Packaging | 102 | 114 | |||||
Deposits and other current assets | 610 | 519 | |||||
Total current assets | 12,513 | 9,448 | |||||
Property and equipment, net | 15,010 | 7,850 | |||||
Goodwill | 3,178 | - | |||||
Other long-term assets, net | 16 | 63 | |||||
Total assets | $ 30,717 | $ 17,361 | |||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ 1,583 | $ 765 | |||||
Commodities payable | 2,735 | - | |||||
Accrued salary, wages and benefits | 933 | 773 | |||||
Accrued expenses | 520 | 741 | |||||
Unearned revenue | 145 | 75 | |||||
Escrow liability | 259 | 258 | |||||
Note payable to seller of Golden Ridge | 609 | - | |||||
Long term debt, current portion | 77 | 4 | |||||
Total current liabilities | 6,861 | 2,616 | |||||
Long term debt, less current portion | 145 | 12 | |||||
Total liabilities | 7,006 | 2,628 | |||||
Commitments and contingencies | |||||||
Shareholders' Equity: | |||||||
Preferred stock, 20,000,000 shares authorized: | |||||||
Series G, convertible, 3,000 shares authorized, | 201 | 313 | |||||
Common stock, no par value, 50,000,000 shares authorized, | |||||||
29,098,207 and 18,046,731shares issued and outstanding | 296,739 | 279,548 | |||||
Accumulated deficit | (273,229) | (265,128) | |||||
Total shareholders' equity | 23,711 | 14,733 | |||||
Total liabilities and shareholders' equity | $ 30,717 | $ 17,361 |
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 and twelve months ended December 31, 2018 and December 31, 2017. 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 December 31 (in thousands)
| |||||
2018 | 2017 | ||||
Net income (loss) | $ (2,356) | $ (1,795) | |||
Interest expense | 7 | 7 | |||
Depreciation & amortization | 229 | 186 | |||
Unadjusted EBITDA | $ (2,120) | $ (1,602) | |||
Add Back Other Items: | |||||
Change in fair value of derivative liabilities | - | 138 | |||
Other income/expense | (132) | (59) | |||
Share-based compensation | 269 | 169 | |||
Acquisition related expenses | 132 | - | |||
Corporate relocation associated expenses | - | 15 | |||
Adjusted EBITDA | $ (1,851) | $ (1,339) | |||
RiceBran Technologies | |||||
Adjusted EBITDA Reconciliation | |||||
For the twelve months ended December 31 (in thousands) | |||||
2018 | 2017 | ||||
Net income (loss) | $ (8,056) | $ (15,215) | |||
Interest expense | 12 | 1,623 | |||
Depreciation & amortization | 773 | 757 | |||
Unadjusted EBITDA | $ (7,271) | $ (12,835) | |||
Add Back Other Items: | |||||
Change in fair value of derivative liabilities | - | (670) | |||
Loss on extinguishment of debt | - | 8,290 | |||
Other income/expense | (168) | (125) | |||
Share-based compensation | 886 | 1,073 | |||
Acquisition related expenses | 132 | - | |||
Corporate relocation associated expenses | - | 116 | |||
Other | - | 92 | |||
Adjusted EBITDA | $ (6,421) | $ (4,059) |
Investor Contact:
Ascendant Partners, LLC
Richard Galterio
+1(732)410-9810
[email protected]
View original content:http://www.prnewswire.com/news-releases/ricebran-technologies-reports-full-year-2018-financial-results-and-provides-business-updates-300821634.html
SOURCE RiceBran Technologies
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