RALEIGH, N.C., March 28, 2022 (GLOBE NEWSWIRE) -- Marrone Bio Innovations, Inc. (NASDAQ: MBII), an international leader in sustainable bioprotection and plant health solutions, has provided its financial results for the fourth quarter and full year ended December 31, 2021. Key results include:
- Full year revenues rose 15.5%, with a 40.2% increase in the fourth quarter.
- Gross profit grew 19.1% and 31.5% for the full year and fourth quarter, respectively, with margins exceeding 59% in both periods.
- For the full year, net loss was $16.6 million and Adjusted EBITDA1 loss was $8.7 million, improvements of 17.9% and 21.2%, respectively.
- As announced March 16, 2022, Marrone Bio and Bioceres Crop Solutions (NASDAQ: BIOX) have entered into a definitive agreement to combine the companies in an all-stock transaction.
Selected Financial Highlights
| $ in millions | Q4 2021 | Q4 2020 | % Increase (Decrease) | FY 2021 | FY 2020 | % Increase (Decrease) |
| Revenues | $10.8 | $7.7 | 40.2% | $44.3 | $38.4 | 15.5% |
| Gross Profit | $6.5 | $4.9 | 31.5% | $27.2 | $22.9 | 19.1% |
| Gross Margin | 59.7% | 63.7% | -400 bps | 61.5% | 59.6% | +190 bps |
| Operating Expenses | $12.1 | $9.0 | 34.2% | $42.7 | $40.1 | 6.5% |
| Operating Expense Ratio | 111.6% | 116.6% | -500 bps | 96.3% | 104.4% | -820 bps |
| Net Income (Loss) | ($5.3) | ($4.2) | 26.2% | ($16.6) | ($20.2) | (17.9%) |
| Adjusted EBITDA1 | ($4.0) | ($2.2) | 78.7% | ($8.7) | ($11.0) | (21.2%) |
| Cash Used in Operations | ($3.4) | ($7.4) | (53.9%) | ($10.0) | ($16.0) | (37.6%) |
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.
Management Commentary
“We ended 2021 on a positive note, with high demand for our crop protection products ahead of the Northern Hemisphere growing season,” said Chief Executive Officer Kevin Helash. “We delivered solid revenue growth and higher gross profit in both the fourth quarter and full year. These results were in line with our prior projections and set the stage for our future growth.
“Looking forward, we anticipate revenue growth for the first half of 2022 will significantly outpace our rate of growth in the first half of 2021, with sales in the second quarter exceeding those in the first quarter, in line with our typical pattern,” Helash added.
Helash concluded, “On March 16, 2022, we announced our intention to merge with Bioceres. We look forward to completing the transaction in the third quarter of 2022.”
Fourth Quarter 2021 Financial and Operational Summary
- Strong demand for the company’s crop protection products for use in specialty crops in the United States -- notably Regalia® biofungicide, and Venerate® and Grandevo® bioinsecticides -- were the key contributors to the 40.2% increase in 2021 fourth quarter revenues.
- Gross profit in the 2021 fourth quarter was $6.5 million, as compared with $4.9 million in the fourth quarter of 2020, a 31.5% improvement. Gross margins of 59.7% were slightly lower than in the same period in 2020 as a function of product mix.
- Operating expenses were $12.1 million in the fourth quarter of 2021, as compared with $9.0 million in the fourth quarter of 2020. The 34.2% increase reflected higher legal and consulting expenses, primarily related to merger and acquisition activities, and one-time, upfront payments associated with research and development (R&D) agreements.
- The operating expense ratio – a key performance indicator that compares operating expenses to revenues – improved by 500 basis points to 111.6% as sales increased at a higher rate than costs.
- The net loss in the fourth quarter was $5.3 million in 2021, as compared with a net loss of $4.2 million in the fourth quarter of 2020. Fourth-quarter Adjusted EBITDA was a loss of $4.0 million in 2021, as compared with $2.2 million in 2020. Both the net loss and Adjusted EBITDA reflected the higher operating expenses in the quarter. Adjusted EBITDA is further described under “Use of Non-GAAP Financial Information” below.
