ST. LOUIS--(BUSINESS WIRE)--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 year ended December 31, 2022.
“2022 was an exceptional year for Benson Hill, and we expect 2023 to bring continued proprietary revenue growth and gross margin expansion led by our soy ingredient products,” said Matt Crisp, Chief Executive Officer of Benson Hill. “Demand for our innovations remains strong, although persistent high supply chain costs are impacting our profitability in certain food ingredient categories, which we believe will continue for the foreseeable future. To meet the needs of our customers, we will execute a more targeted growth strategy focused on the highest-margin proprietary products and one that de-emphasizes lower margin products. In addition, we are finalizing and expect to implement capital management changes designed to reduce debt, interest and operating expenses, and increase return on capital, while maintaining our commitment to fully fund the business. Our team demonstrated its ability to meet our strategic objectives, and we remain steadfast in our commitment to shareholders to achieve significant yet disciplined growth, as well as our target of profitability in 2025.”
Full Year 2022 Results as Compared to The Same Period of 2021
The financial results discussed in this press release exclude the Fresh business, which was divested in a two-part transaction announced on January 3, 2023, the initial portion of which was consummated on December 29, 2022, and the second portion of which is expected to close in the second quarter of 2023. The Company recorded the Fresh business as discontinued operations as of December 31, 2022. 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 on pages 6 and 12, respectively.
- Revenues were $381.2 million, an increase of $290.3 million, or 319 percent. Strong demand from customers and greater availability of proprietary soy ingredients, meal and edible oil products resulted in a near doubling of proprietary revenues to $72.6 million. Non-proprietary revenues increased significantly due to favorable soy and yellow pea commodity prices and operational excellence associated with the startup of two soy production facilities.
- Gross profit was $3.5 million, an increase of $9.4 million. Excluding approximately $4.9 million in losses due to open mark-to-market timing differences, gross profit was $8.5 million and gross margins were 2.2 percent. Favorable top line growth, proprietary revenue mix, and contributions from partnership and licensing agreements were partially offset by cost pressures in the supply chain as well as the impact from adverse weather in the month of December.
-
Operating expenses were $128.5 million, a $16.0 million increase, which includes $34.0 million for non-cash items primarily related to stock compensation and depreciation.
- Selling, general and administrative expenses were $81.0 million, an increase of $9.1 million or 13 percent.
- R&D expenses were $47.5 million, an increase of $6.9 million or 17 percent.
- All year-over-year operating expense increases were related to non-cash items.
- Inclusive of open mark-to-market timing differences, net loss from continuing operations was $99.7 million, a decrease in loss of $22.5 million or 18 percent. Adjusted EBITDA was a loss of $81.6 million, or a loss of $76.7 million, excluding the impact from open mark-to-market timing differences, which was in line with the prior year.
- Cash, restricted cash, and marketable securities of $175.0 million were on hand as of December 31, 2022.
Fourth Quarter 2022 Results as Compared to The Same Period of 2021
- Revenues were $99.2 million, an increase of $68.4 million, or 223 percent. The performance was driven by sales for both proprietary and non-proprietary soy and yellow pea products.
- Gross profit was $0.8 million, an increase in profitability of $4.0 million, and includes an approximately $3.3 million loss due to open mark-to-market timing difference. Gross margins were approximately 4 percent when excluding open mark-to-market timing differences.
- Inclusive of mark-to-market timing differences, net loss from continuing operations was $30.8 million, a decrease in loss of $10.4 million or 25.3 percent. Adjusted EBITDA was a loss of $21.4 million compared to a loss of $29.1 million.
Outlook
Excludes the Fresh segment which is now classified as discontinued operations.
Management expects continued strong demand for its proprietary products in 2023 resulting in a 40 percent to 50 percent increase in proprietary revenues to a range of $100 million to $110 million. 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.
