| Financial Reporting 8-07 |
| 08/13/2007 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NutraCea Announces Record Second Quarter and Six Months Financial ResultsPHOENIX, Aug. 14, 2007/PRNewswire-FirstCall/ —NutraCea (OTC Bulletin Board: NTRZ, a leader in stabilized rice bran (SRB) nutrient research and technology, announced today its financial results for the second quarter and six months ended June 30, 2007. Total revenues for the second quarter were approximately $13.0 million, an increase of $8.8 million, or 212% from the second quarter fiscal 2006. For the three months ended June 30, 2007, the Company's net profit was $2 million, or $0.01 per diluted share, compared to a net profit of $399,000, or $0.00 per diluted share, in the same period last year. For the six months ended June 30, 2007, the Company's net profit was $1.8 million, or $0.01 per diluted share compared to a net profit of $166,000, or $0.00 per diluted share for the six months ended June 30, 2006. Gross margin from product sales in the second quarter was $4.1 million, or 52%, compared to $1.8 million, or 44%, during the second quarter of last year. Gross margin from product sales for the six months was $5.0 million, or 50%, compared to $3.5 million or 44% during the six months of the previous year. For the six months ended June 30, 2007, consolidated revenues were approximately $15 million, an increase of approximately $7 million, or 89% compared to the comparable six months of the previous year. Chief Executive Officer Mr. Bradley Edson stated, "NutraCea has delivered a solid quarter of sales growth and new initiatives. During the quarter several new products were launched with our stabilized rice bran as a primary ingredient and we expect more product launches from major food companies going forward and to experience progress in all channels of distribution. We have expanded our production capacity and we intend to continue to do so both domestically and internationally. In the past year we have increased our capacity from less that ten thousand tons annually to over 40,000 with expectations of reaching 80,000 tons during first quarter of 2008. The estimated global demand still far exceeds our current production capacity and we will endeavor to meet that demand as quickly as possible." Mr. Leo Gingras, COO of NutraCea noted, "Our expansion in the U.S. continues at an aggressive pace with completion of our Mermentau, LA and Arbuckle, CA plants, completion of our expansion at Dillon, MT and the acquisition of assets in Freeport, TX. Construction of our Lake Charles, LA, facility, although delayed by weather, should be completed in the first quarter of 2008. We are particularly pleased that our international expansion plans have taken a large step forward with the formation of our joint venture in Southeast Asia, a region that produces more than ten times as much rice bran as the U.S. and E.U combined. We are also moving ahead on our first European facility and look forward to servicing our customers in the E.U. with local production in 2008. Edson concluded, "We see diverse markets for stabilized rice bran and have taken appropriate steps to increase demand, develop marketing channels and increase production capacity. We have a proprietary product which has unique nutritional benefits, and, to date, we are the only company that can lay claim to the process that can stabilize rice bran with a shelf life of over one year without diminishing its superior nutrient profile. The balance sheet continues to remain strong with $51.5 million in cash and cash equivalents and no debt. We look forward to successfully capitalizing on the opportunities that lay ahead." NutraCea will be hosting a conference call on Wednesday, August 15, 2007 at 11:30 AM EDT with the investment community, featuring Brad Edson, Chief Executive Officer and President of NutraCea. Interested parties may participate in the call by dialing 877-407-8037; international callers dial 201-689-8037. In addition, the conference call will be available via a webcast that can be accessed at: http://www.vcall.com/IC/CEPage.asp?ID=119950 and will be archived for 30 days.
