Marrone Bio Innovations, Inc. (“MBI” or the “Company”)
(NASDAQ:MBII), a leading provider of bio-based pest management and
plant health products for the agriculture, turf and ornamental and
water treatment markets, has provided its financial results for the
third quarter ended September 30, 2017 and a corporate update.
Financial Highlights
- GAAP revenues grew 31% to $14.8 million for the first nine
months of 2017, compared to $11.4 million in the same year-ago
period. GAAP revenues increased 16% to $4.2 million in the third
quarter of 2017, compared to $3.6 million in the third quarter of
2016.
- Product shipments1 grew 36% to $15.2 million for the first nine
months of 2017, compared to $11.2 million in the same year-ago
period. Product shipments were $3.1 million in the third quarter of
2017, compared to $3.1 million in the third quarter of 2017.
- Gross margin increased to 41.2% for the first nine months of
2017, compared to 30.6% in the same year-ago period. Gross margin
increased significantly to 40.9% in the third quarter of 2017,
compared to 31.4% in the third quarter of 2016.
- In October 2017, the Company entered into an unsecured
promissory note with an investor, enabling the funding of certain
tranches at the lender’s sole discretion. To date, the Company has
received $2.0 million in funding under the note.
1See notes at the end of this release for additional information
related to non-GAAP financial measures.
Management Commentary
“We experienced several noteworthy catalysts in the third
quarter of 2017, such as completion of our Grandevo WDG granulation
line, as well as receiving EPA registration for MBI-110, which is
the seventh product we’ve commercialized in 11 years,” said Dr. Pam
Marrone, CEO of MBI. “Despite these major events, unfavorable
weather conditions reduced the number of expected sprays in several
of our key markets. Historically, the third quarter produces the
lowest sales of the year and is the most unpredictable, evidenced
by hurricanes Irma and Maria which significantly impacted our sales
in Florida and Puerto Rico. Fortunately, our portfolio approach to
product development and marketing diversifies our revenue base and
reduces the impact of any one variable on the success of the
company as a whole, and allowed us to achieve above
industry-average growth for the first nine months of 2017.
“We remain positive on the long-term outlook of our business and
have made significant progress in penetrating the United States
market and abroad. To that end, we have greatly expanded our reach
in international markets through select partnerships with
regionally significant firms such as ÉLÉPHANT VERT in North Africa,
Kenya Biologics in Kenya and Tanzania. We have taken significant
steps to increase product awareness in the substantial Central and
South American market, such as sponsoring grower education events
in Honduras and Chile, as well as successfully advancing field
trials in Brazil, which have shown tremendous results to-date.
“We’ve also made an immense amount of progress on the R&D
front and are near completing the development of our first
generation bio-herbicide, MBI-014, which remains on track for EPA
submission in the near-term. MBI-014 will address one of the
largest needs of organic farming—controlling weeds—and we believe
it will be the first new mode of action herbicide in 25 years. Also
in the third quarter, on October 27, 2017, we received EPA
registration for MBI-110—which we branded ‘Stargus™’, for specialty
crops and ‘Amplitude™’ for row crops. To our knowledge, no other
agricultural company has successfully commercialized 7 new
agricultural products from 6 active ingredients in such a short
amount of time."
Dr. Marrone concluded: “These R&D advancements, paired with
the considerable progress in advancing distribution and product
awareness, are translating into greater market opportunities and
enhanced potential to create shareholder value.”
Recent Operational Highlights
- Realized exceptional results from field trials in Brazil for
Regalia®, Grandevo®, Majestene®, and Venerate®. MBI now anticipates
a clear path to completion of the registration process in the
country, paving the way to commercial sales in the large Brazilian
crop protection market.
- Received EPA registration for MBI-110, branded “Stargus™” for
specialty crops and “Amplitude™” for row crops. MBI plans to launch
Stargus™ in the United States market in 2017.
- Completed the development of MBI-014 (formerly 010), an organic
bio-herbicide that is set for an EPA submission in the
near-term.
