- Reported revenues for the quarter were approximately $21.1
million, excluding results of the divested processing assets, as
the business transitions to an asset-light licensing model.
- Business transition execution led to improved gross profit and
reduced operating expenses, with the Company delivering gross
profit of $5.2 million and operating expenses of $21.8 million,
compared to gross profit of $4.6 million and operating expenses of
$25.9 million in the prior year.
- Cash used in operating activities from continuing operations
was $10.2 million, a $24.3 million reduction from $34.5 million
used in the prior year. The Company ended the first quarter with
$30.5 million of cash and marketable securities.
- Feeding trial results with Perdue Farms demonstrate cost and
performance benefits of proprietary soybean meal in animal
feed.
- Management reiterates business strategy and financial
opportunity focused on innovation and partnerships in Shareholder
Letter.
Benson Hill, Inc. (NYSE: BHIL, the “Company” or “Benson Hill”),
an ag tech company unlocking the natural genetic diversity of
plants, today announced operating and financial results for the
quarter ended March 31, 2024.
This press release features multimedia. View
the full release here:
https://www.businesswire.com/news/home/20240509575037/en/
Benson Hill (BHIL) Transitions to
Licensing Model, Improves Financial Profile in First Quarter.
Benson Hill today announced operating and financial results for the
quarter ended March 31, 2024. (Photo: Business Wire)
“2024 represents a year of transition as we evolve our business
to a licensing model. In the first quarter Benson Hill took
decisive actions to strengthen our balance sheet and enhance our
financial flexibility,” said Deanie Elsner, Chief Executive Officer
of Benson Hill. “We also demonstrated our commitment to drive
operational efficiencies and reduce operating costs, while we
explore ways to optimize our capital structure following the
retirement of high-cost corporate debt.”
“Benson Hill has a significant competitive advantage, a defined
strategy, and a strong management team which positions us well to
enter larger markets such as animal feed and biofuels,” Elsner
added. “We have consistently demonstrated our ability to perform,
execute, and adapt to market dynamics. We have tremendous
confidence in our technology and in our team, and we look forward
to delivering solid performance throughout 2024.”
Key Milestones
During the first quarter of 2024, Benson Hill achieved multiple
milestones on its strategic path, positioning the Company for
long-term growth and value creation:
- The Company strengthened its balance sheet with the successful
divestiture of the Creston, Iowa, soy processing facility and
retirement of approximately $120 million in high-cost, restrictive
debt.
- Benson Hill’s financial profile will significantly shift due to
the reclassification of its soy processing revenues and associated
costs, which were approximately 73 percent of our 2023 revenues and
costs of goods sold. The expected growth in licensing revenue
within its plan is expected to generate an expansion in gross
profit margins relative to historical gross profit margin
levels.
- Management’s rigorous focus on cash management and expense
reduction successfully extended the cash runway.
- The team expanded partnerships with seed distributors and
industry stakeholders to accelerate the commercialization of its
innovative soybean varieties. Benson Hill is planting more than 42
varieties across 358 independent testing locations this crop year
to validate the agronomic characteristics of its genetics across
multiple maturity zones.
- Benson Hill also progressed product candidates with significant
yield improvements and continued innovation in soybean varieties
delivering higher-quality oil. Its robust commercial pipeline is in
the final stages of field testing, and the Company is on track to
significantly expand its seed portfolio from 22 to more than 35
varieties by 2025. New non-GMO, Ultra-High Protein, Low
Oligosaccharide (UHP-LO) varieties are expected to yield on par
with GMO commercial varieties by 2026. UHP-LO varieties containing
a herbicide-tolerance trait (to enhance weed control for large-acre
adoption) are on track to be commercialized in 2027.
- The team validated benefits of proprietary soybean meal in
animal feed. In particular, the Company’s proprietary UHP-LO
soybean varieties have shown compelling cost and performance
benefits, as evidenced by a recent feeding trial with Perdue Farms.
These results give management confidence in the expected value
creation of $100 to $230 per acre, compared to commodity
soybeans.
