THE WOODLANDS, Texas,
Aug. 12, 2020 /PRNewswire/ --
RiceBran Technologies (Nasdaq: RIBT), a global leader in the
production and marketing of value-added products derived from rice
bran and a producer of rice, rice co-products, and barley and oat
products, announced financial results today for the quarter ended
June 30, 2020.
"The surge in demand for rice driven by COVID-19 that we saw at
the end of the first quarter extended into the second quarter
depleting rough rice supply and rapidly escalating prices. As a
result of diminishing rice supply, production at Golden Ridge was
severely impacted in the latter half of the quarter resulting in
weaker than expected results for RiceBran as a whole," said
Brent Rystrom, President and CEO.
"Rice prices have now fallen about 50% from peak levels, the
harvest in Louisiana is about half
complete and looks strong, and harvest in Arkansas should start in a few weeks on what
also looks like a large, high-quality crop. This should help
RiceBran Technologies return to a trajectory of improving financial
performance."
Second Quarter 2020 Operational Highlights
- Shortage of rough rice leads to significant slowdown at
Golden Ridge: Revenues from our Golden
Ridge Rice Mill decreased over 50% in the second quarter of
2020 from the first quarter as the mill was unable to acquire rough
rice at economical prices in the latter half of the second quarter.
Negative operating leverage from lower production was exacerbated
by penalties paid on unfulfilled customer commitments.
- Demand for SRB remains resilient in a challenging
environment: Revenues from the company's core stabilized rice
bran (SRB) business grew sequentially in the second quarter of 2020
as demand from animal feed end markets remained resilient.
Nevertheless, profitability for the business declined from the
first quarter due to a shift in mix away from higher margin
derivative products for human consumption.
- Company is focused on maintaining a strong balance
sheet: Capital resources and operating liquidity remain solid
with over $3.3 million in cash on
hand and an incremental $2.0 million
in borrowing capacity added after the end of the second quarter.
Overall liquidity was negatively impacted in the quarter by the
slow down at Golden Ridge in as it drove a reduction in borrowing
capacity and forced a reduction in commodities payables.
- Further cost cuts identified ahead of strategic advisor
engagement: The successful implementation of cost cutting
initiatives has resulted in a significant reduction in SG&A,
and an incremental $2 million in
annualized cuts have been identified and are expected to be put in
place by year end. The company has retained BMO Capital Markets to
undertake a strategic review of opportunities to transform the
business in 2021.
- Peter Bradley appointed
Executive Chairman: Effective August 14,
2020, Mr. Rystrom will be stepping down as CEO, President,
and a member of the Board of Directors, and Peter G. Bradley, who joined RiceBran's board in
2019, will be assuming Mr. Rystrom's duties upon his departure as
Executive Chairman. Current Chairman, Brent
Rosenthal, has been appointed Lead Independent
Director.
"On behalf of the Company, I want to thank Mr. Rystrom for his
commitment and dedication to the Company during these challenging
times" Mr. Bradley stated. "I believe we have built a valuable
ingredients platform at RiceBran Technologies. I hope to bring my
decades of experience as an executive in consumer foods, dietary
supplements, food ingredients and specialty chemicals to work with
the entire team to maximize that value through streamlining our
operations and focusing on our core competencies. I also look
forward to working with our strategic advisors to help us review
opportunities to further improve profitability in 2021."
Second Quarter 2020 Financial Highlights
- Revenue: Revenues of $5.9
million decreased 5% from $6.2
million in the second quarter of 2020. The year over year
decrease in revenue was due primarily to lower revenues from
RiceBran's core stabilized rice bran business, and to a lesser
extent from lower volumes from our Golden Ridge operations,
partially offset by an increase in revenue from MGI Grain. Animal
feed product revenues increased 4% from the prior year, while
revenues from products intended for human consumption decreased by
9%. The latter decline reflected a shift in product mix at RiceBran
combined with lower production volumes at Golden Ridge.
- Gross Losses: Gross losses were $1.2 million in the second quarter of 2020
compared to gross losses of $0.2
million in the second quarter of 2019. The increase in
gross losses was primarily attributable to greater losses from
Golden Ridge due to low production volumes and higher input
commodity prices. Gross profits were also negatively impacted by a
year-over-year decline in revenue from RiceBran operations as well
as the shift in RiceBran's sales mix away from more profitable
products from human consumption. Gross loss for the quarter
included $0.2 million in expenses
incurred to settle penalties for unmet delivery commitments.
- SG&A: SG&A expenses decreased to $2.6 million from $3.4
million in the second quarter of 2019, a decrease of
$0.8 million, primarily related to
benefits from initiatives enacted in the first quarter of 2020 to
reduce overall SG&A costs. SG&A in the second quarter of
2020 was also negatively impacted by approximately $300,000 in non-cash losses on the disposal of
assets. Management remains confident in its ability to drive
overall SG&A to $9-10 million for
the full year before taking into account newly identified savings
which should have a positive impact on reducing overall SG&A in
the second half of 2020 and 2021.
