EL DORADO HILLS, Calif., Nov 14, 2006 /PRNewswire-FirstCall via COMTEX/ -- NutraCea (NTRZ) , a world leader in stabilized rice bran research and technology, announced today record financial results and a record profit for its third quarter and nine months ending September 30, 2006, marking the third consecutive quarter of record results.
Total revenues for the three months ended September 30, 2006 were $4,946,174, compared to total revenues of $301,726 for the third quarter of 2005, an increase of over 1,639%. The improved revenues and financial performance on a quarterly comparative basis have primarily resulted from the merger with RiceX and the continued strength of the direct-to-consumer marketing of its nutraceutical products through the quarter ended September 30, 2006. Infomercial sales remained strong and the Company continued to experience growth from its expanded product lines and increased demand of its value-added ingredients for the functional food industry and animal markets.
Total revenues for the nine months ended September 30, 2006 were $12,893,900, compared to total revenues of $1,060,271 for the nine months ended September 30, 2005, an increase of over 1,216%. The significant improvement in revenues and financial performance for the nine months ended September 30, 2006 is the result of the 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 and continued growth in sales of nutraceutical products through direct-to-consumer marketing.
NutraCea reported net income of $641,106 or $0.01 per share for the third quarter of 2006 based on weighted average shares outstanding of 77,377,010, compared to a net loss of $(1,035,544), or $(0.03) per share in 2005 based on 38,033,352 weighted average shares outstanding. NutraCea had a net income of $806,971 or $0.01 per share for the nine months ended September 30, 2006 based on weighted average shares outstanding of 71,685,402, compared to a net loss of $(3,711,245), or $(0.10) per share in 2005 based on 36,756,797 weighted average shares outstanding.
Mr. Brad Edson, President and CEO of NutraCea commented, "We are delighted to report our third consecutive record quarter notwithstanding substantial expenditures in the most recent quarter that were necessary to meet strategic plans to realize continuing growth for the year 2007 and beyond. These expenditures included the addition of highly qualified personnel from the domestic and international food category, as well as the implementation of financial oversight processes to achieve and maintain 404 Compliance and other essential general and administrative expenses. In this quarter we accomplished many of our current business goals, including expanding our production capacity and entered into two new licensing agreements for the use of our formulations in specific channels of distribution. We believe there will be additional strategic agreements and licensing opportunities of equal and potentially greater size in the future. In the ensuing quarters, based on initiatives already underway, we anticipate sustainable positive financial results."
Mr. Edson added, "Several of our planned expansions are either completed or in the final phases of completion. By this time next year the Company is planning to have five plants operational, bringing our total capacity to produce stabilized rice bran to over 70,000 tons per year, compared to a production capacity of less than 10,000 tons per year at the beginning of 2006. We feel confident that there is a very substantial global demand for stabilized rice bran and we intend to explore all potential initiatives to further satisfy that demand."
"Having already obtained significant market demand in the United States," Mr. Edson concluded. "We're focusing on opportunities to extend our reach into other parts of the world and duplicate our U.S. success elsewhere. All of our existing or planned production facilities have been completely financed out of funds already raised and from our cash flow. At the end of the third quarter, the Company remains debt free with cash on hand and marketable securities amounting to $13.4 million. In addition, several million dollars have been added to our balance sheet since the end of the 3rd quarter from the exercise of warrants, which will be reflected in our fourth quarter numbers. We are looking forward to aggressively pursuing and executing on many diverse opportunities that exist worldwide. "
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.