- The Company’s executive leadership team recently welcomed Susan
Keefe as Chief Financial Officer and Dan Cosgrove, former CEO of
Growers Edge, as Chief Administrative Officer and General Counsel.
The Company continues to invest in talent with diverse industry
experience.
First Quarter Results Compared to the Same Period of
2023
The following financial results exclude former Fresh Segment and
Seymour, Indiana, and Creston, Iowa, processing facilities reported
in discontinued operations. The reconciliation of non-GAAP
financial measures can be found in the accompanying financial
tables.
- The combined results of the Company’s divested businesses have
been reclassified and presented as discontinued operations,
resulting in a significant reduction in reported revenues and
related expenses. Moving forward, the primary source of revenue and
margins will come in the form of seed licensing royalties and
related technology access fees. Royalty revenues are expected to
grow in line with acreage acquisition.
- Reported revenues were $21.1 million, a decrease of $27.5
million, or 56.6 percent, driven by 2023 revenue from low margin
trading volumes generated by business development efforts that did
not repeat in 2024. Sales of other non-proprietary soybeans also
declined, partially offset by an increase in licensing
revenue.
- Gross profit was $5.2 million, an increase in profitability of
$0.6 million. While revenue declined significantly, the revenue
reductions were primarily in categories with low margins. The
revenue increase in partnerships and licensing agreements were
related to high margin contracts, driving overall gross profit
up.
- Operating expenses were $21.8 million, a decrease of $4.1
million, or 15.8 percent, which includes approximately $4.3 million
of non-recurring costs relating to exit costs for the divestiture
of the Creston facility, expenses related to business transition,
and other items. Operating expenses, as adjusted, which exclude
these non-recurring items, declined by 32.1 percent to $17.5
million for the quarter due to cost reductions realized through the
Company’s expanded Liquidity Improvement Plan.
- Selling, general, and administrative expenses were $14.8
million, an increase of $1.6 million, or 12.1 percent, inclusive of
$4.3 million of non-recurring costs.
- R&D expenses were $6.9 million, a decrease of $5.7 million,
or 45.1 percent.
- Net loss from continuing operations, net of income taxes, was
$26.3 million, an increase in reported loss of $19.5 million.
Adjusted EBITDA was a loss of $7.1 million, compared to a loss of
$14.5 million in the prior year which represents a reduction in
loss of $7.4 million, compared to the same period in 2023. The
improvement for 2024 was driven by a reduction in operating
expenses from actions associated with the execution of the expanded
Liquidity Improvement Plan.
- Cash and marketable securities of $30.5 million were on hand as
of March 31, 2024.
Outlook
“As we transition our business to a licensing model, our
revenues and costs will be lower, and our margins will increase
over time, which will drive improvement in the quality of our
earnings,” said Susan Keefe, Chief Financial Officer of Benson
Hill. “Our achievements in meeting milestones with partners and
advancing R&D efforts serve as a strong foundation for the next
stage of Benson Hill’s growth, supporting our pursuit of additional
sources of capital.”
Additional Details
Additional information about Benson Hill’s results can be found
in the Company’s shareholder letter and in the Current Report on
Form 8-K filed today with the SEC. Documents are also posted at
investors.bensonhill.com.
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
X, formerly known as Twitter at @bensonhillinc.
