RIBT - Earnings call transcript Q1 2018

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Operator

Good day, ladies and gentlemen, and thank you for standing by. Welcome to the RiceBran Technologies First Quarter 2018 Financial Results Conference Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. introduce Mr. to like now our host, I'd Richard Ascendant Partners. Galterio of Mr. Please ahead, go Galterio.

Richard Galterio

us Robert you, Welcome President and financial Financial Ingredient. quarter With listeners. Good of U.S. results President of Officer; are the call. Thank Rystrom, afternoon, Chief first RiceBran to Technologies; operator. Chief Officer Chief Smith, Executive RiceBran Brent Technologies’ conference and today and Goose, Dr. Operating XXXX Michael

Act Robert, remarks of Actual differ Safe I the SEC. Before result want in remind discussed And and additional the today. I over discussion Company questions may turn Harbor that during today. prepared the filings forward-looking XXXX. results Therefore, forward-looking your the from listeners risks risks these the Management under detailed claims we statements uncertainties call, forward-looking a to management’s in more to for in and to may Reform call Company’s in refer the that statements of you subject therefore, may contained results protection to Litigation statements Private Securities the to are with response uncertainties. make

In RiceBran non-GAAP on of to Technologies. of over ahead. measures projections include to this comparable as Smith, obligation market today, to future Dr. call measures CEO X, the reconciliations addition, this webcast information like assumes May financial Company and conditions Relations the I in go these and estimates the please XXXX Investor This the future to and in to www.ricebrantech.com of change. by represented update any including page. available no the call, projections turn GAAP financial provided performance as management Company’s would as at certain Dr., time, financial are President Robert At

Dr. Robert Smith

was you was $X.X to joining million I’d Rich. welcome also revenue to line to internal Thank modeling. and our loss RiceBran first XXXX you, of with million Thank EBITDA quarter adjusted up expectation, us. Technologies’ conference $X.XX call. in quarter our the RiceBran first for everyone Technologies similar like

quarter much sheet year cash shareholders’ with and Our of revenue, to during our certification on offsetting We’ve obtaining RBT. system. helping quarter so of in our certification the multiple focused come in upgrade certification, our busy warrant or will supply, throughout will to projects production exercises sometime the been production are increasing support and the CapEx in facilities the to XXXX. initiated late our bran at Company far fourth and first in balance early quarter, of third areas burn All which full a beginning increase result stages, solid the quarter remained our growing equity. It’s proceeds from SQF slightly in

with to headquarters to complete month move is of better, us the by Houston. the Arkansas of majority end This of much of location also the We mainly provides Woodlands, in to grown the access this bran rice our which available suburb U.S., and a Louisiana. expect corporate the in

growth We to the meaningful are generate in see quarter. second revenue so excited far RBT

to to more next our months. next would as for the processing than we desired the growth However, supplies months in in have constrained be bran difficult few are facility Louisiana will generate few

second Midwest on to We our California. half August of year. adjusted more us in bran to from and to position the cost resume capacity higher limit are plan in have of add growth in for XXXX than But, facilities will Louisiana. July the crop this our of reduced concurrent supplant from bran This cost Delta considerably supply soon supplies negative in our also a this expect in additional from We California new largely of in from shipping and shift be Louisiana and able capacity short or the with improvement to impact region production, will to as our harvest substantial Louisiana The adding the customers. facility customers EBITDA with will margin beyond. the new in will the

Our Michael excited the growth to the make on sales some I’ll that call we horizon. now see is turn and inroads, by over the on Michael? Goose opportunity team we continuing are insight this. to to provide

