Davis, California, USA
November 13, 2018

• Year-Over-Year Revenues Increase 29% to Third Quarter Record of $5.4 Million;
• Gross Margins Expand to Record 48.3%;
• Operating Expenses Decrease by 19% to $6.8 Million

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 third quarter ended September 30, 2018.

Management Commentary
“I am pleased to announce our strong third quarter financial results and continued operational execution throughout our business,” said Dr. Pam Marrone, Founder and CEO of Marrone Bio Innovations. “I am excited about what I am seeing regarding the market’s acceptance of biologicals in integrated programs with large growers. We continued to strengthen our commercial team through the addition of key hires, which when paired with customer education initiatives aimed at the integration of our brands into traditional programs while increasing our share in the organic market, we expect to drive continued growth as we move into 2019.

“On the financial front, we grew revenue 29% over last year to a third quarter record of $5.4 million, which is notable as the third quarter is traditionally one of our slowest times of year. In addition, our gross margins improved to a record 48.3%, while further trimming operating expenses 19% to $6.8 million. As a result of all of these factors, our cash usage from operations was the lowest in our history as a public company.

“On the technology front, we continue to be recognized throughout the industry for innovation. Venerate was recently named the Best New Biological Product at the prestigious Agrow Awards 2018, while we were awarded the renowned 2018 Bernard Blum Award for a Novel Biocontrol Solution by the International Biocontrol Manufacturers Association. When one considers our history of product introductions, as well as our recent EPA submission of our novel bioherbicide, MBI-014, and what we have in our pipeline for the near future, I believe we will continue to lead the integration of biologicals within the agricultural industry.

“We continue to see encouraging trends throughout our business, particularly in our three core areas of focus: growing revenues, increasing gross margins over the long term and diligently managing operating expenses. I believe we are well positioned to continue to execute upon our business plan, creating long-term value for our shareholders,” concluded Marrone.  

Q3 2018 Financial Summary

• Revenues grew to $5.4 million in the third quarter of 2018, compared to $4.2 million in the third 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 third quarter of 2018 increased significantly to 48.3%, compared to 40.9% in the third quarter of 2017.
• Operating expenses in the third quarter of 2018 declined 19% to $6.8 million, compared to $8.3 million in the third quarter of 2017.
• Net loss in the third quarter of 2018 improved significantly to $4.4 million, compared to a net loss of $8.5 million in the third quarter of 2017.
• Cash and cash equivalents, including restricted cash, totaled $22.1 million on September 30, 2018 compared to $24.9 million on June 30, 2018, reflecting cash usage of $2.8 million in the third quarter of 2018.

Recent Operational Highlights

• Submission of MBI-014 bioherbicide to the EPA.
• Expanded MBI’s international distribution network through new deals with Hop Tri Investment Corporation in Vietnam and Cambodia and with AMC/Agrimatco in Turkey.
• Strengthened the sales team through the appointment of Barner Jones as the Director of National Sales and Account Management and Jenna Combs as the Sales Manager of the Northern California Territory.
• Awarded the 2018 Bernard Blum Award for a Novel Biocontrol Solution by the International Biocontrol Manufacturers Association in Basel, Switzerland.
• Venerate named Best New Biological Product at Agrow Awards 2018 in London, United Kingdom.
• Keith McGovern and Stuart Woolf, two major leaders in the agricultural industry, joined the Board of Directors; Formed Advisory Council to advise the Board and management’s strategic vision for the Company.
• Launched a series of grower education initiatives aimed at increasing awareness among both conventional and organic farmers and the food channel.
• Among the many positive trial data around the globe, received positive results with Grandevo and Venerate on almonds, walnuts, tomatoes, peppers and cotton in California as well as on cannabis in Canada, with Regalia in Brazil, Panama, Argentina and Tunisia, Majestene in Europe and with Stargus in California and Canada.

Website: http://marronebioinnovations.com/

Published: November 13, 2018