Cereplast Reports 2012 Year End Financial Results

Cereplast Reports 2012 Year End Financial Results

EL SEGUNDO, Calif., April 16, 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 year ending December 31, 2012.

Mr. Frederic Scheer, Chairman and Chief Executive Officer of Cereplast,
stated, "2012 was a year of transition for Cereplast. Amidst the challenges we
faced during the year, we improved the positioning of the Company for 2013.
Despite the 2012 financial pressures, our focus has been on putting the
adversity we have faced behind us as we move toward a brighter future. As we
execute during this transitionary period, we have been intently focused on
attracting new customers, further developing relationships with existing
customers, with an emphasis on those who are capable of making large orders,
and bolstering our intellectual property portfolio, all of which are essential
to our success going forward. The momentum we are building is a testament to
the persistence our team has shown, the validity of our technology and a
foreshadowing of how the industry is maturing."

Mr. Scheer continued, "The recent legislation in Italy requiring merchants to
discontinue the use of conventional single-use plastic bags in favor of
bioplastic bags is a near-term driving factor for revenue going forward. As a
result of this monumental legislation, we conservatively estimate that the
total addressable market in Italy for bioplastic blown film resin exceeds $500
million annually. Cereplast is poised to capture approximately 10% or $50
million of that with our Cereplast Compostables® blown film resins per year.
Based on certain provisions, we are well prepared to support this order size.
A close second and third target market is India and the United States. We
continue to build our relationships through feet on the ground in India and
have received an increased amount of interest in our resins in the United
States. All three present very large market opportunities for us."

Operational Highlights:

  oRevenue for 2012 totaled approximately $900,000.
  oThe Italian plastic bag Application Decree was formally published and
    sanctions will be enforced as of May 27, 2013.
  oTotal addressable market in Italy is estimated to exceed $500 million.
  oCereplast's total addressable market in Italy is estimated to exceed $50
  oManufacturing capacity at the Seymour, Indiana plant is currently 3,000
    tons/month, which based on $4,500/ton is capable of producing in excess of
    $10 million per month at full capacity.
  oCereplast has begun to sell its first Cereplast Hybrid Resins® application
    in India.
  oCereplast received several purchase orders from existing clients in India.
    Management is encouraged by the progress made in India and anticipates
    their investments in this new market will translate into additional
    purchase orders and future revenue growth in 2013.
  oIn the United States, Cereplast received several orders for compostable
    resins that will be used for food service applications. Multiple large
    food chains have started to embrace the use of compostable material for
    food service ware items including straws, cups and cutlery, for which
    Cereplast's resins are in demand. Cereplast has fulfilled these orders and
    all payments have been received.

2012 Year End Financial Results:

Net sales for the year ended December 31, 2012 were approximately $0.9
million, compared to $20.3 million in the same period in 2011. The decrease in
sales was due to transitioning significant resources and efforts toward
recovery of past due accounts receivables from customers and minimizing any
additional exposure to our accounts receivable credit risk. Our current period
sales were primarily prepaid shipments of sample materials and nominal
shipments to established existing customers with low risk credit limits.

Cost of sales is comprised of both fixed and variable costs, including
materials and supplies, labor, facilities and other overhead costs associated
with our product revenues. Cost of sales for the year ended December 31, 2012
were approximately $1.0 million, compared to $18.2 million for the same period
in 2011. The decline in cost of sales is due to our lower variable
manufacturing costs from our reduced sales volumes and the reclassification of
fixed production overhead from cost of sales to selling, general and
administrative expense due to extended period of abnormally low production
volume experienced in 2012.

Gross profit (loss) for the year ended December 31, 2012 was approximately
($0.1) million, compared to $2.0 million for the same period in 2011. Our
decline in gross profit was attributable to our decline in sales as stated

Research and development expenses for the year ended December 31, 2012 were
$0.5 million, compared to approximately $1.0 million for the same period in
2011. Our decrease in research and development expenses was primarily
attributable to lower outside services costs related to our current projects.

Selling, general and administrative expenses for the year ended December 31,
2012 were $18.9 million, compared to $13.4 million for the same period in
2011. Our increase in sales, general and administrative expenses was primarily
due to bad debt expense of $12.3 million in 2012, offset by reduced headcount
and variable sales and marketing expenses due to lower sales volume in the
current year.

Other income and expense, net for the year ended December 31, 2012 was ($10.7)
million, as compared to ($1.6) million in the same period in 2011. The
increase was primarily related to additional interest expense related to the
issuance of our convertible debentures in May 2011, the impact from our
Forbearance and Exchange Agreement with certain holders of our convertible
debentures and the change in our derivative liability related to our warrants,
short term convertible debt and preferred stock agreements.

On the balance sheet, the Company had approximately $183,000 in cash and $6.9
million in inventory. Current assets and total assets were $7.5 million and
$16.2 million, respectively. Current liabilities and total liabilities were
$15.1 million and $26.2 million, respectively.

Conference Call Details:
Date:                Tuesday, April 16^th
Time:                4:30 p.m. Eastern
Participant Dial-In: (480) 629-9712
Live Webcast:        http://www.cereplast.com/investors/events-presentations/

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

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.

