Beyond Meat, Inc. (NASDAQ: BYND) (“Beyond Meat” or “the Company”),
a leader in plant-based meat, today reported financial results for
its fourth quarter and full year ended December 31, 2020.
Fourth Quarter 2020 Financial
Highlights1
- Net revenues were $101.9 million, an increase of 3.5%
year-over-year.
- Gross profit was $25.4 million, or gross margin of 24.9% of net
revenues; Adjusted gross profit was $29.1 million, or Adjusted
gross margin of 28.5% of net revenues, reflecting exclusion of
expenses attributable to COVID-19.
- Net loss was $25.1 million, or $0.40 per common share; Adjusted
net loss was $21.4 million, or $0.34 per common share, reflecting
exclusion of expenses attributable to COVID-19.
- Adjusted EBITDA was a loss of $9.5
million, or -9.3% of net revenues.
Full Year 2020 Financial
Highlights1
- Net revenues were $406.8 million, an increase of 36.6%
year-over-year.
- Gross profit was $122.3 million, or gross margin of 30.1% of
net revenues; Adjusted gross profit was $133.7 million, or Adjusted
gross margin of 32.9% of net revenues, reflecting exclusion of
expenses attributable to COVID-19.
- Net loss was $52.8 million, or $0.85 per common share; Adjusted
net loss was $37.1 million, or $0.60 per common share, reflecting
exclusion of expenses attributable to COVID-19.
- Adjusted EBITDA was $11.8 million,
or 2.9% of net revenues.
__________________________
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.
Beyond Meat President and CEO Ethan Brown commented, "I am proud
of our 2020 achievements in light of the significant challenges we
faced, primarily in our foodservice channel, as a result of the
COVID-19 pandemic. For the full year, we grew total net revenues
37%, with sales to retail customers more than doubling versus the
prior year."
Brown added, "Although weakened foodservice demand resulting
from the global pandemic has impacted our near-term profitability,
we continue to press forward with strategic investments in service
of our future growth, including the build out of our production
facilities in China and Europe, bolstering our research and
development capabilities, amplifying our marketing voice, upgrading
our IT infrastructure, and, importantly, continuing to build out
talented teams across the globe to bring our ambitious goals to
fruition. Given our view that we are at a pivotal juncture, where
we have an opportunity to transition from niche market to
mainstream stature with bold, strategic actions, we will continue
to invest aggressively in 2021 to accelerate our path towards this
objective. I truly believe that plant-based meat has reached a
tipping point in terms of its cultural relevance and, critically,
the fundamentals underpinning Beyond Meat's long-term prospects
remain robust, with important brand metrics such as household
penetration, buyer rates, purchase frequency and repeat rates all
registering another quarter of uninterrupted growth. My optimism
about Beyond Meat's future therefore remains as solid as ever. As
we stay true to our guiding principle of providing consumers with
great-tasting plant-based meats, made without the use of GMOs,
bioengineered ingredients, hormones, antibiotics or cholesterol, we
believe we are on a path to building an enduring global protein
company that advances a more sustainable meat supply chain,
consumer health and the health of our planet."
Fourth Quarter 2020
Net revenues increased 3.5% to $101.9 million in the fourth
quarter of 2020, compared to $98.5 million in the prior year
period. Growth in net revenues was primarily due to increased
retail channel sales, largely 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 fourth
quarter of 2020 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 prior year
period.