Consolidated gross profit is expected to be in the range of $20 million to $30 million driven by anticipated increases in proprietary sales, increased revenues from partnership and licensing agreements, which is expected to have higher margins, and favorable soy commodity markets for non-proprietary product sales. This outlook includes assumptions for persistent inflationary and supply chain logistics.
The Company expects a net loss of $125 million to $135 million and Adjusted EBITDA loss in the range of $63 million to $68 million.
Capital expenditures are expected to be in the range of $20 million to $25 million due to a two-year capital project to add the capability for soy flour texturization at the Creston, Iowa facility.
Management is in the advanced stages of finalizing a plan designed to lower the cost of capital, increase return on capital, and reduce costs. During the back half of this year, the Company expects to retire the existing $100 million high-cost debt two years early and replace it with a conventional, lower cost lending facility. The Company intends to utilize its current shelf registration statement, including its ATM facility, or alternative equity financing, for up to $100 million to supplement the cash needed to fully fund the business to profitability in 2025. The anticipated retirement of the existing debt will incur pre-payment penalties and other costs that, along with the planned capital expenditures, is expected to result in a free cash flow loss in 2023 of $120 million to $128 million. Management is also exploring strategic options for its Seymour, Indiana, soy crush facility to deploy capital more effectively within the closed-loop operations, reduce costs, and increase return on capital.
Management remains committed to its objective of achieving positive Adjusted EBITDA and positive free cash flow in 2025. The adoption of the targeted growth strategy is expected to result in proprietary revenues in 2025 of at least $300 million compared to the prior target of over $350 million. Consolidated revenues are forecasted to be $400 million or greater. The target for gross margins remains at 25 percent.
Webcast
A webcast of the conference call will begin at 8:30 a.m. ET 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 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 plans to improve its capital structure; the Company’s current guidance regarding certain expected 2023 financial and operating results, including guidance regarding consolidated, proprietary and non-proprietary revenues and revenues from partnership and licensing agreements, margins, consolidated gross profit, net loss, Adjusted EBITDA, capital expenditures and use of free cash flow; expectations regarding actions intended to lower the cost of capital, increase return on capital, and reduce costs, including plans to retire its existing debt early and replace it with a conventional lending facility, including expectations regarding pre-payment penalties and other costs in connection therewith, plans regarding equity financing to supplement the cash needed to fully fund the business to profitability in 2025, and statements regarding the Company’s plans to explore strategic options for its Seymour, Indiana, soy crush facility; any statements regarding the Company’s plans to fully fund the business to profitability in 2025; expectations regarding macro-economic trends; expectations regarding the sources of expected consolidated revenue and gross profit growth, including improved commodity market conditions for non-proprietary product sales, and enhanced focus on higher margin product categories; 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; the expected timing and anticipated benefits of the divestiture of the Fresh business, including the consummation of the pending transaction pertaining to the Fresh assets remaining to be sold; 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; projections of market opportunity and supply chain constraints; the Company’s outlook and financial and other guidance; management’s strategy and plans for growth, including those intended to lower the cost of capital, increase return on capital and reduce costs. Factors that may cause actual results to differ materially from current expectations include, but are not limited to: risks associated with the Company’s inability to execute on its plans to lower the cost of capital, increase return on capital and reduce costs; the risk that the Company’s actions intended to fully fund the business to profitability in 2025 will be insufficient to achieve such objective; 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 capital to supplement its cash needs; risks relating to potential dilution; 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. The Company can make no assurances that it will be able to retire its existing debt early on the anticipated timeframe, or at all, or that it will be able to replace such debt with a conventional, lower cost, lending facility, or any facility, on favorable terms, in a timely manner, or at all. Similarly, the Company can make no assurances that it will be able to raise up to $100 million, or any amount, of equity financing, whether under the Company’s shelf registration statement, including its ATM facility, or otherwise. 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 through and including 2025. 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 disclaim any duty to update these forward-looking statements, except as otherwise required by law.
Benson Hill, Inc.
