NutraCea reports 29% revenue increase in Q2

NutraCea reports 29% revenue increase in Q2

NutraCea announced its financial results for the second quarter and six month period ended June 30, 2011 with consolidated Revenues increased 28.6% to $9.6 million.

 

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 second quarter and six month period ended June 30, 2011.

Financial Highlights for the Second Quarter Ended June 30, 2011

  • Consolidated Revenues increased 28.6% to $9.6 million;
  • Bio-Refining revenues increased 62.3%;
  • SRB segment revenues increased 13.1% after excluding 2010 revenues from our discontinued infant cereal product line;
  • Gross profit increased 75.5% to $2.6 million; gross profit percentage improved to 26.8% versus 19.6% a year ago;
  • Operating expenses decreased by 12.2%;
  • Loss from operations improved by 46.9% and;
  • Net loss attributable to NutraCea shareholders was $21,000.

W. John Short, Chief Executive Officer of NutraCea, stated, "During the first half of 2011 we continued our emphasis on increasing profitable sales and improving both gross profit dollars and gross profit margin while maintaining our focus on reducing operating expenses and driving the business toward positive cash flow and profitability in all business segments.

"Our investments in Bio-Refining are starting to pay off handsomely and we expect continued improvement at Irgovel as the current expansion projects come on line between now and June 2012. Because Irgovel exceeded predetermined performance targets defined in the Alothon Membership Interest Purchase Agreement, Alothon accelerated their purchase of membership units, bringing an additional $1 million in cash into NutraCea.

"Our decision in early 2010 to exit the low margin infant cereal business has also paid off. Sales of rice bran for human ingredient applications and animal feed have increased, though at a slower pace than Bio-Refining and not as fast as planned, and margins in the SRB segment continue to improve.

"We are pleased that our Bio-Refining segment continues to generate cash, that revenues are growing in both the Bio-Refining and the remaining SRB segment product lines, and that the cash burn in the Corporate segment has been reduced substantially. Nevertheless, we must continue to increase profitable revenues in our SRB business segment and reduce costs in all areas of the business in order to meet cash needs in the Corporate and SRB segments. We have recently taken additional steps to conserve cash, including reductions in cash payments to our senior management team and our Board, and we continue to pursue an equity and/or debt financing transaction.

"I am encouraged by our continuing progress, especially considering the difficult economic environment and the challenging financial markets. I want to thank our management and staff, as well as our board of directors, for their continuing efforts aimed at driving our Company to overall profitability."

Financial Results for the Second Quarter Ended June 30, 2011
Consolidated revenues for the three months ended June 30, 2011 totaled $9.6 million, an increase of $2.1 million, or 28.6%, as compared to $7.5 million for the three months ended June 30, 2010. Bio-Refining segment revenues increased 62.3% or $2.6 million to $6.8 million for the second quarter of 2011 as compared to $4.2 million for the same period in the previous year.

2011 Second Quarter Revenue Breakdown By Business Segment (USD in thousands)

Three months ended June 30,

 

2011

 

2010

 

CHANGE

Bio-Refining

 

$6.8 million

 

$4.2 million

 

+62.3%

% of Revenues

 

70.6%

 

56.0%

   

SRB Segment

 

$2.8 million

 

$3.3 million

 

-14.3%

% of Revenues

 

29.4%

 

44.0%

   

Total Revenues

 

$9.6 million

 

$7.5 million

 

+28.6%

During the quarter, Bio-Refining revenues increased due to the overall favorable pricing environment and increased volume in animal feed and oil products. Animal feed revenue 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 $0.8 million decline in infant cereal product revenue due to the March 2010 sale of the cereal product related assets. This decline was offset by a $0.2 million increase in animal nutrition product revenue and a $0.2 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.

2011 Second Quarter Gross Profit Breakdown By Business Segment (USD in thousands)

Three months ended June 30,

 

2011

 

2010

 

CHANGE

Bio-Refining

 

$1.5 million

 

$0.2 million

 

+556%

% of Revenues

 

21.8%

 

5.4%

 

+16.4%

SRB Segment

 

$1.1 million

 

$1.2 million

 

-12%

% of Revenues

 

38.7%

 

37.7%

 

+1%

Total Gross Profit

 

$2.6 million

 

$1.5 million

 

+75.5%

% of Revenues

 

26.8%

 

19.6%

 

+7.2%

Consolidated gross profit for the three months ended June 30, 2011 totaled $2.6 million, an increase of $1.1 million, or 75.5%, as compared to $1.5 million for the three months ended June 30, 2010. Gross profit margin improved to 26.8% during the 2011 second quarter as compared to 19.6% for the same period in 2010.