Net revenues by channel:
|
|
(Unaudited) |
|
|
Three Months Ended December 31, |
|
Change |
(in
thousands) |
|
2020 |
|
2019 |
|
Amount |
|
% |
U.S.: |
|
|
|
|
|
|
|
|
Retail |
|
$ |
62,092 |
|
|
$ |
35,221 |
|
|
$ |
26,871 |
|
|
|
76.3 |
|
% |
Foodservice |
|
15,321 |
|
|
26,675 |
|
|
(11,354 |
) |
|
|
(42.6 |
) |
% |
U.S. net revenues |
|
77,413 |
|
|
61,896 |
|
|
15,517 |
|
|
|
25.1 |
|
% |
International: |
|
|
|
|
|
|
|
|
Retail |
|
$ |
12,973 |
|
|
$ |
5,424 |
|
|
$ |
7,549 |
|
|
|
139.2 |
|
% |
Foodservice |
|
11,551 |
|
|
31,159 |
|
|
(19,608 |
) |
|
|
(62.9 |
) |
% |
International net revenues |
|
24,524 |
|
|
36,583 |
|
|
(12,059 |
) |
|
|
(33.0 |
) |
% |
Net revenues |
|
$ |
101,937 |
|
|
$ |
98,479 |
|
|
$ |
3,458 |
|
|
|
3.5 |
|
% |
|
|
(Unaudited) |
|
|
Year Ended December 31, |
|
Change |
(in
thousands) |
|
2020 |
|
2019 |
|
Amount |
|
% |
U.S.: |
|
|
|
|
|
|
|
|
Retail |
|
$ |
264,111 |
|
|
$ |
129,383 |
|
|
$ |
134,728 |
|
|
|
104.1 |
|
% |
Foodservice |
|
60,763 |
|
|
70,372 |
|
|
(9,609 |
) |
|
|
(13.7 |
) |
% |
U.S. net revenues |
|
324,874 |
|
|
199,755 |
|
|
125,119 |
|
|
|
62.6 |
|
% |
International: |
|
|
|
|
|
|
|
|
Retail |
|
$ |
36,472 |
|
|
$ |
15,426 |
|
|
$ |
21,046 |
|
|
|
136.4 |
|
% |
Foodservice |
|
45,439 |
|
|
82,716 |
|
|
(37,277 |
) |
|
|
(45.1 |
) |
% |
International net revenues |
|
81,911 |
|
|
98,142 |
|
|
(16,231 |
) |
|
|
(16.5 |
) |
% |
Net revenues |
|
$ |
406,785 |
|
|
$ |
297,897 |
|
|
$ |
108,888 |
|
|
|
36.6 |
|
% |
|
|
|
|
|
|
|
|
|
Gross profit was $25.4 million, or gross margin of 24.9% of net
revenues, in the fourth quarter of 2020, compared to $33.5 million,
or gross margin of 34.0% of net revenues, in the prior year period.
Adjusted gross profit, which excludes $3.7 million of expenses
attributable to COVID-19, was $29.1 million, or Adjusted gross
margin of 28.5% of net revenues, in the fourth quarter of 2020,
compared to Adjusted gross profit of $33.5 million, or Adjusted
gross margin of 34.0% of net revenues, in the prior year period.
The decrease in Adjusted gross profit and Adjusted gross margin was
primarily due to lower absorption of fixed overhead production
costs. Specifically, recent curtailments of production volumes,
mainly in the third quarter of 2020, resulted in the capitalization
of higher fixed cost inventory in the third quarter, which was
subsequently recognized as higher per unit cost of goods sold in
the fourth quarter of 2020 as the Company sold off inventory on
hand. In addition, to a lesser extent, Adjusted gross profit and
Adjusted gross margin also decreased due to lower net price
realization resulting from higher trade discounts as compared to
the fourth quarter of 2019, and product mix shifts. The $3.7
million in expenses attributable to COVID-19 in the fourth quarter
of 2020 were driven by incremental inventory write-offs and
reserves associated with foodservice products determined to be
unsalable.
Loss from operations in the fourth quarter of 2020 was $24.5
million compared to loss from operations of $0.9 million in the
prior year period. The increase in loss from operations was
primarily driven by the decline in gross profit, combined with
higher operating expenses primarily due to the Company’s increased
headcount to support long-term growth, investment in international
expansion efforts, specifically in Europe and China, higher
production trial costs, investments in IT infrastructure, and
continued investments in marketing and research and
development.
