SCOTTSDALE, Ariz., May 13, 2015 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 first quarter ended March 31, 2015.
Q1 2015 consolidated revenues rise to $9.7 million, up 25.7% from $7.7 million in Q1 2014
Q1 2015 USA segment gross margins remain strong at 32.6%, up from 32.4% in Q1 2014
Q1 2015 Brazil segment revenue increases 70.8% as the Company begins to ramp production
W. John Short, CEO & President, commented: “Now that we have largely completed a number of significant improvement projects in the U.S. and Brazil, we enter 2015 focused on improving financial performance. In the first quarter we achieved revenue increases in both segments despite the macroeconomic challenges in the Brazilian economy and customer delays in new product launches in the U.S. and Asia. USA segment margins remain very healthy and we expect our emphasis on new product development to continue to drive USA segment growth throughout 2015 as we focus on higher margin functional foods and nutri-cosmetics.”
Short continued: “Our Irgovel plant is now capable of operating as originally planned and the recent strong rice harvest should provide us with more than adequate supplies of bran for 2015. Overall, however, economic weakness in Brazil, including labor unrest and currency declines, continues to be a drag on performance from this segment. As we move through 2015, we intend to work diligently to maximize both our top and bottom line financial performance to reach our goal of positive EBITDA in 2015.”
Consolidated revenues in Q1 2015 were $9.7 million, a 25.7% increase compared to Q1 2014 consolidated revenues of $7.7 million. The increase was a direct result of increased revenues from the Company’s Brazil segment where production was reinitiated at Irgovel in January 2015 after the completion of annual maintenance and facility repairs in December.
Revenue from the Brazil segment totaled $4.6 million in Q1 2015, a 70.8% increase compared to revenue of $2.7 million recorded in Q1 2014 when the facility was idled for ten weeks to complete a major upgrade in capacity. While operations at Irgovel have been constrained due to weakness in the Brazilian currency, trucking strikes, and recession, revenue from Brazil is expected to ramp up significantly throughout the remainder of 2015.
Revenue from our USA segment was $5.1 million in Q1 2015, up slightly from revenue of $5.0 million recorded in Q1 2014. Revenue from human ingredients sales increased by $2.3 million in the quarter while animal nutrition sales declined by $2.3 million, reflecting the Company’s ongoing emphasis on shifting its business mix toward human ingredients.
Consolidated gross profit in Q1 2015 decreased by $0.4 million to $1.1 million with consolidated gross profit decreasing by 7.5 percentage points to 10.9% in Q1 2015 compared to 18.4% in Q1 2014. The decrease was attributable to a decline in gross profit at our Brazil segment which was negatively impacted by supply chain issues resulting from trucking strikes that affected our ability to receive high quality bran and ship finished product. Operating expenses remained relatively flat in Q1 2015 at $4.0 million compared to $4.1 million Q1 2014
Earnings before interest, taxes, depreciation, amortization, stock-based compensation and other non-cash charges (“Adjusted EBITDA”) for Q1 2015 was $(1.6 million). This compares to Adjusted EBITDA of $(0.9 million) in Q1 2014. 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).
For the first quarter of 2015 the Company recorded a net loss attributable to shareholders of ($3.0) million or a loss of ($0.33) per diluted share on 9.15 million weighted average shares outstanding. This compares to a loss of ($1.9) million or ($.62) per diluted share on 3.02 million weighted average shares outstanding in the first 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 May 13, 2015.
The Company will hold a conference call to discuss its first quarter 2015 results on May 13, 2015 at 4:30 PM EDT. Call-in information is as follows:
- Date: May 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 First Quarter 2015 Financial Results Call
This call is being webcast by ViaVid and can be accessed at
The call will also be available for replay by accessing
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.
This release contains forward-looking statements, including, but not limited to, statements about RiceBran Technologies’ expectations regarding financial performance, bran supply, production capacity 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 table below contains a reconciliation of net income (GAAP) and Adjusted EBITDA (Non-GAAP) for the three months ended March 31, 2015 and March 31, 2014.
Adjusted EBITDA Reconciliation
For the three months ended March 31, 2015 (in thousands)
Investor Relations Contact:
Ascendant Partners, LLC