Cereplast Reports Financial Results for the First Six Months of 2013

Cereplast Reports Financial Results for the First Six Months of 2013

SEYMOUR, Ind., Aug. 14, 2013 (GLOBE NEWSWIRE) -- Cereplast, Inc. (OTCQB:CERP)
(the "Company"), a leading manufacturer of proprietary biobased, compostable
and sustainable bioplastics, today announced $1.7 million in net revenues
during the first half of 2013 compared to $305,000 for the same period the
prior year and $911,000 for all of 2012.

Cereplast Chairman and Chief Executive Officer, Mr. Frederic Scheer, stated,
"On a comparable basis to 2012, we are pleased with the revenue growth we have
enjoyed thus far in 2013. The majority of this growth is from Italy, and we
expect this trend to accelerate as legislation is officially passed. In
addition to our focus in Italy, we have taken aggressive steps to strengthen
our sales team in India and North America and have already received orders.
Both geographic areas have the potential to provide significant sales
opportunities for the Company. We anticipate comparable growth to occur during
the remainder of the year and have received several orders that are expected
to begin shipping during the fourth quarter."

2013 Operational Highlights to Date:

  oAs of June 1, 2013, the Company successfully completed its corporate
    restructuring by relocating its corporate headquarters from California to
    its production facility in Indiana, as well as by relocating its European
    headquarters from Germany to its offices in Italy. The closure of the
    offices in California and Germany is expected to reduce annual operating
    expenses by $600,000 to $800,000.
  oThe Company received multiple purchase orders for its Cereplast
    Compostables® blown film resins totaling approximately $200,000. These
    resins will be used for the manufacture of single-use plastic bags for use
    at about 45 supermarkets located in the Veneto and Trentino Regions in
    Italy. The resin is being produced this month at the Company's
    manufacturing facility in Indiana.
  oCereplast strengthened its North American sales team through the
    appointment Mr. Reddy Tudi as Vice President of Business Development and
    Mr. Kevin J. Fina as Regional Sales Manager. Together, Mr. Tudi and Mr.
    Fina are working on approximately 30 projects in North America for
    Cereplast Compostables® blown film and blow molding resins, as well as
    Cereplast Sustainables® resins for injection molding applications. The
    potential volume of these projects is $10 million per year.
  oThe Company recently received and shipped orders to both new and existing
    customers in India, one of which is a well-known polymer solution provider
    that has been in business for over ten years in Hyderbad, India.

2013 First Six Months Financial Results:

Net sales for the six months ended June 30, 2013 were approximately $1.7
million, compared to $0.3 million in the same period in 2012. Sales increased
from the prior year due to growing demand in the European markets primarily
due to pending legislation in Italy that will ban traditional plastic bags.

Cost of sales is comprised of variable costs associated with product revenues.
Cost of sales for the six months ended June 30, 2013 was approximately $1.5
million, compared to $0.4 million for the same period in 2012. The increase in
cost of sales is due to an increase in sales.

Gross profit (loss) for the six months ended June 30, 2013 was approximately
$0.2 million, compared to ($0.1) million for the same period in 2012. The
increase in gross profit was attributable to an increase in sales as stated
above.

Research and development expenses for the six months ended June 30, 2013 were
$0.2 million, compared to approximately $0.3 million for the same period in
2012. Research and development expenses have slightly decreased due to cost
containment efforts to preserve working capital.

Selling, general and administrative expenses for the six months ended June 30,
2013 were $2.7 million, compared to $3.7 million for the same period in 2012.
The decrease in sales, general and administrative expenses was primarily due
to reduced headcount and a reduction in fixed production overhead costs
classified as selling, general and administrative expense due to an extended
period of abnormally low production volume.

Other income and expense, net for the six months ended June 30, 2013 was
primarily non-cash net expenses of $24.1 million, as compared to a net expense
of $2.3 million in the same period in 2012. The increase in other income and
expense was primarily a result of the change in the derivative liability
related to warrants, short-term convertible debt and preferred stock
agreements. In addition, the Company recorded $1.8 million in debt
extinguishment costs related to the exchange of certain term loan and
convertible notes.

Net loss for the six months ended June 30, 2013 was $26.8 million, as compared
to $6.3 million in the same period in 2012.