Net loss was $25.1 million in the fourth quarter of 2020
compared to net loss of $0.5 million in the prior year period. Net
loss per common share was $0.40 in the fourth quarter of 2020
compared to net loss per common share of $0.01 in the prior year
period. In the fourth quarter of 2020, net loss included $3.7
million in expenses attributable to COVID-19, specifically related
to inventory write-offs and reserves of certain foodservice
products. Excluding these costs, Adjusted net loss was $21.4
million in the fourth quarter of 2020, or $0.34 per common share,
compared to Adjusted net loss of $0.5 million, or $0.01 per common
share, in the prior year period.
Adjusted EBITDA was a loss of $9.5 million, or -9.3% of net
revenues, in the fourth quarter of 2020 compared to Adjusted EBITDA
of $9.5 million, or 9.7% of net revenues, in the prior year
period.
Chief Financial Officer and Treasurer, Mark Nelson commented,
“We emerged from a challenging year on firm footing and stand ready
to capitalize on several opportunities ahead of us. We believe our
resolve to proceed with significant investments in our key
strategic initiatives reinforces our long-term position, putting in
place the necessary capabilities and infrastructure to support the
long-term growth potential underpinned by our strengthening
business fundamentals.”
Balance Sheet and Cash Flow Highlights
The Company’s cash and cash equivalents balance was $159.1
million as of December 31, 2020 and total outstanding debt was
$25.0 million. Net cash used in operating activities was $40.0
million for the twelve months ended December 31, 2020, compared to
$47.0 million for the prior year. Capital expenditures totaled
$57.7 million for the twelve months ended December 31, 2020
compared to $23.8 million for the prior year. The increase in
capital expenditures was primarily driven by the Company’s
continued investments in production equipment and facilities
related to capacity expansion initiatives. Separately, for the
twelve months ended December 31, 2020, cash flows used in investing
activities also included $15.5 million of payments for asset
acquisitions, specifically related to the Company's purchase of a
former co-manufacturing facility in Pennsylvania.
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 its 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 in forecasting the Company's
customer demand levels, management will not be providing 2021
guidance until further notice.
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 270-215-9602. 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 December 31, 2020, Beyond Meat
had products available at approximately 122,000 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, as
well as our ability to comply with covenants under our credit
agreement; 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 Quarterly Report on Form 10-Q for the
quarter ended September 26, 2020 and the Company’s Annual Report on
Form 10-K for the year ended December 31, 2020 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 gross profit, Adjusted gross margin,
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
SUBSIDIARIESConsolidated Statements of
Operations(In thousands, except share and per
share data)(Unaudited)
|
