THE WOODLANDS, Texas, Aug. 13, 2019 /PRNewswire/ ? RiceBran Technologies (NASDAQ: RIBT), 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 June 30, 2019.
"During the second quarter, we made significant progress in positioning RiceBran for both improved results in the second half of the year and sustainable long-term growth," said Brent Rystrom, President and Chief Executive Officer. "Our core rice bran business generated nearly 20% growth, driven by large customer wins which will lead to higher sales in the second half of the year. We are also beginning to see the advantages of broadening our product line through the acquisitions of MGI Grain at the beginning of the quarter and Golden Ridge Rice Mills in November of 2018. Once our debottlenecking project at Golden Ridge is completed in the third quarter, we expect to recognize the benefits from these additional products and the synergies these new operations bring to our proprietary ingredient platform. We are confident this will drive positive trends in new customer wins, overall revenue and EBITDA in the second half of 2019."
Second Quarter 2019 Operational Highlights:
Second Quarter 2019 Financial Highlights:
"We have largely worked through the operational and financial challenges resulting from our debottlenecking project and the unfavorable rice contract at Golden Ridge. As we begin to see the benefits from securing better contracts and improved efficiencies at the mill, we expect to reverse the trends we have experienced with this business in the first half of 2019, leading to stronger revenue growth and a reduction in adjusted EBITDA losses in the second half of 2019. Nevertheless, prior guidance for full-year revenues of $37-to-$40 million, and a transition to positive adjusted EBITDA, are likely to prove to be optimistic," said Todd Mitchell, Chief Financial Officer.
Conference Call Information
RiceBran Technologies will host a conference call today, Tuesday, August 13th, 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=135694.
The call will also be available for replay by accessing http://public.viavid.com/index.php?id=135694.
About RiceBran Technologies
RiceBran Technologies is a specialty ingredient company servicing the food, animal nutrition and specialty products markets. We utilize our proprietary processes to convert rice bran, one of the world's most underutilized food source, 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 our 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 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 | ||||||||||
(Unaudited) (in thousands, except share and per share amounts) | ||||||||||
Three Months Ended | Six Months Ended | |||||||||
2019 | 2018 | 2019 | 2018 | |||||||
Revenues | $ 6,219 | $ 3,198 | $ 12,583 | $ 6,750 | ||||||
Cost of goods sold | 6,463 | 2,535 | 12,484 | 5,133 | ||||||
Gross profit (loss) | (244) | 663 | 99 | 1,617 | ||||||
Selling, general and administrative expenses | 3,422 | 2,830 | 6,763 | 5,683 | ||||||
Operating loss | (3,666) | (2,167) | (6,664) | (4,066) | ||||||
Other income (expense): | ||||||||||
Interest income | 23 | - | 23 | - | ||||||
Interest expense | (19) | (2) | (31) | (3) | ||||||
Other income | 6 | 9 | 6 | 9 | ||||||
Other expense | (3) | - | (4) | (13) | ||||||
Total other income (expense), net | 7 | 7 | (6) | (7) | ||||||
Loss before income taxes | (3,659) | (2,160) | (6,670) | (4,073) | ||||||
Income tax benefit | - | - | - | - | ||||||
Loss from continuing operations | (3,659) | (2,160) | (6,670) | (4,073) | ||||||
Loss from discontinued operations | - | - | (216) | - | ||||||
Net loss | $ (3,659) | $ (2,160) | $ (6,886) | $ (4,073) | ||||||
Basic loss per common share: | ||||||||||
Continuing operations | $ (0.11) | $ (0.11) | $ (0.21) | $ (0.22) | ||||||
Discontinued operations | - | - | (0.01) | - | ||||||
Basic loss per common share | $ (0.11) | $ (0.11) | $ (0.22) | $ (0.22) | ||||||
Diluted loss per common share: | ||||||||||
