Benson Hill(BHIL) - 2024 Q3 - Quarterly Results

Executive Summary & Strategic Highlights Third Quarter 2024 Highlights Benson Hill reported $34.1 million in Q3 2024 revenues, with an improved Adjusted EBITDA loss of $12.6 million and $14.4 million in cash and marketable securities Third Quarter 2024 Key Financial Highlights | Metric | Q3 2024 ($M) | Q3 2023 ($M) | Change ($M) | Source Chunk | | :----------------------------------- | :----------- | :----------- | :---------- | :----------- | | Revenues | 34.1 | 23.5 | +10.6 | 1 | | Net loss from continuing operations | (21.9) | N/A | N/A | 2 | | Adjusted EBITDA loss | (12.6) | (14.4) | +1.8 | 2 | | Cash & Marketable Securities (period end) | 14.4 | N/A | N/A | 2 | Strategic Transformation & Business Model Shift The company is transitioning to an asset-light licensing model, emphasizing cost discipline and strategic partnerships for long-term growth - The Company is transforming its business from a closed-loop manufacturing model to an asset-light licensing model[4][5] - Focus on cost discipline, strategic partnerships, and the asset-light model aims to improve earnings quality and position for long-term growth[4] Product & Market Developments The company shipped 2023 UHP-LO soybeans, initiated new feeding studies, and expanded its 2025 proprietary soybean seed portfolio - Began shipping the remainder of 2023 UHP-LO soybeans into the poultry market[5] - Initiated two additional feeding studies with major broiler producers, representing over 40% of the U.S. broiler market[5] - Expanded proprietary soybean seed portfolio for the 2025 planting season, offering more than 30 varieties across six distinct product platforms[6] - Proprietary soybeans offer downstream partners a seamless solution to help achieve Scope 3 emissions reductions[7] Financial Performance Analysis Third Quarter 2024 Financial Results Q3 2024 revenues increased by 45.3%, driven by grain sales and licensing, with R&D and SG&A expenses significantly reduced Third Quarter 2024 Financial Performance | Metric | Q3 2024 ($M) | Q3 2023 ($M) | Change ($M) | Change (%) | Source Chunk | | :----------------------------------- | :----------- | :----------- | :---------- | :--------- | :----------- | | Reported Revenues | 34.1 | 23.5 | +10.6 | +45.3% | 8 | | R&D Expenses | 7.0 | 10.5 | -3.5 | -33.4% | 9 | | SG&A Expenses | 12.3 | 13.7 | -1.4 | -10.4% | 9 | | Net loss from continuing operations | (21.9) | (17.5) | -4.4 | -25.1% | 10, 26 | | Adjusted EBITDA Loss | (12.6) | (14.4) | +1.8 | +12.5% | 10, 34 | | Cash & Marketable Securities (period end) | 14.4 | N/A | N/A | N/A | 10 | Nine Months 2024 Financial Results Nine-month revenues decreased by 6.9%, while R&D expenses fell by 36.1%, and Adjusted EBITDA loss improved by $12.0 million Nine Months 2024 Financial Performance | Metric | 9M 2024 ($M) | 9M 2023 ($M) | Change ($M) | Change (%) | Source Chunk | | :----------------------------------- | :----------- | :----------- | :---------- | :--------- | :----------- | | Reported Revenues | 89.0 | 95.6 | -6.6 | -6.9% | 12 | | Domestic Sales (increase) | +16.5 | N/A | N/A | N/A | 12 | | R&D Expenses | 21.4 | 33.5 | -12.1 | -36.1% | 13 | | SG&A Expenses | 37.3 | 33.5 | +3.8 | +11.4% | 13 | | SG&A Expenses (excl. 2023 reversal) | N/A | N/A | -4.0 | N/A | 14 | | Net loss from continuing operations | (66.2) | (60.8) | -5.4 | -8.9% | 14, 26 | | Adjusted EBITDA Loss | (32.1) | (44.1) | +12.0 | +27.2% | 14, 34 | | Free Cash Flow Loss | (48.9) | (84.7) | +35.8 | +42.3% | 14, 35 | Company Overview & Disclosures About Benson Hill Benson Hill is a seed innovation company leveraging proprietary genetics and AI-driven technology to enhance soy quality traits and create value across the agribusiness supply chain - Benson Hill is a seed innovation company[16] - Utilizes proprietary genetics, AI-driven CropOS® technology platform, and Crop Accelerator to develop soy quality traits[16] - Collaborates with strategic partners to create value in the agribusiness supply chain for better feed, food, and fuel[16] Use of Non-GAAP Financial Measures The company uses non-GAAP measures like Adjusted EBITDA and Free Cash Flow for decision-making and performance comparison, supplementing GAAP results - Non-GAAP measures (Adjusted EBITDA, Free Cash Flow) are used to facilitate financial and operational decision-making and evaluate historical operating results[17] - These measures are considered supplemental to, not a substitute for, financial information prepared in accordance with GAAP[17] Cautionary Note Regarding Forward-Looking Statements Forward-looking statements are subject to risks and uncertainties, including business