Beyond Meat, Inc. (NASDAQ: BYND) (“Beyond Meat” or “the Company”),
a leader in plant-based meat, today reported financial results for
its first quarter ended April 3, 2021.
First Quarter 2021 Financial
Highlights1
- Net revenues were $108.2 million, an increase of 11.4%
year-over-year.
- Gross profit was $32.7 million, or gross margin of
30.2% of net revenues.
- Net loss was $27.3 million, or $0.43 per common share;
Adjusted net loss was $26.2 million, or $0.42 per common share,
reflecting exclusion of expenses attributable to early debt
extinguishment.
- Adjusted EBITDA was a loss
of $10.8 million, or -10.0% of net revenues.
Beyond Meat President and CEO Ethan Brown commented, "We were
pleased to see sequential improvement in our revenue growth and
gross margin performance despite continued COVID-19 pressure on our
foodservice business. Throughout the first quarter, we remained
highly focused on investing in and building out production
infrastructure in the U.S., the EU, and China; new product
development and commercialization for our strategic QSR customers
and retail markets; and research and development in service to our
core growth levers of taste, nutrition, and cost."
Brown added, "As I look at the foundation we are putting in
place, I have never been more optimistic about Beyond Meat's future
as a significant and enduring global protein company. More
near-term, we are cautiously returning to the practice of issuing
guidance, starting with net revenues, as we have recently begun to
see a slow thaw occurring within foodservice both domestically and
in certain international markets."
__________________________1 This release includes references to
non-GAAP financial measures. Refer to “Non-GAAP Financial Measures”
later in this release for the definitions of the non-GAAP financial
measures presented and a reconciliation of these measures to their
closest comparable GAAP measures.
First Quarter 2021
Net revenues increased 11.4% to $108.2 million in the first
quarter of 2021, compared to $97.1 million in the year-ago period.
Growth in net revenues was primarily due to increased retail
channel sales, partially offset by a decline in foodservice channel
sales due to the continued impact of COVID-19 on foodservice demand
levels. Growth in volume sold during the first quarter of 2021 was
partially offset by lower net price per pound driven by the
Company’s strategic investments in promotional activity, and
product mix shifts as larger-pack items carrying a lower net price
per unit volume accounted for a greater proportion of the Company's
retail net revenues compared to the year-ago period.
Net revenues by channel (unaudited):
|
|
Three Months Ended |
|
Change |
(in
thousands) |
|
April 3,2021 |
|
March 28,2020 |
|
Amount |
|
% |
U.S.: |
|
|
|
|
|
|
|
|
Retail |
|
$ |
63,826 |
|
|
$ |
49,923 |
|
|
$ |
13,903 |
|
|
|
27.8 |
|
% |
Foodservice |
|
16,742 |
|
|
22,631 |
|
|
(5,889 |
) |
|
|
(26.0 |
) |
% |
U.S. net revenues |
|
80,568 |
|
|
72,554 |
|
|
8,014 |
|
|
|
11.0 |
|
% |
International: |
|
|
|
|
|
|
|
|
Retail |
|
17,199 |
|
|
5,952 |
|
|
11,247 |
|
|
|
189.0 |
|
% |
Foodservice |
|
10,397 |
|
|
18,568 |
|
|
(8,171 |
) |
|
|
(44.0 |
) |
% |
International net revenues |
|
27,596 |
|
|
24,520 |
|
|
3,076 |
|
|
|
12.5 |
|
% |
Net revenues |
|
$ |
108,164 |
|
|
$ |
97,074 |
|
|
$ |
11,090 |
|
|
|
11.4 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit was $32.7 million, or gross margin of 30.2% of net
revenues, in the first quarter of 2021, compared to $37.7 million,
or gross margin of 38.8% of net revenues, in the year-ago period.
The decrease in gross profit and gross margin was primarily due to
higher transportation and warehousing costs, lower net price
realization due to increased trade discounts and changes in product
sales mix, higher depreciation and amortization expense primarily
attributable to incremental fixed assets associated with the
Company's production facilities in Pennsylvania, The Netherlands
and China, and increased fixed overhead costs.
Loss from operations in the first quarter of
2021 was $24.6 million compared to income from operations of $1.8
million in the year-ago period. The reduction in income from
operations was primarily driven by increased production trial
activities, growth in overall headcount levels primarily to support
increased innovation capabilities and international growth, higher
freight costs included in the Company's selling expenses, and
higher share-based compensation expense compared to the year-ago
period.
