NutraCea Gross Profit Increases 25.9% to $6.7 Million and Gross Profit Margin Improves for First Nine Months of 2011
(firmenpresse) - SCOTTSDALE, AZ -- (Marketwire) -- 11/15/11 -- 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 third quarter and nine month period ended September 30, 2011.
W. John Short, Chief Executive Officer of NutraCea, stated, "Our financial results for the first nine months of 2011 showed continued improvement over the same period in 2010. Consolidated revenues increased 13.4%, driven by a 32.4% increase from our Bio-Refining unit, gross profit increased by 25.9%, consolidated gross profit margin improved to 25.6% and consolidated loss from operations improved by $4.4 million. We remain focused on improving cash flow and moving toward profitability in all segments of our business.
"Our operation in Brazil, through our Irgovel facility, continues to perform well. During the third quarter our partners at Alothon exercised their rights to increase their ownership interest in Nutra SA, the holding company for Irgovel, from 45% to 49%. Capital expansion and improvement projects at Irgovel remain on schedule and within budget. In the third quarter, we completed expansion of our distilled fatty acids plant during this quarter and have seen a better than planned 50% increase in both production and high value sales. The lecithin project is expected to be completed in January with initial sales of another high value product -- rice lecithin -- starting in the first quarter of 2012. The capacity expansion of our extractor and the other technology projects, including a new deodorizer are expected to be completed on time and within budget in the second quarter of 2012.
"Our SRB operations continue to show significant growth both domestically and internationally in human ingredient sales. However, SRB gross profit was negatively impacted by an unforeseen spike in raw bran prices that was exacerbated by rising global grain prices, lower forecast rice plantings and production in the mid-south, and the drought in Texas. We will be responding to this cost increase with necessary price adjustments in the fourth quarter."
Signed a co-branded sales and marketing agreement with BENEO-Remy, a world leader in functional food ingredients. NutraCea will produce stabilized rice bran (SRB) for exclusive distribution by BENEO-Remy in over 40 countries in Western Europe, the Middle East and Africa (EMEA) as well as Russia, India, Australia and New Zealand;
Entered into a Joint Research and Development Agreement with DSM Innovation Center. NutraCea and DSM will share existing patented and proprietary intellectual property and know-how to investigate extraction and modification of high quality vegetable proteins from rice bran;
Consolidated revenues increased 13.4% to $26.2 million for the nine months ended September 30, 2011;
Bio-Refining revenues increased 32.4% to $18.3 million, or 69.8% of total revenues, for the nine months ended September 30, 2011; and,
Gross profit increased 25.9% to $6.7 million.
Mr. Short continued, "Development of rice protein continues under the JDA signed with DSM in August and we are encouraged by the results produced in the DSM laboratories. Together with our colleagues at DSM, we are now turning our attention to development of an initial 'fast-to-market' product.
"Our exclusive, co-branded distribution agreement with Beneo-Remy is set to launch at the FI Europe trade show in Paris at the end of November and we expect to see initial orders under that new agreement in the first quarter of 2012."
Consolidated revenues for the nine months ended September 30, 2011 totaled $26.2 million, an increase of $3.1 million, or 13.4%, as compared to $23.1 million for the nine months ended September 30, 2010. Bio-Refining segment revenues increased 32.4%, or $4.5 million, to $18.3 million for the first nine months of 2011 as compared to $13.8 million for the same period in the previous year.
Bio-Refining revenues for the nine months ended September 30, 2011 increased due to the overall favorable pricing environment and increased volume in animal feed and oil products. Animal feed revenues 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 $1.3 million decline in infant cereal product revenues due to the March 2010 sale of the cereal product related assets and a decline in animal nutrition product revenues of $0.4 million on lower volume due to competitive pressures. This decline was offset by a $0.3 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.
Consolidated gross profit for the nine months ended September 30, 2011 totaled $6.7 million, an increase of $1.4 million, or 25.9%, as compared to $5.3 million for the nine months ended September 30, 2010. Gross profit margin improved to 25.6% during the 2011 nine month period as compared to 23.1% for the same period in 2010.
Bio-Refining gross profit margin improved to 21.6% during the first nine months of 2011 as compared to 11.7% for the same period in 2010. Cost of goods sold in this segment increased 17.6%, while revenues increased 32.4%. Plant efficiencies associated with a shift in sales mix from fully refined oil to crude oil and higher plant production throughput driven by volume contributed to the margin expansion.
Consolidated operating expenses decreased $3.1 million totaling $12.3 million for the first nine months of 2011 as compared to $15.4 million during the same period in 2010. These results yielded an improved loss from operations of $5.6 million for the first nine months of 2011 as compared to $10.0 million for the same period in 2010.
Net loss attributable to NutraCea shareholders for the period ended September 30, 2011 was $5.6 million as compared to a net loss of $10.9 million for the same period in 2010.
Consolidated revenues for the three months ended September 30, 2011 totaled $8.6 million, an increase of 2.2%, as compared to $8.4 million for the three months ended September 30, 2010. Bio-refining segment revenues increased 7.4% to $6.1 million as compared to $5.6 million for the same period of the prior year.
Consolidated gross profit for the three months ended September 30, 2011 totaled $1.9 million as compared to $2.1 million for the three months ended September 30, 2010. Gross profit margin decreased to 22.4% during the 2011 three months as compared to 25.4% for the same period in 2010.
Bio-Refining gross profit percentage increased to 19.5% for the third quarter of 2011 as compared to 15.5% for the same period in 2010. Bio-Refining segment cost of goods sold increased 2.3%, while revenues increased 7.4%. SRB gross profit percentage was negatively impacted by an unforeseen spike in raw bran prices as mentioned above.
Consolidated operating expenses totaled $4.3 million for the third quarter of 2011 as compared to $5.1 million during the same period in 2010, a decrease of $0.9 million. These results yielded an improved loss from operations to $2.4 million for the third quarter of 2011 as compared to $3.0 million for the same period in 2010.
Net loss attributable to NutraCea shareholders for the third quarter ending September 30, 2011 totaled $1.5 million as compared to a net loss of $3.1 million for the same period in 2010.
Cash and cash equivalents for the period ended September 30, 2011 totaled $0.2 million. Total current assets and total assets were $13.0 million and $52.0 million respectively. Total current liabilities and total liabilities were $14.0 million and $23.6 million respectively. Total equity was $17.2 million as of September 30, 2011.
The Bio-Refining segment generated cash from operations of $0.4 million for the first nine months of 2011. The Corporate and SRB segments continue to use cash operationally. During the first nine months of the year and the quarter, the Corporate and SRB segments used $4.8 million and $1.3 million, respectively, to pay prepetition liabilities which were incurred in 2009 and earlier.
Date: Tuesday, November 15, 2011
Time: 4:15 p.m. Eastern
Dial-In: (480) 629-9762
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It is recommended that participants dial in approximately 10 minutes prior to the start of the 4:15 p.m. Eastern call. There will also be a simultaneous live webcast of the conference call which can be accessed through the following audio feed link and archived recording of the conference call available under the Investor Relations section of the company website at or by clicking on the following link, .
This release contains forward-looking statements, including statements about NutraCea's expectations regarding cash flow, profitability, price adjustments, orders for new products 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.
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 . More information can be found in the Company's filings with the SEC and by visiting our website at .
Alliance Advisors, LLC
Alan Sheinwald
President & Founder
(914) 669-0222
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Datum: 15.11.2011 - 13:00 Uhr
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