Marrone Bio Innovations, Inc. Reports First-Quarter 2019 Financial Results
May 09 2019 - 4:05PM
Marrone Bio Innovations, Inc. (NASDAQ: MBII), an
international leader in sustainable biopesticide and plant health
solutions, has provided its financial results for the first quarter
ended March 31, 2019.
Selected Operating and Financial
Highlights
$ in millions |
Q12019 |
Q12018 |
% Increase(Decrease) |
Revenues |
$8.7 |
$4.3 |
102% |
Gross Profit |
$5.0 |
$2.1 |
140% |
Gross Margin |
57.2% |
48.1% |
+907 bps |
Operating Expenses |
$8.6 |
$7.6 |
14% |
Loss from Operations |
$(3.6) |
$(5.5) |
(34%) |
Net Loss |
$(3.9) |
$(5.3) |
(25%) |
Cash Used in Operations |
$7.7 |
$9.7 |
(22%) |
Q1 2019 Financial Highlights
- Revenues in the first quarter of 2019 improved by 102 percent
to $8.7 million, compared with $4.3 million in the first quarter of
2018. The record quarterly sales were led by continued
adoption of the Venerate family of products, both for foliar
applications in vegetables and for soil- and seed-applied
applications in row crops. Revenues also benefited from
placement of Grandevo for in-season insect control in fruits and
vegetables, as well as expanded market reach for Regalia to treat
fungal diseases in trees, nuts and vines.
- Gross margins reached 57.2 percent, benefiting from the higher
net revenue and higher mix of the Venerate family of products and
better manufacturing efficiencies.
- The 14 percent increase in operating expenses reflected planned
investments in the commercial organization and programs, and in
field trials for key research and development projects, including a
new proprietary biological herbicide. This increase was
offset somewhat by a decrease in accounting and other professional
consulting fees in the first quarter of 2019.
- Net loss in the first quarter of 2019 was $3.9 million, or
$(0.04) per share, compared with a net loss of $5.3 million, or
$(0.07) per share, in the first quarter of 2018.
- On a comparative basis, the first quarter of 2018 included a
non-recurring net benefit of $1.8 million to other income related
to the Company’s comprehensive financing and debt restructuring
transactions. Additionally, the diluted weighted-average
shares outstanding in the first quarter of 2019 were 110.7 million
shares, compared with 74.6 million shares in the first quarter of
2018.
- Cash used in operations for the first quarter of 2019 was $7.7
million, compared with cash used in operations of $9.7 million in
the first quarter of 2018. The use of operating cash in the
first quarter of 2019 reflected greater working capital
requirements related to increased sales.
Management Commentary“We have put a solid
foundation in place – technically, commercially and financially –
to drive revenue growth this year and set the stage for longer term
growth. Our first-quarter results are a solid start to what
we believe can be a transformative year for Marrone Bio,” said Dr.
Pam Marrone, chief executive officer of Marrone Bio
Innovations.
“As we broaden our customer outreach and distribution network,
we expand our ability to sell our products for multiple uses within
a given crop,” she added. “We have the technical flexibility
to offer our products in combination with complementary traditional
agricultural solutions or with other compatible biocontrol or
biostimulant offerings, thus enhancing our revenue-generating
capabilities.” Operational
Highlights
- Regalia’s label in Brazil was expanded to control fungal and
bacterial diseases on lettuces, carrots, papayas, mangoes,
watermelons, sweet peppers and grapes.
- Regalia Maxx biofungicide was approved for use on cannabis in
Canada.
- Distribution agreements for Regalia Maxx were reached with
Plant Products, a full-service greenhouse supplier, for eastern and
central Canada; and with TerraLink, a leading supplier of crop
input products, for western Canada.
- Venerate CG label was approved by the California Department of
Pesticide Regulation (DPR) for use on cannabis.
Conference Call and Webcast
Management will host an investor conference call
at 1:30 p.m. PDT (4:30 p.m. EDT) today, May 9, 2019, to discuss
Marrone Bio Innovations’ first quarter 2019 financial results and
provide a corporate update, and will conclude with a Q&A from
participants. To participate, please use the following
information:
Q1 2019 Conference Call and Webcast Date:
Thursday, May 9, 2019 Time: 1:30 p.m. Pacific time (4:30 p.m.