Material Items Included in Consolidated Revenues and Cost of Sales
(In Thousands)
Currently, the Company does not seek cash flow hedge accounting treatment for its derivative financial instruments and thus changes in fair value are reflected in current earnings.
Mark-to-market timing difference comprises the estimated net temporary impact resulting from unrealized period-end gains/losses associated with the fair valuation of futures contracts associated with the Company’s committed future operating capacity. These mark-to-market timing differences are not indicative of the Company’s operating performance.
The Company recorded the fair value of acquired sales and purchase contracts in the acquisition of the Company’s Creston, Iowa location, which are amortized, not marked-to-market, to revenues and cost of sales to the physical contracts.
The table below summarizes the pre-tax gains and losses related to derivatives and contract assets and liabilities:
|
Fiscal Year 2022 |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
Open Mark-to-Market Timing Differences |
||||||||||||||||||
|
2022
|
|
Q1
|
|
Q2
|
|
Q3
|
|
Q4
|
|
2022
|
||||||||||
Revenues |
$ |
381,233 |
|
|
$ |
(5,002 |
) |
|
$ |
3,885 |
|
$ |
3,267 |
|
$ |
(4,534 |
) |
|
$ |
383,617 |
|
Gross profit |
$ |
3,527 |
|
|
$ |
(8,181 |
) |
|
$ |
5,227 |
|
$ |
1,381 |
|
$ |
(3,353 |
) |
|
$ |
8,453 |
|
Total operating expenses |
$ |
128,534 |
|
|
$ |
— |
|
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
|
$ |
128,534 |
|
Net loss from continuing operations |
$ |
(99,700 |
) |
|
$ |
(8,181 |
) |
|
$ |
5,227 |
|
$ |
1,381 |
|
$ |
(3,353 |
) |
|
$ |
(94,774 |
) |
Adjusted EBITDA |
$ |
(81,645 |
) |
|
$ |
(8,181 |
) |
|
$ |
5,227 |
|
$ |
1,381 |
|
$ |
(3,353 |
) |
|
$ |
(76,719 |
) |
- 2022: The net temporary unrealized period-end loss on revenues and cost of sales was $2.4 million and $4.9 million, respectively. Management expects the open mark-to-market timing differences to unwind in the coming months.
- See Adjusted EBITDA reconciliation on page 12.
Benson Hill, Inc. Consolidated Balance Sheets (Unaudited) (In Thousands) |
|||||||
|
December 31, |
||||||
|
2022 |
|
2021 |
||||
Assets |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
25,053 |
|
$ |
78,940 |
||
Marketable securities |
|
132,121 |
|
|
103,689 |
||
Accounts receivable, net |
|
28,591 |
|
|
22,128 |
||
Inventories, net |
|
62,110 |
|
|
37,004 |
||
Prepaid expenses and other current assets |
|
29,346 |
|
|
16,806 |
||
Current assets held for sale |
|
23,507 |
|
|
24,791 |
||
Total current assets |
|
300,728 |
|
|
283,358 |
||
Property and equipment, net |
|
99,759 |
|
|
98,076 |
||
Right of use asset, net |
|
68,193 |
|
|
73,712 |
||
Goodwill and intangible assets, net |
|
27,377 |
|
|
35,397 |
||
Other assets |
|
4,863 |
|
|
4,538 |
||
Noncurrent assets held for sale |
|
— |
|
|
39,816 |
||
Total assets |
$ |
500,920 |
|
$ |
534,897 |
||
Liabilities and stockholders’ equity |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable |
$ |
36,717 |
|
|
$ |
20,288 |
|
Current lease liability |
