RiceBran Technologies Reports Third Quarter 2023 Results
- None.
- The total revenue from continuing operations decreased by 27% compared to the same period in 2022, indicating a decline in business performance. The net loss from continuing operations was $1.8 million, or $0.26 per share, in 3Q23, which is a negative financial indicator for shareholders. The total cash decreased to $466,000 at the end of 3Q23 from $3.9 million at the end of 4Q22, showing a significant decrease in cash reserves.
Insights
The recent financial results from RiceBran Technologies indicate a notable decline in revenue by 27% year-over-year, primarily attributed to a decrease in volume from Golden Ridge Rice Mills and lower commodity prices affecting MGI Grain Inc. This contraction, although partially offset by a reduction in gross losses, reflects a challenging operational environment with supply chain issues impacting availability of crops. The company's strategic divestiture of its stabilized rice bran business suggests a reorientation of its business model.
The decrease in SG&A expenses demonstrates a cost containment effort, yet the increase in legal costs due to the exploration of strategic alternatives raises questions about future restructuring costs. The net loss reduction is a positive sign, however, the liquidity position is concerning, with a significant decrease in cash reserves, which could impact the company's ability to fund operations and strategic initiatives.
RiceBran Technologies operates in a niche segment of the food ingredients sector, which is highly sensitive to commodity price fluctuations and supply chain dynamics. The company's focus on nutritional and functional ingredients derived from rice, barley and oats positions it within the health-conscious consumer trend. However, the reported decrease in revenue and the gross losses indicate operational challenges that could affect the company's competitive position.
The strategic review by the board, including the divestiture of a business segment, suggests a shift that could potentially open new avenues for growth or partnerships. However, investors should closely monitor the company's ability to navigate the current financial headwinds, as well as the outcomes of the strategic initiatives which are yet to materialize into tangible results.
The reduction in total cash and repayment of $3.0 million towards debt and finance lease liabilities reflect a deleveraging effort by RiceBran Technologies. While deleveraging is generally positive for the long-term financial health of a company, the current cash position may not adequately support both operations and further debt reduction without additional financing. The company's ability to manage its debt obligations amidst declining revenues will be critical for its financial stability.
Investors should consider the company's creditworthiness and the potential need for refinancing or raising capital, which could dilute current shareholder value. The carryforward tax assets mentioned may provide some future financial benefit, but this depends on the company's ability to return to profitability to utilize these assets effectively.
Board continues to review strategic initiatives and alternatives
TOMBALL, TX / ACCESSWIRE / December 20, 2023 / RiceBran Technologies (OTCMKTS:RIBT) ("RiceBran" or the "Company"), an innovator in the development and manufacture of nutritional and functional ingredients derived from rice, barley and oats, today announced financial results for the third quarter ended September 30, 2023.
Eric Tompkins, Executive Chairman of RiceBran, commented, "The Board of Directors continues to advance a strategic review, with the goal of creating a more sustainable organization that can better capitalize on the benefits of a public listing and the significant carryforward tax assets that have been accumulated. The divestiture of our stabilized rice bran business during the second quarter was the first step in this ongoing process."
Third Quarter 2023 Financial and Operational Overview
- Revenue: Total revenue from continuing operations was
$4.9 million in 3Q23, down27% from 3Q22 due to a$1.2 million decrease related to Golden Ridge Rice Mills ("Golden Ridge") mainly due a lack of availably of end of the season crop leading to lower volumes. The remaining$0.6 million revenue decrease at MGI Grain Inc, ("MGI") was mainly due to lower commodity prices. - Gross Losses: Gross losses from continuing operations for 3Q23 were
$(480,000) compared to a gross loss of$(562,000) in the third quarter of 2022, due to the rationalization of less profitable business due to the commodity supply changes noted above. - SG&A and Operating Loss: SG&A from continuing operations decreased
$186,000 year-over-year due to reductions in overhead expenses, primarily staff, partially offset by increased legal costs as the Company's Board of Directors continues to explore strategic alternatives. Loss from continuing operations before other income (expense) was$1.8 million in 3Q23, an increase of$231,000 , or13% , compared with 3Q22. - Net Loss and EPS: Net loss from continuing operations was
$1.8 million , or$0.26 per share, in 3Q23 compared to$2.0 million , or$0.29 per share, in 3Q22. Net loss (including discontinued operations) was$1.8 million , or$0.26 per share, compared with a net loss of$2.0 million , or$0.38 per share in 3Q22.
Balance Sheet: Total cash was
About RiceBran Technologies
RiceBran Technologies is a specialty ingredient company focused on the development, production and marketing of products derived from traditional and ancient small grains. We create and produce products to deliver improved nutrition and ease of use, while addressing consumer demand for all natural, non-GMO and organic products. The target markets for our products include human food, animal nutrition manufacturers and retailers, as well as specialty food retailers. More information can be found in the Company's filings with the U.S. Securities and Exchange Commission (the "SEC") and by visiting our website at http://www.ricebrantech.com .
Forward-Looking Statements 1
This press release includes statements concerning RiceBran and its future expectations, plans and prospects that constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such "forward-looking statements" include, but are not limited to, statements about RiceBran's intentions, beliefs or current expectations. In some cases, you can identify forward-looking statements by terms such as "may," "will," "should," "would," "expect," "plans," "anticipate," "could," "intends," "target," "projects," "contemplates," "believes," "estimates," "predicts," "potential," or "continue," or the negative of these terms or other similar expressions. The forward-looking statements in this press release are based on current expectations, estimates, forecasts and projections about the industry and markets in which the Company operates and management's beliefs and assumptions. The Company cannot guarantee that it actually will achieve the plans, intentions, expectations or guidance disclosed herein. Such forward-looking statements, and all phases of the Company's operations, involve a number of risks and uncertainties, any one or more of which could cause actual results to differ materially from those described in its forward-looking statements. Assumptions and other information that could cause results to differ from those set forth in the forward-looking information can be found in RiceBran's filings with the SEC, including its most recent annual report on Form 10-K and its quarterly reports on Forms 10-Q. Except as required by law, RiceBran does not undertake to update forward-looking statements to reflect actual results, changes in assumptions or changes in other factors affecting such forward-looking information.