Continuing operations | $ (0.11) | $ (0.11) | $ (0.21) | $ (0.22) | ||||||
Discontinued operations | - | - | (0.01) | - | ||||||
Diluted loss per common share | $ (0.11) | $ (0.11) | $ (0.22) | $ (0.22) | ||||||
Weighted average number of shares outstanding: | ||||||||||
Basic | 33,204,332 | 20,366,451 | 31,382,927 | 18,731,925 | ||||||
Diluted | 33,204,332 | 20,366,451 | 31,382,927 | 18,731,925 | ||||||
RiceBran Technologies | ||||||
Condensed Consolidated Balance Sheets | ||||||
(Unaudited) (in thousands, except share amounts) | ||||||
June 30, | December 31, | |||||
ASSETS | ||||||
Current assets: | ||||||
Cash and cash equivalents | $ 7,189 | $ 7,044 | ||||
Restricted cash | 225 | 225 | ||||
Accounts receivable, net of allowances for doubtful accounts of $71 and $14 | 3,954 | 2,529 | ||||
Receivable from sellers of Golden Ridge - working capital adjustments to purchase price | 563 | 1,147 | ||||
Receivable from seller MGI - working capital adjustments to purchase price | 36 | - | ||||
Inventories | ||||||
Finished goods | 1,133 | 856 | ||||
Packaging | 111 | 102 | ||||
Other current assets | 854 | 610 | ||||
Total current assets | 14,065 | 12,513 | ||||
Property and equipment, net | 18,794 | 15,010 | ||||
Operating lease right-of-use assets | 2,896 | - | ||||
Goodwill | 3,903 | 3,178 | ||||
Intangible assets | 961 | 16 | ||||
Other long-term assets, net | 26 | - | ||||
Total assets | $ 40,645 | $ 30,717 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||
Current liabilities: | ||||||
Accounts payable | $ 1,633 | $ 1,583 | ||||
Commodities payable | 1,534 | 2,735 | ||||
Accrued salary, wages and benefits | 828 | 933 | ||||
Accrued expenses | 1,108 | 520 | ||||
Customer prepayments | 39 | 145 | ||||
Payable to purchaser of HN - working capital adjustment to purchase price | 475 | 259 | ||||
Note payable to seller of Golden Ridge | 358 | 609 | ||||
Operating lease liabilities, current portion | 295 | - | ||||
Finance lease liabilities, current portion | 93 | 45 | ||||
Long term debt, current portion | 21 | 32 | ||||
Total current liabilities | 6,384 | 6,861 | ||||
Operating lease liabilities, less current portion | 2,799 | - | ||||
Finance lease liabilities, less current portion | 216 | 86 | ||||
Long term debt, less current portion | 48 | 59 | ||||
Total liabilities | 9,447 | 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, | ||||||
34,246,714 and 29,098,207 shares, issued and outstanding | 311,201 | 296,739 | ||||
Accumulated deficit | (280,115) | (273,229) | ||||
Total shareholders' equity | 31,198 | 23,711 | ||||
Total liabilities and shareholders' equity | $ 40,645 | $ 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. 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 EBITDA).
The table below contains a reconciliation of net income (GAAP) and Adjusted EBITDA (Non-GAAP) for the three and six months ended June 30, 2019 and June 30, 2018. 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
| ||||
2019 | 2018 | |||
Net loss | $ (3,659) | $ (2,160) | ||
Interest expense | 19 | 2 | ||
Interest income | (23) | - | ||
Depreciation & amortization | 463 | 172 | ||
Unadjusted EBITDA | $ (3,200) | $ (1,986) | ||
Add Back Other Items: | ||||
Other income/expense | (3) | (9) | ||
Share-based compensation | 251 | 171 | ||
Acquisition related expenses | 137 | - | ||
Adjusted EBITDA | $ (2,815) | $ (1,824) |
RiceBran Technologies
| ||||
2019 | 2018 | |||
Net loss | $ (6,670) | $ (4,073) | ||
Interest expense | 31 | 3 | ||
Interest income | (23) | - | ||
Depreciation & amortization | 873 | 371 | ||
Unadjusted EBITDA | $ (5,789) | $ (3,699) | ||
Add Back Other Items: | ||||
Other income/expense | (2) | 4 | ||
Share-based compensation | 643 | 491 | ||
Acquisition related expenses | 481 | - | ||
Adjusted EBITDA | $ (4,667) | $ (3,204) |
Investor Contact
Richard Galterio,
Ascendant Partners, LLC,
+1 (732) 410-9810,
[email protected]
SOURCE RiceBran Technologies
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