2013 Second Quarter Financial Results:

Net sales for the three months ended June 30, 2013 were approximately $0.7
million, compared to $0.2 million in the same period in 2012.

Cost of sales is comprised of variable costs associated with product revenues.
Cost of sales for the three months ended June 30, 2013 was approximately $0.7
million, compared to $0.2 million for the same period in 2012.

Gross profit (loss) for the three months ended June 30, 2013 was approximately
$0.1 million, compared to $7,000 for the same period in 2012.

Research and development expenses for the three months ended June 30, 2013
were $0.1 million, compared to approximately $0.1 million for the same period
in 2012. Research and development expenses have not increased due to the
Company's cost containment effort to preserve working capital.

Selling, general and administrative expenses for the three months ended June
30, 2013 were $1.2 million, compared to $2.0 million for the same period in
2012. The decrease in sales, general and administrative expenses was primarily
due to reduced headcount and a reduction in fixed production overhead costs
classified as selling, general and administrative expense due to an extended
period of abnormally low production volume.

Other income and expense, net for the three months ended June 30, 2013 was
primarily non-cash net expenses of $7.5 million, as compared to a net expense
of $1.8 million in the same period in 2012. The increase in expense was
primarily a result of the change in derivative liability related to the
Company's warrants, short-term convertible debt and preferred stock
agreements.

Net loss for the three months ended June 30, 2013 was $8.7 million, as
compared to $3.9 million in the same period in 2012.

Conference Call       
Details:
Date:                 Wednesday, August 14^th
Time:                 4:30 p.m. Eastern
Participant Dial-In:  (480) 629-9666
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
http://www.cereplast.com/investors/events-presentations/.

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.

CEREPLAST, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except shares data)
                                                                
                                                   June 30, 2013 December 31,
                                                                  2012
                                                   (Unaudited)
ASSETS                                                           
Current Assets                                                   
Cash                                                $223        $183
Accounts Receivable, Net                            1,166         149
Inventory, Net                                      5,444         6,941
Prepaid Expenses and Other Current Assets           178          227
Total Current Assets                                7,011         7,500
                                                                
Property and Equipment                                           
Property and Equipment                              11,535        11,601
Accumulated Depreciation and Amortization           (4,433)       (4,004)
Property and Equipment, Net                         7,102         7,597
                                                                
Other Assets                                                     
Restricted Cash                                     --          43
Deferred Loan Costs                                 484          750
Intangible Assets, Net                              241           245
Deposits                                            48            47
Total Other Assets                                  773           1,085
                                                                
Total Assets                                        $14,886     $16,182
                                                                
LIABILITIES AND SHAREHOLDERS' DEFICIT                            
Current Liabilities                                              
Accounts Payable                                    $968        $803
Accrued Expenses                                    3,406         3,663
Capital Leases, Current Portion                     97            85
Loan Payable, Current Portion                       5,762         5,978
Convertible Subordinated Notes, Current Portion     819           891
Derivative Liability                                13,739        3,189
Preferred Stock, $0.001 par value; 5,000,000 shares
authorized; 294 and 92 sharesissued and            1,213        500
outstanding at June 30, 2013 and December 31, 2012,
respectively
Total Current Liabilities                           26,004        15,109
                                                                
Long-Term Liabilities                                            
Loan Payable                                        452          923
Convertible Subordinated Notes                      8,176        10,000
Capital Leases, Long-Term                           131          173
Total Long-Term Liabilities                         8,759         11,096
Total Liabilities                                   34,763        26,205
                                                                
Shareholders' Deficit                                            
Common Stock, $0.001 par value; 2,000,000,000
shares authorized;622,359,545 and 63,463,659       622          63
shares issued and outstanding at June 30, 2013 and
December 31, 2012, respectively
Common Stock Subscribed, not issued                 586          --
Additional Paid in Capital                          92,738       76,919
Accumulated Deficit                                 (113,865)    (87,097)
Accumulated Other Comprehensive Income              38           88
                                                   (19,881)     (10,027)
Noncontrolling Interests                            4            4
Total Shareholders' Deficit                         (19,877)      (10,023)
Total Liabilities and Shareholders' Deficit         $14,886     $16,182

