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 second quarter
and six month period ended June 30, 2011.
Financial Highlights for the Second Quarter
Ended June 30, 2011
- Consolidated Revenues increased 28.6% to $9.6 million;
- Bio-Refining revenues increased 62.3%;
- SRB segment revenues increased 13.1% after excluding 2010
revenues from our discontinued infant cereal product line;
- Gross profit increased 75.5% to $2.6 million; gross profit
percentage improved to 26.8% versus 19.6% a year ago;
- Operating expenses decreased by 12.2%;
- Loss from operations improved by 46.9% and;
- Net loss attributable to NutraCea shareholders was
$21,000.
W. John Short, Chief Executive Officer of NutraCea, stated,
"During the first half of 2011 we continued our emphasis on
increasing profitable sales and improving both gross profit dollars
and gross profit margin while maintaining our focus on reducing
operating expenses and driving the business toward positive cash
flow and profitability in all business segments.
"Our investments in Bio-Refining are starting to pay off
handsomely and we expect continued improvement at Irgovel as the
current expansion projects come on line between now and June 2012.
Because Irgovel exceeded predetermined performance targets defined
in the Alothon Membership Interest Purchase Agreement, Alothon
accelerated their purchase of membership units, bringing an
additional $1 million in cash into NutraCea.
"Our decision in early 2010 to exit the low margin infant cereal
business has also paid off. Sales of rice bran for human ingredient
applications and animal feed have increased, though at a slower
pace than Bio-Refining and not as fast as planned, and margins in
the SRB segment continue to improve.
"We are pleased that our Bio-Refining segment continues to
generate cash, that revenues are growing in both the Bio-Refining
and the remaining SRB segment product lines, and that the cash burn
in the Corporate segment has been reduced substantially.
Nevertheless, we must continue to increase profitable revenues in
our SRB business segment and reduce costs in all areas of the
business in order to meet cash needs in the Corporate and SRB
segments. We have recently taken additional steps to conserve cash,
including reductions in cash payments to our senior management team
and our Board, and we continue to pursue an equity and/or debt
financing transaction.
"I am encouraged by our continuing progress, especially
considering the difficult economic environment and the challenging
financial markets. I want to thank our management and staff, as
well as our board of directors, for their continuing efforts aimed
at driving our Company to overall profitability."
Financial Results for the Second Quarter Ended
June 30, 2011 Consolidated revenues for the three months ended
June 30, 2011 totaled $9.6 million, an increase of $2.1 million, or
28.6%, as compared to $7.5 million for the three months ended June
30, 2010. Bio-Refining segment revenues increased 62.3% or $2.6
million to $6.8 million for the second quarter of 2011 as compared
to $4.2 million for the same period in the previous year.
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2011 Second Quarter Revenue Breakdown By Business Segment (USD in thousands)
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Three months ended June 30, 2011 2010 CHANGE
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Bio-Refining $6.8 million $4.2 million +62.3%
% of Revenues 70.6% 56.0%
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SRB Segment $2.8 million $3.3 million -14.3%
% of Revenues 29.4% 44.0%
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Total Revenues $9.6 million $7.5 million +28.6%
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During the quarter, Bio-Refining revenues increased due to the
overall favorable pricing environment and increased volume in
animal feed and oil products. Animal feed revenue benefited from
higher prices in other commodity products such as soy and corn.
Rice bran products provide an alternative source of animal feed.
Oil revenues continue to benefit from the current higher pricing
trend in the premium vegetable oil markets.
The decrease in SRB segment revenues was comprised of a $0.8
million decline in infant cereal product revenue due to the March
2010 sale of the cereal product related assets. This decline was
offset by a $0.2 million increase in animal nutrition product
revenue and a $0.2 million increase in human nutrition products due
to increased existing customer sales volume and the impact from
price increases which took effect in the middle of the first
quarter of 2011.
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2011 Second Quarter Gross Profit Breakdown By Business Segment (USD in
thousands)
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Three months ended June 30, 2011 2010 CHANGE
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Bio-Refining $1.5 million $0.2 million +556%
% of Revenues 21.8% 5.4% +16.4%
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SRB Segment $1.1 million $1.2 million -12%
% of Revenues 38.7% 37.7% +1%
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Total Gross Profit $2.6 million $1.5 million +75.5%
% of Revenues 26.8% 19.6% +7.2%
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Consolidated gross profit for the three months ended June 30,
2011 totaled $2.6 million, an increase of $1.1 million, or 75.5%,
as compared to $1.5 million for the three months ended June 30,
2010. Gross profit margin improved to 26.8% during the 2011 second
quarter as compared to 19.6% for the same period in 2010.
Bio-Refining gross profit percentage improved to 21.8% during
the second quarter of 2011 as compared to 5.4% for the same period
in 2010. Cost of goods sold in this segment increased by $1.4
million, or 34.1%, while revenues increased 62.3%. Plant
efficiencies associated with a shift in sales mix and higher plant
production throughput driven by volume contributed to the margin
expansion.
Consolidated operating expenses totaled $4.6 million for the
second quarter of 2011 as compared to $5.2 million during the same
period in 2010. These results yielded an improved loss from
operations to $2.0 million for the second quarter of 2011 as
compared to $3.7 million for the same period in 2010.
For the second quarter of 2011, total other income was $2.0
million as compared to total other expense of $0.7 million. Warrant
liability income for the quarter ended June 30, 2011 was $2.4
million compared to warrant liability expense of $0.5 million for
the quarter ended June 30, 2010.
Net loss attributable to NutraCea shareholders for the period
ended June 30, 2011 was $21,000 or $0.00 per basic and diluted
share based on 198 million shares outstanding for the period ended
June 30, 2011 as compared to a net loss of $4.5 million or $0.02
per basic and diluted share based on 193 million shares outstanding
for the same period in 2010.
