RiceBran Technologies Reports Financial Results for Q2 2015

Aug 13, 2015, 16:05 ET from RiceBran Technologies

SCOTTSDALE, Ariz., Aug. 13, 2015 /PRNewswire/ -- RiceBran Technologies (NASDAQ: RIBT and RIBTW) (the "Company" or "RBT"), a global leader in the production and marketing of value added products derived from rice bran, announced today the Company's financial results for the second quarter ended June 30, 2015.

Financial Highlights

Company achieves positive consolidated Adjusted EBITDA in Q2 2015

Q2 2015 consolidated revenues reach $11.4 million up 18% sequentially from Q1 and up modestly compared to $11.3 million in Q2 2014

Q2 2015 USA segment revenues rise to a record $6.9 million with gross profit percentage rising 8.5 points to 32.7%

Q2 2015 Brazil segment revenues increased 35% year-over-year in local currency; in U.S. dollars revenue was $4.5 million in Q2 2015 compared to $4.6 million in Q2 2014

W. John Short, CEO & President, commented:  "Reaching positive consolidated Adjusted EBITDA is a significant milestone for RiceBran Technologies.  While this modest positive result represents a small step forward from a financial perspective, it serves as evidence that we are moving in the right direction despite the challenges we still face with the economy and currency in Brazil and the drought in California.  More importantly, our efforts in both segments to improve sales mix while controlling costs have yielded positive results including strong growth in our USA segment gross profit and narrowing losses in Brazil.  With our expansion and repair projects behind us in Brazil and our expansions complete in the USA Segment, we are focused on increasing profitable sales to fill available capacity and improving our bottom line."

Short continued:  "To improve performance, we have further reduced costs in Brazil in Q2 in line with reduced raw bran availability. We are already seeing positive results from that realignment and expect to achieve positive unaudited Adjusted EBITDA in Brazil in the month of July.  As we move into the second half of 2015, we are focused on our goal of reaching positive consolidated cash flows through higher margin revenue expansion coupled with continued tight cost control."

Operating Results

Consolidated revenues in Q2 2015 were $11.4 million compared to $11.3 million in Q2 2014. The modest increase in revenue was a result of increased revenues from our USA segment partially offset by a decrease in revenue from our Brazil segment due to the negative impact of foreign currency exchange rate declines.   

Revenue from our USA segment reached a record $6.9 million in Q2 2015, up 2.1% from revenue of $6.7 million recorded in Q2 2014. Our revenue mix in Q2 2015 continued to shift to higher margin functional ingredients and packaged foods.

Revenue from the Brazil segment totaled $4.5 million in Q2 2015, essentially flat compared to revenue of $4.6 million recorded in Q2 2014.  Revenue was negatively impacted by approximately $1.7 million due to foreign currency translation related to the decline in the Brazilian currency exchange rate.  On a local currency basis, Brazil segment revenue in the quarter increased by 35% compared to Q2 2014. Revenue from Brazil is expected to build progressively throughout the remainder of 2015 despite economic difficulties that continue to affect our supply chain and our ability to produce at maximum capacity.

Consolidated gross profit in Q2 2015 increased by 83% to $2.2 million compared to $1.2 million recorded in the 2nd quarter of 2014.  Overall, our consolidated gross profit percentage increased by 9.1 percentage points to 19.6% reflecting the shift to higher margin product sales in our USA Segment and a narrowing of negative gross profit in Brazil.   Gross profit in Brazil was negatively impacted by the sell through of lower quality finished goods inventory resulting from raw bran supply issues. Operating expenses declined to $3.8 million in Q2 2015 compared to $4.2 million Q2 2014 primarily due to a reduction in employee related expenses and an incremental decline in amortization expenses. 

Adjusted EBITDA

Earnings before interest, taxes, depreciation, amortization, stock-based compensation and other non-cash charges ("Adjusted EBITDA") for Q2 2015 was $13,000 at the consolidated level. This compares to a consolidated Adjusted EBITDA loss of $1.1 million in Q2 2014. This improvement was driven by our USA segment which recorded Adjusted EBITDA of $543,000, largely offset by an Adjusted EBITDA loss of $530,000 in the Brazil segment. Adjusted EBITDA is a non-GAAP measure that management believes provides important insight into RBT's operating results (see reconciliation of non-GAAP measures below).

