- Reported revenues increased 104 percent year-over-year to
approximately $135 million, including an increase of 80 percent in
proprietary revenues.
- Reported gross profit was $9.5 million ($4.3 million when
excluding an approximate $5.2 million impact from open
mark-to-market timing differences).
- The Company improved its 2023 guidance for Adjusted EBITDA and
free cash flow.
Benson Hill, Inc. (NYSE: BHIL, the “Company” or “Benson Hill”),
a food tech company unlocking the natural genetic diversity of
plants, today announced operating and financial results for the
quarter ended March 31, 2023.
This press release features multimedia. View
the full release here:
https://www.businesswire.com/news/home/20230510005306/en/
Benson Hill Announces First Quarter 2023
Financial Results (Graphic: Business Wire)
“Our first quarter results represent a continuation of the
momentum created in 2022,” said Matt Crisp, Chief Executive Officer
of Benson Hill. “We are confident this year can represent an
inflection point for proprietary revenue growth and margin
expansion as we lean into the capabilities of our closed-loop model
and realize a greater anticipated contribution from partnership and
licensing agreements.”
First Quarter Results Compared to the Same Period of
2022
The following financial results exclude the pending divestiture
of the Fresh business announced on January 3, 2023, which is now
recorded as discontinued operations. The impact of open
mark-to-market timing differences on the profit and loss statement
and reconciliation of non-GAAP financial measures can be found in
the accompanying financial tables.
- Revenues were $134.6 million, an increase of $68.5 million, or
103.6 percent. Strong demand from customers and greater
availability of proprietary soy ingredients, meal and edible oil
products resulted in an 80 percent increase in proprietary revenues
to $25.3 million. Non-proprietary revenues increased more than 100
percent from a continuation of favorable soy and yellow pea
commodity prices and strong operational execution. Reported
revenues include a favorable $6.7 million impact from open
mark-to-market timing differences.
- Gross profit was $9.5 million, an increase of $18.5 million.
Excluding an approximate $5.2 million favorable impact from open
mark-to-market timing differences, gross profit was $4.3 million
and gross margins were approximately 3.4 percent. Favorable top
line growth, proprietary revenue mix, and contributions from
partnership and licensing agreements were partially offset by
ongoing inflationary and supply chain pressures.
- Operating expenses were $28.8 million, a decrease of $3.7
million. The majority of the improvement was from actions
associated with the Company’s Liquidity Improvement Plan.
Approximately $6.1 million of operating expense in the quarter
related to non-cash items primarily stock compensation and
depreciation.
- Selling, general and administrative expenses were $16.2
million, a decrease of $4.1 million or 20.2 percent.
- R&D expenses were $12.6 million, an increase of $0.3
million or 2.8 percent.
- Inclusive of open mark-to-market timing differences, net loss
from continuing operations was $4.8 million, a decrease in loss of
$12.6 million or 72.2 percent. Adjusted EBITDA was a loss of $10.7
million, or an approximate loss of $16.0 million when excluding the
impact from open mark-to-market timing differences.
- Cash, restricted cash, and marketable securities of $131.0
million were on hand as of March 31, 2023.
2023 Outlook
Excludes the Fresh business which is classified as discontinued
operations.
Management reaffirmed its guidance for proprietary revenues in
the range of $100 million to $110 million, a 40 percent to 50
percent increase over the prior year. Consistent with prior
guidance, non-proprietary revenues are expected to decline
moderately in favor of proprietary products, which sets the
expectation for consolidated revenues to be in the range of $390
million to $430 million.
Consistent with prior guidance, consolidated gross profit is
expected to be in the range of $20 million to $30 million driven by
anticipated increases in proprietary sales, greater anticipated
contribution from partnership and licensing agreements, and
favorable soy commodity markets for non-proprietary product sales.
This outlook includes assumptions for a continuation of
inflationary pressures and challenges in supply chain
logistics.
The Company has taken actions to realize an annual run rate cash
savings of more than $10 million from its Liquidity Improvement
Plan, which is now expected to lower full year operating expenses
to a range of $115 million to $120 million. As a result, management
has improved its expected net loss from continuing operations to a
range of $115 million to $125 million, Adjusted EBITDA loss to a
range of $53 million to $58 million, and free cash flow outflow to
a range of $110 million to $118 million.
