Local Bounti Announces First Quarter 2024 Financial Results
First customer deliveries from
Expands penetration in
Expected to close on
Grab-and-Go Salad Kits gaining distribution momentum
Provides full year 2024 sales guidance of
"Our first quarter results were consistent with our expectations and demonstrated strong operational progress from a combination of recent improvements we've made to our business, keeping us on track to achieve positive adjusted EBITDA1 generation in early 2025," stated
First Quarter 2024 Financial Summary
- Sales increased 25% to
$8.4 million in the first quarter of 2024, as compared to$6.7 million in the prior year period. The increase was primarily due to increased production and growth in sales from the Company's facility inGeorgia . - Gross income was
$0.8 million in the first quarter of 2024. Adjusted gross margin percentage1 was approximately 24%, excluding depreciation, stock-based compensation, business combination related integration costs, and other nonrecurring items. Adjusted gross margin performance was driven by costs associated with the ongoing optimization and scaling up of the Company's facilities. The Company expects that, over time, its adjusted gross margin will increase as a percentage of sales, as a result of the continued scaling of the business and initiatives to optimize production costs. - Selling, general, and administrative expenses decreased by
$8.4 million to$7.6 million in the first quarter of 2024, as compared to$16.0 million in the prior year period, driven by cost savings actions the Company took in the fourth quarter of 2023 to streamline its organizational structure, as well as lower stock-based compensation expense. The Company expects to continue to benefit from its lower cost base through the end of 2024. - Net loss was
$24.1 million in the first quarter of 2024 as compared to net loss of$23.5 million for the prior year period. - Adjusted EBITDA1 loss was
$6.9 million , which excludes a net benefit of$0.9 million in stock-based compensation,$9.6 million in interest expense,$3.2 million of depreciation and amortization,$4.2 million loss on change in fair value of warrant liability, and$0.8 million of business combination and integration costs. Adjusted EBITDA loss for the first quarter of 2024 compares to a loss of$7.4 million in the prior year period and a loss of$9.4 million in the fourth quarter of 2023.
1See reconciliation of the non-GAAP measures at the end of this press release.
Commercial Facility Expansion Update
In the first quarter, the Company increased production by an additional 50% compared to
Commissioning Progressing at
The Company commenced operations and seeding at both its
Announces Intent to Expand Capacity at Existing Facilities in 2024
Plans remain underway to build additional capacity across the Company's network of facilities enabled with its Stack & Flow Technology. The locations and degree of expansion will be announced at a future date, but construction is currently anticipated to begin late in the second quarter of 2024. The planned expansions are designed to provide additional capacity and allow for the Company's growing product assortment to meet existing demand from
Next Facility to be Opened in the Midwest
The transition of the Company's
Starting in the second quarter of 2024,
The Company is set to expand its baby leaf assortment in the third quarter of 2024 by introducing several high-velocity offerings including Arugula, Baby Spinach & Spring
Stack & Flow Technology Patent
In
Capital Structure
The Company ended with cash and cash equivalents and restricted cash of
As of
The Company believes that it has access to capital to fund its operations, complete the construction of its ongoing projects, and reach positive adjusted EBITDA in early 2025. This includes cash on the balance sheet and construction financing arrangements.
The Company continues to pursue opportunities to lower its cost of capital and replace its construction financing, including sale leaseback transactions and its work with a licensed
Financial Outlook
Management is providing its full year 2024 sales guidance of
Conference Call
The Company will host a conference call with members of the
In addition, the call will be broadcast live via webcast, hosted at the "Investors" section of the Company's website at localbounti.com and will be archived online.
About
Forward-Looking Statements
This press release includes "forward-looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. In some cases, you can identify these forward-looking statements by the use of terms such as "expect," "will," "continue," "believe," expect," "estimate," "project," "intend," "should," "is to be," or similar expressions, and variations or negatives of these words, but the absence of these words does not mean that a statement is not forward-looking. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including, but not limited to statements regarding funding pursuant to the CCLs; shipments at the
Non-GAAP Financial Information
This press release contains references to adjusted EBITDA, adjusted gross profit, adjusted gross margin percentage and adjusted selling, general and administrative expense, which are adjusted from results based on generally accepted accounting principles in
These non-GAAP financial measures are provided to enhance the user's understanding of the Company's prospects for the future and the historical performance for the context of the investor. The Company's management team uses these non-GAAP financial measures in assessing performance, as well as in planning and forecasting future periods. These non-GAAP financial measures are not computed according to GAAP and the methods the Company uses to compute them may differ from the methods used by other companies. Non-GAAP financial measures are supplemental, should not be considered a substitute for, or superior to, financial information presented in accordance with GAAP and should be read only in conjunction with the Company's consolidated financial statements prepared in accordance with GAAP.