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
Net revenues |
|
$ |
101,937 |
|
|
|
$ |
98,479 |
|
|
|
$ |
406,785 |
|
|
|
$ |
297,897 |
|
|
Cost of goods sold |
|
76,532 |
|
|
|
65,018 |
|
|
|
284,510 |
|
|
|
198,141 |
|
|
Gross profit |
|
25,405 |
|
|
|
33,461 |
|
|
|
122,275 |
|
|
|
99,756 |
|
|
Research and development
expenses |
|
11,047 |
|
|
|
5,989 |
|
|
|
31,535 |
|
|
|
20,650 |
|
|
Selling, general and
administrative expenses |
|
38,488 |
|
|
|
27,090 |
|
|
|
133,655 |
|
|
|
74,726 |
|
|
Restructuring expenses |
|
402 |
|
|
|
1,309 |
|
|
|
6,430 |
|
|
|
4,869 |
|
|
Total operating expenses |
|
49,937 |
|
|
|
34,388 |
|
|
|
171,620 |
|
|
|
100,245 |
|
|
Loss from operations |
|
(24,532 |
) |
|
|
(927 |
) |
|
|
(49,345 |
) |
|
|
(489 |
) |
|
Other expense, net: |
|
|
|
|
|
|
|
|
Interest expense |
|
(613 |
) |
|
|
(742 |
) |
|
|
(2,576 |
) |
|
|
(3,071 |
) |
|
Remeasurement of warrant
liability |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(12,503 |
) |
|
Other, net |
|
70 |
|
|
|
1,205 |
|
|
|
(759 |
) |
|
|
3,629 |
|
|
Total other (expense) income,
net |
|
(543 |
) |
|
|
463 |
|
|
|
(3,335 |
) |
|
|
(11,945 |
) |
|
Loss before taxes |
|
(25,075 |
) |
|
|
(464 |
) |
|
|
(52,680 |
) |
|
|
(12,434 |
) |
|
Income tax expense
(benefit) |
|
2 |
|
|
|
(12 |
) |
|
|
72 |
|
|
|
9 |
|
|
Net loss |
|
$ |
(25,077 |
) |
|
|
$ |
(452 |
) |
|
|
$ |
(52,752 |
) |
|
|
$ |
(12,443 |
) |
|
Net loss per share available
to common stockholders—basic and diluted |
|
$ |
(0.40 |
) |
|
|
$ |
(0.01 |
) |
|
|
$ |
(0.85 |
) |
|
|
$ |
(0.29 |
) |
|
Weighted average common shares
outstanding—basic and diluted |
|
62,723,875 |
|
|
|
61,229,539 |
|
|
|
62,290,445 |
|
|
|
42,274,777 |
|
|
BEYOND MEAT, INC. AND
SUBSIDIARIESConsolidated Balance
Sheets(In thousands, except share and per share
data)(Unaudited)
|
December 31, |
|
2020 |
|
2019 |
Assets |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
159,127 |
|
|
|
$ |
275,988 |
|
|
Accounts receivable |
35,975 |
|
|
|
40,080 |
|
|
Inventory |
121,717 |
|
|
|
81,596 |
|
|
Prepaid expenses and other current assets |
15,407 |
|
|
|
5,930 |
|
|
Total current assets |
332,226 |
|
|
|
403,594 |
|
|
Property, plant, and
equipment, net |
115,299 |
|
|
|
47,474 |
|
|
Operating lease right-of-use
assets |
14,570 |
|
|
|
— |
|
|
Other non-current assets,
net |
5,911 |
|
|
|
855 |
|
|
Total assets |
$ |
468,006 |
|
|
|
$ |
451,923 |
|
|
Liabilities and Stockholders’
Equity: |
|
|
|
Current liabilities: |
|
|
|
Accounts payable |
$ |
53,071 |
|
|
|
$ |
26,923 |
|
|
Wages payable |
2,843 |
|
|
|
1,768 |
|
|
Accrued bonus |
57 |
|
|
|
4,129 |
|
|
Current portion of operating lease liabilities |
3,095 |
|
|
|
— |
|
|
Accrued expenses and other current liabilities |
4,830 |
|
|
|
3,805 |
|
|
Short-term borrowings under revolving credit facility |
25,000 |
|
|
|
— |
|
|
Short-term borrowings under revolving credit line and bank term
loan |
— |
|
|
|
11,000 |
|
|
Short-term finance lease liabilities |
71 |
|
|
|
72 |
|
|
Total current liabilities |
$ |
88,967 |
|
|
|
$ |
47,697 |
|
|
Long-term liabilities: |
|
|
|
Long-term portion of bank term loan, net |
$ |
— |
|
|
|
$ |
14,637 |
|
|
Equipment loan, net |
— |
|
|
|
4,932 |
|
|
Operating lease liabilities, net of current portion |
11,793 |