Webcast
A webcast of the earnings conference call will begin at 8:30
a.m. EDT today. The link to participate is available on the
Investor Relations page of the Company’s website.
About Benson Hill
Benson Hill moves food forward with the CropOS® platform, a
cutting-edge food innovation engine that combines data science and
machine learning with biology and genetics. Benson Hill empowers
innovators to unlock nature’s genetic diversity from plant to
plate, with the purpose of creating nutritious, great-tasting food
and ingredient options that are both widely accessible and
sustainable. More information can be found at bensonhill.com or on
Twitter at @bensonhillinc.
Use of Non-GAAP Financial Measures
In this press release, the Company includes references to
non-GAAP performance measures. The Company uses these non-GAAP
financial measures to facilitate management’s financial and
operational decision-making, including evaluation of the Company’s
historical operating results. The Company’s management believes
these non-GAAP measures are useful in evaluating the Company’s
operating performance and are similar measures reported by publicly
listed U.S. competitors, and regularly used by securities analysts,
institutional investors, and other interested parties in analyzing
operating performance and prospects. These non-GAAP financial
measures reflect an additional way of viewing aspects of the
Company’s operations that, when viewed with GAAP results and the
reconciliations to corresponding GAAP financial measures, may
provide a more complete understanding of factors and trends
affecting the Company’s business. By referencing these non-GAAP
measures, the Company’s management intends to provide investors
with a meaningful, consistent comparison of the Company’s
performance for the periods presented. These non-GAAP financial
measures should be considered supplemental to, and not a substitute
for, financial information prepared in accordance with GAAP. The
Company’s definition of these non-GAAP measures may differ from
similarly titled measures of performance used by other companies in
other industries or within the same industry. Because non-GAAP
financial measures exclude the effect of items that will increase
or decrease the Company’s reported results of operations,
management strongly encourages investors to review the Company’s
condensed consolidated financial statements and publicly filed
reports in their entirety.
Reconciliations of these non-GAAP financial measures to the most
directly comparable GAAP financial measures are included in the
tables accompanying this press release.
Cautionary Note Regarding Forward-Looking Statements
Certain statements in this press release may be considered
“forward-looking statements” within the meaning of Section 27A of
the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. Forward-looking
statements generally relate to future events or the Company’s
future financial or operating performance and may be identified by
words such as “may,” “should,” “expect,” “intend,” “will,”
“estimate,” “anticipate,” “believe,” “predict,” or similar words.
These forward-looking statements are based upon assumptions made by
the Company as of the date hereof and are subject to risks,
uncertainties, and other factors that could cause actual results to
differ materially from those expressed or implied by such
forward-looking statements. These forward-looking statements
include, among other things, statements regarding the Company’s
current guidance regarding certain expected 2023 financial and
operating results, including guidance regarding consolidated,
proprietary and non-proprietary revenues, anticipated contribution
from partnership and licensing agreements, margins, consolidated
gross profit, net loss from continuing operations, Adjusted EBITDA,
run rate cash savings, operating expenses, and free cash flow;
statements regarding the Company’s current expectations and
assumptions regarding the industries and markets in which it
operates, and macro-economic trends, including regarding commodity
markets and inflationary pressures; projections of market
opportunity and supply chain constraints; statements regarding the
Company’s Liquidity Improvement Plan, actions to implement such
plan, and the anticipated benefits of such plan; expectations
regarding revenue and gross profit mix; expectations regarding
future costs and uses of free cash flow; expectations regarding the
unwinding of mark-to-market timing differences and the Company’s
assessment of its futures contracts; any financial or other
information based upon or otherwise incorporating judgments or
estimates relating to future performance, events or expectations;
expectations regarding the Company’s hedging and other risk
management strategies, including expectations about future sales
and purchases that relate to the Company’s mark-to-market
adjustments and the fair valuation of futures contracts; the
Company’s strategies, positioning, resources, capabilities, and
expectations for future performance; estimates and forecasts of
