Beyond Meat, Inc. (NASDAQ: BYND) (“Beyond Meat” or “the Company”),
a leader in plant-based meat, today reported financial results for
its first quarter ended April 2, 2022.
First Quarter 2022 Financial
Highlights1
- Net revenues were $109.5 million, an increase of 1.2%
year-over-year.
- Gross profit was $0.2 million, or gross margin of 0.2% of net
revenues.
- Net loss was $100.5 million, or $1.58 per common share. Net
loss as a percentage of net revenues was -91.8%.
- Adjusted EBITDA was a loss of $78.9 million, or -72.1% of net
revenues.
Beyond Meat President and CEO Ethan Brown commented, "In the
first quarter, we made good progress against our goal of building
tomorrow’s global protein company. Whether furthering strategic
partnerships in the restaurant industry, the market success of our
first product collaboration with PepsiCo, or the continued acclaim
awarded to our products here in the U.S. and EU, we continue to lay
a robust foundation for our long-term growth.”
Brown added, “Though we recognize that the decisions we are
making today in support of our long-run ambition have contributed
to challenging near-term results, including a sizable though
temporary reduction in gross margin as we took cost-intensive
measures to support important strategic launches, we are confident
in the future we are building while advancing our mission to bring
plant-based meats and their attendant health, climate, natural
resource, and animal welfare benefits to consumers around the
world.”
____________1 This release includes references to non-GAAP
financial measures. Refer to “Non-GAAP Financial Measures” later in
this release for the definitions of the non-GAAP financial measures
presented and a reconciliation of these measures to their closest
comparable GAAP measures.
First Quarter 2022
Net revenues increased 1.2% to $109.5 million in the first
quarter of 2022, compared to $108.2 million in the year-ago period.
Total volume of products sold increased 12.4% compared to the first
quarter of 2021, largely offset by a decrease in net revenue per
pound of approximately 10%. The decrease in net revenue per pound
was primarily attributable to increased trade discounts, list price
reductions in the EU, changes in sales mix, and negative foreign
exchange rate impacts. U.S. retail channel net revenues increased
6.9% compared to the year-ago period primarily driven by the
introduction of Beyond Meat® Jerky, partially offset by decreases
of other products. The increase in U.S. retail channel net revenues
was partially offset by decreases in U.S. foodservice and
international retail and foodservice channel net revenues. The
decrease in U.S. foodservice channel net revenues was primarily
attributable to the discontinuation of distribution at a certain
customer, which was included in the year-ago period, and, to a
lesser extent, higher trade discounts. International retail channel
net revenues decreased mainly due to list price reductions in the
EU, increased trade discounts, unfavorable foreign exchange impact,
and changes in sales mix, partially offset by increased pounds
sold. International foodservice channel net revenues decreased
primarily due to changes in sales mix, increased trade discounts,
and negative foreign exchange rate impacts, partially offset by
increased pounds sold.
Net revenues by channel (unaudited):
The following table presents our net revenues by channel for the
periods presented:
|
|
Three Months Ended |
|
Change |
(in
thousands) |
|
April 2,2022 |
|
April 3,2021 |
|
Amount |
|
% |
U.S.: |
|
|
|
|
|
|
|
|
Retail |
|
$ |
68,260 |
|
$ |
63,826 |
|
$ |
4,434 |
|
|
6.9 |
% |
Foodservice |
|
|
15,493 |
|
|
16,742 |
|
|
(1,249 |
) |
|
(7.5)% |
U.S. net revenues |
|
|
83,753 |
|
|
80,568 |
|
|
3,185 |
|
|
4.0 |
% |
International: |
|
|
|
|
|
|
|
|
Retail |
|
|
16,137 |
|
|
17,199 |
|
|
(1,062 |
) |
|
(6.2)% |
Foodservice |
|
|
9,565 |
|
|
10,397 |
|
|
(832 |
) |
|
(8.0)% |
International net revenues |
|
|
25,702 |
|
|
27,596 |
|
|
(1,894 |
) |
|
(6.9)% |
Net revenues |
|
$ |
109,455 |
|
$ |
108,164 |
|
$ |
1,291 |
|
|
1.2 |
% |
Volume of products sold by channel
(unaudited):
The following table presents consolidated volume of our products
sold in pounds for the periods presented:
|
|
Three Months Ended |
|
Change |
(in
thousands) |
|
April 2,2022 |
|
April 3,2021 |
|
Amount |
|
% |
U.S.: |
|
|
|
|
|
|
|
|
Retail |
|
12,453 |
|
11,128 |
|
1,325 |
|
|
11.9 |
% |
Foodservice |
|
2,752 |
|
2,882 |
|
(130 |
) |
|
(4.5)% |
International: |
|
|
|
|
|
|
|
|
Retail |
|
3,530 |
|
2,959 |
|
571 |
|
|
19.3 |
% |
Foodservice |
|
2,581 |
|
2,003 |
|
578 |
|
|
28.9 |
% |
Volume of products sold |
|
21,316 |
|
18,972 |
|
2,344 |
|
|
12.4 |
% |
Gross profit was $0.2 million, or gross margin of 0.2% of net
revenues, in the first quarter of 2022, compared to $32.7 million,
or gross margin of 30.2% of net revenues, in the year-ago period.
