Exhibit 99.1
USE OF NON-GAAP FINANCIAL INFORMATION
We utilize "Adjusted EBITDA" as a supplemental measure in our ongoing analysis of short-term and long-term cash requirement and liquidity needs. Adjusted EBITDA does not represent cash flows from operations as defined by generally accepted accounting principles ("GAAP"), is not a measure derived in accordance with GAAP and should not be considered as an alternative to net income (the most comparable GAAP financial measure to EBITDA). Management uses Adjusted EBITDA as an indicator of our current financial performance. By eliminating the impact of all material non-cash charges, as well as items that do not regularly occur, we believe that Adjusted EBITDA provides a more accurate and informative indicator of our cash requirements.
The table below contains a reconciliation of net income (GAAP) and Adjusted EBITDA (Non-GAAP) for the year ended December 31, 2014 and the year ended December 31, 2013. We do not provide a reconciliation of forward-looking net income (GAAP) to Adjusted EBITDA (non-GAAP). Due to the nature of certain reconciling items, it is not possible to predict with any reliability what future outcomes may be with regard to the expense or income that may ultimately be recognized in future periods. Any forward-looking Adjusted EBITDA information that we may provide from time to time excludes the same types of items from projected net income that are excluded from actual net income in the table below:
RiceBran Technologies
Adjusted EBITDA Reconciliation
For the year ended December 31, 2014 (in thousands)
Corp. & USA | Brazil | Consolidated | ||||||||||
Net loss | $ | (16,123 | ) | $ | (10,504 | ) | $ | (26,627 | ) | |||
Interest expense | 7,949 | 2,385 | 10,334 | |||||||||
Interest income | - | (115 | ) | (115 | ) | |||||||
Income tax benefit | (1,304 | ) | - | (1,304 | ) | |||||||
Depreciation & amortization | 3,211 | 3,338 | 6,549 | |||||||||
Unadjusted EBITDA | $ | (6,267 | ) | $ | (4,896 | ) | $ | (11,163 | ) | |||
Add Back Other Items: | ||||||||||||
Change in fair value of derivative liabilities | 1,209 | - | 1,209 | |||||||||
Loss on extinguishment | 906 | - | 906 | |||||||||
Financing expense | 2,072 | - | 2,072 | |||||||||
Foreign currency exchange, net | - | 174 | 174 | |||||||||
Other income/expense | - | 587 | 587 | |||||||||
Share-based compensation | 701 | 28 | 729 | |||||||||
H&N acquisition costs | 250 | - | 250 | |||||||||
Adjusted EBITDA | $ | (1,129 | ) | $ | (4,107 | ) | $ | (5,236 | ) |
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RiceBran Technologies
Adjusted EBITDA Reconciliation
For the year ended December 31, 2013 (in thousands)
Corp. & USA | Brazil | Consolidated | ||||||||||
Net loss | $ | (12,248 | ) | $ | (5,392 | ) | $ | (17,640 | ) | |||
Add Back: | ||||||||||||
Interest expense | 1,950 | 1,984 | 3,934 | |||||||||
Interest income | - | (109 | ) | (109 | ) | |||||||
Income tax benefit | - | (1,439 | ) | (1,439 | ) | |||||||
Depreciation & amortization | 1,419 | 2,629 | 4,048 | |||||||||
Unadjusted EBITDA | $ | (8,879 | ) | $ | (2,327 | ) | $ | (11,206 | ) | |||
Add Back Other Items: | - | - | ||||||||||
Change in fair value of derivative liabilities | 1,029 | - | 1,029 | |||||||||
Loss on extinguishment | 2,891 | - | 2,891 | |||||||||
Financing expense | 564 | - | 564 | |||||||||
Foreign currency exchange, net | - | 440 | 440 | |||||||||
Other income/expense | 41 | 319 | 360 | |||||||||
Stock option expense | 538 | - | 538 | |||||||||
Bonus expenses | 936 | - | 936 | |||||||||
Gain/Loss on fixed assets | (292 | ) | (44 | ) | (336 | ) | ||||||
Impairment losses | 300 | - | 300 | |||||||||
Severance – employee terminations | - | 534 | 534 | |||||||||
Adjusted EBITDA | $ | (2,872 | ) | $ | (1,078 | ) | $ | (3,950 | ) |
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