Ceapro Reports Record Second Quarter 2014 Financial Results
30 July 2014 - 9:00PM
Marketwired Canada
Ceapro Inc. (TSX VENTURE:CZO) -
-- Total sales of $2,432,000 in Q2, 2014, an increase of 140% over Q2,
2013. Highest quarterly revenue in Ceapro's history
-- Income from operations of $727,000 vs a loss of $155,000 in 2013
-- Net profit of $630,000 vs net loss of $252,000 in 2013
-- Record volume forecasts for 2014 for flagship product, avenanthramides
-- BIOTECanada Gold Leaf Award as Emerging Company of The Year-Industry and
Agriculture
Ceapro Inc. ("Ceapro" or the "Company") today announced its financial results
for the three-month and six-month periods ended June 30, 2014.
"Keeping the business up and running, while implementing a major relocation
project to a new state-of-the-art facility is always a challenge. Growing our
business and delivering our best ever results during such a critical time was
even more impressive! We are particularly pleased with this record setting
financial performance in 2014 and we would like to thank our dedicated employees
who once again delivered superior results as well as our research and commercial
partners who are deploying tremendous efforts in successfully raising the
awareness of our products, especially our flagship compound, avenanthramides,"
said Gilles Gagnon, President & CEO of Ceapro.
"We are now looking forward to the successful implementation and commissioning
of our new manufacturing facility in South Edmonton during the second half of
2014, while fulfilling the continuing increased product demand for 2014," he
added.
FINANCIAL RESULTS FOR THE THREE AND THE SIX MONTH PERIOD ENDED JUNE 30, 2014
-- Total sales of $2,432,000 and $4,386,000 in Q2 and H1 2014 respectively
compared to $1,012,000 and $3,025,000 in 2013. These represent increases
of 140.2% and 45% which are mostly due to an increase in the sales of
flagship product, avenanthramides.
-- Net profit of $630,000 and $807,000 in Q2 and H1 2014 respectively
compared to a net loss of $252,000 and profit of $157,000 in 2013. These
net profits in 2014 were obtained despite non-recurrent cost of $115,000
and $193,000 due to the relocation project.
-- Research and Development investments of $189,000 and $414,000 in Q2 and
H1 2014 respectively compared to $227,000 and $364,000 in 2013.
-- General and Administration expenses of $462,000 and $884,000 in Q2 and
H1 2014 respectively compared to $436,000 and $873,000 in 2013.
-- Sales and Marketing expenses of only $6,000 and $7,000 in Q2 and H1 2014
respectively compared to $47,000 and $69,000 in 2013, due to a change in
marketing and sales strategy.
The Company has cash and cash equivalents of $708,000 as of June 30, 2014 as
compared to $358,000 as of June 30, 2013.
HIGHLIGHTS
-- Signing of a licensing and development agreement with the University of
Alberta for an innovative process technology to produce dry
formulations.
-- Issuance of Canadian Patent No. 2,522,739 "Pharmaceutical Compositions
Comprising Cereal Beta (1-3) Beta (1-4) Glucan".
-- Pursuance of impregnation studies to test dry formulations of our value
driver, beta glucan, as a potential delivery system.
-- Six podium presentations on avenanthramides from independent researchers
at the American Chemical Society meeting held in Dallas.
-- Publication in June 2014 in peer reviewed "Journal of Nutrition" on the
benefits of avenanthramides supplementation to attenuate exercise-
induced inflammation in postmenopausal women.
-- Engagement of Alberta oat growers to grow and scale up a new variety of
oat in-licensed from Agriculture and Agri-Foods Canada.
-- Highly successful presentation on Ceapro's drying technology platform
("PGX") at the premier Bio World Congress on Industrial Biotechnology
conference held in Philadelphia in May 2014.
-- BIOTECanada Gold Leaf Award as Emerging Company of The Year-Industry and
Agriculture.
"Our R&D program with dry formations of our value drivers will be conducted over
a 24-month period. We also have multiple high value opportunities, especially
with our avenanthramides franchise, and transitioning to pharmaceutical or
nutraceutical sectors will represent a significant opportunity for Ceapro," Mr.
Gagnon commented. "Ceapro entered 2014 with an aggressive agenda of growth and
financial targets and the transformational pace has definitely exceeded
expectations. Riding this positive momentum, I fully anticipate that 2014 will
be an exciting year for Ceapro stakeholders."
The complete financial statements are available for review on SEDAR at
http://sedar.com/Ceapro and on the Company's website at www.ceapro.com.
About Ceapro Inc.
Ceapro Inc. is a Canadian growth-stage biotechnology company. Primary business
activities relate to the development and commercialization of active ingredients
for healthcare and cosmetic industries using proprietary technology and natural,
renewable resources. To learn more about Ceapro, visit www.ceapro.com.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term
is defined in the policies of the TSX Venture Exchange) accepts responsibility
for the adequacy or accuracy of this release.
CEAPRO INC.
Consolidated Statements of Net Income (Loss) and Comprehensive Income (Loss)
Unaudited
Quarters Ended June 30, Six Months Ended June 30,
2014 2013 2014 2013
$ $ $ $
----------------------------------------------------------------------------
Revenue (note 14) 2,431,736 1,012,322 4,386,083 3,024,601
Cost of goods sold 987,603 433,204 1,881,906 1,395,589
----------------------------------------------------------------------------
Gross margin 1,444,133 579,118 2,504,177 1,629,012
Research and product
development 189,461 226,738 413,967 364,449
General and
administration 461,808 436,473 884,067 872,986
Sales and marketing 5,500 46,570 6,667 68,923
Finance costs (note 13) 60,496 24,137 152,360 74,643
----------------------------------------------------------------------------
Income (loss) from
operations 726,868 (154,800) 1,047,116 248,011
Other operating loss
(note 12) (96,902) (96,915) (239,721) (91,555)
----------------------------------------------------------------------------
Net income (loss) for
the period 629,966 (251,715) 807,395 156,456
Other comprehensive loss
Actuarial loss on
employee future benefit
obligation (note 8) - - - (16,916)
----------------------------------------------------------------------------
Total comprehensive
income (loss) for the
period 629,966 (251,715) 807,395 139,540
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Net income (loss) per
common share (note 19):
----------------------------------------------------------------------------
Basic 0.01 (0.00) 0.01 0.00
----------------------------------------------------------------------------
Diluted 0.01 (0.00) 0.01 0.00
----------------------------------------------------------------------------
Weighted average number
of common shares
outstanding 60,591,860 60,278,948 60,474,252 60,278,948
----------------------------------------------------------------------------
FOR FURTHER INFORMATION PLEASE CONTACT:
Ceapro Inc.
Branko Jankovic
Vice President and CFO
(Edmonton) 780.917.8376
bjankovic@ceapro.com
www.ceapro.com
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