Net loss was $27.3 million in the first quarter of 2021 compared
to net income of $1.8 million in the year-ago period. Net loss per
common share was $0.43 in the first quarter of 2021 compared to net
income per common share of $0.03 in the year-ago period. During the
first quarter of 2021, net loss included $1.0 million in expenses
attributable to the Company's early extinguishment of its revolving
credit facility. During the first quarter of 2020, net income
included $1.2 million in expenses attributable to COVID-19,
specifically related to product donations tied to the Company's
COVID-19 relief campaign. Excluding these costs, Adjusted net loss
was $26.2 million in the first quarter of 2021, or $0.42 per common
share, compared to Adjusted net income of $3.0 million, or $0.05
per common share, in the year-ago period.
Adjusted EBITDA was a loss of $10.8 million, or -10.0% of net
revenues, in the first quarter of 2021 compared to Adjusted EBITDA
of $13.9 million, or 14.3% of net revenues, in the year-ago
period.
Balance Sheet and Cash Flow Highlights
The Company’s cash and cash equivalents balance was $1.1 billion
as of April 3, 2021 and total outstanding debt was $1.1 billion.
During the first quarter of 2021, the Company completed a
convertible senior notes offering in the aggregate principal amount
of $1.15 billion, including a $150.0 million over-allotment option.
Net cash used in operating activities was $30.7 million for the
three months ended April 3, 2021, compared to $17.2 million for the
year-ago period. Capital expenditures totaled $23.4 million for the
three months ended April 3, 2021 compared to $12.4 million for the
year-ago period. The increase in capital expenditures was primarily
due to the Company’s continued investments in production equipment
and facilities related to capacity expansion initiatives, mainly in
China and the EU.
Update on COVID-19 and 2021 Outlook
Due to the COVID-19 pandemic, the Company continues to
experience significantly reduced demand in its foodservice channel
as decreased foot traffic, streamlined menu offerings and
restrictions on foodservice locations’ operating capacity have
resulted in closures or meaningfully curtailed operations of many
of the Company's foodservice customers. At the same time, the surge
in demand from retail customers that characterized the early stages
of the pandemic as consumers abruptly shifted towards more at-home
consumption has moderated. Given that the ongoing evolution of
consumer demand patterns across retail and foodservice channels has
significantly increased the difficulty of forecasting the Company's
customer demand levels, management believes it cannot provide
full-year guidance for 2021 with reasonable certainty. However, in
order to furnish some degree of visibility into the Company's
near-term expectations, management will provide, on an interim
basis, limited quarterly guidance for net revenues for the closest
upcoming reporting period. To this end, the Company is providing
the following guidance for the second quarter of 2021:
- Net revenues in the range of $135
million to $150 million, an increase of 19% to 32% compared to the
second quarter of 2020.
Conference Call and Webcast
The Company will host a conference call and webcast to discuss
these results with additional comments and details today at 5:00
p.m. Eastern, 2:00 p.m. Pacific. Investors interested in
participating in the live call can dial 415-226-5361. The
conference call webcast will be available live over the Internet
through the “Investors” section of the Company’s website at
www.beyondmeat.com and later archived.
About Beyond Meat
Beyond Meat, Inc. (NASDAQ: BYND) is one of the fastest growing
food companies in the United States, offering a portfolio of
revolutionary plant-based meats made from simple ingredients
without GMOs, bioengineered ingredients, hormones, antibiotics, or
cholesterol. Founded in 2009, Beyond Meat products are designed to
have the same taste and texture as animal-based meat while being
better for people and the planet. Beyond Meat’s brand commitment,
Eat What You Love™, represents a strong belief that there is a
better way to feed our future and that the positive choices we all
make, no matter how small, can have a great impact on our personal
health and the health of our planet. By shifting from animal-based
meat to plant-based meat, we can positively impact four growing
global issues: human health, climate change, constraints on natural
resources and animal welfare. As of April 3, 2021, Beyond Meat had
products available at approximately 118,000 retail and foodservice
outlets in over 80 countries worldwide. Visit www.BeyondMeat.com
and follow @BeyondMeat, #BeyondBurger and #GoBeyond on Facebook,
Instagram and Twitter and @BeyondMeatOfficial on TikTok.
Forward-Looking Statements
Certain statements in this release constitute “forward-looking
statements" within the meaning of the federal securities laws.
