• Reported revenues increased 104 percent year-over-year to approximately $135 million, including an increase of 80 percentin proprietary revenues.
• Reported gross profit was $9.5 million ($4.3 million when excluding an approximate $5.2 million impact from open mark-to-market timing differences).
• The Company improved its 2023 guidance for Adjusted EBITDA and free cash flow.
ST. LOUIS, MO – May 10, 2023 – Benson Hill, Inc. (NYSE: BHIL, the “Company” or “Benson Hill”), a food tech company unlocking the natural genetic diversity of plants, today announced operating and financial results for the quarter ended March 31, 2023.
“Our first quarter results represent a continuation of the momentum created in 2022,” said Matt Crisp, Chief Executive Officer of Benson Hill. “We are confident this year can represent an inflection point for proprietary revenue growth and margin expansion as we lean into the capabilities of our closed-loop model and realize a greater anticipated contribution from partnership and licensing agreements.”
First Quarter Results Compared to the Same Period of 2022
The following financial results exclude the pending divestiture of the Fresh business announced on January 3, 2023, which is now recorded as discontinued operations. The impact of open mark-to-market timing differences on the profit and loss statement and reconciliation of non-GAAP financial measures can be found in the accompanying financial tables.
- Revenues were $134.6 million, an increase of $68.5 million, or 103.6 percent. Strong demand from customers and greater availability of proprietary soy ingredients, meal and edible oil products resulted in an 80 percent increase in proprietary revenues to $25.3 million. Non-proprietary revenues increased more than 100 percent from a continuation of favorable soy and yellow pea commodity prices and strong operational execution. Reported revenues include a favorable $6.7 million impact from open mark-to-market timing differences.
- Gross profit was $9.5 million, an increase of $18.5 million. Excluding an approximate $5.2 million favorable impact from open mark-to-market timing differences, gross profit was $4.3 million and gross margins were approximately 3.4 percent. Favorable top line growth, proprietary revenue mix, and contributions from partnership and licensing agreements were partially offset by ongoing inflationary and supply chain pressures.
- Operating expenses were $28.8 million, a decrease of $3.7 million. The majority of the improvement was from actions associated with the Company’s Liquidity Improvement Plan. Approximately $6.1 million of operating expense in the quarter related to non-cash items primarily stock compensation and depreciation.
- Selling, general and administrative expenses were $16.2 million, a decrease of $4.1 million or 20.2 percent.
- R&D expenses were $12.6 million, an increase of $0.3 million or 2.8 percent.
- Inclusive of open mark-to-market timing differences, net loss from continuing operations was $4.8 million, a decrease in loss of $12.6 million or 72.2 percent. Adjusted EBITDA was a loss of $10.7 million, or an approximate loss of $16.0 million when excluding the impact from open mark-to-market timing differences.
- Cash, restricted cash, and marketable securities of $131.0 million were on hand as of March 31, 2023.
Excludes the Fresh business which is classified as discontinued operations.
Management reaffirmed its guidance for proprietary revenues in the range of $100 million to $110 million, a 40 percent to 50 percent increase over the prior year. Consistent with prior guidance, non-proprietary revenues are expected to decline moderately in favor of proprietary products, which sets the expectation for consolidated revenues to be in the range of $390 million to $430 million.
Consistent with prior guidance, consolidated gross profit is expected to be in the range of $20 million to $30 million driven by anticipated increases in proprietary sales, greater anticipated contribution from partnership and licensing agreements, and favorable soy commodity markets for non-proprietary product sales. This outlook includes assumptions for a continuation of inflationary pressures and challenges in supply chain logistics.
The Company has taken actions to realize an annual run rate cash savings of more than $10 million from its Liquidity Improvement Plan, which is now expected to lower full year operating expenses to $115 million to $120 million. As a result, management has improved its expected net loss from continuing operations to a range of $115 million to $125 million, Adjusted EBITDA loss to a range of $53 million to $58 million, and free cash flow outflow to a range of $110 million to $118 million.
A webcast of the earnings conference call will begin at 8:30 a.m. EDT today. The link to participate is available on the Investor Relations page of the Company’s website.
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 Twitter at @bensonhillinc.
Use of Non-GAAP Financial Measures
In this press release, the Company includes references to non-GAAP performance measures. The Company uses these non-GAAP financial measures to facilitate management’s 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. 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 press release 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 current guidance regarding certain expected 2023 financial and operating results, including guidance regarding consolidated, proprietary and non-proprietary revenues, anticipated contribution from partnership and licensing agreements, margins, consolidated gross profit, net loss from continuing operations, Adjusted EBITDA, run rate cash savings, operating expenses, and free cash flow; statements regarding the Company’s current expectations and assumptions regarding the industries and markets in which it operates, and macro-economic trends, including regarding commodity markets and inflationary pressures; projections of market opportunity and supply chain constraints; statements regarding the Company’s Liquidity Improvement Plan, actions to implement such plan, and the anticipated benefits of such plan; expectations regarding revenue and gross profit mix; expectations regarding future costs and uses of free cash flow; expectations regarding the unwinding of mark-to-market timing differences and the Company’s assessment of its futures contracts; any financial or other information based upon or otherwise incorporating judgments or estimates relating to future performance, events or expectations; expectations regarding the Company’s hedging and other risk management strategies, including expectations about future sales and purchases that relate to the Company’s mark-to-market adjustments and the fair valuation of futures contracts; 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. Factors that may cause actual results to differ materially from current expectations and guidance include, but are not limited to: risks associated with the Company’s Liquidity Improvement Plan, including potentially adverse impacts on the Company’s business and prospects even if such plan is successful; the risk that the Company’s actions relating to its Liquidity Improvement Plan may be insufficient to achieve the objectives of such plan; risks associated with the Company’s ability to grow and achieve growth profitably, including continued access to the capital resources necessary for growth; the risk that the Company will be unable to renegotiate or retire any of its existing debt by entering into an amended or new facility in a timely manner, on favorable terms, or at all; risks relating to the failure to realize the anticipated benefits of the Company’s shelf registration statement, including its at-the-market facility, or otherwise fail to raise equity or other capital to supplement its cash needs; risks relating to the Company’s hedging and other risk management strategies, including expectations about future sales and purchases that relate to the Company’s mark-to-market adjustments and the fair valuation of futures contracts; the risk that the Company will not realize the anticipated benefits of the divestiture of the Fresh business, including risks relating to the failure to satisfy the conditions to the consummation of the pending transaction to sell the remaining assets of the Fresh business, and the risk that such transaction may not be completed in a timely manner or at all; risks associated with managing capital resources; risks associated with maintaining relationships with customers and suppliers and developing and maintaining partnering and licensing relationships; risks associated with changing industry conditions and consumer preferences; risks associated with the Company’s ability to generally execute on its business strategy; risks associated with the effects of global and regional economic, agricultural, financial and commodities market, political, social and health conditions; risks associated with the Company’s transition to becoming a public company; 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. Forward-looking statements are also subject to the risks and other issues described above under “Use of Non-GAAP Financial Measures,” which could cause actual results to differ materially from current expectations included in the Company’s forward-looking statements included in this press release. Nothing in this press release 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, including without limitation, any expectations about our operational and financial performance or achievements. 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.
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