ACCESS Newswire
04 Aug 2021, 01:49 GMT+10
Turnaround Continues with Year-Over-Year Improvement in All Key Financial Measures
Strong Growth in SRB Derivatives Sales to be Bolstered by New Products and New Distributor
Management Affirms Outlook for Continued Improvement in Operating and Financial Results
TOMBALL, TX / ACCESSWIRE / August 3, 2021 / RiceBran Technologies (NASDAQ:RIBT), a global leader in the development and production of critical nutritional and functional ingredients derived from small and ancient grains for the healthy food, nutraceutical, pet care and animal feed markets, today announced financial results for the three and six months ended June 30, 2021.
* Reconciliation of GAAP to Non-GAAP measures follows.
Second Quarter 2021 Operating Highlights
'A 28% year-over-year increase in revenues and a 70% reduction in adjusted EBITDA losses, underpinned by improvements at every facility, signal the successful turnaround of our operations,' said RiceBran's Executive Chairman Peter Bradley. 'Continued strong demand for our SRB derivatives and the announcement today of our agreement with AIDP, a leading supplier to the supplement and nutraceutical markets, further validates our strategic shift to higher value-add specialty ingredients. With this important new relationship, an increased supply of raw materials, enhanced production capabilities, and the introduction of new products, we remain confident in our ability to generate continued growth as we transition to sustainable profitability.'
Second Quarter 2021 Financial Highlights
'Our turnaround is on track with significant year-over-year improvements in all key financial measures,' RiceBran's CFO Todd Mitchell commented. 'Revenue growth was supported by strong demand for SRB derivatives, and higher sales at both Golden Ridge and MGI despite seasonal pressures, volatility in raw materials costs, and some supply chain disruptions. We reduced adjusted EBITDA losses (non-GAAP) by over 70% from a year ago due to higher revenues, improvements in operation at every facility, and a 16% year-over-year reduction in SG&A. We expect further improvement in profitability in the second half of 2021, and we remain well-positioned to transition to positive adjusted EBITDA (non-GAAP) in the coming quarters.'
Full Year 2021 Outlook and Objectives
'With our new relationship with AIDP, the enhanced focus of our sales team, and beginning of our product expansion, we accomplished what we set out to do in the quarter,' Mr. Bradley added. 'We were pleased with the significant year-over-year improvement in financial results in the second quarter, and initial trends show some signs of acceleration in the third quarter as we move towards new crop. With higher revenues, quarterly adjusted EBITDA losses are expected to improve in the third and fourth quarters from second quarter levels, although reaching our goal of positive adjusted EBITDA before 2021 year-end may prove challenging. However, with expanded distribution, the launch of new products, and a more focus sales effort, we remain confident that we are on the path to sustainable growth and positive adjusted EBITDA.'
Conference Call Information
RiceBran Technologies will host a conference call today, Tuesday, August 3, 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 3, 2021 until 11:59 p.m. EST on August 17, 2021 by dialing 877-481-4010 (United States) or 919-882-2331 (international) and using the passcode 42240.
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 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, 2021 and June 30, 2020, and for Net Cash (non-GAAP) and Net Debt (non-GAAP) for the periods ended June 30, 2021 and December 31, 2020. 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 / Matt Chesler, CFA
FNK IR
[email protected]
646.809.4048 / 646.809.2183
RiceBran Technologies
Consolidated Income Statement (GAAP)
(in $000, except per share amounts)
RiceBran Technologies
EBITDA and Adjusted EBITDA Reconciliation (Unaudited) (Non-GAAP)
(in $000)
RiceBran Technologies
Consolidated Statement of Cash Flows
(in $000)
RiceBran Technologies
Consolidated Balance Sheets
(in $000)
RiceBran Technologies
Net-Cash and Net Debt Reconciliation (Unaudited) (Non-GAAP)|
(in $000)
SOURCE: RiceBran Technologies
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