The Company’s first quarter results included the launch of Beyond
Meat Jerky, which it estimates reduced gross margin by
approximately 940 basis points compared to the year-ago period.
Initially, Beyond Meat Jerky utilizes a complex and high-cost
manufacturing process. Manufacturing costs associated with Beyond
Meat Jerky are expected to significantly moderate beginning in the
second half of 2022 with process optimization. In addition to the
reduction in gross margin resulting from Beyond Meat Jerky, gross
margin in the first quarter of 2022 compared to the year-ago period
was also negatively impacted by reduced net revenue per pound due
to increased trade discounts, changes in price and sales mix,
increased manufacturing costs per pound including depreciation, and
higher logistics costs, partially offset by decreased direct
materials costs per pound and lower inventory reserves.
Loss from operations in the first quarter of 2022 was $97.6
million compared to $24.6 million in the year-ago period. In
addition to the decrease in gross profit, the expanded loss from
operations was primarily attributable to increased investments in
marketing activities, particularly to support initiatives with
foodservice customers, growth in non-production headcount levels
compared to the year-ago period, increased general and
administrative expenses driven by ongoing consulting agreements,
and higher selling expenses primarily due to increased outbound
freight costs.
Net loss was $100.5 million in the first quarter of 2022
compared to $27.3 million in the year-ago period. Net loss per
common share was $1.58 in the first quarter of 2022 compared to
$0.43 in the year-ago period. During the first quarter of 2021, net
loss included $1.0 million of expenses related to early debt
extinguishment costs. Excluding these costs, Adjusted net loss was
$26.2 million, or $0.42 per common share, in the first quarter of
2021. There were no similar costs in the first quarter of 2022.
Adjusted EBITDA was a loss of $78.9 million, or -72.1% of net
revenues in the first quarter of 2022 compared to an Adjusted
EBITDA loss of $10.8 million, or -10.0% of net revenues, in the
year-ago period.
Balance Sheet and Cash Flow Highlights
The Company’s cash and cash equivalents balance was $547.9
million and total outstanding debt was $1.1 billion as of April 2,
2022. Net cash used in operating activities was $165.2 million for
the three months ended April 2, 2022, compared to $30.7 million for
the year-ago period. In the three months ended April 2, 2022, net
cash used in operating activities included $37.0 million in prepaid
lease costs associated with the Company’s new innovation center and
headquarters facility currently under construction. Capital
expenditures totaled $21.5 million for the three months ended April
2, 2022, compared to $23.4 million for the year-ago period. Capital
expenditures primarily reflect the Company’s continued investments
in production equipment and facilities related to capacity
expansion and commercialization initiatives domestically and
abroad.
2022 Outlook
The Company's operating environment continues to be affected by
near-term uncertainty related to macroeconomic issues, including
inflation and rising interest rates, COVID-19 and its potential
impact on consumer behavior and demand levels, labor availability
and supply chain disruptions, partially attributable to recent
geopolitical tensions. Management's outlook considers the potential
impact from these factors assuming present day conditions, but the
Company acknowledges that its operating results could differ
materially from the expectations set forth below if its assumptions
related to the aforementioned factors do not materialize. Based on
management's best assessment of the environment today, the Company
is reaffirming its previous guidance for the full year 2022:
- Net revenues are expected to be in
the range of $560 million to $620 million, an increase of 21% to
33% compared to 2021.
Total distribution points by channel
(unaudited):
The following table presents the approximate number of
distribution outlets by channel for the periods presented:
|
Q1 2021 |
|
Q2 2021 |
|
Q3 2021 |
|
Q4 2021 |
|
Q1 2022 |
U.S.: |
|
|
|
|
|
|
|
|
|
Retail(1) |
32,000 |
|
34,000 |
|
34,000 |
|
34,000 |
|
35,000 |
Foodservice |
39,000 |
|
34,000 |
|
36,000 |
|
38,000 |
|
39,000 |
International: |
|
|
|
|
|
|
|
|
|
Retail |
24,000 |
|
29,000 |
|
32,000 |
|
30,000 |
|
31,000 |
Foodservice |
23,000 |
|
22,000 |
|
26,000 |
|
28,000 |
|
30,000 |
Total distribution points |
118,000 |
|
119,000 |
|
128,000 |
|
130,000 |
|
135,000 |
___________(1) Excludes distribution points associated with
Beyond Meat Jerky.
Conference Call and Webcast
The Company will host a conference call and webcast to discuss
these results with additional comments and details today at 5:00
p.m. Eastern, 2:00 p.m. Pacific. Investors interested in
participating in the live call can dial 412-317-6026. The
conference call webcast will be available live over the Internet
through the “Investors” section of the Company’s website at
www.beyondmeat.com and later archived.
