- First-quarter revenues increased 14% for 11th consecutive quarter of growth.
- Gross profit increased 25%, with gross margins of 63.1%.
- Net income (loss) and Adjusted EBITDA improved 53% and 68%, respectively, as a result of revenue and gross profit improvements combined with continued cost management.
Selected Financial Highlights
$ in millions | Q1 2021 | Q1 2020 | % Increase (Decrease) |
Revenues | 14% | ||
Gross Profit | 25% | ||
Gross Margin | 63.1% | 57.7% | +540bps |
Operating Expenses | (11%) | ||
Operating Expense Ratio | 91% | 116% | -2,500bps |
Net Income (Loss) | ( | ( | (53%) |
Adjusted EBITDA1 | ( | ( | (68%) |
Cash Used in Operations | ( | ( | (20%) |
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.
First Quarter 2021 Financial and Operational Summary
- First-quarter revenues increased 14% to
$11.04 million because of further market penetration for the company’s biological crop protection products, primarily used in specialty crops in the westernUnited States . Sales of crop protection products -- including Venerate®, Grandevo® and Regalia® -- were the key drivers of growth in the quarter. - A favorable product mix and improved absorption of manufacturing overhead resulted in a 25% increase in gross profit to
$6.97 million , and a 540 basis point improvement in gross margins to 63.1%. - Operating expenses declined 11% to
$10.00 million from$11.23 million in the first quarter of 2020, primarily because of cost savings from operational efficiencies. The operating expense ratio – a key performance indicator that compares operating expenses to revenues – improved by 2,500 basis points to 91% from higher revenues and lower spending. - The first-quarter net loss was
$3.26 million as compared with a net loss of$7.02 million in the first quarter of 2020. Adjusted EBITDA was a loss of$1.17 million as compared with a loss of$3.70 million in the first quarter of 2020. The 53% improvement in the net loss and the 68% improvement in Adjusted EBITDA were both a function of increased sales, higher gross profit and lower operating expenses. Adjusted EBITDA is further described under “Use of Non-GAAP Financial Information” below. - Cash used in operations improved by 20%, or
$1.27 million , in the first quarter of 2021, largely driven by the lower net loss and efficient use of working capital.
Management Commentary
“We have had a solid start to 2021, and the improvement in Adjusted EBITDA for the quarter is an early indicator of the progress we intend to make this year as we move ever closer to breakeven on an Adjusted EBITDA basis,” said Chief Executive Officer
“Our focus turns to the major row crops in the second quarter, particularly in the Northern Hemisphere. We anticipate continued adoption of our novel seed treatments to drive further expansion globally, as will the launch of four new products in the major
Conference Call and Webcast
Management will host an investor conference call at
Q1 2021 Conference Call and Webcast
Date:
Time:
International Dial-in: 1-323-289-6576
Conference ID: 8735297
Webcast: http://public.viavid.com/index.php?id=144565
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
About Marrone Bio Innovations
Learn more about
Non-GAAP Financial Measures
This 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 | ||||||
2021 | 2020 | |||||
Net Loss (AS REPORTED) | $ | (3,261 | ) | $ | (7,024 | ) |
Taxes | 41 | 34 | ||||
Interest expense | 393 | 337 | ||||
Depreciation and amortization | 874 | 891 | ||||
EBITDA | $ | (1,953 | ) | $ | (5,762 | ) |
Stock based compensation | 915 | 907 | ||||
Loss on issuance of new warrants | - | 1,391 | ||||
Change in fair value of contingent consideration | (134 | ) | (237 | ) | ||
Adjusted EBITDA | $ | (1,172 | ) | $ | (3,701 | ) |
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
Marrone Bio Innovations Contacts:
Vice President of
Telephone: 530-750-2800
info@marronebio.com
Investor Relations:
Senior Vice President
Main: 949-259-4987
MBII@mzgroup.us
Condensed Consolidated Balance Sheets
(Unaudited, In Thousands, Except Par Value)
2021 | 2020 | |||||||
(Unaudited) | ||||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 18,923 | $ | 15,841 | ||||
Accounts receivable | 13,533 | 10,113 | ||||||
Inventories | 6,414 | 6,618 | ||||||
Prepaid expenses and other current assets | 1,350 | 1,688 | ||||||
Total current assets | 40,220 | 34,260 | ||||||
Property, plant and equipment, net | 12,439 | 12,565 | ||||||
Right of use assets, net | 3,798 | 3,760 | ||||||
Intangible assets, net | 20,797 | 21,383 | ||||||
6,740 | 6,740 | |||||||
Restricted cash | 1,560 | 1,560 | ||||||
Other assets | 911 | 929 | ||||||
Total assets | $ | 86,465 | $ | 81,197 | ||||
Liabilities and stockholders' equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 2,190 | $ | 1,895 | ||||