|
3,682 |
|
|
|
1,831 |
|
Current maturities of long-term debt |
|
2,242 |
|
|
|
6,901 |
|
Accrued expenses and other liabilities |
|
33,435 |
|
|
|
25,608 |
|
Current liabilities held for sale |
|
16,441 |
|
|
|
17,054 |
|
Total current liabilities |
|
92,517 |
|
|
|
71,682 |
|
Long-term debt |
|
103,991 |
|
|
|
77,035 |
|
Long-term lease liability |
|
77,722 |
|
|
|
77,152 |
|
Warrant liabilities |
|
24,285 |
|
|
|
46,051 |
|
Conversion option liability |
|
8,091 |
|
|
|
8,783 |
|
Deferred tax liabilities |
|
283 |
|
|
|
294 |
|
Other non-current liabilities |
|
129 |
|
|
|
316 |
|
Noncurrent liabilities held for sale |
|
— |
|
|
|
2,137 |
|
Total liabilities |
|
307,018 |
|
|
|
283,450 |
|
Stockholders’ equity: |
|
|
|
||||
Redeemable convertible preferred stock, $0.0001 par value; 1,000 authorized, no shares issued and outstanding as of December 31, 2022 and 2021, respectively |
|
— |
|
|
|
— |
|
Common stock, $0.0001 par value, 440,000 and 440,000 shares authorized; 206,668 and 178,089 shares issued and outstanding as of December 31, 2022 and 2021, respectively |
|
21 |
|
|
|
18 |
|
Additional paid-in capital |
|
609,450 |
|
|
|
533,101 |
|
Accumulated deficit |
|
(408,474 |
) |
|
|
(280,569 |
) |
Accumulated other comprehensive loss |
|
(7,095 |
) |
|
|
(1,103 |
) |
Total stockholders’ equity |
|
193,902 |
|
|
|
251,447 |
|
Total liabilities and stockholders’ equity |
$ |
500,920 |
|
|
$ |
534,897 |
|
Benson Hill, Inc. Consolidated Statements of Operations (Unaudited) (In Thousands, Except Per Share Information) |
|||||||||||||||
|
Three Months Ended December 31, |
|
Year Ended December 31, |
||||||||||||
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Revenues |
$ |
99,180 |
|
|
$ |
30,732 |
|
|
$ |
381,233 |
|
|
$ |
90,945 |
|
Cost of sales |
|
98,391 |
|
|
|
33,972 |
|
|
|
377,706 |
|
|
|
96,846 |
|
Gross profit (loss) |
|
789 |
|
|
|
(3,240 |
) |
|
|
3,527 |
|
|
|
(5,901 |
) |
Operating expenses: |
|
|
|
|
|
|
|
||||||||
Research and development |
|
11,761 |
|
|
|
14,171 |
|
|
|
47,500 |
|
|
|
40,574 |
|
Selling, general and administrative expenses |
|
21,586 |
|
|
|
21,534 |
|
|
|
81,034 |
|
|
|
71,947 |
|
Total operating expenses |
|
33,347 |
|
|
|
35,705 |
|
|
|
128,534 |
|
|
|
112,521 |
|
Loss from operations |
|
(32,558 |
) |
|
|
(38,945 |
) |
|
|
(125,007 |
) |
|
|
(118,422 |
) |
Other (income) expense: |
|
|
|
|
|
|
|
||||||||
Interest expense, net |
|
5,414 |
|
|
|
611 |
|
|
|
21,444 |
|
|
|
4,481 |
|
Loss on extinguishment of debt |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
11,742 |
|
Change in fair value of warrants and conversion |
|
(7,387 |
) |
|
|
398 |
|
|
|
(49,063 |
) |
|
|
(12,127 |
) |
Other (income) expense, net |
|
149 |
|
|
|
1,226 |
|
|
|
2,253 |
|
|
|
(549 |
) |
Total other (income) expense, net |
|
(1,824 |
) |
|
|
2,235 |
|
|
|
(25,366 |
) |
|
|
3,547 |
|
Net loss from continuing operations before income tax |
|
(30,734 |
) |
|
|
(41,180 |
) |
|
|
(99,641 |
) |
|
|
(121,969 |
) |
Income tax expense |
|
29 |
|
|
|
13 |
|
|
|
59 |
|
|
|
231 |
|