Use of Non-GAAP Financial Measures
In this press release, the Company includes references to
non-GAAP performance measures. The Company’s management uses these
non-GAAP financial measures to facilitate 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. In addition, the
Company has and may in the future modify how it calculates non-GAAP
performance measures. 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 letter 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
progress toward an asset-light business model, and the anticipated
pace of such transition; statements regarding the Company’s
financial and operating performance during its business transition;
statements regarding the Company’s cost-cutting measures under its
expanded Liquidity Improvement Plan and other cost-saving measures,
actions to implement such plan, and the anticipated benefits of and
timeline to implement such plans; statements regarding the
Company’s current expectations and assumptions regarding the
industries and markets in which it operates, including its
transition to an asset-light business model to serve broadacre
animal feed markets; statements regarding strategic partnership and
licensing opportunities; statements regarding the Company’s
anticipated liquidity, path to profitability, and runway for
growth; expectations regarding the sources of expected revenues,
costs, profit and earnings; projections of market opportunity;
statements regarding the potential and capabilities of its
innovation pipeline and the expected timeline for the
commercialization of the Company’s current and anticipated
innovations; expectations regarding the Company’s ability to serve
a broadacre strategy through partnerships and licensing; statements
regarding the Company’s acreage acquisition plans; the anticipated
commercial and nutritional benefits of the Company’s UHP-LO soybean
meal, including any expectation that the findings associated with
the recent trial can be repeated or improved upon in the future,
including in broadacre application; the potential adoption of
UHP-LO by poultry producers or other animal companies, soybean
processors, or farmers; potential strategic partnership and
licensing opportunities; current projections and assumptions
regarding the Company’s business and the industries and markets in
which the Company currently operates or plans to operate, including
the broadacre animal feed market; expectations regarding the
Company’s ability to serve a broadacre strategy through
partnerships and licensing; the Company’s ability to identify and
evaluate its strategic alternatives and effect potential strategic
opportunities in ways that maximize shareholder value; expectations
regarding the Company’s ability to continue as a going concern;
statements regarding execution of the Company’s business plan, the
strategic review of the Company’s business, and the Company’s
executive leadership transition; any financial or other information
based upon or otherwise incorporating judgments or estimates
relating to future performance, events or expectations; statements
regarding 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; and
management’s strategy and plans for growth. Factors that may cause
actual results to differ materially from current expectations
include, but are not limited to: risks associated with the
Company’s ability to generally execute on its business strategy,
including its transition to an asset-light business model to serve
broadacre animal feed markets in a timely manner with sufficient
liquidity; risks relating to acreage acquisition; risks associated
with developing and maintaining partnering and licensing
relationships in an asset-light business model, and maintaining
relationships with customers and suppliers; the risk that the
Company will not realize the anticipated benefits of the
divestiture of its soy processing facilities; risks associated with
the loss of revenues from such facilities; risks associated with
growing and managing capital resources; risks associated with
changing industry conditions and consumer preferences; risks
associated with the Company’s cost-cutting measures under its
expanded Liquidity Improvement Plan and other cost saving measures,
including potentially adverse impacts on the Company’s business and
prospects even if such plans are successful; the risk that the
Company’s actions relating to cost-cutting measures under its
expanded Liquidity Improvement Plan and other cost saving measures
may be insufficient to achieve the objectives of such plans;
liquidity and other risks relating to the Company’s ability to
continue as a going concern; risks associated with the Company’s
ability to grow and achieve growth profitably, including continued
access to the capital resources necessary for growth; risks
relating to the failure to raise additional financing to satisfy
the Company’s cash needs; risks associated with the Company’s
execution of its executive leadership transition, including, among
others, risks relating to maintaining key employee, customer,
partner and supplier relationships; risks relating to the Company’s
exploration of strategic alternatives; risks associated with the
failure to realize the anticipated commercial or nutritional
benefits of the Company’s UHP-LO soybeans; risks that the benefits
validated by the recent trial may not be able to be repeated or
improved upon in the future, including in broadacre application;
risks associated with the accuracy and repeatability of feeding
trials generally; risks associated with the effects of global and
regional economic, agricultural, financial and commodities market,
political, social and health conditions; 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. The Company can make no
assurances that it will be able to raise additional financing,
improve its liquidity position, or continue as a going concern.
Nothing in this letter 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. 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.
