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.