EX-99.1 2 ex99_1.htm EXHIBIT 99.1
Exhibit 99.1

USE OF NON-GAAP FINANCIAL INFORMATION
 
We utilize "Adjusted EBITDA" as a supplemental measure in our ongoing analysis of short-term and long-term cash requirement and liquidity needs.  Adjusted EBITDA does not represent cash flows from operations as defined by generally accepted accounting principles ("GAAP"), is not a measure derived in accordance with GAAP and should not be considered as an alternative to net income (the most comparable GAAP financial measure to EBITDA).  Management uses Adjusted EBITDA as an indicator of our current financial performance.  By eliminating the impact of all material non-cash charges, as well as items that do not regularly occur, we believe that Adjusted EBITDA provides a more accurate and informative indicator of our cash requirements.
 
The table below contains a reconciliation of net income (GAAP) and Adjusted EBITDA (Non-GAAP) for the year ended December 31, 2014 and the year ended December 31, 2013.  We do not provide a reconciliation of forward-looking net income (GAAP) to Adjusted EBITDA (non-GAAP).  Due to the nature of certain reconciling items, it is not possible to predict with any reliability what future outcomes may be with regard to the expense or income that may ultimately be recognized in future periods.  Any forward-looking Adjusted EBITDA information that we may provide from time to time excludes the same types of items from projected net income that are excluded from actual net income in the table below:
 
RiceBran Technologies
Adjusted EBITDA Reconciliation
For the year ended December 31, 2014 (in thousands)
 
   
Corp. & USA
    
Brazil
    
Consolidated
  
Net loss
  
$
(16,123
)
  
$
(10,504
)
  
$
(26,627
)
Interest expense
    
7,949
      
2,385
      
10,334
  
Interest income
    
-
      
(115
)
    
(115
)
Income tax benefit
    
(1,304
)
    
-
      
(1,304
)
Depreciation & amortization
    
3,211
      
3,338
      
6,549
  
Unadjusted EBITDA
  
$
(6,267
)
  
$
(4,896
)
  
$
(11,163
)
Add Back Other Items:
                        
Change in fair value of derivative liabilities
    
1,209
      
-
      
1,209
  
Loss on extinguishment
    
906
      
-
      
906
  
Financing expense
    
2,072
      
-
      
2,072
  
Foreign currency exchange, net
    
-
      
174
      
174
  
Other income/expense
    
-
      
587
      
587
  
Share-based compensation
    
701
      
28
      
729
  
H&N acquisition costs
    
250
      
-
      
250
  
Adjusted EBITDA
  
$
(1,129
)
  
$
(4,107
)
  
$
(5,236
)

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RiceBran Technologies
Adjusted EBITDA Reconciliation
For the year ended December 31, 2013 (in thousands)
 
   
Corp. & USA
    
Brazil
    
Consolidated
  
Net loss
  
$
(12,248
)
  
$
(5,392
)
  
$
(17,640
)
Add Back:
                        
Interest expense
    
1,950
      
1,984
      
3,934
  
Interest income
    
-
      
(109
)
    
(109
)
Income tax benefit
    
-
      
(1,439
)
    
(1,439
)
Depreciation & amortization
    
1,419
      
2,629
      
4,048
  
Unadjusted EBITDA
  
$
(8,879
)
  
$
(2,327
)
  
$
(11,206
)
Add Back Other Items:
            
-
      
-
  
Change in fair value of derivative liabilities
    
1,029
      
-
      
1,029
  
Loss on extinguishment
    
2,891
      
-
      
2,891
  
Financing expense
    
564
      
-
      
564
  
Foreign currency exchange, net
    
-
      
440
      
440
  
Other income/expense
    
41
      
319
      
360
  
Stock option expense
    
538
      
-
      
538
  
Bonus expenses
    
936
      
-
      
936
  
Gain/Loss on fixed assets
    
(292
)
    
(44
)
    
(336
)
Impairment losses
    
300
      
-
      
300
  
Severance – employee terminations
    
-
      
534
      
534
  
Adjusted EBITDA
  
$
(2,872
)
  
$
(1,078
)
  
$
(3,950
)
 
 
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