EDMONTON, ALBERTA--(Marketwire - April 28, 2009) - Ceapro Inc. (TSX VENTURE: CZO) ("Ceapro" or the Company") today reported a 76% increase in sales for the first quarter ended March 31, 2009. Revenues reached a record $1,502,000 compared with $852,000 in the same period last year. Gross margin for the quarter was 62% compared to 34% in the same period last year. Net income for the quarter was $103,000, an improvement of $712,000 when compared with a loss of ($609,000) in the same period last year.
"We indicated at last year's Annual General Meeting that we expected to show a quarterly profit by the second quarter of 2009. Today I am pleased to announce that we have met that goal one quarter ahead of our forecast", stated Gilles Gagnon, Acting President and CEO. "These impressive results are a testimony to hard work by our employees and the quality of Ceapro's products as recognized by our valued customers. We are maintaining our forecast for an expected 50% increase in revenues in 2009 compared to 2008, to reach between $6 and $7 million," he added.
Highlights for First Quarter Ended March 31, 2009
- Successful implementation of operational efficiencies, increased capacity and corresponding margin improvement
- Settlement of Saskatchewan Government Growth Fund litigation and payment of first settlement instalment of four quarterly instalments
- Out license of CeaProve® to IR2Dx for the medical market and the implementation of a 500 patient clinical trial. Subsequent to the end of the quarter, CeaProve® kits were shipped to commence the first phase of the trial in Germany.
- Introduction of Ceapro's newest commercial product, hydrolyzed oat peptides, into a major personal care line
Future Plans
Ceapro will develop new formulations of its active ingredients for the nutraceutical and pharmaceutical sectors and efforts to recapitalize the balance sheet will be made - actions which should be beneficial in order to increase investors' awareness and confidence. Ceapro will also continue to assess new business opportunities as well as to develop new alliances. We expect partnerships and alliances to play a major role in reaching Ceapro's full potential in 2009.
Members of the Board would like to thank all Ceapro employees for their dedication in turning the company around and the support of Ceapro investors during a difficult period. Ceapro has many high quality products on the market and we have now demonstrated that we can be a profitable producer. We are now poised to build a solid company. While near-term investments will be required, we remain scientifically and financially focused on products presenting the highest upside potential given the risk/reward profile.
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) and Deficit
Unaudited
Three Months and Quarter Ended March 31
2009 2008
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Revenue
Sales $1,501,909 $851,967
Cost of goods sold 572,043 564,554
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Gross margin 929,866 287,413
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Expenses
General and administration 390,322 408,113
Royalties 138,027 80,375
Sales and marketing 60,300 137,762
Amortization 88,294 77,129
Interest on long-term debt 19,914 21,456
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696,857 724,835
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Income (Loss) income from operations 233,009 (437,422)
Other income (expenses)
Research and product development (135,572) (202,160)
Bioenergy feasibility study - (18,236)
Other income 5,339 49,188
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(130,233) (171,208)
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Comprehensive income(loss) before
income taxes 102,776 (608,630)
Income Taxes
Current 57,000 -
Reduction as a result of applying
non-capital losses carried forward
against the current period's
taxable income (57,000) -
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NET INCOME (LOSS) AND COMPREHENSIVE
INCOME (LOSS) FOR THE PERIOD 102,776 (608,630)
Deficit, beginning of period (7,321,541) (3,722,072)
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Deficit, end of period $(7,218,765) $(4,330,702)
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Net loss per share:
Basic $0.00 $(0.01)
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Diluted $0.00 $(0.01)
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Shares o/s 47,050,063 47,050,063
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
Vice President and CFO
(Edmonton): 780-917-8376
bjankovic@ceapro.com
Sun International Communications
Nicole Blanchard, B.Sc., B.Comm.
Managing Partner
(Montreal): 450-973-6600
nicole.blanchard@isuncomm.com