|
|
|
— |
|
|
Finance lease obligations and other long term liabilities |
149 |
|
|
|
567 |
|
|
Total long-term liabilities |
$ |
11,942 |
|
|
|
$ |
20,136 |
|
|
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 at December 31,
2020 and 2019; 62,820,351 and 61,576,494 shares issued and
outstanding at December 31, 2020 and 2019, respectively |
6 |
|
|
|
6 |
|
|
Additional paid-in
capital |
560,210 |
|
|
|
526,199 |
|
|
Accumulated deficit |
(194,867 |
) |
|
|
(142,115 |
) |
|
Accumulated other
comprehensive income |
1,748 |
|
|
|
— |
|
|
Total stockholders’ equity |
$ |
367,097 |
|
|
|
$ |
384,090 |
|
|
Total liabilities and stockholders’ equity |
$ |
468,006 |
|
|
|
$ |
451,923 |
|
|
|
|
|
|
BEYOND MEAT, INC. AND SUBSIDIARIES |
Consolidated Statements of Cash Flows |
(In thousands) |
(Unaudited) |
|
|
Year Ended December 31, |
|
|
2020 |
|
2019 |
Cash flows from operating
activities: |
|
|
|
|
Net loss |
|
$ |
(52,752 |
) |
|
|
$ |
(12,443 |
) |
|
Adjustments to reconcile net loss to net cash used in operating
activities: |
|
|
|
|
Depreciation and amortization |
|
13,299 |
|
|
|
8,106 |
|
|
Non-cash lease expense |
|
2,341 |
|
|
|
— |
|
|
Share-based compensation expense |
|
27,279 |
|
|
|
12,807 |
|
|
Loss on sale of fixed assets |
|
222 |
|
|
|
93 |
|
|
Amortization of debt issuance costs |
|
256 |
|
|
|
181 |
|
|
Loss on extinguishment of debt |
|
1,538 |
|
|
|
— |
|
|
Change in preferred and common stock warrant liabilities |
|
— |
|
|
|
12,503 |
|
|
Net change in operating assets and
liabilities: |
|
|
|
|
Accounts receivable |
|
4,516 |
|
|
|
(27,454 |
) |
|
Inventories |
|
(38,863 |
) |
|
|
(51,339 |
) |
|
Prepaid expenses and other assets |
|
(9,699 |
) |
|
|
(2,362 |
) |
|
Accounts payable |
|
16,027 |
|
|
|
10,149 |
|
|
Accrued expenses and other current liabilities |
|
(1,965 |
) |
|
|
2,743 |
|
|
Operating lease liabilities |
|
(2,194 |
) |
|
|
— |
|
|
Long-term liabilities |
|
— |
|
|
|
21 |
|
|
Net cash used in operating activities |
|
$ |
(39,995 |
) |
|
|
$ |
(46,995 |
) |
|
Cash flows used in
investing activities: |
|
|
|
|
Purchases of property, plant and equipment |
|
$ |
(57,696 |
) |
|
|
$ |
(23,795 |
) |
|
Asset acquisition |
|
(15,482 |
) |
|
|
— |
|
|
Purchases of property, plant and equipment held for sale |
|
(2,288 |
) |
|
|
(2,123 |
) |
|
Proceeds from sale of assets held for sale |
|
599 |
|
|
|
299 |
|
|
Payment of security deposits |
|
(33 |
) |
|
|
(545 |
) |
|
Net cash used in investing activities |
|
$ |
(74,900 |
) |
|
|
$ |
(26,164 |
) |
|
Cash flows from financing
activities: |
|
|
|
|
Proceeds from issuance of common stock pursuant to the initial
public offering, net of issuance costs |
|
$ |
— |
|
|
|
$ |
254,868 |
|
|
Proceeds from issuance of common stock pursuant to the secondary
public offering, net of issuance costs |
|
— |
|
|
|
37,394 |
|
|
Proceeds from revolving credit facility |
|
50,000 |
|
|
|
— |
|
|
Debt issuance costs |
|
(1,224 |
) |
|
|
— |
|
|
Debt extinguishment costs |
|
(1,200 |
) |
|
|
— |
|
|
Repayments on revolving credit facility |
|
(25,000 |
) |
|
|
— |
|
|
Repayments on revolving credit line |
|
(6,000 |
) |
|
|
— |
|
|
Repayment on term loan |
|
(20,000 |
) |
|
|
— |
|
|
Repayment of equipment loan |
|
(5,000 |
) |
|
|
— |
|
|