Michael Goose

and segment key nine like efforts performing a team Robert, to good Thanks, growth. members efforts our the focusing people sales of on several we I’d already sales start afternoon, my started by by tighter build everyone. focus comments process and to ago, our adding repositioning to customer About strong we had. on developing months

animal, wins. starting following to This companion equine are And We and recently some we first received expanding foods from see bakery, deliver what and categories, company we the natural cereal strongly using We and lifestyle, bread. important us positioned feed, pipeline. a are breading, a our shipped large food, protein. gluten-free in our for now in is a natural focus excited order by

snack fast-growing shipping Just will [ph] with we start a quarter. last the third company week, chip better-for-you independent in respect and an into

many the this have We companion grow half the and in second plan year. substantially the to in in animal of irons the fire segment

our in to business are sales a impact of XXXX. on favorable has only absorption and product, customers facility. our major Dillon by second in margin for not see significant the grow also finding specialty which but feed half We new our We improving opportunities grow helps equine to

having impact of better and and margin. We of revenue a understanding which minimum products gaining need are new We future are reworked and our learns, in technical recently customers. and a uses and updating and in prospective size, engaged customer and lunch and exciting pricing more these days, being becoming on R&D of to our forward in the positive on And are look customers numerous calls. conference order tested we both

working companies are to also large develop and technology with few markets customers. distributors and additional We

Woodlands. lead customer a and building new to a We in manager are We forward the building effort effort recently new her customer team. hired her our new to offices service this in look service

we to the now over call so team can Rystrom. add Brent members, to sales provide focus Brent? segments. would key We our also greater return plan like for to I selectively

Brent Rystrom

Thanks, our the focused has entire President Michael. first DePaul, highlights CapEx to completion team to attain projects and we few of there quarter. the I'm operational a call. We our Robert our to that second production an Robert necessary of excellent outlined the this from operations start Operations of with did going facility the certification, planned process production. Vice in had complete at Smith strong in management quarter timeline earlier maximizing expect Mermentau as job on our

negatively quarter impacted Dillon, Our had -- limitations facility product CapEx quarter. was as several the by planned the production during projects during we Montana

these estimated an through with halfway by this September about now completion of projects year. We’re

improvements this in starting expect of demand and major Dillon. for fourth profitability, facility, we in from capacity As Michael’s team drives increased the quarter at products XXXX

greatly final warehousing making We’re we’re working to enlarged our increase toward West improvements in processing, which improve our planned distribution capacity inventory help Sacramento, carrying for capacity our in-stocks In us California. our facility We’ve grade will in for particular, and customers. offerings.

building continue the to work Delta from we Finally, brand on supplies region.

Something involving move pending offices all in May. Woodland Company aspects our the the of our is to of corporate

new of As late our put update the of everyone strong is to the to Company geographically out Robert the with for efforts. May, Woodlands our address. earlier, offers majority mentioned Smith release a pool We’ll a new the closer site, bran in and to the press we professionals U.S. occupy recruiting once supply vast

complete guidance. poor SQF to Dillon SG&A revenue. customers, the was needs expect also nutrition large and million to shift had our Next, higher of impact customers growth, one a impacted slightly, was our declined to of was a Dillon, profit nutrition some the legal facility expenses, that higher some on major food quick quarter. September. animal which by the selling by Adjusted financial I The of due accruals. the certification, the Revenue quarter metrics would saw for EBITDA range Gross prices, from like mainly sales Dillon there in customer. model. food on projects customer the limited consistent to a customer. Montana in staffing have decline as provide our during positive thoughts negative internal lower absorption CapEx was of of declined while with needs Animal was due there bonus bran impacted $X.X and we some increased negatively was negatively XX% that the we to production mix sales at

sheet cash equity equivalents million cash and $X.X $XX.X million, Finally, of debt. in the of shareholders’ with ended long-term solid shape and balance $XX,XXX of

our the for some guidance year. I Next, updates for have

quarter is growing a with second revenue start Our to off favorable in April.

will months. However, next us the from in production impact several loss in the Louisiana over ways few

due First, will our to higher to California lower margins freight cost. shipping we are production which

growth capacity Delta and production is bran add, at Second, Louisiana. in constrained we our facility plan, supplies new resumes the our from until

at or should Louisiana bran supplier in the August. to two add production new expect see months July in resume We a and next

for the in of region our Delta and we pipeline months seeking capacity greater sales additional our season. six repeat achieve a the development shows the risk in production to of in year Finally, We our next want situation Louisiana the at we need twelve to the mitigate as are there a revenue for $XX least have visibility still for pipeline. on million believe of expect of based this we we the sales to

of of sequential improvement the be of given to We negative Adjusted the impact show has early than This EBITDA through second several us quarter push to likely the lower new quarter the increased that when customers. previously expect for the sequentially and growth now year. first as we We the expected will the sourcing revenue resulting will our in end well improve. quarter accelerate also not and planned large will in the bran third originally freight cost quarter customer our delay addition supplies California. had caused the mid-second adds from to

in sharp and expect third quarters. the in EBITDA improvements We adjusted sequential fourth

full-year negative from $X.X see adjusted ranging $X million. negative million to now we a a EBITDA However,

