RIBT - Earnings call transcript Q3 2021

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good afternoon ladies and gentlemen, and welcome to the RiceBran Technologies Third Quarter 2021 Earnings Call and Webcast. [Operator Instructions]. At this time, it is my pleasure to turn the floor over to your host, Rob Fink. Sir, the floor is yours.

Rob Fink

Thank you, operator, and good afternoon everyone and welcome to the RiceBran Technologies third quarter 2021 financial results conference call. are Officer. Executive today Mitchell, and call Financial Chief the Peter Chairman; Bradley, Todd Hosting to all that want remarks risks I remind uncertainties. may management's the and contain prepared call, forward-looking statements are to participants subject that during in Management questions to today. forward-looking your response may additional also make statements that's of Therefore, the XXXX. statements under the Private harbor for the company in safe Securities claims forward-looking protection contained Litigation Act and from refer discussion may differ those and risks you of a results and SEC. we discussed company's Actual therefore, the detailed to more these the filings uncertainties in today, with

provided future turn any call represented of At addition, certain including the and GAAP Investor projection measures conditions of and are obligation measures on In as is call XX, financial in time, on this to Peter. call I'd Relations these financial October financial management as yours. the market the change. non-GAAP the company's the the to estimates This update the over assumes as to no ricebrantech.com to performance to webcast include company XXXX, comparable by available Peter, the today, page. projections on information reconciliations like future

Peter Bradley

Rob, everyone. Thank good and you, afternoon,

systemic operation and which past have the we higher value of have margin, focus added on execution, can providing ingredients. we we streamlined year, most eliminating the a Over solid from challenges faced improved base developing higher

food my grew Supply the our results and XX in give of revenue but margin. go impact the much the quarter our losses a mitigate to we better chain shortages and demonstrate environments gross the most one taking of in and as I are their issues it. EBITDA importance XX% industry. and in quarter, cost revenue These impacting and can. customers. but labor in career by we have are the will disruptions the accessing not where away year-over-year We challenges in third us third food materially The in overnight, and specific narrowed us nearly and $XXX,XXX year ingredient quarter actions we strategy implementing seen over almost challenging details, Todd executing estimate related you will in

pressing also milestones with let's detail through I more in on first, development you the this quarter. you the give will on important and in a more third minute. achieved in some our are run We product have forward progress new quarter detail. front Todd But

Todd Mitchell

Thank you, everyone. afternoon, Peter. Good

quarter continued in As profitability, Peter we towards progress reaching indicated, improvements in third goal year-over-year demonstrated metric. financial key with meaningful of the our every

was greater third million from growth higher by in in Year-over-year Sequentially, Revenue. quarter to the be Total revenue relatively revenue issues. little at $X.X Golden Ridge a million XX% was driven the two the with the in from aggregate in revenue total key in numbers from by our quarter's second detail. from can flat. a attributed revenue $X.X ago. grew The look quarter. year in quarter XXX,XXX businesses Let's total other million sales down $X.X sequential principally drop to third

chain us costs core in First, we The in the failure at to revenue remediate in likely in due a equipment XXX,XXX to disruption. we another manner. MGI unable were us Again, that due to cost supply quarter. quarter. timely second, least This at inability revenue downtime weeks unplanned And two transportation challenge over to in our the business. secure in of logistic SRB $XXX,XXX had

profit. results gross but the saw a all gross in to though, Ridge $XX.X sales. After loss derivatives. by grown With loss compares year of ago. the Golden and XXX,XXX of derivative revenue of of two total from higher SRB third million For of improved loss which in Year-over-year, nine first contribution XX% at in quarters XXX,XXX $XX.X gross reduction a in in Golden million strong businesses, has of quarter, nine the Ridge SRB growth sale months the year first to at particularly and was months XXXX. from the we gross Gross driven profits, a the

costs the fourth fourth by adequate was to customer and than freight and $X.X by only stabilized red million $X.X due flat. front, our We've million in improvement also other vastly loss our earlier was or loss and SRB a And core nine Year-to-date of our lot per enhanced been increase is share Net material freight logistic Raw we shortage income and for our in in net of as share loss all working own material to adjusted prices. the XXXX. And was million to year-ago. per I'm quarter on responding XXXX. net to a this share to the was was third from upward quarter, lower first of EBITDA a quarter operating was partners a a third a a say our or in year loss executing. available expect higher lower the million and and in first with wide customers productivity for loss, ago. secure operating quarter, this freight the We're be MGI from was $X.X have for million raising in of freight our costs third per the our to beyond. how loss third to us in business. actually to to capacity cost year. replaced Year-to-date, Due as nine However, cost ago. our on in for the first benefit million loss $X.XX and gross million to $X.X lower seemed this the loss reduced adjusted loss. EBITDA. the to nine to input the by adjusted supplanted $X.XX principally loss year raw SG&A Year-to-date, $X.X is the volumes cost to year-ago. This all a a SRB jumped $X.X Golden XXXX. was $X.X net accompanied the and or of loss enough months of million our in resulted or gross keep XXX,XXX, quarter. Operating on Not loss profit compared improvements losses businesses. quarter, results $X.X months months narrowed was $X.XX $X.X months compared million $X.X million mitigating very in and pleased other We've first be a $X.X of the or by of $X.XX compared carriers. EBITDA to million of Operating team corporate costs in Ridge compared share an compared a volatility year by in spike the million not core year-to-date weighed $X.X compared to nine raw the Driven for material EBITDA to $X.X in gross loss at pressure business adjusted of seen XXXX. with per quarter and Year-to-date

