$CERP
|
Cereplast Reports 2013 First Quarter Financial Results
2013 First Quarter Revenue Exceeds Revenue for All of 2012SEYMOUR, Ind., May 20, 2013 (GLOBE NEWSWIRE) -- Cereplast, Inc. (OTCQB:CERP) (the "Company"), a leading manufacturer of proprietary biobased, compostable and sustainable bioplastics, today announced its financial results for the quarter ending March 31, 2013. The Company generated $949,000 in net revenues during the 2013 first quarter, exceeding revenue for all of 2012. Mr. Frederic Scheer, Chairman and Chief Executive Officer of Cereplast, stated, "The revenue generated during the first quarter of 2013, which exceeded that for all of 2012, is a critical milestone for our company and a testament to the validity of our technology and the opportunity we have in front of us. Several growth drivers will allow this trend to continue including the enforcement of legislation in Italy, along with similar legislative movements that we expect from other European countries, and the beginning of more aggressive steps from India's government. While we continue to sell our grades and teach customers about our technology, we have made a dedicated effort to manage costs and restructure our operations accordingly. We therefore made a strategic decision to relocate our corporate offices, which will yield a reduction in corporate expenses by approximately $600,000 to $800,000 per year. We are optimistic that the revenue growth we expect to experience combined with the reduction in expenses will prove financially beneficial to the future of the company and provide value to our shareholders." 2013 Operational Highlights to Date:
2013 First Quarter Financial Results: Net sales for the three months ended March 31, 2013 were approximately $0.9 million, compared to $0.1 million in the same period in 2012. Sales increased from the prior year due to growing demand for bioplastics in European markets primarily due to anticipated legislation in Italy, which banned the use of traditional plastic bags in favor of bioplastic alternatives. Cost of sales is comprised of variable costs associated with product revenues. Cost of sales for the three months ended March 31, 2013 were approximately $0.8 million, compared to $0.2 million for the same period in 2012. The increase in cost of sales was due to an increase in sales. Gross profit (loss) for the three months ended March 31, 2012 was approximately $0.1 million, compared to ($0.1) million for the same period in 2012. The increase in gross profit was attributable to an increase in sales as stated above. Research and development expenses for the three months ended March 31, 2013 were $0.1 million, compared to approximately $0.1 million for the same period in 2012. Research and development expenses have not increased as a percentage of sales due to cost containment efforts to preserve working capital. Selling, general and administrative expenses for the three months ended March 31, 2013 were $1.5 million, compared to $1.7 million for the same period in 2012. The decrease in sales, general and administrative expenses was primarily due to reduced headcount and a reduction in fixed production overhead costs classified as selling, general and administrative expense due to an extended period of abnormally low production volume. Other income and expense,net for the three months ended March 31, 2013 was a net expense of $16.5 million, as compared to a net expense of $0.5 million in the same period in 2012. The increase in expense was primarily non-cash items from the change in derivative liabilities related to the Company's warrants, short term convertible debt and preferred stock agreements. In addition, the Company recorded non-cash debt extinguishment costs of $1.6 million related to the repayment of term loan and convertible notes. Net loss for the three months ended March 31, 2013 was $18.0 million, as compared to $2.4 million in the same period in 2012. The increase in net loss was primarily driven by an increase in other income and expense related to financing transactions. As discussed above, other income and expense, net was unfavorably impacted by debt extinguishment costs and a loss on derivative liabilities totaling $14.9 million.
It is recommended that participants dial in approximately 10 minutes prior to the start of the 4:30 p.m. Eastern call. There will also be a simultaneous live webcast of the conference call which can be accessed through the following audio feed link and archived recording of the conference call available under the Investor Relations section of the company website at http://www.cereplast.com/investors/events-presentations/. About Cereplast, Inc. Cereplast, Inc. (OTCQB:CERP) designs and manufactures proprietary biobased, sustainable bioplastics which are used as substitutes for traditional plastics in all major converting processes - such as injection molding, thermoforming, blow molding and extrusions - at a pricing structure that is competitive with traditional plastics. On the cutting-edge of biobased plastic material development, Cereplast now offers resins to meet a variety of customer demands. Cereplast Compostables® resins are ideally suited for single-use applications where high biobased content and compostability are advantageous, especially in the food service industry. Cereplast Sustainables® resins combine high biobased content with the durability and endurance of traditional plastic, making them ideal for applications in industries such as automotive, consumer electronics and packaging. Learn more at www.cereplast.com. You may also visit the Cereplast social networking pages at Facebook.com/Cereplast, Twitter.com/Cereplast and Youtube.com/Cereplastinc. Safe Harbor Statement Matters discussed in this press release contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this press release, the words "anticipate," "believe," "estimate," "may," "intend," "expect" and similar expressions identify such forward-looking statements. Actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements contained herein. These forward-looking statements are based largely on the expectations of the Company and are subject to a number of risks and uncertainties. These include, but are not limited to, risks and uncertainties associated with: the impact of economic, competitive and other factors affecting the Company and its operations, markets, product, and distributor performance, the impact on the national and local economies resulting from terrorist actions, and U.S. actions subsequently; and other factors detailed in reports filed by the Company.
CONTACT: Cereplast, Inc.
Public Relations
Nicole Robertson
(310) 615-1900 x154
nrobertson@cereplast.com
Investor Relations:
Alliance Advisors, LLC
Alan Sheinwald
914-669-0222
asheinwald@allianceadvisors.net
Valter Pinto
914-669-0222 x201
valter@allianceadvisors.net
www.AllianceAdvisors.net
Source: Globe Newswire (May 20, 2013 - 4:05 PM EDT)
News by QuoteMedia |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NASDAQ DIP and RIP
Here is the best word that describes what i do here.
Intuitive;
means having the ability to understand or know something without any direct evidence or reasoning process.
I was born with it, I'm truly blessed!
Alway's searching for winners'
