RiceBran Technologies Reports Financial Results for Q3 2015

SCOTTSDALE, Ariz., Nov. 12, 2015 /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, announced today the Company's financial results for the third quarter ended September 30, 2015.

Financial Highlights

Q3 2015 consolidated gross profit margins improve 13.8 percentage points to 23.1% compared to 9.3% in Q3 2014

Brazil Segment achieves Adjusted EBITDA of $205,000 in Q3 2015, a $1.7 million improvement compared to Q3 2014

Q3 2015 consolidated revenues totaled US $8.9 million, a decline of 14% compared to $10.4 million in Q3 2014, due principally to a $2.1 million currency translation loss in Brazil   

Q3 2015 consolidated operating expenses were reduced $1.3 million or 28% from $4.7 million to $3.4 million

W. John Short, CEO & President, commented:  "While our third quarter results continue to reflect the negative macroeconomic challenges we face in Brazil, we are pleased to have achieved a significant objective in our Brazil Segment: positive Adjusted EBITDA.  Our efforts to restructure operations at Irgovel have been successful and we are beginning to demonstrate the earnings potential of our rice bran bio-refining business model.  On a local currency basis we achieved 33% growth in Q3 revenues, delivered record local currency revenue in Brazil in the first nine months of 2015 and produced a healthy gross profit margin of over 19% in Q3 2015.  These significant improvements were largely hidden by the negative impact caused by the decline of the Brazilian Real."

Short continued:  "In our USA Segment, our largest natural products customer slowed purchases in Q3 as they moved into larger warehousing facilities to support expected future growth.  The relocation resulted in reduced purchase orders from that customer in Q3, which contributed to a 14.6% decline in USA Segment revenue for the quarter. However, with that relocation now complete, we are already seeing marked improvement. Revenue in October was the highest in our Company's history in the USA Segment, and we expect continued improvement as we move through the remainder of 2015 and into 2016. 

We remain focused on our goal of reaching consistent positive Adjusted EBITDA and positive consolidated cash flow in both segments through continued revenue expansion, further margin improvement, customer diversification and continued tight cost control."

Operating Results

Consolidated revenues in Q3 2015 experienced a 14% decline to $8.9 million compared to $10.4 million in Q3 2014 primarily due to the ($2.1) million negative impact of foreign currency translation from our Brazil Segment as a result of the sharp decline in Brazil's currency. On a constant currency basis, consolidated revenues would have increased by 6% in the period. 

While Q3 2015 Brazil Segment revenue increased 33% year over year on a local currency basis, revenue in US dollars, after foreign currency translation, totaled $3.9 million, a decline of 14.1% from revenue of $4.5 million recorded in Q3 2014. 

Revenue from our USA Segment in Q3 2015 declined 14.6% to $5.0 million compared to revenue of $5.9 million recorded in Q3 2014.  The decrease was primarily due to a large natural products customer reducing purchases in the quarter as they moved into larger facilities to support expected future growth.  Revenue was also negatively impacted, to a lesser extent, by a continued decline in sales to large consumer package goods (CPG) companies.

Consolidated gross profit for Q3 2015 was $2.1 million, a 113% increase compared to gross profit of $1.0 million recorded in Q3 2014.  Our consolidated gross profit percentage increased by 13.8 percentage points to 23.1% in Q3 2015 due to significant improvement in our Brazil Segment where gross margin percentage reached 19.1% compared to negative gross margin percentage of (23.5%) in Q3 2014.  This improvement is primarily a result of increased efficiency at our Irgovel plant related to the plant restructuring initiated in Q2 2015, partially offset by an 8.2 percentage point decline in gross profit percentage in our USA Segment in Q3 2015.

Continued tight cost control and restructuring to reduce costs at Irgovel combined with the foreign exchange impact in Brazil resulted in a $1.3 million reduction in operating expenses to $3.4 million in Q3 2015 compared to $4.7 million in Q3 2014. 

Adjusted EBITDA

Consolidated earnings before interest, taxes, depreciation, amortization, stock-based compensation and other non-cash charges ("Adjusted EBITDA") for Q3 2015 was a loss of ($269,000), an improvement of $1.3 million, compared to a consolidated Adjusted EBITDA loss of ($1.6) million in Q3 2014. The improvement in Adjusted EBITDA was driven by our Brazil segment which recorded a positive Adjusted EBITDA of $205,000, due to a significant improvement in gross margins coupled with our cost control initiatives. The improved Adjusted EBITDA in our Brazil segment was offset by an Adjusted EBITDA loss of ($474,000) in our USA segment. 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).

Net Loss

The Company recorded a net loss attributable to shareholders of ($0.5) million in Q3 2015 or a loss of ($0.06) per diluted share on 9.2 million weighted average shares outstanding. This represents a $0.41 per diluted share improvement compared to a loss of ($3.7) million or ($0.47) per diluted share on 7.9 million weighted average shares outstanding in Q3 2014.

Additional information can be found in the Company's Form 10-Q filed with the United States Securities and Exchange Commission on November 12, 2015.

The Company will hold a conference call to discuss its third quarter 2015 results on November 12, 2015 at 4:30 PM EST.  Call-in information is as follows:

• Date: November 12, 2015
• Time: 4:30 p.m. Eastern 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 Third Quarter 2015 Financial Results Call

This call is being webcast by ViaVid and can be accessed at http://public.viavid.com/index.php?id=117015. 

The call will also be available for replay by accessing http://public.viavid.com/index.php?id=117015.

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.

Forward-Looking Statements

This release contains forward-looking statements, including, but not limited to, statements about RiceBran Technologies' expectations regarding financial performance, customer diversification, costs, 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 September 30, 2015 and 2014 and the nine months ended September 30, 2015 and 2014.  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. 

Investor Contact:
Ascendant Partners, LLC
Fred Sommer
+(732)410-9810
[email protected]

SOURCE RiceBran Technologies

Related Links

http://www.ricebrantech.com