NutraCea and Subsidiaries
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6 Months Ended |
6 Months |
3 Months Ended |
3 Months Ended |
Revenues: |
|
|
|
|
Net product Sales |
$9,983,000 |
$7,932,000 |
$7,996,000 |
$ 4,159,000 |
Royalty and licensing fees |
5,010,000 |
16,000 |
5,000,000 |
7,000 |
Total revenue |
14,993,000 |
7,948,000 |
12,996,000 |
4,166,000 |
|
|
|
|
|
Cost of goods sold |
4,976,000 |
4,433,000 |
3,863,000 |
2,333,000 |
Gross margin |
10,017,000 |
3,515,000 |
9,133,000 |
1,833,000 |
Expenses: |
|
|
|
|
Research and development expenses |
291,000 |
198,000 |
170,000 |
94,000 |
Selling, general and administrative expenses |
7,970,000 |
2,852,000 |
5,657,000 |
1,348,000 |
Professional fees |
1,995,000 |
434,000 |
1,536,000 |
101,000 |
Total operating expenses |
10,256,000 |
3,484,000 |
7,363,000 |
1,543,000 |
|
|
|
|
|
Income (loss) from operations |
(239,000) |
31,000 |
1,770,000 |
290,000 |
Other income (expense) |
|
|
|
|
Interest income (net) |
1,388,000 |
135,000 |
876,000 |
109,000 |
Gain on settlement |
1,250,000 |
- |
- |
- |
Loss on retirement of assets |
(309,000) |
- |
(309,000) |
- |
Loss on equity investment |
(250,000) |
- |
(250,000) |
- |
Total income before income tax |
1,840,000 |
166,000 |
2,087,000 |
109,000 |
Income tax expense |
(85,000) |
- |
(85,000) |
- |
Net income |
$1,755,000 |
$166,000 |
$2,002,000 |
$399,000 |
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|
|
|
|
Basic and diluted earnings per share: |
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|
|
|
Basic income per share: |
$0.01 |
$0.00 |
$0.01 |
$0.00 |
Fully diluted income per share |
$0.01 |
$0.00 |
$0.01 |
$0.00 |
Weighted average basic number of shares outstanding |
118,952,000 |
68,808,000 |
136,257,000 |
71,729,000 |
Weighted average diluted number of shares outstanding |
148,954,000 |
119,309,000 |
167,259,000 |
123,293,000 |
NutraCea and Subsidiaries
Consolidated Condensed Balance Sheets (Unaudited)
|
June 30, 2007 |
Dec. 31, 2006 |
Assets |
|
|
Current assets: |
|
|
Cash and cash equivalents |
$ 51,500,000 |
$14,867,000 |
Restricted cash |
545,000 |
- |
Marketable securities |
459,000 |
368,000 |
Trade accounts receivable, net of allowance for doubtful accounts of $1,075,000 and $20,000, respectively |
8,075,000 |
7,093,000 |
Inventories |
801,000 |
796,000 |
Notes receivable, net of discount, |
|
|
current portion |
4,274,000 |
1,694,000 |
Deposits and other current assets |
1,767,000 |
1,383,000 |
Total current assets |
67,421,000 |
26,201,000 |
|
|
|
Notes receivable, net of current portion |
5,216,000 |
682,000 |
Property and equipment, net |
14,673,000 |
8,961,000 |
Investment in joint venture |
1,250,000 |
- |
Other intangible assets, net |
5,616,000 |
5,097,000 |
Goodwill |
39,372,000 |
32,314,000 |
Other non-current assets |
12,000 |
- |
Total assets |
$133,560,000 |
$73,255,000 |
|
|
|
Liabilities And Shareholders' Equity |
|
|
Current liabilities: |
|
|
Accounts payable and accrued liabilities |
$4,866,000 |
$2,778,000 |
Accrual for contribution to related party joint venture |
1,500,000 |
|
Deferred revenue |
29,000 |
103,000 |
Total current liabilities |
6,395,000 |
2,881,000 |
|
|
|
Commitments and contingencies |
|
|
|
|
|
Convertible, series B preferred stock, no par value, $1,000 stated value, 20,000,000 shares authorized, 0 and 470 shares issued and outstanding |
- |
439,000 |
Convertible, series C preferred stock, no par value, $1,000 stated value, 25,000 shares authorized, 2 and 5,468 shares issued and outstanding |
2,000 |
5,051,000 |
|
|
|
Shareholders' equity: |
174,544,000 |
114,111,000 |
Accumulated deficit |
(47,550,000) |
(49,305,000) |
Accumulated other comprehensive income, unrealized gain on marketable securities |
169,000 |
78,000 |
Total shareholders' equity |
127,163,000 |
64,884,000 |
|
|
|
Total liabilities and shareholders' equity |
$133,560,000 |
$73,255,000 |
About NutraCea
NutraCea is a leader in stabilized rice bran nutrient research and dietary supplement development. Through its wholly owned subsidiary, RiceX, the Company manufactures and distributes products and food ingredients made from rice bran through its proprietary technology and processes. NutraCea has developed intellectual properties to create a range of proprietary product formulations, delivery systems and whole food nutrition products. The Company’s proprietary technology enables the creation of food and nutrition products from rice bran, normally an underutilized by-product of standard rice processing. In addition to its whole foods products, NutraCea develops families of health-promoting "nutraceuticals," including natural arthritis relief and cholesterol-lowering products. More information can be found in the Company's filings with the SEC and at its Web site http://www.NutraCea.com.
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