Condensed Consolidated Balance
Sheets (Unaudited)
(In Thousands, Except Per
Share Data)
March 31, 2024
December 31,
2023
Assets
Current assets:
Cash and cash equivalents
$
6,646
$
8,934
Marketable securities
23,852
32,852
Accounts receivable, net
5,835
6,810
Inventories, net
14,970
14,860
Prepaid expenses and other current
assets
17,580
8,121
Current assets of discontinued
operations
16,844
103,177
Total current assets
85,727
174,754
Property and equipment, net
25,056
26,533
Finance lease right-of-use assets, net
57,579
59,245
Operating lease right-of-use assets
2,879
2,934
Intangible assets, net
5,087
5,226
Other assets
8,959
6,072
Total assets
$
185,287
$
274,764
Liabilities and stockholders’
equity
Current liabilities:
Accounts payable
$
7,106
$
4,397
Finance lease liabilities, current
portion
4,210
3,705
Operating lease liabilities, current
portion
884
842
Long-term debt, current portion
1,897
55,201
Accrued expenses and other current
liabilities
20,373
21,352
Current liabilities of discontinued
operations
632
18,802
Total current liabilities
35,102
104,299
Long-term debt, less current portion
4,874
5,250
Finance lease liabilities, less current
portion
72,540
73,682
Operating lease liabilities, less current
portion
4,081
4,299
Warrant liabilities
1,418
1,186
Conversion option liabilities
—
5
Other non-current liabilities
26
—
Total liabilities
118,041
188,721
Stockholders’ equity:
Common stock, $0.0001 par value, 440,000
and 440,000 shares authorized, 211,841 and 208,395 shares issued
and outstanding at March 31, 2024, and December 31, 2023,
respectively
21
21
Additional paid-in capital
612,865
611,477
Accumulated deficit
(545,069
)
(523,786
)
Accumulated other comprehensive loss
(571
)
(1,669
)
Total stockholders’ equity
67,246
86,043
Total liabilities and stockholders’
equity
$
185,287
$
274,764
Benson Hill, Inc.
Condensed Consolidated
Statements of Operations (Unaudited)
(In Thousands, Except Per
Share Data)
Three Months Ended March
31,
2024
2023
Revenues
$
21,133
$
48,667
Cost of sales
15,895
44,024
Gross profit
5,238
4,643
Operating expenses:
Research and development
6,941
12,642
Selling, general and administrative
expenses
14,828
13,227
Total operating expenses
21,769
25,869
Loss from operations
(16,531
)
(21,226
)
Other (income) expense:
Interest expense, net
8,596
6,372
Changes in fair value of warrants and
conversion option
227
(21,696
)
Other expense, net
960
868
Total other (income) expense, net
9,783
(14,456
)
Net loss from continuing operations before
income taxes
(26,314
)
(6,770
)
Income tax expense
—
15
Net loss from continuing operations, net
of income taxes
(26,314
)
(6,785
)
Net income from discontinued operations,
net of tax
5,031
3,731
Net loss attributable to common
stockholders
$
(21,283
)
$
(3,054
)
Net loss per common share:
Basic and diluted net loss per common
share from continuing operations
$
(0.14
)
$
(0.04
)
Basic and diluted net income per common
share from discontinued operations
$
0.03
$
0.02
Basic and diluted total net loss per
common share
$
(0.11
)
$
(0.02
)
Weighted average shares outstanding:
Basic and diluted weighted average shares
outstanding
190,997
187,113
Benson Hill, Inc.
Condensed Consolidated
Statements of Comprehensive Loss (Unaudited)
(In Thousands)
Three Months Ended March
31,
2024
2023
Net loss attributable to common
stockholders
$
(21,283
)
$
(3,054
)
Other comprehensive income (loss):
Foreign currency translation
adjustment
(13
)
—
Change in fair value of available-for-sale
marketable securities, net of deferred taxes
1,111
856
Total other comprehensive income
1,098
856
Total comprehensive loss
$
(20,185
)
$
(2,198
)
Benson Hill, Inc.
