RiceBran Technologies (NASDAQ:RIBT) (the "Company"), a global leader in the development and manufacture of nutritional and functional ingredients derived from rice and other small and ancient grains for human food, nutraceutical, pet care and equine feed applications, today announced financial results for the second quarter ended June 30, 2022.
Summary Results ($000s) | 2Q22 | 2Q21 | % Chg. | Qual |
| 1H22 | 1H21 | % Chg. | Qual |
Revenue | $10,190 | $7,574 | 35% | Improved |
| $20,749 | $16,179 | 28% | Improved |
Gross Profit (Loss) | $(477) | $153 | NM | Declined |
| $25 | $825 | (97%) | Declined |
SG&A | $1,708 | $1,933 | (12%) | Improved |
| $3,400 | $3,674 | (7%) | Improved |
Operating Loss | $(2,038) | $(1,779) | 15% | Increased |
| $(3,228) | $(2,855) | 13% | Increased |
Net Loss | $(2,621) | $(1,923) | 36% | Increased |
| $(4,137) | $(1,332) | 211% | Increased |
| Adj. EBITDA Loss (non GAAP)* | $(1,323) | $(828) | 60% | Increased |
| $(1,708) | $(986) | 73% | Increased |
* Reconciliation of GAAP to Non-GAAP measures follows.
Second Quarter 2022 Operating Highlights
"Sales growth for our core-SRB business is at levels not seen in years and should accelerate further in the second half of the year with the addition of a large new customer in the companion animal business," said Executive Chairman Peter Bradley. "Losses in the quarter were higher than expected and disappointing, but isolated to our SRB derivatives business due to production issues which have been remediated and will not impact our operations in the second half of the year. Operating leverage from higher core-SRB volumes and a return to normal operations for our Value-Add SRB derivatives business should drive a significant improvement in our financial results in the second half of the year, positioning us for further improvements in 2023 and beyond."
Second Quarter 2022 Financial Highlights
"We continue to see strong demand for all our products, with total revenue growing 35% year-over-year in the second quarter, despite production challenges for our SRB derivatives business, which also resulted in significant product write-offs in the quarter," commented RiceBran's CFO and COO Todd Mitchell. "This problem persisted longer than expected, but after a painful reset we believe it is finally behind us. New customer wins for our core-SRB business and a return to normal production of SRB derivatives should result in continued strong growth and a return to gross profits in the second half of the year, reducing losses and creating optimism as we look to the future."
Conference Call Information
RiceBran Technologies will host a conference call today, Thursday, August 11, at 4:30 p.m. Eastern Time to discuss these results. The call information is as follows:
Following the conclusion of the live call, a replay of the webcast will be available on the Investor Relations section of the Company's website for at least 90 days. A telephonic replay of the conference call will also be available from 7 p.m. EST on August 11, 2022 until 11:59 p.m. EST on August 25, 2022 by dialing 877-481-4010 (United States) or 919-882-2331 (international) and using the passcode 46275.
About RiceBran Technologies
RiceBran Technologies is a specialty ingredient company focused on the development, production, and marketing of products derived from traditional and ancient small grains. Notably, we are a global leader in the production and marketing of stabilized rice bran (SRB), and high value-added derivative products derived from SRB, as well as a processor of rice, rice co-products, and barley and oat products. We create and produce products utilizing proprietary processes to deliver improved nutrition, ease of use, and extended shelf-life, while addressing consumer demand for all natural, non-GMO and organic 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, 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's expectations regarding its future financial results, sales growth, Adjusted EBITDA (non-GAAP) 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 operations are disrupted by the COVID-19 pandemic and timing of profitable operations. 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" "Net Cash" and "Net Debt" as supplemental measures 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 adjusted EBITDA).
The tables below contain a reconciliation of net loss (GAAP) and adjusted EBITDA (non-GAAP) for the three and six months ended June 30, 2022 and June 30, 2021, and for Net Cash (non-GAAP) and Net Debt (non-GAAP) for the periods ended June 30, 2022 and December 31, 2021. We do not provide a reconciliation of forward-looking net loss (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 loss that are excluded from actual net loss in the table below.
