CRAiLAR Technologies, Inc. Reports First Quarter 2013 Results

First Quarter, 2013 Highlights: 

    --  Adjusted EBITDA for Q1 was a loss $1.8 million.
    --  Commenced CRAiLAR production in Pamplico, S.C.
    --  Completed $4.4 million (net) financing

VICTORIA, BC and PORTLAND, OR, April 18, 2013 /CNW/ - CRAiLAR Technologies 
Inc. ("CRAiLAR" or the "Company") (TSXV: CL) (OTCBB: CRLRF), which produces 
and markets CRAiLAR® Flax fiber The Friendliest Fiber On The Planet™, today 
reported a net loss for the first quarter ended March 30, 2013 of $3.4 million 
or $0.08 per share compared with a net loss of $2.8 million or $0.07 per share 
for Q1 2012. This quarter's loss included a $0.4 million non-cash impairment 
loss. The Company's Adjusted EBITDA for the quarter was a loss of $1.8 million 
unchanged from Q-1 2012. For further information regarding Adjusted EBITDA, 
including a reconciliation of Adjusted EBITDA to net loss, see "Non-GAAP 
Financial Measures" below.

"Q1 2013 is an important milestone for us as a company, in that we started 
production of our first full scale CRAiLAR production facility" stated Kenneth 
C. Barker, Chief Executive Officer. "Fiber processed at our Pamplico facility 
was sent to our third party enzyme processor for CRAiLAR processing, and was 
still in enzyme processing at the end of the quarter. We therefore are looking 
forward to the current quarter as the first quarter in which we will generate 
CRAiLAR revenue. In addition, the harvest for flax begins in May and runs 
through June which will provide additional feedstock for future production."

Cash and cash equivalents and investments at March 30, 2013 were $2.9 million 
unchanged from December 31, 2012. Changes in cash equivalents were the result 
of $2.8 million of cash used in operations and $1.9 million of cash invested 
in property and equipment. This was partially offset by $4.4 million of cash 
from financing activities through the issuance of $4.7 million of convertible 
debentures (net $4.2 million after expenses) and $0.2 million of common stock 
and exchange gains of $0.3 million.

Non-GAAP Financial Measures

Regulation G, "Conditions for Use of Non-GAAP Financial Measures," and other 
provisions of the Securities Exchange Act of 1934, as amended, define and 
prescribe the conditions for use of certain non-GAAP financial information. We 
provide "Adjusted EBITDA," which is a non-GAAP financial measure. Adjusted 
EBITDA consists of net income before (a) interest income (expense), (b) income 
tax provision (benefit), (c) amortization of intangibles and impairment loss, 
(d) depreciation and amortization, (e) share-based compensation expense, and 
(f) non-cash write-downs of equipment and inventory.

The Company believes that this non-GAAP financial measure provides important 
supplemental information to management and investors. This non-GAAP financial 
measure reflects an additional way of viewing aspects of the Company's 
operations that, when viewed with the GAAP results and the accompanying 
reconciliation to corresponding GAAP financial measures, provides a more 
complete understanding of factors and trends affecting the Company's business 
and results of operations.

Management uses Adjusted EBITDA as a measure of the Company's operating 
performance because it assists in comparing the Company's operating 
performance on a consistent basis by removing the impact of items not directly 
resulting from core operations. Internally, this non-GAAP measure is also used 
by management for planning purposes, including the preparation of internal 
budgets; for allocating resources to enhance financial performance; for 
evaluating the effectiveness of operational strategies; and for evaluating the 
Company's capacity to fund capital expenditures and expand its business. The 
Company also believes that analysts and investors use Adjusted EBITDA as a 
supplemental measure to evaluate the overall operating performance of 
developemental companies. Additionally, lenders or potential lenders use 
Adjusted EBITDA to evaluate the Company's ability to repay loans.