EBITDA Accounting our substantial with largely few as from significantly or have impact early and warrant adjusted we burn, process cash positive limited have clearly by Officer. the balance Dennis our the achieve proceeds remain XXXX. of Dykes, our of last realized to XXXX We very that comfortable managed exercises remains goal Chief a Our sheet, successfully in months especially

our is The new customers and expanding with customers business continues confidence existing landing that achieving and identifying team and expectation building. to long-term improve. is in success Our for Michael’s

We’re their the in continued forward growth. these productive in employees substantially expectations. our like thanking and this look looking now We our busy efforts the transitioning for growth August. everyone their and thank on to in investors to call call our plans next for meet Operator, by to And to we’d capacity investments We all updating our confidence of to our increase to to Company time like RiceBran questions. open close like Technologies. the we’d to in call would

Operator

Please [Operator Instructions] with from Sonz ahead. go Partners. question Paul comes Sonz First

Paul Sonz

have Arkansas? question. in I Good making you’re progress about Could the a afternoon. you comment

Brent Rystrom

hope we to I’ll build point, some our we this tell in that news space. just shortly. At have to you working actively presence And very that are

Paul Sonz

you Could of the us number Okay. exercised just was? warrants total tell what

Brent Rystrom

During the million, was probably take XXX,XXX. or quarter, it X about approximately, give

Paul Sonz

would that be many with shares so, now outstanding? left And how

Brent Rystrom

[ph] at XX,XXX,XXX shares report about file. were of time this There in

Paul Sonz

think then, the said -- new XX.X I And you equity and the million? is

Brent Rystrom

is in bit quarter. equity the XX,XXX,XXX. a It the was actually Shareholders’ fourth up quarter little from

Paul Sonz

What what guidance the the you any you end the be are year? you will at giving think of Right. -- cash

Brent Rystrom

guidance balance to internally the with cash. be We’re do our we financed out not part But, without the able of comfortable the for giving modeled of comments should on running adequately have that we right we now, think cash. sheet. we seen we’re If the business that about and being

Paul Sonz

constraint? supply is and on what terms in color us give become then, more there of supply running you of any happened some can out And

Brent Rystrom

Good Sure. Paul. question,

and And mill produce through and they I April partner have or they a rate, a to volumes. a a typically then five with exports as would second of to primarily slow. any quarter. about crop might been had is of that July they week after six is that progresses. then think they’ve haven’t historically, harvest in tend mill that industry able be slower rice answer perspective, is and where from periods weeks mill period easiest what -- And that mill. that’s have year the they more is they then way simplistic we days in focused is with may where weeks, export a Louisiana go process. they hale few would another Typically through be that have few then Typically And able focus mill to where the that order get an and on in the the to mill strongest our piece off been we

partner that we plans say as the comes With be crop to And Louisiana increasingly it mill rice just our smaller this is should coming and last new in wasn’t the year supply. in the now don’t think or in. the July, crop I old completed until to about crop, mill much sparks, year with crop there was between

periodic going have burst production any. year had often are but not we in shutdown we that throughout limited this where period, So, to

California we that have that So, bring forced again have other our and into until in shift we will to source on we and/or in region. then supply facilities been mill add do to the

Dr. Robert Smith

is the of of future. with Smith. hope I Robert with that might strategy out in one come these putting Rystrom Arkansas issues is us that add I Brent this is add. we bite again and This just might supplies in that rice back that just will not additional the place

limitations some So, on to milling we additional that of shortages and for are should issues adding the U.S. and potential bran as are opposed those in actively based dealing with by future. these that alleviate export supplies on

