RiceBran Technologies Reports 2012 Year End Financial Results
Management to Host 2012 Earnings Conference Call Thursday, April 4th at 4:15 p.m. Eastern
(firmenpresse) - SCOTTSDALE, AZ -- (Marketwired) -- 04/02/13 -- RiceBran Technologies (OTCQB: RIBT), a global leader in the production and marketing of value added products derived from rice bran, today reported consolidated revenues of $37.7 million for the year ended December 31, 2012.
J. Dale Belt, Executive Vice President and CFO of RiceBran Technologies, commented, "During 2012, we achieved consolidated revenue growth despite dealing with all time high raw rice bran prices while also expanding and improving our bio-refining facility in Brazil. In addition, we continued working with our strategic alliance partners relative to international distribution of our products and research and development efforts on concentrating protein from rice bran. Looking forward, we believe we are well positioned to continue growing revenues as we move toward positive cash flow results and ultimately profitability."
Consolidated revenues for the year ending December 31, 2012 totaled $37.7 million as compared to $37.0 million for the same period of the prior year, an increase of 2.1%, in spite of the negative impact of foreign currency exchange rates related to the Brazil segment.
USA segment revenues increased 18.1% to $12.6 million in 2012 as compared to $10.7 million in 2011. Animal feed product revenues increased $0.7 million, or 12.5%, due to the impact of price increases. Human nutrition product revenues increased $1.5 million, or 34.8% due to the impact of price increases and 9.6% higher volume. The $1.9 million increase in revenues is net of a $0.3 million decline in revenues from toll processing infant cereal products which ceased in April 2011.
Brazil segment revenues decreased 4.4% to $25.1 million in 2012 as compared to $26.3 million in 2011. Revenues decreased $4.3 million as a result of the 14.4% decline in the average exchange rate between these periods. Offsetting this $4.3 million decline was a $3.1 million net increase in revenues comprised of the following: a $2.4 million increase in bulk defatted rice bran (DRB) revenues, a $2.0 million increase in refined oil and derivative product revenues, a $0.2 million increase in bagged animal feed product revenues; offset by, a $1.5 million decline in crude rice bran oil revenues.
Brazil revenues experienced a shift from bagged animal feed products to bulk DRB and oil revenues experienced a shift from crude oil to fully refined oil. Production disruptions during the capital expansion at Irgovel necessitated the shift to bulk DRB sales while the animal feed plant was coming on line. We do not expect this level of disruption in 2013, however the plant is expected to shut-down near the end of the year while certain new equipment is brought on line. The shift from crude oil sales to refined oil sales is part of a strategy to shift revenues to higher margin refined oil and derivative product sales. A U.S. drought caused demand pressure for Brazilian soybean and corn which increased animal feedstock prices generally, and bran prices specifically, in 2012. As a result, the Brazil segment passed along higher prices for DRB and bagged animal feed products during 2012.
Consolidated gross profit for 2012 was $6.1 million compared to $7.6 million in 2011, a decrease of 4.4 percentage points to 16.1% for 2012. The USA segment gross profit improved $0.6 million to $3.7 million and gross profit margin remained relatively unchanged at 29.2%. The USA segment gross profit was negatively impacted $1.3 million by higher raw bran prices in 2012 compared to 2011. Raw bran costs were on a continually escalating trend starting in early 2011 and continued to rise through the first quarter of 2012, before moderating slightly during the second quarter of 2012 and rising again after the third quarter of 2012. The impact of higher raw bran prices was offset by stabilized rice bran (SRB) selling price increases in the first and fourth quarters of 2011. The full impact of those SRB selling price increases impacted 2012.
The Brazil segment gross profit decreased 7.4% to $2.4 million. Gross profit decreased $0.4 million as a result of the 14.4% decline in the average foreign currency exchange rate between periods. The remaining margin reduction was attributable to higher raw bran costs, an unfavorable shift in sales mix to lower margin bulk animal feed products and decreased plant efficiency during the implementation of capital improvements. Raw bran costs were approximately 17% higher as of December 31, 2012 compared to December 31, 2011. Only a portion of these higher costs could be offset with higher selling prices.
Consolidated operating expenses were $14.8 million in 2012, compared to $17.2 million in 2011, an improvement of $2.4 million, or 14.0%.
Corporate segment selling, general and administrative expenses (SG&A) improved $0.5 million. The favorable impacts of a reduction in payroll related costs and a broad reduction in other expenses due to cost containment efforts were offset by the unfavorable impacts of a $0.2 million increase in share-based compensation expense and income of $0.4 million in 2011 associated with a settlement with a former officer.
Consolidated other expense increased to $4.4 million in 2012, compared to $1.6 million for 2011. Consolidated other expense increased $7.1 million as a result of the financing expense and loss on extinguishment recognized in connection with the 2012 issuances of convertible debt and related warrants. Interest expense increased $0.2 million as a result of increases in average outstanding debt between periods. Foreign currency exchange losses increased $0.5 million in the Brazil segment. The losses relate to certain Irgovel debt, and to a smaller extent Irgovel export-related accounts receivable, which are denominated and settled in US Dollars.
Consolidated net loss attributable to RiceBran Technologies shareholders for 2012 was $9.5 million, or $0.05 per share, compared to $10.1 million, or $0.05 per share for 2011. Loss from operations improved to $8.7 million in 2012 from $9.6 million in 2011. Results for 2012 include $4.4 million of Other Expense, an increase of $2.7 million compared to 2011. This increase in Other Expense was primarily the result of the $7.1 million of financing expense and loss on extinguishment related to the 2012 issuances of convertible debt and related warrants and a $0.5 million increase in foreign currency exchange loss. These expenses were offset by a $5.1 million increase in other income from the change in fair value of derivative warrant and conversion liabilities.
Date: Thursday, April 4th
Time: 4:15 p.m. Eastern
Participant Dial-In: (480) 629-9664
Live Webcast: or
It is recommended that participants dial in approximately 10 minutes prior to the start of the 4:15 p.m. Eastern call. There will also be a simultaneous live webcast of the conference call which can be accessed through the following audio feed link and archived recording of the conference call available under the Investor Relations section of the company website at or by clicking on the following link, .
This release contains forward-looking statements, including, but not limited to, statements about RiceBran Technologies' expectations regarding future revenues 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. 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 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 nutraceutical supplement manufacturers and retailers, both domestically and internationally. More information can be found in our filings with the SEC and by visiting our website at .
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Datum: 02.04.2013 - 13:10 Uhr
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