These statements are based on management's current opinions,
expectations, beliefs, plans, objectives, assumptions and
projections regarding financial performance, prospects, future
events and future results, including ongoing uncertainty related to
the COVID-19 pandemic, including the ultimate duration, magnitude
and effects of the pandemic and, in particular, the impact to the
foodservice channel, growth trends, our international expansion
plans, market share, new and existing customers and expense trends,
among other matters, and involve known and unknown risks that are
difficult to predict. In some cases, you can identify
forward-looking statements by the use of words such as “may,”
“could,” “expect,” “intend,” “plan,” “seek,” “anticipate,”
“believe,” “estimate,” “predict,” “outlook,” “potential,”
“continue,” “likely,” “will,” “would” and variations of these terms
and similar expressions, or the negative of these terms or similar
expressions. These forward-looking statements are only predictions,
not historical fact, and involve certain risks and uncertainties,
as well as assumptions. Forward-looking statements should not be
read as a guarantee of future performance or results, and will not
necessarily be accurate indications of the times at, or by which or
whether, such performance or results will be achieved. Actual
results, levels of activity, performance, achievements and events
could differ materially from those stated, anticipated or implied
by such forward-looking statements. While Beyond Meat believes that
its assumptions are reasonable, it is very difficult to predict the
impact of known factors, and, of course, it is impossible to
anticipate all factors that could affect actual results. There are
many risks and uncertainties that could cause actual results to
differ materially from forward-looking statements made herein
including, but not limited to, the effects of global outbreaks of
pandemics or contagious diseases or fear of such outbreak (such as
COVID-19), including on our ability to expand in new geographic
markets or the timing of such expansion efforts; the impact of
adverse and uncertain economic and political conditions in the U.S.
and international markets; the volatility of capital markets and
other macroeconomic factors; estimates of our expenses, future
revenues, capital requirements and our needs for additional
financing; our ability to effectively manage our growth; the
failure of acquisitions and other investments to be efficiently
integrated and produce the results we anticipate; the success of
operations conducted by joint ventures; the effects of increased
competition from our market competitors and new market entrants;
changes in the retail landscape, including the timing and level of
trade and promotion discounts, our ability to grow market share and
increase household penetration, repeat buying rates and purchase
frequency, and our ability to maintain and increase sales velocity
of our products; the success of distribution expansion and new
product introductions in increasing revenues and market share; the
timing and success of strategic partnership launches and limited
time offerings resulting in permanent menu items; our estimates of
the size of market opportunities; our ability to effectively expand
our manufacturing and production capacity; our ability to
accurately forecast demand for our products and manage our
inventory; variations in product selling prices and costs, and the
mix of products sold; our ability to successfully enter new
geographic markets, manage our international expansion and comply
with any applicable laws and regulations, including risks
associated with doing business in foreign countries, substantial
investments in our manufacturing operations in China and The
Netherlands, and our ability to comply with the U.S. Foreign
Corrupt Practices Act or other anti-corruption laws; the success of
our marketing initiatives and the ability to grow brand awareness,
maintain, protect and enhance our brand, attract and retain new
customers and grow our market share; our ability to attract,
maintain and effectively expand our relationships with key
strategic foodservice partners; our ability to attract and retain
our suppliers, distributors, co-manufacturers and customers; our
ability to procure sufficient high-quality raw materials to
manufacture our products; the availability of pea protein that
meets our standards; our ability to diversify the protein sources
used for our products; our ability to differentiate and
continuously create innovative products, respond to competitive
innovation, and achieve speed-to-market; our ability to
successfully execute our strategic initiatives; the volatility
associated with ingredient, packaging and other input costs; real
or perceived quality or health issues with our products or other
issues that adversely affect our brand and reputation; our ability
to accurately predict taste preferences, trends and demand and
successfully innovate, introduce and commercialize new products and
improve existing products, including in new geographic markets;
