Benson Hill(BHIL) - 2023 Q4 - Annual Results

Financial Highlights and Business Overview Benson Hill achieved financial discipline and strategic transformation in 2023, marked by strong revenue and gross profit growth, and a shift towards an asset-light model CEO Statement & Strategic Shift Benson Hill demonstrated financial discipline and strengthened its balance sheet in 2023, accelerating its asset-light model transition through divestitures and debt retirement - CEO Deanie Elsner highlighted 2023 as a year of significant progress, demonstrating the ability to meet financial commitments and strengthen the balance sheet[9] - The company has shifted its business model to focus on its competitive advantages in differentiated genetics, technology, and R&D, aiming to secure licensing and partnership agreements[12] - The business transformation is being accelerated through the divestiture of soy processing assets and the retirement of corporate debt, enabling a rapid evolution to an asset-light model for animal feed markets[47] - The company fully retired its senior convertible debt in February 2024 after a significant paydown in November 2023[45] Full Year 2023 Performance Benson Hill reported a 24% revenue increase to $473.3 million and a 570% gross profit rise to $23.6 million in FY2023, significantly improving Adjusted EBITDA loss Full Year 2023 vs 2022 Key Financials | Metric | FY 2023 | FY 2022 | Change | | :--- | :--- | :--- | :--- | | Revenues | $473.3M | $381.2M | +24% | | Gross Profit | $23.6M | $3.5M | +570% | | Net Loss from Continuing Operations | ($111.3M) | ($99.7M) | +11.6% | | Adjusted EBITDA | ($47.7M) | ($81.6M) | +41.5% Improvement | - Proprietary revenues increased by 52% to $110.0 million, driven by stronger operational performance at soybean processing facilities and direct sales to third parties[62] - Operating expenses were $128.1 million, nearly flat year-over-year, however, adjusted operating expenses declined by 18% to $104.3 million after excluding non-recurring items like impairments and gains on sales[48][63] - The company ended the year with $48.9 million in cash and marketable securities[22] Fourth Quarter 2023 Performance Q4 2023 revenues increased 18% to $116.6 million, with gross profit rising to $7.0 million and Adjusted EBITDA loss significantly narrowing to $6.7 million Q4 2023 vs Q4 2022 Key Financials | Metric | Q4 2023 | Q4 2022 | Change | | :--- | :--- | :--- | :--- | | Revenues | $116.6M | $99.2M | +18% | | Gross Profit | $7.0M | $0.8M | +786% | | Net Loss from Continuing Operations | ($38.0M) | ($30.8M) | +23.7% | | Adjusted EBITDA | ($6.7M) | ($21.8M) | +69.2% Improvement | - The increase in gross profit was driven by favorable contributions from partnership and patent sales compared to the prior period[11] Outlook and Business Transition The company is actively transitioning to an asset-light business model, marked by recent divestitures and expected reductions in revenue and costs Outlook and Business Transition Benson Hill is transitioning to an asset-light model through facility divestitures, expecting reduced revenues and costs, with 2024 designated as a year of strategic execution - With the divestiture of the Seymour and Creston facilities, the company has made significant progress in its evolution to an asset-light business model[65] - Management expects a reduction in revenue and related costs associated with the divested soy processing operations[65] - The Chief Financial Officer stated, "2024 will be a year of transition, we believe the steps we have taken to reduce costs and pay down debt will position the Company to successfully execute on its strategic plans in 2024"[51] Consolidated Financial Statements This section presents the company's detailed financial performance and position, including statements of operations, balance sheets, cash flows, and comprehensive loss Consolidated Statements of Operations For FY2023, revenues reached $473.3 million with gross profit at $23.6 million, resulting in a net loss from continuing operations of $111.2 million, or ($0.59) per share Consolidated Statement of Operations (Year Ended Dec 31) | (In Thousands