financial and other performance metrics; the Company’s outlook and
financial and other guidance. Factors that may cause actual results
to differ materially from current expectations and guidance
include, but are not limited to: risks associated with the
Company’s Liquidity Improvement Plan, including potentially adverse
impacts on the Company’s business and prospects even if such plan
is successful; the risk that the Company’s actions relating to its
Liquidity Improvement Plan may be insufficient to achieve the
objectives of such plan; risks associated with the Company’s
ability to grow and achieve growth profitably, including continued
access to the capital resources necessary for growth; the risk that
the Company will be unable to renegotiate or retire any of its
existing debt by entering into an amended or new facility in a
timely manner, on favorable terms, or at all; risks relating to the
failure to realize the anticipated benefits of the Company’s shelf
registration statement, including its at-the-market facility, or
otherwise fail to raise equity or other capital to supplement its
cash needs; risks relating to the Company’s hedging and other risk
management strategies, including expectations about future sales
and purchases that relate to the Company’s mark-to-market
adjustments and the fair valuation of futures contracts; the risk
that the Company will not realize the anticipated benefits of the
divestiture of the Fresh business, including risks relating to the
failure to satisfy the conditions to the consummation of the
pending transaction to sell the remaining assets of the Fresh
business, and the risk that such transaction may not be completed
in a timely manner or at all; risks associated with managing
capital resources; risks associated with maintaining relationships
with customers and suppliers and developing and maintaining
partnering and licensing relationships; risks associated with
changing industry conditions and consumer preferences; risks
associated with the Company’s ability to generally execute on its
business strategy; risks associated with the effects of global and
regional economic, agricultural, financial and commodities market,
political, social and health conditions; risks associated with the
Company’s transition to becoming a public company; the
effectiveness of the Company’s risk management strategies; and
other risks and uncertainties set forth in the sections entitled
“Risk Factors” and “Cautionary Note Regarding Forward-Looking
Statements” in our filings with the SEC, which are available on the
SEC’s website at www.sec.gov. Forward-looking statements are also
subject to the risks and other issues described above under “Use of
Non-GAAP Financial Measures,” which could cause actual results to
differ materially from current expectations included in the
Company’s forward-looking statements included in this press
release. Nothing in this press release should be regarded as a
representation by any person that the forward-looking statements
set forth herein will be achieved or that any of the contemplated
results of such forward-looking statements will be achieved,
including without limitation, any expectations about our
operational and financial performance or achievements. There may be
additional risks about which the Company is presently unaware or
that the Company currently believes are immaterial that could also
cause actual results to differ from those contained in the
forward-looking statements. The reader should not place undue
reliance on forward-looking statements, which speak only as of the
date they are made. The Company expressly disclaims any duty to
update these forward-looking statements, except as otherwise
required by law.
Benson Hill, Inc. Material Items
Included in Consolidated Revenues and Cost of Sales (USD In
Thousands)
Currently, the Company does not seek cash flow hedge accounting
treatment for its derivative financial instruments and thus changes
in fair value are reflected in current earnings.
Mark-to-market timing difference comprises the estimated net
temporary impact resulting from unrealized period-end gains/losses
associated with the fair valuation of futures contracts associated
with the Company’s committed future operating capacity. These
mark-to-market timing differences are not indicative of the
Company’s operating performance.
The Company recorded the fair value of acquired sales and
purchase contracts in the acquisition of the Company’s Creston,
Iowa location, which are amortized, not marked-to-market, to
revenues and cost of sales to the physical contracts.
The table below summarizes the pre-tax gains and losses related
to derivatives and contract assets and liabilities:
Three Months Ended March 31,
2023
Open Mark-to-Market Timing
Differences
Reported
Impact
Excluding
Revenues
$
134,643
$
6,725
$
127,918
Gross profit
$
9,523
$
5,229
$
4,294
Total operating expenses
$
28,809
$
—
$
28,809
Net loss from continuing operations
$
(4,845
)
$
5,229
$
(10,074
)
Adjusted EBITDA
$
(10,733
)
$
5,229
$
(15,962
)
- See Adjusted EBITDA reconciliation in the accompanying
financial tables.
Benson Hill, Inc.