Investor Contact
Rob Fink
FNK IR
ribt@fnkir.com
646.809.4048
RiceBran Technologies
Consolidated Income Statement (Unaudited) (GAAP)
(in $000, except per share amounts)
| 3 Months Ended | 6 Months Ended | |||||||||||||||||||||||
| 6/30/22 | 6/30/21 | % Chg. | 6/30/22 | 6/30/21 | % Chg. | |||||||||||||||||||
Revenue | $ | 10,190 | $ | 7,574 | 35% | $ | 20,749 | $ | 16,179 | 28% | ||||||||||||||
Cost of Goods Sold | (10,667 | ) | (7,421 | ) | 44% | (20,724 | ) | (15,354 | ) | 35% | ||||||||||||||
Gross Profit (Loss) | (477 | ) | 153 | NM | 25 | 825 | (97%) | |||||||||||||||||
Gross Margin | (5%) | 2% | 0% | 5% | ||||||||||||||||||||
Selling, General & Admin. | (1,708 | ) | (1,933 | ) | (12%) | (3,400 | ) | (3,674 | ) | (7%) | ||||||||||||||
Loss (Gain) on PP&E | 147 | 1 | NM | 147 | (6 | ) | NM | |||||||||||||||||
Operating Loss | $ | (2,038 | ) | $ | (1,779 | ) | 15% | $ | (3,228 | ) | $ | (2,855 | ) | 13% | ||||||||||
Interest Expense | (117 | ) | (120 | ) | (3%) | (242 | ) | (231 | ) | 5% | ||||||||||||||
Gain on Extinguishment of PPP loan | - | - | - | - | 1,792 | - | ||||||||||||||||||
Change in FV of Derivative Warrant Liability | (417 | ) | - | - | (588 | ) | - | - | ||||||||||||||||
Other Expense | (37 | ) | (24 | ) | 54% | (67 | ) | (37 | ) | 81% | ||||||||||||||
Loss Before Income Taxes | (2,609 | ) | (1,923 | ) | 36% | (4,125 | ) | (1,331 | ) | 210% | ||||||||||||||
Income Taxes | (12 | ) | - | - | (12 | ) | (1 | ) | NM | |||||||||||||||
Net Loss | $ | (2,621 | ) | $ | (1,923 | ) | 36% | $ | (4,137 | ) | $ | (1,332 | ) | 211% | ||||||||||
Basic & Diluted Loss per Share: | $ | (0.05 | ) | $ | (0.04 | ) | 25% | $ | (0.08 | ) | $ | (0.03 | ) | 167% | ||||||||||
Weighted Avg. Shares Outstanding (Basic & Diluted): | 52,862 | 45,864 | 15% | 52,697 | 45,750 | 15% | ||||||||||||||||||
RiceBran Technologies
Consolidated Balance Sheets (Unaudited)
(in $000)
| Period Ending | ||||||||||||
| 6/30/22 | 12/31/21 | % Chg. | ||||||||||
Assets | ||||||||||||
Cash and Cash Equivalents | $ | 5,124 | $ | 5,825 | (12 | %) | ||||||
Accounts Receivable, net | 4,038 | 4,136 | (2 | %) | ||||||||
Inventories | 2,312 | 2,444 | (5 | %) | ||||||||
Other Current Assets | 1,227 | 810 | 51 | % | ||||||||
Total Current Assets | $ | 12,701 | $ | 13,215 | (4 | %) | ||||||
PP&E, Net | 14,815 | 15,444 | (4 | %) | ||||||||
Operating Lease right-of-use assets | 1,956 | 2,127 | (8 | %) | ||||||||
Goodwill & Intangibles | 446 | 527 | (15 | %) | ||||||||
Total Assets | $ | 29,918 | $ | 31,313 | (4 | %) | ||||||
Liabilities and Shareholders' Equity | ||||||||||||
Accounts Payable | $ | 1,368 | $ | 826 | 66 | % | ||||||