Accrued liabilities | 10,155 | 11,650 | ||||||
Deferred revenue, current portion | 439 | 374 | ||||||
Lease liability, current portion | 1,164 | 1,008 | ||||||
Debt, current portion, net | 12,085 | 9,301 | ||||||
Total current liabilities | 26,033 | 24,228 | ||||||
Deferred revenue, less current portion | 1,528 | 1,628 | ||||||
Lease liability, less current portion | 2,922 | 3,050 | ||||||
Debt, less current portion, net | 11,380 | 11,479 | ||||||
Debt due to related parties | 7,300 | 7,300 | ||||||
Other liabilities | 1,950 | 2,102 | ||||||
Total liabilities | 51,113 | 49,787 | ||||||
Commitments and contingencies | ||||||||
Stockholders' equity: | ||||||||
Preferred stock: | - | - | ||||||
Common stock: | 1 | 1 | ||||||
Additional paid in capital | 379,429 | 372,226 | ||||||
Accumulated deficit | (344,078 | ) | (340,817 | ) | ||||
Total stockholders' equity | 35,352 | 31,410 | ||||||
Total liabilities and stockholders' equity | $ | 86,465 | $ | 81,197 |
Condensed Consolidated Statements of Operations
(In Thousands, Except Per Share Amounts)
(Unaudited)
THREE MONTHS ENDED | ||||||
2021 | 2020 | |||||
Revenues: | ||||||
Product | $ | 10,904 | $ | 9,535 | ||
License | 134 | 115 | ||||
Total revenues | 11,038 | 9,650 | ||||
Cost of product revenues | 4,069 | 4,081 | ||||
Gross profit | 6,969 | 5,569 | ||||
Operating Expenses: | ||||||
Research, development and patent | 2,512 | 3,234 | ||||
Selling, general and administrative | 7,483 | 7,993 | ||||
Total operating expenses | 9,995 | 11,227 | ||||
Loss from operations | (3,026 | ) | (5,658 | ) | ||
Other income (expense): | ||||||
Interest expense | (393 | ) | (337 | ) | ||
Loss on issuance of new warrants | — | (1,391 | ) | |||
Change in fair value of contingent consideration | 134 | 237 | ||||
Other income, net | 65 | 159 | ||||
Total other expense, net | (194 | ) | (1,332 | ) | ||
Net loss before Income Taxes | (3,220 | ) | (6,990 | ) | ||
Income Tax Expense | (41 | ) | (34 | ) | ||
Net Loss | $ | (3,261 | ) | $ | (7,024 | ) |
Basic and diluted net loss per common share: | $ | (0.02 | ) | $ | (0.05 | ) |
Weighted-average shares outstanding used in computing basic and diluted net loss per common share: | 168,938 | 141,572 |
Condensed Consolidated Statements of Cash Flows
(Unaudited - In Thousands)
THREE MONTHS ENDED | ||||||
MACRH 31, | ||||||
2021 | 2020 | |||||
Cash flows from operating activities | ||||||
Net loss | $ | (3,261 | ) | $ | (7,024 | ) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||
Depreciation and amortization | 874 | 891 | ||||
Gain on disposal of equipment | — | (9 | ) | |||
Change in inventory reserves | (75 | ) | 72 | |||
Right of use assets amortization | 215 | 206 | ||||
Share-based compensation | 915 | 907 | ||||
Non-cash interest expense | 48 | 61 | ||||
Loss on issuance of new warrants | — | 1,391 | ||||
Change in fair value of contingent consideration | (134 | ) | (237 | ) | ||
Net changes in operating assets and liabilities: | ||||||
Accounts receivable | (3,420 | ) | (4,492 | ) | ||
Inventories | 279 | 1,000 | ||||
Prepaid Expenses and other assets | 356 | (281 | ) | |||
Accounts payable | 252 | 3,068 | ||||
Accrued and other liabilities | (763 | ) | (1,500 | ) | ||
Lease Liability | (225 | ) | (208 | ) | ||
Deferred revenue | (78 | ) | (137 | ) | ||
Net cash used in operating activities | (5,017 | ) | (6,292 | ) | ||
Cash flows from investing activities | ||||||
Payment of consideration in connection with previous asset purchase | (750 | ) | (540 | ) | ||
Purchases of property, plant and equipment | (119 | ) | (135 | ) | ||
Proceeds from sale of equipment | — | 2 | ||||
Net cash used in investing activities | (869 | ) | (673 | ) | ||
Cash flows from financing activities | ||||||
Proceeds from secured borrowings | 11,504 | 11,319 | ||||
Repayment in secured borrowings | (8,725 | ) | (6,322 | ) | ||
Repayment of debt | (99 | ) | (196 | ) | ||
Equity offering costs | — | (64 | ) | |||
Net settlement of options | 27 | 12 | ||||
Proceeds from employee stock purchase plan | 86 | 84 | ||||
Exercise of warrants | 6,175 | 6,000 | ||||
Net cash provided by financing activities | 8,968 | 10,833 | ||||
Net increase in cash and cash equivalents and restricted cash | 3,082 | 3,868 | ||||
Cash and cash equivalents and restricted cash, beginning of period | 17,401 | 7,812 | ||||
Cash and cash equivalents and restricted cash, end of period | $ | 20,483 | $ | 11,680 | ||
Supplemental disclosure of cash flow information | ||||||
Cash paid for interest | $ | 339 | $ | 269 | ||
Supplemental disclosure of non-cash investing and financing activities | ||||||
Property, plant and equipment included in accounts payable and accrued liabilities | $ | 43 | $ | 93 | ||
Right of use assets (non-cash) acquired | $ | 253 | $ | — |
Source:
2021 GlobeNewswire, Inc., source