RiceBran Technologies (RIBT) 2022 Q4 法說會逐字稿

Greetings, and welcome to the RiceBran Technologies Fourth Quarter and Full Year 2022 Earnings Call and Webcast. (Operator Instructions) As a reminder, this conference is being recorded. And I will now turn the conference over to your host, Mr. Jeff Stanlis of FNK IR. Sir, the floor is yours.

大家好，歡迎來到 RiceBran Technologies 第四季度和 2022 年全年收益電話會議和網絡廣播。 （操作員說明）提醒一下，正在錄製此會議。現在我將把會議轉交給你們的主持人，FNK IR 的 Jeff Stanlis 先生。先生，地板是你的。

Thank you. Good afternoon, everyone, and welcome to the RiceBran Technologies Fourth Quarter 2022 Financial Results Conference Call. Hosting the call today are Peter Bradley, Executive Chairman; and Todd Mitchell, RiceBran's Technologies Chief Operating Officer and Chief Financial Officer.

謝謝。大家下午好，歡迎參加 RiceBran Technologies 2022 年第四季度財務業績電話會議。今天主持電話會議的是執行主席 Peter Bradley；以及 RiceBran 技術公司首席運營官兼首席財務官 Todd Mitchell。

I want to remind participants that during the call, management's prepared remarks may contain forward-looking statements that are subject to risks and uncertainties. Therefore, the company claims protection under the safe harbor for forward-looking statements as contained in the Private Securities Litigation Reform Act of 1995. Actual results may differ from results discussed today, and therefore, we refer you to a more detailed discussion of these risks and uncertainties in the company's filings with the SEC.

我想提醒與會者，在電話會議期間，管理層準備好的言論可能包含受風險和不確定因素影響的前瞻性陳述。因此，公司根據 1995 年《私人證券訴訟改革法》中包含的前瞻性陳述的安全港要求保護。實際結果可能與今天討論的結果不同，因此，我們建議您參考對這些風險的更詳細討論以及公司向美國證券交易委員會提交的文件中的不確定性。

In addition, any projections as to the company's future performance represented by management include estimates as of today, March 16, 2023, and the company assumes no obligation to update these projections in the future as market conditions change.

此外，管理層對公司未來業績的任何預測都包括截至今天（2023 年 3 月 16 日）的估計，公司不承擔在未來隨著市場條件的變化而更新這些預測的義務。

The webcast and certain financial information provided in the call, including reconciliations of non-GAAP financial measures to comparable GAAP financial measures are available at www.ricebrantech.com on the Investor Relations page. At this time, I would like to turn the call over to Peter. Peter, please go ahead.

電話會議中提供的網絡廣播和某些財務信息，包括非 GAAP 財務措施與可比較的 GAAP 財務措施的調節，可在 www.ricebrantech.com 的投資者關係頁面上獲取。這時候，我想把電話轉給彼得。彼得，請繼續。

Thank you, Jeff, and good morning -- and good afternoon to everyone. 2022 was a year of both great progress and significant challenges. Notably, we entered into an agreement with Gander Foods with respect to our rice milling operations. And for the first time, Golden Ridge delivered a full quarter of positive contribution to adjusted EBITDA in the fourth quarter.

謝謝你，傑夫，早上好——大家下午好。 2022 年是取得巨大進步和重大挑戰的一年。值得注意的是，我們與 Gander Foods 就我們的碾米業務達成了一項協議。 Golden Ridge 首次在第四季度對調整後的 EBITDA 做出了整整一個季度的積極貢獻。

Additionally, MGI delivered strong revenue and profit contribution growth. Particularly pleasing was the momentum was maintained in the fourth quarter despite challenges with completing a major capital project at the mill. MGI now has 50% more capacity and a broader range of manufacturing capabilities, providing a solid platform for growth.

此外，華大智造實現了強勁的收入和利潤貢獻增長。特別令人高興的是，儘管在工廠完成一項重大資本項目面臨挑戰，但第四季度仍保持了這種勢頭。 MGI 現在的產能增加了 50%，製造能力範圍更廣，為增長提供了堅實的平台。

The Core-SRB business held its own, delivering double-digit revenue growth and maintained its profit contribution. The benefits of the revenue growth and solid pricing action, though, were offset by both higher raw material and operating costs.

