Benson Hill reports solid full-year 2023 financial results, strengthens balance sheet

Date:03-15-2024

• The Company fully retired its senior convertible debt in February 2024 after paying down approximately 50 percent in November 2023.

• The Company ended the year with $48.9 million in cash and marketable securities.

• Reported revenues increased 24 percent to $473.3 million.

• Reported gross profit increased $20.1 million to $23.6 million.

• Net loss from continuing operations, net of income taxes, was $111.3 million and $99.7 million for the years ended December 31, 2023, and 2022, respectively. Adjusted EBITDA loss improved more than 40 percent year-over-year. 

• Management is delivering its cost-cutting goals under the expanded Liquidity Improvement Plan and accelerating progress toward an asset-light business model focused on broadacre animal feed markets.

Benson Hill, Inc. (NYSE:BHIL, the ″Company″ or ″Benson Hill″), an ag- tech company unlocking the natural genetic diversity of plants, announced operating and financial results for the year ended December 31, 2023.

″2023 marked a year of significant progress and change for Benson Hill,″ said Deanie Elsner, Chief Executive Officer of Benson Hill. ″We successfully demonstrated our ability to deliver our financial commitments in addition to taking the necessary steps to strengthen our balance sheet. To increase focus on our competitive advantage, we shifted our business model and diversified our portfolio to penetrate new market opportunities in animal feed.″

″Benson Hill’s transformation is well underway and has been accelerated through the divestitures of our soy processing assets, the retirement of our corporate debt and cost reductions. We are now rapidly evolving to an asset-light business model designed to serve broadacre animal feed markets. As we execute on our near-term plans, we remain committed to creating a runway for growth and delivering value for shareholders,″ Elsner added.

Full Year 2023 Results as Compared to the Same Period of 2022

The following financial results exclude the completed divestiture of the Fresh business on June 30, 2023. The impact of open mark-to-market timing differences on the statement of operations and reconciliation of non-GAAP financial measures can be found in the accompanying financial tables.

• Reported revenues were $473.3 million, an increase of $92.1 million, or 24 percent. Proprietary revenues were $110.0 million, an increase of 52 percent, driven by stronger operational performance at the Company’s soybean processing facilities and some proprietary soybean sales directly to third parties. Reported revenues included a $1.5 million gain from open mark-to-market timing differences.

  
  

• Gross profit was $23.6 million, an increase of $20.1 million, or 570 percent, and includes a $0.3 million gain related to open mark-to-market timing differences. Overall profitability increased in dollar and margin percentage due to a combination of operational efficiency gains at the Company’s soybean processing facilities and favorable contributions from partnership and patent sales compared to the prior year.

  
  

• Operating expenses were $128.1 million, a decrease of $0.4 million, or 0.3 percent, which include approximately $23.8 million of non-recurring costs, including an impairment of the carrying value of goodwill of $19.2 million, a gain on the sale of the Seymour, Indiana, facility of $19.0 million, an impairment loss on the Creston, Iowa, facility of $18.5 million and other items. Operating expenses, as adjusted, which exclude these non-recurring items, declined by 18 percent to $104.3 million for the year due to cost reductions realized through the Company’s expanded Liquidity Improvement Plan.

  
  

• Selling, general and administrative expenses were $69.1 million, a decrease of $12.0 million or 15 percent.

  
  

• R&D expenses were $40.3 million, a decrease of $7.2 million or 15 percent.

  
  

• Inclusive of open mark-to-market timing differences, net loss from continuing operations, net of income taxes, was $111.2 million, an increase in loss of $11.5 million or 12 percent. Adjusted EBITDA was a loss of $47.7 million, a decrease in loss of $33.9 million or 42 percent compared to the prior year. The improvement in Adjusted EBITDA loss in 2023 was driven by higher gross profit from operational performance improvements and reductions in operating expenses realized through the Company’s expanded Liquidity Improvement Plan.

  
  

• Cash and marketable securities of $48.7 million from continuing operations were on hand as of December 31, 2023.

Fourth Quarter 2023 Results as Compared to the Same Period of 2022

• Revenues were $116.6 million, an increase of $17.4 million, or 18 percent. The performance was driven by higher sales for both proprietary and non-proprietary soy and yellow pea products combined with favorable contributions from partnership and patent sales compared to the prior period.

  
  

• Gross profit was $7.0 million, an increase in profitability of $6.2 million, and includes an approximately $6.2 million loss due to open mark-to-market timing differences. Gross margins were approximately 11 percent when excluding open mark-to-market timing differences. The increase in gross profit is driven by favorable contributions from partnership and patent sales compared to the prior period.

  
  

• Inclusive of mark-to-market timing differences, net loss from continuing operations, net of income taxes, was $38.0 million, an increase in loss of $7.3 million or 23.7 percent. Adjusted EBITDA was a loss of $6.7 million compared to a loss of $21.8 million in the fourth quarter 2022.

Outlook

With the recent divestitures of the Seymour, Indiana, and Creston, Iowa, facilities, the Company has made significant progress in its evolution to an asset-light business model. In doing so, management expects to see a reduction in the revenue and related costs associated with those soy processing operations.  

The Company is now fully focused on its competitive advantages in differentiated genetics, technology, and research and development to deliver revenues across the value chain by securing licensing agreements and partnerships that are expected to be more profitable and capital efficient.

″Benson Hill finished 2023 on track and delivered on our projected financial commitments for the year,″ said Dean Freeman, Chief Financial Officer of Benson Hill. ″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.″

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