Principal payments under finance lease obligations |
|
(70 |
) |
|
|
(55 |
) |
|
Proceeds from exercise of stock options |
|
9,007 |
|
|
|
2,669 |
|
|
Payments of minimum withholding taxes on net share settlement of
equity awards |
|
(2,275 |
) |
|
|
— |
|
|
Net cash (used in) provided by financing activities |
|
$ |
(1,762 |
) |
|
|
$ |
294,876 |
|
|
Net (decrease) increase in
cash and cash equivalents |
|
$ |
(116,657 |
) |
|
|
$ |
221,717 |
|
|
Cash and cash equivalents at the beginning of the period |
|
275,988 |
|
|
|
54,271 |
|
|
Effect of exchange rate
changes on cash |
|
(204 |
) |
|
|
— |
|
|
Cash and cash equivalents at the end of the period |
|
$ |
159,127 |
|
|
|
$ |
275,988 |
|
|
|
|
|
|
|
Supplemental disclosures
of cash flow information: |
|
|
|
|
Cash paid during the period for: |
|
|
|
|
Interest |
|
$ |
2,564 |
|
|
|
$ |
3,019 |
|
|
Taxes |
|
$ |
18 |
|
|
|
$ |
9 |
|
|
Non-cash investing and financing activities: |
|
|
|
|
Capital lease obligations for the purchase of property, plant and
equipment |
|
$ |
— |
|
|
|
$ |
225 |
|
|
Non-cash additions to property, plant and equipment |
|
$ |
10,719 |
|
|
|
$ |
1,418 |
|
|
Operating lease right-of-use assets obtained in exchange for lease
liabilities |
|
$ |
4,706 |
|
|
|
$ |
— |
|
|
Note receivable from sale of assets held for sale |
|
$ |
4,558 |
|
|
|
$ |
— |
|
|
Reclassification of warrant liability to additional paid-in capital
in connection with the initial public offering |
|
$ |
— |
|
|
|
$ |
14,421 |
|
|
Conversion of convertible preferred stock to common stock upon
initial public offering |
|
$ |
— |
|
|
|
$ |
199,540 |
|
|
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 gross profit and Adjusted gross
margin
Adjusted gross profit is defined as net revenues less cost of
goods sold adjusted to exclude, when applicable, costs attributable
to COVID-19 which are not considered to be part of the Company’s
normal business activities. Adjusted gross margin is defined as
Adjusted gross profit divided by net revenues.
Adjusted gross profit and Adjusted gross margin are presented to
provide additional perspective on underlying trends in the
Company’s gross profit and gross margin, which we believe is useful
supplemental information for investors to be able to gauge and
compare the Company’s current business performance from one period
to another.
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
gross profit, Adjusted gross margin, 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 gross profit and Adjusted
gross margin 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 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 investment income, 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
gross profit and Adjusted gross margin to their most comparable
GAAP measures, gross profit and gross margin, respectively, as
reported (unaudited):
|
|
Three Months Ended |
|
Year Ended |
(in
thousands) |
|
December 31, 2020 |
|
December 31, 2019 |
|
December 31, 2020 |
|
December 31, 2019 |
Gross profit, as reported |
|
$ |
25,405 |
|
|
$ |
33,461 |
|
|
$ |
122,275 |
|
|
$ |
99,756 |
|
Repacking costs attributable
to COVID-19 |
|
— |
|
|
— |
|
|
6,572 |
|
|
— |
|
Inventory write-offs and
reserves attributable to COVID-19 |
|
3,719 |
|
|
— |
|
|
4,823 |
