Davis, California, USA
August 14, 2018
Company Achieves Several Key Milestones, Continues International Expansion and Improves Gross Margins 850 Basis Points to 47.3%
Marrone Bio Innovations, Inc. (“MBI” or the “Company”) (NASDAQ: MBII), a leading provider of bio-based pest management and plant health products for the agriculture, turf and ornamental and water treatment markets, has provided its financial results for the second quarter ended June 30, 2018.
Management Commentary
“We have continued to make solid operational progress, highlighted by our submission of MBI-014 bioherbicide to the EPA in August of 2018, continued excellent progress on international trials and submissions, and our support of growers in the burgeoning Cannabis market through the launch and approval of the CG brand of Regalia, Venerate and Grandevo,” said Dr. Pam Marrone, Founder and CEO of Marrone Bio Innovations. “As California and Colorado do not allow the use of chemical pesticides on Cannabis, biopesticides are uniquely positioned in this market.
“We also continued to expand our reach both internationally—through a new partnership with Lidorr Chemicals in Israel and a forthcoming partnership in Vietnam —and domestically, through the expansion of our sales team into Idaho and eastern Washington.
“Our research and development and manufacturing initiatives continue to bear fruit, driving significant margin improvements, as evidenced by our 850 basis point increase in gross margins to 47.3% in the second quarter.
“The progress we’ve continued to make internally and with customers has put us in a strong position to execute upon our business plan and create long-term shareholder value.”
Q2 2018 Financial Summary
- Revenues in the second quarter of 2018 totaled $5.8 million, compared to $6.5 million in the second quarter of 2017.
- Due to the adoption of the ASC 606 accounting standard (Revenue From Contracts With Customers), 2018 over 2017 reported revenues are not strictly an apples to apples comparison.
- Gross margins in the second quarter of 2018 increased 850 basis points to 47.3%, compared to 38.8% in the second quarter of 2017.
- Operating expenses in the second quarter of 2018 totaled $7.2 million, compared to $7.9 million in the second quarter of 2017.
- Net loss in the second quarter of 2018 improved to $4.8 million, compared to a net loss of $7.4 million in the second quarter of 2017.
- Cash and cash equivalents, including restricted cash totaled $24.9 million on June 30, 2018 and $16.8 million on March 31, 2018. In April 2018, the Company raised net proceeds of $12.7 million through the sale of common stock.
Recent Operational Highlights
- Submission of MBI-014 bioherbicide to the EPA.
- Successful field trials and an on-farm demo with EnnobleTM (MBI-601) biofumigant in organic strawberry, resulting in an estimated increase in profit of $3000/acre.
- Launched new CG brand of highly effective biological solutions for crop protection and plant health in cannabis and home gardens. Use of Regalia CG, Grandevo CG and Venerate CG has been cleared by several key states for use on cannabis.
- Expanded MBI’s international distribution network through a new deal with Lidorr Chemicals in Israel.
- Launched Amplitude, a new biological fungicide for the row crop market.
- Received positive field trial data with Regalia on coffee, onions, tomato, sugarcane and citrus in international trials, as well as on fire blight in U.S. apples.
- Grandevo and Venerate excelled in trials in Mexico, Chile and South Africa, while the first European trial results for Majestene came back positive.
- Joined the Russell 2000 Index after the market closed on June 22, 2018.
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