Davis, California, USA
August 9, 2016
- Third Consecutive Quarter of Strong Year-over-Year Growth
- Second Quarter Revenues up 50%; Second Quarter Product Shipments up 68%
- Second Quarter Net Cash and Equivalents and Restricted Cash Usage of $4.1 million
- Total Cash and Equivalents and Restricted Cash of $24.2 million
Marrone Bio Innovations, Inc. (NASDAQ:MBII), a leading provider of effective and environmentally responsible pest management and plant health products, today announced results for the second quarter ended June 30, 2016.
Second Quarter Results
The Company grew reported total revenues for the second quarter of 2016 by 50% to $5.0 million as compared to $3.4 million in the second quarter of 2015. Second quarter 2016 product shipments increased by 68% to $4.2 million from $2.5 million in the second quarter of 2015. This growth reflects continued increases in grower adoption of the Company's products, the increased use of the Company's products on an expanding number of crops and pests, the addition of Majestene sales, new customers and additional geographic regions. Please see the notes at the end of this release for additional information related to non-GAAP financial measures.
Dr. Pam Marrone, Chief Executive Officer, commented, "Along with demonstrating strong second quarter results, we have made powerful progress on a number of our key operational objectives. We were very pleased to reach our very first row crop distribution deal for the U.S. & Canada, a second seed treatment partnership, as well as receiving the approval for Regalia Rx on wheat and soybeans in Canada, and the approval of our insecticides in Mexico."
Dr. Marrone continued, "At the midpoint of the year, we are pleased to have demonstrated momentum in our revenue and gross margin growth as well as achieving substantial reductions in cash usage. We are also excited for the positive impact from our achievement of all but one of the operational objectives we identified at the beginning of the year."
The Company used $4.1 million in combined cash and equivalents and restricted cash, down from $10.0 million used in the first quarter and $10.2 million used during second quarter of 2015. The Company's reported net loss for the second quarter of 2016 was $6.8 million, compared to a loss of $11.0 million in the second quarter of 2015. This improvement reflects growth in revenues, favorable product mix, improved utilization at the Company's manufacturing plant, and lack of non-recurring charges related to the investigation and restatement. The Company's gross margin in the second quarter was 38.2%, a record level for the Company that compares to 10.8% in the second quarter of 2015 and to 15.0% in the first quarter of 2016. This period's product costs included $0.1 million of unabsorbed costs related to capacity utilization at the Company's manufacturing plant as compared to $0.6 million in the second quarter of 2015. This improvement reflects the progress in our plant utilization as our sales levels have grown.
Dr. Marrone concluded, "This is an important Company with important products, valuable technology, and a lot of good opportunities right in front of us. We believe we are well positioned to drive real value… to our shareholders, to our industry and to a global community of customers that has begun to recognize that they need, want, and will benefit from doing business with us."
Recent Business Highlights
- May 2016 - EPA approval for Grandevo WDG
- June 2016 - first row crop distribution partnership for Regalia with Koch Agronomic Services
- July 2016 - received approval in Canada for Regalia Rx use on wheat and soybeans
- July 2016 - received registration in Mexico for Grandevo and Venerate
- August 2016 - signed seed treatment partnership with Albaugh, LLC
At the end of the second quarter, the Company's balance sheet had total cash and equivalents, and restricted cash of $24.2 million.
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