|
|
— |
|
Adjusted gross profit |
|
$ |
29,124 |
|
|
$ |
33,461 |
|
|
$ |
133,670 |
|
|
$ |
99,756 |
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Year Ended |
|
|
December 31, 2020 |
|
December 31, 2019 |
|
December 31, 2020 |
|
December 31, 2019 |
Gross margin, as reported |
|
24.9 |
% |
|
|
34.0 |
% |
|
|
30.1 |
% |
|
|
33.5 |
% |
Repacking costs attributable
to COVID-19, as a percentage of net revenues |
|
— |
% |
|
|
— |
% |
|
|
1.6 |
% |
|
|
— |
% |
Inventory write-offs and
reserves attributable to COVID-19, as a percentage of net
revenues |
|
3.6 |
% |
|
|
— |
% |
|
|
1.2 |
% |
|
|
— |
% |
Adjusted gross margin |
|
28.5 |
% |
|
|
34.0 |
% |
|
|
32.9 |
% |
|
|
33.5 |
% |
|
|
|
|
|
|
|
|
|
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 and net loss
per share available to common stockholders—diluted, respectively,
as reported (unaudited):
|
Three Months Ended |
|
Year Ended |
(in
thousands) |
December 31, 2020 |
|
December 31, 2019 |
|
December 31, 2020 |
|
December 31, 2019 |
Net loss, as reported |
$ |
(25,077 |
) |
|
$ |
(452 |
) |
|
$ |
(52,752 |
) |
|
$ |
(12,443 |
) |
Repacking costs attributable
to COVID-19 |
|
— |
|
|
|
— |
|
|
6,572 |
|
|
|
— |
|
Inventory write-offs and
reserves attributable to COVID-19 |
|
3,719 |
|
|
|
— |
|
|
4,823 |
|
|
|
— |
|
Product donations attributable
to COVID-19 relief efforts |
|
— |
|
|
|
— |
|
|
2,742 |
|
|
|
— |
|
Remeasurement of warrant
liability |
|
— |
|
|
|
— |
|
|
— |
|
|
12,503 |
|
Loss on extinguishment of
debt |
|
— |
|
|
|
— |
|
|
1,538 |
|
|
|
— |
|
Adjusted net (loss) income |
$ |
(21,358 |
) |
|
$ |
(452 |
) |
|
$ |
(37,077 |
) |
|
$ |
60 |
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Year Ended |
(in thousands, except
share and per share amounts) |
December 31, 2020 |
|
December 31, 2019 |
|
December 31, 2020 |
|
December 31, 2019 |
Numerator: |
|
|
|
|
|
|
|
Net loss, as reported |
$ |
(25,077 |
) |
|
$ |
(452 |
) |
|
$ |
(52,752 |
) |
|
$ |
(12,443 |
) |
Aggregate non-GAAP adjustments
as listed above |
3,719 |
|
|
— |
|
|
15,675 |
|
|
12,503 |
|
Adjusted net (loss) income
used in computing basic and diluted Adjusted net (loss) income per
diluted common share |
$ |
(21,358 |
) |
|
$ |
(452 |
) |
|
$ |
(37,077 |
) |
|
$ |
60 |
|
|
|
|
|
|
|
|
|
Denominator: |
|
|
|
|
|
|
|
Weighted average shares used
in computing Adjusted net (loss) income per common share,
basic |
|
62,723,875 |
|
|
|
61,229,539 |
|
|
|
62,290,445 |
|
|
|
42,274,777 |
|
Dilutive effect of shares
issuable under options and RSUs |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
5,110,713 |
|
Weighted average shares used
in computing Adjusted net (loss) income per common share,
diluted |
62,723,875 |
|
|
61,229,539 |
|
|
62,290,445 |
|
|
47,385,490 |
|
Adjusted net (loss) income per
diluted common share |
$ |
(0.34 |
) |
|
$ |
(0.01 |
) |
|
$ |
(0.60 |
) |
|
$ |
— |
|
|
Three Months Ended |
|
Year Ended |
|
December 31, 2020 |
|
December 31, 2019 |
|
December 31, 2020 |
|
December 31, 2019 |
Net loss per share available to common stockholders—diluted, as
reported |
$ |
(0.40 |
) |
|
$ |
(0.01 |
) |
|
$ |
(0.85 |
) |
|
$ |
(0.29 |
) |
Repacking costs attributable
to COVID-19 |
— |
|
|
— |
|
|
0.11 |
|
|
— |
|
Inventory write-offs and
reserves attributable to COVID-19 |
