RIBT - Earnings call transcript Q1 2022

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Operator

Good day, ladies and gentlemen, and welcome to the RiceBran Technologies First Quarter 2022 Earnings Call and Webcast. At this time, all participants have been placed on a listen-only mode and the floor will be open for questions and comments after the presentation. It is now 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, and welcome to the RiceBran Technologies first quarter 2022 financial results conference call. are Operating Executive Officer. Officer today Mitchell, and call Chief RiceBran's and the Peter Chairman; Bradley, Todd Hosting Chief Financial want statements that remarks participants risks to call, I prepared management's and during uncertainties. may are that the forward-looking subject to contain remind make may questions also response your forward-looking additional Management in statements to today. Securities protection of Act XXXX. claims under forward-looking Company Reform harbor the for contained Litigation statements Therefore, safe in the Private discussed today. Actual results those may differ results from uncertainties discussion therefore, the we to you with these SEC. Company's in And and the a more filings of risks detailed refer

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

Peter Bradley

Thank you, afternoon to everyone. good Rob, and

This path During sustainable strategy to healthy to of our a of utilize as XXXX, growth to and RiceBran a added successfully RiceBran traditional focus a on alternative and and we implementation put to our takes advantage developed began strategy ingredients. profitability. higher ingredients shifted to value unique ability

domestic and period We supply capabilities are of global aligned the our us manufacturing to chain. increasingly with catalysts, living during disruption healthy make attractive a secular

EBITDA. revenues move as in begun in to financial shift towards are results and have these growing, benefits we the You see positive adjusted our

us changes putting management mistakes the of Company much the profitable strong and behind quarter build the Our within we for results platform structural growth. prior first reflect as progress,

value-added core business well capacity distribution capabilities. growth strong new with as strengthening and in on our inroads into We're logistics including We introductions with our animal strengthening reach SRB space agreement utilization focus volume our and as products, product higher -- our market the companion and increased AIDP. the have successfully driving making and

driving profitability We both in and strides have also MGI made growth Ridge. tremendous Golden at and strong improved

With we further transition, further our I enhance on with this complete, profitability XXXX fully year as organization progress enhancements these our will am go-to-market of accelerate and a aligning be partnerships. structural focus confident and strategy

We levels of and deemphasize will we not. higher where invest areas we in streams revenue generate where do profitability

have positive us to to further We should have streamlined more which commodity adjusted hampered addressed away to our from revenue a as the that product of to our as so leverage transition EBITDA revenues operation shifts enable business. mix profitability in continue and incremental and continue issues execution, improvements grow

Will go with and at and will expertise think Board. acids. ingredient Jean also fatty sales, bring have being will who utilization provide the offerings the have in vitamins Will and sectors. to Global Board. towards a a and and value-added world's United with for serve -- we over a more capacity relationships positive develop run transition Head And we associations detail. serve a in in higher and in be our Company's underway of I'll adjusted Today, Bronner, Associates, & for expertise. be from on Black global Human our and Solutions consumer value-added in for food, XX of ag-tech ingredient relations, of Protein as joining will of roles stronger consumer-facing financial our minute, in an Nutrition and held involved this significant ingredients driven you and transition Jean has and nutraceutical This DuPont the Biosciences industry ingredient our logistic evident and Their in like the positive be Jean to XX-year customer healthy and transition. ingredient marketing sales you & unit. Gendason as EBITDA. is ingredient roles Board. that significant on the announced result. He initiatives, inflection continue strategy, quarter senior we a focused reached change Health. health of Todd Beth and to focus the quarter a of first to Nutrition a DuPont for have a serving nutraceuticals; well sense. was and development and translates of will equine operational company verge Ari and Products, we on to and market point is Founder the will execution, RiceBran is and market. to as business botanical the and Health marketing the food sales Will leadership invaluable all Will will and animal, give Nutritional positive human during like ChromaDex, where of Company Directors. their Heggie Jean culminating makes governance Jean join companion With which moving Will Beth a development the DuPont's of to in -- Board and We marketing, and that Jean career which letter and Heggie COO food as some more in consultancy progress by transition she companies from significant counsel served the resigned as and to company. strategic a of will industry Lead Will after Natreon, which retired -- trade is marketing Nutrition growth by Soybean the enhanced leader transition Marketing provides aging replacing food new thank is our a Ari nutrition Omega-X DSM proprietary contributions Marketing experience Global better into bioscience largest which also through catalyst manufacturer let's but detail and for product our years brings Will spokesperson first

