Marrone Bio Innovations, Inc. (NASDAQ: MBII), an
international leader in sustainable bioprotection and plant health
solutions, has provided its financial results for the second
quarter ended June 30, 2021. Key results include:
- The net loss in the second quarter was $3 million, a 6%
increase, and Adjusted EBITDA was a loss of $0.7 million, a 51%
improvement. For the first half of 2021, net income (loss) and
Adjusted EBITDA improved 36% and 63%, respectively.
- Second quarter revenues rose 3%, with growth in specialty and
row crop products constrained by challenging weather and supply
chain conditions.
- Gross profit in the second quarter increased by 5%, resulting
in gross margins of 61.7%, the 11th consecutive quarter of gross
margins in excess of 50%.
Selected Financial
Highlights
$ in millions |
Q22021 |
Q22020 |
% Increase(Decrease) |
H12021 |
H12020 |
% Increase(Decrease) |
Revenues |
$12.6 |
$12.2 |
3% |
$23.6 |
$21.8 |
8% |
Gross Profit |
$7.8 |
$7.4 |
5% |
$14.7 |
$13.0 |
14% |
Gross Margin |
61.7% |
60.6% |
+110bps |
62.3% |
59.3% |
+300bps |
Operating Expenses |
$10.1 |
$9.4 |
8% |
$20.1 |
$20.6 |
(2%) |
Operating Expense Ratio |
80% |
77% |
+300bps |
85% |
94% |
-900bps |
Net Income (Loss) |
($3.0) |
($2.9) |
6% |
($6.3) |
($9.9) |
(36%) |
Adjusted EBITDA1 |
($0.7) |
($1.5) |
(51%) |
($1.9) |
($5.2) |
(63%) |
Cash Used in Operations |
($1.3) |
($1.5) |
(14%) |
($6.3) |
($7.7) |
(19%) |
1Adjusted EBITDA is a non-GAAP financial measure and is
described in relation to its most directly comparable GAAP measure
under "Use of Non-GAAP Financial Information" below.
Second Quarter 2021 Financial and Operational
Summary
- Second quarter revenues increased by
3% to $12.6 million. Revenue growth was hampered by severe drought
in the western United States, which lowered overall market demand
for insecticides and fungicides. Compared with sales in second
quarter of 2020, seed treatment sales were stronger in the United
States but softer in Europe and Latin America, where supply chain
and COVID-related constraints affected the timing of sales.
Revenues from the Venerate family of insecticides and nematicides
in specialty crop markets grew in Mexico and parts of Central and
Latin America.
- Gross profit was $7.8 million as
compared with $7.4 million in the second quarter of 2020, with
gross margins of 61.7%. A favorable product mix contributed to the
5% improvement in gross profit and the 110 basis point improvement
in gross margins.
- Operating expenses were $10.1
million for the quarter, and in line with the company’s commitment
to maintain operating expenses flat with those in the prior year,
plus inflation. The operating expense ratio – a key performance
indicator that compares operating expenses to revenues – was 80%.
In comparison, operating expenses of $9.4 million in the second
quarter of 2020 benefited by a $1.4 million offset from a Paycheck
Protection Program (PPP) loan secured to retain employees
supporting the essential agricultural industry during the COVID-19
pandemic
- The net loss in the second quarter
of 2021 was $3.0 million as compared with the net loss in the
second quarter of 2020 of $2.9 million, which included the $1.4
million benefit of the PPP loan. Adjusted EBITDA was a loss of $0.7
million, as compared with an Adjusted EBITDA loss of $1.5 million
in the same period last year. The company’s continued gross margin
expansion and cost containment contributed to the improvement.
Adjusted EBITDA is further described under “Use of Non-GAAP
Financial Information” below.
- Cash used in operations of $1.3
million improved by 14%, largely driven by more efficient use of
working capital. Cash used in operations in the second quarter of
2020 of $1.5 million included the benefit of $1.7 million in
proceeds from the PPP loan.
First Half 2021 Financial and Operational
Summary
- Revenues in the first half of 2021
improved by 8% to $23.6 million. The company saw growth in its
bioinsecticides, primarily used in specialty crops, even as adverse
weather conditions in the western United States reduced the size of
the available pesticide market. Sales of seed treatment
products were strongest in the United States. Supply chain and
COVID-related issues in Europe and Latin America delayed sales of
plant health products, and the company anticipates recovering much
of those revenues in the second half of the year.
