Local Bounti Announces Full Year 2023 Financial Results
Commenced operations at
Expected to close on
Announces national expansion of Grab-and-Go Salad Kits
Received patent for proprietary Stack & Flow Technology®
Preliminary first quarter 2024 revenue grew 22% sequentially to approximately
"2023 was a defining year for
Full Year 2023 Financial Summary
- Sales increased 42% to
$27.6 million in 2023, as compared to$19.5 million in the prior year period. The increase was primarily due to inclusion of theApril 2022 Pete's acquisition in our results for the full twelve months, and growth in sales from the Company's facilities inGeorgia andMontana . - Gross profit was
$2.2 million in 2023. Adjusted gross margin percentage1 was approximately 27%, excluding depreciation, stock-based compensation, business combination related integration costs, and other nonrecurring items. Adjusted gross margin performance was driven by weather related variables at the Company'sCalifornia facilities that temporarily impacted yields, lower utilization at the Company'sGeorgia facility due to the implementation of its vertical Stack towers, and general cost inflation. 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 efforts to optimize production costs. - Selling, general, and administrative expenses decreased by
$18.1 million to$64.6 million in 2023, as compared to$82.7 million in the prior year period, driven by lower stock-based compensation expense and lower transaction related costs. The Company expects to save approximately$5 million on an annualized basis as a result of its recent actions to streamline its organizational structure. - Net loss was
$124.0 million in 2023 as compared to net loss of$111.1 million for the prior year period, which includes a non-cash goodwill impairment charge of$38.5 million in the fourth quarter of 2023. - Adjusted EBITDA1 loss was
$34.1 million , which excludes$16.3 million in stock-based compensation,$25.7 million in interest expense,$13.1 million of depreciation and amortization, a non-cash goodwill impairment charge of$38.5 million ,$18.5 million gain on change in fair value of warrant liability,$6.9 million of business combination and integration costs,$4.7 million of loss on disposal of fixed assets,$2.6 million of restructuring costs, and$0.7 million of utilities price spike and inclement weather related costs. Adjusted EBITDA loss in the prior year period was$29.8 million .
1See reconciliation of the non-GAAP measures at the end of this press release. |
Commercial Facility Expansion Update
In
The Company commenced operations and seeding at both its
Announces Intent to Expand Capacity at Existing Facilities in 2024
Plans are 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 Company expects to transition mid-year the majority of its
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 Spinach, Arugula, 50/50 Blend and Power Greens. While the Company is still scaling up these products, it is pleased to have delivered its first shipment of Spinach to customers in March out of the
Stack & Flow Technology Patent
In
Capital Structure
The Company ended the year 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 breakeven 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
Preliminary First Quarter Sales Results
The Company provided preliminary first quarter 2024 sales results of approximately
Management expects to provide full year 2024 sales guidance during its first quarter earnings release when it has improved visibility on the timing of commercial sales from its new
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; commencement of 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 and twelve months ended
CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share data) |