This non-GAAP financial measure is used in addition to and in conjunction with 
results presented in accordance with GAAP and should not be relied upon to the 
exclusion of GAAP financial measures. Management strongly encourages investors 
to review the Company's consolidated financial statements in their entirety 
and to not rely on any single financial measure. Because non-GAAP financial 
measures are not standardized, it may not be possible to compare these 
financial measures with other companies' non-GAAP financial measures having 
the same or similar names. In addition, the Company expects to continue to 
incur expenses similar to the non-GAAP adjustments described above, and 
exclusion of these items from the Company's non-GAAP measures should not be 
construed as an inference that these costs are unusual, infrequent or 

The table below reconciles net loss to Adjusted EBITDA for the periods 
presented (in thousands):
                                  Thirteen Weeks Ended
                                        March 30
                                  2013       2012

Net loss                       $(3,378)    $(2,789)

Interest expense, net               312           -

Income tax (benefit) provision        -           -

Depreciation and amortization       294          50

EBITDA                          (2,772)     (2,739)

Share-based compensation            555         929

Impairment loss                     396           -

Adjusted EBITDA                $(1,821)    $(1,810)

Conference Call

A conference call to discuss the Company's first quarter ended March 30, 2013 
results, as well as an update on the Company's financing activities, 
production schedule and ramp up, partner activities, and agricultural 
activities, is scheduled to begin at 1:30 pm Pacific Daylight Time (4:30 pm 
Eastern Daylight Time) on Thursday, April 18, 2013. Participants may access 
the call by dialing 888-329-8862 (North America) or 719-325-2495 
(international), 5 to 10 minutes before the call, and use conference ID number 
3645532. In addition, the call will be broadcast live over the Internet and 
accessible through the investor section of the CRAiLAR website: For those unable to participate in the live 
call, an audio replay will be available until midnight on May 2, 2013 by 
dialing 877-870-5176 or 858-384-5517 for international callers, and entering 
pin number 3645532. A transcript will be available approximately 24 hours 
after the call on CRAiLAR's investor page.

About CRAiLAR Technologies Inc.

CRAiLAR(R) Technologies Inc. offers cost-effective and environmentally 
sustainable natural fiber in the form of flax, hemp and other bast fibers for 
use in textile, industrial, energy, medical and composite material 
applications. Produced using a fraction of water and chemical inputs compared 
with other natural fibers, CRAiLAR Flax is the newest natural fiber 
introduction to the market in decades. The Company supplies its CRAiLAR Flax 
to HanesBrands, Georgia-Pacific, Brilliant Global Knitwear, Tuscarora Yarns, 
Target Corp. and Kowa Company for commercial use, and to Levi Strauss & Co., 
Cintas, Carhartt, Ashland, PVH Corp., Cotswold Industries, Cone Mills and 
Lenzing for evaluation and development. The Company was founded in 1998 as a 
provider of environmentally friendly, socially responsible clothing. For more 
information, visit

Neither the TSX Venture Exchange Inc. 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.

Safe Harbor Statement

This news release includes certain statements that may be deemed 
"forward-looking statements". All statements in this news release, other than 
statements of historical facts, are forward-looking statements. 
Forward-looking statements or information are subject to a variety of risks 
and uncertainties which could cause actual events or results to differ 
materially from those reflected in the forward-looking statements or 
information and including, without limitation, risks and uncertainties 
relating to: any market interruptions that may delay the trading of the 
Company's shares, technological and operational challenges, needs for 
additional capital, changes in consumer preferences, market acceptance and 
technological changes, dependence on manufacturing and material supplies 
providers, international operations, competition, regulatory restrictions and 
the loss of key employees. In addition, the Company's business and operations 
are subject to the risks set forth in the Company's most recent Form 10-K, 
Form 10-Q and other SEC filings which are available through EDGAR at These are among the primary risks we foresee at the present time. 
The Company assumes no obligation to update the forward-looking statements.
                                  Crailar Technologies Inc.
                                 Consolidated Balance Sheet
               (in thousands, except share and per share amounts)
                                               March 30,   December 31,
                                                  2013           2012


Current assets:                                                        
    Cash and cash equivalents                       $2,947         $2,877
    Accounts receivable                                 54             72
    Inventory                                        2,614          2,905
    Prepaid expenses and other                         218            107
    Total current assets                           5,834          5,961

Deferred Debt Issuance Costs                       1,421          1,024

Property and Equipment, net                       14,864         13,249

Intangible Assets, net                                83             95
    Total assets                                 $22,202        $20,329