significant disruption in, or breach in security of our information
technology systems and resultant interruptions in service and any
related impact on our reputation; the attraction and retention of
qualified employees and key personnel and our ability to maintain
our company culture as we grow; the effects of natural or man-made
catastrophic events particularly involving our or any of our
co-manufacturers’ manufacturing facilities or our suppliers’
facilities; the impact of marketing campaigns aimed at generating
negative publicity regarding our products, brand and the
plant-based industry category; the effectiveness of our internal
controls; our indebtedness and ability to pay such indebtedness;
our ability to meet our obligations under our campus headquarters
lease, the timing of occupancy and completion of the build-out of
our space, cost overruns and the impact of COVID-19 on our space
demands; changes in laws and government regulation affecting our
business, including Food and Drug Administration and Federal Trade
Commission governmental regulation, and state, local and foreign
regulation; new or pending legislation, or changes in laws,
regulations or policies of governmental agencies or regulators,
both in the U.S. and abroad, affecting plant-based meat, the
labeling or naming of our products, or our brand name or logo; the
financial condition of, and our relationships with our suppliers,
co-manufacturers, distributors, retailers and foodservice
customers, and their future decisions regarding their relationships
with us; the ability of our suppliers and co-manufacturers to
comply with food safety, environmental or other laws and
regulations; seasonality; the sufficiency of our cash and cash
equivalents to meet our liquidity needs and service our
indebtedness; economic conditions and the impact on consumer
spending; outcomes of legal or administrative proceedings, or new
legal or administrative proceedings filed against us; our, our
suppliers’ and our co-manufacturers’ ability to protect our
proprietary technology and intellectual property adequately; the
impact of tariffs and trade wars; foreign exchange rate
fluctuations; and the risks discussed under the heading “Risk
Factors” in the Company’s Annual Report on Form 10-K for the year
ended December 31, 2020 and the Company’s Quarterly Report on Form
10-Q for the quarter ended April 3, 2021 to be filed with the SEC,
as well as other factors described from time to time in the
Company's filings with the SEC. All forward-looking statements
attributable to us or persons acting on our behalf are expressly
qualified in their entirety by the cautionary statements set forth
above. Such forward-looking statements are made only as of the date
of this release. Beyond Meat undertakes no obligation to publicly
update or revise any forward-looking statement because of new
information, future events, changes in assumptions or otherwise,
except as otherwise required by law. If we do update one or more
forward-looking statements, no inference should be made that we
will make additional updates with respect to those or other
forward-looking statements.
Non-GAAP Financial MeasuresThe Company refers
to certain financial measures that are not recognized under U.S.
generally accepted accounting principles (GAAP) in this press
release, including: Adjusted net (loss) income, Adjusted net (loss)
income per diluted common share, Adjusted EBITDA and Adjusted
EBITDA as a % of net revenues. See “Non-GAAP Financial Measures”
below for additional information and reconciliations of such
non-GAAP financial measures.
Availability of Information on Beyond Meat’s Website and
Social Media ChannelsInvestors and others should note that
Beyond Meat routinely announces material information to investors
and the marketplace using SEC filings, press releases, public
conference calls, webcasts and the Beyond Meat Investor Relations
website. We also intend to use certain social media channels as a
means of disclosing information about us and our products to
consumers, our customers, investors and the public (e.g.,
@BeyondMeat, #BeyondBurger and #GoBeyond on Facebook, Instagram and
Twitter, and @BeyondMeatOfficial on TikTok). The information posted
on social media channels is not incorporated by reference in this
press release or in any other report or document we file with the
SEC. While not all of the information that the Company posts to the
Beyond Meat Investor Relations website or to social media accounts
is of a material nature, some information could be deemed to be
material. Accordingly, the Company encourages investors, the media,
and others interested in Beyond Meat to review the information that
it shares at the “Investors” link located at the bottom of the
Company’s webpage at
https://investors.beyondmeat.com/investor-relations and to sign up
for and regularly follow the Company’s social media accounts. Users
may automatically receive email alerts and other information about
the Company when enrolling an email address by visiting "Request
Email Alerts" in the "Investors" section of Beyond Meat’s website
at https://investors.beyondmeat.com/investor-relations.