About Beyond Meat
Beyond Meat, Inc. (NASDAQ: BYND) is a leading plant-based meat
company offering a portfolio of revolutionary plant-based meats
made from simple ingredients without GMOs, hormones, antibiotics or
cholesterol. Founded in 2009, Beyond Meat products are designed to
have the same taste and texture as animal-based meat while being
better for people and the planet. Beyond Meat’s brand commitment,
Eat What You Love®, represents a strong belief that there is a
better way to feed our future and that the positive choices we all
make, no matter how small, can have a great impact on our personal
health and the health of our planet. By shifting from animal-based
meat to plant-based protein, we can positively impact four growing
global issues: human health, climate change, constraints on natural
resources and animal welfare. As of March 2022, Beyond Meat had
products available at approximately 135,000 retail and foodservice
outlets in over 90 countries worldwide. Visit www.BeyondMeat.com
and follow @BeyondMeat, #BeyondBurger and #GoBeyond on Facebook,
Instagram, Twitter and TikTok.
Forward-Looking Statements
Certain statements in this release constitute “forward-looking
statements" within the meaning of the federal securities laws.
These statements are based on management's current opinions,
expectations, beliefs, plans, objectives, assumptions and
projections regarding financial performance, prospects, future
events and future results, including ongoing uncertainty related to
the COVID-19 pandemic, including the ultimate duration, magnitude
and effects of the pandemic and, in particular, the impact to the
foodservice channel, operations and supply chains, growth trends,
our international expansion plans, market share, new and existing
customers and expense trends, among other matters, and involve
known and unknown risks that are difficult to predict. In some
cases, you can identify forward-looking statements by the use of
words such as “may,” “could,” “expect,” “intend,” “plan,” “seek,”
“anticipate,” “believe,” “estimate,” “project,” “predict,”
“outlook,” “potential,” “continue,” “likely,” “will,” “would” and
variations of these terms and similar expressions, or the negative
of these terms or similar expressions. These forward-looking
statements are only predictions, not historical fact, and involve
certain risks and uncertainties, as well as assumptions.
Forward-looking statements should not be read as a guarantee of
future performance or results, and will not necessarily be accurate
indications of the times at, or by which or whether, such
performance or results will be achieved. Actual results, levels of
activity, performance, achievements and events could differ
materially from those stated, anticipated or implied by such
forward-looking statements. While Beyond Meat believes that its
assumptions are reasonable, it is very difficult to predict the
impact of known factors and, in particular, the COVID-19 pandemic,
and, of course, it is impossible to anticipate all factors that
could affect actual results. There are many risks and uncertainties
that could cause actual results to differ materially from
forward-looking statements made herein including, but not limited
to, the effects of global outbreaks of pandemics or contagious
diseases or fear of such outbreaks (such as COVID-19), including on
our business, financial condition, cash flows and results of
operations, including on our supply chain, the demand for our
products, our product and channel mix, labor needs at the Company
as well as in the supply chain and at customers, the timing and
level of retail purchasing, the timing and level of foodservice
purchasing, our manufacturing and co-manufacturing facilities and
operations, our inventory levels, our ability to expand and produce
in new geographic markets or the timing of such expansion efforts,
the pace and success of new product introductions, the timing of
new foodservice launches, and on overall economic conditions and
consumer confidence and spending levels; the impact of uncertainty
in our domestic and international supply chain, including labor
shortages and disruption and shipping delays and disruption; a
resurgence of COVID-19 and the impact of variants of the virus that
causes COVID-19 which could slow, halt or reverse the reopening
process, or result in the reinstatement of social distancing
measures, business closures, restrictions on operations,
quarantines and travel bans; the impact of uncertainty as a result
of doing business in China and Europe; government or employer
mandates requiring certain behaviors from employees due to
COVID-19, including COVID-19 vaccine mandates, which could result
in employee attrition at the Company, suppliers and customers as
well as difficulty securing future labor and supply needs; the
impact of adverse and uncertain economic and political conditions
in the U.S. and international markets; the volatility of capital
markets and other macroeconomic factors, including due to
geopolitical tensions or the outbreak of hostilities or war; our
ability to effectively manage our growth in the U.S. and abroad;
our ability to streamline operations and improve cost efficiencies,
which could result in the contraction of our business and the
implementation of significant cost cutting measures; our ability to
identify and execute cost-down initiatives intended to achieve
price parity with animal protein; the success of operations
conducted by joint ventures, such as the Planet Partnership, LLC
with PepsiCo, Inc., where we share ownership and management of a
company with one or more parties who may not have the same goals,
strategies or priorities as we do and where we do not receive all
of the financial benefit; the effects of increased competition from
our market competitors and new market entrants; changes in the
retail landscape, including the timing and level of trade and
promotion discounts, our ability to grow market share and increase
household penetration, repeat purchases, buying rates (amount spent
per buyer) and purchase frequency, and our ability to maintain and
increase sales velocity of our products; changes in the foodservice
landscape, including the timing and level of marketing and other