0.06 |
|
|
— |
|
|
0.08 |
|
|
— |
|
Product donations attributable
to COVID-19 relief efforts |
— |
|
|
— |
|
|
0.04 |
|
|
— |
|
Remeasurement of warrant
liability |
— |
|
|
— |
|
|
— |
|
|
0.29 |
|
Loss on extinguishment of
debt |
— |
|
|
— |
|
|
0.02 |
|
|
— |
|
Adjusted net (loss) income per
diluted common share |
$ |
(0.34 |
) |
|
$ |
(0.01 |
) |
|
$ |
(0.60 |
) |
|
$ |
— |
|
|
|
|
|
|
|
|
|
The following table presents the reconciliation of Adjusted
EBITDA to its most comparable GAAP measure, net loss, as reported
(unaudited):
|
|
Three Months Ended |
|
Year Ended |
(in
thousands) |
|
December 31, 2020 |
|
December 31, 2019 |
|
December 31, 2020 |
|
December 31, 2019 |
Net loss, as reported |
|
$ |
(25,077 |
) |
|
|
$ |
(452 |
) |
|
|
$ |
(52,752 |
) |
|
|
$ |
(12,443 |
) |
|
Income tax expense
(benefit) |
|
2 |
|
|
|
(12 |
) |
|
|
72 |
|
|
|
9 |
|
|
Interest expense |
|
613 |
|
|
|
742 |
|
|
|
2,576 |
|
|
|
3,071 |
|
|
Depreciation and amortization
expense |
|
4,023 |
|
|
|
2,126 |
|
|
|
13,299 |
|
|
|
8,106 |
|
|
Restructuring expenses(1) |
|
402 |
|
|
|
1,309 |
|
|
|
6,430 |
|
|
|
4,869 |
|
|
Share-based compensation
expense |
|
6,902 |
|
|
|
7,000 |
|
|
|
27,279 |
|
|
|
12,807 |
|
|
Expenses attributable to
COVID-19(2) |
|
3,719 |
|
|
|
— |
|
|
|
14,137 |
|
|
|
— |
|
|
Remeasurement of warrant
liability |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
12,503 |
|
|
Other, net(3) |
|
(70 |
) |
|
|
(1,205 |
) |
|
|
759 |
|
|
|
(3,629 |
) |
|
Adjusted EBITDA |
|
$ |
(9,486 |
) |
|
|
$ |
9,508 |
|
|
|
$ |
11,800 |
|
|
|
$ |
25,293 |
|
|
Net loss as a % of net
revenues |
|
(24.6 |
) |
% |
|
(0.5 |
) |
% |
|
(13.0 |
) |
% |
|
(4.2 |
) |
% |
Adjusted EBITDA as a % of net
revenues |
|
(9.3 |
) |
% |
|
9.7 |
|
% |
|
2.9 |
|
% |
|
8.5 |
|
% |
(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 |
) |
Comprised of $3.7 million in
costs attributable to COVID-19, stemming from inventory write-offs
and reserves associated with foodservice products determined to be
unsalable in the three months ended December 31, 2020, and $14.1
million in costs attributable to COVID-19 consisting of $6.6
million in product repacking costs, $4.8 million in inventory
write-offs and reserves associated with foodservice products
determined to be unsalable, and $2.7 million in product donation
costs related to our COVID-19 relief efforts in the twelve months
ended December 31, 2020. Expenses attributable to COVID-19 in the
twelve months ended December 31, 2020 include $1.2 million in
product donation costs related to the Company's COVID-19 relief
efforts in the first quarter of 2020, which were not previously
included in the Company's Adjusted EBITDA calculation for the three
months ended March 28, 2020 as these were deemed immaterial to its
first quarter 2020 financial results. Given the significant
increase in COVID-19-related expenses in the subsequent quarters of
2020, and to facilitate better comparison from period to period,
management determined that it was appropriate to recast its
previous first quarter 2020 Adjusted EBITDA calculation to include
these costs. |
(3 |
) |
Includes $1.5 million in loss on
extinguishment of debt in the year ended December 31, 2020. |
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