- Gross profit of $14.7 million was a
14% increase from $13 million in gross profit in the first half of
2020. A favorable mix of seed treatment sales in the first half
boosted gross margins by 300 basis points to 62.3%.
- First half 2021 operating expenses
of $20.1 million were 2% lower than operating expenses of $20.6
million in the same period last year. Operating expenses in the
first half of 2020 also benefited by a $1.4 million offset from the
PPP loan. The operating expense ratio for the first six months
improved by 900 basis points to 85% as a result of ongoing cost
management efforts.
- The net loss of $6.3 million for the
first half of the year was a 36% improvement as compared with the
net loss of $9.9 million in the first six months of 2020. In
comparison, the net loss in the first half of 2020 included
non-cash adjustments related to warrant exercises, stock
compensation and amortization charges, as well as the benefit of
the PPP loan.
- First half 2021 Adjusted EBITDA was
a loss of $1.9 million, a 63% improvement from the loss of $5.2
million in the same period in 2020. Growth across revenues and
gross profit, coupled with cost discipline, drove the performance.
Adjusted EBITDA is further described under “Use of Non-GAAP
Financial Information” below.
- Cash used in operations was $6.3
million in the first six months of the 2021, a 19 percent
improvement. Cash used in operations was $7.7 million in the first
half of 2020, which included $1.7 million in proceeds from the PPP
loan.
Management Commentary
“Despite external short-term headwinds, we grew
revenues and made significant improvements across our key metrics –
particularly Adjusted EBITDA – in the first half of the year. We
expect to return to a more normalized revenue growth rate in the
second half of the year, while carefully managing discretionary
spending to ensure we continue our progress toward delivering
Adjusted EBITDA breakeven in the near-term,” said Chief Executive
Officer Kevin Helash.
“For the full year, we are projecting revenue
growth in the mid-teens, and annual gross margins in the upper 50%
range. We expect operating expenses to remain in line with those
for 2020, adjusting for inflation,” Helash added. “We have multiple
avenues to achieve Adjusted EBITDA breakeven, and believe we can
sustain our upward trajectory and advance our leadership in
sustainable agriculture.”
Conference Call and Webcast
Management will host an investor conference call
at 4:30 p.m. ET (1:30 p.m. PT) on August 16, 2021 to discuss
Marrone Bio Innovations’ second quarter 2021 financial results,
provide a corporate update, and conclude with a Q&A from
participants. To participate, please use the following
information:
Q2 2021 Conference Call and
Webcast
Date: Monday, August 16, 2021Time: 1:30 p.m. Pacific time (4:30
p.m. Eastern time)U.S. Dial-in: (844) 612-2103International
Dial-in: (918) 922-3145Conference ID: 8750498Webcast:
https://edge.media-server.com/mmc/p/ozmar3vh
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 September 1, 2021. To listen, call
(855) 859-2056, (404) 537-3406 or (800) 585-8367. Please use the
conference ID number 8750498 . A webcast will also be available for
30 days on the IR section of the Marrone Bio Innovations website or
by clicking here: https://investors.marronebio.com/
About Marrone Bio
Innovations
Marrone Bio Innovations Inc. (NASDAQ: MBII) is a
growth-oriented agricultural company leading the movement to
environmentally sustainable farming practices through the
discovery, development and sale of innovative biological products
for crop protection, crop health and crop nutrition. Our portfolio
of 15 products helps customers operate more sustainably while
increasing their return on investment. The company’s commercial
products are sold globally and supported by a robust portfolio of
more than 500 issued and pending patents. Our end markets
include row crops; fruits and vegetables; trees, nuts and vines;
and greenhouse production. Marrone Bio’s research and development
program uses proprietary technologies to isolate and screen
naturally occurring microorganisms and plant extracts to create
new, environmentally sound solutions in agriculture.
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.
Non-GAAP Financial MeasuresThis
earnings release discusses Adjusted EBITDA which is not a financial
measure as defined by GAAP. This financial measure is presented as
a supplemental measure of operating performance because we believe
it can aid in, and enhance, the understanding of our financial
results. In addition, we use Adjusted EBITDA as a measure
internally for budgeting purposes.
We define Adjusted EBITDA as net income (loss)
before (1) interest expense (income), net, (2) income tax expense
(benefit), (3) depreciation, (4) amortization of intangible assets,
(5) stock-based compensation expense, plus (6) from time to time,
certain other items which are specific transaction-related items.