financial incentives to assist in the promotion of our products,
our ability to grow market share and attract and retain new
foodservice customers or retain existing foodservice customers, and
our ability to introduce and sustain offering of our products on
menus; the timing and success of distribution expansion and new
product introductions in increasing revenues and market share; the
timing and success of strategic partnership launches and limited
time offerings resulting in permanent menu items; our estimates of
the size of market opportunities and ability to accurately forecast
market growth; our ability to effectively expand our manufacturing
and production capacity, including effectively managing capacity
for specific products; our ability to accurately forecast our
future results of operations, including fluctuations in demand for
our products and any increased competition; our ability to
accurately forecast demand for our products and manage our
inventory, including the impact of customer orders ahead of
holidays and shelf reset activities, and supply chain and labor
disruptions; our operational effectiveness and ability to fulfill
orders in full and on time; variations in product selling prices
and costs, and the mix of products sold; our ability to
successfully enter new geographic markets, manage our international
expansion and comply with any applicable laws and regulations,
including risks associated with doing business in foreign
countries, substantial investments in our manufacturing operations
in China and the Netherlands, and our ability to comply with the
U.S. Foreign Corrupt Practices Act or other anti-corruption laws;
the effects of global outbreaks of pandemics or contagious diseases
or fear of such outbreaks, such as COVID-19; the success of our
marketing initiatives and the ability to grow brand awareness,
maintain, protect and enhance our brand, attract and retain new
customers and grow our market share; our ability to attract,
maintain and effectively expand our relationships with key
strategic foodservice partners; our ability to attract and retain
our suppliers, distributors, co-manufacturers and customers; our
ability to procure sufficient high-quality raw materials at
competitive prices to manufacture our products, especially those
impacted by the conflict in the Ukraine or problems in the global
supply chain exacerbated by COVID-19 lockdowns in China; the
availability of pea and other protein that meets our standards; our
ability to diversify the protein sources used for our products; our
ability to differentiate and continuously create innovative
products, respond to competitive innovation and achieve
speed-to-market; our ability to successfully execute our strategic
initiatives; the volatility associated with ingredient, packaging,
transportation and other input costs; the impact of inflation
across the economy, including higher food, grocery, raw materials,
transportation, energy, labor and fuel costs; reduced consumer
confidence and consumer spending, including spending to purchase
our products, and negative trends in consumer purchasing patterns
due to consumers’ disposable income, credit availability, debt
levels and inflation; real or perceived quality or health issues
with our products or other issues that adversely affect our brand
and reputation; our ability to accurately predict consumer taste
preferences, trends and demand and successfully innovate, introduce
and commercialize new products and improve existing products,
including in new geographic markets; significant disruption in, or
breach in security of our information technology systems and
resultant interruptions in service and any related impact on our
reputation, including related to data privacy; the ability of our
transportation providers to ship and deliver our products in a
timely and cost effective manner; management and key personnel
changes, the attraction and retention of qualified employees and
key personnel, and our ability to maintain our company culture;
risks related to use of a professional employer organization to
administer human resources, payroll and employee benefits functions
for certain of our international employees or use of certain third
party service providers for the performance of several business
operations including payroll and human capital management services;
the effects of natural or man-made catastrophic or severe weather
events particularly involving our or any of our co-manufacturers’
manufacturing facilities or our suppliers’ facilities; the impact
of marketing campaigns aimed at generating negative publicity
regarding our products, brand and the plant-based industry
category; the effectiveness of our internal controls; accounting
estimates based on judgment and assumptions that may differ from
actual results; the requirements of being a public company and
effects of increased administration costs related to compliance and
reporting obligations; our significant indebtedness and ability to
pay such indebtedness; risks related to our debt, including
limitations on our cash flow from operations and our ability to
satisfy our obligations under the convertible senior notes; our
ability to raise the funds necessary to repurchase the convertible
senior notes for cash, under certain circumstances, or to pay any
cash amounts due upon conversion; provisions in the indenture
governing the convertible senior notes delaying or preventing an
otherwise beneficial takeover of us; any adverse impact on our
reported financial condition and results from the accounting
methods for the convertible senior notes; estimates of our
expenses, future revenues, capital expenditures, capital
requirements and our needs for additional financing; our ability to
meet our obligations under our campus innovation and headquarters
lease, the timing of occupancy and completion of the build-out of
our space, cost overruns, delays and the impact of COVID-19 on our
space demands; our ability to meet our obligations under leases for
our corporate offices, manufacturing facilities and warehouses;
changes in laws and government regulation affecting our business,
including the U.S. Food and Drug Administration and the U.S.