Commodities Payable | 1,712 | 1,702 | 1 | % | ||||||||
Accruals | 1,480 | 1,470 | 1 | % | ||||||||
Leases, Current | 493 | 468 | 5 | % | ||||||||
Debt, Current | 6,746 | 4,690 | 44 | % | ||||||||
Total Current Liabilities | $ | 11,799 | $ | 9,156 | 29 | % | ||||||
Leases, Not Current | 1,814 | 2,048 | (11 | %) | ||||||||
Debt, Not Current | 708 | 1,356 | (48 | %) | ||||||||
Derivative Warrant Liability | 846 | 258 | 228 | % | ||||||||
Total Liabilities | $ | 15,167 | $ | 12,818 | 18 | % | ||||||
Preferred Stock | 75 | 75 | - | |||||||||
Common Stock | 326,672 | 326,279 | 0 | % | ||||||||
Accumulated Deficit | (311,996 | ) | (307,859 | ) | 1 | % | ||||||
Total Shareholders' Equity | $ | 14,751 | $ | 18,495 | (20 | %) | ||||||
Total Liabilities and Shareholders' Equity | $ | 29,918 | $ | 31,313 | (4 | %) | ||||||
RiceBran Technologies
Consolidated Statement of Cash Flows (Unaudited)
(in $000)
| 3 Months Ended | 6 Months Ended | |||||||||||||||||||||||
| 6/30/22 | 6/30/21 | % Chg. | 6/30/22 | 6/30/21 | % Chg. | |||||||||||||||||||
Cash Flow from Operations | ||||||||||||||||||||||||
Net Loss | $ | (2,621 | ) | $ | (1,923 | ) | 36 | % | $ | (4,137 | ) | $ | (1,332 | ) | 211 | % | ||||||||
Adjs. to reconcile net loss to net cash | ||||||||||||||||||||||||
used in operating activities: | ||||||||||||||||||||||||
Depreciation | 530 | 607 | (13 | %) | 1,046 | 1,219 | (14 | %) | ||||||||||||||||
Amortization | 38 | 49 | (22 | %) | 81 | 102 | (21 | %) | ||||||||||||||||
Share-Based Compensation | 147 | 295 | (50 | %) | 393 | 548 | (28 | %) | ||||||||||||||||
Loss (Gain) on Involuntary Conversion of PP&E | (147 | ) | 6 | NM | (147 | ) | 6 | NM | ||||||||||||||||
Gain on Extinguishment of PPP Debt | - | - | - | - | (1,792 | ) | - | |||||||||||||||||
Change in FV of Derivative Warrant Liability | 417 | - | - | 588 | - | - | ||||||||||||||||||
Allowance for doubtful accounts | 118 | - | - | 118 | - | - | ||||||||||||||||||
Other | 16 | 33 | (52 | %) | (32 | ) | 15 | - | ||||||||||||||||
Changes in operating assets and liabilities: | - | - | ||||||||||||||||||||||
Accounts Receivable | 473 | 1,070 | (56 | %) | (20 | ) | 262 | NM | ||||||||||||||||
Inventories | 171 | (342 | ) | (150 | %) | 132 | 42 | 214 | % | |||||||||||||||
Accounts Payable | (237 | ) | (311 | ) | (24 | %) | 647 | 197 | NM | |||||||||||||||
Commodities Payable | (579 | ) | (512 | ) | 13 | % | 10 | 44 | NM | |||||||||||||||
Other | (254 | ) | (387 | ) | (34 | %) | (417 | ) | (727 | ) | (43 | %) | ||||||||||||
Net Cash Flow from Operations | $ | (1,928 | ) | $ | (1,415 | ) | 36 | % | $ | (1,738 | ) | $ | (1,416 | ) | 23 | % | ||||||||
Cash Flow from Investing | ||||||||||||||||||||||||
