St. Louis, Missouri, USA
March 13, 2023

• Revenues increased 319 percent to $381 million, including a near doubling of proprietary revenues to $73 million.
• ross profit was $3.5 million ($8.5 million when excluding an approximate $4.9 million loss from open mark-to-market timing differences).
• 2023 proprietary revenues are expected to grow to an estimated range of $100 million to $110 million and help drive a more than doubling of gross profit in the range of $20 million to $30 million.
• 2023 Adjusted EBITDA loss is expected to narrow and use of free cash is expected to increase due primarily to planned investments to enable additional, higher margin food-grade manufacturing capabilities.
• In 2025, management remains committed to the target of positive Adjusted EBITDA and free cash flow as it focuses on the highest-margin proprietary products in response to persistent high costs across the supply chain.
• The Company expects to execute a plan to optimize its capital structure and actions to increase return on capital.

Benson Hill, Inc. (NYSE: BHIL, the “Company” the “Company” or “Benson Hill”), a food tech company unlocking the natural genetic diversity of plants, today announced operating and financial results for the year ended December 31, 2022.

“2022 was an exceptional year for Benson Hill, and we expect 2023 to bring continued proprietary revenue growth and gross margin expansion led by our soy ingredient products,” said Matt Crisp, Chief Executive Officer of Benson Hill. “Demand for our innovations remains strong, although persistent high supply chain costs are impacting our profitability in certain food ingredient categories, which we believe will continue for the foreseeable future. To meet the needs of our customers, we will execute a more targeted growth strategy focused on the highest-margin proprietary products and one that de-emphasizes lower margin products. In addition, we are finalizing and expect to implement capital management changes designed to reduce debt, interest and operating expenses, and increase return on capital, while maintaining our commitment to fully fund the business. Our team demonstrated its ability to meet our strategic objectives, and we remain steadfast in our commitment to shareholders to achieve significant yet disciplined growth, as well as our target of profitability in 2025.”

Full Year 2022 Results as Compared to The Same Period of 2021
The financial results discussed in this press release exclude the Fresh business, which was divested in a two-part transaction announced on January 3, 2023, the initial portion of which was consummated on December 29, 2022, and the second portion of which is expected to close in the second quarter of 2023. The Company recorded the Fresh business as discontinued operations as of December 31, 2022. The impact of open mark-to-market timing differences on the profit and loss statement and reconciliation of non-GAAP financial measures can be found on pages 6 and 12, respectively. 

• Revenues were $381.2 million, an increase of $290.3 million, or 319 percent. Strong demand from customers and greater availability of proprietary soy ingredients, meal and edible oil products resulted in a near doubling of proprietary revenues to $72.6 million. Non-proprietary revenues increased significantly due to favorable soy and yellow pea commodity prices and operational excellence associated with the startup of two soy production facilities.
• Gross profit was $3.5 million, an increase of $9.4 million. Excluding approximately $4.9 million in losses due to open mark-to-market timing differences, gross profit was $8.5 million and gross margins were 2.2 percent. Favorable top line growth, proprietary revenue mix, and contributions from partnership and licensing agreements were partially offset by cost pressures in the supply chain as well as the impact from adverse weather in the month of December.
• Operating expenses were $128.5 million, a $16.0 million increase, which includes $34.0 million for non-cash items primarily related to stock compensation and depreciation.
  • Selling, general and administrative expenses were $81.0 million, an increase of $9.1 million or 13 percent.
  • R&D expenses were $47.5 million, an increase of $6.9 million or 17 percent.
  • All year-over-year operating expense increases were related to non-cash items.

• Inclusive of open mark-to-market timing differences, net loss from continuing operations was $99.7 million, a decrease in loss of $22.5 million or 18 percent. Adjusted EBITDA was a loss of $81.6 million, or a loss of $76.7 million, excluding the impact from open mark-to-market timing differences, which was in line with the prior year.
• Cash, restricted cash, and marketable securities of $175.0 million were on hand as of December 31, 2022.

Fourth Quarter 2022 Results as Compared to The Same Period of 2021

• Revenues were $99.2 million, an increase of $68.4 million, or 223 percent. The performance was driven by sales for both proprietary and non-proprietary soy and yellow pea products.
• Gross profit was $0.8 million, an increase in profitability of $4.0 million, and includes an approximately $3.3 million loss due to open mark-to-market timing difference. Gross margins were approximately 4 percent when excluding open mark-to-market timing differences.
• Inclusive of mark-to-market timing differences, net loss from continuing operations was $30.8 million, a decrease in loss of $10.4 million or 25.3 percent. Adjusted EBITDA was a loss of $21.4 million compared to a loss of $29.1 million. 

Outlook
Excludes the Fresh segment which is now classified as discontinued operations.

Management expects continued strong demand for its proprietary products in 2023 resulting in a 40 percent to 50 percent increase in proprietary revenues to a range of $100 million to $110 million. Non-proprietary revenues are expected to decline moderately in favor of proprietary products, which sets the expectation for consolidated revenues to be in the range of $390 million to $430 million.

Consolidated gross profit is expected to be in the range of $20 million to $30 million driven by anticipated increases in proprietary sales, increased revenues from partnership and licensing agreements, which is expected to have higher margins, and favorable soy commodity markets for non-proprietary product sales. This outlook includes assumptions for persistent inflationary and supply chain logistics.

The Company expects a net loss of $125 million to $135 million and Adjusted EBITDA loss in the range of  $63 million to $68 million.

Capital expenditures are expected to be in the range of $20 million to $25 million due to a two-year capital project to add the capability for soy flour texturization at the Creston, Iowa facility. 

Management is in the advanced stages of finalizing a plan designed to lower the cost of capital, increase return on capital, and reduce costs. During the back half of this year, the Company expects to retire the existing $100 million high-cost debt two years early and replace it with a conventional, lower cost lending facility. The Company intends to utilize its current shelf registration statement, including its ATM facility, or alternative equity financing, for up to $100 million to supplement the cash needed to fully fund the business to profitability in 2025. The anticipated retirement of the existing debt will incur pre-payment penalties and other costs that, along with the planned capital expenditures, is expected to result in a free cash flow loss in 2023 of $120 million to $128 million. Management is also exploring strategic options for its Seymour, Indiana, soy crush facility to deploy capital more effectively within the closed-loop operations, reduce costs, and increase return on capital.

Management remains committed to its objective of achieving positive Adjusted EBITDA and positive free cash flow in 2025. The adoption of the targeted growth strategy is expected to result in proprietary revenues in 2025 of at least $300 million compared to the prior target of over $350 million. Consolidated revenues are forecasted to be $400 million or greater. The target for gross margins remains at 25 percent.

Website: https://bensonhill.com/

Published: March 14, 2023