Condensed Consolidated
Statements of Cash Flows (Unaudited)
(In Thousands)
Three Months Ended March
31,
2024
2023
Operating activities
Net loss
$
(21,283
)
$
(3,054
)
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation and amortization
4,226
5,263
Stock-based compensation expense
1,276
2,814
Bad debt expense
19
(228
)
Changes in fair value of warrants and
conversion option
227
(21,696
)
Accretion and amortization related to
financing activities
6,191
2,018
Realized losses on sale of marketable
securities
1,155
1,050
Other
(2,834
)
650
Changes in operating assets and
liabilities:
Accounts receivable
2,594
(1,188
)
Inventories
5,501
11,663
Other assets and other liabilities
(4,820
)
(1,289
)
Accounts payable
(5,061
)
(18,471
)
Accrued expenses
(2,236
)
(15,225
)
Net cash used in operating activities
(15,045
)
(37,693
)
Investing activities
Purchases of marketable securities
(29,541
)
(23,277
)
Proceeds from maturities of marketable
securities
14,263
25,997
Proceeds from sales of marketable
securities
24,387
38,927
Purchase of property and equipment
(409
)
(2,680
)
Proceeds from divestiture of discontinued
operations
57,713
—
Other
2
27
Net cash provided by investing
activities
66,415
38,994
Financing activities
Repayments of long-term debt
(59,871
)
(843
)
Payments of debt issuance costs
—
(2,000
)
Borrowing under revolving line of
credit
1,708
—
Repayments under revolving line of
credit
(1,708
)
—
Payments of finance lease obligations
(987
)
(794
)
Proceeds from exercise of stock awards,
net of withholding taxes
95
122
Net cash used in financing activities
(60,763
)
(3,515
)
Effect of exchange rate changes on
cash
(13
)
—
Net decrease in cash and cash
equivalents
(9,406
)
(2,214
)
Cash, cash equivalents and restricted
cash, beginning of period
16,081
43,321
Cash, cash equivalents and restricted
cash, end of period
$
6,675
$
41,107
Supplemental disclosure of cash flow
information
Cash paid for interest
$
2,772
$
4,698
Supplemental disclosure of non-cash
activities
Purchases of property and equipment
included in liabilities
$
21
$
326
Benson Hill, Inc.
Non-GAAP
Reconciliation
(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, changes in fair value of warrants and conversion
options, realized (gains) losses on marketable securities, goodwill
and long-lived asset impairment, restructuring-related costs
(including severance costs) 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. The Company defines operating expenses, as adjusted
as operating expenses excluding expenses incurred in relation to
the transition to an asset-light business model and significant
non-recurring items.
Adjustments to reconcile net loss from our
continuing operations to Adjusted EBITDA:
Three Months Ended March
31,
2024
2023
Net loss from continuing operations, net
of income taxes
$
(26,314
)
$
(6,785
)
Interest expense, net
8,596
6,372
Income tax expense
—
15
Depreciation and amortization
3,827
3,474
Stock-based compensation
1,276
2,814
Changes in fair value of warrants and
conversion option
227
(21,696
)
Exit costs related to divestiture of
Creston facility
2,888
—
Business transformation
324
—
Severance
1,074
112
Other
1,018
1,232
Total Adjusted EBITDA
$
(7,084
)
$
(14,462
)
Adjustments to reconcile net loss from our
continuing operations to free cash flow loss:
Three Months Ended March
31,
2024
2023
Net loss from continuing operations, net
of income taxes
$
(26,314
)
$
(6,785
)
Depreciation and amortization
3,827
3,474
Stock-based compensation
1,276
2,814
Changes in fair value of warrants and
conversion option
227
(21,696
)
Accretion and amortization related to
financing activities
6,191
2,018
Change in working capital
3,452
(15,982
)
Other
1,099
1,646
Net cash used in operating activities
(10,242
)
(34,511
)
Payments for acquisitions of property and
equipment
(409
)
(2,397
)
Free cash flow loss
$
(10,651
)
$
(36,908
)
Adjustments to reconcile operating
expenses to operating expenses, as adjusted:
Three Months Ended March
31,
2024
2023
Operating expenses
$
21,769
$
25,869
Exit costs related to divestiture of
Creston facility
(2,888
)
—
Expenses related to business
transition
(324
)
—
Severance
(1,074
)
(112
)
Operating expenses, as adjusted
$
17,483
$
25,757
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240509575037/en/
Investors: Tana Murphy: (314) 579-3184 /
investors@bensonhill.com Media: Christi Dixon: (636) 359-0797 /
cdixon@bensonhill.com
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