Eastern time) U.S. Dial-in: 1-800-263-0877 International Dial-in:
1-323-794-2094 Conference ID: 7937030 Webcast:
http://public.viavid.com/index.php?id=133556
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
June 9, 2019. 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 7937030. A webcast will also be available for
30 days on the IR section of the Marrone Bio Innovations website or
by clicking here: MBII Q1 2019 Webcast.
About Marrone Bio
Innovations Marrone Bio
Innovations, Inc. (NASDAQ: MBII) (MBI) strives to lead the movement
to a more sustainable world through the discovery, development and
sale of innovative biological products for crop protection, plant
health and waterway systems treatment that support a better
tomorrow for farmers, turf managers and consumers around the globe.
MBI has screened over 18,000 microorganisms and 350 plant extracts,
leveraging its in-depth knowledge of plant and soil microbiomes
enhanced by advanced molecular technologies to rapidly develop
seven effective and environmentally responsible pest management
products to help customers operate more sustainably while uniquely
improving plant health and increasing crop yields. Supported by a
robust portfolio of over 400 issued and pending patents around its
superior natural product chemistry, MBI’s currently available
commercial products are Regalia®, Stargus® and Amplitude®,
Grandevo®, Venerate®, Majestene® and Zelto®, Haven®, and Zequanox®,
all of which are registered trademarks of Marrone Bio
Innovations.
Learn more about Marrone Bio Innovations
at www.marronebio.com. We also use our investor relations
website, https://investors.marronebio.com, as well as our corporate
Twitter account, @Marronebio, as means of disclosing material
non-public information, and encourage our investors and others to
monitor and review the information we make public in these
locations. Follow us on social
media: Twitter, LinkedIn and Instagram.
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 management’s
proposed deliverables for 2019, the Company’s positioning for
becoming a commercial leader, and the potential benefits of the
Company’s products. 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. Additional information that could lead to material
changes in MBI’s performance is contained in its filings with the
Securities and Exchange Commission. 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 FounderJim Boyd, President and CFOTelephone: +1 (530)
750-2800Email: Info@marronebio.com
Investor Relations:Greg FalesnikManaging
DirectorMZ Group – MZ North AmericaMain:
949-385-6449MBII@mzgroup.us
MARRONE BIO INNOVATIONS,
INC.Condensed Consolidated Balance
Sheets(In Thousands, Except Par Value)
|
|
MARCH 31, |
|
|
DECEMBER 31, |
|
|
|
2019 |
|
|
2018 |
|
|
|
(Unaudited) |
|
|
|
|
Assets |
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
13,586 |
|
|
$ |
18,221 |
|
Accounts receivable |
|
|
8,759 |
|
|
|
2,720 |
|
Inventories, net |
|
|
7,554 |
|
|
|
8,224 |
|
Prepaid expenses and other current assets |
|
|
1,310 |
|
|
|
971 |
|
Total current assets |
|
|
31,209 |
|
|
|
30,136 |
|
Property, plant and equipment,
net |
|
|
14,132 |
|
|
|
14,512 |
|
Right of use assets, net |
|
|
5,126 |
|
|
|
— |
|
Restricted cash |
|
|
1,560 |
|
|