Contacts
Media:Shira
Zackai917-715-8522szackai@beyondmeat.com
Investors: Fitzhugh Taylor and Raphael
Grossbeyondmeat@icrinc.com
BEYOND MEAT, INC. AND
SUBSIDIARIESCondensed Consolidated Statements of
Operations(In thousands, except share and per
share data)(unaudited)
|
|
Three Months Ended |
|
|
April 3,2021 |
|
March 28,2020 |
Net revenues |
|
$ |
108,164 |
|
|
|
$ |
97,074 |
|
|
Cost of goods sold |
|
75,456 |
|
|
|
59,383 |
|
|
Gross profit |
|
32,708 |
|
|
|
37,691 |
|
|
Research and development
expenses |
|
15,925 |
|
|
|
6,194 |
|
|
Selling, general and
administrative expenses |
|
38,954 |
|
|
|
27,315 |
|
|
Restructuring expenses |
|
2,474 |
|
|
|
2,373 |
|
|
Total operating expenses |
|
57,353 |
|
|
|
35,882 |
|
|
(Loss) income from
operations |
|
(24,645 |
) |
|
|
1,809 |
|
|
Other (expense) income,
net: |
|
|
|
|
Interest expense |
|
(629 |
) |
|
|
(705 |
) |
|
Other, net |
|
(1,570 |
) |
|
|
710 |
|
|
Total other (expense) income,
net |
|
(2,199 |
) |
|
|
5 |
|
|
(Loss) income before
taxes |
|
(26,844 |
) |
|
|
1,814 |
|
|
Income tax expense
(benefit) |
|
48 |
|
|
|
(1 |
) |
|
Equity in losses of
unconsolidated joint venture |
|
$ |
374 |
|
|
|
$ |
— |
|
|
Net (loss) income |
|
$ |
(27,266 |
) |
|
|
$ |
1,815 |
|
|
Net (loss) income per share
available to common stockholders—basic |
|
$ |
(0.43 |
) |
|
|
$ |
0.03 |
|
|
Weighted average common shares
outstanding—basic |
|
62,941,748 |
|
|
|
61,679,929 |
|
|
Net (loss) income per share
available to common stockholders—diluted |
|
$ |
(0.43 |
) |
|
|
$ |
0.03 |
|
|
Weighted average common shares
outstanding—diluted |
|
62,941,748 |
|
|
|
65,927,988 |
|
|
|
BEYOND MEAT, INC. AND SUBSIDIARIES |
Condensed Consolidated Balance Sheets |
(In thousands, except share and per share
data) |
(unaudited) |
|
April 3,2021 |
|
December 31,2020 |
Assets |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
1,125,017 |
|
|
|
$ |
159,127 |
|
|
Accounts receivable |
36,653 |
|
|
|
35,975 |
|
|
Inventory |
145,524 |
|
|
|
121,717 |
|
|
Prepaid expenses and other current assets |
17,788 |
|
|
|
15,407 |
|
|
Total current assets |
$ |
1,324,982 |
|
|
|
$ |
332,226 |
|
|
Property, plant, and
equipment, net |
132,094 |
|
|
|
115,299 |
|
|
Operating lease right-of-use
assets |
13,938 |
|
|
|
14,570 |
|
|
Other non-current assets,
net |
4,505 |
|
|
|
5,911 |
|
|
Total assets |
$ |
1,475,519 |
|
|
|
$ |
468,006 |
|
|
Liabilities and Stockholders’
Equity: |
|
|
|
Current liabilities: |
|
|
|
Accounts payable |
$ |
51,456 |
|
|
|
$ |
53,071 |
|
|
Wages payable |
3,899 |
|
|
|
2,843 |
|
|
Accrued bonus |
2,565 |
|
|
|
57 |
|
|
Current portion of operating lease liabilities |
3,101 |
|
|
|
3,095 |
|
|
Short-term borrowings under revolving credit facility |
— |
|
|
|
25,000 |
|
|
Accrued expenses and other current liabilities |
11,903 |
|
|
|
4,830 |
|
|
Short-term finance lease liabilities |
185 |
|
|
|
71 |
|
|
Total current liabilities |
$ |
73,109 |
|
|
|
$ |
88,967 |
|
|
Long-term liabilities: |
|
|
|
Convertible senior notes, net |
$ |
1,126,723 |
|
|
|
$ |
— |
|
|
Operating lease liabilities, net of current portion |
11,061 |
|
|
|
11,793 |
|
|
Finance lease obligations and other long term liabilities |
579 |
|
|
|
149 |
|
|
Total long-term liabilities |
$ |
1,138,363 |
|
|
|
$ |
11,942 |
|
|
Commitments and
Contingencies |
|
|
|
Stockholders’ equity: |
|
|
|
Preferred stock, par value
$0.0001 per share—500,000 shares authorized, none issued and
outstanding |
$ |
— |
|
|
|
$ |
— |
|
|
Common stock, par value
$0.0001 per share—500,000,000 shares authorized; 63,008,534 and
62,820,351 shares issued and outstanding at April 3, 2021 and
December 31, 2020, respectively |
6 |
|
|
|
6 |
|
|
Additional paid-in
capital |
485,684 |
|
|
|
560,210 |
|
|
Accumulated deficit |
(222,133 |
) |
|
|
(194,867 |
) |
|
Accumulated other
comprehensive income |
490 |
|
|
|
1,748 |
|
|
Total stockholders’ equity |