- Net Loss, EBITDA, and Adj. EBITDA: Net loss for the
second quarter of 2020 was $3.9
million compared to a net loss of $3.7 million in the second quarter of 2019.
EBITDA (Non-GAAP) losses were $3.2
million in the second quarter of 2020, in line with EBITDA
losses of $3.2 million in the second
quarter of 2019. EBITDA losses were flat with a year ago as
reductions in SG&A have been offset by higher gross losses from
operations. Adjusted EBITDA (Non-GAAP) losses were $2.9 million in the second quarter of 2020,
compared to Adjusted EBITDA losses of $2.8 million in the second quarter of 2019, after
adding back $394,000 in stock comp
and other expenses.
- Liquidity: Capital resources and operating liquidity
remains adequate with over $3.3
million in cash on hand and an incremental $2.0 million in borrowing capacity added after
the end of the second quarter. Overall liquidity was negatively
impacted in the second quarter by the slow down at Golden Ridge in
as it drove a reduction in borrowing capacity under the Company's
factoring facility, which was exacerbated by a reduction in
commodities payable as Golden Ridge completed raw material sourcing
contracts without the ability to enter into new
agreements.
Conference Call Information
RiceBran Technologies will host a conference call today,
Wednesday, August 12, at 4:30 p.m. Eastern Time to discuss these results.
The conference call information is as follows:
- 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 Q2 2020
Financial Results Call
This call is being webcast by ViaVid and can be accessed at
http://public.viavid.com/index.php?id=141130.
The call will also be available for replay by accessing
http://public.viavid.com/index.php?id=141130.
About RiceBran Technologies
RiceBran Technologies is a global leader in the production and
marketing of value-added products derived from rice bran as well as
a producer of rice, rice co-product, and barley and oat products.
The target markets for our products include food and animal
nutrition manufacturers and retailers, as well as specialty food,
functional food and nutritional supplement manufacturers and
retailers. Our highly nutritious and clean label ingredient
products derived from rice bran, one of the world's most
underutilized food sources, are produced utilizing our proprietary
and patented stabilization technology. 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 its future financial results, sales growth,
EBITDA improvements, and SG&A. These statements are made based
upon current expectations that are subject to known and unknown
risks and uncertainties, including the risks that RBT operations
are disrupted by the COVID-19 pandemic. 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. 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.
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).
The table below contains a reconciliation of net income (GAAP)
and Adjusted EBITDA (Non-GAAP) for the three months and six months
ended June 30, 2020. 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.
RiceBran
Technologies
|
Consolidated
Income Statement (Unaudited) (GAAP)
|
(in $000,
except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3 Months
Ended
|
|
|
|
6 Months
Ended
|
|
|
|
|
|
|
|
|
|
|
6/30/20
|
|
6/30/19
|
|
%
Chg.
|
|
6/30/20
|
|
6/30/19
|
|
%
Chg.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
|
|
|
|
$5,903
|
|
$6,219
|
|
(5%)
|
|
$14,233
|
|
$12,583
|
|
13%
|
|
Cost of Goods
Sold
|
|
|
|
|
|
|
($7,127)
|
|
($6,463)
|
|
10%
|
|
($15,862)
|
|
($12,484)
|
|
27%
|
Gross (Loss)
Profit
|
|
|
|
|
|
|
($1,224)
|
|
($244)
|
|
402%
|
|
($1,629)
|
|
$99
|
|
(1745%)
|
|
Gross
Margin
|
|
|
|
|
|
|
(21%)
|
|
(4%)
|
|
|
|
(11%)
|
|
1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling,
General & Admin.
|
|
|
|
|
|
|
($2,615)
|
|
($3,422)
|
|
(24%)
|
|
($5,165)
|
|
($6,763)
|
|
(24%)
|
Operating
(Loss)
|
|
|
|
|
|
|
($3,839)
|
|
($3,666)
|
|
5%
|
|
($6,794)
|
|
($6,664)
|
|
2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest Income
(Expense)
|
|
|
|
|
|
|
($68)
|
|
$4
|
|
(1800%)
|
|
($106)
|
|
($8)
|
|
1225%
|
|
Other Income
(Expense)
|
|
|
|
|
|
|
($42)
|
|
$3
|
|
(1500%)
|
|
($82)
|
|
$2
|
|
(4200%)
|
Loss Before
Income Taxes
|
|
|
|
|
|
|
($3,949)
|
|
($3,659)
|
|
8%
|
|
($6,982)
|
|
($6,670)
|
|
5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxes
|
|
|
|
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
Net Loss -
Cont. Ops.
|
|
|
|
|
|
|
($3,949)
|
|
($3,659)
|
|
8%
|
|
($6,982)
|
|
($6,670)
|
|
5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Disc.
