DAVIS, Calif., Nov. 10, 2021 (GLOBE NEWSWIRE) -- Marrone Bio Innovations, Inc. (NASDAQ:MBII), an international leader in sustainable bioprotection and plant health solutions, has provided its financial results for the third quarter ended September 30, 2021. Key results include:

• Strategic focus on global expansion in the major row crops was a key contributor to the 12% revenue growth for the third quarter. Sales of biological fungicides also increased during the period.
• Stronger mix of higher margin seed treatments led to gross profit of 61.4% in the third quarter, the 12^th consecutive quarter of gross margins in excess of 50%.
• The net loss in the third quarter of 2021 was $4.9 million, as compared with a net loss of $6.1 million in the third quarter of 2020. Higher revenues and gross margin expansion, coupled with continued cost containment, led to the 18% improvement in the net loss and the 22% improvement in the Adjusted EBITDA¹ loss.
  
  

Selected Financial Highlights

      ¹Adjusted EBITDA is a non-GAAP financial measure and is described in relation to its most directly comparable GAAP measure under "Use of Non-GAAP Financial Information" below.

Management Commentary

"Our strategy to diversify our offerings of sustainable agricultural solutions globally – particularly with seed treatments – continues to be sound. This has allowed us to grow the business in the face of ongoing drought, input cost pressures and supply chain challenges affecting growers around the world," said Chief Executive Officer Kevin Helash. "However, given the uncertainties in the agricultural markets as we close out the year, we now anticipate revenue growth in the low double-digit to mid-teens range for 2021 as we set the stage for more robust sales in 2022. We continue to expect our product mix will deliver annual gross margins in the upper 50% range, and operating expenses should remain in line with costs in 2020, plus inflation.

"As our distribution partners anticipate the needs of farmers for the 2022 growing season, we will be in position to ensure the right products are in the channel at the right time to maximize value and guarantee availability," Helash added. "Our BioUnite program – which offers growers highly compatible and cost-effective treatments for diseases and pests – should have a significant advantage in today's ag environment, and our objective is to maximize that opportunity as we look to 2022.

"The global trend toward growing more food with a gentler footprint remains intact, and we are at the forefront of meeting that need," Helash concluded. "The return on investment our products provide – both for the farmer and the environment – will stand out as growers face higher costs for inputs linked to traditional chemicals and fossil fuels."

Third Quarter 2021 Financial and Operational Summary

• Expansion in row crops globally was a key contributor to the 12% increase in third-quarter revenues as distribution partners acquired seed treatments in advance of the 2022 growing season. Despite ongoing drought conditions in specialty markets in the United States, revenues from the company's biological fungicides grew as growers prepared for 2022 production.
• Gross profit growth of 21% outpaced revenue growth, reflecting the mix of high value offerings in the company's product portfolio. Gross margins for the third quarter 2021 were 61.4%, a 470 basis point improvement over gross margins in the third quarter of 2020.
• Third-quarter operating expenses of $10.5 million were in line with the company's commitment to maintain operating expenses flat with those in the prior year, plus inflation. Prudent cost management contributed to a 1,200 basis point improvement in the operating expense ratio – a key performance indicator that compares operating expenses to revenues.
• The net loss in the third quarter of 2021 was $4.9 million, as compared with a net loss of $6.1 million in the third quarter of 2020. Adjusted EBITDA was a loss of $2.8 million, as compared with an Adjusted EBITDA loss of $3.6 million in the same period last year. Both metrics improved because of the company's strategic emphasis on revenue growth, margin expansion and cost containment. Adjusted EBITDA is further described under "Use of Non-GAAP Financial Information" below.
• Cash used in operations of $0.3 million improved by 64%, largely driven by the higher gross profit and lower net loss in the third quarter of 2021.
  
  

Year-to-Date 2021 Financial and Operational Summary

• For the first nine months of 2021, revenues increased 9% to $33.5 million from further adoption of the company's seed treatments for major row crops. This improvement was somewhat offset by slower than expected growth in bioinsecticides for specialty crops, the use of which was affected by drought conditions, particularly in the western United States.
• Gross profit improved 16% year-to-date to $20.8 million, with gross margins up 350 basis points to 62.1%.
• Operating expenses for the first nine months of 2021 were $30.6 million, with a year-to-date operating expense ratio of 91%. Year-to-date operating expenses in 2020 benefited by $1.4 million from a Paycheck Protection Program (PPP) loan secured to retain employees supporting the essential agricultural industry during the COVID-19 pandemic, which has since been forgiven.
• The 2021 year-to-date net loss was $11.2 million, compared with a net loss of $16 million in the same period in 2020, as a result of higher sales, stronger margins and lower costs. The net loss for the first nine months of 2020 included non-cash adjustments related to warrant exercises, stock compensation and amortization charges, as well as the benefit of the PPP loan.
• Adjusted EBITDA in the first nine months of 2021 was a loss of $4.7 million, a 47% improvement from the loss of $8.8 million in the same period in 2020. Growth in revenues and gross profit, coupled with cost discipline, drove the performance. Adjusted EBITDA is further described under "Use of Non-GAAP Financial Information" below.
• Cash used in operations was $6.6 million in the nine months of 2021, a 24% improvement compared with a use of cash of $8.6 million in the same period of 2020. Cash used in operations in the first nine months of 2020 benefited from $1.7 million in proceeds from the PPP loan.