|
1,560 |
|
Other assets |
|
|
356 |
|
|
|
359 |
|
Total assets |
|
$ |
52,383 |
|
|
$ |
46,567 |
|
|
|
|
|
|
|
|
|
|
Liabilities and
stockholders’ equity |
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
2,377 |
|
|
$ |
1,692 |
|
Accrued liabilities |
|
|
7,015 |
|
|
|
6,871 |
|
Deferred revenue, current portion |
|
|
379 |
|
|
|
438 |
|
Lease liability, current portion |
|
|
752 |
|
|
|
— |
|
Debt, current portion, net |
|
|
5,541 |
|
|
|
2,318 |
|
Total current liabilities |
|
|
16,064 |
|
|
|
11,319 |
|
Deferred revenue, less current portion |
|
|
2,327 |
|
|
|
2,399 |
|
Lease liability, less current portion |
|
|
4,607 |
|
|
|
- |
|
Debt, less current portion, net |
|
|
11,732 |
|
|
|
11,819 |
|
Debt due to related parties |
|
|
7,300 |
|
|
|
7,300 |
|
Other liabilities |
|
|
776 |
|
|
|
794 |
|
Total liabilities |
|
|
42,806 |
|
|
|
33,631 |
|
Commitments and contingencies
(Note 10) |
|
|
|
|
|
|
|
|
Stockholders’ equity: |
|
|
|
|
|
|
|
|
Preferred stock: $0.00001 par value; 20,000 shares authorized and
no shares issued or outstanding at March 31, 2019 and December 31,
2018 |
|
|
— |
|
|
|
— |
|
Common stock: $0.00001 par value; 250,000 shares authorized,
110,691 shares issued and outstanding as of March 31, 2019 and
December 31, 2018 |
|
|
1 |
|
|
|
1 |
|
Additional paid in capital |
|
|
296,967 |
|
|
|
296,409 |
|
Accumulated deficit (1) |
|
|
(287,391 |
) |
|
|
(283,474 |
) |
Total stockholders’
equity |
|
|
9,577 |
|
|
|
12,936 |
|
Total liabilities and
stockholders’ equity |
|
$ |
52,383 |
|
|
$ |
46,567 |
|
MARRONE BIO INNOVATIONS,
INC.Condensed Consolidated Statements of
Operations(In Thousands, Except Per Share
Amounts)(Unaudited)
|
|
THREE MONTHS ENDED MARCH 31, |
|
|
|
2019 |
|
|
2018 |
|
Revenues: |
|
|
|
|
|
|
|
|
Product |
|
$ |
8,601 |
|
|
$ |
4,224 |
|
License |
|
|
115 |
|
|
|
100 |
|
Total revenues |
|
|
8,716 |
|
|
|
4,324 |
|
Cost of product revenues |
|
|
3,729 |
|
|
|
2,242 |
|
Gross profit |
|
|
4,987 |
|
|
|
2,082 |
|
Operating Expenses: |
|
|
|
|
|
|
|
|
Research, development and patent |
|
|
2,942 |
|
|
|
2,534 |
|
Selling, general and administrative |
|
|
5,674 |
|
|
|
5,031 |
|
Total operating expenses |
|
|
8,616 |
|
|
|
7,565 |
|
Loss from operations |
|
|
(3,629 |
) |
|
|
(5,483 |
) |
Other income (expense): |
|
|
|
|
|
|
|
|
Interest expense |
|
|
(306 |
) |
|
|
(1,119 |
) |
Interest expense, related parties |
|
|
— |
|
|
|
(434 |
) |
Change in fair value of financial instruments |
|
|
— |
|
|
|
(5,177 |
) |
Loss on extinguishment of debt, net (1) |
|
|
— |
|
|
|
(2,196 |
) |
Gain on extinguishment of debt, related party (1) |
|
|
— |
|
|
|
9,183 |
|
Other income (expense), net |
|
|
18 |
|
|
|
(31 |
) |
Total other income (expense),
net |
|
|
(288 |
) |
|
|
226 |
|
Net loss |
|
$ |
(3,917 |
) |
|
$ |
(5,257 |
) |
Basic and diluted net loss per
common share: |
|
$ |
(0.04 |
) |
|
|
(0.07 |
) |
Weighted-average shares
outstanding used in computing basic anddiluted net loss per common
share: |
|
|
110,691 |
|
|
|
74,591 |
|
MARRONE BIO INNOVATIONS,
INC.Condensed Consolidated Statements of Cash
Flows(In Thousands)
|
|
THREE MONTHS ENDED MARCH 31, |
|
|
|
2019 |
|
|
2018 |
|
Cash flows from operating
activities |
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(3,917 |
