Ceapro Reports Second Quarter 2012 Financial Results
EDMONTON, ALBERTA -- (Marketwire) -- 08/07/12 -- Ceapro Inc. (TSX VENTURE: CZO) ("Ceapro" or the Company") today announced its financial results for the three-month and six-month periods ended June 30, 2012.
Second quarter 2012 corporate highlights
-- Signing of a worldwide licensing agreement with Agriculture and Agri-
Food Canada for a technology associated with Ceapro's flagship product,
avenanthramides.
-- Presentation of the latest results obtained from one of Ceapro's
research programs using a supercritical drying technology.
-- Re-election of Directors and appointment of President & Chief Executive
Officer
Subsequent to quarter-end
-- Successful production at the pilot scale level of the first of Ceapro's
dry powder products.
FINANCIAL RESULTS FOR THE SECOND QUARTER AND THE FIRST SIX MONTHS ENDED JUNE 30, 2012
Revenues were $1,490,000 for the three-month period ended June 30, 2012, as compared to $1,185,000 for the same period in 2011. For the first six months, revenues were $2,680,000 in 2012 compared to $2,719,000 for the same period in 2011. As of June 30, 2012 compared to June 30, 2011 Sales in Europe have decreased by $311,000 partially offset by an increase in sales of $218,000 in the USA.
Research and development Investments were $267,000 and $430,000 for the three-month period and six-month period ended June 30, 2012 as compared to $229,000 and $416,000 for the same periods in 2011. These respective slight increases of 16% ($38,000) and 3% ($14,000) reflect our continued strong commitment to expand our pipeline and position Ceapro as a highly recognized innovative Company.
General and Administration expenses were $490,000 and $881,000 for the three-month period and six-month period ended June 30, 2012 compared to $365,000 and $669,000 for the same periods in 2011. These respective increases of 34% and 32% in 2012 as compared to 2011 are the result of increased salaries and benefits, consulting engineering expenses for feasibility studies to review new manufacturing options, hiring of an Investor Relations firm and legal costs incurred due to a litigation with AVAC Ltd..
Sales and Marketing expenses were $55,000 and $126,000 for the three-month and Six-month period ended June 30, 2012 compared to $34,000 and $64,000 for the same periods in 2011. These increases reflect the planning for implementation of new marketing strategies for Ceapro. It is expected that these expenses will further increase until year end.
Net income/loss. For the three-month period ended June 30, 2012, net loss was $161,000 versus a net profit of $103,000 for the same period in 2011. For the first six-months of 2012, Net loss amounted to $164,000 compared to a net profit of $458,000 for the same period in 2011. These losses are attributed to a decrease in gross margin due to the mix of products sold, increased general and administration and sales and marketing expenses..
"While we have significantly advanced our scientific portfolio over the last two years, we now expect to expand our business development and marketing activities to increase sales in targeted territories" said Gilles Gagnon, President and CEO. "On the manufacturing side, given new opportunities that are arising, we expect to make a decision on the type and location of a new manufacturing facility by the end of 2012. Our operating results in 2012 reflect the significant efforts and resources we have dedicated to this important project. Additional capital investments will be required to efficiently manufacture our current and anticipated new portfolio. We are very confident that significant rewards will be derived from these investments" he added.
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 Income (loss) and Comprehensive Income (loss)
Unaudited
Quarters Ended Six Months Ended
June 30, June 30,
2012 2011 2012 2011
$ $ $ $
(restated, (restated,
note 18) note 18)
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Revenue 1,490,131 1,185,489 2,679,644 2,719,083
Cost of goods sold 817,217 404,819 1,337,911 1,017,067
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Gross margin 672,914 780,670 1,341,733 1,702,016
Research and product
development 267,142 228,399 429,614 415,674
General and administration 489,605 364,745 881,493 669,256
Sales and marketing 55,008 34,082 126,434 64,110
Finance costs (note 12) 25,553 48,830 51,550 95,336
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Income from operations (164,394) 104,614 (147,358) 457,640
Other operating (income)
loss (note 11) (3,848) 1,034 16,704 24,097
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Net income (loss) and
comprehensive income (loss)
for the period (160,546) 103,580 (164,062) 433,543
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Net income (loss) per common
share:
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Basic (0.00) 0.00 (0.00) 0.01
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Diluted (0.00) 0.00 (0.00) 0.01
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Weighted average number of
common shares outstanding 60,278,948 56,578,948 60,278,948 56,543,790
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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. T (Edmonton): 780.917.8376 E: bjankovic@ceapro.com
Source: Ceapro Inc.
Released August 7, 2012