- Cash used in operations was $3.4 million, as compared with a use of cash of $7.4 million in the same period in 2020.
Full Year 2021 Financial and Operational Summary
- Full year 2021 revenues of $44.3 million were a 15.5% increase from full year 2020 revenues of $38.4 million. The company recorded continued strong sales of seed treatments for the major row crops in the United States and Europe. Sales of bioprotection products in specialty crops expanded, although the pace of sales was slowed by drought conditions early in the year in the western United States.
- Gross profit rose 19.1% for the full year, with gross margins up 190 basis points to 61.5% as a result of product mix and manufacturing improvements.
- Operating expenses of $42.7 million, a 6.5% increase, were in line with the company’s commitment to maintain spending in line with 2020, plus inflation. In comparison, operating expenses for fiscal year 2020 benefited by $1.4 million from a Paycheck Protection Program (PPP) loan secured to retain employees supporting the essential agricultural industry during the COVID-19 pandemic, which has since been forgiven.
- The full year operating expense ratio was 96.3%. This 820 basis point improvement was a function of increased revenues and effective cost management.
- The net loss for 2021 was $16.6 million as compared with a net loss of $20.2 million in 2020, an 17.9% improvement. Adjusted EBITDA for the full year in 2021 improved by 21.2% to a loss of $8.7 million as compared with a loss of $11.0 million in 2020. Both metrics benefited from the increases in net sales and gross profit. Adjusted EBITDA is further described under “Use of Non-GAAP Financial Information” below.
- Cash used in operations for the full year 2021 was $10 million, as compared with a use of cash of $16 million in 2020. Cash used in operations for the full year 2020 benefited from $1.7 million in proceeds from the PPP loan.
Conference Call and Webcast
Management will host an investor conference call at 4:30 p.m. ET to discuss Marrone Bio Innovations’ fourth quarter and full year 2021 financial results, provide a corporate update, and conclude with a Q&A from participants. To participate, please use the following information:
Q4 2021 Conference Call and Webcast
Date: Monday, March 28, 2022
Time: 4:30 p.m. Eastern
U.S. Dial-in: 1-844-612-2103
International Dial-in: 1-918-922-3145
Conference ID: 2075879
Webcast: https://edge.media-server.com/mmc/p/7u5z3faa
Please dial in at least 10 minutes before the start of the call to ensure timely participation.
A telephonic playback of the call will be available through April 6, 2022. To listen, call 1-855-859-2056 in the United States, or 1-404-537-3406 internationally. Please use the conference ID number 2075879. 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 18 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 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
| YEAR ENDED | YEAR ENDED | ||||||
| DECEMBER 31, | DECEMBER 31, | ||||||
| 2021 | 2020 | ||||||
| Net Loss (AS REPORTED) | $ | (16,554 | ) | $ | (20,168 | ) | |
| Taxes | 45 | 29 | |||||
| Interest expense | 1,570 | 1,443 | |||||
| Depreciation and amortization | 3,531 | 3,558 | |||||
| EBITDA | $ | (11,408 | ) | $ | (15,138 | ) | |
| Stock based compensation | 3,351 | 3,595 | |||||
| Loss on modification of warrants | — | 72 | |||||
| Loss on issuance of new warrants | — | 1,391 | |||||
| Change in fair value of contingent consideration | (639 | ) | 445 | ||||
| Reduction in expenses related to PPP funds | — | (1,396 | ) | ||||
| Adjusted EBITDA | $ | (8,696 | ) | $ | (11,031 | ) | |
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, and other financial results; the potential benefits and value of the company’s products and statements regarding the potential completion of a merger transaction with Bioceres Crop Solutions. 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, shareholders and other relevant third parties and costs associated with the Bioceres transaction or any other strategic acquisitions or other business opportunities we elect to pursue, failure to satisfy any of the other conditions to the proposed transaction with Bioceres on a timely basis or at all, and the occurrence of events that may give rise to a right of one or both of the parties to terminate the definitive agreement with Bioceres. 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:
Telephone: 530-750-2800
info@marronebio.com
MARRONE BIO INNOVATIONS, INC.
