- Second quarter revenues of approximately $33.8 million, an
increase compared to $23.5 million in the same period of 2023,
reflect the Company’s ongoing transition to an asset-light business
model.
- Net loss from continuing operations, net of income taxes, was
$18 million in the quarter, an improvement of $18.5 million in
reported loss from the same period of the prior year. Adjusted
EBITDA was a loss of $12.4 million, compared to a loss of $15.2
million in the same period of 2023, due primarily to expense
reductions.
- Free cash flow loss in the first half of 2024 was $31.8
million, which was approximately 50 percent of the free cash flow
loss in the first half of 2023.
- The Company ended the second quarter with $29.5 million of cash
and marketable securities, expected to be sufficient to fund
operations through the end of 2024.
- The Company provides updates on business milestones related to
animal feeding trials, innovation pipeline advancements, and
genetic market share in its Q2 Shareholder Letter.
Benson Hill, Inc. (NYSE: BHIL, the “Company” or “Benson Hill”),
a seed innovation company, today announced operating and financial
results for the quarter ended June 30, 2024.
This press release features multimedia. View
the full release here:
https://www.businesswire.com/news/home/20240808408679/en/
Benson Hill Announces Second Quarter
Financial Results (Photo: Business Wire)
“The Benson Hill team showed focus and financial discipline and
delivered significantly better operating results this quarter,
while making strides in our transition to an asset-light licensing
model. We also strengthened strategic partnerships that are crucial
for our future growth,” said Deanie Elsner, Chief Executive Officer
of Benson Hill. “Our highly advanced technology core has led to the
development of what we believe to be the industry’s broadest and
deepest R&D pipeline for soy quality traits. Our next priority
is to implement several animal feeding trials with both commercial
and academic partners, further validating the value our seed
innovations deliver to end users.”
Progress Points
Progress across key initiatives in the second quarter included
accelerations in the Company’s innovation pipeline, expanded
feeding trials with the proprietary soybean portfolio, advancements
with strategic partners, and exploration of new capital
structures.
- The Company continued its rigorous focus on cash management,
expecting to deliver cash runway through the end of 2024.
- Following a Q1 feeding trial, management reported that it will
continue to validate the value of its seed innovations with end
users. Nearly a dozen academic studies and commercial feeding
trials are planned over the next 9 to 12 months in broiler
chickens, turkey, swine, dairy, and salmon. These end-user market
segments represent more than 80 percent of the 30 million U.S.
soybean acres used in animal feed.1
- Management reiterated the competitive edge delivered by the
innovation pipeline it announced last month. Seed advancements over
the next decade are expected to feature herbicide-tolerant soybean
varieties, varieties designed to meet end-user needs in animal
feed, versions for soybean oil, and soybeans for future use in
biofuel. The Company is on track to significantly expand its seed
portfolio to more than 35 varieties by 2025 and introduce
herbicide-tolerant versions of its Ultra-High Protein, Low
Oligosaccharide soybean in 2026, a year earlier than expected.
________________________
1 United Soybean Board Market View
Database, 2022
Second Quarter Results Compared to the Same Period of
2023
The following financial results exclude the 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.
- Reported revenues increased by $10.3 million in the second
quarter of 2024, driven by higher grain sales of proprietary
soybeans and higher revenue from partnerships and licensing
agreements.
- R&D expenses were $7.5 million, a decrease of $2.9 million,
or 27.7 percent. The decrease was driven by reduced
personnel-related costs and other technology costs in connection
with implementing the expanded Liquidity Improvement Plan. Benson
Hill continues to invest in critical technology costs, facilities
expenses (primarily related to the Crop Accelerator facility) and
workforce-related expenses as it did in 2023, to drive innovation
in feed, food, and fuel with its CropOS® technology platform.
- Selling, general, and administrative expenses were $10.2
million, an increase of $3.6 million, or 56 percent. The increase
was due to a non-recurring $6.2 million reversal to stock-based
compensation expense in 2023. Excluding this non-recurring expense
decrease in 2023, there was a decrease of $2.6 million to other
selling, general and administrative expenses driven by reduced
personnel-related costs in connection with implementing the
expanded Liquidity Improvement Plan.