Ops.
|
|
|
|
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
($216)
|
|
(100%)
|
Net
Loss
|
|
|
|
|
|
|
($3,949)
|
|
($3,659)
|
|
8%
|
|
($6,982)
|
|
($6,886)
|
|
1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic &
Diluted Loss per Share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cont.
Ops.
|
|
|
|
|
|
|
($0.10)
|
|
($0.11)
|
|
(9%)
|
|
($0.17)
|
|
($0.21)
|
|
(19%)
|
|
Disc.
Ops.
|
|
|
|
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
($0.01)
|
|
(100%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
Average Shares
|
|
|
|
|
|
|
40,052,163
|
|
33,204,332
|
|
21%
|
|
40,007,660
|
|
31,382,927
|
|
27%
|
|
Outstanding
(Basic & Diluted)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RiceBran
Technologies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA and
Adjusted EBITDA Reconciliation (non-GAAP)
|
|
|
|
|
|
|
|
|
|
|
|
|
(in
$000)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3 Months
Ended
|
|
|
|
6 Months
Ended
|
|
|
|
|
|
|
|
|
|
|
6/30/20
|
|
6/30/19
|
|
%
Chg.
|
|
6/30/20
|
|
6/30/19
|
|
%
Chg.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Loss
|
|
|
|
|
|
|
($3,949)
|
|
($3,659)
|
|
8%
|
|
($6,982)
|
|
($6,670)
|
|
5%
|
|
Interest
Expense (income)
|
|
|
|
|
|
|
$68
|
|
($4)
|
|
(1800%)
|
|
$106
|
|
$8
|
|
1225%
|
|
Depreciation
and Amortization
|
|
|
|
|
|
|
$636
|
|
$463
|
|
37%
|
|
$1,274
|
|
$873
|
|
46%
|
EBITDA
|
|
|
|
|
|
|
($3,245)
|
|
($3,200)
|
|
1%
|
|
($5,602)
|
|
($5,789)
|
|
(3%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Income
(Expense)
|
|
|
|
|
|
|
$42
|
|
($3)
|
|
(1500%)
|
|
$82
|
|
($2)
|
|
(4200%)
|
|
Share Based
Comp
|
|
|
|
|
|
|
$352
|
|
$251
|
|
40%
|
|
$664
|
|
$643
|
|
3%
|
|
Acquisition
Related
|
|
|
|
|
|
|
-
|
|
$137
|
|
(100%)
|
|
-
|
|
$481
|
|
(100%)
|
Adjusted
EBITDA
|
|
|
|
|
|
|
($2,851)
|
|
($2,815)
|
|
1%
|
|
($4,856)
|
|
($4,667)
|
|
4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RiceBran
Technologies
|
Consolidated
Statement of Cash Flows (Unaudited)
|
(in
$000)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6 Months
Ended
|
|
|
|
|
|
|
|
|
6/30/20
|
|
6/30/19
|
Cash Flow
from Operations
|
|
|
|
|
|
|
|
|
|
Net Loss -
Cont. Ops.
|
|
|
|
|
|
|
($6,982)
|
|
($6,670)
|
Adjustments to
reconcile net losses to net cash used in operating
activities:
|
|
|
|
|
|
Depreciation
|
|
|
|
|
|
|
$1,157
|
|
$853
|
|
Amortization
|
|
|
|
|
|
|
$117
|
|
$20
|
|
Share Based
Comp
|
|
|
|
|
|
|
$664
|
|
$643
|
|
Loss on
disposition of property and equipment
|
|
|
|
|
$308
|
|
-
|
|
Other
|
|
|
|
|
|
|
($107)
|
|
($2)
|
Changes in
operating assets and liabilities (net of
acquisitions)
|
|
|
|
|
|
|
|
Accounts
Receivable
|
|
|
|
|
|
|
$1,090
|
|
($774)
|
|
Inventories
|
|
|
|
|
|
|
($1,111)
|
|
($5)
|
|
Accounts
Payable
|
|
|
|
|
|
|
($201)
|
|
($348)
|
|
Commodities
Payable
|
|
|
|
|
|
|
($631)
|
|
($768)
|
|
Other
|
|
|
|
|
|
|
($675)
|
|
($398)
|
Net Cash
Flow from Operations
|
|
|
|
|
|
|
($6,371)
|
|
($7,449)
|
|
|