|||
|
|||
|
|
||
|
2023 |
|
2022 |
Assets |
|
|
|
Current assets |
|
|
|
Cash and cash equivalents |
$ 10,326 |
|
$ 13,666 |
Restricted cash |
6,569 |
|
11,272 |
Accounts receivable, net |
3,078 |
|
2,691 |
Inventory, net |
4,210 |
|
3,594 |
Prepaid expenses and other current assets |
2,805 |
|
2,881 |
Total current assets |
26,988 |
|
34,104 |
Property and equipment, net |
313,166 |
|
157,844 |
Operating lease right-of-use assets |
172 |
|
137 |
|
— |
|
38,481 |
Intangible assets, net |
41,353 |
|
47,273 |
Other assets |
73 |
|
901 |
Total assets |
$ 381,752 |
|
$ 278,740 |
|
|
|
|
Liabilities and stockholders' equity |
|
|
|
Current liabilities |
|
|
|
Accounts payable |
$ 14,640 |
|
$ 13,757 |
Accrued liabilities |
17,204 |
|
9,426 |
Operating lease liabilities |
97 |
|
84 |
Total current liabilities |
31,941 |
|
23,267 |
Long-term debt, net of debt issuance costs |
277,985 |
|
119,814 |
Financing obligation |
49,225 |
|
14,139 |
Operating lease liabilities, noncurrent |
114 |
|
187 |
Warrant liability |
7,214 |
|
— |
Total liabilities |
366,479 |
|
157,407 |
|
|
|
|
Commitments and contingencies |
|
|
|
|
|
|
|
Stockholders' equity |
|
|
|
Common stock, |
1 |
|
1 |
Additional paid-in capital |
318,600 |
|
300,645 |
Accumulated deficit |
(303,328) |
|
(179,313) |
Total stockholders' equity |
15,273 |
|
121,333 |
Total liabilities and stockholders' equity |
$ 381,752 |
|
$ 278,740 |
|
(1) Prior comparative period share amounts issued and outstanding have been retroactively adjusted to reflect the 1-for-13 Reverse Stock Split effective |
CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data) |
|||||||
|
|||||||
|
Three Months Ended |
|
Year Ended
|
||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
Sales |
$ 6,866 |
|
$ 6,638 |
|
$ 27,557 |
|
$ 19,474 |
Cost of goods sold(2)(3)(4) |
6,186 |
|
5,724 |
|
25,341 |
|
17,259 |
Gross profit |
680 |
|
914 |
|
2,216 |
|
2,215 |
Operating expenses: |
|
|
|
|
|
|
|
Research and development(3)(4) |
3,983 |
|
5,126 |
|
16,086 |
|
14,059 |
Selling, general and administrative(3)(4) |
17,468 |
|
17,941 |
|
64,559 |
|
82,682 |
|
38,481 |
|
— |
|
38,481 |
|
— |
Total operating expenses |
59,932 |
|
23,067 |
|
119,126 |
|
96,741 |
Loss from operations |
(59,252) |
|
(22,153) |
|
(116,910) |
|
(94,526) |
Other income (expense): |
|
|
|
|
|
|
|
Change in fair value of warrant liability |
1,566 |
|
— |
|
18,483 |
|
— |
Interest expense, net |
(7,869) |
|
(4,472) |
|
(25,745) |
|
(16,734) |
Other income |
1 |
|
93 |
|
157 |
|
189 |
Net loss |
$ (65,554) |
|
$ (26,532) |
|
$ (124,015) |
— |
$ (111,071) |
|
|
|
|
|
|
|
|
Net loss applicable to common stockholders per basic common share: |
|
|
|
|
|
|
|
Basic and diluted(1) |
$ (8.10) |
|
$ (3.85) |
|
$ (15.61) |
|
$ (16.57) |
Weighted average common shares outstanding: |
|
|
|
|
|
|
|
Basic and diluted(1) |
8,092,866 |
|
6,882,868 |
|
7,943,874 |
|
6,701,126 |
|
(1)
Prior comparative period share and per share amounts have been retroactively adjusted to reflect the 1-for-13 Reverse Stock Split effective
|
|
|
Three Months Ended |
|
Year Ended
|
||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
Cost of goods sold |
$ — |
|
$ — |
|
$ — |
|
$ 1,042 |
Total business combination fair value basis adjustment to inventory |
$ — |
|
$ — |
|
$ — |
|
$ 1,042 |
(3) Amounts include stock-based compensation as follows: |
|||||||
|
|||||||
|
Three Months Ended |
|
Year Ended
|
||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
Cost of goods sold |
$ 23 |
|
$ 23 |
|
$ 123 |
|
$ 104 |
Research and development |
(212) |
|
668 |
|
1,464 |
|
2,057 |
Selling, general and administrative |
2,805 |
|
4,859 |
|
14,687 |
|
37,005 |
Total stock-based compensation expense, net of amounts capitalized |
