Davis, California, USA
May 12, 2016
- First Quarter Total Revenues Increased 30% to $2.7 million
- First Quarter Product Shipments Increased 79% to $3.9 million
- Achieved Seed-Treatment Deal, Zequanox Project Funded, Expanded Commercial Team and Progressed Toward Other Key Operational Objectives
Marrone Bio Innovations, Inc. (the "Company" or "we") (NASDAQ: MBII), a leading provider of bio-based pest management and plant health products for the agriculture, turf and ornamental and water treatment markets, today announced results for the first quarter ended March 31, 2016.
First Quarter Results
The Company grew reported total revenues for the first quarter of 2016 by 30% to $2.7 million as compared to $2.1 million in the first quarter of 2015. First quarter 2016 product shipments grew by 79% to $3.9 million from $2.2 million in first quarter of 2015. This growth reflects continued increases in grower adoption of the Company's products, use of the Company's products on an expanded number of crops, growth from new customers and the addition of Majestene® sales.
Dr. Pam Marrone, Chief Executive Officer, commented, "In addition to executing well against increased demand for our products, we have continued to focus on the achievement of a number of important operational objectives. For example, we have initiated our first seed treatment collaboration - a significant MBI milestone - with Groundwork BioAg to create an all-biological pesticidal and biostimulant seed treatment for corn and soybeans. We are also pleased that the U.S. EPA announced funding under the Great Lakes Restoration Initiative to assess new, open water application techniques to control zebra and quagga mussels with Zequanox."
Dr. Marrone continued, "We have also recently added a number of highly talented and motivated professionals to our sales and technical services team, and we continue to work towards other key operational objectives, including the launch of an improved Grandevo granule formulation, a distribution partnership for Zequanox, the signing of one or more row crop distribution deals, the signing of new distribution agreements in international markets and additions to our intellectual property portfolio."
The Company's reported net loss for the first quarter of 2016 was $9.3 million, compared to a loss of $11.9 million in the first quarter of 2015. This improvement reflects the positive impact of restructuring activities, as well as growth in revenues and a moderation of certain non-operating expenses associated with its financial restatement, Audit Committee investigation and related matters. Except with respect to ongoing related litigation, the Company does not expect these expenses to continue in the future. The Company's gross margin in the quarter was 15.0% compared to 2.8% in last year's first quarter. This period's product costs included $222,000, or 9.8% of unabsorbed costs related to capacity utilization at our manufacturing plant, reflecting progress in more fully utilizing our plant as sales levels increase.
Dr. Marrone concluded, "We are pleased with the continued improvement we saw in our business this quarter. The momentum we built in the market through the later part of last year has continued into 2016."
Recent Business Highlights
- March 2016 - distribution agreement for Bio-Tam 2.0 with Isagro
- March 2016 - addition of Kathleen Merrigan to Board of Directors
- March 2016 - allowance of a U.S. patent on Regalia formulations
- April 2016 - Collaboration with Groundwork BioAg for an all-biological pesticidal and biostimulant seed treatment
- May 2016 - U.S. EPA funding for open water Zequanox treatments under the Great Lakes Restoration Initiative
At the end of the first quarter, the Company's balance sheet had total cash of $28.2 million, which includes cash and cash equivalents of $9.8 million, as well as short and long-term restricted cash of $18.4 million.
As described below, in order to provide enhanced information on corporate performance and to supplement GAAP disclosure, the Company has introduced a non-GAAP measure, product shipments. We intend to include this metric as a supplemental measure of business activity in a given period within its financial reports going forward, along with the required reconciliation to the most directly comparable GAAP financial measure.
Full release
Topics
Species
