Ceapro Inc.

TSX VENTURE : CZO


Ceapro Inc.

April 28, 2014 09:00 ET

Ceapro Reports Full-Year 2013 Financial and Operating Results

- Highest full year revenue in Ceapro's history: Total sales increased by 26.3% or $1,359,000 over the year ended December 31, 2012

- Income from operations before extraordinary items of $447,000 compared to a loss of $515,000 in 2012

- Net Profit of $176,000 compared to a net loss of $538,000 in 2012

EDMONTON, ALBERTA--(Marketwired - April 28, 2014) - Ceapro Inc. (TSX VENTURE:CZO) ("Ceapro" or the Company") today announced its financial results and operational highlights for the year ended December 31, 2013.

"Year 2013 will be remembered as the most solid year ever in the history of Ceapro. Not only did we achieve a net profit and the best sales results with a 26.3% increase over 2012, but we did it during a year of major investments for the acquisition of equipment and the construction of a new facility. Our dedicated employees deployed tremendous efforts to respond to the growing demand while working diligently to plan and implement our new state of the art bioprocessing facility" said Gilles Gagnon, President and CEO. "Also, this major achievement would have not been possible without the unconditional support and vote of confidence from our major long term partners, Symrise AG, Alberta Financial Services Corporation and AI Bio Solutions" he added.

FINANCIAL RESULTS FOR THE YEAR ENDED DECEMBER 31, 2013

  • Total sales of $6,524,000 compared to $5,165,000 in 2012, an increase of 26.3%. This sales increase is mostly attributed to a 28% increase for flagship product, avenanthramides
  • Net Profit of $176,000 compared to a net loss of $538,000 in 2012
  • Research and Development investments of $731,000 compared to $856,000 in 2012
  • General and Administration expenses of $1,709,000 compared to $1,795,000 in 2012
  • Sales and Marketing expenses of $85,000 compared to $199,000 in 2012
  • The Company has Cash and cash equivalents of $1,953,000 as of December 31, 2013 as compared to $273,000 as of December 31, 2012

2013 KEY OPERATIONAL HIGHLIGHTS

  • Signing of a long term license and distribution agreement with German-based multinational, Symrise AG, a leading provider of active ingredients for personal care
  • Signing of two loan agreements at attractive interest rates, which is demonstration of confidence in Ceapro
  • Completed non-dilutive financing for the acquisition of customized equipment and construction of the state-of-the-art facility in Edmonton, Alberta
  • Signed an Agri-Processing Automation and Efficiency Grant Agreement with Alberta Agriculture and Rural Development for a contribution up to $673,000
  • Successful development of dry formulations for beta glucan and avenanthramides
  • Obtained key patents for beta glucan in Europe and Japan and for avenanthramides in the USA

"2013 has been marked by significant strategic achievements as we continued to move our products through pipeline and materially strengthened our cash position. With these conditions combined with our current strong order book and upcoming strategic initiatives, we are well positioned to pursue our focused pipeline development strategy with dry formulations. This is an exciting time for all of us at Ceapro, as well as for our partners and shareholders " added Mr. Gagnon.

The complete 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 Income (Loss) and Comprehensive Income (Loss)
Year Ended December 31
2013 2012
$ $
Revenue (note 13) 6,524,062 5,165,276
Cost of goods sold 3,425,248 2,716,605
Gross margin 3,098,814 2,448,671
Research and product development 731,174 856,191
General and administration 1,709,053 1,795,476
Sales and marketing 84,897 198,650
Finance costs (note 16) 126,663 112,900
Income (loss) from operations 447,027 (514,546 )
Other operating loss (note 15) (271,219 ) (23,807 )
Net income (loss) for the year 175,808 (538,353 )
Other comprehensive loss
Actuarial loss on employee future benefit obligation (note 10) (16,916 ) -
Total comprehensive income (loss) for the year 158,892 (538,353 )
Net income (loss) per common share (note 25):
Basic 0.00 (0.01 )
Diluted 0.00 (0.01 )
Weighted average number of common shares outstanding 60,278,948 60,278,948

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