Core-SRB 業務保持穩定，實現兩位數的收入增長並保持其利潤貢獻。不過，收入增長和穩健的定價行動帶來的好處被原材料和運營成本的上漲所抵消。

While we've been able to grow volume through aggressive sales efforts we were unable to maintain our engagement with the previously disclosed new customers in the pet food category because we were unable to resolve certain technical performance issues.

雖然我們已經能夠通過積極的銷售努力來增加銷量，但我們無法與之前披露的寵物食品類別的新客戶保持聯繫，因為我們無法解決某些技術性能問題。

The added value derivatives business, though had a tough year. The raw material and processing challenges, which materially impacted in the first half of the year, and led to the inability to meet market demand, resulting in customer losses accentuated by increased competition in the derivatives category.

增值衍生品業務雖然經歷了艱難的一年。原材料和加工方面的挑戰在上半年產生了重大影響，導致無法滿足市場需求，導致衍生品類別競爭加劇，客戶流失加劇。

Now let me turn the call over to Todd to discuss the results.

現在讓我把電話轉給托德討論結果。

Thank you, Peter. Good afternoon, everyone. We delivered another $10 million plus quarter with year-over-year growth of 32% in the fourth quarter and 34% for the year. Both mills are executing very well and Core-SRB sales grew double digits for 4 quarters in a row. However, while adjusted EBITDA losses declined sequentially and year-over-year in the fourth quarter, largely due to a significant improvement at Golden Ridge. Results were below our expectations for both the quarter and the year.

謝謝你，彼得。大家下午好。我們又交付了 1000 萬美元以上的季度，第四季度同比增長 32%，全年增長 34%。兩家工廠都執行得很好，Core-SRB 銷售額連續 4 個季度增長兩位數。然而，儘管調整後的 EBITDA 虧損在第四季度環比和同比下降，這主要是由於 Golden Ridge 的顯著改善。結果低於我們對本季度和全年的預期。

Looking at the numbers in greater detail. Revenue. Total revenue was $10.6 million in the fourth quarter of 2022, a 32% increase from $8 million in the fourth quarter of 2021. Total revenue was $41.6 million in 2022, a 34% increase from just over $31 million in 2021. Growth for the quarter and for the year was led by Golden Ridge and MGI and helped by double-digit gains in Core-SRB sales offset by a decline in value-add SRB derivative sales.

更詳細地查看數字。收入。 2022 年第四季度總收入為 1060 萬美元，比 2021 年第四季度的 800 萬美元增長 32%。2022 年總收入為 4160 萬美元，比 2021 年略高於 3100 萬美元增長 34%。 本季度增長這一年由 Golden Ridge 和 MGI 領跑，這得益於 Core-SRB 銷售額的兩位數增長被增值 SRB 衍生品銷售額的下降所抵消。

Gross losses. Gross losses were $87,000 in the fourth quarter of 2022, down from gross losses of $170,000 a year ago. Gross losses were $759,000 for the full year 2022, a $1.2 million decline from gross profits of $442,000 in 2021. Gross losses for the quarter and for the year were driven by a decline in contribution margin from value-add SRB derivative sales. offset in part by improved results from Golden Ridge and MGI.

總虧損。 2022 年第四季度的毛虧損為 87,000 美元，低於一年前的毛虧損 170,000 美元。 2022 年全年的毛虧損為 759,000 美元，比 2021 年的毛利潤 442,000 美元減少 120 萬美元。本季度和全年的毛虧損是由於增值 SRB 衍生品銷售的邊際收益下降所致。部分被 Golden Ridge 和 MGI 的業績改善所抵消。

SG&A. SG&A in the fourth quarter declined 5% to $1.5 million from $1.6 million a year ago. Total SG&A for the year declined 6% to $6.7 million from $7.1 million in 2021. Lower SG&A for the quarter and for the year was driven by a reduction in director compensation and corporate expenses, with the latter primarily due to lower support staff compensation and benefits from subletting our corporate headquarters.

SG＆A。第四季度的 SG&A 從一年前的 160 萬美元下降 5% 至 150 萬美元。全年 SG&A 總額從 2021 年的 710 萬美元下降 6% 至 670 萬美元。本季度和全年 SG&A 較低的原因是董事薪酬和公司支出減少，後者主要是由於支持人員薪酬和福利較低從轉租我們的公司總部。

Operating losses. Operating losses declined 71% in the fourth quarter to $1.6 million from operating losses of $5.6 million in the fourth quarter of 2021. Operating losses for the year fell 31% to $7.3 million from $10.6 million in 2021. Operating losses in the fourth quarter and full year of 2021 included $3.9 million in noncash charge for goodwill impairment.