$ |
264,047 |
|
|
|
$ |
367,097 |
|
|
Total liabilities and stockholders’ equity |
$ |
1,475,519 |
|
|
|
$ |
468,006 |
|
|
|
|
|
|
BEYOND MEAT, INC. AND SUBSIDIARIES |
Condensed Consolidated Statements of Cash
Flows |
(In thousands) |
(unaudited) |
|
|
Three Months Ended |
|
|
April 3,2021 |
|
March 28,2020 |
Cash flows from operating activities: |
|
|
|
|
Net (loss) income |
|
$ |
(27,266 |
) |
|
|
$ |
1,815 |
|
|
Adjustments to reconcile net (loss) income to net cash used in
operating activities: |
|
|
|
|
Depreciation and amortization |
|
4,326 |
|
|
|
2,583 |
|
|
Non-cash lease expense |
|
724 |
|
|
|
445 |
|
|
Share-based compensation expense |
|
7,376 |
|
|
|
5,949 |
|
|
Loss on sale of fixed assets |
|
3 |
|
|
|
— |
|
|
Amortization of debt issuance costs |
|
369 |
|
|
|
57 |
|
|
Loss on extinguishment of debt |
|
1,037 |
|
|
|
— |
|
|
Equity in losses of unconsolidated joint venture |
|
374 |
|
|
|
— |
|
|
|
|
|
|
|
Net change in
operating assets and liabilities: |
|
|
|
|
Accounts receivable |
|
(963 |
) |
|
|
3,746 |
|
|
Inventories |
|
(24,729 |
) |
|
|
(39,106 |
) |
|
Prepaid expenses and other assets |
|
(2,877 |
) |
|
|
(6,255 |
) |
|
Accounts payable |
|
1,098 |
|
|
|
16,651 |
|
|
Accrued expenses and other current liabilities |
|
10,689 |
|
|
|
(2,608 |
) |
|
Operating lease liabilities |
|
(818 |
) |
|
|
(479 |
) |
|
Net cash used in operating activities |
|
$ |
(30,657 |
) |
|
|
$ |
(17,202 |
) |
|
|
|
|
|
|
Cash flows from investing activities: |
|
|
|
|
Purchases of property, plant and equipment |
|
$ |
(23,363 |
) |
|
|
$ |
(12,398 |
) |
|
Purchases of property, plant and equipment held for sale |
|
— |
|
|
|
(964 |
) |
|
Payment of security deposits |
|
(18 |
) |
|
|
— |
|
|
Net cash used in investing activities |
|
$ |
(23,381 |
) |
|
|
$ |
(13,362 |
) |
|
|
|
|
|
|
Cash flows from financing activities: |
|
|
|
|
Proceeds from issuance of convertible senior notes |
|
$ |
1,150,000 |
|
|
|
$ |
— |
|
|
Purchase of capped call options |
|
(83,950 |
) |
|
|
— |
|
|
Debt issuance costs |
|
(23,150 |
) |
|
|
— |
|
|
Repayment of revolving credit facility |
|
(25,000 |
) |
|
|
— |
|
|
Principal payments under finance lease obligations |
|
(36 |
) |
|
|
(16 |
) |
|
Proceeds from exercise of stock options |
|
2,861 |
|
|
|
1,014 |
|
|
Payments of minimum withholding taxes on net share settlement of
equity awards |
|
(812 |
) |
|
|
(12 |
) |
|
Net cash provided by financing activities |
|
$ |
1,019,913 |
|
|
|
$ |
986 |
|
|
|
Net increase (decrease) in
cash and cash equivalents |
|
$ |
965,875 |
|
|
|
$ |
(29,578 |
) |
|
Effect of exchange rate
changes on cash |
|
15 |
|
|
|
— |
|
|
Cash and cash equivalents at
the beginning of the period |
|
159,127 |
|
|
|
275,988 |
|
|
Cash and cash equivalents at
the end of the period |
|
$ |
1,125,017 |
|
|
|
$ |
246,410 |
|
|
|
Supplemental disclosures of cash flow
information: |
|
|
|
|
Cash paid during the period for: |
|
|
|
|
Interest |
|
$ |
297 |
|
|
|
$ |
682 |
|
|
Taxes |
|
$ |
48 |
|
|
|
$ |
— |
|
|
Non-cash investing and financing activities: |
|
|
|
|
Issuance costs of convertible senior notes, accrued not yet
paid |
|
$ |
455 |
|
|
|
$ |
— |
|
|
Non-cash additions to property, plant and equipment |
|
$ |
8,148 |
|
|
|
$ |
5,907 |
|
|
Non-cash additions to property, plant and equipment held for
sale |
|
$ |
— |
|
|
|
$ |
156 |
|
|
Non-cash additions to financing leases |
|
$ |
580 |
|
|
|
$ |
— |
|
|
Operating lease right-of-use assets obtained in exchange for lease
liabilities |
|
$ |
105 |
|
|
|
$ |
981 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Financial Measures
Beyond Meat uses the non-GAAP financial measures set forth below
in assessing its operating performance and in its financial
communications. Management believes these non-GAAP financial
measures provide useful additional information to investors about