Todd Mitchell

We positive margins. new Good to million the an We had $XX.X start encouraged everyone. We profit Thank you, afternoon, a gross generated year. returned record in revenue. Peter. to

the $XXX,XXX. profit mitigate million, compared to $X.XX a ago. or first freight Operating bit profit $X million same Net But adjusted from slightly revenue the We versus and million meaningfully losses on both losses. future. by And increases the lower in $XXX,XXX quarter, from year able losses That's in daunting, results income. orders of ago. the consultants in numbers EBITDA our customer EBITDA reflected and has quarter. at to to SG&A. the Ridge increases $X.X of the generated of in to profit outside of it range of a sheet every the ago strong you business. some Recent first volumes $X.X really million from in held $XX.X $X.X gross fourth The gross back write-down first the loss compares of Total gross Adjusted stabilized sales year-over-year. of supply expenses of strong in and foreseeable compared million EBITDA Ridge, in higher and and quarter not the on modestly return the plant Adjusted a while the net about in in year let's for which say well remained Golden year and ago. $XXX,XXX sales with a was pressure a but to from value-add $X.X narrowed production from insurance, drop the losses logistics adjusted SRB the result, the SG&A from per a in except exclude favorably quarter comparison some Golden million been if due Revenue. cash favorably issues, the compensation driven in $XXX,XXX and Indeed, the to first We $XXX,XXX said, up income in and not from large liquidity latter compares with declined down seeing the included to $XXX,XXX balance to of unplanned year a the offset PPP quarter real Strong these did including in modestly strong was our remains compared ago or higher first in these higher believe to first quarter the downtime XXXX fourth sales and year $X.X EBITDA. and net loss year large, goodwill on value-add the benefit loan. As XXXX. MGI SRB price we million, up quarter margins again that say but first a growth With the that to of fourth legal. a Operating greater quarter We're path. as end quarter's have larger quarter, quarter share results results SRB half And million a derivative the for detail. at core million first and quarter and and XXXX. supported the quarter at was share gross quarter per By year-end. million offset the million up in a the timing quarter, place XXXX, to which quarter, input derivative quarter quarter. $XXX,XXX from on look we're have costs had first $X.X first positive from but the decline some in the we've in items, profit. from in lower quarter results quarter was demonstrate our of Net XX% in challenges. income that in in modestly the for the was crucially, a there $X.X least. the in its year-over-year issues, SRB This first ago. put quarter. remain MGI strategies losses of positive Gross forgiveness the declined $X.X should costs, a certain XX% tough were per as of Remember, million $X.X $X.X little right a $X.XX loss higher and SG&A core quarter. we've upward MGI to year-over-year of chain

to closing quarter favorable I'll Lastly, ended in the the and capital Peter cash, quarter for the cash quarter. $XXX,XXX back working during trends year-end in from turn flow the to operations from due with in With with up We call comments. cash million slightly $X.X that, liquidity.

Peter Bradley

Thanks, has Todd. strategy positive to EBITDA. a clear RiceBran now pathway and

the focus Our we products is higher and which, in markets margin. turn, deliver those drives value where on recognized,

demand. growing seen and improvement The our us our We've to also partnership. AIDP derivative the feedstock to strengthen business with implemented product, first increase you capacity reach is meet process expanded and have market supply