Purchases of PP&E | (264 | ) | (215 | ) | 23 | % | (421 | ) | (540 | ) | (22 | %) | ||||||||||||
Proceeds from Insurance on Involuntary Conversion | - | 263 | - | 109 | 263 | (59 | %) | |||||||||||||||||
Net Cash Flow from Investing | $ | (264 | ) | $ | 48 | (650 | %) | $ | (312 | ) | $ | (277 | ) | 13 | % | |||||||||
Cash Flow from Financing | ||||||||||||||||||||||||
Proceeds from Warrants Exercised | - | 171 | - | - | 171 | - | ||||||||||||||||||
Net Change in Debt | 1,448 | (212 | ) | NM | 1,349 | 269 | 401 | % | ||||||||||||||||
Net Cash Flow from Financing | $ | 1,448 | $ | (41 | ) | NM | $ | 1,349 | $ | 440 | 207 | % | ||||||||||||
Net Change in Cash | $ | (744 | ) | $ | (1,408 | ) | (47 | %) | $ | (701 | ) | $ | (1,253 | ) | (44 | %) | ||||||||
BOP Cash Balance | $ | 5,868 | $ | 5,418 | $ | 5,825 | $ | 5,263 | ||||||||||||||||
Net Change in Cash | (744 | ) | (1,408 | ) | (701 | ) | (1,253 | ) | ||||||||||||||||
EOP Cash Balance | $ | 5,124 | $ | 4,010 | $ | 5,124 | $ | 4,010 | ||||||||||||||||
RiceBran Technologies
EBITDA and Adjusted EBITDA Reconciliation (Unaudited) (Non-GAAP)
(in $000)
| 3 Months Ended | 6 Months Ended | |||||||||||||||||||||||
| 6/30/22 | 6/30/21 | % Chg. | 6/30/22 | 6/30/21 | % Chg. | |||||||||||||||||||
Net Loss | $ | (2,621 | ) | $ | (1,923 | ) | 36 | % | $ | (4,137 | ) | $ | (1,332 | ) | 211 | % | ||||||||
Interest Expense | 117 | 120 | (3 | %) | 242 | 231 | 5 | % | ||||||||||||||||
Income Taxes | 12 | - | - | 12 | 1 | NM | ||||||||||||||||||
Depreciation and Amortization | 568 | 656 | (13 | %) | 1,127 | 1,321 | (15 | %) | ||||||||||||||||
EBITDA | $ | (1,924 | ) | $ | (1,147 | ) | 68 | % | $ | (2,756 | ) | $ | 221 | NM | ||||||||||
Gain on extinguishment of PPP loan | - | - | - | - | (1,792 | ) | - | |||||||||||||||||
Change in FV of Derivative Warrant Liability | 417 | - | NM | 588 | - | NM | ||||||||||||||||||
Other Expense | 37 | 24 | 54 | % | 67 | 37 | 81 | % | ||||||||||||||||
Share-Based Compensation | 147 | 295 | (50 | %) | 393 | 548 | (28 | %) | ||||||||||||||||
Adjusted EBITDA | $ | (1,323 | )- | $ | (828 | ) | 60 | % | $ | (1,708 | ) | $ | (986 | ) | 73 | % | ||||||||
RiceBran Technologies
Net Cash and Net Debt Reconciliation (Unaudited) (Non-GAAP)
(in $000)
| Period Ending | ||||||||||||
| 6/30/22 | 12/31/21 | % Chg. | ||||||||||
Cash and Cash Equivalents | $ | 5,124 | $ | 5,825 | (12 | %) | ||||||
Less: Total Debt, Current and Non-current | 7,454 | 6,046 | 23 | % | ||||||||
Net Cash (Debt) | $ | (2,330 | ) | $ | (221 | ) | 954 | % | ||||
| Last Trade: | US$0.00 |
| Daily Volume: | 0 |
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