Ricebran Technologies · OTC:RIBT
Ricebran Technologies — ICR Conference 2019
25 slides from Ricebran Technologies's conference presentation, Jan 14, 2019
Slide 1: ICR Conference January 14, 2019
ICR ConferenceJanuary 14, 2019
Slide 2: Safe Harbor
2 Safe Harbor This slide presentation contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Statements made in this slide presentation that relate to future plans events or performances are forward-looking statements. Any statements containing words
Slide 3: Share overview
3 Share overview (as of January 11, 2019) RiceBran Technologies: RIBTShares outstanding: 29.1mmRecent price: $3.17Market capitalization: $92.2mmAverage daily trading volume: 106k
Slide 4: Our mission
4 Our mission: Nutritional Benefits: High in fiber, protein, healthy fats and anti-oxidantsClean Label Attributes: Gluten free, non-allergenic and non-GMOReaches Broad Market Segments: Vegan, Kosher and non-GMOAttractive Product Story: By-product from milling creates large supplySales Team Leverage:
Slide 5: Rice bran is a highly underutilized food resource
5 Rice Bran is a highly underutilized food resource Global production estimated at ~52 MMT per yearRaw rice bran prone to rapid oxidation, quickly destroys its nutritional and economic valueLess than 1% used for human consumption 0 - 33 - 66 - 99 -212 - 3.8K3.8K – 7.7K7.7K – 11.5K11.5K – 15.3K 1000
Slide 6: What is rice bran
6 What is rice bran Rice bran has been undervalued as animal feed and a waste-product due to its short shelf lifeUpon milling, the rice bran becomes rancid within hours of milling and is commonly disposed as a low value by-productRBT’s proprietary technology stabilizes rice bran for one year, allowi
Slide 7: How rice bran helps companies meet new trends
7 How rice bran helps companies meet new trends Beverage ($10 billion category) Nutritional beverage companies use rice bran as a fiber additive, protein source and anti-oxidant supplementNatural Snacks and Crackers ($5 billion category) Snack companies use rice bran as a non-GMO and gluten free rep
Slide 8: RBT is shifting focus to growth
8 RBT is shifting focus to growth Balance sheet repair and certification efforts largely completeAdditional sales hires improved access to companion animal, protein, CPG, starch and fiber markets, and we are now positioned to add more products to our portfolioImportance of driving sales growth to le
Slide 9: Strengthening our supply chain to drive growth
9 Strengthening our supply chain to drive growth Inventory-focused production versus build-to-orderSafety-stock inventories will reduce seasonal supply risksImproving demand and production planningExpanding into Arkansas improves suppliesBeing a better partner for our suppliers – improving our consi
Slide 10: Golden Ridge helps growth, lessens risk, adds EBITDA
10 Golden Ridge helps growth, lessens risk, adds EBITDA RBT acquired Golden Ridge Rice Mills on November 28, 2018 for total consideration of $7.8mm, $5.0mm in the form of RBT stockGolden Ridge provides RBT important benefitsExpands SRB capacity and gives us full control of production processReduces
Slide 11: FDA letter granting RBT's petition
11 FDA letter granting RBT’s petition Companies using our rice bran fiber products can now make dietary fiber claims for these ingredientsIn early July 2018, RBT received the FDA letter granting our petition to include rice bran fiber in the Agency’s list of Approved Dietary FibersRice bran fiber co
Slide 12: Driving operational improvements
12 Driving operational improvements Plant-level performance incentives to drive stronger resultsImproving transportation and logistic capabilities in challenging cost environmentAdding capacity in the Delta – closer proximity to more customers should drive sales expansion and improved marginsInvesti
Slide 13: Third Quarter Financial Results Summary: Income Statement & GAAP Reconciliation
13 Third Quarter Financial Results SummaryIncome Statement & GAAP Reconciliation Full Financial Statements in Appendix A
Slide 14: Third Quarter Financial Results Summary: Balance Sheet Highlights
14 Third Quarter Financial Results SummaryBalance Sheet Highlights Full Financial Statements in Appendix A
Slide 15: Capital structure
15 Capital structure Presently 29.1mm shares outstanding Almost all debt eliminatedWarrantsDuring the twelve months ended December 31, 2018, we had cash exercises for 8.7mm shares bringing in $11.1mm Remaining warrants (approximate values)6.9mm warrants to purchase stock at $0.96: 3.2mm shares provi
Slide 16: Financial and operational challenges
16 Financial and operational challenges Raw bran prices are cyclically elevated and putting pressure on our marginsDelta has lowest bran prices, especially in ArkansasFreight costs are a food industry headwindCap Ex: major Cap Ex cycle should slow considerably by mid- to late-2019Large investment re
Slide 17: Focused on driving growth and positive EBITDA
17 Focused on driving growth and positive EBITDA Targeting four primary goals in the core rice bran business: substantial expansion of SRB, maximize derivative products, develop 2-3 new products annually, target 10% EBITDA marginGolden Ridge focus on debottlenecking driving higher sales volumes, cro
Slide 18: Stronger 4Q:18, targeting growth and +EBITDA in 2019
18 Stronger 4Q:18, targeting growth and +EBITDA in 2019 RBT guided FY 2018 revenues between $14.5mm-$15.5mm and an improvement in 4Q:18 adjusted EBITDA from 3Q:18 levels2019 should see sequential acceleration of rice bran business, benefits of Golden RidgeExpect overall 2019 revenue of $40mm, breake
Slide 19: Management team
19 Management team Brent Rystrom, Chief Executive OfficerPrior to being named CEO on October 1, 2018, Mr. Rystrom was previously Chief Operating Officer and Chief Financial OfficerDennis Dykes, Chief Financial OfficerPrior to being named CFO on October 1, 2018, Mr. Dykes was previously Chief Account
Slide 20: Corporate governance
20 Corporate governance Brent Rosenthal, Chairman of the Board - Mr. Rosenthal has over 20 years of investment experience including prominent food investments: Aramark, Nielsen, Park City Group and Huff Hispanic Food Consolidation. Additionally, Mr. Rosenthal has extensive public company Board and t
Slide 21: Appendix A
21 Appendix A
Slide 22: Appendix A
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Slide 23: Use of Non-GAAP Financial Information
23 Appendix A USE OF NON-GAAP FINANCIAL INFORMATION We utilize “Adjusted EBITDA” as a supplemental measure in our ongoing analysis of short term and long term cash requirement and liquidity needs. Adjusted EBITDA does not represent cash flows from operations as defined by generally accepted accounti
Slide 24: Adjusted EBITDA Reconciliation, three months ended September 30
Appendix A RiceBran Technologies Adjusted EBITDA Reconciliation For the three months ended September 30 (in thousands) 2018 2017 ‘Net income (loss) $ 27) (8,320) Interest expense 2 86 Depreciation & amortization 173 157 Unadjusted EBITDA $ 452) 8 (8.077) Add Back Other Items: ‘Change in fair value o
Slide 25: Adjusted EBITDA Reconciliation, nine months ended September 30
Appendix A RiceBran Technologies Adjusted EBITDA Reconciliation For the nine months ended September 30 (in thousands) 2018 2017 Net income (loss) 6.700) (3.420) Interest expense 5 1,616 Depreciation & amortization 544 sm Unadjusted EBITDA $ Gast) $ (41,233) Add Back Other Items: ‘Change in fair valu