LIABILITIES AND STOCKHOLDER'S EQUITY                                   

Current liabilities:                                                   
    Accounts payable                                 1,660          1,406
    Accrued liabilities                                745          1,481
    Derivative Liability                               414            488
    Total current liabilities                      2,819          3,375

Long Term Debt                                    14,765         10,051
    Total liabilities                             17,584         13,426

Stockholders' equity:                                                  

Common stock, authorized: 100,000,000 common
  shares without par value                                              
Issued and outstanding : 44,435,198 common
  shares                                          32,928         32,617 

    (March 31, 2012 - 42,442,804)                                        

Subscription receivable                             (64)           (64)

Additional Paid-in Capital                         7,498          7,061

Accumulated Other Comprehensive Loss               (113)          (459)

Deficit                                         (11,485)       (11,731)

Deficit accumulated in the development stage    (24,146)       (20,522)
    Total stockholders' equity                     4,618          6,902
     Total liabilities and stockholders'
     equity                                      $22,202        $20,329

                                 Crailar Technologies Inc.
                              Consolidated Income Statement
                (in thousands, except share and per share data)
                                                    Thirteen Weeks Ended
                                                         March 30
                                                      2013       2012

Operating expenses:                                                  
            Advertising and promotion                 $144        $60
            Amortization and depreciation               52         50
            Consulting and contract labour             204        216
            General and administrative                 277        186
            Professional fees                          253        138
            Production costs                           731          -
            Research and development                    56        138
            Salaries and benefits                      878      1,108

Loss from operations                                 2,596      1,897

Other (income) expense:                                              
            Impairment of assets                       396          -
            Interest                                   312          -
            Fair value adjustment to derivative         74        892
              Total other expense, net                 782        892

Net loss                                          $(3,378)   $(2,789)

EPS - basic and diluted                            $(0.08)    $(0.07)

Shares used in computation of basic and diluted 43,029,135 42,028,271
net loss per share
                  Crailar Technologies Inc.                 
         Consolidated Statement of Cash Flows               
                          (in thousands)                    
                                                  Thirteen Weeks Ended
                                                           March 30
                                                      2013        2012

Operating activities                                        

Net loss                                          $(3,378)    $(2,789)

Adjustments to reconcile net loss to net cash               
from operating activities              
    Amortization and depreciation                       294          50
    Interest                                             86           -
    Rent                                                 37           -
    Stock based compensation                            555         744
    Impairment of assets                                396           -
    Fair value adjustment of derivative liability      (74)         892

Changes in working capital assets and liabilities                     
    Decrease in accounts receivable                      19          90
    (Increase)  in inventory                          (106)       (165)
    (Increase) decrease in prepaid expenses           (112)           8
    Increase in accounts payable                        254         211
    (Decrease) in  accrued liabilities                (772)       (345)

Net cash used in operating activities of        (2,802)     (1,303) 
continuing operations 
Net cash flows used in operating activities     (2,802)     (1,303) 


Investing activities                                                  
    Purchase of property and equipment              (1,895)       (756)
    Acquisition of intangible assets                    (2)        (15)

Net cash flows used in investing activities        (1,897)       (772)

Financing activities                                                   

    Issuance of capital stock and warrants              193         842
    Convertible Debenture                             4,713           -

Deferred issuance costs for convertible           (482)           - 
Net cash flows from financing activities             4,424         842 
Effect of exchange rate changes on cash and cash
equivalents                                            346          58 
Increase (decrease) in cash and cash equivalents        70     (1,175) 


Cash and cash equivalents, beginning                 2,877       6,341

Cash and cash equivalents, ending                   $2,947      $5,166

Supplemental disclosures of cash flow                       
    Cash paid for interest                              277           -
    Capital stock issued as share issue costs             -            -

Investor Contact:Mark McPartland, MZ Group, (646) 

Corporate Officer:Ted Sanders, CFO, (503) 387-3941,

Media Contact,Ryan Leverenz, Director, Corporate Communications, (415) 

SOURCE: Crailar Technologies Inc.

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CO: Crailar Technologies Inc.
ST: Oregon

-0- Apr/18/2013 20:05 GMT

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