and million gross the liquidity. cash the Lastly, in quarter were the the at end Cash equity quarter million at third $X.X second from of end $X third financing due of $X.X up in million completed quarter. a the to

remarks financial end we to net of $X.X result, the compared the on million of the net results. That cash concludes As at debt the $XXX,XXX with a second quarter. in quarter ended

to the strategic Peter Peter? key specialty I'll So call to back to the ingredients. discuss elements turn shift of our

Peter Bradley

Todd, Thanks sorry.

But me more to transitioning a to minutes on key to strategy We a let of forward ingredient our means margin higher referred take specialty what few and granularity actions. have this how business. provide

AIDP We're SRB on First, and confident and AIDP added by now to we already But will growing opportunity. sales helps to higher believe capitalize should in grow value from the And allow products us enhancing revenue Sales are distribution supplement sales for better up on markets. in our they partnerships. wellness continue here with this these us and products significantly we of remain the partnering underdeveloped. are last significantly year. a

training sales prospects We to have already the and started in team see completed AIDP with pipeline. the

we expect SupplySide working KER which our our interests. speed also and by November expand opportunity to well to specific other development. We Performance avenues Las be Kentucky nutrition's. to core based products partner We'll this targeting and market enhance believe a is new speed opportunity this market in is SRB applications. Equine of to off FOB, to in discuss meeting in We're but our new in an health KER established position introducing open with product this or equine week Research relationship for kick horse our Vegas there in West, equine horse and

successfully develop track. higher new contains first that think with a the value we unlock SRB. and proprietary functionality Second, valuable we scale commercialization. dense a enhancing stabilized other and the This complete technology, value trials produce and flavor our expand plant compounds to market step profiles. significant. Through development enhance of the nutritional we deliver these [indiscernible] efforts our the major nutrition can better we of technology that new our enzyme The remain forward many In is ingredients. ingredients the feedstock that that the we product ability confident addressable with remain and nutrient processes RiceBran improve better on is of products components, And in quarter, will new

to added specialty which ingredients ingredients underpinned higher our transition business. value will a for New SRB,

company. to back the competitive for provide the for view going the of since to circumspect I'll call young, to on these remain turn Todd Todd? However, outlook able on time the this commenting we're the stand reasons. a developments forward

Todd Mitchell

again, Thank Peter. you

offline for enhancements. of to foreseeable Dillon, say a logistics Our capacity facility some likely I future. are SRB challenging currently weeks that couple it's And Montana, is complete think in safe the to derivative to remain

to we to improved July we results was and be second As logistics be results. from trends quarter to better levels. place, execution, third remain fourth improve quarter tougher pretty looks September such, expect true the moderate will or be quarter. in these and can month quarter underlying in October the shaping quarterly than and a If third August, third stronger and throughout comparison, year-over-year than far solid well. against a fourth quarter growth up on ends as a Nevertheless, our

proposition we us simple, both a de-risk address steady are logistic We working our give can in and lock customers order We business. committed and with carriers. is relatively challenges. our The to pattern

to business. now in basis. on for return expected be positive Golden we'll stable Back ever We in the MGI. to gross budgeting gross improving by the EBITDA than give XXXX. fourth - to results we're With you. fourth to fourth would core the third. greater also better losses on improving from look regular SRB aided call. based results from process lower imply our in quarter a profit frankly prepared Thank return margins Peter? remain quarter our And you adjusted to of where And We're details the quarter, in SRB shipping SG&A broad Ridge increases our to And

Peter Bradley

And achieving there and not But support. logistics major other challenging Thanks, place up investors objectives. take that chain in profitable Todd. environment. strides Operator? our to in to to on have disruptions, for yet. opportunity actions operating the mitigate so we supply focus our in We're I'd a maintain their have thank our the transition company. open we to questions. impact the can ingredient a employees, But like we a specialty partners We're for now made call And and longer-term from

Operator

floor now and you. Thank gentlemen, open is questions. Ladies for the [Operator Instructions].