- Albaugh, a major row crop seed treatment provider, had a
successful first season with the BioST seed treatment containing an
MBI microorganism. Preliminary results are positive and point to
substantial yield increases over the standards.
- Developed a strategy and focus to address grower demand of MBI
products within the cannabis market through the creation of smaller
pack sizes, hiring a cannabis segment sales specialist and
utilizing Amazon as a direct-to-consumer sales channel.
- As part of MBI’s collaboration with Evogene, transgenic plants
carrying MBI’s insecticidal genes were developed and one candidate
showed promising results (100% kill) against cabbage looper.
Additional tests are in progress.
- Joined a pilot project with AgShift, a Santa Clara-based
agriculture technology startup, to assess the impact of the use of
biological pesticides on the quality of fresh produce.
- Signed new distribution agreements in Africa with regionally
significant firms such as ÉLÉPHANT VERT in North Africa and Kenya
Biologics in Kenya and Tanzania.
- Finalized a distribution agreement with a large water treatment
company for Zequanox.
- Currently in discussions with several food companies about how
to best transition growers to organic and help their grower
suppliers with specific pest and disease problems.
- Sponsored educational symposia for growers in Honduras and
Chile with prominent local organizations to spread awareness of
modern agricultural production technologies, including the use of
biopesticides and stimulants in specialty crops.
- Completed construction of the Grandevo WDG granulation line at
MBI’s Marrone Michigan Manufacturing facility. This is currently
producing a second-generation formulation to allow MBI to meet
anticipated demand for this innovative new formulation.
- Discovered new methods to increase the potency of Majestene and
Grandevo, driving notably higher gross margins and increasing the
effective capacity of the Marrone Michigan Manufacturing
facility.
Conference Call and Webcast
Management will host a conference call today, Monday, November
13, 2017 at 1:30 p.m. PST (4:30 p.m. EST) to discuss Marrone Bio
Innovation’s third quarter 2017 financial results, provide a
corporate update, and conclude with a Q&A from participants. To
participate, please use the following information:
Q3 2017 Conference Call and Webcast
Date: Monday, November 13, 2017Time: 1:30 p.m. Pacific time
(4:30 p.m. Eastern time)U.S. Dial-in: 1-800-479-9001International
Dial-in: 1-719-785-1753Conference ID: 5788421Webcast:
http://public.viavid.com/index.php?id=126906
Please dial in at least 10 minutes before the start of the call
to ensure timely participation.
A playback of the call will be available through December 13,
2017. To listen, call 1-844-512-2921 within the United States or
1-412-317-6671 when calling internationally. Please use the replay
pin number 5788421. A webcast will also be available for 30 days on
the IR section of the Marrone Bio Innovations website or by
clicking here: MBII Q3 2017 Webcast.
Non-GAAP Financial Measures
The Company uses product shipments, which is not defined by, or
presented in accordance with, generally accepted accounting
principles (“GAAP”), to evaluate various aspects of its business.
Product shipments is a non-GAAP financial measure and should be
considered in addition to, not as a substitute for, product
revenues reported in accordance with GAAP. Product shipments as
used in this press release is defined as product revenues, plus
related party product revenues, if any, plus the incremental amount
of deferred revenues accrued during the applicable period. This
calculation specifically excludes changes in deferred revenue
related to license revenues and customer deposits, and is intended
to approximate the total value of products sold and under contract
for sale in a given period. Product shipments, as defined by the
Company, may not be comparable to similarly titled measures used by
other companies. The Company’s management uses this non-GAAP
financial measure in order to have comparable results to analyze
sales performance from quarter to quarter. The Company has chosen
to provide this supplemental information regarding its sales in a
given period to investors to facilitate a meaningful evaluation of
actual operating results on a comparable basis with historical
results, including to track product adoption, and to assist
investors in their valuation of the Company. In future periods, the
calculation of product shipments may be different than in this
release.