current trends in the Company's operations and are useful for
period-over-period comparisons of operations. In addition,
management uses these non-GAAP financial measures to assess
operating performance and for business planning purposes.
Management also believes these measures are widely used by
investors, securities analysts, rating agencies and other parties
in evaluating companies in our industry as a measure of our
operational performance. These non-GAAP financial measures should
not be considered in isolation or as a substitute for the
comparable GAAP measures. In addition, these non-GAAP financial
measures may not be computed in the same manner as similarly titled
measures used by other companies.
Adjusted net (loss) income and Adjusted net (loss)
income per diluted common share
Adjusted net (loss) income is defined as net (loss) income
adjusted to exclude, when applicable, costs attributable to
COVID-19, as well as other special items, which are those items
deemed not to be reflective of the Company’s ongoing normal
business activities.
Adjusted net (loss) income per diluted common share is defined
as Adjusted net (loss) income divided by the number of diluted
common shares outstanding.
We consider Adjusted net (loss) income and Adjusted net (loss)
income per diluted common share to be indicators of operating
performance because excluding special items allows for
period-over-period comparisons of our ongoing operations. Adjusted
net (loss) income per diluted common share is a performance measure
and should not be used as a measure of liquidity.
Adjusted EBITDA and Adjusted EBITDA as a % of net
revenues
Adjusted EBITDA is defined as net (loss) income adjusted to
exclude, when applicable, income tax expense (benefit), interest
expense, depreciation and amortization expense, restructuring
expenses, share-based compensation expense, expenses attributable
to COVID-19, remeasurement of our warrant liability, and Other,
net, including investment income, loss on extinguishment of debt
and foreign currency transaction gains and losses. Adjusted EBITDA
as a % of net revenues is defined as Adjusted EBITDA divided by net
revenues.
Limitations related to the use of non-GAAP financial
measures
There are a number of limitations related to the use of Adjusted
net (loss) income, Adjusted net (loss) income per diluted common
share, Adjusted EBITDA and Adjusted EBITDA as a % of net revenues
rather than their most directly comparable GAAP measures. Some of
these limitations are:
- Adjusted net (loss) income and
Adjusted net (loss) income per diluted common share exclude costs
associated with activities deemed to be non-recurring or not part
of the Company’s normal business activities, which are subjective
determinations made by management and may not actualize as
expected;
- Adjusted EBITDA excludes
depreciation and amortization expense and, although these are
non-cash expenses, the assets being depreciated may have to be
replaced in the future increasing our cash requirements;
- Adjusted EBITDA does not reflect
interest expense, or the cash required to service our debt, which
reduces cash available to us;
- Adjusted EBITDA does not reflect
income tax payments that reduce cash available to us;
- Adjusted EBITDA does not reflect
restructuring expenses that reduce cash available to us;
- Adjusted EBITDA does not reflect
expenses attributable to COVID-19 that reduce cash available to
us;
- Adjusted EBITDA does not reflect
share-based compensation expense and therefore does not include all
of our compensation costs;
- Adjusted EBITDA does not reflect
Other, net, including loss on extinguishment of debt and foreign
currency transaction gains and losses, that may increase or
decrease cash available to us; and
- other companies, including companies
in our industry, may calculate Adjusted EBITDA differently, which
reduces its usefulness as a comparative measure.