Smith Markets. coming live. Lake The Mark line Mark, is your first from is Capital question Street from

Mark Smith

little Golden Thanks, walk commentary year-over-year maybe did basis? MGI think I a or of and sequential Todd primarily they just guys. the bit a each businesses how results Can from I in you on your through Ridge, missed

Todd Mitchell

saw We very year-over-year. growth very, Ridge strong Golden from

that we challenges relatively business results the of last that faced cognizant in business at this stabilizes. as you're sequentially were time year think flat, and I

say MGI, I and flat were sequentially. that down For would year-over-year results

Mark Smith

it's And built since MGI, QX that's right timing there? to pretty basis, already in typical QX for for

Todd Mitchell

think go a we machinery had which two able down, And replacement normally and key the we've I was business weeks. better build the to it at hard took working that be a should It's issue we seasonality, as mitigate typical I in to that, for MGI real XX piece my of get hours, to part seasonality. the said, been within of of book the some comments, of part

Mark Smith

was from there estimate MGI? that and from failure best said you about the Okay, impact $XXX,XXX equipment

Todd Mitchell

Yes.

Mark Smith

transportation in kind you that issues of headwinds, then the business check want And like or kind feel like product and Dillon, through the to that and derivatives cost you the issues feel is I about primary costs? with being primarily where up lost what transportation from sales able you or to not and kind you that and just $XXX,XXX California of be SRB would us of just to faced it get walk you where were that

Todd Mitchell

primarily or it commented cost I it our least that coming business. primarily bulk is in And at $XXX,XXX. out of it core Delta. us And SRB is the

Mark Smith

timeline and we on you kind that just product updates about are products? then to new Can launches kind I that or where wanted talk for out expectations new new you in products. a Okay is maybe of Peter, some now just anything and gave introductions, on for of

Peter Bradley

a couple now that sell got we've of Well, out will through varieties AIDP.

So about quarter. those they're last talked new, we

the a introduce plan of flavor ready which XXXX have developments terms new we're my XXXX. is In now, enzyme to the will be of new I'm looking, them derivative, then products and will treated doing we for QX QX enhanced

Mark Smith

Okay, great. you. Thank

Operator

Okay.

We have James from coming additional Dawson an question Robinson from Charles Securities.

live. Your line is

Charles Robinson

could start more partnership, on start fruit? to bear and that color could guys, us to AIDP Hey you when bit the little meaningfully give a see we

Peter Bradley

start the the tomorrow. next not would I very apologize. little loans, line bit, the think I'm a then kickoff seeing really and why good. already that my really comes what kickoff, the year. are for than on propositions we the I know We're big see world in which quarter the way quarter that pipeline. markets which beauty is probably I is would why we're my we to strong, Vegas chose commercial to is the food. find much very that. supplement normal is you first to is kick-in and in that evaluation The second in shorter time the next And start customers with in that

Charles Robinson

every like issues quarter? invariably other business, to of One something a it question, way there up single to every come seems mitigate with is a that affects something comes good. permanently up seem supply Sounds or those chain some that quarter, maybe the

Peter Bradley

will in right? is certain on products. the operationally of don't fix into just you size to RiceBran done for get I Technologies crisis. and supply the in a is industry, nationwide is When as mitigate them like how But the this we're lot literally a cannot know right? logistics process quarter honest, think to And some a the mitigate literally I this it get to issue, or into quarter situation truck, will to things comments, issues. still customers this. not worldwide I doing labor never we've whole follow our be it This a fourth don't chain a that You chain. is have a I what mentioned innovative my company supply seen Yes, can't But, it. resolved, issues,

Charles Robinson

Thank you. enough. Good

Operator

for closing the back turn to I'd now like Peter floor to Bradley remarks.

Peter Bradley

toughest you as but been, profitable, on for and seen, we're environment, attention. right I you remain it's a everyone's margin, your tough thank Well, ingredients It's track the We confident a moving I the having attention. Goodbye. thank specialty said, for I've towards special high business.

Operator

time Excuse me, we Peter. question? Do more have for one

Peter Bradley

have more question. always for time one We

Operator

one just moment. Okay,

if me like looks Let conference. I left see he can. It the

Peter Bradley

you, operator. Thank Okay.

Operator

email. an I'll send you

Peter Bradley

All right. great. That's

Operator

conference ladies you, today's conclude This Thank call. and gentlemen. does

wonderful You you may your time a lines phone Thank for disconnect this your participation. and at have day.

RiceBran Technologies (RIBT) 28 Oct 212021 Q3 Earnings call transcript