Financial Highlights for the Six Months Ended
June 30, 2011
- Consolidated revenues increased 19.8% to $17.6 million
- Gross profit increased 49.8% to $4.8 million; gross profit
percentage improved to 27.2% versus 21.8% a year ago
- Operating expenses decreased by 21.4%
- Loss from operations improved by 53.8%
- Net loss attributable to NutraCea shareholders improved by
47.7%
Financial Results for the Six Months Ended June
30, 2011 Consolidated revenues for the six months ended June
30, 2011 totaled $17.6 million, an increase of $2.9 million, or
19.8%, as compared to $14.7 million for the six months ended June
30, 2010. Bio-Refining segment revenues increased 49.7% or $4.1
million to $12.3 million for the first six months of 2011 as
compared to $8.2 million for the same period of the prior year.
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2011 Six Month Revenue Breakdown By Business Segment (USD in thousands)
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Six months ended June 30, 2011 2010 CHANGE
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Bio-Refining $12.3 million $8.2 million +49.7%
% of Revenues 69.4% 55.6%
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SRB Segment $5.4 million $6.5 million -17.5%
% of Revenues 30.6% 44.4%
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Total Revenues $17.6 million $14.7 million +19.8%
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2011 Six Month Gross Profit Breakdown By Business Segment (USD in thousands)
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Six months ended June 30, 2011 2010 CHANGE
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Bio-Refining $2.8 million $0.7 million +271%
% of Revenues 22.7% 9.1% +13.6%
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SRB Segment $2.0 million $2.5 million -17.7%
% of Revenues 37.5% 37.6% -0.1%
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Total Gross Profit $4.8 million $3.2 million +49.8%
% of Revenues 27.2% 21.8% +5.4%
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Consolidated gross profit for the six months ended June 30, 2011
totaled $4.8 million, an increase of 49.8%, or $1.6 million, as
compared to $3.2 million for the six months ended June 30, 2010.
Gross profit margin improved to 27.2% during the first six months
of 2011 as compared to 21.8% for the same period in 2010.
Bio-Refining gross profit percentage increased 13.6% to 22.7%
for the 2011 first six months as compared to 9.1% for the 2010
first six months. Bio-Refining segment cost of goods sold increased
27.4%, while revenues increased 49.7%.
Consolidated operating expenses totaled $8.0 million for the
first half of 2011 as compared to $10.2 million during the same
period in 2010, a decrease of $2.2 million. These results yielded
an improved loss from operations to $3.2 million for the 2011 first
six months as compared to $7 million for the same period in 2010.
For the first half of 2011, total other expenses were $0.9 million
as compared to total other expense of $0.6 million.
Net loss attributable to NutraCea shareholders for the six month
period ended June 30, 2011 totaled $4.1 million as compared to a
net loss of $7.8 million for the six month period ended June 30,
2010.
Liquidity and Capital Resources Cash and
cash equivalents for the period ended June 30, 2011 totaled $0.7
million. Total current assets and total assets were $14.5 million
and $58.0 million respectively. Total current liabilities and total
liabilities were $16.0 million and $26.9 million respectively.
Total equity was $20.5 million at June 30, 2011.
Three Months Ended June 30, 2011
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Corporate
and SRB Bio-Refining Consolidated
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Net income (loss) $ 18 $ (50) $ (32)
Adjustments to reconcile net
income (loss) to net cash
provided by (used in) operations:
Warrant liability income (2,435) - (2,435)
Other adjustments, net 1,147 127 1,274
Changes in operating asset and
liabilities:
Pre-petition liabilities - - -
Other changes, net 432 365 797
------------ ------------ ------------
Net cash provided by (used in)
operating activities $ (838) $ 442 $ (396)
============ ============ ============
Three Months Ended March 31, 2011
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Corporate
and SRB Bio-Refining Consolidated
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Net loss (1) $ (3,912) $ (175) $ (4,087)
Adjustments to reconcile net loss
to net cash provided by (used in)
operations:
Warrant liability expense 2,576 - 2,576
Other adjustments, net 570 722 1,292
Changes in operating asset and
liabilities:
Pre-petition liabilities (3,531) - (3,531)
Other changes, net (497) (101) (598)
------------ ------------ ------------
Net cash provided by (used in)
operating activities $ (4,794) $ 446 $ (4,348)
============ ============ ============
The Bio-Refining segment continues to generate cash from
operations. The Corporate and SRB segments, although improved
quarter over quarter, continue to use cash operationally.
Conference Call Details Date: Thursday,
August 18, 2011 Time: 1:00 p.m. Eastern U.S. Dial-In: (877)
941-4774 International Dial-In: (480) 629-9712 Live Webcast:
http://viavid.net/dce.aspx?sid=00008B28
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 September 1, 2011.
Please dial 877-870-5176 for U.S. or 858-384-5517 for international
callers and entering the access code, 4464294.
Forward-Looking Statements This release
contains forward-looking statements, including statements about
NutraCea's expectations regarding cash flow, profitability,
revenues and the completion of projects at Irgovel. 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.
About NutraCea NutraCea is a world leader
in production and marketing of value added products derived from
rice bran. NutraCea holds many patents for processed rice bran
(SRB) production technology and proprietary products derived from
SRB. NutraCea's proprietary technology enables the creation of food
and nutrition products to be unlocked from rice bran, normally an
underutilized co-product of rice milling. NutraCea also produces
rice based consumer health supplements which can be found at
http://www.nutraceaonline.com. More information can be found in the
Company's filings with the SEC and by visiting our website at
http://www.NutraCea.com.
Investor Contact: Alliance Advisors, LLC Alan Sheinwald
President & Founder (914) 669-0222 Email Contact