2014 FIRST QUARTER HIGHLIGHTS
New sales strategy delivers Top Line Sales Growth
Revenue for the three months ended
Other sales growth initiatives in 2014 include the introduction of the Company's second zero calorie natural sweetener –
Cash-based SG&A expenses flat in Q1 2014 compared to Q1 2013
Cash based selling, general and administration expenses were flat at
Non-cash-based SG&A expenses up in Q1 2014 compared to Q1 2013
Non-cash-based selling, general and administration expenses for stock-based compensation and amortization charges increased to
Other expenses were up in the first quarter of 2014 due to appreciation of US Dollar relative to the Canadian Dollar
Other expenses for the three months ended
33% increase in net loss in Q1 2014 driven primarily by appreciation of US Dollar relative to the Canadian Dollar
For the three months ended
Non-GAAP Financial Measures
This non-GAAP financial measure shows the gross profit (loss) before the impact of idle capacity charges are reflected on the gross profit margin. GLG had only 50% of its production facilities in operation in the first quarter of 2014 and idle capacity charges have a material impact on the gross profit (loss) line in the financial statements.
Improvement in Earnings before Interest Taxes and Depreciation ("EBITDA") and EBITDA Margin achieved in the first quarter of 2014 compared to 2013
EBITDA for the quarter ended
|In thousands Canadian $|
|Cash and Cash Equivalents|
|Loan Payable (|
|Loan Payable (>1 year)|
The Company decreased its cash position by
Results from Operations
The following results from operations have been derived from and should be read in conjunction with the Company's annual consolidated financial statements for 2013 and the condensed interim consolidated financial statements for the three-month period ended
|In thousands Canadian $, except per||3 Months Ended ||% Change|
|Cost of Sales||42%|
|% of Revenue||112%||114%||(2%)|
|% of Revenue||(12%)||(14%)||2%|
|% of Revenue||42%||51%||(9%)|
|Loss from Operations||
|% of Revenue||(54%)||(65%)||11%|
|Other Income (Expenses)||
|% of Revenue||(53%)||(48%)||(5%)|
|Net (Loss) before Income Taxes||
|% of Revenue||(107%)||(112%)||6%|
|% of Revenue||(107%)||(115%)||(7%)|
|Net (Loss) from continuing operations||
|% of Revenue||(107%)||(112%)||6%|
|Net gain (loss) from discontinued operations||
|% of Revenue||0%||(3%)||3%|
|Loss per share (LPS, Basic & Diluted)||
|Loss per share from continuing operations (LPS, Basic & Diluted)||
|Loss per share from discontinued operations (LPS, Basic & Diluted)||0%|
|Other Comprehensive Income (Loss) from continuing operations||
|% of Revenue||(3%)||38%||(41%)|
|Other Comprehensive Income (Loss) from discontinued operations||(100%)|
|% of Revenue||0%||2%||(2%)|
|Total Comprehensive Income (Loss)||
|% of Revenue||(110%)||(75%)||(34%)|
For further information of the Company's financial performance for the quarter ended
The Company plans to focus on four key components to expand its sales in 2014.
1. Continued focus on increasing its international customers of high-purity stevia extracts.
2. Focus on developing Chinese market through its partnership with COFCO.
The Company currently has a number of formulation projects underway with COFCO NHRI and a number of COFCO's key subsidiaries.
3. Expansion of natural sweetener product line to include
Luo Han Guo("LHG") (Chinese Monk Fruit) in 2014.
The Company is currently working with key customers for LHG and expects to be in production in the fourth quarter of 2014, after the harvest of its first fruit. The Company continues to prepare all aspects of its operations for the formal launch of its production including agriculture, regulatory filings and production preparation. The Company plans on utilizing its currently idle plants to produce
Luo Han Guo.
4. Sales of other complimentary natural ingredients through its GLG Naturals+ product line in 2014.
The Company is currently quoting a number of these products to existing and new potential customers and expects this product-line to be generating revenues in 2014.
The Company has arranged planting of its H3 Leaf in
The Company is also pleased to report on the success of its non-GMO hybrid breeding program which has resulted in a number of new strains that it plans to develop, which have individual advantages such as:
• higher amounts of total steviol glycosides and higher amounts of Rebaudioside A.• higher amounts of targeted glycosides such as Rebaudioside C, Rebaudioside D and Rebaudioside M. The Company has seen some new seedling varieties with double to triple the amount of these strategic glycosides.• The Company will continue on to the next step to bring these proprietary seedlings to the next stage of development and expects availability for planting within the next 3 to 5 years.
The Company is of the view that the Consumer's preference will always be "naturally sourced from a stevia leaf" glycosides compared to those originating from a different process such as fermentation.
Forward-looking statements:This press release contains certain information that may constitute "forward-looking statements" and "forward looking information" (collectively, "forward-looking statements") within the meaning of applicable securities laws. Such forward-looking statements include, without limitation, statements evaluating the market, statements regarding the potential demand for stevia and general economic conditions and discussions of future-oriented costs and expenditures. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes" or variations of such words and phrases or words and phrases that state or indicate that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved.
While the Company has based these forward-looking statements on its current expectations about future events, the statements are not guarantees of the Company's future performance and are subject to risks, uncertainties, assumptions and other factors which could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. Such factors include amongst others the effects of general economic conditions, consumer demand for our products and new orders from our customers and distributors, changing foreign exchange rates and actions by government authorities, uncertainties associated with legal proceedings and negotiations, industry supply levels, competitive pricing pressures and misjudgments in the course of preparing forward-looking statements. Specific reference is made to the risks set forth under the heading "Risk Factors" in the Company's Annual Information Form for the financial year ended
Further, although the Company has attempted to identify factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
As there can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements, readers should not place undue reliance on forward-looking statements.
Stuart Wooldridge, Investor Relations Phone: +1 (604) 669-2602 ext. 104 Fax: +1 (604) 662-8858 Email: firstname.lastname@example.org