RiceBran Technologies Reports Q2-2023 Results

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 second quarter ended June 30, 2023.

Eric Tompkins, Executive Chairman of RiceBran, commented, «The divestiture of our stabilized rice bran (SRB) business during the second quarter was the first step in a process aimed to reduce costs and curb losses, creating more optionality to explore strategic alternatives and better position the Company to realize the value of its remaining assets.»

«Operationally, RiceBran delivered positive gross profit in 2Q23 from continuing operations, reversing prior quarters of gross losses, due to improved efficiency, recent capacity enhancements and higher volumes,» Tompkins added. «Moving forward we are focused on further rationalizing our costs while exploring any and all alternatives to create value. With an ongoing strategic process in place and the Company’s Board of Director actively evaluating a variety of potential outcomes, we have opted to forgo a quarterly conference call until a time when we are in a better position to share more meaningful disclosures on our strategic progress.»

Second Quarter 2023 Financial and Operational Overview

  • Revenue: Total revenue from continuing operations was USD 6.3 million in 2Q23, down 4.7 percent from 2Q22 as lower MGI Grain Inc, (“MGI”) milling revenues were offset by an increase in Golden Ridge Rice Mills milling revenues.
  • Gross Profit: Gross profit from continuing operations for 2Q23 was USD 24,000 compared to a gross loss of USD 0.4 million in the second quarter of 2022, reflecting higher gross profit at Golden Ridge related to increased volume and at MGI due to the elimination of certain operational inefficiencies.
  • SG+A and Operating Loss: SG+A from continuing operations increased USD 0.4 million year-over-year due to increased legal costs as the Board continues to explore strategic alternatives. Loss from continuing operations before other income (expense) was USD 1.6 million in 2Q23, consistent with 2Q22, because the impact of improved gross margins was offset by increased legal expenses.
  • Loss from Continuing Operations and Loss from Discontinued Operations: The Company reported a loss from continuing operations of USD 1.8 million in 2Q23 compared to USD 2.2 million in 2Q22. RiceBran also reported a loss from discontinued operations of USD 8.5 million in 2Q23 compared to USD 447,000 in 2Q22. The loss from discontinued operations reflects the sale of the SRB business, including a loss on the sale of USD 8.6 million.
  • Net Loss and EPS: Inclusive of the loss from discontinued operations, net loss was USD 10.3 million in 2Q23 compared to USD 2.6 million in 2Q22. Loss per share from continuing operations was USD (0.27) in 2Q23 compared to USD (0.41) in 2Q22. Loss per share from discontinued operations was USD (1.27) in 2Q23 compared to USD (0.09) in 2Q22.

Balance Sheet: Total cash was USD 0.3 million at the end of 2Q23 down from USD 3.9 million at the end of 4Q22, after repayments of USD 3.0 million on the Company’s factoring, line of credit and long-term debt and finance lease liabilities. Our current liquidity, consisting of cash and availability from our factoring facility, is USD 0.6 million.

In our continuing operations, during the first half of 2023, we used USD 1.3 million of cash to fund operating activities and USD 0.3 million for capital expenditures. This was offset by the USD 1.0 million of cash provided by the SRB business’ operations and its June 23,2023 disposition.