|
|
THREE MONTHS ENDEDSEPTEMBER
30, |
|
|
NINE MONTHS ENDEDSEPTEMBER
30, |
|
|
|
|
|
|
|
|
|
|
2017 |
|
|
2016 |
|
|
2017 |
|
|
2016 |
|
Product revenues |
|
$ |
4,161 |
|
|
$ |
3,549 |
|
|
$ |
14,675 |
|
|
$ |
11,083 |
|
Change in deferred
product revenue(a) |
|
|
(1,108 |
) |
|
|
(452 |
) |
|
|
516 |
|
|
|
68 |
|
Product shipments |
|
$ |
3,053 |
|
|
$ |
3,097 |
|
|
$ |
15,191 |
|
|
$ |
11,151 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Change in deferred product revenue is defined as the
increase in the amount of deferred product revenues accrued during
the applicable period, less prior deferred product revenues
recognized during the applicable period, excluding the change in
deferred revenue associated with license fees and customer
deposits. For the three months ended September 30, 2017 and 2016,
deferred license revenues decreased $58,000 and $85,000,
respectively, and $174,000 and $269,000 for the nine months ended
September 30, 2017 and 2016, respectively.
The use of product shipments has certain limitations. The
Company's presentation of this non-GAAP financial measure may be
different from the presentation used by other companies, and
therefore comparability may be limited. We compensate for these
limitations by providing the relevant disclosure of our product
revenues, related party revenues, deferred revenues and other items
both in our reconciliations to the historical GAAP financial
measures and in our consolidated financial statements, all of which
should be considered when evaluating our performance. Product
shipments are used in addition to and in conjunction with results
presented in accordance with GAAP, and should not be considered as
an alternative to product revenues, deferred revenues, total
revenues, operating income, or any other operating performance
measure prescribed by GAAP, nor should these measures be relied
upon to the exclusion of GAAP financial measures. Product shipments
reflects an additional way of viewing our operations that we
believe, when viewed with our GAAP results and the reconciliations
to the corresponding historical GAAP financial measures, provides a
more complete understanding of factors and trends affecting our
business than could be obtained absent this disclosure. Management
strongly encourages investors to review our financial information
in its entirety, including the attached unaudited condensed
consolidated financial statements, and not to rely on a single
financial measure.
About Marrone Bio Innovations Smart.
Natural. Solutions.
Marrone Bio Innovations, Inc. (NASDAQ:MBII) strives to lead the
movement to a more sustainable world through the discovery,
development and promotion of biological products for pest
management and plant health. MBI’s effective and environmentally
responsible pest management solutions help customers operate more
sustainably while uniquely improving plant health and increasing
crop yields. MBI currently has six commercially available products
(Regalia®, Grandevo®, Venerate®, Majestene®, Haven™ and Zequanox®),
with Stargus™ planned for launch later in 2017 as well as seven
other product candidates in various stages of the company’s rapid
development pipeline. MBI also distributes Bio-tam 2.0® for Isagro
USA in the western U.S. and Jet-Ag® for Jet Harvest in most regions
of the U.S.
Marrone Bio Innovations is dedicated to pioneering smart
biopesticide solutions that support a better tomorrow for both
farmers and consumers around the globe. For more information,
please visit www.marronebio.com.
Marrone Bio Innovations Forward Looking
Statements
This press release contains forward-looking statements that
involve substantial risks and uncertainties. All statements,
other than statements of historical facts, included in this press
release regarding strategy, future operations and plans, including
assumptions underlying such statements, are forward-looking
statements, and should not be relied upon as representing MBI’s
views as of any subsequent date. Examples of such statements
include statements regarding sales of the Company’s products, the
impact of the Company’s portfolio development strategy, planned
regulatory submissions and potential approvals, anticipated product
launches, including for MBI-110, the potential benefits of the
Company’s products, MBI’s efforts with respect to marketing in U.S.
and international markets, potential third-party
collaborations, and any future payments under the Company’s
unsecured promissory note. Such forward-looking statements are
based on information available to the Company as of the date of
this release and involve a number of risks and uncertainties, some
beyond the Company's control, that could cause actual results to
differ materially from those anticipated by these forward-looking
statements, including consumer, regulatory and other factors
affecting demand for the Company’s products, any difficulty in
marketing MBI’s products in global markets, competition in the
market for pest management products, lack of understanding of
bio-based pest management products by customers and growers, and
adverse decisions by regulatory agencies and other relevant third
parties, and any inability to raise capital to fund operations and
service the Company’s debt. Additional information that could
lead to material changes in MBI’s performance is contained in its
filings with the SEC. MBI is under no obligation to, and
expressly disclaims any responsibility to, update or alter
forward-looking statements contained in this release, whether as a
result of new information, future events or otherwise.