Other companies may define or calculate this measure differently,
limiting the usefulness as a comparative measure. Because of this
limitation, this non-GAAP financial measure should not be
considered in isolation or as substitute for or superior to
performance measures calculated in accordance with GAAP and should
be read in conjunction with the financial statement tables.
|
|
|
|
|
|
|
|
|
GAAP
to non-GAAP Reconciliation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THREE MONTHS
ENDED |
|
SIX MONTHS
ENDED |
|
|
JUNE
30, |
|
JUNE
30, |
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
Net Loss (AS
REPORTED) |
$ |
(3,035 |
) |
$ |
(2,870 |
) |
$ |
(6,296 |
) |
$ |
(9,894 |
) |
Taxes |
|
3 |
|
|
46 |
|
|
44 |
|
|
80 |
|
Interest
expense |
|
355 |
|
|
331 |
|
|
748 |
|
|
668 |
|
Depreciation
and amortization |
|
877 |
|
|
890 |
|
|
1,751 |
|
|
1,781 |
|
EBITDA |
$ |
(1,800 |
) |
$ |
(1,603 |
) |
$ |
(3,753 |
) |
$ |
(7,365 |
) |
Stock based
compensation |
|
881 |
|
|
884 |
|
|
1,796 |
|
|
1,791 |
|
Loss on
issuance of new warrants |
|
— |
|
|
— |
|
|
— |
|
|
1,391 |
|
Change in
fair value of contingent consideration |
|
178 |
|
|
600 |
|
|
44 |
|
|
363 |
|
Reduction in
expenses related to PPP funds |
|
— |
|
|
(1,396 |
) |
|
— |
|
|
(1,396 |
) |
Adjusted
EBITDA |
$ |
(741 |
) |
$ |
(1,515 |
) |
$ |
(1,913 |
) |
$ |
(5,216 |
) |
|
|
|
|
|
|
|
|
|
Marrone Bio Innovations Forward Looking
Statements
This press release contains forward-looking
statements within the meaning of the “safe harbor” provisions of
the Private Securities Litigation Reform Act of 1995.
Forward-looking statements 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 the company’s views as of any
subsequent date. Examples of such statements include financial
guidance and other statements regarding the company’s future
revenue growth, margins, operating expenses, other financial
results and progress toward breakeven on an Adjusted EBITDA basis;
adoption of the company’s seed treatment, anticipated new product
launches in the United States and Europe and further global
expansion of the company’s business; and the potential benefits and
value 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 the recent uncertainty in the global economy
and industry-specific economy caused by the COVID-19 pandemic,
consumer, regulatory and other factors affecting demand for the
company’s products, any difficulty in expanding the company’s sales
and marketing infrastructure or marketing the company’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, adverse actions by distributors,
manufacturers, regulatory agencies and other relevant third parties
and costs associated with any strategic acquisitions or other
business opportunities we elect to pursue. Additional information
that could lead to material changes in the company’s performance is
contained in its filings with the Securities and Exchange
Commission. The company 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 Contact:Clyde
MontevirgenVice President of Business Development & Investor
RelationsTelephone: 530-750-2800info@marronebio.com
MARRONE BIO INNOVATIONS,
INC.Condensed Consolidated Balance
Sheets(In Thousands, Except Par Value)
|
|
|
|
|
JUNE
30, |
|
DECEMBER
31, |
|
|
2021 |
|
|
|
2020 |
|
|
(Unaudited) |
|
Audited |
Assets |
|
|
|
Current
assets: |
|
|
|
Cash and cash equivalents |
$ |
17,465 |
|
|
$ |
15,841 |
|
Accounts receivable |
|
14,503 |
|
|
|
10,113 |
|
Inventories |
|
6,479 |
|
|
|
6,618 |
|
Prepaid expenses and other current assets |
|
1,595 |
|
|
