CEAPRO INC.
TSX VENTURE : CZO

CEAPRO INC.

May 03, 2010 09:00 ET

Ceapro Reports Full-Year 2009 Financial and Operating Results

EDMONTON, ALBERTA--(Marketwire - May 3, 2010) - Ceapro Inc. (TSX VENTURE:CZO) ("Ceapro" or the Company") today released financial and operating results for the fiscal year ended December 31, 2009.

2009 Highlights

  • Transitional year in implementing our new strategy which focuses on our core expertise in extracting and commercializing selected high value active ingredients
  • Successful implementation of operational efficiencies and corresponding margin improvement. 
  • Looked to expand manufacturing capabilities in conducive business environments
  • Signed out-licensing agreement for CeaProve™
  • Introduced Ceapro's newest product, hydrolyzed oat peptides, for a major personal hair care line
  • Signed a non-exclusive distribution agreement with South Korean based East Hill Corporation for selected Asian territories. 
  • Certain Ceapro products are now being evaluated for use by major Asian cosmetic companies for inclusion in their formulations.
  • Settlement of litigation and payment related to the Saskatchewan Government Growth Fund Ltd completed. No further financial exposure to the Company.

"2009 was a year of transition and implementation of our new strategy which is focused on developing and selling selected high value active ingredients. Despite 2009 being a very difficult economic period for the personal care industry, we are proud to have generated higher revenues than in the previous year and to have significantly improved our income from operations by $1.45 million even as some major customers drastically reduced their inventories, especially in the fourth quarter" said Gilles Gagnon, Acting President & CEO. "Going forward, we will continue to further develop new products for our Active Ingredient business and expect to finalize licensing opportunities that have been presented to the Company in recognition of the strength of Ceapro's core extraction technology and in recognition of Ceapro's proven track-record of product commercialization. The sale of additional new extracts is expected to drive increases in revenues and enhance profitability in the future" he added.

FINANCIAL RESULTS FOR THE FULL YEAR ENDED DECEMBER 31, 2009

  • Total sales $4,370,000 compared to $4,228,000 in 2008, an increase of 3.3%.
  • Gross margin increased by $833,000 reflecting a percentage increase to 48% from 30% primarily due to the successful implementation of improved operating procedures and better management of resources.
  • Net loss amounted to $69,000 or $0.00 per share compared to a net loss of $3,599,000 or $0.08 per share for 2008, an improvement of $3,530,000. This net loss of $69,000 approximates the loss related to the US exchange rate.
  • General and administration expenses decreased by $265,000 as well as sales and marketing and research & development costs which respectively decreased by $201,000 and $314,000 compared to 2008.

The complete audited annual consolidated financial statements are available for review on SEDAR at http://sedar.com/Ceapro and on the Company's website at 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 Loss and Comprehensive Loss and Deficit  
      Years ended December 31  
  2009   2008  
         
Revenue        
  Sales (note 11)  $ 4,370,070   $ 4,228,073  
  Cost of goods sold 2,252,024   2,942,802  
         
  Gross margin 2,118,046   1,285,271  
         
Expenses        
  General and administration 1,424,344   1,688,978  
  Royalties 250,663   401,876  
  Sales and marketing 183,693   385,132  
  Amortization 44,842   34,955  
  Interest on long-term debt 77,031   83,651  
         
  1,980,573   2,594,592  
         
Income (loss) from operations 137,473   (1,309,321 )
         
Other income (expenses)        
  Research and product development (577,629 ) (891,382 )
  Bioenergy Feasibility Study -   (5,868 )
  Other income (loss) (note 12) (55,493 ) 73,385  
         
Loss before SGGF legal fees (495,649 ) (2,133,186 )
  SGGF legal fees (note 10a) 426,300   (1,466,283 )
         
NET LOSS AND COMPREHENSIVE LOSS FOR THE YEAR (69,349 ) (3,599,469 )
Deficit, beginning of year (7,321,541 ) (3,722,072 )
         
Deficit, end of year  $ (7,390,890 ) $ (7,321,541 )
         
Net loss per common share:        
  Basic $ (0.00 ) $ (0.08 )
  Diluted $ (0.00 ) $ (0.08 )
         
Weighted average number of common shares outstanding 49,577,953   47,050,063  
         
See accompanying notes        

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