Marrone Bio Innovations Contacts:
Pam Marrone, CEO and FounderJulie Versman, Sr. Director of
International BusinessTelephone: +1 (530) 750-2800Email:
Info@marronebio.com
Investor Relations:
Greg FalesnikManaging DirectorMZ Group – MZ North AmericaMain:
949-385-6449
MBII@mzgroup.us
www.mzgroup.us
MARRONE BIO INNOVATIONS, INC. |
Condensed Consolidated Balance
Sheets |
(In Thousands, Except Par Value) |
|
|
|
SEPTEMBER
30,2017 |
|
|
DECEMBER 31,2016 |
|
|
|
(Unaudited) |
|
|
|
|
Assets |
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
Cash and
cash equivalents |
|
$ |
3,737 |
|
|
$ |
9,609 |
|
Restricted cash, current portion |
|
|
933 |
|
|
|
1,444 |
|
Accounts
receivable |
|
|
1,869 |
|
|
|
3,592 |
|
Inventories, net |
|
|
9,333 |
|
|
|
8,482 |
|
Deferred
cost of product revenues |
|
|
2,943 |
|
|
|
2,688 |
|
Prepaid
expenses and other current assets |
|
|
641 |
|
|
|
1,060 |
|
Total current
assets |
|
|
19,456 |
|
|
|
26,875 |
|
Property,
plant and equipment, net |
|
|
16,155 |
|
|
|
17,343 |
|
Restricted cash, less current portion |
|
|
1,560 |
|
|
|
1,560 |
|
Other
assets |
|
|
224 |
|
|
|
205 |
|
Total assets |
|
$ |
37,395 |
|
|
$ |
45,983 |
|
Liabilities and
stockholders' deficit |
|
|
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
|
|
|
Accounts
payable |
|
$ |
2,692 |
|
|
$ |
1,385 |
|
Accrued
liabilities |
|
|
8,296 |
|
|
|
5,508 |
|
Accrued
interest due to related parties |
|
|
815 |
|
|
|
1,618 |
|
Deferred
revenue, current portion |
|
|
5,698 |
|
|
|
5,647 |
|
Capital
lease obligations, current portion |
|
|
— |
|
|
|
839 |
|
Debt due
to related parties, current portion |
|
|
8,882 |
|
|
|
— |
|
Debt,
current portion |
|
|
1,692 |
|
|
|
252 |
|
Total current
liabilities |
|
|
28,075 |
|
|
|
15,249 |
|
Deferred
revenue, less current portion |
|
|
2,077 |
|
|
|
1,787 |
|
Debt,
less current portion |
|
|
21,004 |
|
|
|
21,083 |
|
Debt due
to related parties, less current portion |
|
|
28,649 |
|
|
|
36,667 |
|
Other
liabilities |
|
|
1,250 |
|
|
|
1,381 |
|
Total liabilities |
|
|
81,055 |
|
|
|
76,167 |
|
Commitments and
contingencies (Note 9) |
|
|
|
|
|
|
|
|
Stockholders'
deficit: |
|
|
|
|
|
|
|
|
Preferred
stock: $0.00001 par value; 20,000 shares authorized and no shares
issued or outstanding at September 30, 2017 and December 31,
2016 |
|
|
— |
|
|
|
— |
|
Common
stock: $0.00001 par value; 250,000 shares authorized, 31,351 shares
issued and outstanding as of September 30, 2017 and 24,661 as of
December 31, 2016 |
|
|
— |
|
|
|
— |
|
Additional paid in capital |
|
|
214,531 |
|
|
|
204,463 |
|
Accumulated deficit |
|
|
(258,191 |
) |
|
|
(234,647 |
) |
Total stockholders'
deficit |
|
|
(43,660 |
) |
|
|
(30,184 |
) |
Total liabilities and