|
1,688 |
|
Total
current assets |
|
40,042 |
|
|
|
34,260 |
|
Property, plant and equipment, net |
|
12,598 |
|
|
|
12,565 |
|
Right of use assets, net |
|
3,574 |
|
|
|
3,760 |
|
Intangible assets, net |
|
20,211 |
|
|
|
21,383 |
|
Goodwill |
|
6,740 |
|
|
|
6,740 |
|
Restricted cash |
|
1,560 |
|
|
|
1,560 |
|
Other assets |
|
893 |
|
|
|
929 |
|
Total
assets |
$ |
85,618 |
|
|
$ |
81,197 |
|
|
|
|
|
Liabilities and stockholders' equity |
|
|
|
Current
liabilities: |
|
|
|
Accounts payable |
$ |
1,759 |
|
|
$ |
1,895 |
|
Accrued liabilities |
|
10,943 |
|
|
|
11,650 |
|
Deferred revenue, current portion |
|
388 |
|
|
|
374 |
|
Lease liability, current portion |
|
1,170 |
|
|
|
1,008 |
|
Debt, current portion, net |
|
12,229 |
|
|
|
9,301 |
|
Total
current liabilities |
|
26,489 |
|
|
|
24,228 |
|
Deferred revenue, less current portion |
|
1,328 |
|
|
|
1,628 |
|
Lease liability, less current portion |
|
2,682 |
|
|
|
3,050 |
|
Debt, less current portion, net |
|
11,295 |
|
|
|
11,479 |
|
Debt due to related parties |
|
7,300 |
|
|
|
7,300 |
|
Other liabilities |
|
1,844 |
|
|
|
2,102 |
|
Total
liabilities |
|
50,938 |
|
|
|
49,787 |
|
Commitments
and contingencies |
|
|
|
Stockholders' equity: |
|
|
|
Preferred stock: $0.00001 par value; 20,000 shares authorized and
no shares issued or outstanding at June 30, 2021 and December 31,
2020 |
|
- |
|
|
|
- |
|
Common stock: $0.00001 par value; 250,000 shares authorized,
176,229 and 167,478 shares issued and outstanding as of June 30,
2021 and December 31, 2020, respectively |
|
1 |
|
|
|
1 |
|
Additional paid in capital |
|
381,792 |
|
|
|
372,226 |
|
Accumulated deficit |
|
(347,113 |
) |
|
|
(340,817 |
) |
Total
stockholders' equity |
|
34,680 |
|
|
|
31,410 |
|
Total
liabilities and stockholders' equity |
$ |
85,618 |
|
|
$ |
81,197 |
|
|
|
|
|
MARRONE BIO INNOVATIONS,
INC.Condensed Consolidated Statements of
Operations(In Thousands, Except Per Share
Amounts)(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
THREE MONTHSENDEDJUNE 30, |
|
|
THREE MONTHSENDEDJUNE 30, |
|
|
SIX MONTHSENDEDJUNE 30, |
|
|
SIX MONTHSENDEDJUNE 30, |
|
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
Revenues: |
|
|
|
|
|
|
|
|
Product |
$ |
12,476 |
|
$ |
12,063 |
|
$ |
23,380 |
|
$ |
21,598 |
|
License |
|
122 |
|
|
115 |
|
|
256 |
|
|
230 |
|
Total
revenues |
|
12,598 |
|
|
12,178 |
|
|
23,636 |
|
|
21,828 |
|
Cost of product revenues |
|
4,830 |
|
|
4,794 |
|
|
8,899 |
|
|
8,875 |
|
Gross
profit |
|
7,768 |
|
|
7,384 |
|
|
14,737 |
|
|
12,953 |
|
Operating
Expenses: |
|
61.7% |
|
|
60.6% |
|
|
62.3% |
|
|
59.3% |
|
Research, development and patent |
|
2,836 |
|
|
2,312 |
|
|
5,348 |
|
|
5,546 |
|
Selling, general and administrative |
|
7,288 |
|
|
7,078 |
|
|
14,771 |
|
|
15,071 |
|
Total
operating expenses |
|
10,124 |
|
|
9,390 |
|
|
20,119 |
|
|
20,617 |
|
Loss from
operations |
|
(2,356 |
) |
|
(2,006 |
) |
|
(5,382 |
) |
|
(7,664 |
) |
Other income
(expense): |
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
(355 |
) |
|
(331 |
) |
|
(748 |
) |
|
(668 |
) |
Loss on issuance of new warrants |
|
— |
|
|
— |
|
|
— |
|
|
(1,391 |
) |
Change in fair value of contingent consideration |
|
(178 |
) |
|
(600 |
) |
|
(44 |
) |
|
(363 |
) |
Other income, net |
|
(143 |
) |
|
113 |
|
|
(78 |
) |
|
272 |
|
Total other
expense, net |
|
(676 |
) |
|
(818 |
) |
|
(870 |
) |
|
(2,150 |
) |
Net loss
before income taxes |
$ |
(3,032 |
) |
$ |
(2,824 |
) |
$ |
(6,252 |
) |
$ |
(9,814 |
) |
Income tax
expense |
|
(3 |
) |
|
(46 |
) |
|
(44 |
) |
|
(80 |
) |
Net