- Net loss from continuing operations, net of income taxes, was
$18 million, a decrease of $18.5 million in reported loss. Adjusted
EBITDA was a loss of $12.4 million, compared to a loss of $15.2
million in the same period of the prior year, which represents a
reduction in loss of $2.8 million.
- Cash and marketable securities of $29.5 million were on hand as
of June 30, 2024.
First Six-Months Results Compared to the Same Period of
2023
The following financial results exclude the 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.
- Reported revenues in the first half of 2024 were $54.9 million,
a decrease of $17.2 million, or 23.9 percent. The decrease was
driven by recognition of revenue in 2023 from low margin trading
volumes generated by business development efforts that did not
repeat in 2024, partially offset by higher revenue from
partnerships and licensing agreements during the six months ended
June 30, 2024, compared to the same period in 2023. Revenue from
domestic sales increased $5.8 million compared to the same period
in 2023 due to higher grain sales of proprietary soybeans.
- R&D expenses were $14.4 million, a decrease of $8.6
million, or 37.3 percent. The decrease was driven by reduced
personnel-related costs and other technology costs in connection
with implementing the expanded Liquidity Improvement Plan.
- Selling, general, and administrative expenses were $25 million,
an increase of $5.2 million, or 26.6 percent. Excluding a
non-recurring $6.2 million reversal to stock-based compensation
expense in 2023, these expenses decreased by $1 million, driven by
reduced personnel-related costs in connection with implementing the
Company’s expanded Liquidity Improvement Plan.
- Net loss from continuing operations, net of income taxes, was
$44.3 million, an increase in reported loss of $1 million. Adjusted
EBITDA was a loss of $19.5 million, compared to a loss of $29.7
million in the same period of the prior year which represents a
reduction in loss of $10.2 million. Free cash flow loss in the
first half of 2024 was $31.8 million, which was approximately 50
percent of the free cash flow loss in the first half of 2023.
Additional Information
Additional information about Benson Hill’s financial and
operating results can be found in the Company’s latest Shareholder
Letter and in the Current Report on Form 8-K filed today with the
Securities and Exchange Commission. Those documents are
downloadable at investors.bensonhill.com.
About Benson Hill
Benson Hill is a seed innovation company that unlocks nature’s
genetic diversity in soy quality traits through a combination of
its proprietary genetics, its AI-driven CropOS® technology
platform, and its Crop Accelerator. Benson Hill collaborates with
strategic partners to create value throughout the agribusiness
supply chain to meet the demand for better feed, food, and fuel.
For more information, visit 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; the Company’s financial and operating
performance during its business transition; 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;
the Company’s current expectations and assumptions regarding the
industries and markets in which it operates; strategic partnership
and licensing opportunities; 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; the potential and
capabilities of its innovation pipeline and the expected timeline
for the commercialization of the Company’s current and anticipated
innovations; the expected timeline for the expansion of the
Company’s seed portfolio; the expected timing and results of
planned academic studies and commercial feeding trails; 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 expectations regarding the Company’s ability to
continue as a going concern; 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;
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 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; 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)
June 30, 2024
December 31,
2023
Assets
Current assets:
Cash and cash equivalents
$
9,272
$
8,934
Marketable securities
20,247
32,852
Accounts receivable, net
9,640
6,810
Inventories, net
16,826
14,860
Prepaid expenses and other current
assets
15,270
8,121
Current assets of discontinued
operations
5,909
103,177
Total current assets
77,164
174,754
Property and equipment, net
22,643
26,533
Finance lease right-of-use assets, net
55,465
59,245
Operating lease right-of-use assets
2,800
2,934
Intangible assets, net
4,947
5,226
Other assets
8,289
6,072
Total assets
$
171,308
$
274,764
Liabilities and stockholders’
equity
Current liabilities:
Accounts payable
$
11,151
$
4,397
Finance lease liabilities, current
portion
4,263
3,705
Operating lease liabilities, current
portion
872
842
Long-term debt, current portion
1,900
55,201
Accrued expenses and other current
liabilities
13,114
21,352
Current liabilities of discontinued
operations
1,121
18,802
Total current liabilities
32,421
104,299
Long-term debt, less current portion
14,236
5,250
Finance lease liabilities, less current
portion
71,013
73,682
Operating lease liabilities, less current
portion
3,949
4,299
Warrant liabilities
906
1,186
Conversion option liabilities
—
5
Other non-current liabilities
30
—
Total liabilities
122,555
188,721
Stockholders’ equity:
Common stock, $0.0001 par value, 440,000
and 440,000 shares authorized, 6,085 and 5,954 shares issued and
outstanding at June 30, 2024, and December 31, 2023,
respectively(1)
1
1
Additional paid-in capital
614,018
611,497
Accumulated deficit
(564,769
)
(523,786
)
Accumulated other comprehensive loss
(497
)
(1,669
)
Total stockholders’ equity
48,753
86,043
Total liabilities and stockholders’
equity
$
171,308
$
274,764
(1) Amounts have been adjusted to reflect
the 1-for-35 reverse stock split that became effective on July 18,
2024.