Condensed Consolidated Balance Sheets
(Unaudited, In Thousands, Except Par Value)
| DECEMBER 31, | DECEMBER 31, | ||||||
| 2021 | 2020 | ||||||
| Assets | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 19,623 | $ | 15,841 | |||
| Accounts receivable | 13,211 | 10,113 | |||||
| Inventories | 8,633 | 6,618 | |||||
| Prepaid expenses and other current assets | 1,211 | 1,688 | |||||
| Total current assets | 42,678 | 34,260 | |||||
| Property, plant and equipment, net | 12,676 | 12,565 | |||||
| Right of use assets, net | 3,637 | 3,760 | |||||
| Intangible assets, net | 19,011 | 21,383 | |||||
| Goodwill | 6,740 | 6,740 | |||||
| Restricted cash | 1,560 | 1,560 | |||||
| Other assets | 754 | 929 | |||||
| Total assets | $ | 87,056 | $ | 81,197 | |||
| Liabilities and stockholders' equity | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 2,687 | $ | 1,895 | |||
| Accrued liabilities | 14,851 | 11,650 | |||||
| Deferred revenue, current portion | 360 | 374 | |||||
| Lease liability, current portion | 1,381 | 1,008 | |||||
| Debt, current portion, net | 25,909 | 9,301 | |||||
| Total current liabilities | 45,188 | 24,228 | |||||
| Deferred revenue, less current portion | 1,165 | 1,628 | |||||
| Lease liability, less current portion | 2,511 | 3,050 | |||||
| Debt, less current portion, net | 7,691 | 11,479 | |||||
| Debt due to related parties | — | 7,300 | |||||
| Other liabilities | 848 | 2,102 | |||||
| Total liabilities | 57,403 | 49,787 | |||||
| Commitments and contingencies | |||||||
| Stockholders' equity: | |||||||
| Preferred stock: $0.00001 par value; 20,000 shares authorized and no shares issued or outstanding at December 31, 2021 and 2020 | — | — | |||||
| Common stock: $0.00001 par value; 250,000 shares authorized, 182,224 and 167,478 shares issued and outstanding as of December 31, 2021 and 2020, respectively | 1 | 1 | |||||
| Additional paid in capital | 387,023 | 372,226 | |||||
| Accumulated deficit | (357,371 | ) | (340,817 | ) | |||
| Total stockholders' equity | 29,653 | 31,410 | |||||
| Total liabilities and stockholders' equity | $ | 87,056 | $ | 81,197 | |||
MARRONE BIO INNOVATIONS, INC.
Condensed Consolidated Statements of Operations
(In Thousands, Except Per Share Amounts)
(Unaudited)
| DECEMBER 31, | DECEMBER 31, | ||||||
| 2021 | 2020 | ||||||
| Revenues: | |||||||
| Product | $ | 43,812 | $ | 37,915 | |||
| License | 498 | 459 | |||||
| Total revenues | 44,310 | 38,374 | |||||
| Cost of product revenues | 17,064 | 15,505 | |||||
| Gross profit | 27,246 | 22,869 | |||||
| Operating Expenses: | |||||||
| Research, development and patent | 12,077 | 11,330 | |||||
| Selling, general and administrative | 30,573 | 28,734 | |||||
| Total operating expenses | 42,650 | 40,064 | |||||
| Loss from operations | (15,404 | ) | (17,195 | ) | |||
| Other income (expense): | |||||||
| Interest expense | (1,570 | ) | (1,443 | ) | |||
| Loss on modification of warrants | — | (72 | ) | ||||
| Loss on issuance of new warrants | — | (1,391 | ) | ||||
| Change in fair value of contingent consideration | 639 | (445 | ) | ||||
| Other income, net | (174 | ) | 407 | ||||
| Total other expense, net | (1,105 | ) | (2,944 | ) | |||
| Net loss before income taxes | (16,509 | ) | (20,139 | ) | |||
| Income tax expense | (45 | ) | (29 | ) | |||
| Net Loss | $ | (16,554 | ) | $ | (20,168 | ) | |
| Basic and diluted net loss per common share: | $ | (0.09 | ) | $ | (0.14 | ) | |
| Weighted-average shares outstanding used in computing basic and diluted net loss per common share: | 174,832 | 148,892 | |||||
MARRONE BIO INNOVATIONS, INC.