Loss |
$ |
(3,035 |
) |
$ |
(2,870 |
) |
$ |
(6,296 |
) |
$ |
(9,894 |
) |
Basic and
diluted net loss per common share: |
$ |
(0.02 |
) |
$ |
(0.02 |
) |
$ |
(0.04 |
) |
$ |
(0.07 |
) |
Weighted-average shares outstanding used in computing basic and
diluted net loss per common share: |
|
175,570 |
|
|
148,096 |
|
|
172,229 |
|
|
144,834 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MARRONE BIO INNOVATIONS,
INC.Condensed Consolidated Statements of Cash
Flows(In Thousands)
|
|
|
|
|
|
|
SIX MONTHS ENDED JUNE 30, |
|
|
2021 |
|
|
2020 |
|
Cash flows
from operating activities |
|
|
|
|
Net
loss |
$ |
(6,296 |
) |
$ |
(9,894 |
) |
Adjustments
to reconcile net loss to net cash used in operating
activities: |
|
|
|
|
Depreciation and amortization |
|
1,751 |
|
|
1,781 |
|
Gain on disposal of equipment |
|
— |
|
|
(9 |
) |
Change in inventory reserves |
|
19 |
|
|
39 |
|
Right of use assets amortization |
|
485 |
|
|
394 |
|
Share-based compensation |
|
1,796 |
|
|
1,791 |
|
Non-cash interest expense |
|
93 |
|
|
119 |
|
Loss on issuance of new warrants |
|
— |
|
|
1,391 |
|
Change in fair value of contingent consideration |
|
44 |
|
|
(363 |
) |
Net changes in operating assets and liabilities: |
|
|
|
|
Accounts receivable |
|
(4,390 |
) |
|
(5,512 |
) |
Inventories |
|
120 |
|
|
1,971 |
|
Prepaid Expenses and other assets |
|
129 |
|
|
167 |
|
Accounts payable |
|
(204 |
) |
|
(2,272 |
) |
Accrued and other liabilities |
|
1,065 |
|
|
3,224 |
|
Lease Liability |
|
(505 |
) |
|
(397 |
) |
Deferred revenue |
|
(370 |
) |
|
(172 |
) |
Net cash
used in operating activities |
|
(6,263 |
) |
|
(7,742 |
) |
Cash flows
from investing activities |
|
|
|
|
Payment of consideration in connection with previous asset
purchase |
|
(750 |
) |
|
(890 |
) |
Purchases of property, plant and equipment |
|
(544 |
) |
|
(403 |
) |
Proceeds from sale of equipment |
|
— |
|
|
2 |
|
Net cash
used in investing activities |
|
(1,294 |
) |
|
(1,291 |
) |
Cash flows
from financing activities |
|
|
|
|
Proceeds from secured borrowings |
|
23,584 |
|
|
24,724 |
|
Repayment in secured borrowings |
|
(20,666 |
) |
|
(19,759 |
) |
Repayment of debt |
|
(155 |
) |
|
(356 |
) |
Equity offering costs |
|
— |
|
|
(64 |
) |
Net settlement of options |
|
63 |
|
|
14 |
|
Proceeds from employee stock purchase plan |
|
180 |
|
|
129 |
|
Exercise of warrants |
|
6,175 |
|
|
8,544 |
|
Net cash
provided by financing activities |
|
9,181 |
|
|
13,232 |
|
Net increase
in cash and cash equivalents and restricted cash |
|
1,624 |
|
|
4,199 |
|
Cash and
cash equivalents and restricted cash, beginning of period |
|
17,401 |
|
|
7,812 |
|
Cash and
cash equivalents and restricted cash, end of period |
$ |
19,025 |
|
$ |
12,011 |
|
|
|
|
|
|
Supplemental
disclosure of cash flow information |
|
|
|
|
Cash paid
for interest |
$ |
649 |
|
$ |
565 |
|
Supplemental
disclosure of non-cash investing and financing activities |
|
|
|
|
Property,
plant and equipment included in accounts payable and accrued
liabilities |
$ |
68 |
|
$ |
6 |
|
Right of use
assets (non-cash) acquired |
$ |
299 |
|
$ |
— |
|
Conversion
of accrued liabilities into equity associated with the granting of
restricted stock units |
$ |
348 |
|
$ |
632 |
|
Contingent
consideration milestone settled in common shares |
$ |
1,004 |
|
$ |
— |
|
|
|
|
|
|
Marrone Bio Innovations (NASDAQ:MBII)
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From Sep 2024 to Oct 2024
Marrone Bio Innovations (NASDAQ:MBII)
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From Oct 2023 to Oct 2024