RiceBran Technologies Reports Financial Results for Q1 2016

SCOTTSDALE, Ariz., May 16, 2016 /PRNewswire/ -- 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, announces financial results for Q1 2016.

Financial Highlights

Revenues: Consolidated revenues for Q1 2016 rise to $10.1 million compared to $9.7 million in the same quarter of the prior year. USA segment revenues increase by 53% compared to Q1 2015 and by 23% sequentially to reach a record $7.8 million. Brazil segment revenue declined from $4.6 million in Q1 2015 to $2.3 million in Q1 2016 due decreased throughput and a decline in the value of the Brazilian currency.

Gross Profit: Consolidated Q1 2016 gross profit improved by 100% to $2.2 million compared to $ 1.1 million in Q1 2015.  USA segment gross profit increased by 49% compared to Q1 2015 with margins remaining strong at 31.7% inclusive of a 50% increase in animal nutrition sales.

Adjusted EBITDA: The Company's USA and Corporate segment achieved $376,000 in positive adjusted EBITDA in Q1 2016 compared to an adjusted EBITDA loss of ($647,000) in the same quarter of the prior year.  The Company's Brazil segment recorded an Adjusted EBITDA loss of ($593,000) in Q1 2016 down from ($924,000) in Q1 2015.  Overall consolidated adjusted EBITDA loss in Q1 2016 was ($217,000), a $1.3 million improvement from the ($1.6 million) recorded in Q1 2015.

Net Loss: Q1 2016 consolidated net loss narrowed to ($251,000), a 92% improvement compared to a consolidated net loss of ($3.0 million) recorded in Q1 2015.

W. John Short, CEO and President, commented: "In the first quarter of 2016 we recorded record revenue in our USA segment which grew significantly both quarter over quarter and sequentially.  Our sales growth was broad based coming from both human ingredients and functional foods as well as animal nutrition.  We experienced significant growth from two customers that were a very small percentage of sales in 2015 as well as a nice ramp from our largest customer that launched a complete line of reformulated products early in 2016.  The distribution agreement signed with Kentucky Equine Research late in 2015 helped us achieve a 50% increase in animal nutrition sales in the quarter.  Most importantly, we achieved this performance while at the same time reducing USA segment operating expenses quarter over quarter. We have seen continued follow through thus far in Q2 2016 and believe that our sales initiatives in 2015 coupled with our supply chain strategies are beginning to deliver sustainable growth to take advantage of the capacity investments we have made in our USA Segment plants over the past two years.  Consumer demand for our products continues to improve and we are now set to add organic rice bran products to our portfolio based on the agreements we entered into with Narula to fuel further growth in 2016."

Short continued, "In Brazil, the continued effects of the country's economic collapse and currency devaluation have weighed heavily on our Brazil segment.  While we have streamlined operations and continue to reduce costs to mitigate its effect on our overall business, we are still experiencing supply chain difficulties that have led to inconsistent performance, low processing rates and further losses, albeit at a reduced level due to the success of our cost reduction initiatives.  The recovery of $1.9 million related to our acquisition of Irgovel coupled with our capital raise in February of this year places us on more solid financial ground, giving us the ability to grow in our USA segment while we explore a number of both short and long term strategic alternatives for Brazil in order to ride out this economic storm. Overall, we see continued strong demand in our USA segment as we move through 2016 and believe our marketing efforts and greater bran availability will help to drive further improvement in both our overall top and bottom line performance for the foreseeable future."

Q1 2016 Operating Results

Revenues

Consolidated revenues for Q1 2016 were $10.1 million, a 4.1% increase compared to Q1 2015 consolidated revenues of $9.7 million. The increase in revenue was due to a 53% year over year increase in USA segment revenue that reached a record $7.8 million partially offset by a decline in Brazil segment revenue. USA segment revenue was bolstered by revenue increases of more than 50% in both our human ingredient and functional food business as well as animal nutrition sales. Brazil Segment revenue was negatively impacted by a decrease in throughput as well as a 27% quarter over quarter decline in the average Brazilian Real versus US Dollar exchange rate. The Company expects the business environment in Brazil to remain challenging throughout 2016 as the country continues to experience a severe economic downturn.

Gross Profit

Consolidated gross profit for Q1 2016 reached $2.2 million, a 100% increase compared to gross profit of $1.1 million in Q1 2015 with gross profit percentage increasing by 11.4 percentage points to 22.3%.  The increase gross profit and gross profit percentage was a direct result of the significant increase in high margin revenue from our USA segment coupled with a decline in revenue from our Brazil segment which recorded negative gross profit in both quarters.  USA segment gross profit reached $2.5 million, a 49% increase compared to $1.7 million in Q1 2015.  Gross profit percentage from our USA segment declined by 0.9 percentage points to 31.7% due to the significant quarter over quarter increase in animal nutrition sales.

Operating Expenses

Consolidated operating expenses decreased by $265,000 to $3.7 million in Q1 2016 compared to $4.0 million in 2015. The decrease in operating expenses is mainly attributable to a $108,000 decrease in SG&A expenses as well as $157,000 decrease in depreciation and amortization.  USA segment SG&A expenses decreased slightly quarter over quarter despite the significant increase in revenue with overall operating expenses as a percentage of segment sales in the quarter declining to 17.7% as compared to 28.7% in Q1 2015.

Adjusted EBITDA

On a fully consolidated basis, we recorded a consolidated adjusted EBITDA loss of ($217,000) in Q1 2016, a $1.3 million improvement over an adjusted EBITDA loss of ($1.6 million) recorded in Q1 2015. USA and Corporate segment adjusted EBITDA in Q1 2016 improved to $376,000 compared to ($647,000) adjusted EBITDA loss recorded in Q1 2015.  Brazil segment adjusted EBITDA loss narrowed to ($593,000) in Q1 2016, compared to an adjusted EBITDA loss ($924,000) in Q1 2015. Adjusted EBITDA is a non-GAAP measure management believes provides important insight into the Company's operating results (see reconciliation of non-GAAP measures below).

Net Loss

For the first quarter of 2016 the Company recorded a net loss attributable to shareholders of ($251,000) or a loss of ($0.03) per diluted share on 9.2 million weighted average shares outstanding. This compares to a loss of ($3.0 million) or ($.33) per diluted share on 9.2 million weighted average shares outstanding in the first quarter of 2015

Additional information can be found in the Company's Form 10-Q filed with the United States Securities and Exchange Commission on May 16, 2016.

The Company will hold a conference call to discuss its Q1 2016 results on May 16, 2016 at 4:30 PM EDT.  Call-in information is as follows:

• Date: May 16, 2016
• 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 2016 Financial Results Call

This call is being webcast by ViaVid and can be accessed at http://public.viavid.com/index.php?id=119662 

The call will also be available for replay by accessing http://public.viavid.com/index.php?id=119662

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 http://www.ricebrantech.com.

Forward-Looking Statements

This release contains forward-looking statements, including, but not limited to, statements about RiceBran Technologies' expectations regarding financial performance, production capacity, production levels, product demand, capital expenditures, supply of raw materials, completion of projects 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 this press release and 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, 2016 and 2015.  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. 

SOURCE RiceBran Technologies

Related Links

http://www.ricebrantech.com