Federal Trade Commission governmental regulation, and state, local
and foreign regulation; new or pending legislation, or changes in
laws, regulations or policies of governmental agencies or
regulators, both in the U.S. and abroad, affecting plant-based
meat, the labeling or naming of our products, or our brand name or
logo; the failure of acquisitions and other investments to be
efficiently integrated and produce the results we anticipate; risks
inherent in investment in real estate; the financial condition of,
and our relationships with our suppliers, co-manufacturers,
distributors, retailers and foodservice customers, and their future
decisions regarding their relationships with us; our ability and
the ability of our suppliers and co-manufacturers to comply with
food safety, environmental or other laws and regulations;
seasonality, including increased levels of purchasing by customers
ahead of holidays, customer shelf reset activity and the timing of
product restocking by our retail customers; the sufficiency of our
cash and cash equivalents to meet our liquidity needs and service
our indebtedness and our ability to access capital markets upon
favorable terms, including due to rising interest rates; economic
conditions and the impact on consumer spending; the impact of
increased scrutiny from stakeholders, institutional investors and
governmental bodies on environmental, social and governance (“ESG”)
practices, including expanding mandatory and voluntary reporting,
diligence and disclosure on ESG matters; the outcomes of legal or
administrative proceedings, or new legal or administrative
proceedings filed against us; our, our suppliers’ and our
co-manufacturers’ ability to protect our proprietary technology,
intellectual property and trade secrets adequately; the impact of
tariffs and trade wars; the impact of changes in tax laws; foreign
exchange rate fluctuations; and the risks discussed under the
heading “Risk Factors” in the Company’s Annual Report on Form 10-K
for the year ended December 31, 2021 filed with the SEC, as well as
other factors described from time to time in the Company's filings
with the SEC. All forward-looking statements attributable to us or
persons acting on our behalf are expressly qualified in their
entirety by the cautionary statements set forth above. Such
forward-looking statements are made only as of the date of this
release. Beyond Meat undertakes no obligation to publicly update or
revise any forward-looking statement because of new information,
future events, changes in assumptions or otherwise, except to the
extent required by applicable laws. If we do update one or more
forward-looking statements, no inference should be made that we
will make additional updates with respect to those or other
forward-looking statements.
Non-GAAP Financial Measures
The Company refers to certain financial measures that are not
recognized under U.S. generally accepted accounting principles
(GAAP) in this press release, including: Adjusted net loss,
Adjusted net loss per diluted common share, Adjusted EBITDA and
Adjusted EBITDA as a % of net revenues. See “Non-GAAP Financial
Measures” below for additional information and reconciliations of
such non-GAAP financial measures.
Availability of Information on Beyond Meat’s Website and
Social Media Channels
Investors and others should note that Beyond Meat routinely
announces material information to investors and the marketplace
using SEC filings, press releases, public conference calls,
webcasts and the Beyond Meat Investor Relations website. We also
intend to use certain social media channels as a means of
disclosing information about us and our products to consumers, our
customers, investors and the public (e.g., @BeyondMeat,
#BeyondBurger and #GoBeyond on Facebook, Instagram and Twitter, and
@BeyondMeatOfficial on TikTok). The information posted on social
media channels is not incorporated by reference in this press
release or in any other report or document we file with the SEC.
While not all of the information that the Company posts to the
Beyond Meat Investor Relations website or to social media accounts
is of a material nature, some information could be deemed to be
material. Accordingly, the Company encourages investors, the media,
and others interested in Beyond Meat to review the information that
it shares at the “Investors” link located at the bottom of the
Company’s webpage at
https://investors.beyondmeat.com/investor-relations and to sign up
for and regularly follow the Company’s social media accounts. Users
may automatically receive email alerts and other information about
the Company when enrolling an email address by visiting "Request
Email Alerts" in the "Investors" section of Beyond Meat’s website