Condensed Consolidated Balance
Sheets (Unaudited)
(USD In Thousands)
March 31, 2023
December 31,
2022
Assets
Current assets:
Cash and cash equivalents
$
20,399
$
25,053
Marketable securities
89,873
132,121
Accounts receivable, net
28,986
28,591
Inventories, net
54,549
62,110
Prepaid expenses and other current
assets
30,490
29,346
Current assets held for sale
22,832
23,507
Total current assets
247,129
300,728
Property and equipment, net
99,366
99,759
Finance lease right-of-use assets, net
64,860
66,533
Operating lease right-of-use assets
5,008
1,660
Goodwill and intangible assets, net
27,189
27,377
Other assets
5,362
4,863
Total assets
$
448,914
$
500,920
Liabilities and stockholders’
equity
Current liabilities:
Accounts payable
$
19,794
$
36,717
Current finance lease liabilities
3,514
3,318
Current operating lease liabilities
679
364
Current maturities of long-term debt
2,244
2,242
Accrued expenses and other current
liabilities
19,010
33,435
Current liabilities held for sale
13,975
16,441
Total current liabilities
59,216
92,517
Long-term debt
103,447
103,991
Long-term finance lease liabilities
76,087
76,431
Long-term operating lease liabilities
4,292
1,291
Warrant liability
9,107
24,285
Conversion option liability
1,572
8,091
Deferred tax liabilities
295
283
Other non-current liabilities
259
129
Total liabilities
254,275
307,018
Stockholders’ equity:
Common stock, $0.0001 par value, 440,000
and 440,000 shares authorized, 207,459 and 206,668 shares issued
and outstanding at March 31, 2023 and December 31, 2022,
respectively
21
21
Additional paid-in capital
612,385
609,450
Accumulated deficit
(411,528
)
(408,474
)
Accumulated other comprehensive loss
(6,239
)
(7,095
)
Total stockholders’ equity
194,639
193,902
Total liabilities and stockholders’
equity
$
448,914
$
500,920
Benson Hill, Inc.
Condensed Consolidated
Statements of Operations (Unaudited)
(USD In Thousands, Except Per
Share Information)
Three Months Ended March
31,
2023
2022
Revenues
$
134,643
$
66,126
Cost of sales
125,120
75,061
Gross profit (loss)
9,523
(8,935
)
Operating expenses:
Research and development
12,642
12,295
Selling, general and administrative
expenses
16,167
20,255
Total operating expenses
28,809
32,550
Loss from operations
(19,286
)
(41,485
)
Other (income) expense:
Interest expense, net
6,372
6,388
Loss on extinguishment of debt
Change in fair value of warrants and
conversion options
(21,696
)
(31,741
)
Other (income) expense, net
868
1,331
Total other (income) expense, net
(14,456
)
(24,022
)
Net loss from continuing operations before
income tax
(4,830
)
(17,463
)
Income tax expense (benefit)
15
(39
)
Net loss from continuing operations, net
of tax
(4,845
)
(17,424
)
Net (loss) income from discontinued
operations, net of tax
1,791
848
Net loss
$
(3,054
)
$
(16,576
)
Net loss per common share:
Basic and diluted net loss per common
share from continuing operations
$
(0.03
)
$
(0.11
)
Basic and diluted net income per common
share from discontinued operations
$
0.01
$
0.01
Basic and diluted net loss per common
share
$
(0.02
)
$
(0.10
)
Weighted average shares outstanding:
Basic and diluted weighted average shares
outstanding
187,113
160,711
Benson Hill, Inc.
Condensed Consolidated
Statements of Comprehensive Loss (Unaudited)
(USD In Thousands)
Three Months Ended March
31,
2023
2022
Net loss
$
(3,054
)
$
(16,576
)
Foreign currency:
Comprehensive loss
—
(65
)
—
(65
)
Marketable securities:
Comprehensive income (loss)
1,906
(3,766
)
Adjustment for net income (losses)
realized in net loss
(1,050
)
1,207
856
(2,559
)
Total other comprehensive income
(loss)
856
(2,624
)
Total comprehensive loss
$
(2,198
)
$
(19,200
)
Benson Hill, Inc.