Net loss from continuing operations, net of tax |
|
(30,763 |
) |
|
|
(41,193 |
) |
|
|
(99,700 |
) |
|
|
(122,200 |
) |
Net loss from discontinued operations, net of tax |
|
(22,843 |
) |
|
|
(1,014 |
) |
|
|
(28,205 |
) |
|
|
(4,047 |
) |
Net loss |
$ |
(53,606 |
) |
|
$ |
(42,207 |
) |
|
$ |
(127,905 |
) |
|
$ |
(126,247 |
) |
|
|
|
|
|
|
|
|
||||||||
Net loss per common share: |
|
|
|
|
|
|
|
||||||||
Basic and diluted net loss per common share from continuing operations |
$ |
(0.17 |
) |
|
$ |
(0.26 |
) |
|
$ |
(0.55 |
) |
|
$ |
(1.00 |
) |
Basic and diluted net loss from discontinued operations, net of tax |
$ |
(0.12 |
) |
|
$ |
(0.01 |
) |
|
$ |
(0.16 |
) |
|
$ |
(0.04 |
) |
Basic and diluted net loss per common share |
$ |
(0.29 |
) |
|
$ |
(0.27 |
) |
|
$ |
(0.71 |
) |
|
$ |
(1.04 |
) |
Weighted average shares outstanding: |
|
|
|
|
|
|
|
||||||||
Basic and diluted weighted average shares outstanding |
|
186,787 |
|
|
|
158,323 |
|
|
|
179,867 |
|
|
|
121,838 |
|
|
|
|
|
|
|
|
|
||||||||
Benson Hill, Inc. Consolidated Statements of Comprehensive Loss (Unaudited) (In Thousands) |
|||||||||||||||
|
Three Months Ended December 31, |
|
Year Ended December 31, |
||||||||||||
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Net loss |
$ |
(53,606 |
) |
|
$ |
(42,207 |
) |
|
$ |
(127,905 |
) |
|
$ |
(126,247 |
) |
Foreign currency: |
|
|
|
|
|
|
|
||||||||
Comprehensive (loss) income |
|
37 |
|
|
|
(26 |
) |
|
|
(9 |
) |
|
|
4 |
|
|
|
37 |
|
|
|
(26 |
) |
|
|
(9 |
) |
|
|
4 |
|
Marketable securities: |
|
|
|
|
|
|
|
||||||||
Comprehensive loss |
|
6,240 |
|
|
|
(1,963 |
) |
|
|
(3,678 |
) |
|
|
(1,813 |
) |
Adjustments for net (losses) income realized in net loss |
|
(4,437 |
) |
|
|
1,234 |
|
|
|
(2,305 |
) |
|
|
1,031 |
|
|
|
1,803 |
|
|
|
(729 |
) |
|
|
(5,983 |
) |
|
|
(782 |
) |
Total other comprehensive (loss) income |
|
1,840 |
|
|
|
(755 |
) |
|
|
(5,992 |
) |
|
|
(778 |
) |
Total comprehensive loss |
$ |
(51,766 |
) |
|
$ |
(42,962 |
) |
|
$ |
(133,897 |
) |
|
$ |
(127,025 |
) |
Benson Hill, Inc. Consolidated Statements of Cash Flows (Unaudited) (In Thousands) |
|||||||
|
Year Ended December 31, |
||||||
|
|
2022 |
|
|
|
2021 |
|
Operating activities |
|
|
|
||||
Net loss |
$ |
(127,905 |
) |
|
$ |
(126,247 |
) |
Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
|
||||
Depreciation and amortization |
|
22,836 |
|
|
|
12,817 |
|
Stock-based compensation expense |
|
19,520 |
|
|
|
7,183 |
|
Bad debt expense |
|
863 |
|
|
|
309 |
|
Change in fair value of warrants and conversion options |
|
(49,063 |
) |
|
|
(12,127 |
) |
Amortization related to financing activities |
|
9,279 |
|
|
|
1,389 |
|
Loss on extinguishment of debt |
|
— |
|
|
|
11,742 |
|
Loss on divestiture of discontinued operations |
|
10,246 |
|
|
|
— |
|
Impairment |
|
11,579 |
|
|
|
— |
|
Loss on investments and amortization on premiums |
|
4,755 |
|
|
|
— |
|
Other |
|
4,579 |
|
|
|
(65 |
) |
Changes in operating assets and liabilities: |
|
|
|
||||
Accounts receivable |
|
(3,070 |
) |
|
|
(7,038 |
) |
Inventories |
|
(4,663 |
) |
|