strategy, liquidity, partnerships, and market conditions - Statements in the press release may be considered 'forward-looking statements' subject to risks, uncertainties, and other factors[18] - Factors that may cause actual results to differ include risks associated with business strategy execution, liquidity, partnerships, market conditions, and the ability to raise additional financing[19] Condensed Consolidated Financial Statements (Unaudited) Balance Sheets Balance sheets present the financial position as of September 30, 2024, showing reduced total assets, liabilities, and stockholders' equity due to divestitures Condensed Consolidated Balance Sheets | Metric | Sep 30, 2024 ($K) | Dec 31, 2023 ($K) | Change ($K) | | :--------------------------- | :---------------- | :---------------- | :---------- | | Total Assets | 137,542 | 274,764 | (137,222) | | Total Liabilities | 110,701 | 188,721 | (78,020) | | Total Stockholders' Equity | 26,841 | 86,043 | (59,202) | | Cash & Cash Equivalents | 6,986 | 8,934 | (1,948) | | Marketable Securities | 7,421 | 32,852 | (25,431) | Statements of Operations Statements of operations detail financial performance for Q3 and nine months, showing net loss from continuing and discontinued operations Condensed Consolidated Statements of Operations | Metric | Q3 2024 ($K) | Q3 2023 ($K) | 9M 2024 ($K) | 9M 2023 ($K) | | :------------------------------------------- | :----------- | :----------- | :----------- | :----------- | | Revenues | 34,098 | 23,464 | 89,004 | 95,615 | | Net loss from continuing operations, net of income taxes | (21,896) | (17,552) | (66,193) | (60,842) | | Net (loss) income from discontinued operations, net of tax | (1,040) | (18) | 2,274 | (16,623) | | Net loss attributable to common stockholders | (22,936) | (17,570) | (63,919) | (77,465) | | Basic & Diluted Net Loss per Common Share from Continuing Operations | (3.95) | (3.26) | (12.03) | (11.34) | Statements of Comprehensive Loss Statements of comprehensive loss present total comprehensive loss, including net loss and other comprehensive income (loss) items Condensed Consolidated Statements of Comprehensive Loss | Metric | Q3 2024 ($K) | Q3 2023 ($K) | 9M 2024 ($K) | 9M 2023 ($K) | | :------------------------------------------- | :----------- | :----------- | :----------- | :----------- | | Net loss attributable to common stockholders | (22,936) | (17,570) | (63,919) | (77,465) | | Total other comprehensive income | 33 | 409 | 1,205 | 3,933 | | Total comprehensive loss | (22,903) | (17,161) | (62,714) | (73,532) | Statements of Cash Flows Statements of cash flows detail cash from operating, investing, and financing activities, showing a net decrease in cash and equivalents Condensed Consolidated Statements of Cash Flows | Cash Flow Activity | 9M 2024 ($K) | 9M 2023 ($K) | | :----------------------------------- | :----------- | :----------- | | Net cash used in operating activities | (40,759) | (73,868) | | Net cash provided by investing activities | 85,666 | 72,237 | | Net cash used in financing activities | (53,990) | (9,053) | | Net decrease in cash and cash equivalents | (9,095) | (10,684) | | Cash, cash equivalents and restricted cash, end of period | 6,986 | 32,637 | - Proceeds from divestiture of discontinued operations significantly contributed to investing activities, totaling $58.4 million in 9M 2024[30] Non-GAAP Reconciliations Adjusted EBITDA Reconciliation Reconciliation of net loss to Adjusted EBITDA shows a Q3 2024 loss of $(12.6) million and a nine-month loss of $(32.1) million Adjusted EBITDA Reconciliation | Metric | Q3 2024 ($K) | Q3 2023 ($K) | 9M 2024 ($K) | 9M 2023 ($K) | | :------------------------------------------- | :----------- | :----------- | :----------- | :----------- | | Net loss from continuing operations, net of income taxes | (21,896) | (17,552) | (66,193) | (60,842) | | Total Adjustments | 9,268 | 3,193 | 34,068 | 16,772 | | Total Adjusted EBITDA | (12,628) | (14,359) | (32,125) | (44,070) | Free Cash Flow Reconciliation Reconciliation of free cash flow loss shows a Q3 2024 loss of $(17.1) million and a nine-month loss of $(48.9) million Free Cash Flow Reconciliation | Metric | Q3 2024 ($K) | Q3 2023 ($K) | 9M 2024 ($K) | 9M 2023 ($K) | | :------------------------------------------- | :----------- | :----------- | :----------- | :----------- | | Net loss from continuing operations, net of income taxes | (21,896) | (17,552) | (66,193) | (60,842) | | Net cash used in operating activities | (17,012) | (23,881) | (48,337) | (78,496) | | Payments for acquisitions of property and equipment | (83) | 100 | (541) | (6,213) | | Free cash flow loss | (17,095) | (23,781) | (48,878) | (84,709) |