Benson Hill, Inc.
Condensed Consolidated
Statements of Operations (Unaudited)
(In Thousands, Except Per
Share Data)
Three Months Ended June
30,
Six Months Ended June
30,
2024
2023
2024
2023
Revenues
$
33,773
$
23,484
$
54,906
$
72,151
Cost of sales
34,597
22,214
50,492
66,238
Research and development
7,456
10,312
14,397
22,954
Selling, general and administrative
expenses
10,155
6,510
24,983
19,737
Impairment of goodwill
—
9,260
—
9,260
Interest expense, net
1,708
6,874
10,304
13,246
Changes in fair value of warrants and
conversion option
(513
)
3,036
(286
)
(18,660
)
Other (income) expense, net
(1,653
)
1,921
(693
)
2,789
Net loss from continuing operations before
income taxes
(17,977
)
(36,643
)
(44,291
)
(43,413
)
Income tax expense (benefit)
6
(138
)
6
(123
)
Net loss from continuing operations, net
of income taxes
(17,983
)
(36,505
)
(44,297
)
(43,290
)
Net (loss) income from discontinued
operations, net of tax
(1,717
)
(20,336
)
3,314
(16,605
)
Net loss attributable to common
stockholders
$
(19,700
)
$
(56,841
)
$
(40,983
)
$
(59,895
)
Net loss per common share:
Basic and diluted net loss per common
share from continuing operations(1)
$
(3.27
)
$
(6.81
)
$
(8.09
)
$
(8.08
)
Basic and diluted net (loss) income per
common share from discontinued operations(1)
$
(0.31
)
$
(3.79
)
$
0.61
$
(3.10
)
Basic and diluted total net loss per
common share(1)
$
(3.58
)
$
(10.60
)
$
(7.48
)
$
(11.18
)
Weighted average shares outstanding:
Basic and diluted weighted average shares
outstanding(1)
5,496
5,364
5,477
5,355
(1) Amounts have been adjusted to reflect
the 1-for-35 reverse stock split that became effective on July 18,
2024.
Benson Hill, Inc.
Condensed Consolidated
Statements of Comprehensive Loss (Unaudited)
(In Thousands)
Three Months Ended June
30,
Six Months Ended June
30,
2024
2023
2024
2023
Net loss attributable to common
stockholders
$
(19,700
)
$
(56,841
)
$
(40,983
)
$
(59,895
)
Other comprehensive income (loss):
Foreign currency translation
adjustment
1
—
(12
)
—
Change in fair value of available-for-sale
marketable securities, net of deferred taxes
73
2,668
1,184
3,524
Total other comprehensive income
74
2,668
1,172
3,524
Total comprehensive loss
$
(19,626
)
$
(54,173
)
$
(39,811
)
$
(56,371
)
Benson Hill, Inc.