at https://investors.beyondmeat.com/investor-relations.
ContactsMedia:Shira
Zackaishira.zackai@beyondmeat.com
Investors:Fitzhugh Taylor and Raphael
Grossbeyondmeat@icrinc.com
BEYOND MEAT, INC. AND
SUBSIDIARIESCondensed Consolidated Statements of
Operations(In thousands, except share and per
share data)(unaudited)
|
|
Three Months Ended |
|
|
April 2,2022 |
|
April 3,2021 |
Net revenues |
|
$ |
109,455 |
|
|
$ |
108,164 |
|
Cost of goods sold |
|
|
109,265 |
|
|
|
75,456 |
|
Gross profit |
|
|
190 |
|
|
|
32,708 |
|
Research and development
expenses |
|
|
19,678 |
|
|
|
15,925 |
|
Selling, general and
administrative expenses |
|
|
75,114 |
|
|
|
38,954 |
|
Restructuring expenses |
|
|
3,026 |
|
|
|
2,474 |
|
Total operating expenses |
|
|
97,818 |
|
|
|
57,353 |
|
Loss from operations |
|
|
(97,628 |
) |
|
|
(24,645 |
) |
Other expense, net: |
|
|
|
|
Interest expense |
|
|
(1,025 |
) |
|
|
(629 |
) |
Other, net |
|
|
(1,124 |
) |
|
|
(1,570 |
) |
Total other expense, net |
|
|
(2,149 |
) |
|
|
(2,199 |
) |
Loss before taxes |
|
|
(99,777 |
) |
|
|
(26,844 |
) |
Income tax expense |
|
|
10 |
|
|
|
48 |
|
Equity in losses of
unconsolidated joint venture |
|
|
671 |
|
|
|
374 |
|
Net loss |
|
$ |
(100,458 |
) |
|
$ |
(27,266 |
) |
Net loss per share available
to common stockholders—basic and diluted |
|
$ |
(1.58 |
) |
|
$ |
(0.43 |
) |
Weighted average common shares
outstanding—basic and diluted |
|
|
63,465,205 |
|
|
|
62,941,748 |
|
|
BEYOND MEAT, INC. AND SUBSIDIARIES |
Condensed Consolidated Balance Sheets |
(In thousands, except share and per share
data) |
(unaudited) |
|
April 2,2022 |
|
December 31,2021 |
Assets |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
547,858 |
|
|
$ |
733,294 |
|
Accounts receivable, net |
|
52,675 |
|
|
|
43,806 |
|
Inventory |
|
283,754 |
|
|
|
241,870 |
|
Prepaid expenses and other current assets |
|
33,010 |
|
|
|
33,078 |
|
Total current assets |
$ |
917,297 |
|
|
$ |
1,052,048 |
|
Property, plant, and
equipment, net |
|
241,389 |
|
|
|
226,489 |
|
Operating lease right-of-use
assets |
|
25,692 |
|
|
|
26,815 |
|
Prepaid lease costs,
non-current |
|
96,166 |
|
|
|
59,188 |
|
Other non-current assets,
net |
|
6,613 |
|
|
|
6,836 |
|
Investment in unconsolidated
joint venture |
$ |
7,353 |
|
|
$ |
8,023 |
|
Total assets |
$ |
1,294,510 |
|
|
$ |
1,379,399 |
|
Liabilities and Stockholders’
Equity: |
|
|
|
Current liabilities: |
|
|
|
Accounts payable |
$ |
67,387 |
|
|
$ |
69,040 |
|
Wages payable |
|
3,406 |
|
|
|
155 |
|
Accrued bonus |
|
2,754 |
|
|
|
128 |
|
Current portion of operating lease liabilities |
|
4,454 |
|
|
|
4,458 |
|
Accrued expenses and other current liabilities |
|
22,807 |
|
|
|
20,226 |
|
Short-term finance lease liabilities |
|
183 |
|
|
|
182 |
|
Total current liabilities |
$ |
100,991 |
|
|
$ |
94,189 |
|
Long-term liabilities: |
|
|
|
Convertible senior notes, net |
$ |
1,130,657 |
|
|
$ |
1,129,674 |
|
Operating lease liabilities, net of current portion |
|
21,485 |
|
|
|
22,599 |
|
Finance lease obligations and other long-term liabilities |
|
396 |
|
|
|
442 |
|
Total long-term liabilities |
$ |
1,152,538 |
|
|
$ |
1,152,715 |
|
Commitments and
Contingencies |
|
|
|
Stockholders’ equity: |
|
|
|
Preferred stock, par value
$0.0001 per share—500,000 shares authorized, none issued and
outstanding |
$ |
— |
|
|
$ |
— |
|
Common stock, par value
$0.0001 per share—500,000,000 shares authorized; 63,525,399 and
63,400,899 shares issued and outstanding at April 2, 2022 and
December 31, 2021, respectively |
|
6 |
|
|
|
6 |
|
Additional paid-in
capital |
|
519,681 |
|
|
|
510,014 |
|
Accumulated deficit |
|
(477,430 |
) |
|
|
(376,972 |
) |
Accumulated other
comprehensive loss |
|
(1,276 |
) |
|
|
(553 |
) |
Total stockholders’ equity |
$ |
40,981 |
|
|
$ |
132,495 |
|
Total liabilities and stockholders’ equity |
$ |
1,294,510 |
|
|
$ |
1,379,399 |
|
|
|
|
|
BEYOND MEAT, INC. AND SUBSIDIARIES |
Condensed Consolidated Statements of Cash
Flows |
(In thousands) |
(unaudited) |
|
|
Three Months Ended |
|
|
April 2,2022 |
|
April 3,2021 |
Cash flows from operating activities: |
|
|
|
|
Net loss |
|
$ |
(100,458 |
) |
|
$ |
(27,266 |
) |
Adjustments to reconcile net loss to net cash used in operating
activities: |
|
|
|
|
Depreciation and amortization |
|
|
7,091 |
|
|
|
4,326 |
|
Non-cash lease expense |
|
|
1,118 |
|
|
|
724 |
|
Share-based compensation expense |
|
|
9,292 |
|
|
|
7,376 |
|
Loss on sale of fixed assets |
|
|
315 |
|
|
|
3 |
|
Amortization of debt issuance costs |
|
|
984 |
|
|
|
369 |
|
Loss on extinguishment of debt |
|
|
— |
|
|
|
1,037 |
|
Equity in losses of unconsolidated joint venture |
|
|
671 |
|
|
|
374 |
|
Net change in operating assets and
liabilities: |
|
|
|
|