USD) | 2023 | 2022 | | :--- | :--- | :--- | | Revenues | 473,336 | 381,233 | | Gross Profit | 23,626 | 3,527 | | Total Operating Expenses | 128,110 | 128,534 | | Loss from Operations | (104,484) | (125,007) | | Net Loss from Continuing Operations | (111,247) | (99,700) | | Net Loss | (115,312) | (127,905) | | Basic and Diluted Net Loss per Share | ($0.61) | ($0.71) | Consolidated Balance Sheets As of December 31, 2023, total assets decreased to $274.8 million and total liabilities to $188.7 million, leading to a reduction in total stockholders' equity to $86.0 million Consolidated Balance Sheet Highlights (As of Dec 31) | (In Thousands USD) | 2023 | 2022 | | :--- | :--- | :--- | | Cash and marketable securities | 48,680 | 157,174 | | Total Current Assets | 118,918 | 300,728 | | Total Assets | 274,764 | 500,920 | | Total Current Liabilities | 101,923 | 92,517 | | Total Liabilities | 188,721 | 307,018 | | Total Stockholders' Equity | 86,043 | 193,902 | Consolidated Statements of Cash Flows In 2023, net cash used in operating activities improved to $73.1 million, while investing activities provided $118.0 million, resulting in a net cash decrease of $27.2 million Consolidated Cash Flows (Year Ended Dec 31) | (In Thousands USD) | 2023 | 2022 | | :--- | :--- | :--- | | Net cash used in operating activities | (73,131) | (93,396) | | Net cash (used in) provided by investing activities | 118,031 | (40,246) | | Net cash (used in) provided by financing activities | (72,140) | 98,009 | | Net decrease in cash | (27,240) | (35,642) | | Cash, cash equivalents and restricted cash, end of year | 16,081 | 43,321 | Consolidated Statements of Comprehensive Loss The total comprehensive loss for FY2023 was $109.9 million, comprising a net loss of $115.3 million partially offset by $5.4 million in other comprehensive income Consolidated Comprehensive Loss (Year Ended Dec 31) | (In Thousands USD) | 2023 | 2022 | | :--- | :--- | :--- | | Net loss attributable to common stockholders | (115,312) | (127,905) | | Total other comprehensive income (loss) | 5,426 | (5,992) | | Total comprehensive loss | (109,886) | (133,897) | Non-GAAP Financial Measures and Reconciliations This section reconciles non-GAAP financial measures, including Adjusted EBITDA, Free Cash Flow, and Adjusted Operating Expenses, to their most directly comparable GAAP measures Reconciliation of Net Loss to Adjusted EBITDA The reconciliation of net loss from continuing operations to Adjusted EBITDA shows a loss of $47.7 million for FY2023, a significant improvement from the prior year Adjusted EBITDA Reconciliation (Full Year) | (in thousands) | Year Ended Dec 31, 2023 | Year Ended Dec 31, 2022 | | :--- | :--- | :--- | | Net loss from continuing operations | (111,247) | (99,700) | | Interest expense, net | 35,064 | 21,444 | | Depreciation and amortization | 21,610 | 20,513 | | Impairment of goodwill | 19,226 | — | | Gain on sale of Seymour facility | (18,970) | — | | Impairment loss on Creston facility | 18,521 | — | | Total Adjusted EBITDA | (47,715) | (81,645) | Reconciliation to Free Cash Flow Free cash flow loss, a non-GAAP measure, improved to $87.5 million in FY2023, reflecting better operating cash flow and reduced capital expenditures Free Cash Flow Reconciliation (Full Year) | (in thousands) | Year Ended Dec 31, 2023 | Year Ended Dec 31, 2022 | | :--- | :--- | :--- | | Net cash used in operating activities | (75,693) | (93,474) | | Payments for acquisitions of property and equipment | (11,760) | (6,983) | | Free cash flow loss | (87,453) | (100,457) | Reconciliation of Adjusted Operating Expenses Adjusted operating expenses for 2023 were $104.3 million, a decrease from $127.9 million in 2022, after excluding significant non-recurring items Adjusted Operating Expenses Reconciliation (Full Year) | (in thousands) | Year Ended Dec 31, 2023 | Year Ended Dec 31, 2022 | | :--- | :--- | :--- | | Operating expenses | 128,110 | 128,534 | | Impairment of goodwill | (19,226) | — | | Gain on sale of Seymour facility | 18,970 | — | | Impairment loss on Creston facility | (18,521) | — | | Severance | (4,019) | (676) | | Operating expenses, as adjusted | 104,276 | 127,858 |