Bio-Refining gross profit percentage improved to 21.8% during the second quarter of 2011 as compared to 5.4% for the same period in 2010. Cost of goods sold in this segment increased by $1.4 million, or 34.1%, while revenues increased 62.3%. Plant efficiencies associated with a shift in sales mix and higher plant production throughput driven by volume contributed to the margin expansion.

Consolidated operating expenses totaled $4.6 million for the second quarter of 2011 as compared to $5.2 million during the same period in 2010. These results yielded an improved loss from operations to $2.0 million for the second quarter of 2011 as compared to $3.7 million for the same period in 2010.

For the second quarter of 2011, total other income was $2.0 million as compared to total other expense of $0.7 million. Warrant liability income for the quarter ended June 30, 2011 was $2.4 million compared to warrant liability expense of $0.5 million for the quarter ended June 30, 2010.

Net loss attributable to NutraCea shareholders for the period ended June 30, 2011 was $21,000 or $0.00 per basic and diluted share based on 198 million shares outstanding for the period ended June 30, 2011 as compared to a net loss of $4.5 million or $0.02 per basic and diluted share based on 193 million shares outstanding for the same period in 2010.

Financial Highlights for the Six Months Ended June 30, 2011

  • Consolidated revenues increased 19.8% to $17.6 million
  • Gross profit increased 49.8% to $4.8 million; gross profit percentage improved to 27.2% versus 21.8% a year ago
  • Operating expenses decreased by 21.4%
  • Loss from operations improved by 53.8%
  • Net loss attributable to NutraCea shareholders improved by 47.7%

Financial Results for the Six Months Ended June 30, 2011
Consolidated revenues for the six months ended June 30, 2011 totaled $17.6 million, an increase of $2.9 million, or 19.8%, as compared to $14.7 million for the six months ended June 30, 2010. Bio-Refining segment revenues increased 49.7% or $4.1 million to $12.3 million for the first six months of 2011 as compared to $8.2 million for the same period of the prior year.

2011 Six Month Revenue Breakdown By Business Segment (USD in thousands)

Six months ended June 30,

 

2011

 

2010

 

CHANGE

Bio-Refining

 

$12.3 million

 

$8.2 million

 

+49.7%

% of Revenues

 

69.4%

 

55.6%

   

SRB Segment

 

$5.4 million

 

$6.5 million

 

-17.5%

% of Revenues

 

30.6%

 

44.4%

   

Total Revenues

 

$17.6 million

 

$14.7 million

 

+19.8%

2011 Six Month Gross Profit Breakdown By Business Segment (USD in thousands)

Six months ended June 30,

 

2011

 

2010

 

CHANGE

Bio-Refining

 

$2.8 million

 

$0.7 million

 

+271%

% of Revenues

 

22.7%

 

9.1%

 

+13.6%

SRB Segment

 

$2.0 million

 

$2.5 million

 

-17.7%

% of Revenues

 

37.5%

 

37.6%

 

-0.1%

Total Gross Profit

 

$4.8 million

 

$3.2 million

 

+49.8%

% of Revenues

 

27.2%

 

21.8%

 

+5.4%

Consolidated gross profit for the six months ended June 30, 2011 totaled $4.8 million, an increase of 49.8%, or $1.6 million, as compared to $3.2 million for the six months ended June 30, 2010. Gross profit margin improved to 27.2% during the first six months of 2011 as compared to 21.8% for the same period in 2010.

Bio-Refining gross profit percentage increased 13.6% to 22.7% for the 2011 first six months as compared to 9.1% for the 2010 first six months. Bio-Refining segment cost of goods sold increased 27.4%, while revenues increased 49.7%.

Consolidated operating expenses totaled $8.0 million for the first half of 2011 as compared to $10.2 million during the same period in 2010, a decrease of $2.2 million. These results yielded an improved loss from operations to $3.2 million for the 2011 first six months as compared to $7 million for the same period in 2010. For the first half of 2011, total other expenses were $0.9 million as compared to total other expense of $0.6 million.

Net loss attributable to NutraCea shareholders for the six month period ended June 30, 2011 totaled $4.1 million as compared to a net loss of $7.8 million for the six month period ended June 30, 2010.

Conference Call Details
Date: Thursday, August 18, 2011
Time: 1:00 p.m. Eastern
U.S. Dial-In: (877) 941-4774
International Dial-In: (480) 629-9712
Live Webcast: http://viavid.net/dce.aspx?sid=00008B28

It is recommended that participants dial in approximately 10 minutes prior to the start of the 1:00 p.m. Eastern call. A telephonic replay of the conference call may be accessed approximately two hours after the call through September 1, 2011. Please dial 877-870-5176 for U.S. or 858-384-5517 for international callers and entering the access code, 4464294.

About NutraCea

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 http://www.nutraceaonline.com. More information can be found in the Company's filings with the SEC and by visiting our website at http://www.NutraCea.com.

Hide comments

Comments

  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
Publish