TORONTO, ONTARIO -- (Marketwire) -- 08/11/11 -- BioExx Specialty Proteins Ltd. (TSX: BXI) announced today its financial results for the three and six month periods ended June 30, 2011. 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.
During the quarter, the Company generated $1,950,987 of revenue from canola oil and canola meal sales at its Saskatoon plant (including an unrealized gain on derivatives of $69,714 - Q2 2010 $Nil), versus revenue of $838,283 in Q2 2010. This revenue was based on approximately 3,900 Mt seed processed in the quarter, as compared to approximately 2,500 Mt in the comparable 2010 quarter. Although canola seed costs eased slightly in the quarter after moving higher earlier in the year on Canadian weather concerns, oil and meal prices also showed some weakening, with the net result being reduced per ton economics.
Gross Profit (Loss)
Cost of Goods Sold for the quarter was $3,262,705, compared to $1,659,518 for Q2 2010. The increase results primarily from the higher processing volumes, and also higher seed costs in Q2 2011, at an average of $577 per Mt versus $437 per Mt in Q2 2010. As a result of the foregoing factors, Gross Loss for the quarter was $1,311,718, compared with $821,235 for the comparable period. As the Company has discussed in prior quarters, the operation of a small 40,000 metric ton crush-only plant is economically challenging. Until the economics of protein production and sales are reflected at material volumes in the financial results, plant operations are best viewed not on a stand-alone basis but rather as a stepping stone towards the protein business.
The Corporation incurred other expenses during the quarter of $3,757,935, compared to $2,568,182 in the comparable period.
Other general and administrative expenses were higher than in the Q2 2010 period, at $915,832 versus $718,287, due to the increased scale of operations generally as the Company's business plan progressed.
As a non-cash item, share-based compensation was lower than the comparable prior year period, driven primarily by a much lower number of stock option grants in 2011 versus 2010.
The Company's migration towards commercial operations and its focus on the introduction of commercial protein production in Saskatoon reflects itself in the reduced Research and development spending versus Q2 of the prior year, at $231,516 versus $530,009.
As the Company moved into the later stages of protein start-up and closer to commercial protein operations during Q2 2011, it incurred Plant commissioning and start-up expenses, which it did not incur during Q2 2010 as the Saskatoon plant was not in the protein start-up phase at that time. In future quarters, where the Company is in commercial protein operations, continuing expenditures in this category will be reflected in Cost of Goods Sold.
Sales and marketing expenses were higher in Q2 2011 versus Q2 2010, at $152,471 versus $81,994, reflective of the Company's commercial market engagement efforts in Q2 2011.
The Net Loss for the quarter was $5,069,653, compared to $3,389,417 for the comparable quarter. This increase in net loss is of course the cumulative result of the various items discussed above. On a per share basis, the Net Loss is $0.03 for the quarter, versus $0.02 in the comparable quarter.
Working Capital and Liquidity
As at June 30, 2011, current assets were $24,869,416, including cash and cash equivalents and restricted cash of $22,780,063. Against current liabilities of $4,933,215, this results in net working capital of $19,936,201. This compares to current assets of $20,311,796 and net working capital of $14,147,997 as at December 31, 2010.
About BioExx Specialty Proteins Ltd.
Headquartered in Toronto, Canada, BioExx is a technology and industrial processing company focused on the extraction of oil and high-value proteins from oilseeds for global food, beverage, nutrition, and other markets. BioExx employs trade secret, patented and patent-pending technologies that utilize significantly lower temperatures than conventional oilseed processing, in order to enable the improved separation of proteins from oilseeds. BioExx believes that these processes cumulatively have the potential to make a valuable contribution to global food and protein supply while maintaining an environmentally sustainable footprint. BioExx operates a small commercial scale canola processing facility in Saskatoon, Saskatchewan, and has a mission to construct and facilitate 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.
BioExx Specialty Proteins Ltd.
Chief Financial Officer
(416) 588-4442 x111
Investor Relations: Brisco Capital Partners