Condensed Consolidated
Statements of Cash Flows (Unaudited)
(USD In Thousands)
Three Months Ended March
31,
2023
2022
Operating activities
Net loss
$
(3,054
)
$
(16,576
)
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation and amortization
5,263
5,404
Stock-based compensation expense
2,814
5,683
Bad debt expense
(228
)
156
Change in fair value of warrants and
conversion option
(21,696
)
(31,741
)
Accretion and amortization related to
financing activities
2,018
2,907
Other
1,700
4,026
Changes in operating assets and
liabilities:
Accounts receivable
(1,188
)
(3,245
)
Inventories
11,663
(5,054
)
Other assets and other liabilities
(1,289
)
(540
)
Accounts payable
(18,471
)
(7,540
)
Accrued expenses
(15,225
)
(6,672
)
Net cash used in operating activities
(37,693
)
(53,192
)
Investing activities
Purchases of marketable securities
(23,277
)
(84,991
)
Proceeds from maturities of marketable
securities
25,997
4,575
Proceeds from sales of marketable
securities
38,927
73,196
Payments for acquisitions of property and
equipment
(2,680
)
(3,360
)
Payments made in connection with business
acquisitions
—
(1,034
)
Other
27
—
Net cash provided/(used) by/in investing
activities
38,994
(11,614
)
Financing activities
Contributions from PIPE Investment, net of
transaction costs $18 in 2022
—
84,967
Principal payments on debt
(843
)
(1,316
)
Proceeds from issuance of debt, net of
issuance costs
(2,000
)
4,078
Borrowing under revolving line of
credit
—
5,726
Repayments under revolving line of
credit
—
(3,916
)
Repayments of financing lease
obligations
(794
)
(290
)
Proceeds from the exercise of stock awards
and withholding taxes for the net share settlement
122
636
Net cash (used)/provided in/by financing
activities
(3,515
)
89,885
Effect of exchange rate changes on
cash
—
(65
)
Net (decrease) increase in cash and cash
equivalents
(2,214
)
25,014
Cash, cash equivalents and restricted
cash, beginning of period
43,321
78,963
Cash, cash equivalents and restricted
cash, end of period
$
41,107
$
103,977
Supplemental disclosure of cash flow
information
Cash paid for interest
$
4,698
$
2,473
Supplemental disclosure of non-cash
activities
PIPE Investment issuance costs included in
accrued expenses and other current
$
—
$
4,143
Purchases of property and equipment
included in accounts payable and accrued expenses and other current
liabilities
$
326
$
3,104
Benson Hill, Inc. Non-GAAP
Reconciliation (USD In Thousands)
This press release contains financial measures not derived in
accordance with generally accepted accounting principles (“GAAP”).
Reconciliations to the most comparable GAAP measures are provided
below. The Company defines Adjusted EBITDA as net loss from
continuing operations excluding income taxes, interest,
depreciation, amortization, stock-based compensation, change in
fair value of warrants and conversion option, and the impact of
significant non-recurring items. The Company defines free cash flow
as net cash used in (provided by) operating activities minus
capital expenditures.
Adjustments to reconcile net loss from our continuing operations
to Adjusted EBITDA are as follows:
Three Months Ended March
31,
2023
2022
Net loss from continuing operations
$
(4,845
)
$
(17,424
)
Interest expense, net
6,372
6,388
Income tax expense (benefit)
15
(39
)
Depreciation and amortization
5,263
4,892
Stock-based compensation
2,814
5,683
Change in fair value of warrants and
conversion option
(21,696
)
(31,741
)
Other
1,344
1,100
Total Adjusted EBITDA
$
(10,733
)
$
(31,141
)
Adjustments to reconcile estimated 2023 net loss from continuing
operations to estimated Adjusted EBITDA are as follows:
2023 Estimate*
Net loss from continuing operations
$
(115,000
)
to
$
(125,000
)
Interest expense, net
27,000
to
29,000
Depreciation and amortization
21,000
to
23,000
Stock-based compensation
14,000
to
15,000
Total Adjusted EBITDA
$
(53,000
)
to
(58,000
)
Adjustments to reconcile estimated 2023 free cash flow are as
follows:
2023 Estimate*
Net loss from continuing operations
$
(115,000
)
to
(125,000
)
Depreciation and amortization
21,000
to
23,000
Stock-based compensation
14,000
to
15,000
Changes in working capital
(12,000
)
to
(14,000
)
Other
2,000
to
8,000
Net Cash Used in Operating
Activities
$
(90,000
)
to
(93,000
)
Payments for acquisition of property and
equipment
20,000
to
25,000
Free Cash Flow
$
(110,000
)
to
(118,000
)
* Categories such as income tax expense (benefit) and changes in
fair value of warrants and conversion option, and significant
non-recurring items may impact the actual full-year non-GAAP
reconciliation for both Adjusted EBITDA and Free Cash Flow. These
amounts cannot be estimated at this time.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230510005306/en/
Investors: Ruben Mella: (314) 714-6313 / rmella@bensonhill.com
Media: Christi Dixon: (636) 359-0797 / cdixon@bensonhill.com
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