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Local Bounti (LOCL) - 2024 Q4 - Annual Results
LOCLLocal Bounti (LOCL)2025-03-31 20:10

Financial Performance - Sales increased by 38% to 38.1millionin2024,comparedto38.1 million in 2024, compared to 27.6 million in the prior year, driven by production growth from facilities in Georgia, Texas, and Washington[5] - Gross profit for 2024 was 4.1million,withanadjustedgrossmarginofapproximately274.1 million, with an adjusted gross margin of approximately 27%, consistent with the prior year, reflecting production ramp-up at new facilities[5] - Operating loss improved by 57.9 million to 59.0millionin2024,comparedtoalossof59.0 million in 2024, compared to a loss of 116.9 million in 2023, which included a non-cash goodwill impairment charge[9] - Net loss for 2024 was 119.9million,slightlyimprovedfromanetlossof119.9 million, slightly improved from a net loss of 124.0 million in the prior year[9] - Sales for Q4 2024 reached 10,070,000,a4610,070,000, a 46% increase from 6,866,000 in Q4 2023[34] - The net loss for Q4 2024 was 36,258,000,animprovementfromanetlossof36,258,000, an improvement from a net loss of 65,554,000 in Q4 2023[34] - The company reported a basic and diluted net loss per share of 4.21forQ42024,comparedto4.21 for Q4 2024, compared to 8.10 for Q4 2023[34] Expenses and Costs - Research and development expenses increased to 22.3millionin2024,withexpectationsforfuturedecreasesasproductionthresholdsfornewproductlinesarereached[9]−TotaloperatingexpensesforQ42024were22.3 million in 2024, with expectations for future decreases as production thresholds for new product lines are reached[9] - Total operating expenses for Q4 2024 were 17,314,000, down from 59,932,000inQ42023,primarilyduetoareductioningoodwillimpairment[34]−ResearchanddevelopmentexpensesforQ42024were59,932,000 in Q4 2023, primarily due to a reduction in goodwill impairment[34] - Research and development expenses for Q4 2024 were 7,185,000, significantly higher than 3,983,000inQ42023[34]−Selling,generalandadministrativeexpensesforQ42024were3,983,000 in Q4 2023[34] - Selling, general and administrative expenses for Q4 2024 were 10,129 thousand, down from 17,468thousandinQ42023,representingadecreaseof42.417,468 thousand in Q4 2023, representing a decrease of 42.4%[36] - Adjusted selling, general and administrative expenses for the twelve months ended December 31, 2024, were 28,185 thousand, down from 30,200thousandin2023,adecreaseof6.730,200 thousand in 2023, a decrease of 6.7%[36] - Stock-based compensation expense for Q4 2024 was 1,247 thousand, down from 2,616thousandinQ42023,areductionof52.32,616 thousand in Q4 2023, a reduction of 52.3%[37] - Interest expense, net for the twelve months ended December 31, 2024, increased to 58,923 thousand from 25,745thousandin2023,anincreaseof128.525,745 thousand in 2023, an increase of 128.5%[37] - Depreciation and amortization for the twelve months ended December 31, 2024, was 18,871 thousand, up from 13,132thousandin2023,anincreaseof43.713,132 thousand in 2023, an increase of 43.7%[37] - Business acquisition and strategic transaction costs for the twelve months ended December 31, 2024, were 2,479 thousand, down from 6,902thousandin2023,adecreaseof64.06,902 thousand in 2023, a decrease of 64.0%[37] - Loss on disposal of fixed assets for the twelve months ended December 31, 2024, was 1,651 thousand, compared to 4,709thousandin2023,adecreaseof64.94,709 thousand in 2023, a decrease of 64.9%[37] Funding and Capital Structure - The company secured 27.5 million in new funding, including 25millioninequityand25 million in equity and 2.5 million in capex financing, while restructuring 197millionindebtwithanearly40197 million in debt with a nearly 40% reduction[2][4] - Total assets increased to 428,035,000 as of December 31, 2024, up from 381,752,000in2023[32]−Currentliabilitiesroseto381,752,000 in 2023[32] - Current liabilities rose to 55,436,000 in Q4 2024, compared to 31,941,000inQ42023[32]−Long−termdebtincreasedto31,941,000 in Q4 2023[32] - Long-term debt increased to 416,577,000 in Q4 2024, up from 277,985,000inQ42023[32]FutureOutlook−Thecompanyexpectsfirstquarter2025salesofapproximately277,985,000 in Q4 2023[32] Future Outlook - The company expects first quarter 2025 sales of approximately 11.5 million, reflecting ongoing product mix transitions at its Texas facility[21] - Local Bounti aims to achieve positive adjusted EBITDA by the third quarter of 2025, supported by improved capital structure and operational efficiencies[22] Leadership Changes - Leadership transition occurred with Kathleen Valiasek appointed as CEO, succeeding Craig Hurlbert, who became Executive Chairman[18] Gross Profit and Margins - Adjusted gross profit for Q4 2024 was 2,478,000,withanadjustedgrossmarginpercentageof252,478,000, with an adjusted gross margin percentage of 25%[35] - Gross profit for Q4 2024 was 540,000, compared to 680,000inQ42023,reflectingadecreaseingrossmarginpercentage[34]−AdjustedEBITDAforthetwelvemonthsendedDecember31,2024,was680,000 in Q4 2023, reflecting a decrease in gross margin percentage[34] - Adjusted EBITDA for the twelve months ended December 31, 2024, was (32,084) thousand, slightly improved from (34,082)thousandin2023[37]GoodwillImpairment−GoodwillimpairmentrecordedinQ42023was(34,082) thousand in 2023[37] Goodwill Impairment - Goodwill impairment recorded in Q4 2023 was 38,481 thousand, with no impairment reported in Q4 2024[37]