stockholders' deficit |
|
$ |
37,395 |
|
|
$ |
45,983 |
|
MARRONE BIO INNOVATIONS, INC. |
|
Condensed Consolidated Statements of
Operations |
|
(In Thousands, Except Per Share Amounts) |
|
(Unaudited) |
|
|
|
|
|
THREE MONTHS ENDEDSEPTEMBER
30, |
|
|
NINE MONTHS ENDEDSEPTEMBER
30, |
|
|
|
2017 |
|
|
2016 |
|
|
2017 |
|
|
2016 |
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product |
|
$ |
4,161 |
|
|
$ |
3,549 |
|
|
$ |
14,675 |
|
|
$ |
11,083 |
|
License |
|
|
58 |
|
|
|
85 |
|
|
|
174 |
|
|
|
269 |
|
Total revenues |
|
|
4,219 |
|
|
|
3,634 |
|
|
|
14,849 |
|
|
|
11,352 |
|
Cost of
product revenues |
|
|
2,492 |
|
|
|
2,493 |
|
|
|
8,737 |
|
|
|
7,880 |
|
Gross profit |
|
|
1,727 |
|
|
|
1,141 |
|
|
|
6,112 |
|
|
|
3,472 |
|
Operating
Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research,
development and patent |
|
|
3,152 |
|
|
|
2,662 |
|
|
|
8,449 |
|
|
|
7,297 |
|
Selling,
general and administrative |
|
|
5,174 |
|
|
|
3,754 |
|
|
|
15,590 |
|
|
|
13,796 |
|
Total operating
expenses |
|
|
8,326 |
|
|
|
6,416 |
|
|
|
24,039 |
|
|
|
21,093 |
|
Loss from
operations |
|
|
(6,599 |
) |
|
|
(5,275 |
) |
|
|
(17,927 |
) |
|
|
(17,621 |
) |
Other income
(expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income |
|
|
— |
|
|
|
8 |
|
|
|
1 |
|
|
|
33 |
|
Interest
expense |
|
|
(804 |
) |
|
|
(755 |
) |
|
|
(2,309 |
) |
|
|
(2,264 |
) |
Interest
expense to related parties |
|
|
(1,098 |
) |
|
|
(1,099 |
) |
|
|
(3,257 |
) |
|
|
(3,265 |
) |
Other
expense, net |
|
|
(29 |
) |
|
|
(81 |
) |
|
|
(52 |
) |
|
|
(144 |
) |
Total other expense,
net |
|
|
(1,931 |
) |
|
|
(1,927 |
) |
|
|
(5,617 |
) |
|
|
(5,640 |
) |
Loss before income
taxes |
|
|
(8,530 |
) |
|
|
(7,202 |
) |
|
|
(23,544 |
) |
|
|
(23,261 |
) |
Income taxes |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Net loss |
|
$ |
(8,530 |
) |
|
$ |
(7,202 |
) |
|
$ |
(23,544 |
) |
|
$ |
(23,261 |
) |
Basic and diluted net
loss per common share |
|
$ |
(0.27 |
) |
|
$ |
(0.29 |
) |
|
$ |
(0.83 |
) |
|
$ |
(0.95 |
) |
Weighted-average shares
outstanding used in computing net loss per common share |
|
|
31,351 |
|
|
|
24,460 |
|
|
|
28,507 |
|
|
|
24,603 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MARRONE BIO INNOVATIONS, INC. |
|
|
Condensed Consolidated Statements of Cash
Flows |
|
|
(In Thousands) |
|
|
(Unaudited) |
|
|
|
|
NINE MONTHS
ENDED |
|
|
|
|
SEPTEMBER
30, |
|
|
|
|
2017 |
|
|
2016 |
|
|
Cash flows from
operating activities |
|
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(23,544 |
) |
|
$ |
(23,261 |
) |
|
Adjustments to
reconcile net loss to net cash used in operating |
|
|
|
|
|
|
|
|
|
activities: |
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