Condensed Consolidated
Statements of Cash Flows (Unaudited)
(In Thousands)
Six Months Ended June
30,
2024
2023
Operating activities
Net loss
$
(40,983
)
$
(59,895
)
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation and amortization
8,061
10,596
Stock-based compensation expense
2,414
(1,214
)
Bad debt expense
1,077
(197
)
Changes in fair value of warrants and
conversion option
(286
)
(18,660
)
Accretion and amortization related to
financing activities
6,191
4,318
Realized losses on sale of marketable
securities
1,164
3,044
Impairment of goodwill
—
19,226
Other
(4,043
)
2,593
Changes in operating assets and
liabilities:
Accounts receivable
1,302
(1,614
)
Inventories
5,962
31,072
Other assets and other liabilities
2,710
909
Accounts payable
(1,008
)
(23,708
)
Accrued expenses
(9,022
)
(10,751
)
Net cash used in operating activities
(26,461
)
(44,281
)
Investing activities
Purchases of marketable securities
(36,560
)
(75,050
)
Proceeds from maturities of marketable
securities
22,933
41,759
Proceeds from sales of marketable
securities
26,287
84,385
Purchase of property and equipment
(458
)
(6,956
)
Proceeds from divestiture of discontinued
operations
57,713
1,928
Proceeds from a corporate-owned life
insurance policy
2,173
—
Other
27
36
Net cash provided by investing
activities
72,115
46,102
Financing activities
Repayments of long-term debt
(66,307
)
(4,313
)
Proceeds from issuance of long-term
debt
15,800
—
Payments of debt issuance costs
—
(2,000
)
Borrowing under revolving line of
credit
3,562
—
Repayments under revolving line of
credit
(3,562
)
—
Payments of finance lease obligations
(2,003
)
(1,595
)
Proceeds from exercise of stock awards,
net of withholding taxes
59
140
Net cash used in financing activities
(52,451
)
(7,768
)
Effect of exchange rate changes on
cash
(12
)
—
Net decrease in cash and cash
equivalents
(6,809
)
(5,947
)
Cash, cash equivalents and restricted
cash, beginning of period
16,081
43,321
Cash, cash equivalents and restricted
cash, end of period
$
9,272
$
37,374
Supplemental disclosure of cash flow
information
Cash paid for taxes
$
—
$
2
Cash paid for interest
$
4,674
$
9,555
Supplemental disclosure of non-cash
activities
Purchases of property and equipment
included in liabilities
$
30
$
333
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.
Adjustments to reconcile net loss from our
continuing operations to Adjusted EBITDA:
Three Months Ended June
30,
Six Months Ended June
30,
2024
2023
2024
2023
Net loss from continuing operations, net
of income taxes
$
(17,983
)
$
(36,505
)
$
(44,297
)
$
(43,290
)
Interest expense, net
1,708
6,874
10,304
13,246
Income tax expense (benefit)
6
(138
)
6
(123
)
Depreciation and amortization
3,846
3,529
7,673
7,003
Stock-based compensation
1,138
(4,073
)
2,414
(1,259
)
Changes in fair value of warrants and
conversion option
(513
)
3,036
(286
)
(18,660
)
Impairment of goodwill
—
9,260
—
9,260
Exit costs related to divestiture of
Creston facility
(7
)
—
2,881
—
Business transformation
408
—
732
—
Proceeds from a corporate-owned life
insurance policy
(2,173
)
—
(2,173
)
—
Severance
402
1,126
1,476
1,238
Other
755
1,642
1,773
2,874
Total Adjusted EBITDA
$
(12,413
)
$
(15,249
)
$
(19,497
)
$
(29,711
)
Adjustments to reconcile net loss from our
continuing operations to free cash flow loss:
Three Months Ended June
30,
Six Months Ended June
30,
2024
2023
2024
2023
Net loss from continuing operations, net
of income taxes
$
(17,983
)
$
(36,505
)
$
(44,297
)
$
(43,290
)
Depreciation and amortization
3,846
3,529
7,673
7,003
Stock-based compensation
1,138
(4,073
)
2,414
(1,259
)
Changes in fair value of warrants and
conversion option
(513
)
3,036
(286
)
(18,660
)
Impairment of goodwill
—
9,260
—
9,260
Accretion and amortization related to
financing activities
—
2,300
6,191
4,318
Change in working capital
(6,309
)
(1,770
)
(2,857
)
(17,752
)
Other
(1,262
)
4,119
(163
)
5,765
Net cash used in operating activities
(21,083
)
(20,104
)
(31,325
)
(54,615
)
Payments for acquisitions of property and
equipment
(49
)
(3,916
)
(458
)
(6,313
)
Free cash flow loss
$
(21,132
)
$
(24,020
)
$
(31,783
)
$
(60,928
)
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240808408679/en/
Investors: Tana Murphy: (314) 579-3184 /
investors@bensonhill.com Media: Christi Dixon: (636) 359-0797 /
cdixon@bensonhill.com
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