$ 2,616 |
|
$ 5,550 |
|
$ 16,274 |
|
$ 39,166 |
(4) Amounts include depreciation and amortization as follows: |
|||||||
|
|||||||
|
Three Months Ended |
|
Year Ended |
||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
Cost of goods sold |
$ 851 |
|
$ 1,083 |
|
$ 3,513 |
|
$ 2,957 |
Research and development |
751 |
|
544 |
|
2,505 |
|
1,304 |
Selling, general and administrative |
1,351 |
|
1,971 |
|
7,114 |
|
6,166 |
Total depreciation and amortization |
$ 2,953 |
|
$ 3,598 |
|
$ 13,132 |
|
$ 10,427 |
UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION (in thousands)
|
|||||||
RECONCILIATION OF GROSS PROFIT TO ADJUSTED GROSS PROFIT AND ADJUSTED GROSS MARGIN PERCENTAGE |
|||||||
|
|||||||
|
Three Months Ended |
|
Year Ended
|
||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
Sales |
$ 6,866 |
|
$ 6,638 |
|
$ 27,557 |
|
$ 19,474 |
Cost of goods sold |
6,186 |
|
5,724 |
|
25,341 |
|
17,259 |
Gross profit |
680 |
|
914 |
|
2,216 |
|
2,215 |
Depreciation |
851 |
|
1,083 |
|
3,513 |
|
2,957 |
Stock-based compensation |
23 |
|
23 |
|
123 |
|
104 |
Utilities price spike and inclement weather related costs |
— |
|
369 |
|
727 |
|
369 |
Acquisition related integration costs |
— |
|
168 |
|
838 |
|
736 |
Business combination fair value basis adjustment to inventory |
— |
|
— |
|
— |
|
1,042 |
Adjusted gross profit |
$ 1,554 |
|
$ 2,557 |
|
$ 7,417 |
|
$ 7,423 |
Adjusted gross margin % |
23 % |
|
39 % |
|
27 % |
|
38 % |
RECONCILIATION OF SELLING, GENERAL AND ADMINISTRATIVE EXPENSE TO ADJUSTED SELLING, GENERAL AND ADMINISTRATIVE EXPENSE |
|||||||
|
|||||||
|
Three Months Ended |
|
Year Ended
|
||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
Selling, general and administrative |
$ 17,468 |
|
$ 17,941 |
|
$ 64,559 |
|
$ 82,682 |
Stock-based compensation |
(2,805) |
|
(4,859) |
|
(14,687) |
|
(37,005) |
Depreciation and amortization |
(1,351) |
|
(1,966) |
|
(7,114) |
|
(6,166) |
Loss on disposal of fixed assets |
(3,486) |
|
(2,316) |
|
(4,709) |
|
(2,568) |
Business acquisition and strategic transaction due diligence and integration related costs |
(588) |
|
(1,013) |
|
(5,246) |
|
(7,656) |
Restructuring and business realignment costs |
(1,728) |
|
(431) |
|
(2,603) |
|
(1,052) |
Adjusted selling, general and administrative |
$ 7,510 |
|
$ 7,356 |
|
$ 30,200 |
|
$ 28,235 |
UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION (in thousands)
|
|||||||
RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA |
|||||||
|
|||||||
|
Three Months Ended |
|
Year Ended
|
||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
Net loss |
$ (65,554) |
|
$ (26,532) |
|
$ (124,015) |
|
$ (111,071) |
Stock-based compensation expense |
2,616 |
|
5,550 |
|
16,274 |
|
39,166 |
|
38,481 |
|
— |
|
38,481 |
|
— |
Interest expense, net |
7,869 |
|
4,472 |
|
25,745 |
|
16,734 |
Depreciation and amortization |
2,953 |
|
3,598 |
|
13,132 |
|
10,427 |
Business combination fair value basis adjustment to inventory |
— |
|
— |
|
— |
|
1,042 |
Utilities price spike and inclement weather related costs |
— |
|
369 |
|
727 |
|
369 |
Business acquisition and strategic transaction due diligence and integration related costs |
588 |
|
2,924 |
|
6,902 |
|
10,135 |
Restructuring and business realignment costs |
1,727 |
|
431 |
|
2,603 |
|
1,052 |
Loss on disposal of fixed assets |
3,486 |
|
2,316 |
|
4,709 |
|
2,568 |
Change in fair value of warrant liability |
(1,566) |
|
— |
|
(18,483) |
|
— |
Other income |
(1) |
|
(93) |
|
(157) |
|
(189) |
Adjusted EBITDA |
$ (9,401) |
|
$ (6,965) |
|
$ (34,082) |
|
$ (29,767) |
View original content to download multimedia:https://www.prnewswire.com/news-releases/local-bounti-announces-full-year-2023-financial-results-302100392.html
SOURCE