Paul Sonz

deal look, One of customers, want potential in terms questions. are with And of be at don't guys, stance this talking from having and know question the customers? part having your Right. you which I a are new and a -- looked with out you is, to well, clearly them the second two have you wait I have last most going of because and in any if would interest supply? we then, to -- has two area second problem questions, said, the

Brent Rystrom

customers a able sourcing now And great And benefit limited coast to of intact. for have if any confident either only us supply supply bran that by supply within competition that’s are our to our to of bran which up more will walk ability dual though around our there up ideal sources, not that is give that we the be that additional allow to that one have from So, issue. the kind versus even a we in footprint ability, people the question. U.S. that it’s us is opening is them, little set of customers for Also issues chain a bit remain additional will right

Paul Sonz

pushing your deliver? not the been back on question So, you and have customers ability to

Dr. Robert Smith

have many We’ve well, at are have said, at basically that backup just looking plan, a had you footprint least, looked customers and case. our in at

Paul Sonz

Okay.

Brent Rystrom

trying very about sure continuity. to fulfill being to be opposed make we customers XXX% we’re Paul, -- customers careful want large where bringing we’re So on bring them we on to this as do worried with about certainly really when trying we these can to we

Paul Sonz

-- grow you're that you doing because see be that be able you're increase into that Arkansas, you it geometrically going growth? going year like sounds you Do something in to may geometrically, to to next would to more bringing on allow really start

Brent Rystrom

is year, I more capacity year think have have full the we’ll the we'll what for sustained growth because next year. this throughout available

think you're what yes. that's asking, if I I So, think,

Paul Sonz

through only are any about that potential to follow new from were -- -- of Is of product? went, were opposed seeing seeing you know area -- And a it’s yourself any you XX days Okay. located ago stuff, as you're conference at but sort if I particular know wondered, what you came where just you of terms I hot there the in new XX I you stuff. that? out that days, in

Dr. Robert Smith

been unbelievably West you’re in show. have I And We believe that Expo show referring Anaheim. since to busy the

Paul Sonz

Right.

Michael Goose

was show we those at that that success are was XX with probably should innovation. location; and towards now, new of people into our I future. right accepting to see Of at and XX% received our projects are about product and those funnel. that near absolutely highly drop the we’ve we But, probable that product in our activity are show seen above a looking XX the about

Dr. Robert Smith

we week, last order. had as in of drop one as actually And

Operator

Capital go from ahead. Chris Okay. with Lake The Please comes Krueger Markets. Street next question

Chris Krueger

thanks. Sure,

see the in couple some next second weakness quarter but that talk so far, we months. the of You could growing about

at full look quarter, that? or more you to would it model positive be we you should growth or expect the If flattish how

Brent Rystrom

Yes.

is way think, I be Chris would that growth the we will expected. it, have would we weaker the than characterize

to a make We have in coming pushing little we're we're visibility customers supply. bit for on deferring that timing the but on, sure good that --

of as modest view but to quarter. process. grow that we're the still kind in I going would looking manage it So, to growth,

Chris Krueger

your next count, use quarters, think couple last it $XX was said? do far as Okay. as share count I That about think good you of you the million what’s caller asked helps. you share the the it, And for

Brent Rystrom

with Q, shares, Well, we XX,XXX,XXX. the so filed in XX,XXX,XXX about

We that and noted our have today comments we’ve release in warrants, in the of subsequent exercises the of had quarter. the end post

X So, million. I adding at about would another use would least. million think something certainly XX.X higher than I shares

Operator

Harry Goldsholl, a question Okay. comes from go he’s private The ahead. investor. [ph] next Please

Unidentified Analyst

Okay.

what why of bran, a apparently logistic thinking I problem the you thought years -- been CapEx year. location moving So, questions. completed was consolidating in not yet are still had a secondly, was after problem it Brazil for to I And of and to also, purposes One of it last supplies Dillon? in failing corporate? And have environmentally, is, I years is problem had is couple we U.S.? adequate you’re secure and your that the when project a another a or why facilities

Brent Rystrom

for the you Thank question.