) |
|
$ |
(5,257 |
) |
Adjustments to reconcile net
loss to net cash used in operating activities: |
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
455 |
|
|
|
478 |
|
Right of use assets amortization |
|
|
199 |
|
|
|
- |
|
Share-based compensation |
|
|
558 |
|
|
|
491 |
|
Non-cash interest expense |
|
|
73 |
|
|
|
611 |
|
Change in fair value of financial instruments |
|
|
— |
|
|
|
5,177 |
|
Loss on extinguishment of debt, net (1) |
|
|
— |
|
|
|
2,196 |
|
Gain on extinguishment of debt, related party, net (1) |
|
|
— |
|
|
|
(9,183 |
) |
Net changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
Accounts receivable |
|
|
(6,039 |
) |
|
|
(567 |
) |
Inventories |
|
|
670 |
|
|
|
(220 |
) |
Prepaid Expenses and other assets |
|
|
(336 |
) |
|
|
146 |
|
Deferred cost of product revenues |
|
|
— |
|
|
|
2 |
|
Accounts payable |
|
|
726 |
|
|
|
(1,085 |
) |
Accrued and other liabilities |
|
|
310 |
|
|
|
(793 |
) |
Accrued interest due to related parties |
|
|
— |
|
|
|
(1,614 |
) |
Lease Liability |
|
|
(150 |
) |
|
|
- |
|
Deferred revenue |
|
|
(199 |
) |
|
|
(128 |
) |
Net cash used in operating
activities |
|
|
(7,650 |
) |
|
|
(9,746 |
) |
Cash flows from investing
activities |
|
|
|
|
|
|
|
|
Purchases of property, plant
and equipment |
|
|
(116 |
) |
|
|
(362 |
) |
Net cash used in investing
activities |
|
|
(116 |
) |
|
|
(362 |
) |
Cash flows from financing
activities |
|
|
|
|
|
|
|
|
Proceeds from issuance of
common stock, net of offering costs |
|
|
— |
|
|
|
21,820 |
|
Proceeds from issuance of
debt |
|
|
— |
|
|
|
2,000 |
|
Proceeds from secured
borrowings |
|
|
6,714 |
|
|
|
3,520 |
|
Reductions in secured
borrowings |
|
|
(3,511 |
) |
|
|
(3,194 |
) |
Repayment of debt |
|
|
(72 |
) |
|
|
(67 |
) |
Net cash provided by financing
activities |
|
|
3,131 |
|
|
|
24,079 |
|
Net increase (decrease) in
cash and cash equivalents and restrictedcash |
|
|
(4,635 |
) |
|
|
13,971 |
|
Cash and cash equivalents and
restricted cash, beginning of period |
|
|
19,781 |
|
|
|
2,833 |
|
Cash and cash equivalents and
restricted cash, end of period |
|
$ |
15,146 |
|
|
$ |
16,804 |
|
|
|
|
|
|
|
|
|
|
Supplemental disclosure of
cash flow information |
|
|
|
|
|
|
|
|
Cash paid for interest |
|
$ |
223 |
|
|
$ |
2,145 |
|
Supplemental disclosure of
non-cash investing and financing activities |
|
|
|
|
|
|
|
|
Property, plant and equipment
included in accounts payable andaccrued liabilities |
|
$ |
10 |
|
|
$ |
200 |
|
Embedded derivative liability
associated with bridge loan |
|
$ |
— |
|
|
$ |
573 |
|
Conversion of debt to
equity |
|
$ |
— |
|
|
$ |
10,000 |
|
Conversion of bridge loan
(convertible note) to equity |
|
$ |
— |
|
|
$ |
6,000 |
|
Conversion of debt, related
party to equity |
|
$ |
— |
|
|
$ |
35,000 |
|
Conversion of accrued
liabilities into equity associated with thegranting of restricted
stock units |
|
$ |
— |
|
|
$ |
205 |
|
(1 |
) |
The above includes revised numbers for the three months ended March
31, 2018 as disclosed in Note 16 to our accompanying Notes to
Consolidated Financial Statements included in Part II-Item
8-“Financial Statements and Supplementary Data” of the Annual
Report on Form 10-K filed on March 29, 2019. |
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