Accounts receivable |
|
|
(9,108 |
) |
|
|
(963 |
) |
Inventories |
|
|
(43,043 |
) |
|
|
(24,729 |
) |
Prepaid expenses and other assets |
|
|
(213 |
) |
|
|
(2,877 |
) |
Accounts payable |
|
|
(2,295 |
) |
|
|
1,098 |
|
Accrued expenses and other current liabilities |
|
|
8,527 |
|
|
|
10,689 |
|
Prepaid lease costs, non-current |
|
|
(36,978 |
) |
|
|
— |
|
Operating lease liabilities |
|
|
(1,113 |
) |
|
|
(818 |
) |
Net cash used in operating activities |
|
$ |
(165,210 |
) |
|
$ |
(30,657 |
) |
Cash flows from investing activities: |
|
|
|
|
Purchases of property, plant and equipment |
|
$ |
(21,548 |
) |
|
$ |
(23,363 |
) |
Return (payment) of security deposits |
|
|
49 |
|
|
|
(18 |
) |
Net cash used in investing activities |
|
$ |
(21,499 |
) |
|
$ |
(23,381 |
) |
Cash flows from financing activities: |
|
|
|
|
Proceeds from issuance of convertible senior notes |
|
$ |
— |
|
|
$ |
1,150,000 |
|
Purchase of capped calls related to convertible senior notes |
|
|
— |
|
|
|
(83,950 |
) |
Debt issuance costs |
|
|
— |
|
|
|
(23,150 |
) |
Repayment of revolving credit facility |
|
|
— |
|
|
|
(25,000 |
) |
Principal payments under finance lease obligations |
|
|
(45 |
) |
|
|
(36 |
) |
Proceeds from exercise of stock options |
|
|
815 |
|
|
|
2,861 |
|
Payments of minimum withholding taxes on net share settlement of
equity awards |
|
|
(439 |
) |
|
|
(812 |
) |
Net cash provided by financing activities |
|
$ |
331 |
|
|
$ |
1,019,913 |
|
(continued on the next page) |
Net (decrease) increase in
cash and cash equivalents |
|
$ |
(186,378 |
) |
|
$ |
965,875 |
|
Effect of exchange rate
changes on cash |
|
|
942 |
|
|
|
15 |
|
Cash and cash equivalents at
the beginning of the period |
|
|
733,294 |
|
|
|
159,127 |
|
Cash and cash equivalents at
the end of the period |
|
$ |
547,858 |
|
|
$ |
1,125,017 |
|
|
Supplemental disclosures of cash flow
information: |
|
|
|
|
Cash paid during the period for: |
|
|
|
|
Interest |
|
$ |
17 |
|
|
$ |
297 |
|
Taxes |
|
$ |
52 |
|
|
$ |
48 |
|
Non-cash investing and financing activities: |
|
|
|
|
Issuance costs of convertible senior notes, accrued not yet
paid |
|
$ |
— |
|
|
$ |
455 |
|
Non-cash additions to property, plant and equipment |
|
$ |
6,874 |
|
|
$ |
8,148 |
|
Non-cash additions to financing leases |
|
$ |
— |
|
|
$ |
580 |
|
Operating lease right-of-use assets obtained in exchange for lease
liabilities |
|
$ |
— |
|
|
$ |
105 |
|
(concluded) |
|
Non-GAAP Financial Measures
Beyond Meat uses the non-GAAP financial measures
set forth below in assessing its operating performance and in its
financial communications. Management believes these non-GAAP
financial measures provide useful additional information to
investors about current trends in the Company's operations and are
useful for period-over-period comparisons of operations. In
addition, management uses these non-GAAP financial measures to
assess operating performance and for business planning purposes.
Management also believes these measures are widely used by
investors, securities analysts, rating agencies and other parties
in evaluating companies in our industry as a measure of our
operational performance. These non-GAAP financial measures should
not be considered in isolation or as a substitute for the
comparable GAAP measures. In addition, these non-GAAP financial
measures may not be computed in the same manner as similarly titled
measures used by other companies.
Adjusted net loss and Adjusted net loss per diluted
common share
Adjusted net loss is defined as net loss adjusted to exclude,
when applicable, costs attributable to COVID-19, as well as other
special items, which are those items deemed not to be reflective of
the Company’s ongoing normal business activities.
Adjusted net loss per diluted common share is defined as
Adjusted net loss divided by the number of diluted common shares
outstanding.
We consider Adjusted net loss and Adjusted net loss per diluted
common share to be useful indicators of operating performance
because excluding special items allows for period-over-period
comparisons of our ongoing operations. Adjusted net loss per
diluted common share is a performance measure and should not be
used as a measure of liquidity.
Adjusted EBITDA and Adjusted EBITDA as a % of net
revenues
Adjusted EBITDA is defined as net loss adjusted to exclude, when
applicable, income tax (benefit) expense, interest expense,
depreciation and amortization expense, restructuring expenses,
share-based compensation expense, expenses attributable to
COVID-19, and Other, net, including interest income, loss on
extinguishment of debt and foreign currency transaction gains and
losses. Adjusted EBITDA as a % of net revenues is defined as
Adjusted EBITDA divided by net revenues.