So, couple couple I’ll answers into first the and the third of kind part. in and a of tie thoughts that of

So, production great relationships we been few partners and is had on in business base production, historically of and with. going are Having the itself, not out of a particularly, those these has mills And the think and that they’ve that, more of said a more work to bran rice we Arkansas. very bran had supply had valued we very Company Arkansas. come have long-term relationships, and historically, where

We Arkansas. This so, years of between production at XX% out XX% year, to it’s to And out alluded acres we’re of rice right year-round positioned for Arkansas that. look core of get domestic for it total, now, so you acres earlier If planted and on purposes, X,XXX,XXX acres and five for last milling, all better it’s Robert X,XXX,XXX need at to the average and milling come half. that’s of or about looking based is that.

a that question. supply good that country. of a your part of in the to is need we comment I get So, the think perspective better about the From consolidation,

brand going As Company, a more we’re supply. a lot to need

into right than opportunities market. we of doing now. are Mike than right market, some combined that single the at substantially looking team at substantially things are food We’re that bigger his these sell we’re opportunities what bigger discussed everything food looking opportunities is in now the

the small business. the too would on So of to of mills. number we’re going a investors think to need I don’t want reliant be scale us

it’s best not the the partner. mills one base and I business in have think of interest So, dependent to diverse a any of on be

I other So, the on consolidation But as I the the -- and refer to think that’s on perspective, to stuff, there as I is will processing to, a for mills, I think think diverse. far think it be pay benefits of some sourcing some that. distribution

As far to a project as is Dillon, the Dillon related number of really. CapEx things in

them. of lot million a the related, is drum the dryers about production that standards to our the CapEx little under to SQF of it’s up is refurbishing it drum certification dryers. certification. can $X.X that, meet that’s bring million just primary going, to just going standards four And that the of is The CapEx the of of refurbishing part of Some there is facility There combined, $X.X up we requirements. itself into the maybe to bring get

Operator

Dillon go Next Capital. question Please Marc ahead. comes Hill from Nuccitelli

Marc Nuccitelli

appreciate really I guys. progress, the on Congrats it.

answered questions have the and been repositioning Louisiana the most of to with Company. my think respect I of

you that just, rice this. delineate enough guys to shortage I a want belabor is to your You don’t of have of want a equipment problem, But for shortage correct? in So, not Louisiana? moment. co-located have I enough There’s because mills, bran a with don’t really

Brent Rystrom

From our this a in where to environment. the we rice this at milling that’s was the were think, pursuing I worked year, because partner in supply going disadvantage idea. not generally, right

Marc Nuccitelli

Okay. what Because it to happened starting to similar California the was in sound during eerily draught.

that equipment So, if we’ll have a we sourcing those not in make if shortage then source have areas the enough bran, in to I from California, aggregate, or this Arkansas, to we’re we partners three have just Louisiana sure or of -- want going to reliable regions. are from is

Brent Rystrom

Yes.

with that available less I think, X% year this the are to bran caller’s question, Marc, use probably U.S. going we to previous the in of than combine the

is there capacity there. tremendous out So,

less was that. aligned Our with production

Marc Nuccitelli

on from to because -- going not again, to consternation belabor any the standpoint, rapidly So, of the this part of cause is customers the your customer shortage?

Brent Rystrom

so. I don’t think

do you comments? Michael have think, I

Michael Goose

Our orders that make all teams closed. job to really a have adjusting of done good sure been

Marc Nuccitelli

regions. say now you -- when source company you sourcing are but a you Michael, several So, are single from

though scale sourcing they will may customers even be start not if be supply profitable, with So, RiceBran. California need can they they get assured the to the from as

Michael Goose

filled Yes, how worked situation teams are current and sure orders the together top our that’s priority. make now. with right very all were that we pleased handling I’m to a how as

Operator

next Maxim Alexander Please Group. [Operator question ahead. The go with Instructions] comes from Scharf

Alexander Scharf

pretty question piggybacking in be of the guidance, made up back reach QX million So, across the $XX you number? to be pushed more quarter off are evenly half that Chris's revenue the all third going year the loss expecting just order of from to much to and is your on the revenue or out in spread