|
(11,690 |
) |
Other assets |
|
6,542 |
|
|
|
(13,149 |
) |
Accounts payable |
|
(5,313 |
) |
|
|
11,293 |
|
Accrued expenses |
|
6,419 |
|
|
|
7,539 |
|
Other liabilities |
|
— |
|
|
|
294 |
|
Net cash used in operating activities |
|
(93,396 |
) |
|
|
(117,750 |
) |
Investing activities |
|
|
|
||||
Purchases of marketable securities |
|
(372,170 |
) |
|
|
(648,923 |
) |
Proceeds from maturities of marketable securities |
|
139,063 |
|
|
|
2,499 |
|
Proceeds from sales of marketable securities |
|
193,250 |
|
|
|
639,612 |
|
Payments for acquisitions of property and equipment |
|
(16,486 |
) |
|
|
(31,490 |
) |
Payments made in connection with business acquisitions |
|
(1,034 |
) |
|
|
(116,287 |
) |
Proceeds from divestitures of discontinued operations |
|
17,131 |
|
|
|
— |
|
Net cash used in investing activities |
|
(40,246 |
) |
|
|
(154,589 |
) |
Financing activities |
|
|
|
||||
Net contributions from Merger, at-the-market offering and PIPE financing, net of transaction costs of $4,087 and $34,940 for 2022 and 2021, respectively |
|
81,109 |
|
|
|
285,378 |
|
Payments for extinguishment of debt |
|
— |
|
|
|
(43,082 |
) |
Principal payments on debt |
|
(7,288 |
) |
|
|
(4,400 |
) |
Proceeds from issuance of debt |
|
23,540 |
|
|
|
103,634 |
|
Borrowing under revolving line of credit |
|
19,774 |
|
|
|
20,954 |
|
Repayments under revolving line of credit |
|
(19,821 |
) |
|
|
(20,907 |
) |
Proceeds from issuance of redeemable convertible preferred stock, net of costs |
|
— |
|
|
|
— |
|
Retirement of redeemable convertible preferred stock |
|
— |
|
|
|
— |
|
Repayments of financing lease obligations |
|
(1,630 |
) |
|
|
(703 |
) |
Proceeds from the exercise of stock options and warrants |
|
2,325 |
|
|
|
681 |
|
Net cash provided by financing activities |
|
98,009 |
|
|
|
341,555 |
|
Effect of exchange rate changes on cash |
|
(9 |
) |
|
|
4 |
|
Net increase (decrease) in cash, cash equivalents and restricted cash |
|
(35,642 |
) |
|
|
69,220 |
|
Cash, cash equivalents and restricted cash, beginning of year |
|
78,963 |
|
|
|
9,743 |
|
Cash, cash equivalents and restricted cash, end of year |
$ |
43,321 |
|
|
$ |
78,963 |
|
Supplemental disclosure of cash flow information |
|
|
|
||||
Cash paid for taxes |
$ |
57 |
|
$ |
53 |
||
Cash paid for interest |
$ |
14,398 |
|
$ |
6,591 |
||
Supplemental disclosure of non-cash activities |
|
|
|
||||
Issuance of Notes Payable Warrants and Convertible Notes Payable Warrants |
$ |
— |
|
$ |
6,663 |
||
Conversion of Notes Payable Warrants upon Merger |
$ |
— |
|
$ |
4,576 |
||
Public Warrants and Private Placement Warrants acquired in Merger |
$ |
— |
|
$ |
50,850 |
||
Issuance of conversion option |
$ |
— |
|
$ |
8,783 |
||
Purchases of property and equipment included in accounts payable and accrued expenses and other current liabilities |
$ |
3,058 |
|
$ |
3,578 |
||
Purchases of inventory included in accounts payable and accrued expenses and other current liabilities |
$ |
1,553 |
|
$ |
1,854 |
||
Financing leases |
$ |
806 |
|
$ |
46,021 |
||
Benson Hill, Inc.