1,540 |
|
|
|
1,696 |
|
|
Loss
(gain) on disposal of equipment, net |
|
|
365 |
|
|
|
135 |
|
|
Share-based compensation |
|
|
1,724 |
|
|
|
2,025 |
|
|
Non-cash
interest expense |
|
|
1,130 |
|
|
|
990 |
|
|
Net
changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
|
Accounts
receivable |
|
|
1,723 |
|
|
|
292 |
|
|
Inventories |
|
|
(851 |
) |
|
|
659 |
|
|
Prepaid
expenses and other assets |
|
|
420 |
|
|
|
172 |
|
|
Deferred
cost of product revenues |
|
|
(255 |
) |
|
|
(88 |
) |
|
Accounts
payable |
|
|
1,282 |
|
|
|
223 |
|
|
Accrued
and other liabilities |
|
|
2,491 |
|
|
|
(1,555 |
) |
|
Accrued
interest due to related parties |
|
|
(803 |
) |
|
|
(362 |
|
|
Deferred
revenue |
|
|
341 |
|
|
|
892 |
|
|
Deferred
revenue from related parties |
|
|
— |
|
|
|
(168 |
) |
|
Net cash used in
operating activities |
|
|
(14,437 |
) |
|
|
(18,350 |
) |
|
Cash flows from
investing activities |
|
|
|
|
|
|
|
|
|
Purchases of property,
plant and equipment |
|
|
(391 |
) |
|
|
(169 |
) |
|
Sale of property, plant
and equipment |
|
|
15 |
|
|
|
— |
|
|
Net cash used in
investing activities |
|
|
(376 |
) |
|
|
(169 |
) |
|
Cash flows from
financing activities |
|
|
|
|
|
|
|
|
|
Proceeds from issuance
of common stock, net of offering costs |
|
|
8,188 |
|
|
|
— |
|
|
Repayment of debt |
|
|
(340 |
) |
|
|
(195 |
) |
|
Proceeds from secured
borrowings |
|
|
7,831 |
|
|
|
— |
|
|
Reductions in secured
borrowings |
|
|
(6,631 |
) |
|
|
— |
|
|
Financing costs |
|
|
(215 |
) |
|
|
|
|
|
Repayment of capital
leases |
|
|
(420 |
) |
|
|
(549 |
) |
|
Change in restricted
cash |
|
|
511 |
|
|
|
15,412 |
|
|
Exercise of stock
options |
|
|
17 |
|
|
|
26 |
|
|
Net cash provided by
financing activities |
|
|
8,941 |
|
|
|
14,694 |
|
|
Net decrease in cash
and cash equivalents |
|
|
(5,872 |
) |
|
|
(3,825 |
) |
|
Cash and cash
equivalents, beginning of period |
|
|
9,609 |
|
|
|
19,838 |
|
|
Cash and cash
equivalents, end of period |
|
$ |
3,737 |
|
|
$ |
16,013 |
|
|
Supplemental disclosure
of cash flow information |
|
|
|
|
|
|
|
|
|
Cash paid
for interest |
|
$ |
5,231 |
|
|
$ |
4,881 |
|
|
Supplemental disclosure
of non-cash investing and financing |
|
|
|
|
|
|
|
|
|
activities |
|
|
|
|
|
|
|
|
|
Property, plant and
equipment included in accounts payable and |
|
|
|
|
|
|
|
|
|
accrued
liabilities |
|
$ |
331 |
|
|
$ |
21 |
|
|
Equipment acquired
under capital leases |
|
$ |
— |
|
|
$ |
1,586 |
|
|
Equipment acquired with
debt |
|
$ |
495 |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
Marrone Bio Innovations (NASDAQ:MBII)
Historical Stock Chart
From Mar 2024 to Apr 2024
Marrone Bio Innovations (NASDAQ:MBII)
Historical Stock Chart
From Apr 2023 to Apr 2024