Condensed Consolidated Statements of Cash Flows
(Unaudited – In Thousands)
| DECEMBER 31, | DECEMBER 31, | ||||||
| 2021 | 2020 | ||||||
| Cash flows from operating activities | |||||||
| Net loss | $ | (16,554 | ) | $ | (20,168 | ) | |
| Adjustments to reconcile net loss to net cash used in operating activities: | |||||||
| Depreciation and amortization | 3,531 | 3,558 | |||||
| Gain on disposal of equipment | — | (9 | ) | ||||
| Change in inventory reserves | (35 | ) | (139 | ) | |||
| Right of use assets amortization | 1,036 | 807 | |||||
| Share-based compensation | 3,351 | 3,595 | |||||
| Non-cash interest expense | 179 | 226 | |||||
| Loss on modification of warrants | — | 72 | |||||
| Loss on issuance of new warrants | — | 1,391 | |||||
| Change in fair value of contingent consideration | (639 | ) | 445 | ||||
| Net changes in operating assets and liabilities: | |||||||
| Accounts receivable | (3,098 | ) | (4,188 | ) | |||
| Inventories | (1,980 | ) | 1,670 | ||||
| Prepaid Expenses and other assets | 652 | (219 | ) | ||||
| Accounts payable | 585 | (1,409 | ) | ||||
| Accrued and other liabilities | 4,718 | (148 | ) | ||||
| Lease Liability | (1,079 | ) | (825 | ) | |||
| Deferred revenue | (628 | ) | (618 | ) | |||
| Net cash used in operating activities | (9,961 | ) | (15,959 | ) | |||
| Cash flows from investing activities | |||||||
| Payment of consideration in connection with previous asset purchase | (750 | ) | (1,240 | ) | |||
| Purchases of property, plant and equipment | (1,093 | ) | (559 | ) | |||
| Proceeds from sale of equipment | — | 2 | |||||
| Net cash used in investing activities | (1,843 | ) | (1,797 | ) | |||
| Cash flows from financing activities | |||||||
| Proceeds from issuance of debt | — | 202 | |||||
| Proceeds from secured borrowings | 43,340 | 40,127 | |||||
| Repayment in secured borrowings | (37,476 | ) | (34,790 | ) | |||
| Repayment of debt | (372 | ) | (524 | ) | |||
| Exercise of stock options | — | 108 | |||||
| Equity offering costs | — | (104 | ) | ||||
| Net settlement of options | 87 | — | |||||
| Proceeds from employee stock purchase plan | 287 | 254 | |||||
| Exercise of warrants | 9,720 | 22,072 | |||||
| Net cash provided by financing activities | 15,586 | 27,345 | |||||
| Net increase in cash and cash equivalents and restricted cash | 3,782 | 9,589 | |||||
| Cash and cash equivalents and restricted cash, beginning of period | 17,401 | 7,812 | |||||
| Cash and cash equivalents and restricted cash, end of period | $ | 21,183 | $ | 17,401 | |||
| Supplemental disclosure of cash flow information | |||||||
| Cash paid for interest | $ | 1,383 | $ | 1,166 | |||
| Supplemental disclosure of non-cash investing and financing activities | |||||||
| Property, plant and equipment included in accounts payable and accrued liabilities | $ | 207 | $ | 44 | |||
| Right of use assets (non-cash) acquired | $ | 913 | $ | — | |||
| 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 | $ | — | |||