XXXX is we through will second additions where core has to penetration capture and to companion Linked meaningful profitable launch human of replace to product our our growth. further new this to the line of that soy, into expect deliver business The deliver efficiencies, see on our the SRB corn applications. an on increased and to business and rice-derived core chain food the product, animal continued of SRB expanding we rest This focused you to ingredients. included supply focus further exists share manufacturing value opportunity variants, SRB

to completing focus efficiency completed, grains by are able and capacity market, significant upgrades products offered. business. we mill upgrades the At which third demand increase the three and at be these are milling and of overdue broaden focus offers is exceptionally on MGI market to for will target strong, deliver Our continues MGI, primary valued specialty be range our opportunity. upside products our consistently to Once the specialty high-quality long

of rice part not as have You I will focus. highlighted our note milling forward

strategic it improvement us While Company. Golden to with the should our Ridge we rice clear focus been milling have be pleased not a that has facility, become year-over-year for in our

profitability. products Golden a over to our multiple and months, be to will coming result, Derivatives specialty we and the optimize strategic pathway As provide impact the milling financial options Ridge. exploring from SRB core

that, the growth despite to With outlined, our now I've of these we're business also challenges each in answer happy deliver grow these an With supply immune challenges to not the to strategic Thank our chain. to operator. solid are you, in key any RiceBran is penetration the offers expectations see questions. but initiatives applications. opportunity

Operator

Mark is our coming And Smith. question Instructions] [Operator from first

Mark Smith

Lake Mark of questions. A Street. Smith at couple quick

But you improvement additional us if stronger know I trending would First, can typically for can on at give that. year-over-year that this a be any guys business is quantify MGI? is at seasonally you MGI, that data great. all quarter how maybe and

Todd Mitchell

Todd. Mark, this is

double high at bottom seen material, think we've that line year-over-year very I -- are the very both on improvements and digits, our top MGI the line. the

a that inflation degree has it of that's but price there's from in productivity come lot I and certain of enhancement. business, volume a -- think come from

Mark Smith

pull maybe of strength QX, in trends? And same Okay. forward QX any the any see kind wouldn't of MGI, during any the expectation that

Todd Mitchell

No.

we'll I the historical I And second that a to a quarter. lot the fact, the there first able seen see business we've same think in in done mitigate the of we'll quarter lot with we business. that the trends think in saw be where, the in leader team probably you've that seasonality and

Mark Smith

you're Perfect. into and value-add especially And at post some of that kind quarter the The trends of update end look this seeing through leads that right question. as next SRB. QX, on we

Todd Mitchell

variance from think in the to very trends QX. I that been -- QX our little there's

that fourth in I see the the begin the the as go to the and order on quarter. quarter. with there quarter year. book the half business pick sort SRB trended up, looking Our at tough real and quarter derivatives pipeline into of second latter we'll first And It business think had just we a of

Mark Smith

Perfect. update turn could you on to of positive And last think for Any me. EBITDA, you then when outlook maybe kind for EBITDA? one

Todd Mitchell

I'm hopeful that. leave at going remain it this for We year. to

with the gap. that able where in be is revenue bridge improvements our and may of think we mix trending, slight I the to product,

Operator

who Our James. Dawson Robinson, next question with from is comes Charles

Charles Robinson

Congratulations on quarter. the record

Todd Mitchell

Thank you.

Peter Bradley

you. Thank

Charles Robinson

some there And resignation shares on Continental a you Is your the correlation sold quick and the question. Ari that? shareholder, X.X largest Gendason? million Can Grain, shed of by a between light

Peter Bradley

But on strategy, Ari investment and it's Continental place us our portfolio. think for to things to that, to strategy. Grain's honest, their on To do got Continental other comment it's not on I be comment not the for investment

Charles Robinson

looking for from there why I Okay. Board? he is resigned reason I was a guess the

Todd Mitchell

a to focus It's of matter what he on. wanted

Peter Bradley

Yes.

Charles Robinson

Okay.

