EDMONTON, ALBERTA--(Marketwired - April 19, 2013) - Ceapro Inc. (TSX VENTURE:CZO) ("Ceapro" or the Company") today announced its financial results and operational highlights for the year ended December 31, 2012.
FINANCIAL RESULTS FOR THE FULL YEAR ENDED DECEMBER 31, 2012
- Total sales of $5,165,000 compared to $5,786,000 in 2011, a decrease of 11%
- Loss from operations of $507,000 compared to income of $585,000 in 2011
- Net loss of $538,000 compared to a net income of $576,000 for 2011
"Two specific events impacted our earnings and cash flow in the fourth quarter, which reduced our financial results for 2012; however, they are not expected to impact our 2013 plans," said Gilles Gagnon, President and CEO. "First, revenues were negatively impacted by a 40% decrease in beta glucan sales due to a severe economic downturn in many European countries and secondly, two significant orders, one for veterinary shampoo products destined for Japan and one for personal care in North America, had to be rescheduled to January 2013. We were disappointed with the 2012 financial results; however, we do not see this as a negative trend and preliminary results indicate that Q1 2013 will be a record revenue quarter for Ceapro."
"From an investment perspective, we continued to focus our research activities on the successful development of new formulations and potential new indications for our value drivers, avenanthramides and beta glucan. Additionally, we have assessed new marketing strategies and spent considerable efforts and resources in planning for the establishment of a new state-of-the-art manufacturing facility for Ceapro. At this new site, we expect cost reductions through increased extraction efficiencies and the integration of all our employees under one roof. In all, we expect to improve our margins on existing products and to be able to produce the new products that are the focus of today's research activities," he added.
2012 KEY OPERATIONAL HIGHLIGHTS
- Successful scale up of supercritical fluid drying technology to produce pilot scale batches of beta glucan dried formulations
- Signing of two licensing agreements for technologies from Agriculture and Agri-Food Canada to improve the yield of Ceapro's flagship product, Avenanthramides
- Successful development of lupin peptide powders
- Completion of in vitro performance testing at NRC-PEI with favourable data to support Ceapro's product claims in cosmetics applications
- Successful initiation of new facility development
- Signing of agreements with distributors in Europe and Australia
"Based on our current strong order book and upcoming initiatives, we remain very positive for the year 2013," said Mr. Gagnon. "We are also attracting serious interest in our innovative technology platforms and products from major players in new market sectors such as nutraceuticals. In addition, the construction project for the new facility is on track for completion in the fourth quarter of 2013. Over and above these initiatives and, in line with our-long term strategy, we continue to evaluate additional opportunities for growth including contract manufacturing opportunities. Our vision is to be recognized as the Canadian leader in botanical actives and a center of excellence in bioprocessing by 2015," added Mr. Gagnon.
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 personal care and cosmetic industries using proprietary technology and natural, renewable resources. To learn more about Ceapro, visit www.ceapro.com.
| CEAPRO INC. |
| Consolidated Statements of Net (Loss) Income and Comprehensive (Loss) Income |
| Year Ended December 31, | ||||
| 2012 | 2011 | |||
| $ | $ | |||
| Revenue (note 12) | 5,165,276 | 5,786,174 | ||
| Cost of goods sold | 2,716,605 | 2,538,347 | ||
| Gross margin | 2,448,671 | 3,247,827 | ||
| Research and product development | 856,191 | 996,719 | ||
| General and administration | 1,795,476 | 1,374,030 | ||
| Sales and marketing | 198,650 | 111,359 | ||
| Finance costs (note 15) | 112,900 | 180,808 | ||
| (Loss) income from operations | (514,546 | ) | 584,911 | |
| Other operating loss (note 14) | (23,807 | ) | (7,338 | ) |
| Net (loss) income and comprehensive (loss) income for the year | (538,353 | ) | 577,573 | |
| Net (loss) income per common share (note 24): | ||||
| Basic | (0.01 | ) | 0.01 | |
| Diluted | (0.01 | ) | 0.01 | |
| Weighted average number of common shares outstanding | 60,278,948 | 56,561,513 | ||
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.
Contact Information:
Vice President and CFO
Ceapro Inc.
T (Edmonton): 780.917.8376
E: bjankovic@ceapro.com