Ceapro Reports Second Quarter 2013 Financial Results

Ceapro Reports Second Quarter 2013 Financial Results 
EDMONTON, ALBERTA -- (Marketwired) -- 08/29/13 -- Ceapro Inc. (TSX
VENTURE:CZO) ("Ceapro" or the Company") today announced its financial
results for the three-month and six-month periods ended June 30,
2013.  
Second quarter 2013 corporate highlights 


 
--  Announcement of a Distribution Agreement signed with German- based
    multinational, Symrise AG 
--  Additional funding of up to $97,000 for a key research project as part
    of a collaboration with a Canadian agriculture producer group 
--  Initiation of new state of the art manufacturing facility construction
    in Edmonton 

 
Subsequent to quarter-end 


 
--  Initiation of a research program to asses the suitability of dry
    formulations of Beta Glucan and Avenanthramides for the large
    nutraceuticals/functional food markets 
--  $1,600,000 loan secured from Alberta Financial Corporation Services
    (AFSC) for the acquisition of equipment in the new plant 
--  Conclusion of non-repayable grant of up to $674,000 with Canadian
    Government Growing Forward 2 Program for the new manufacturing plant
    project 

 
FINANCIAL RESULTS FOR THE SECOND QUARTER AND THE FIRST SIX MONTHS
ENDED JUNE 30, 2013 
Revenues were $1,012,000 for the three-month period ended June 30,
2013, as compared to $1,490,000 for the same period in 2012. This
decrease of revenues in the second quarter of 2013 is mostly due to
timing of customers' orders. For the first six months, revenues were
up to $3,025,000 in 2013 compared to $2,680,000 for the same period
in 2012, representing an increase of 12.9%. 
Gross Margins were $579,000 and $1,629,000 for the three-month period
and six-month period ended June 30, 2013 as compared to $673,000 and
$1,342,000 for the same periods in 2012. This significant six-month
21% improvement mostly reflects increased sales of one higher margin
product. 
Research and Development Investments were $227,000 and $364,000 for
the three-month period and six-month period ended June 30, 2013 as
compared to $267,000 and $430,000 for the same periods in 2012. These
decreased numbers in 2013 represent a favourable result from grant
revenues recognition received from government funding programs. We
remain strongly committed to expand our pipeline through the
development of new products as well as the development of second
generation of products from our value drivers, Avenanthramides and
Beta Glucan. 
General and Administration Expenses were $437,000 and $873,000 for
the three-month period and six-month period ended June 30, 2013
compared to $490,000 and $881,000 for the same periods in 2012. These
lower G&A expenses in Q2 2013 are due to lower consulting costs than
the ones incurred in 2012 for feasibility studies for the new plant.
They are also due to the non-renewal in 2013 of a contract for an
investor relations firm and to lower legal expenses registered in
2013 compared to 2012. 
Sales and Marketing Expenses were $47,000 and $69,000 for the
three-month and six-month periods ended June 30, 2013 compared to
$55,000 and $126,000 for the same periods in 2012. These decreased
expenses in 2013 are due to the non-renewal of marketing feasibility
studies conducted in 2012 partially offset by Ceapro's participation
at a major conference in April 2013. 
Net Income/Loss. For the three-month period ended June 30, 2013, net
loss was $252,000 versus a net loss of $161,000 for the same period
in 2012. This net loss includes a relocation rent expense of $81,000
for the new facility. It also includes $122,000 in new patents costs
mostly issued in European Countries for Beta Glucan. The relocation
expenses are reported under "other operating income (loss)" in the
Profit and Loss statement. For the first six-months of 2012, net
profit amounted to $156,000 compared to a net loss of $164,000 for
the same period in 2012. Without the extraordinary expenses incurred
in Q2 2013 for the new rent and patents, net income for the first six
months of 2013 would amount to $359,000 compared to a loss of
$164,000 for the same period in 2012.  
"We are pleased with the 2013 year to date results showing a 12.9%
increase of revenues compared to the first half of 2012 and a net
profit of $156,000 compared to a loss of $164,000 for the same period
in 2012. We have achieved these results as we have been focusing our
activities on the successful implementation of our new state of the
art manufacturing facility, our top priority for 2013. Activities in
the second quarter progressed as scheduled and we are on track to
complete this major milestone by the end of 2013" said Gilles Gagnon,
President and CEO. "Furthermore, we are very pleased with the
significant progresses made for the financing of this $5.0 million
project in a non-dilutive manner. We thank our partners who believe
in and greatly support Ceapro's innovative technologies and products"
he added.    
The complete financial statements are available for review on SEDAR
at http://sedar.com/Ceapro and on the Company's website at
http://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.  
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. 


 
CEAPRO INC.                                                                 
Consolidated Statements of Net Income (Loss) and Comprehensive Income (Loss)
Unaudited                                                                   
                          Quarters Ended June 30, Six Months Ended June 30, 
                                2013         2012         2013         2012 
                                   $            $            $            $ 
----------------------------------------------------------------------------
                                                                            
Revenue                    1,012,322    1,490,131    3,024,601    2,679,644 
Cost of goods sold           433,204      817,217    1,395,589    1,337,911 
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Gross margin                 579,118      672,914    1,629,012    1,341,733 
                                                                            
Research and product                                                        
 development                 226,738      267,142      364,449      429,614 
General and                                                                 
 administration              436,473      489,605      872,986      881,493 
Sales and marketing           46,570       55,008       68,923      126,434 
Finance costs (note 12)       24,137       27,926       74,643       54,662 
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Income (loss) from                                                          
 operations                 (154,800)    (166,767)     248,011     (150,470)
                                                                            
Other operating income                                                      
 (loss) (note 11)            (96,915)       6,221      (91,555)     (13,592)
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Net income (loss) for                                                       
 the period                 (251,715)    (160,546)     156,456     (164,062)
                                                                            
Other comprehensive loss                                                    
Actuarial loss on                                                           
 employee future benefit                                                    
 obligation (note 7)               -            -      (16,916)           - 
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Total comprehensive                                                         
 income (loss) for the                                                      
 period                     (251,715)    (160,546)     139,540     (164,062)
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Net income (loss) per                                                       
 common share (note 18):                                                    
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  Basic                        (0.00)       (0.00)        0.00        (0.00)
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  Diluted                      (0.00)       (0.00)        0.00        (0.00)
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Weighted average number                                                     
 of common shares                                                           
 outstanding              60,278,948   60,278,948   60,278,948   60,278,948 
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Contacts:
Branko Jankovic
Vice President and CFO
Ceapro Inc.
(Edmonton): 780.917.8376
bjankovic@ceapro.com