Net Loss

For the second quarter of 2015 the Company recorded a net loss attributable to shareholders of ($3.5) million or a loss of ($0.38) per diluted share on 9.2 million weighted average shares outstanding. This compares to a loss of ($15.1) million or ($3.52) per diluted share on 4.3 million weighted average shares outstanding in the second quarter of 2014.

Additional information can be found in the Company's Form 10-Q filed with the United States Securities and Exchange Commission on August 13, 2015.

The Company will hold a conference call to discuss its second quarter 2015 results on August 13, 2015 at 4:30 PM EDT.  Call-in information is as follows:

  • Date: August 13, 2015
  • Time: 4:30 p.m. Eastern Daylight Time
  • Direct Dial-in number for US/Canada: (201) 493-6780
  • Toll Free Dial-in number for US/Canada: (877) 407-3982
  • Dial-In number for international callers: (201) 493-6780
  • Participants will ask for the RiceBran Technologies Second Quarter 2015 Financial Results Call

This call is being webcast by ViaVid and can be accessed at http://public.viavid.com/index.php?id=115900

The call will also be available for replay by accessing http://public.viavid.com/index.php?id=115900.

About RiceBran Technologies

RiceBran Technologies is a human food ingredient and animal nutrition company focused on the procurement, bio-refining and marketing of numerous products derived from rice bran. RiceBran Technologies has proprietary and patented intellectual property that allows us to convert rice bran, one of the world's most underutilized food sources, into a number of highly nutritious human food ingredient and animal nutrition products.  Our target markets are human food ingredients and animal nutrition manufacturers and retailers, as well as natural 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 www.ricebrantech.com.

Forward-Looking Statements

This release contains forward-looking statements, including, but not limited to, statements about RiceBran Technologies' expectations regarding financial performance, bran supply, production capacity, product mix, costs, and future growth. 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. 

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 tables below contain a reconciliation of net income (GAAP) and Adjusted EBITDA (Non-GAAP) for the three months ended June 30, 2015 and the six months ended June 30, 2015. 

RiceBran Technologies

Adjusted EBITDA Reconciliation

For the three months ended June 30, 2015 (in thousands)

Corp. & USA

Brazil

Consolidated

Net loss

$          (2,222)

$          (1,736)

$          (3,958)

Interest expense

357

518

875

Interest income

-

(19)

(19)

Income tax benefit

(6)

-

(6)

Depreciation & amortization

710

472

1,182

Unadjusted EBITDA

$          (1,161)

$             (765)

$          (1,926)

Add Back Other Items:

Change in fair value of derivative liabilities

(384)

-

(384)

Loss on extinguishment

1,904

-

1,904

Foreign currency exchange, net

-

(32)

(32)

Other income/expense

-

74

74

Non-recurring severance payments

-

180

180

Share-based compensation

184

13

197

Adjusted EBITDA

$              543

$             (530)

$                13

RiceBran Technologies

Adjusted EBITDA Reconciliation

For the six months ended June 30, 2015 (in thousands)

Corp. & USA

Brazil

Consolidated

Net loss

$          (3,569)

$          (4,034)

$          (7,603)

Interest expense

650

1,023

1,673

Interest income

-

(68)

(68)

Income tax benefit

(13)

-

(13)

Depreciation & amortization

1,259

1,085

2,344

Unadjusted EBITDA

$          (1,673)

$          (1,994)

$          (3,667)

Add Back Other Items:

Change in fair value of derivative liabilities

(557)

-

(557)

Loss on extinguishment

1,904

-

1,904

Foreign currency exchange, net

-

188

188

Other income/expense

(155)

147

(8)

Non-recurring severance payments

-

180

180

Share-based compensation

376

26

402

Adjusted EBITDA

$             (105)

$          (1,453)

$          (1,558)

Investor Contact: Ascendant Partners, LLC Fred Sommer +1-732-410-9810 fred@ascendantpartnersllc.com

SOURCE RiceBran Technologies



RELATED LINKS

http://www.ricebrantech.com