EL DORADO HILLS, Calif., Aug 15, 2006 /PRNewswire-FirstCall via COMTEX/ -- NutraCea (NTRZ) , a world leader in stabilized rice bran research and technology, announced today record financial results and a positive EBITDA for its second quarter and six months ending June 30, 2006.
Total revenues for the three months ended June 30, 2006 were $4,166,182, compared to total revenues of $299,237 for the second quarter of 2005, an increase of over 1,290%. The improved revenues and financial performance on a quarterly comparative basis have primarily resulted from the merger with RiceX and the continued success of the sale of its nutraceutical through direct to consumer marketing during quarter ended December 31, 2005. Approximately 62% of revenues in the quarter were from infomercial sales and 38% from the Company's expanded product lines and increased demand of it value added ingredients for the functional food industry and animal markets.
Total revenues for the six months ended June 30, 2006 were $7,947,726, compared to total revenues of $758,545 for the six months ended June 30, 2005, an increase of over 948%. The significant improvement in improved revenues and financial performance on a quarterly comparative basis are a culmination of the merger with RiceX, direct marketing of its expanding proprietary patented product line and sales of its core products into the functional food industry and animal markets during the quarter ended December 31, 2005.
NutraCea reported net income of $399,434 or $0.01 per share for the second quarter of 2006 based on weighted average shares outstanding of 71,791,913, compared to a net loss of $(1,800,084), or $(0.05) per share in 2005 based on 36,793,254 weighted average shares outstanding.
NutraCea had a net income of $165,860 or $0.00 per share for the six months ended June 30, 2006 based on weighted average shares outstanding of 68,808,345, compared to a net loss of $(2,664,777), or $(0.07) per share in 2005 based on 36,355,262 weighted average shares outstanding.
NutraCea reported positive earnings before interest, taxes, depreciation and amortization (EBITDA)* of $684,559 in the second quarter of 2006 compared to a negative EBITDA of $1,540,175 in the second quarter of 2005, an improvement of $2,224,734. In addition, EBITDA* for the six month period was a positive $717,452 compared to a negative EBITDA of $2,153,530 in the first six months of 2005, an improvement of $2,870,982.
EBITDA represents net income (loss) before interest, taxes, depreciation
and amortization. EBITDA is not a measurement of financial performance under
accounting principles generally accepted in the United States. The following
table presents EBITDA amounts for the six and three month periods ended June
30, 2006 and 2005. The table also sets forth for these periods a quantitative
reconciliation of the differences between EBITDA and net income (loss), as net
income (loss) is calculated in accordance with generally accepted accounting
Mr. Brad Edson, President and CEO of NutraCea commented, "We are pleased to report the first profitable quarter in the Company's history and we look forward to executing on our domestic and international business models to achieve sales and profitability in both markets. Since the merger we have reported three consecutive quarters of record revenues, demonstrating our success and leadership as the world's dominant supplier of stabilized rice bran and of value-added ingredients.
Mr. Edson added, "Our expansion plans to increase production capacity of our stabilized rice bran are well underway and expected to be materially accretive to our business during the second half of this year. In this regard, we continue to ramp up revenues and fulfill existing agreements as our additional capacity comes on line, which we believe will allow us to capture more opportunities for sales and implementation of our technology around the world as we move forward. Our capital structure remains strong with no debt on the balance sheet and nearly $15 million in cash."
A conference call is scheduled for today at 11:30 a.m. EDT. 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=107849 and will be archived for 7 days.
NutraCea is a world leader in stabilized rice bran technology. Through its wholly owned subsidiary RiceX, the Company manufacturers as well as distributes products and food ingredients made from rice bran through its proprietary technology and processes. The Company has developed intellectual property to create a range of proprietary product formulations, delivery systems and whole food nutrition products. NutraCea's proprietary technology enables the creation of food and nutrition products from rice bran, normally a wasted by-product of standard rice processing. In addition to its whole foods products, NutraCea develops families of health promoting "nutraceuticals," including natural arthritic relief and cholesterol-lowering products. More information can be found in the Company's filings with the SEC and you can visit the NutraCea web site http://www.NutraCea.com .
Forward Looking Statements
This release contains forward-looking statements. Actual results may differ from those projected due to a number of risks and uncertainties, including, but not limited to the possibility that any increased production capacity will be delayed or reduced in whole or in part, that some or all of the pending matters and transactions considered by the Company may not proceed as contemplated, and by all other matters specified in the Company's filings with the Securities and Exchange Commission. These statements are made based upon current expectations that are subject to risk and uncertainty. 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 the Company's filings with the Securities and Exchange Commission, including the company's most recent periodic report.