                                                             
CEREPLAST, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS AND OTHER COMPREHENSIVE INCOME
(unaudited, in thousands, except per share data)
                                                             
                      Three Months Ended        Six Months Ended
                      June 30, 2013 June 30, 2012 June 30, 2013 June 30, 2012
                                                             
Gross Product Sales    $747        $191        $1,697      $305
Sales Discounts,       --          (1)          (1)          (12)
Returns and Allowances
Net Sales              747          190          1,696        293
                                                             
Cost of Goods Sold     654          197          1,498        387
Gross Profit (Loss)    93           (7)          198          (94)
                                                             
Operating Expenses:                                           
Research and           114          126          220          255
Development
Selling, General and   1,159        2,009        2,662        3,673
Administrative
Total Operating        1,273        2,135        2,882        3,928
Expenses
Operating Loss         (1,180)      (2,142)      (2,684)      (4,022)
                                                             
Debt Extinguishment    (173)        (427)        (1,756)      (427)
Costs
Change in Derivative   (5,921)      (99)         (19,237)     (99)
Liability
Interest and Other     --           --           --           18
Income
Interest Expense       (1,442)      (1,253)      (3,091)      (1,777)
Loss Before Provision  (8,716)      (3,921)      (26,768)     (6,307)
for Income Taxes
Provision for Income   --           --           --           --
Taxes
Net Loss               $(8,716)    $(3,921)    $(26,768)   $(6,307)
                                                             
                                                             
Net Loss Per Share -   $(0.02)     $(0.20)     $(0.08)     $(0.32)
Basic and Diluted
                                                             
Weighted Average
Common Shares          474,847,995  19,947,205   355,084,811  19,471,441
Outstanding - Basic
and Diluted

                                                               
CEREPLAST, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited, in thousands, except shares data)
                                                                
                                                  Six Months Ended
                                                  June 30, 2013 June 30, 2012
                                                               
CASH FLOWS FROM OPERATING ACTIVITIES:                           
Net Loss                                           $(26,768)   $(6,307)
Adjustment to Reconcile Net Loss to Net Cash Used               
in Operating Activities
Depreciation and Amortization                      435          356
Common Stock Issued for Services, Salaries and     87           143
Wages
Amortization of Loan Discount                      2,254        779
Extinguishment of Convertible Debt                 1,756        348
Change in Warrant Derivative Liability             19,237       99
Allowance for Doubtful Accounts                    --           521
Changes in Operating Assets and Liabilities                     
Accounts Receivable                                (1,020)      (95)
Deferred Loan Costs                                265          262
Inventory                                          1,460        336
Prepaid Expenses                                   49           2
Restricted Cash                                    43           --
Accounts Payable                                   164          (402)
Accrued Expenses                                   621          34
NET CASH USED IN OPERATING ACTIVITIES              (1,417)      (3,924)
                                                               
CASH FLOWS FROM INVESTING ACTIVITIES:                           
Purchase of Property and Equipment, and            (3)          (125)
Intangibles
Proceeds from Sale of Equipment                    --           15
NET CASH USED IN INVESTING ACTIVITIES              (3)          (110)
                                                               
CASH FLOWS FROM FINANCING ACTIVITIES:                           
Payments on Capital Leases                         (30)         (36)
Payments made on Notes Payable                     --           (603)
Proceeds from Convertible Notes, Net of Issuance   63           450
Costs
Proceeds from Issuance of Preferred Stock          1,500        --
Proceeds from Issuance of Common Stock and         (23)         488
Subscriptions, Net of Issuance Costs
NET CASH PROVIDED BY FINANCING ACTIVITIES          1,510        299
                                                               
FOREIGN CURRENCY TRANSLATION                       (50)         (15)
                                                               
NET INCREASE (DECREASE) IN CASH                    40            (3,750)
                                                               
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD     183          3,940
CASH AND CASH EQUIVALENTS, END OF PERIOD           $223        $190

CONTACT: Cereplast, Inc.
         Public Relations
         Nicole Robertson
         812.220.5400 X1013
         nrobertson@cereplast.com
        
         Investor Relations:
         Alliance Advisors, LLC
         Valter Pinto
         914-669-0222 x201
         valter@allianceadvisors.net
         www.AllianceAdvisors.net

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