EL DORADO HILLS, Calif., March 31, 2006 /PRNewswire-FirstCall via COMTEX/ -- NutraCea (NTRZ) , a world leader in stabilized rice bran technology, announced today that its revenues for the fourth quarter and full year ended December 31, 2005 reached record levels.
Gross revenues for the fourth quarter of 2005 were $4,504,000 compared to gross revenues of $561,000 for the fourth quarter of 2004, an increase of over 700%. The improved revenues and financial performance on a quarterly comparative basis have primarily resulted from the merger with RiceX and the successful launch of its products into the infomercial market segment during quarter ended December 31, 2005. NutraCea had a net loss of $153,000 for the fourth quarter of 2005, compared to a net loss of $2,277,000 for the same period in 2004. In addition, NutraCea reported positive earnings before interest, taxes, depreciation and amortization (EBITDA)* of $379,000 in the fourth quarter of 2005 compared to a negative EBITDA of $2,236,000 in the fourth quarter of 2004, an improvement of $2,615,000. The net loss for the fourth quarter of 2005 includes charges associated with the merger totaling in excess of $740,000.
Revenues for the full year 2005 rose 355% to $5,564,000 compared to $1,224,000 for the previous year. Full year results include the revenue contribution of $1,100,000 from The RiceX Company for the period post merger closing October 4, 2005 through the end of the year. On a pro forma basis, had the RiceX gross revenues been included for the entire year, the consolidated gross revenues would have been $8,082,000.
NutraCea reported a loss of $3,872,000 or $(0.10) per share in 2005 based on weighted average shares outstanding of 38,615,344 number of shares outstanding, compared to a loss of $23,583,000, or $(1.18) per share in 2004 based on 19,905,965 weighted average shares outstanding.
"The dramatic improvement in revenues and operating results in the fourth quarter 2005 is attributed to the growing acceptance of NutraCea's products made from our proprietary stabilized rice bran technology and successful launch and distribution of several of our proprietary products that are made using NutraCea's exclusive all natural two-stage manufacturing process," said Brad Edson, President and CEO of NutraCea.
Margie Adelman, Senior Vice-President of NutraCea, further commented, "During fiscal 2005 the Company embarked on many initiatives that have now come to fruition. As a result of those efforts, we believe that revenues will continue to grow in 2006, due to the expanding acceptance and sales of our stabilized rice bran products."
"The Company has made great strides in the last several months. We have significantly increased revenues, achieved positive EBITDA and cash flow, taken steps to increase production and geographic diversification, and demonstrated significant cost savings. Our increase in production capability, anticipated to come on line during the second quarter of 2006, should provide a solid platform for continued growth in revenue and with the costs of the merger behind us, the Company is positioned to achieve sustainable profitability for the years ahead," Edson added.
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, including statements regarding our production capability, revenue growth and profitability. Actual results may differ from those projected due to a number of risks and uncertainties, including, but not limited to the 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.