The following tables present the reconciliation of Adjusted net
(loss) income and Adjusted net (loss) income per diluted common
share to their most comparable GAAP measures, net (loss) income and
net (loss) income per share available to common
stockholders—diluted, respectively, as reported (unaudited):
|
|
Three Months Ended |
(in
thousands) |
|
April 3,2021 |
|
March 28,2020 |
Net (loss) income, as reported |
|
$ |
(27,266 |
) |
|
|
$ |
1,815 |
|
Product donations related to COVID-19 relief campaign |
|
— |
|
|
|
1,175 |
|
Loss on extinguishment of debt |
|
1,037 |
|
|
|
— |
|
Adjusted net (loss)
income |
|
$ |
(26,229 |
) |
|
|
$ |
2,990 |
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
(in thousands, except
share and per share amounts) |
April 3,2021 |
|
March 28,2020 |
Numerator: |
|
|
|
Net (loss) income, as reported |
$ |
(27,266 |
) |
|
$ |
1,815 |
Aggregate non-GAAP adjustments
as listed above |
1,037 |
|
|
1,175 |
Adjusted net (loss) income
used in computing Adjusted net (loss) income per diluted common
share |
$ |
(26,229 |
) |
|
$ |
2,990 |
|
|
|
|
Denominator: |
|
|
|
Weighted average shares used
in computing Adjusted net (loss) income per common share,
basic |
|
62,941,748 |
|
|
|
61,679,929 |
Dilutive effect of shares
issuable under stock options, RSUs and share-settled
obligation |
|
— |
|
|
|
4,248,059 |
Weighted average shares used
in computing Adjusted net (loss) income per common share,
diluted |
62,941,748 |
|
|
65,927,988 |
Adjusted net (loss) income per
diluted common share |
$ |
(0.42 |
) |
|
$ |
0.05 |
|
|
|
|
|
|
|
|
Three Months Ended |
|
April 3,2021 |
|
March 28,2020 |
Net (loss) income per share available to common
stockholders—diluted, as reported |
$ |
(0.43 |
) |
|
|
$ |
0.03 |
|
Product donations related to
COVID-19 relief campaign |
— |
|
|
|
0.02 |
|
Loss on extinguishment of
debt |
0.01 |
|
|
|
— |
|
Adjusted net (loss) income per
diluted common share |
$ |
(0.42 |
) |
|
|
$ |
0.05 |
|
|
|
|
|
|
|
|
|
|
The following table presents the reconciliation of Adjusted
EBITDA to its most comparable GAAP measure, net (loss) income, as
reported (unaudited):
|
|
Three Months Ended |
(in
thousands) |
|
April 3,2021 |
|
March 28,2020 |
Net (loss) income, as reported |
|
$ |
(27,266 |
) |
|
|
$ |
1,815 |
|
|
Income tax expense
(benefit) |
|
48 |
|
|
|
(1 |
) |
|
Interest expense |
|
629 |
|
|
|
705 |
|
|
Depreciation and amortization
expense |
|
4,326 |
|
|
|
2,583 |
|
|
Restructuring expenses(1) |
|
2,474 |
|
|
|
2,373 |
|
|
Share-based compensation
expense |
|
7,376 |
|
|
|
5,949 |
|
|
Expenses attributable to
COVID-19(2) |
|
— |
|
|
|
1,175 |
|
|
Other, net(3) |
|
1,570 |
|
|
|
(710 |
) |
|
Adjusted EBITDA |
|
$ |
(10,843 |
) |
|
|
$ |
13,889 |
|
|
Net (loss) income as a % of
net revenues |
|
(25.2 |
) |
% |
|
1.9 |
|
% |
Adjusted EBITDA as a % of net
revenues |
|
(10.0 |
) |
% |
|
14.3 |
|
% |
____________
(1 |
) |
Primarily comprised of legal and other expenses associated with the
dispute with a co-manufacturer with whom an exclusive supply
agreement was terminated in May 2017. |
(2 |
) |
Expenses attributable to COVID-19
in the three months ended March 28, 2020 include $1.2 million in
product donation costs related to the Company's COVID-19 relief
campaign. |
(3 |
) |
Includes $1.0 million in loss on
extinguishment of debt in the three months ended April 3,
2021. |
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