Brent Rystrom

It’s a question. good

a have couple I of business they identified are know from to that a of we that amount a going month. think do set each customers perspective, simple we

coming will to to back that not month, into back are the are will we Literally, see -- business we orders turn quarter. not you So, flow. customer on third deferring going start a

that going them come at of regular at of somebody cash of don’t They be to getting backfilling I will deferral of So, they were were a front. perspective, There bringing any whatever of business else. on is question. won't the a they getting But start. to you amount because customers just from kind activity simplistic ratable swell kind a to these your really from create if answers not will if the know on

Alexander Scharf

the talk addition quarter, add your in how how personnel, you for specifically of of you the and sales about have, do currently many the you expectations did year? Can many then rest the

Dr. Robert Smith

team. as customer support support sales externally well six team, they include as four currently I That’s internal a agree. sales We people people. have our and

looking what following, are to we more the positions And is one in certain really currently categories add focusing after. those two on expertise one going we’re to that positions. are is We

and great see U.S. For the opportunity and bakery covered every a quite secondly, we we they every region can't geographically. now in the is guys that on where space frankly four the example, a in our bakery is have the lot to right sales growth of then story. by standpoint. focusing And And salesperson we sure tell from we’re want outside hit make

question. So, I hope answers that that

Alexander Scharf

That’s good us segments or expect color. so, the specialty? last that new And or you impact my on sense wins food and in, then, turn expect you to customer to the question, give be XXXX. Can a animal those you quantify

Brent Rystrom

yes, think, I all them. of

Alexander Scharf

no sort your you're pretty those So, a of not or on mix between giving guidance that? even three

Brent Rystrom

past said in we’ve I we fairly time, even split Over -- probably, food. expect and on food what biggest the animal. this think between year is in opportunity the is

Operator

The ahead. Okay. Tim DG with O'Brien comes question next from Capital. Please go

Tim O'Brien

shift. here, Hey, looking at guys. mix of sort was to Two just me. alluded questions for just It

talk how this being what especially know with the little the you to gross margin you forward adapting do and changing see about a or it could You just through margin? going on year the hit mix that do quarter Can shift. your margin, that

Brent Rystrom

Yes.

we talking about been So, shift the had And planned for. guidance. is we've mix our something

that that’s just to new there's understood. make So nothing there perspective, from sure

different than activity. animal we it level do different the is So, margin the smaller the food we do, processing, level plan how What on and is of size. size realized a

going two freight margins cost. us the part be different added to that’s The those in impacting there's businesses. So is

go middle from California Louisiana, customers United to part to versus more forced we're to freight States, ship as in of up the going So pretty costs were the substantially. our the

Tim O'Brien

the animal it. guess just and see occurring food. you Got through year. is I that the around from my shift How more question progressing to

Brent Rystrom

we seeing between growth between our and So, year the food pretty evenly animal presently, to this expect even. I we're split what guess animal and be is is, And food. split

be more anticipating. growth a sides not was the between where business. in was quarter, the growth shift expecting animal year, we're the and food. we're the But decline first comparable for quarter, in animal, in the a little two to There the of there So,

Tim O'Brien

that And do it. customer in I issue your Got within come is large expectation? customer QX, expect to temporary, that the be and back going guess you

Brent Rystrom

think I unknown. it’s an at this point,

customer, is they’re just their we where But a good for visibility is have company, hopeful, We’re don't going. good it we’re product and hopeful.

