NutraCea Announces 2011 Year End Financial Results
(firmenpresse) - SCOTTSDALE, AZ -- (Marketwire) -- 04/02/12 -- NutraCea (OTCQB: NTRZ) (PINKSHEETS: NTRZ), a global leader in the production and marketing of value added products derived from rice bran, today announced its financial results for the year ending December 31, 2011.
W. John Short, Chief Executive Officer of NutraCea, stated, "In 2011, NutraCea continued to make significant strides from both a financial and operational point of view. Financially, we delivered continued improvement in all areas of our business. Consolidated revenues increased 10.7%, gross profit increased 8.8%, operating expenses decreased by $3.7 million and our net loss attributable to NutraCea shareholders improved by $5.6 million."
"These results were driven by a 24.2% increase in revenue and a 71.6% increase in gross profit in our Brazil segment. We are optimistic about the future of this segment as we continue working toward completion of the capital expansion projects currently underway at our Brazilian facility. Management is equally pleased that we have been able to increase core SRB sales in our USA segment over the last two years while divesting non-core assets related to cereal and equine brand products."
Mr. Short continued, "A key component of our business strategy is to develop strategic alliances that will help us leverage our competitive strengths to increase value for our shareholders and business partners. In 2011 we entered into two strategic alliances: a joint research and development agreement with DSM Innovation Center, a subsidiary of Royal DSM N.V.; and an exclusive, co-branded international product distribution agreement covering over 40 countries with Beneo, a subsidiary of SudZucker Group. We are working diligently with our alliance partners on both of these efforts."
Consolidated revenues increased 10.7% to $37.0 million, driven by a 24.2% increase in the Brazil segment;
Total gross profit increased 8.8% to $7.6 million, driven by a 71.6% increase in the Brazil segment;
Consolidated gross profit margin remained stable year over year at approximately 21%;
Made final payment to creditors under the terms of the Amended Plan of Reorganization (the "Plan") in January 2012. All creditors were paid in full;
Signed co-branded sales and marketing agreement with BENEO-Remy, a world leader in functional food ingredients, covering international distribution of our products in key global markets;
Entered into a joint research and development agreement with DSM Innovation Center and
Completed the expansion of distilled fatty acid plant in Brazil.
Mr. Short concluded, "In addition to our financial improvement and operational milestones, we are particularly pleased to have made the final payment of all amounts due to creditors under the Plan. We are proud that we were able to pay all creditors in full while not impairing our equity shareholders as is typical with most bankruptcy restructuring outcomes. We are happy to put this behind us and now look forward to focusing on our business and creating the upmost value for our loyal shareholders."
Consolidated revenues for the year ending December 31, 2011 totaled $37.0 million, an increase of $3.6 million, or 10.7%, as compared to $33.4 million for the year ending December 31, 2010. The improvement is attributable to our Brazil segment revenues increasing $5.1 million, or 24.2% as shown in the table below.
The increase in Brazil segment revenues is attributable to the overall favorable pricing environment and increased volume in animal feed and oil products. Animal feed revenues benefited from higher prices in other commodity products like soy and corn, which are traditional animal feed sources. Rice bran based products provide an alternative source of animal feed. Oil revenues continue to benefit from current higher pricing trends in vegetable oil markets that began in the last quarter of 2010 and continued throughout 2011 before moderating slightly near the end of 2011.
USA segment revenues decreased $1.5 million to $10.7 million in 2011 as compared to $12.2 million in 2011. Revenues decreased due to a decline in cereal product revenues and other revenues of $1.5 million due to the March 2010 sale of the cereal product related assets and a decline in animal nutrition product revenues of $0.4 million on lower volume due to competitive pressures. This decrease was offset by an increase in human nutrition product revenues of $0.4 million, due to increased volumes from existing customers and the impact of price increases which took effect in the middle of the first and fourth quarters of 2011.
Brazil segment gross profit percentage improved from 12.2% to 16.9%. The improvement in margin from the 24.2% increase in revenues and resulting improvement in plant efficiency was partially offset by the impact of lower margin shipping and handling revenue. Revenue related to shipping and handling increased 77.6 % between 2011 and 2010 as international customer sales rose. In addition, the shift in sales mix from fully refined oil to crude oil resulted in lower cost of goods sold. Crude oil requires less production costs than refined oil. In 2011, because of the favorable pricing environment in crude oil markets, a significant portion of production was sold as crude oil in comparison to 2010.
The 2011 USA segment gross profit percentage was negatively impacted by higher 2011 raw bran prices and the impact of recording depreciation on the Dillon, Montana facility in 2011. Average raw bran prices continued to rise throughout 2011 and as of December 31, 2011, were approximately 52% higher, on average, than prices as of the end of 2010. These higher bran prices resulted in approximately a 7% decline in gross profit. To offset the higher raw bran cost, the Company implemented a price increase in the first quarter of 2011 for certain customers and additional sales price increases in the fourth quarter of 2011 to offset higher bran costs. The Company also experienced USA segment margin erosion of 4 percentage points associated with the $0.5 million increase in depreciation expense recognized in cost of goods sold on the Dillon, Montana facility in 2011. No depreciation was recognized on the facility in 2010 while the facility was an asset held for sale.
Date: Thursday, April 5th, 2012
Time: 1:00 p.m. Eastern
Participant Dial-In: (480) 629-9664
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It is recommended that participants dial in approximately 10 minutes prior to the start of the 1:00 p.m. Eastern call. A telephonic replay of the conference call may be accessed approximately two hours after the call through April 12th, 2012. Please dial 1-877-870-5176 for U.S. or 1-858-384-5517 for international callers and enter the access code 4529241.
This release contains forward-looking statements, including, but not limited to, statements about NutraCea's expectations regarding future sales prospects, profitability, price adjustments and the completion of capital projects in Brazil. These statements are made based upon current expectations that are subject to known and unknown risks and uncertainties. The Company 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 NutraCea's filings with the Securities and Exchange Commission, including NutraCea's most recent periodic reports.
NutraCea is a human food ingredient and animal nutrition company focused on the procurement, bio-refining and marketing of numerous products derived from rice bran. NutraCea 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 and animal nutrition products. Our target markets are human food and animal nutrition manufacturers and retailers, as well as natural food, functional food and nutraceutical 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 .
Alliance Advisors, LLC
Alan Sheinwald
President & Founder
(914) 669-0222
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Datum: 02.04.2012 - 06:45 Uhr
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