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Ceapro Inc. (CV:CZO) Reports Record Third Quarter 2010 Financial and Operating Results


11/8/2010 10:01:50 AM

EDMONTON, ALBERTA--(Marketwire - November 08, 2010) - Ceapro Inc. (TSX VENTURE: CZO) ("Ceapro" or the Company") today reported financial and operating results for the three-month and nine-month periods ended September 30, 2010. Record quarterly results are announced for both Sales and Net Income.

Third Quarter 2010 highlights


--  Continued the Research Collaboration with the National Research Council
    of Canada (NRC) Institute for Nutriscience and Health located in
    Charlottetown, PEI. Results from Phase 1 of our research program are
    expected by year-end with Phase 2 to commence in January 2011. 
--  Continued to make progress with the supercritical extraction of active
    ingredients and downstream purification of avenanthramides . 
--  Initiated a research project, with financial assistance from Alberta
    Ingenuity, to commercialize a novel drying technology developed at the
    University of Alberta. Ceapro oat beta glucan will be the first active
    ingredient tested under this project. 
--  Successful first year crop multiplication in multiple regions of Canada
    for an in-licensed spearmint variety allowing product development to
    commence in early 2011. 
--  Completed the development of new formulations and testing for Ceapro's
    second generation "all natural" product line. 
--  Improved Balance Sheet with $271,000 of royalty obligations and $21,000
    of interest obligations converted to common shares . 

FINANCIAL RESULTS AS AT AND FOR THE THREE-MONTH AND NINE MONTH PERIODS ENDING September 30, 2010

--  Q3 sales of $1,708,000 compared to $1,262,000 in 2009, an increase of
    35.3%. This record level was achieved despite a strengthening Canadian
    dollar versus the US dollar. 
--  Q3 Income from operations of $360,000 compared to $131,000,000 in 2009. 
--  Q3 Net income of $115,000 compared to a net loss of $4,000 in 2009. 
--  Nine months sales of $3,881,000 compared to $3,976,000 in 2009. 
--  Nine months income from operations of $505,000 compared to $581,000 in
    2009. 
--  Nine months net income of $303,000 compared to $525,000 in 2009. 

"Results obtained in the third quarter of 2010 are very strong. We are very pleased to see a 28% increase in volume delivered strictly to the personal care sector. These record results, achieved in an economic environment that is still challenging, represent solid evidence of the successful implementation of our renewed focused strategy" said Gilles Gagnon, Acting President & CEO. " Given the visibility we have for orders for the rest of the year, it is expected that Ceapro will experience its best ever year in 2010 " he added.

"The reengagement of an aggressive R&D strategy in 2010 has been made possible through the support of our partners who have recognized the quality of Ceapro's proposals, technology, and ability to commercialize technology into successful product offerings. The investments we are currently making in R&D are the basis for new products and growth in 2011 and beyond. We believe we are at the beginning of a very exciting time for Ceapro." said David Fielder, Chief Scientific Officer.

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), Comprehensive Income (Loss)   
and Deficit                                                                 
Unaudited                                                                   
                          Nine Months Ended Sept      Quarters Ended Sept  
                                              30                       30  
                               2010         2009         2010        2009  
------------------------- ---------  -----------  -----------   ---------  

Revenue                                                                    

  Sales                  $3,881,414   $3,975,560   $1,708,071  $1,261,634  
  Cost of goods sold      2,207,071    1,847,217      957,025     748,404  
------------------------- ----------------------  -----------------------  
  Gross margin            1,674,343    2,128,343      751,046     513,230  
------------------------- ----------------------  -----------------------  


Expenses                                                                   
  General and                                                              
   administration           939,594    1,109,675      325,996     302,159  
  Royalties                  38,934      235,034       12,977      20,576  
  Sales and marketing        49,875      112,125       10,757      27,062  
  Amortization               25,701       32,213        8,810      12,404  
  Write off of property                                                    
   plant and equipment       10,490            -            -           -  
  Interest on convertible                                                  
   debentures                31,197            -       10,100           -  
  Accretion on                                                             
   convertible debentures    20,241            -        5,241           -  
  Interest on long-term                                                    
   debt                      53,054       58,436       17,223      19,642  
------------------------- ----------------------  -----------------------  

                          1,169,086    1,547,483      391,104     381,843  
------------------------- ----------------------  -----------------------  

Income from operations      505,257      580,860      359,942     131,387  
------------------------- ----------------------  -----------------------  

Other income (expenses)                                                    
  Research and product                                                     
   development             (512,978)    (391,473)    (230,880)   (110,278) 
  Other income (expenses)    (4,124)     (50,551)     (14,500)    (24,681) 
------------------------- ----------------------  -----------------------  

                           (517,102)    (442,024)    (245,380)   (134,959) 
------------------------- ----------------------  -----------------------  
Comprehensive income                                                       
 (loss) before SGGF legal                                                  
 fees recovery (expense)                                                   
 and income taxes           (11,845)     138,836      114,562      (3,572) 
SGGF legal fees recovery                                                   
 (expense)                  314,983      426,300            -           -  
Income taxes                                                               
  Current                    87,000      275,000       28,000      34,000  
  Reduction as a result                                                    
   of applying non-                                                        
   capital lossescarried                                                   
   forward against the                                                     
   current period's                                                        
   taxable income           (87,000)    (275,000)     (28,000)    (34,000) 
------------------------- ----------------------  -----------------------  

NET INCOME (LOSS) AND                                                      
 COMPREHENSIVE                                                             
INCOME (LOSS) FOR THE                                                      
 PERIOD                     303,138      565,136      114,562      (3,572) 

Deficit, beginning of     (7,390,89    (7,321,54    (7,202,31   (6,752,83  
 period                           0)           1)           4)          3) 
------------------------- ---------  -----------  -----------   ---------  
                          (7,087,75    (6,756,40    (7,087,75   (6,756,40  
Deficit, end of period   $        2)  $        5)  $        2) $        5) 
-------------------------------------------------------------------------  
-------------------------------------------------------------------------  

Net income (loss) per                                                      
 share:                                                                    

  Basic                  $     0.01   $     0.01   $        -  $        -  
------------------------------------------------  -----------------------  
------------------------------------------------  -----------------------  

  Diluted                $     0.01   $     0.01   $        -  $        -  
------------------------------------------------  -----------------------  
------------------------------------------------  -----------------------  
 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:
Ceapro Inc.
Branko Jankovic
Chief Financial Officer
T (Edmonton): 780-917-8376
bjankovic@ceapro.com


Read at BioSpace.com


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