SCOTTSDALE, Ariz., Nov. 14, 2014 /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 third quarter of 2014 ended September 30, 2014.
3rd quarter consolidated revenues total $10.4 million, a 19% increase as compared to consolidated revenues of $8.7 million recorded in the 3rd quarter of 2013
3rd quarter USA segment revenue increased by 92% to $5.9 million with gross margins improving by 10 percentage points to 34% compared to the 3rd quarter of 2013
Gross profit in the USA segment also increased by 10 percentage points sequentially over the prior quarter aided by a continued shift in business mix toward human ingredients and nutritional and functional foods
W. John Short, CEO and President, commented: "Third quarter results improved on a year-over-year basis, in spite of a number of challenges that slowed the progression of our growth in the quarter. In our USA segment, we continued to deliver significant year-over-year improvement with a 92% increase in revenue, a 10 percentage point increase in gross margins and a nearly threefold increase in gross margin dollars. That growth was achieved despite supply chain disruptions principally caused by the unprecedented drought conditions in California. In addition, we have made significant investments of time and money to set the stage for growth in 2015. The expansion projects to increase production capacity at both Healthy Natural in Irving, Texas and our Stage 2 plant in Dillon, Montana are mostly complete and RiceBran Technologies now has ample production capacity to grow revenues. In addition, we have developed more than 50 new SKUs at Healthy Natural for both new and existing customers. The majority of those new SKUs have recently launched or are launching during the next 6 weeks."
Short continued: "In Brazil we also experienced shortages in raw bran availability during the Brazilian winter months, and production was further disrupted by the temporary shutdown of the entire Irgovel plant due to a structural equipment failure that occurred at the end of August. Temporary repairs were completed by mid-September to restart production and we have made plans to complete final repairs and perform annual maintenance in December 2014 rather than January 2015. This will enable us to start the 2015 year at full production and we expect to reach or exceed our post-expansion production target of 9,000 metric tons per month, starting in January. Overall, the demand picture for both our USA and Brazil segments continues to strengthen. We have made investments and implemented new procedures to mitigate operational and supply chain risks. As a result, we continue to believe we are well positioned to unlock the significant growth potential of our company. Our talented and committed team is working diligently to deliver sustained financial growth and profitability as we move into 2015."
Consolidated revenues for Q3 2014 were $10.4 million, a 19.3% increase compared to last year's third quarter consolidated revenues of $8.7 million. The increase was led by a 92.3% increase in revenues at the Company's USA segment as our H&N operations continue to drive revenue expansion.
Revenue from the Brazil segment totaled $4.5 million in the 3rd quarter of 2014, a decline of 20.2% as compared to $5.7 million in Q3 2013. Brazil segment revenue was relatively unchanged compared to Q2 2014 due to the temporary plant shutdown at Irgovel in September. The Company expects significant improvement in Brazil following the completion of final repairs and sees that improvement becoming evident beginning in Q1 2015.
Consolidated gross profit in the third quarter increased by 25.3% to $1.0 million compared to gross profit of $0.8 million in Q3 2013. Consolidated gross profit increased slightly to 9.3% compared to 8.8% in Q3 2013. The increase in gross profit was mainly attributable to increased sales from our USA segment coupled with gross profit improving by 10.5 percentage points to 34.4%. This was largely offset by our Brazil segment where gross loss was $1.1 million due lost production and costs associated with temporary repairs to the plant at Irgovel. Consolidated operating expenses increased to $4.7 million in Q3 2014 compared to $3.4 million in the same 2013 period. The increase in operating expenses is attributable to a $0.9 million increase in SG&A expenses and a $0.4 million increase in depreciation and amortization.
For Q3 2014, the Company recorded a net loss attributable to common shareholders of $3.7 million or a loss of $0.47 per share on 7.9 million weighted average shares outstanding. This compares to a loss of $2.1 million or $1.83 per share on 1.1 million weighted average shares outstanding in Q3 2013.
Additional information can be found in the Company's Form 10-Q filed with the United States Securities and Exchange Commission (SEC) on November 14, 2014.
Dale Belt, CFO commented, "While we experienced a number of challenges in our operations, we remain focused on our business plan and continue to see improvement in a number of important financial metrics. Gross margins in our USA segment have improved substantially as our efforts to shift our business mix begin to bear fruit. We continue to work diligently to control costs as we improve sales in the USA and Brazil to progressively ramp revenue and capitalize on the growing demand in the food and beverage industry for gluten free, non-GMO, minimally processed healthy, natural and functional foods."
The Company will hold a conference call to discuss its 3rd quarter results and provide financial guidance today November 14, 2014 at 4:15 EDT. Call-in information is as follows:
- Date: November 14, 2014
- Time: 4:15 p.m. Eastern Standard 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 Third Quarter Earnings Release Call
This call is being webcast by ViaVid and can be accessed at http://public.viavid.com/index.php?id=111940.
The call will also be available for replay by accessing http://public.viavid.com/index.php?id=111940
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 http://www.ricebrantech.com.
This release contains forward-looking statements, including, but not limited to, statements about RiceBran Technologies' expectations regarding financial performance, production capacity, production levels, product demand, supply of raw materials, completion of projects 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 this press release and in RiceBran Technologies' filings with the Securities and Exchange Commission, including its most recent periodic reports.
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SOURCE RiceBran Technologies