BioExx Specialty Proteins Ltd.
TSX : BXI

BioExx Specialty Proteins Ltd.

March 10, 2011 16:10 ET

BioExx Announces 2010 Annual and Q4 Results

TORONTO, ONTARIO--(Marketwire - March 10, 2011) -

Conference Call: Friday, March 11, 10:00 a.m. ET
 Dial-in Numbers: 416-340-2218 / 866-226-1792 / 800-9559-6849

During the conference call, the company will discuss:

  • Good progress on plant fixes and expected ramp-up
  • Strong plan for food sales amid robust protein market demand and pricing
  • Healthy current cash position
  • Positive outlook on North Dakota plant budget and ability to commence site work late Spring pending commercial validation in Saskatoon
  • Adoption of more formalized corporate governance policies

BioExx Specialty Proteins Ltd. (TSX:BXI) announced today its financial results for the three and twelve month periods ended December 31, 2010. Complete financial statements and Management's Discussion and Analysis have been filed for public review at www.sedar.com and will be posted on the Company's website at www.bioexx.com.

Financial Results

Revenues

During the 4th quarter of 2010, the Company generated $617,722 of revenue from canola oil and canola meal sales at its Saskatoon plant, versus revenue of $178,464 in the prior quarter. While canola input prices continued to rise during the quarter, oil and meal prices increased more, thus providing some improvement in crush margins. Accordingly, with somewhat improved economics and in order to move towards a more regular operating mode in advance of protein ramp-up, the Company operated the crush plant more often during Q4, resulting in higher revenues versus Q3.

Gross Profit (Loss) and Plant Profit (Loss)

Cost of Goods Sold for the quarter was $801,797, compared to $291,364 during the prior quarter, with the increase resulting primarily from the higher processing volumes and higher seed input costs.

Gross Loss for the quarter was $184,075, compared with a loss of $112,900 for the prior quarter. The Gross Loss increased slightly as a result of higher processing volumes, but was reduced on a per-tonne basis versus the prior quarter due to improved crush margins.

Other plant expenses during the quarter, which includes items such as maintenance expenses, QA/QC expenses, production supervision, plant supplies, and miscellaneous other plant expenses, increased to $437,517, versus the prior quarter at $386,907, due to increased general activity at the plant.

Together with amortization of plant and equipment of $292,716 versus $168,348 in Q3, this results in a Plant Loss of $914,308, versus a Plant Loss of $668,155 in the prior quarter. Just over one-half of the increased Plant Loss flows from the increased amortization expense quarter-over-quarter. As the Company has discussed in prior quarters, the operation of a very small 40,000 metric ton crush-only plant is economically challenging, and therefore until the pending introduction of commercial protein production and sales, plant operations are best viewed not on a stand-alone basis but rather as a stepping stone towards protein production

Administrative and General Expenses

The Corporation incurred administrative and general expenses during the quarter of $3,514,228, compared to $2,437,658 in the prior quarter. Although Office and general spending was reduced in the quarter, other expenses increased with corporate activities on various fronts. Research and development spending also increased in the quarter, but was partially offset by the accrual of 2010 SR&ED credits in quarter. The primary component of the quarter-over-quarter overall increase was $1,117,624 of Plant start-up and commissioning expenses, which are incremental expenses which the Company has identified as being directly related to its pre-commercial extraction and protein system start-up and generally non-recurring.

Net Loss

The Net Loss for the quarter was $4,430,902, compared to $3,085,713 for the prior quarter. This increase in net loss is the cumulative result of the various items discussed above, most notably the Plant start-up and commissioning expense. On a per share basis, the Net Loss is $0.02 for the quarter, versus $0.02 in the prior quarter.

Working Capital and Liquidity

As at December 31, 2010, current assets were $20,311,796, including cash of $16,628,725. Against current liabilities of $6,163,799, this results in net working capital of $14,147,997. The Company expects this cash position to be sufficient to fulfil its business plan objectives through further protein production ramp-up in Saskatoon and the provision of additional commercial validation regarding pricing and market demand.

Cash Flow Used In Operating Activities during the quarter was $1,808,802, compared to $1,071,555 in the prior quarter, reflective primarily of the increased loss in the quarter.

Cash Flow From Financing Activities during the quarter was $109,787, compared to $32,438,598 in the prior quarter, resulting from the absence of any additional equity financing activities in Q4 after the equity issuance in Q3.

Cash Flow Used In Investing Activities during the quarter was $3,744,106 and for the prior quarter was $14,555,563, reflective of slowing capex in Saskatoon, as the focus moves to plant operations and the start-up of Isolexx production.

About BioExx Specialty Proteins Ltd.

Headquartered in Toronto, Canada, BioExx is a leading technology and industrial processing company focused on the extraction of oil and high-value proteins from oilseeds for the global food, beverage, and nutrition markets. BioExx uses patented and patent-pending technology that utilizes significantly lower temperatures than conventional methods for extracting the final quantities of oil necessary to enable its simplified and patent- pending methods for separating proteins from oilseeds. Relative to other commercial processes, the low temperature BioExx process results in comparatively low energy requirements, environmentally sound extraction and protein separation processes, and very high human food yield that cumulatively have the potential to make a highly valuable contribution to global food and protein supply while maintaining an excellent environmentally sustainable footprint. BioExx operates a commercial scale extraction facility in Saskatoon, Saskatchewan, is in development stages on it second plant in Minot, North Dakota and has a mission to construct additional and larger processing facilities on a global basis.

To find out more about BioExx Specialty Proteins Ltd. (TSX:BXI), please visit www.bioexx.com

The statements made in this press release include forward-looking statements that involve a number of risks and uncertainties. These statements relate to future events or future performance and reflect management's current expectations and assumptions. A number of factors could cause actual events, performance or results to differ materially from the events, performance and results discussed in the forward-looking statements, such as the economy, generally, competition in its target markets, the demand for BioExx's products, the availability of funding, the efficacy of its technology, and the anticipated costs of BioExx's plant construction and operation. These forward-looking statements are made as of the date hereof and BioExx does not assume any obligation to update or revise them to reflect new events or circumstances. Actual events or results could differ materially from BioExx's expectations and projections.

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