Mar. 30, 2022
Marrone Bio Innovations, Inc. (NASDAQ: MBII), an international leader in sustainable bioprotection and plant health solutions, has provided its financial results for the fourth quarter and full year ended December 31, 2021. Key results include:
Full year revenues rose 15.5%, with a 40.2% increase in the fourth quarter.
Gross profit grew 19.1% and 31.5% for the full year and fourth quarter, respectively, with margins exceeding 59% in both periods.
For the full year, net loss was $16.6 million and Adjusted EBITDA1 loss was $8.7 million, improvements of 17.9% and 21.2%, respectively.
As announced March 16, 2022, Marrone Bio and Bioceres Crop Solutions (NASDAQ: BIOX) have entered into a definitive agreement to combine the companies in an all-stock transaction.
Selected Financial Highlights
|$ in millions||Q4|
|Gross Margin||59.7%||63.7%||-400 bps||61.5%||59.6%||+190 bps|
|Operating Expense Ratio||111.6%||116.6%||-500 bps||96.3%||104.4%||-820 bps|
|Net Income (Loss)||($5.3)||($4.2)||26.2%||($16.6)||($20.2)||(17.9%)|
|Cash Used in Operations||($3.4)||($7.4)||(53.9%)||($10.0)||($16.0)||(37.6%)|
1Adjusted EBITDA is a non-GAAP financial measure and is described in relation to its most directly comparable GAAP measure under “Use of Non-GAAP Financial Information” below.
“We ended 2021 on a positive note, with high demand for our crop protection products ahead of the Northern Hemisphere growing season,” said Chief Executive Officer Kevin Helash. “We delivered solid revenue growth and higher gross profit in both the fourth quarter and full year. These results were in line with our prior projections and set the stage for our future growth.
“Looking forward, we anticipate revenue growth for the first half of 2022 will significantly outpace our rate of growth in the first half of 2021, with sales in the second quarter exceeding those in the first quarter, in line with our typical pattern,” Helash added.
Helash concluded, “On March 16, 2022, we announced our intention to merge with Bioceres. We look forward to completing the transaction in the third quarter of 2022.”
Fourth Quarter 2021 Financial and Operational Summary
Strong demand for the company’s crop protection products for use in specialty crops in the United States — notably Regalia® biofungicide, and Venerate® and Grandevo® bioinsecticides — were the key contributors to the 40.2% increase in 2021 fourth quarter revenues.
Gross profit in the 2021 fourth quarter was $6.5 million, as compared with $4.9 million in the fourth quarter of 2020, a 31.5% improvement. Gross margins of 59.7% were slightly lower than in the same period in 2020 as a function of product mix.
Operating expenses were $12.1 million in the fourth quarter of 2021, as compared with $9.0 million in the fourth quarter of 2020. The 34.2% increase reflected higher legal and consulting expenses, primarily related to merger and acquisition activities, and one-time, upfront payments associated with research and development (R&D) agreements.
The operating expense ratio – a key performance indicator that compares operating expenses to revenues – improved by 500 basis points to 111.6% as sales increased at a higher rate than costs.
The net loss in the fourth quarter was $5.3 million in 2021, as compared with a net loss of $4.2 million in the fourth quarter of 2020. Fourth-quarter Adjusted EBITDA was a loss of $4.0 million in 2021, as compared with $2.2 million in 2020. Both the net loss and Adjusted EBITDA reflected the higher operating expenses in the quarter. Adjusted EBITDA is further described under “Use of Non-GAAP Financial Information” below.
Cash used in operations was $3.4 million, as compared with a use of cash of $7.4 million in the same period in 2020.
Full Year 2021 Financial and Operational Summary
Full year 2021 revenues of $44.3 million were a 15.5% increase from full year 2020 revenues of $38.4 million. The company recorded continued strong sales of seed treatments for the major row crops in the United States and Europe. Sales of bioprotection products in specialty crops expanded, although the pace of sales was slowed by drought conditions early in the year in the western United States.
Gross profit rose 19.1% for the full year, with gross margins up 190 basis points to 61.5% as a result of product mix and manufacturing improvements.
Operating expenses of $42.7 million, a 6.5% increase, were in line with the company’s commitment to maintain spending in line with 2020, plus inflation. In comparison, operating expenses for fiscal year 2020 benefited by $1.4 million from a Paycheck Protection Program (PPP) loan secured to retain employees supporting the essential agricultural industry during the COVID-19 pandemic, which has since been forgiven.
The full year operating expense ratio was 96.3%. This 820 basis point improvement was a function of increased revenues and effective cost management.
The net loss for 2021 was $16.6 million as compared with a net loss of $20.2 million in 2020, an 17.9% improvement. Adjusted EBITDA for the full year in 2021 improved by 21.2% to a loss of $8.7 million as compared with a loss of $11.0 million in 2020. Both metrics benefited from the increases in net sales and gross profit. Adjusted EBITDA is further described under “Use of Non-GAAP Financial Information” below.
Cash used in operations for the full year 2021 was $10 million, as compared with a use of cash of $16 million in 2020. Cash used in operations for the full year 2020 benefited from $1.7 million in proceeds from the PPP loan.
Read more at Marrone Bio Innovations' website.