Tim O'Brien

if certification the you to Okay. how are much costs, costs? And this lastly, certification year, were you those on strip out spending

Brent Rystrom

a it's a I I little answer. to difficult -- think think that’s it’s great question,

you have then, to needs, is efficiency there on top $X of that added related, a the expenses. of needs, all almost So, would I’m is production other total hundreds is not of of done over there say And ‘XX to to to things going on on needs. all dollar be million, that our talking of CapEx. well other CapEx thoughts. in is to I spend you’re but consultants be going expenses, it certification meet of thousands is there so we’re actual dollars would the doing basically couple several this, probably give and Q work And

X is probably your going is to of So, several be low going in thousands to expense the outlay hundreds million. be and your CapEx in the

Tim O'Brien

of at after year? done And that’ll presumably end spend with go you’ve this the away the

Brent Rystrom

It considerably. not go diminish will away. would It

is Also once deal, it’s will get you well. for lower, if the new recertification, certified need get easier to much cost as have those but a lot annual facilities, to have as the we’ll We we first a level. add

will the do level needs down considerable. So, go we’ll but have it, ongoing to

Operator

a follow-up Sonz Please have We ahead. go Paul Partners. question Sonz with from

Paul Sonz

that product you follow-ups. with you it did replace selling guys? not Two or customer ideas? they reason you the the Was some their proceed us wasn’t different you any decided with well Could why to give or component

Brent Rystrom

Are decline asked just about about of question asking you sure we’re the somebody so, question. the the one Paul, quite not or customer? previous to

Paul Sonz

customer asked he whether one you am was just… he that then coming back. that I lost Yes, and

Brent Rystrom

customer, volume So, customer that went lose our we didn’t down. of the

we’re still So, expecting….

Paul Sonz

I see.

they to like expecting. a still use decided ingredient? It’s You’re not different

Brent Rystrom

of the producing. what No. they’re volume is just It

Our ingredient into come their them. that proportionally did our so -- products; their has to goes anything overall production supply some so and down

Paul Sonz

-- that you or sure one terms And end EBITDA that beginning, to positive, wanted is to, said in just got you I I this wanted the other, make just hope by that very then, right of you year that being I of right? this

Brent Rystrom

Yes.

We adjusted to goal as to as positive have internally possible. the soon EBITDA get

We that a we’d or but part a there. possible could ‘XX, possible quarter it’s to by year. goal stretch the a it’s really in -- by but certainly full fresh, just and positive it’s month two calendar would of reach like to goal end internal And have quarter, be the see get first positive in if our it the stay that’s we a of

Paul Sonz

correctly, the were remember made you you beginning changed to do -- it of next push last that hoping next It’s something sort of the mid year. year call, up? what I it or If at

Brent Rystrom

some heavier a get will the we food think of if particular. is Michael’s we’re falls getting some back products happening the especially team anything certain ways, in little Dillon, if And visibility very pipeline mix certain with don’t faster. to maybe mix, earlier, active one there that But, a and of or out questions I the of from to pipeline. us or getting there particularly has get that help

Paul Sonz

talk you with do mill a reason. for a does its one do how tough business question, standpoint? in how minded business to with chose are about that? that to in with How the have And use last you not own deal that you talk Louisiana progress or relation a Did tough can you to them from operate going this them, if to

Brent Rystrom

It’s good question.

talk them. have way. a this with that’s This do don’t is their geared we business I tough think, mill a to really

we their operate this preferred methods So, around we know what are. and

just with are basically ebb And so, and flow. working that we

us to going I remain are good partner incredibly think, they an for going forward.

of long-term want rely a to case our needed with on distribution happened. does going it in safety on So, we’d are a if greater this opportunities warehousing region, capabilities stock and mill, it really there relationship us. couple we changes creates more for we so them. solely it have Clearly is What could lot this in that doesn’t hand have to

I inefficient. think be would that relatively

they rely for us supply to very So, region. for to I are heavily slows, this producing. we the going other create of is when productive will better mill think when it’s facilities. in This be then And more these on us sources other

was it had think We produced million March. one or I pounds in month. February X.X

Michael Goose

of largest production. the in mills of Louisiana one terms in It's

Operator

Okay. This -answer our question-and concludes session.

to remarks. like Now, Robert I’d back Smith the conference closing to over any turn for

Dr. Robert Smith

further operator. you you, we next look today forward us joining conference in giving on you And want our to listeners to in And updates call thank I all conference August. for Thank our call. Thank our all.

Operator

The you now Thank concluded. conference attending has today's for presentation.

You may disconnect. now

RiceBran Technologies (RIBT) 11 May 182018 Q1 Earnings call transcript