Investor Contact
Rob Fink
FNK IR
ribt@fnkir.com
646.809.4048
RiceBran Technologies
Condensed Consolidated Statements of Operations
(Unaudited) (in thousands, except share and per share amounts)
| 3 Months Ended | 9 Months Ended | |||||||||||||||
| 9/30/23 | 9/30/22 | 9/30/23 | 9/30/22 | |||||||||||||
Revenue | $ | 4,857 | $ | 6,637 | $ | 16,970 | $ | 19,209 | ||||||||
Cost of Goods Sold | (5,337 | ) | (7,199 | ) | (17,484 | ) | $ | (20,192 | ) | |||||||
Gross Profit (Loss) | (480 | ) | (562 | ) | (514 | ) | (983 | ) | ||||||||
Gross Margin | (10 | %) | (8 | %) | (3 | %) | (5 | %) | ||||||||
Selling, General & Admin. | (1,250 | ) | (1,436 | ) | (4,352 | ) | (4,021 | ) | ||||||||
Loss from continuing ops before other income (expense) | $ | (1,730 | ) | $ | (1,998 | ) | $ | (4,866 | ) | $ | (5,004 | ) | ||||
Interest Expense | (124 | ) | (118 | ) | (450 | ) | (334 | ) | ||||||||
Change in FV of Derivative Warrant Liability | 53 | 612 | 14 | 24 | ||||||||||||
Other Income (Expense) | 19 | (39 | ) | 181 | (106 | ) | ||||||||||
Loss From Continuing Ops Before Income Taxes | (1,782 | ) | (1,543 | ) | (5,121 | ) | (5,420 | ) | ||||||||
Income Taxes | - | (8 | ) | (11 | ) | (20 | ) | |||||||||
Loss From Continuing Ops | (1,782 | ) | (1,551 | ) | (5,132 | ) | (5,440 | ) | ||||||||
Loss From Discontinued Ops | - | (491 | ) | (9,009 | ) | (739 | ) | |||||||||
Net Loss | $ | (1,782 | ) | $ | (2,042 | ) | $ | (14,141 | ) | $ | (6,179 | ) | ||||
Basic & Diluted Loss per Share: | ||||||||||||||||
Continuing Ops | $ | (0.26 | ) | $ | (0.29 | ) | $ | (0.77 | ) | $ | (1.03 | ) | ||||
Discontinued Ops | - | $ | (0.09 | ) | $ | (1.34 | ) | $ | (0.14 | ) | ||||||
| $ | (0.26 | ) | $ | (0.38 | ) | $ | (2.11 | ) | $ | (1.17 | ) | |||||
Weighted Avg. Shares Outstanding (Basic & Diluted): | 6,806 | 5,332 | 6,700 | 5,291 | ||||||||||||
RiceBran Technologies
Condensed Consolidated Balance Sheets
(Unaudited) (in thousands, except share amounts)
| Period Ending | ||||||||
| 9/30/23 | 12/31/22 | |||||||
Assets | ||||||||
Cash and Cash Equivalents | $ | 466 | $ | 3,941 | ||||
Accounts Receivable, net | 2,620 | 3,703 | ||||||
Inventories | 514 | 465 | ||||||
Other Current Assets | 515 | 735 | ||||||
Current assets held for sale | - | 2,224 | ||||||
Total Current Assets | $ | 4,115 | $ | 11,068 | ||||
PP&E, Net | 5,937 | 6,020 | ||||||
Operating Lease right-of-use assets | - | 77 | ||||||
Intangibles | 295 | 380 | ||||||
Long-term assets held for sale | - | 9,888 | ||||||
Total Assets | $ | 10,347 | $ | 27,433 | ||||
Liabilities and Shareholders' Equity | ||||||||
Accounts Payable | $ | 1,414 | $ | 1,232 | ||||
Commodities Payable | 2,538 | 1,546 | ||||||
Accruals | 2,573 | 1,584 | ||||||
Leases, Current | 136 | 220 | ||||||
Debt, Current | 3,378 | 6,155 | ||||||
Current liabilities held for sale | - | 540 | ||||||
Total Current Liabilities | $ | 10,039 | $ | 11,277 | ||||
Leases, Not Current | 434 | 320 | ||||||
Debt, Not Current | 603 | 836 | ||||||
Derivative Warrant Liability | 55 | 69 | ||||||
Long-term liabilities held for sale | - | 2,022 | ||||||
Total Liabilities | $ | 11,131 | $ | 14,524 | ||||
Preferred Stock | 75 | 75 | ||||||
Common Stock | 328,999 | 328,551 | ||||||
Accumulated Deficit | (329,858 | ) | (315,717 | ) | ||||
Total Shareholders' Equity (Deficit) | $ | (784 | ) | $ | 12,909 | |||
Total Liabilities and Shareholders' Equity | $ | 10,347 | $ | 27,433 | ||||
SOURCE: RiceBran Technologies
View the original press release on accesswire.com
FAQ
What were RiceBran Technologies' (RIBT) total revenue from continuing operations in 3Q23?
What was the net loss from continuing operations in 3Q23 for RiceBran Technologies (RIBT)?
How did the total cash position change for RiceBran Technologies (RIBT) from the end of 4Q22 to the end of 3Q23?
