ENP Newswire -
Release date- 13082014 -
This compares with sales of
During the Second Quarter, the Company continued to optimize its European production facility purchased in
This delay resulted in approximately
The Company incurred
Additional equipment designed to provide energy, feedstock, chemical, and labor efficiencies are scheduled for installation during the Third Quarter. Once installed, further cost and quality improvements are anticipated.
'We made substantial progress in the Second Quarter bringing all processing steps in-house and further improving the quality of our fibers. Production volumes were reduced as air quality challenges were managed but despite this challenge we more than doubled
'Customer feedback continues to be positive and we are encouraged by forecasts that exceed our current capacity. Our focus this Quarter will be on increasing production volume, gross margin and fiber quality. We are hiring and training to support longer hours and additional equipment including a fiber cleaning installation.'
Cash and cash equivalents and investments at
Although capacity will be constrained by a customary three-week shutdown and equipment installation during the Third Quarter, the Company expects Third Quarter 2014 sales to double sales for the Second Quarter 2014.
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 (the 'Exchange Act') define and prescribe the conditions for use of certain non-GAAP financial information. We provide 'EBITDA,' which is a non-GAAP financial measure that consists of net income (loss) before (a) interest expense, (b) accretion expense, and (c) depreciation and amortization.
'Adjusted EBITDA' further adjusts EBITDA to exclude stock-based compensation expense, facility commissioning expense, fair value adjustment derivative liabilities, gain on settlement of debt, gain on disposal of assets, impairment loss and rent inducement expense.
We believe that these non-GAAP financial measures provide important supplemental information to management and investors. These non-GAAP financial measures reflects an additional way of viewing aspects of our operations that, when viewed with the U.S. GAAP results and the accompanying reconciliation to corresponding U.S. GAAP financial measures, provides a more complete understanding of factors and trends affecting our business and results of operations.
Our management uses EBITDA and Adjusted EBITDA as a measure of our Company's operating performance because it assists in comparing our operating performance on a consistent basis by removing the impact of items not directly resulting from core operations.
Internally, these non-GAAP measures are 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 our capacity to fund capital expenditures and expand our business.
We also believe that analysts and investors use these measures as supplemental measures to evaluate the overall operating performance of development stage companies. Additionally, we believe that lenders or potential lenders use EBITDA and Adjusted EBITDA to evaluate our ability to repay loans.
These non-GAAP financial measures are used in addition to and in conjunction with results presented in accordance with U.S. GAAP and should not be relied upon to the exclusion of U.S. GAAP financial measures. Management strongly encourages investors to review our 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, we expect to continue to incur expenses similar to the non-GAAP adjustments described above, and exclusion of these items from our non-GAAP measures should not be construed as an inference that these costs are unusual, infrequent or non-recurring.
The Company supplies its CRAiLAR Flax to IKEA,
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 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
Most Popular Stories
- PBS Series Examines America's Demographic Shift
- Tim Cook Has Proved That Apple is His Baby
- Texas Sees Gains in Hispanic College Enrollment
- Americans Bet Big on Gambling Industry
- Petri Likely Broke House Ethics Rules
- California's Ban on Plastic Bags: What Now?
- Exxon Gives Nod to Fracking Risks
- Morgan: 'Can't Believe' Wal-Mart Blaming Him
- Royals Beat A's in 12-inning Wild Card Thriller
- Can You Be Fired for Using Medical Marijuana?