Conference Call and Webcast

Management will host an investor conference call at 4:30 p.m. ET (1:30 p.m. PT) on November 10, 2021 to discuss Marrone Bio Innovations' third quarter 2021 financial results, provide a corporate update, and conclude with a Q&A from participants. To participate, please use the following information:

Q3 2021 Conference Call and Webcast

Date: Wednesday, November 10, 2021

Time: 1:30 p.m. Pacific time (4:30 p.m. Eastern time)

U.S. Dial-in: 1-844-612-2103

International Dial-in: 1-918-922-3145

Conference ID: 2099126

Webcast: https://edge.media-server.com/mmc/p/y83cbza6

Please dial in at least 10 minutes before the start of the call to ensure timely participation.

A playback of the call will be available through November 30, 2021. To listen, call 1-855-859-2056 in the United States, or 1-404-537-3406 internationally. Please use the conference ID number 2099126. A webcast will also be available for 30 days on the IR section of the Marrone Bio Innovations website or by clicking here: https://investors.marronebio.com/

About Marrone Bio Innovations

Marrone Bio Innovations Inc. (NASDAQ:MBII) is a growth-oriented agricultural company leading the movement to environmentally sustainable farming practices through the discovery, development and sale of innovative biological products for crop protection, crop health and crop nutrition. Our portfolio of 18 products helps customers operate more sustainably while increasing their return on investment. The company's commercial products are sold globally and supported by a robust portfolio of more than 500 issued and pending patents. Our end markets include row crops; fruits and vegetables; trees, nuts and vines; and greenhouse production. Marrone Bio's research and development program uses proprietary technologies to isolate and screen naturally occurring microorganisms and plant extracts to create new, environmentally sound solutions in agriculture.

Learn more about Marrone Bio Innovations at www.marronebio.com. We also use our investor relations website, https://investors.marronebio.com, as well as our corporate Twitter account, @Marronebio, as means of disclosing material non-public information, and encourage our investors and others to monitor and review the information we make public in these locations. Follow us on social media: Twitter, LinkedIn and Instagram.

Non-GAAP Financial Measures

This earnings release discusses Adjusted EBITDA which is not a financial measure as defined by GAAP. This financial measure is presented as a supplemental measure of operating performance because we believe it can aid in, and enhance, the understanding of our financial results. In addition, we use Adjusted EBITDA as a measure internally for budgeting purposes.

We define Adjusted EBITDA as net income (loss) before (1) interest expense (income), net, (2) income tax expense (benefit), (3) depreciation, (4) amortization of intangible assets, (5) stock-based compensation expense, plus (6) from time to time, certain other items which are specific transaction-related items. Other companies may define or calculate this measure differently, limiting the usefulness as a comparative measure. Because of this limitation, this non-GAAP financial measure should not be considered in isolation or as substitute for or superior to performance measures calculated in accordance with GAAP and should be read in conjunction with the financial statement tables.

Marrone Bio Innovations Forward Looking Statements

This press release contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve substantial risks and uncertainties. All statements, other than statements of historical facts, included in this press release regarding strategy, future operations and plans, including assumptions underlying such statements, are forward-looking statements, and should not be relied upon as representing the company's views as of any subsequent date. Examples of such statements include financial guidance and other statements regarding the company's future revenue growth, margins, operating expenses, and other financial results; success of the company's BioUnite program and further global expansion of the company's business; global trends in the agricultural industry; and the potential benefits and value of the company's products. Such forward-looking statements are based on information available to the company as of the date of this release and involve a number of risks and uncertainties, some beyond the company's control, that could cause actual results to differ materially from those anticipated by these forward-looking statements, including the recent uncertainty in the global economy and industry-specific economy caused by the COVID-19 pandemic, consumer, regulatory and other factors affecting demand for the company's products, any difficulty in expanding the company's sales and marketing infrastructure or marketing the company's products in global markets, competition in the market for pest management products, lack of understanding of bio-based pest management products by customers and growers, adverse actions by distributors, manufacturers, regulatory agencies and other relevant third parties and costs associated with any strategic acquisitions or other business opportunities we elect to pursue. Additional information that could lead to material changes in the company's performance is contained in its filings with the Securities and Exchange Commission. The company is under no obligation to, and expressly disclaims any responsibility to, update or alter forward-looking statements contained in this release, whether as a result of new information, future events or otherwise.

Marrone Bio Innovations Contact:

Clyde Montevirgen

Vice President of Business Development & Investor Relations

Telephone: 530-750-2800

info@marronebio.com 

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