Tomball / TX. (rbt) RiceBran Technologies, a global leader in the development and manufacture of nutritional and functional ingredients derived from rice and other small and ancient grains for human food, nutraceutical, pet care and equine feed applications, announced its financial results for the first quarter ended March 31, 2023.
First Quarter 2023 Highlights
Peter Bradley, Executive Chairman of RiceBran Technologies, commented, «In the first quarter of 2023, the Board made substantial progress on its ongoing strategic review of alternatives with the goal of creating improved value for shareholders. There is active interest in the assets of the Company and a variety of potential outcomes are being evaluated.»
«Operationally, both of the Company’s mills are performing well and benefiting from robust demand for domestically sourced staple foods,» Mr. Bradley added. «MGI capacity expansion enhancements were complete late in the quarter, providing the opportunity for further growth moving forward. The operating partnership with Gander Foods at Golden Ridge continues to deliver performance improvement. Gains at both mills though, were offset by continuing declines in the SRB derivatives business. The operational challenges faced in the first year of 2022, while now rectified, have continued to limit our ability to maintain market share. This, coupled with increased competition following a new market entrant, resulted in declining revenues.»
First Quarter 2023 Financial and Operational Overview
- Revenue: Total revenue was USD 9.3 million in 1Q23, down 12 percent from 1Q22 primarily as a result of the decline in Value-add SRB derivatives sales as noted above. While Golden Ridge revenue increased USD 0.4 million from 1Q22, it was down USD 1.6 million from 4Q22 due to a quality issue with a rice supplier for which we were subsequently credited. For MGI, 1Q23 revenue was down USD 0.6 million from 1Q22 due to the final completion and integration of its capital expansion project which is now fully online.
- Gross Loss: Gross loss was USD 0.3 million in 1Q23, down from gross profit of USD 0.5 million in 1Q22 mainly due to the revenue decrease in our Value-add SRB derivative business as noted above.
- Operating Loss, Net Loss and EPS: SG+A was flat year-over-year at USD 1.7 million. Operating losses totaled USD 2.0 million in 1Q23, a USD 0.8 million increase from 1Q22, and net losses were USD 2.0 million, or USD 0.31 per share, versus USD 1.5 million, or USD 0.29 per share, a year ago, all due to the increase in gross loss noted above.
- Adjusted Ebitda (non-GAAP): Adjusted Ebitda losses (non-GAAP) were USD 1.2 million in 1Q23, up from adjusted Ebitda losses (non-GAAP) of USD 0.3m in 1Q22 all due to the increased gross loss noted above.
- Balance Sheet: Total cash was USD 3.4 million at the end of 1Q23 down from USD 3.9 million at the end of 4Q22 due to the net cash flow from operations and capital expenditures.