St. Louis, Missouri, USA
November 10, 2022

Consolidated revenues increased 307 percent year-over-year to $130 million driven by a 429 percent increase in Ingredients segment revenues. 

• Management raised 2022 guidance with consolidated revenues in the range of $430 million to $455 million and gross profit of $14 million to $17 million.

• Management has taken actions intended to fully fund the business to expected positive EBITDA and free cash flow in 2025.

Benson Hill, Inc. (NYSE: BHIL, the “Company” or “Benson Hill”), a food tech company unlocking the natural genetic diversity of plants, today announced operating and financial results for the quarter ended Sept. 30, 2022.

“Our team members delivered another quarter of impressive results, which positions Benson Hill to end 2022 with better than expected financial performance. We have also taken recent actions that, when combined with strong execution and prudent cash management, are intended to fully fund the business to profitability,” said Matt Crisp, Chief Executive Officer of Benson Hill. “Macro factors and the current economic environment are underscoring the need for seed-to-fork innovation across our food system, and position Benson Hill for further growth.”

Third Quarter Results Compared to the Same Period of 2021
The impact of mark-to-market timing differences on the profit and loss statement and reconciliation of non-GAAP financial measures can be found on pages 7 and 12, respectively.

• Revenues were $130.2 million, an increase of $98.2 million, or 307 percent, led by rapid growth in the Ingredients segment, which was partially offset by a decline in revenues in the Fresh segment. 

• Gross profit was $4.4 million, an increase in profitability of $4.0 million due to profit contribution in the Ingredients segment, which was partially offset by a gross loss in the Fresh segment. The results included a $1.4 million gain related to unrealized mark-to-market timing differences. 

• Operating expenses were $32.5 million, a decrease of $6.1 million, which included $8.1 million for non-cash items. The decline was primarily driven by one-time public company expenses incurred in 2021, which were partially offset by increased staffing and related expenses in the current quarter to support Benson Hill’s rapid growth. 

• Inclusive of the mark-to-market timing differences, the reported net loss and Adjusted EBITDA were $30.2 million and $17.5 million, respectively.

• Cash and marketable securities on hand were $192.9 million as of Sept. 30, 2022.

Ingredients Segment

• Revenues for the segment were $122.3 million, an increase of $99.1 million, or 429 percent. Proprietary soy revenues were $26.0 million, an increase of approximately 300 percent. The increase in revenues was mostly driven by the enablement of the closed-loop business model for sales of proprietary and non-proprietary soy and yellow pea ingredient and achievement of better-than-expected throughput capacity at the Creston, Iowa and Seymour, Indiana soy facilities acquired in the prior year.

• Gross profit was $5.9 million, which includes $1.4 million for unrealized gains related to mark-to-market timing differences to offset unrealized losses incurred in the first quarter. Robust operating performance in the quarter was the result of top line growth of proprietary and non-proprietary products as well as recognition of modest, high-margin revenue contribution from the strategic partnership with ADM.

• Inclusive of the mark-to-market timing differences, Adjusted EBITDA for the segment was a loss of $0.3 million, a $5.0 million improvement.

Fresh Segment

• Revenues for the segment were $7.9 million, a decrease of $0.9 million, or 11 percent due to adverse weather conditions in Florida and Georgia during the quarter.

• Gross loss was $1.6 million as a result of weather-related challenges that required high cost purchases of fresh produce to meet contract obligations.

• Adjusted EBITDA was a loss of $2.9 million, which was a decrease of $0.5 million.

First Nine-Months Results Compared to the Same Period of 2021

• Revenues were $333.4 million, an increase of $229.9 million, or 222 percent, led by robust growth in the Ingredients segment. 
  • Ingredients segment revenues were $281.9 million, an increase of $221.8 million, or 369 percent. Proprietary revenues were $52.2 million, an increase of 158 percent.
  • Fresh segment revenues were $51.3 million, an increase of $8.0 million, or 18 percent.

• Gross profit was $4.7 million, an increase in profitability of $3.8 million, which includes $1.6 million related to the remaining unrealized losses from mark-to-market timing differences in the first quarter. Performance year-to-date was favorably impacted by top line growth, proprietary revenue mix, and contributions from partnership and licensing, which was partially offset by cost pressures in the Ingredients segment supply chain, the second quarter write-down of inventory in the Fresh segment, as well as the impact from adverse weather during the third quarter. When considering the effect of the timing of the mark-to-market adjustments, year-to-date gross profit was $6.3 million.

• Operating expenses were $102.4 million, an increase of $18.4 million due to higher costs to operate a fast-growing public company. Operating expense includes $26.7 million for non-cash items.

• Inclusive of the mark-to-market timing differences, the reported net loss was $74.3 million compared to a net loss of $83.6 million. Adjusted EBITDA was a loss of $60.8 million compared to a loss of $50.8 million.
  • Ingredients segment Adjusted EBITDA was a loss of $16.3 million.
  • Fresh segment Adjusted EBITDA was loss of $1.0 million.

Liquidity
Planned revenue growth and gross margin expansion over the next three years will be the primary means to source the Company’s liquidity. The strategic and operating milestones achieved over the last 12 months validate Benson Hill’s mission and planned objectives in support of its previously stated 2025 financial targets:

• Consolidated revenue in excess of $500 million, including $350 million or more of proprietary Ingredients revenue;

• Gross profit margin greater than 25 percent; and

• Positive EBITDA and free cash flow.

Management has taken proactive actions intended to fully fund the business, inclusive of debt repayments, to achieve its 2025 strategic and financial objectives. This includes an upfront technology access fee from ADM, a 12-month extension of the interest-only period for the current debt facility and the benefits from faster than expected business growth as well as operational efficiency gains. The Company also filed a registration statement to put in place an At-The-Market (“ATM”) facility for up to $100 million. Once effective, the ATM facility is expected to provide additional flexibility to supplement the Company’s cash position over the next two to three years. 

As previously announced, the Company initiated a strategic review of the Fresh business earlier this year. As a result, interested parties are in discussions with management to acquire the business and related assets. The Company cannot assure that it will be able to consummate any strategic transaction on favorable or timely terms, if at all. If a transaction or transactions were to occur, the likely result will be a non-cash write-off of up to approximately 50 percent of the book value of the business. Management expects to use the net proceeds from a possible divestiture to further enhance the Company’s liquidity position.

Revised 2022 Outlook
As a result of the continued strong demand for non-proprietary ingredient soy and yellow pea products, management increased the Ingredient segment full-year revenue guidance to $370 million to $390 million, above the previous guidance of $275 million to $325 million. Full-year expectations for proprietary revenues remain in the range of $70 million to $80 million. Revenue guidance for the Fresh segment is now $60 million to $65 million versus the prior guidance of $65 million to $75 million. On a consolidated basis, the revised 2022 revenue guidance is now $430 million to $455 million.

Management raised its gross profit guidance to $14 million to $17 million compared to the prior forecast of $9 million to $13 million. The improvement is the result of the accelerated top-line growth, improved operating efficiencies anticipated in the fourth quarter, and the recognition of a portion of the expected revenue and profit contribution from the ADM strategic partnership. For the Fresh segment, the current forecast for annual gross margins is low single digits compared to the original guidance of high single digits. 

The Company improved its guidance to a net loss of $106 million to $111 million, Adjusted EBITDA loss of $75 million to $80 million, and negative free cash flow of $95 million to $105 million.

Website: https://bensonhill.com/

Published: November 10, 2022