Ceapro Reports Record Profit and Record Revenues for First Quarter 2011
EDMONTON, ALBERTA -- (MARKET WIRE) -- 06/20/11 -- Ceapro Inc. (TSX VENTURE: CZO) ("Ceapro" or the Company") today announced its financial results for the first quarter ended March 31, 2011. These results are presented in accordance with the International Financial Reporting Standards (IFRS) of the International Accounting Standards Board (IASB).
FIRST QUARTER 2011 HIGHLIGHTS
-- For Q1 2011 as compared to Q1 2010 :
Revenues increased by 33% from $1,155,000 in 2010 to $1,534,000 in 2011
Gross Margin increased 98% from $465,000 in 2010 to $922,000 in 2011.
Net income of $325,000 in 2011 vs. a net loss of $46,000 in 2010
-- Company's Directors exchanged debt obligations of $175,000 for 1,590,909
common shares
-- Company received $56,957 from the Canadian Agriculture Adaptation
program.
-- An agreement was signed with a multi-national company for the direct
supply of two products.
SUBSEQUENT TO QUARTER-END
-- The Company repaid its royalties payable obligation in the amount of
$378,051 which represents the balance due at December 31, 2010.
-- The Company was approved for a non-repayable grant of up to $100,000
from Innovation PEI to carry out a research and development project to
develop high value actives from a unique variety of rosehips. A material
transfer agreement with an option to license the related technologies
for this project was executed with the National Research Council of
Canada.
FINANCIAL RESULTS FOR THE FIRST QUARTER ENDED MARCH 31, 2011
-- Revenues. The sales of active ingredients to the personal care and
animal health industries increased by 33% or $379,000 in the first three
months of 2011 due primarily to significantly higher sales volumes of
Avenanthramides, the Company's flagship product.
-- Cost of Goods Sold decreased by 11% or $78,000 to $612,000 in 2011 from
$690,000 in 2010. As a percentage of revenue, the cost of goods sold
decreased by 20% from 60% in 2010 to 40% in 2011
-- Gross margin increased by $457,000 to $922,000 in 2011 from $465,000 in
2010. The improvement in the amount of gross margin and the gross margin
percentage are due to the mix of product sales which featured increased
sales volumes of high margin products as well as to an increase in
production efficiency, and, to the acquisition of top grade raw
materials resulting in significant yield increase.
-- Research and development investments increased by 40% ($51,000) compared
to 2010 as a result of new research and development projects initiated
in 2010 which continued throughout 2011 and higher costs for patents.
-- General and Administration and Sales and Marketing expenses slightly
increased in 2011 by $8,000 and $9,000 respectively.
-- Net income of $325,000 in the first three months of 2011 increased
significantly by $371,000 in comparison with a net loss ($46,000) for
the same period in 2010.
"The first quarter of 2011 represents the best ever first quarter in the history of Ceapro and builds on the consistent positive trend of solid operating results we have displayed over the last two years. We have continued to show improvement in our balance sheet and this will help support further growth initiatives" said Gilles Gagnon, Acting CEO. Given these solid financial results and the clear demonstration of our capacity to develop and sell innovative products and technologies through a highly skilled team, Ceapro is now attracting significant attention from Governments, academic institutions, and companies that are all expressing a strong desire to partner with Ceapro. We are now in the fortunate position to prioritize projects according to our available resources and we expect to sign new partnerships in 2011" he added.
The complete audited annual report and 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 Income (Loss) and Comprehensive Income
(Loss)
Unaudited
Three Months Ended March 31,
2011 2010
$ $
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Revenue (note 17) 1,533,594 1,154,862
Cost of goods sold 612,248 690,042
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Gross margin 921,346 464,820
Research and product development 187,275 135,713
General and administration 304,511 295,915
Sales and marketing 30,028 21,169
Other operating loss (note 12) 23,063 3,168
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Income from operations 376,469 8,855
Finance costs (note 13) 51,280 55,312
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Income (loss) before tax 325,189 (46,457)
Income taxes
Current 117,000 22,000
Reduction as a result of applying non-
capital losses carried forward against
the current period's taxable income (117,000) (22,000)
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Net income (loss) and comprehensive income
(loss) for the period 325,189 (46,457)
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Net income (loss) per common share:
Basic 0.01 (0.00)
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Diluted 0.01 (0.00)
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Weighted average number of common shares
outstanding 56,508,241 51,710,063
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See accompanying notes
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.
Contacts: Branko Jankovic Vice President and CFO Ceapro Inc. (Edmonton): 780.917.8376 bjankovic@ceapro.com
Source: Ceapro Inc.
Released June 20, 2011