Refer to the attached financial supplement for a reconciliation of these non-GAAP financial measures to their most directly comparable GAAP measures for the three months ended
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2024 |
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2023 |
Assets |
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Current assets |
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Cash and cash equivalents |
$ 8,242 |
|
$ 10,326 |
Restricted cash |
6,489 |
|
6,569 |
Accounts receivable, net |
3,360 |
|
3,078 |
Inventory, net |
4,960 |
|
4,210 |
Prepaid expenses and other current assets |
2,620 |
|
2,805 |
Total current assets |
25,671 |
|
26,988 |
Property and equipment, net |
344,112 |
|
313,166 |
Operating lease right-of-use assets |
155 |
|
172 |
Intangible assets, net |
40,461 |
|
41,353 |
Other assets |
3,008 |
|
73 |
Total assets |
$ 413,407 |
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$ 381,752 |
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Liabilities and stockholders' equity |
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Current liabilities |
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Accounts payable |
$ 12,778 |
|
$ 14,640 |
Accrued liabilities |
19,314 |
|
17,204 |
Financing obligation |
25 |
|
— |
Operating lease liabilities |
76 |
|
97 |
Total current liabilities |
32,193 |
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31,941 |
Long-term debt, net of debt issuance costs |
329,775 |
|
277,985 |
Financing obligation, noncurrent |
49,397 |
|
49,225 |
Operating lease liabilities, noncurrent |
95 |
|
114 |
Warrant liability |
11,394 |
|
7,214 |
Total liabilities |
422,854 |
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366,479 |
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Commitments and contingencies |
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Stockholders' (deficit) equity |
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Common stock, 0.0001 par value, 400,000,000 shares authorized,
8,437,542 and 8,311,229 issued and outstanding as of December 31, 2023, respectively |
1 |
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1 |
Additional paid-in capital |
317,930 |
|
318,600 |
Accumulated deficit |
(327,378) |
|
(303,328) |
Total stockholders' (deficit) equity |
(9,447) |
|
15,273 |
Total liabilities and stockholders' equity |
$ 413,407 |
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$ 381,752 |
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Three Months Ended |
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2024 |
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2023 |
Sales |
$ 8,383 |
|
$ 6,698 |
Cost of goods sold(1)(2) |
7,597 |
|
6,419 |
Gross profit |
786 |
|
279 |
Operating expenses: |
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Research and development(1)(2) |
3,487 |
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3,576 |
Selling, general and administrative(1)(2) |
7,598 |
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15,981 |
Total operating expenses |
11,085 |
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19,557 |
Loss from operations |
(10,299) |
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(19,278) |
Other income (expense): |
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Change in fair value of warrant liability |
(4,180) |
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— |
Interest expense, net |
(9,608) |
|
(4,299) |
Other income |
37 |
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50 |
Net loss |
$ (24,050) |
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$ (23,527) |
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Net loss applicable to common stockholders per basic common share: |
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Basic and diluted |
$ (2.89) |
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$ (3.04) |
Weighted average common shares outstanding: |
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Basic and diluted |
8,325,944 |
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7,727,866 |
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(1) |
Amounts include stock-based compensation as follows: |
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Three Months Ended |
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2024 |
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2023 |
Cost of goods sold |
$ 21 |
|
$ 87 |
Research and development |
93 |
|
738 |
Selling, general and administrative |
(1,048) |
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5,134 |
Total stock-based compensation expense, net of amounts capitalized |
$ (934) |
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$ 5,959 |
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(2) |
Amounts include depreciation and amortization as follows: |
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Three Months Ended |
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2024 |
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2023 |
Cost of goods sold |
$ 1,203 |
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$ 936 |
Research and development |
797 |
|
566 |
Selling, general and administrative |
1,228 |
|
1,956 |
Total depreciation and amortization |
$ 3,228 |
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$ 3,458 |
LOCAL BOUNTI CORPORATION |
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RECONCILIATION OF GROSS PROFIT TO ADJUSTED GROSS PROFIT AND ADJUSTED GROSS MARGIN |
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Three Months Ended |
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2024 |
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2023 |
Sales |
$ 8,383 |
|
$ 6,698 |
Cost of goods sold |
7,597 |
|
6,419 |
Gross profit |
786 |
|
279 |
Depreciation |
1,203 |
|
936 |
Stock-based compensation |
21 |
|
87 |
Utilities price spike and inclement weather related costs |
— |
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727 |
Acquisition related integration costs |
— |
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157 |
Adjusted gross profit |
$ 2,010 |
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$ 2,186 |
Adjusted gross margin % |
24 % |
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33 % |
RECONCILIATION OF SELLING, GENERAL AND ADMINISTRATIVE EXPENSE TO ADJUSTED SELLING, GENERAL |
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Three Months Ended |
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2024 |
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2023 |
Selling, general and administrative |
$ 7,598 |
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$ 15,981 |
Stock-based compensation |
1,048 |
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(5,134) |
Depreciation and amortization |
(1,228) |
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(1,956) |
Business acquisition and strategic transaction due diligence and integration |
(842) |
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(1,552) |
Restructuring and business realignment costs |
(289) |
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— |
Adjusted selling, general and administrative |
$ 6,287 |
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$ 7,339 |
LOCAL BOUNTI CORPORATION |
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RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA |
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Three Months Ended |
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2024 |
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2023 |
Net loss |
$ (24,050) |
|
$ (23,527) |
Stock-based compensation expense |
(934) |
|
5,959 |
Interest expense, net |
9,608 |
|
4,299 |
Depreciation and amortization |
3,228 |
|
3,458 |
Utilities price spike and inclement weather related costs |
— |
|
727 |
Business acquisition and strategic transaction due diligence and integration |
842 |
|
1,709 |
Restructuring and business realignment costs |
289 |
|
— |
Change in fair value of warrant liability |
4,180 |
|
— |
Other income |
(37) |
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(50) |
Adjusted EBITDA |
$ (6,874) |
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$ (7,425) |
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