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
