S&W Seed pany(US:SANW)2024-11-02 12:16Financial Data and Key Metrics Changes - Total revenue for fiscal 2024 was $60.4 million, down from $73.5 million in the previous year, reflecting a decrease of approximately 17.3% [41] - Gross profit margin improved to 26.2% from 19.8% in fiscal 2023, an increase of 640 basis points [48] - Adjusted EBITDA for 2024 was a negative $8.5 million, an improvement from negative $9.3 million in fiscal 2023 [54] - GAAP net loss for fiscal 2024 was $30.1 million, compared to a net income of $14.49 million in the previous year [55] Business Line Data and Key Metrics Changes - Sorghum sales increased to $20.3 million from $18.5 million, with Double Team contributing $10.9 million, up 68% from $6.5 million [41] - Americas forage sales were $9.9 million, down from $10.8 million last year [42] - International forage sales decreased to $29.1 million from $43.6 million, a decline of $14.5 million [42] Market Data and Key Metrics Changes - In the U.S., Double Team sorghum revenue increased by $4.4 million, offset by a $2.6 million decrease in non-traded sorghum sales [43] - Internationally, there was a $11.4 million decrease in non-dormant alfalfa sales in the MENA region due to ongoing conflicts and import restrictions [44] - Australian domestic market sales decreased by $2.8 million across all crop segments [45] Company Strategy and Development Direction - The company aims to enhance its market share in sorghum technology, expecting Double Team to be on 13% to 15% of U.S. sorghum acres in the upcoming year [15][77] - A pilot program with licensees has been launched to increase market penetration through a royalty model [19] - The company is focused on launching new traits, including the second-generation Double Team trait and Prussic Acid Free trait, to expand its product offerings [26][27] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in international operations, particularly in Australia, leading to voluntary administration [10][36] - The company remains optimistic about the growth of its Americas business and the continued adoption of Double Team technology [63][64] - A detailed outlook for operations is expected to be provided in mid-November 2024 following the conclusion of the voluntary administration process [58] Other Important Information - The company is working with over 15 independent companies in the U.S. to promote its sorghum traits [18] - Significant progress has been made in streamlining operations and reducing inventory by over 30% year-over-year [23] - The company has obtained waivers from lenders regarding cross-default provisions during the voluntary administration process [61] Q&A Session Summary Question: Can you break down the EBITDA loss embedded within Australia? - Management indicated that the details would be available in the 10-K filing [67] Question: What is the maximum liability associated with Australia once the VA process is completed? - Management confirmed that the maximum liability is A$15 million (approximately US$10 million) and discussions are ongoing with creditors [70][72] Question: What is the high-level outlook for the Americas given the lack of cash flows from VBO and the wheat JV? - Management stated that they expect continued growth in the Double Team platform and are in discussions with a new lender, indicating funding is not a concern [74][76]