Non-GAAP Reconciliation
(Dollar Amounts 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, and the impact of significant non-recurring items.
Adjustments to reconcile net loss from our continuing operations to Adjusted EBITDA for the years ended December 31, 2022 and 2021 are as follows:
|
|
Three Months Ended December 31, |
|
Year Ended December 31, |
||||||||||||
(in thousands) |
|
2022
|
|
2021
|
|
2022
|
|
2021
|
||||||||
Adjustments to reconcile net loss from continuing operations to Adjusted EBITDA |
||||||||||||||||
Net loss from continuing operations |
|
$ |
(30,763 |
) |
|
$ |
(41,193 |
) |
|
$ |
(99,700 |
) |
|
$ |
(122,200 |
) |
Interest expense, net |
|
|
5,414 |
|
|
|
611 |
|
|
|
21,444 |
|
|
|
4,481 |
|
Income tax expense (benefit) |
|
|
29 |
|
|
|
13 |
|
|
|
59 |
|
|
|
231 |
|
Depreciation and amortization |
|
|
5,909 |
|
|
|
3,444 |
|
|
|
20,513 |
|
|
|
10,478 |
|
Stock-based compensation |
|
|
3,749 |
|
|
|
4,414 |
|
|
|
19,520 |
|
|
|
7,183 |
|
Change in fair value of warrants |
|
|
(7,389 |
) |
|
|
398 |
|
|
|
(49,063 |
) |
|
|
(12,127 |
) |
Other non-recurring costs, including acquisitions |
|
|
1,619 |
|
|
|
3,193 |
|
|
|
5,582 |
|
|
|
4,688 |
|
Employee retention credit |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1,550 |
) |
Merger transaction costs |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
11,693 |
|
Non-recurring public company readiness costs |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
5,265 |
|
Loss on extinguishment of debt |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
11,742 |
|
South America seed production costs |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,805 |
|
Adjusted EBITDA |
|
$ |
(21,432 |
) |
|
$ |
(29,120 |
) |
|
$ |
(81,645 |
) |
|
$ |
(77,311 |
) |
Adjustments to reconcile estimated 2023 net loss from continuing operations to estimated Adjusted EBITDA are as follows:
|
2023 Estimate |
|||||
Net loss from continuing operations |
$ |
(125,000 |
) |
- |
(135,000 |
) |
Interest expense, net |
|
27,000 |
|
- |
29,000 |
|
Depreciation and amortization |
|
21,000 |
|
- |
23,000 |
|
Stock-based compensation |
|
14,000 |
|
- |
15,000 |
|
Total Adjusted EBITDA |
$ |
(63,000 |
) |
- |
(68,000 |
) |
Benson Hill, Inc.
|
|
Adjustments to reconcile estimated free cash flow: |
|
|
2023 Estimate |
Net loss from continuing operations |
$ (125,000) – (135,000) |
Depreciation and amortization |
21,000 – 23,000 |
Stock-based compensation |
14,000 – 15,000 |
Changes in working capital |
(12,000) – (14,000) |
Other |
2,000 – 8,000 |
Net Cash Used on Operating Activities |
$ (100,000) – (103,000) |
Payments for acquisition of property and equipment |
(20,000) – (25,000) |
Free Cash Flow |
$ (120,000) – (128,000) |