Limitations related to the use of non-GAAP financial
measures
There are a number of limitations related to the use of Adjusted
net loss, Adjusted net loss per diluted common share, Adjusted
EBITDA and Adjusted EBITDA as a % of net revenues rather than their
most directly comparable GAAP measures. Some of these limitations
are:
- Adjusted net loss and Adjusted net loss per diluted common
share exclude costs associated with activities deemed to be
non-recurring or not part of the Company’s normal business
activities, which are subjective determinations made by management
and may not actualize as expected;
- Adjusted EBITDA excludes depreciation and amortization expense
and, although these are non-cash expenses, the assets being
depreciated may have to be replaced in the future increasing our
cash requirements;
- Adjusted EBITDA does not reflect interest expense, or the cash
required to service our debt, which reduces cash available to
us;
- Adjusted EBITDA does not reflect income tax payments that
reduce cash available to us;
- Adjusted EBITDA does not reflect restructuring expenses that
reduce cash available to us;
- Adjusted EBITDA does not reflect expenses attributable to
COVID-19 that reduce cash available to us;
- Adjusted EBITDA does not reflect share-based compensation
expense and therefore does not include all of our compensation
costs;
- Adjusted EBITDA does not reflect Other, net, including interest
income, loss on extinguishment of debt and foreign currency
transaction gains and losses, that may increase or decrease cash
available to us; and
- other companies, including companies in our industry, may
calculate Adjusted EBITDA differently, which reduces its usefulness
as a comparative measure.
The following tables present the reconciliation of Adjusted net
loss and Adjusted net loss per diluted common share to their most
comparable GAAP measures, net loss and net loss per share available
to common stockholders—basic and diluted, respectively, as reported
(unaudited):
|
Three Months Ended |
(in
thousands) |
April 2, 2022 |
|
April 3, 2021 |
Net loss, as reported |
$ |
(100,458 |
) |
|
$ |
(27,266 |
) |
Loss on extinguishment of
debt |
|
— |
|
|
|
1,037 |
|
Adjusted net loss |
$ |
(100,458 |
) |
|
$ |
(26,229 |
) |
|
|
|
|
|
|
|
|
|
Three Months Ended |
(in thousands, except
share and per share amounts) |
April 2, 2022 |
|
April 3, 2021 |
Numerator: |
|
|
|
Net loss, as reported |
$ |
(100,458 |
) |
|
$ |
(27,266 |
) |
Aggregate non-GAAP adjustments
as listed above |
|
— |
|
|
|
1,037 |
|
Adjusted net loss used in
computing Adjusted net loss per diluted common share |
$ |
(100,458 |
) |
|
$ |
(26,229 |
) |
Denominator: |
|
|
|
Weighted average shares used
in computing Adjusted net loss per diluted common share |
|
63,465,205 |
|
|
|
62,941,748 |
|
Adjusted net loss per diluted
common share |
$ |
(1.58 |
) |
|
$ |
(0.42 |
) |
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
April 2, 2022 |
|
April 3, 2021 |
Net loss per share available to common stockholders—basic and
diluted, as reported |
$ |
(1.58 |
) |
|
$ |
(0.43 |
) |
Loss on extinguishment of
debt |
|
— |
|
|
|
0.01 |
|
Adjusted net loss per diluted
common share |
$ |
(1.58 |
) |
|
$ |
(0.42 |
) |
|
|
|
|
|
|
|
|
The following table presents the reconciliation of Adjusted
EBITDA to its most comparable GAAP measure, net loss, as reported
(unaudited):
|
|
Three Months Ended |
(in
thousands) |
|
April 2,2022 |
|
April 3,2021 |
Net loss, as reported |
|
$ |
(100,458 |
) |
|
$ |
(27,266 |
) |
Income tax expense |
|
|
10 |
|
|
|
48 |
|
Interest expense |
|
|
1,025 |
|
|
|
629 |
|
Depreciation and amortization
expense |
|
|
7,091 |
|
|
|
4,326 |
|
Restructuring expenses(1) |
|
|
3,026 |
|
|
|
2,474 |
|
Share-based compensation
expense |
|
|
9,292 |
|
|
|
7,376 |
|
Other, net(2) |
|
|
1,124 |
|
|
|
1,570 |
|
Adjusted EBITDA |
|
$ |
(78,890 |
) |
|
$ |
(10,843 |
) |
Net loss as a % of net
revenues |
|
(91.8)% |
|
(25.2)% |
Adjusted EBITDA as a % of net
revenues |
|
(72.1)% |
|
(10.0)% |
____________
(1 |
) |
Primarily comprised of legal and other expenses associated with the
dispute with a co-manufacturer with whom an exclusive supply
agreement was terminated in May 2017. |
(2 |
) |
Includes $1.0 million in loss on
extinguishment of debt in the three months ended April 3,
2021. |
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