|
|
|
|
|
|
|
|
|
Cash Flow
from Investing
|
|
|
|
|
|
|
|
|
|
Plant, Property
& Equipment purchases
|
|
|
|
|
|
($843)
|
|
($2,319)
|
Acquisition of
MGI
|
|
|
|
|
|
|
-
|
|
($3,795)
|
Net Cash
Flow from Investing
|
|
|
|
|
|
|
($843)
|
|
($6,114)
|
|
|
|
|
|
|
|
|
|
|
|
Cash Flow
from Financing
|
|
|
|
|
|
|
|
|
|
Proceeds from
Stock Issuance
|
|
|
|
|
|
|
-
|
|
$11,593
|
Proceeds from
Warrants Exercised
|
|
|
|
|
|
|
$12
|
|
$1,990
|
Proceeds from
Options Exercised
|
|
|
|
|
|
|
-
|
|
$147
|
Net Change in
Debt
|
|
|
|
|
|
|
$2,105
|
|
($22)
|
Net Cash
Flow from Financing
|
|
|
|
|
|
|
$2,117
|
|
$13,708
|
|
|
|
|
|
|
|
|
|
|
|
Net Change
in Cash
|
|
|
|
|
|
|
($5,097)
|
|
$145
|
|
|
|
|
|
|
|
|
|
|
|
BOP Cash
Balance
|
|
|
|
|
|
|
$8,444
|
|
$7,269
|
Net Change in
Cash
|
|
|
|
|
|
|
($5,097)
|
|
$145
|
EOP Cash
Balance
|
|
|
|
|
|
|
$3,347
|
|
$7,414
|
|
|
|
|
|
|
|
|
|
|
|
RiceBran
Technologies
|
Consolidated
Balance Sheets (Unaudited)
|
(in
$000)
|
|
|
|
|
|
|
|
|
Period
Ended
|
|
|
|
|
|
|
|
|
6/30/20
|
|
12/31/19
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and Cash
Equivalents
|
|
|
|
|
|
|
$3,347
|
|
$8,444
|
Accounts
Receivable
|
|
|
|
|
|
|
$2,718
|
|
$3,738
|
Inventory
|
|
|
|
|
|
|
$2,009
|
|
$898
|
Other Current
Assets
|
|
|
|
|
|
|
$1,392
|
|
$691
|
Total
Current Assets
|
|
|
|
|
|
|
$9,466
|
|
$13,771
|
|
|
|
|
|
|
|
|
|
|
|
PP&E,
Net
|
|
|
|
|
|
|
$18,523
|
|
$19,077
|
Operating Lease
right-of-use assets
|
|
|
|
|
|
|
$2,604
|
|
$2,752
|
Goodwill &
Intangibles
|
|
|
|
|
|
|
$4,748
|
|
$4,865
|
Other Long-term
Assets
|
|
|
|
|
|
|
-
|
|
$27
|
Total
Assets
|
|
|
|
|
|
|
$35,341
|
|
$40,492
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
and Shareholders' Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts
Payable
|
|
|
|
|
|
|
$949
|
|
$833
|
Commodities
Payable
|
|
|
|
|
|
|
$198
|
|
$829
|
Accruals &
Prepayments
|
|
|
|
|
|
|
$1,524
|
|
$1,773
|
Leases,
Current
|
|
|
|
|
|
|
$421
|
|
$410
|
Debt,
Current
|
|
|
|
|
|
|
$2,389
|
|
$1,967
|
Total
Current Liabilities
|
|
|
|
|
|
|
$5,481
|
|
$5,812
|
|
|
|
|
|
|
|
|
|
|
|
Leases, Not
Current
|
|
|
|
|
|
|
$2,624
|
|
$2,864
|
Debt, Not
Current
|
|
|
|
|
|
|
$1,847
|
|
$73
|
Total
Liabilities
|
|
|
|
|
|
|
$9,952
|
|
$8,749
|
|
|
|
|
|
|
|
|
|
|
|
Preferred
Stock
|
|
|
|
|
|
|
$112
|
|
$112
|
Common
Stock
|
|
|
|
|
|
|
$319,487
|
|
$318,811
|
Accumulated
Deficit
|
|
|
|
|
|
|
($294,162)
|
|
($287,180)
|
Accumulated
other comprehensive loss
|
|
|
|
|
|
($48)
|
|
-
|
Total
Shareholders' Equity
|
|
|
|
|
|
|
$25,389
|
|
$31,743
|
|
|
|
|
|
|
|
|
|
|
|
Total
Liabilities and Shareholders' Equity
|
|
|
|
|
|
$35,341
|
|
$40,492
|
|
|
|
|
|
|
|
|
|
|
|
Investor Contact:
Richard
Galterio, Ascendant Partners, LLC, (732) 410-9810,
rich@ascendantpartnersllc.com
View original
content:http://www.prnewswire.com/news-releases/ricebran-technologies-reports-2q-2020-financial-results-and-provides-business-updates-301111312.html
SOURCE RiceBran Technologies