(in thousands, except shares data)
                                          December 31, 2012 December 31, 2011
Current Assets                                              
Cash                                       $183            $3,940
Accounts Receivable, Net                  149              14,744
Inventory, Net                             6,941            4,406
Prepaid Expenses and Other Current Assets  227              966
Total Current Assets                       7,500            24,056
Property and Equipment                                      
Property and Equipment                     11,601           13,752
Accumulated Depreciation and Amortization  (4,004)          (3,151)
Property and Equipment, Net                7,597            10,601
Other Assets                                                
Restricted Cash                            43               43
Deferred Loan Costs                        750              1,321
Intangible Assets, Net                     245              183
Deposits                                   47               47
Total Other Assets                         1,085            1,594
Total Assets                               $16,182         $36,251
Current Liabilities                                         
Accounts Payable                           $803            $1,813
Accrued Expenses                           3,663            2,760
Capital Leases, Current Portion            85               73
Loan Payable, Current Portion             5,978            1,855
Convertible Subordinated Notes, Current    891              --
Derivative Liability                       3,189            --
Preferred Stock, $0.001 par value;                          
5,000,0000 shares authorized; 92 and 0                      
sharesissued and
outstanding at December 31, 2012 and                        
December 31, 2011,
respectively                               500              --
Total Current Liabilities                  15,109           6,501
Long-Term Liabilities                                       
Loan Payable                               923              7,307
Convertible Subordinated Notes             10,000           12,500
Capital Leases, Long-Term                  173              245
Total Long-Term Liabilities                11,096           20,052
Total Liabilities                          26,205           26,553
Shareholders' Equity                                        
Common Stock, $0.001 par value;                             
495,000,000 shares authorized; 63,463,659                   
and 18,933,139
shares issued and outstanding at December                   
31, 2012 and
December 31, 2011, respectively            63               19
Additional Paid in Capital                 76,919           66,524
Accumulated Deficit                        (87,097)         (56,935)
Accumulated Other Comprehensive Income     88               86
Total Shareholders' Equity                 (10,027)         9,694
Noncontrolling Interests                   4                4
Total Equity                              (10,023)         9,698
Total Liabilities and Shareholders'        $16,182         $36,251

(unaudited, in thousands, except per share data)
                                          Year ended
                                          December 31, 2012 December 31, 2011
GROSS SALES                                $911            $20,893
Sales Discounts, Returns and Allowances    (17)             (637)
NET SALES                                  894              20,256
COST OF SALES                              975              18,223
GROSS PROFIT                               (81)             2,033
Research and Development                   471              1,048
Selling, General and Administrative        18,877           13,397
OTHER EXPENSES                                              
Debt Extinguishment Costs                  (954)            --
Loss on Derivative Liability               (1,800)          --
Interest and Other Income                  18               --
Interest Expense, Net                      (7,997)          (1,590)
TOTAL OTHER EXPENSE, NET                   (10,733)         (1,590)
Provision for Income Taxes                 --               --
NET LOSS                                   $(30,162)       $(14,002)
BASIC AND DILUTED LOSS PER SHARE           $(1.16)         $(0.88)
WEIGHTED AVERAGE COMMON SHARES                              
OUTSTANDING, BASIC AND DILUTED             25,975,227       15,989,397

(unaudited, in thousands, except shares data)
                                          Year Ended
                                          December 31, 2012 December 31, 2011
Net Loss                                   $(30,162)       $(14,002)
Adjustment to Reconcile Net Loss to Net                     
Cash Used in Operating Activities
Depreciation and Amortization              874              944
Reserve for Inventory Obsolescence         (31)             229
Allowance for Doubtful Accounts            12,279           5,338
Common Stock Issued for Services, Salaries 185              912
and Wages
Amortization of Loan Discount              5,698            76
Impairment of Intangible Assets            --               61
Extinguishment of Convertible Debt         954              --
Loss on Derivative Liability               1,800            --
Changes in Operating Assets and                             
Accounts Receivable                        530              (14,797)
Deferred Loan Costs                        710              361
Inventory                                  671              (3,243)
Deposits                                   --               (29)
Prepaid Expenses and Other Current Assets  319              (896)
Accounts Payable                           (219)            (1,246)
Accrued Expenses                           939              1,530
NET CASH USED IN OPERATING ACTIVITIES      (5,453)          (24,762)
Purchase of Property and Equipment, and    (182)            (7,918)
Proceeds from Sale of Equipment            15               --
NET CASH USED IN INVESTING ACTIVITIES      (167)            (7,918)
Payments on Capital Leases                 (60)             (47)
Proceeds from Capital Leases               --               356
Noncontrolling Interest Activities         --               4
Payments made on Notes Payable             (366)            (145)
Proceeds from Loan Payable, Net of Loan    400              6,962
Proceeds from Convertible Subordinated     1,050            11,225
Notes, Net of Issuance Costs
Proceeds from Issuance of Common Stock and 400              15,860
Subscriptions, Net of Issuance Costs
Proceeds from Issuance of Preferred Stock, 437              --
Net of Issuance Costs
FOREIGN CURRENCY TRANSLATION               2                14
NET INCREASE IN CASH                       (3,757)          1,549
Cash Paid During the Year For:                              
Interest                                   $700            $1,025
Income Taxes                               $--            $--

CONTACT: Cereplast, Inc.
         Public Relations
         Nicole Robertson
         (310) 615-1900 x154
         Investor Relations:
         Alliance Advisors, LLC
         Alan Sheinwald
         Valter Pinto
         914-669-0222 x201

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