經營虧損。第四季度經營虧損從 2021 年第四季度的 560 萬美元下降 71% 至 160 萬美元。全年經營虧損從 2021 年的 1060 萬美元下降 31% 至 730 萬美元。第四季度和全部經營虧損2021 年包括 390 萬美元的商譽減值非現金支出。

Net losses. Net loss for the quarter was $1.7 million or $0.28 per share compared to a net loss of $5.4 million or $1.04 per share a year ago. Net loss for the full year was $7.9 million or $1.42 per share compared to a net loss of just under $9 million or $1.87 per share in 2021. Net losses in 2021 included a gain of $1.8 million in the first quarter or forgiveness of the SBA PPP loan and the aforementioned $3.9 million charge in the fourth quarter for goodwill impairment.

淨虧損。本季度淨虧損為 170 萬美元或每股 0.28 美元，而去年同期為淨虧損 540 萬美元或每股 1.04 美元。全年淨虧損為 790 萬美元或每股 1.42 美元，而 2021 年的淨虧損略低於 900 萬美元或每股 1.87 美元。2021 年的淨虧損包括第一季度 180 萬美元的收益或 SBA PPP 的寬恕第四季度的貸款和上述 390 萬美元的商譽減值費用。

Adjusted EBITDA. Adjusted EBITDA losses were $654,000 in the fourth quarter compared to adjusted EBITDA losses of $806,000 in the fourth quarter of 2021. Adjusted EBITDA losses for the full year were $3.8 million in the fourth quarter -- I'm sorry, for the full year compared to adjusted EBITDA losses of $2.9 million for 2021.

調整後的 EBITDA。第四季度調整後的 EBITDA 虧損為 654,000 美元，而 2021 年第四季度調整後的 EBITDA 虧損為 806,000 美元。第四季度調整後的 EBITDA 虧損為 380 萬美元——對不起，全年相比2021 年調整後的 EBITDA 損失為 290 萬美元。

Lower losses in the fourth quarter stemmed from a significant improvement in contribution from Golden Ridge, while the decline for the year reflected the decline in contribution from our value-add SRB derivatives business.

第四季度較低的虧損源於 Golden Ridge 的貢獻顯著改善，而全年的下降反映了我們增值 SRB 衍生品業務的貢獻下降。

Cash. Total cash was $3.9 million at the end of the year, down from $5.8 million at the end of 2021 and $4.4 million at the end of the third quarter of 2022. With that, I'll turn the call back to Peter for closing comments.

現金。截至年底，總現金為 390 萬美元，低於 2021 年底的 580 萬美元和 2022 年第三季度末的 440 萬美元。因此，我將把電話轉回給彼得徵求結束意見。

Thanks, Todd. Despite the progress in parts of the company in 2022, notably in the rice and specialty milling businesses, the Core-SRB has not moved forward as we wanted it to and the value-added derivatives business continues to suffer major market and operational challenges. Accordingly, we were not able to achieve the goal of positive adjusted EBITDA.

謝謝，托德。儘管公司的部分業務在 2022 年取得了進展，特別是在大米和特種碾磨業務方面，但 Core-SRB 並沒有像我們希望的那樣向前發展，增值衍生品業務繼續遭受重大的市場和運營挑戰。因此，我們無法實現正調整後 EBITDA 的目標。

The Board is in the midst of a strategic review of all the possibilities for RiceBran Technologies. These alternatives are at various stages of review. And given the sensitive nature of this process, I am currently unable to provide any further details. I'd like to thank everybody for their attention, and I'll turn it back to the operator.

董事會正在對 RiceBran Technologies 的所有可能性進行戰略審查。這些備選方案處於不同的審查階段。鑑於此過程的敏感性，我目前無法提供任何進一步的細節。我要感謝大家的關注，我會把它轉回給接線員。

Thank you. Ladies and gentlemen, this does conclude today's conference call. You may disconnect your lines at this time, and have a wonderful day, and we thank you for your participation.

謝謝。女士們，先生們，今天的電話會議到此結束。您此時可以斷開線路，祝您度過愉快的一天，我們感謝您的參與。