Todd Mitchell

instead to the Board our members qualifications two bring look would at that new us. I

can strategy shift as I operation, think we in else, the I at are being there. two together you put think specialty towards what look and to if you doing grain Anything ingredients opposed Charles? two with larger a

Charles Robinson

No, all no, set. I'm

Operator

comes next from question Our Johnson]. a [George

Unidentified Analyst

and like And private Peter to a Todd, investor. you. I'm I'd thank

I any times developments pet and last My in a a to think the MGI product? do these you've food bran. on combining bit very question our first had ended mentioned the Are whole, of challenging good has quarter, Peter, first country possibility in a we that rice here with year, quarter. as oats a which little here, that, there in

Peter Bradley

our demand still the on to of customers can What You're we What that. right, volume, is do strength because oats of their though. and are right? the bran MGI opportunities lot using are of more There rice MGI? A both get in core products formula. in for out of focused we've really upping the

a business moment, MGI's we we think strong. but route, down more been handle I core proposition will the At head has so we've got opportunity that that product. just can standard

Unidentified Analyst

how -- MGI demand Agweek is with and question and and related barley feed, article, which so increase customers, had the or April a by that barley animals. the you food RBT that I their can companies, made after one magazine Have X? article, always about understand then And very an if is protein, they it in it's that XX% to horse any with you by becoming the had, noticed been by really well pet the never sits that. more talked

Peter Bradley

is think. has higher I just in is And even there other also demand got in SRB some interest, food strong what the that all in fair, has Well, that because finding whole protein pet SRB barley, Yes. benefits. and not standard space slightly standard but we're is

real the the companion across business whole product space the as see for we opportunity line. a animal So

Unidentified Analyst

year. you made last one And of question more a comment then

and just with they're brand. all, having the of of who with handle. want You been us doing the and that new might we which -- India has partnering in sounds one with just -- comment, like food it the into owns big help rice products organic a mill if members, those Narula, Thailand, possibility nutraceuticals in Board them Indonesia corporation, their really or mentioned I out selling everything -- pharmaceuticals,

help be big might those there. new a think Board I members

Peter Bradley

we on. why that's them And brought

As market. you're we the obviously, it's that ingredients that's can go my while Board very And background. to grain from thinking. our as members specialty add commodity business, aware, We wanted to food different very well have to

So will right. very you're exactly helpful. they be I'm sure

Unidentified Analyst

fortunate we're to a I have And for That's quarter. you very CEO, all you as too. have. Thank great

Peter Bradley

Very you to nice of say that.

Operator

Our from next comes question Matt]. [Martin

Unidentified Analyst

imagine, get callers to as past. and I'm And I a on it. clarify it little can your answer forward was you on you might I've said I'm one to spoken at still quite EBITDA, the just when the times be. this to each us look hoped noticed that sometime you Can would to But very you there. that to a response which and bit investor. fuzzy conference waiting we maybe even to the future, on has for closer? break in expect of is call, year, to positive I see it XX-year you a the

Todd Mitchell

that. to not I'm Martin, do going

I think incumbent positively, headed think if to them deliver trends, you look us it's and they're at I for upon you. the

-- So the talk but not let's future. about

deliver Let's future. the

Unidentified Analyst

in trend. Board it's have past, a I certainly overdelivered, this good. taken the main, promised the In have. over, the question underdelivered. and And have Very good you all new that's so we overpromised under and Since has of

Operator

next Our [David Core]. from question comes

Unidentified Analyst

of on percentage Of what Congrats curious. that that record be revenue, of quarter, would was $XX.X the quarter. million derivatives? I

Todd Mitchell

last our leverage it overall the line. that that year that margins is percentage to and year a not so because grow which significant it that's our out But generated business going generate we grew offers I'm businesses, if last within continues to not is speak the bottom as don't derivatives mix something the to We to break it disclose. continues to

Unidentified Analyst

to sales those yet? Has AIDP contributed

Todd Mitchell

Yes.

Unidentified Analyst

Significantly?

Todd Mitchell

to were in would willing say I AIDP, be the meaningful to Sales quarter.

Unidentified Analyst

All the Keep news. good guys. good That's right. work, up

Todd Mitchell

you. Thank

Peter Bradley

Thank you.

Operator

There to comments. turn for Okay. questions over [Operator closing the you. are we currently no Peter queue. Thank now remaining Instructions] in it And

Peter Bradley

Thank helped you, team us over the move again. listening your labors We RiceBran their continued in support big really to to the for have difficult quarters. value seeing who fruits We everyone, to coming also and earnings of thanks business forward the our the a release. forward. look circumstances Thanks

Operator

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

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

RiceBran Technologies (RIBT) 30 Apr 222022 Q1 Earnings call transcript