Benson Hill Announces Preliminary Unaudited 2022 Results and Initial 2023 Guidance
Benson Hill (NYSE: BHIL) reported preliminary, unaudited 2022 financial results amidst strong demand for its proprietary soy products. Consolidated revenues are estimated between
- Expected 2023 consolidated revenues of $390 million to $430 million.
- Projected proprietary revenues of $100 million to $110 million for 2023, indicating strong growth potential.
- Management anticipates continued demand for proprietary soy portfolio, suggesting a positive market outlook.
- Net loss from continuing operations projected at $(125) million to $(135) million for 2023.
- Higher than planned costs of sales in December affecting full-year gross profit.
Management expects continued strong demand in 2023 for its proprietary soy portfolio
Benson Hill Announces Preliminary Unaudited 2022 Results and Initial 2023 Guidance. Management expects continued strong demand in 2023 for its proprietary soy portfolio. (Graphic: Business Wire)
2022 Preliminary Unaudited Results from Continuing Operations1 |
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Reported
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Impact of Open
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Excluding Open
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Consolidated Revenues |
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Proprietary Revenues |
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Consolidated Gross Profit |
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Net Loss from Continuing Operations |
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Adjusted EBITDA3 |
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Cash, |
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The expected financial results include the benefits of favorable soy commodity markets and strong demand for Benson Hill’s proprietary soy portfolio of products in the food ingredients, edible oil and aquaculture markets. However, higher than planned costs of sales related to logistics and operations in December, as well as measurement period adjustments related to purchase price accounting, will impact full-year gross profit from previous expectations.
“Our preliminary 2022 results are indicative of the tremendous progress we have made to advance our strategic objectives and sharpen our focus,” said
2023 Outlook
2023 Preliminary Guidance4 |
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Consolidated Revenues |
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Proprietary Revenues |
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Consolidated Gross Profit |
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Net Loss from Continuing Operations |
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Adjusted EBITDA Loss3 |
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The expected increase in proprietary revenue and consolidated gross profit growth result from anticipated increased availability of proprietary products, greater contribution from partnerships and licensing, and continued strong execution in the closed loop business model. As a result, management expects a higher proportion of the revenue and gross profit mix to come from the proprietary soy portfolio.
Consistent with the Company’s strategic plan, management expects a greater use of free cash flow in 2023 versus the prior year due to the start of a two-year capital investment to produce texturized soy flour and an expected increased use of working capital to support the expansion of proprietary planted acres.
Audited Results and Earnings Call Date
About
Financial Disclosure Advisory
The Company reports its financial results in accordance with
Use of Non-GAAP Financial Measures
In this press release, the Company includes references to non-GAAP performance measures. The Company uses these non-GAAP financial measures to facilitate management’s financial and operational decision-making, including evaluation of the Company’s historical operating results. The Company’s management believes these non-GAAP measures are useful in evaluating the Company’s operating performance and are similar measures reported by publicly listed
Because non-GAAP financial measures exclude the effect of items that will increase or decrease the Company’s reported results of operations, management strongly encourages investors to review the Company’s consolidated financial statements and publicly filed reports in their entirety. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the tables accompanying this release.
Cautionary Note Regarding Forward-Looking Statements
Certain statements in this press release may be considered “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements generally relate to future events or the Company’s future financial or operating performance and may be identified by words such as “may,” “should,” “expect,” “intend,” “will,” “estimate,” “anticipate,” “believe,” “predict,” or similar words. These forward-looking statements are based upon assumptions made by the Company as of the date hereof and are subject to risks, uncertainties, and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. These forward-looking statements include, among other things, statements regarding: the expected timing and anticipated benefits of the divestiture of the Fresh business, including the consummation of the pending transaction pertaining to the Fresh assets remaining to be sold; the expected financial and accounting impacts of the divestiture of the Fresh business; the Company’s preliminary, unaudited, expected full year 2022 consolidated and proprietary revenues, consolidated gross profit, net loss from continuing operations, Adjusted EBITDA, and cash and marketable securities, and its currently expected preliminary guidance regarding certain full year 2023 financial results, including consolidated and proprietary revenues, consolidated gross profit, Adjusted EBITDA and free cash flow use; expectations regarding the sources of expected revenue and gross profit growth, including increased availability of proprietary products, greater anticipated contribution from partnerships and licensing, and continued strong execution in the closed loop business model; expectations regarding revenue and gross profit mix; expectations regarding uses of free cash flow; any financial or other information based upon or otherwise incorporating judgments or estimates relating to future performance, events or expectations; expectations regarding the Company’s hedging and other risk management strategies, including expectations about future sales and purchases that relate to the Company’s mark-to-market adjustments; the Company’s strategies, positioning, resources, capabilities, and expectations for future performance; estimates and forecasts of financial and other performance metrics; projections of market opportunity; the Company’s outlook and financial and other guidance; management’s strategy and plans for growth; and the expected timing of the Company’s release of its audited financial statements for 2022 and its earnings call regarding 2022 financial results. Factors that may cause actual results to differ materially from current expectations include, but are not limited to: risks that the Company will not realize the anticipated benefits of the divestiture of the Fresh business, including risks relating to the failure to satisfy the conditions to the consummation of the pending transaction to sell the remaining assets of the Fresh business, risks that such transaction may not be completed in a timely manner or at all; risks relating to the availability and use of proceeds of the consummated and pending divestitures of the Fresh business, in light of contractual restrictions in the agreements governing the Fresh business divestiture and the Company’s debt facilities, and risks relating to the Company’s expected accounting treatment regarding the Fresh business divestiture; risks associated with the Company’s ability to grow and achieve growth profitably, including continued access to the capital resources necessary for growth; risks relating to the failure to realize the anticipated benefits of our at-the-market facility to sell our Common Stock; risks associated with managing capital resources; risks associated with maintaining relationships with customers and suppliers and developing and maintaining partnering and licensing relationships; risks associated with changing industry conditions and consumer preferences; risks associated with the Company’s ability to generally execute on its business strategy; risks associated with the effects of global and regional economic, agricultural, financial and commodities market, political, social and health conditions; risks associated with the Company’s transition to becoming a public company; the effectiveness of the Company’s risk management strategies; and other risks and uncertainties set forth in the sections entitled “Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements” in our filings with the
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2022 Preliminary, Unaudited, Adjusted EBITDA Non-GAAP Reconciliation |
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(Dollar Amounts in Millions USD) |
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2022 Estimate |
Net loss from continuing operations |
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Interest expense, net |
21 |
Depreciation and amortization |
20 |
Stock-based compensation |
20 |
Other non-recurring costs |
(45) |
Total Adjusted EBITDA |
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The Company defines and calculates Adjusted EBITDA as consolidated net loss from continuing operations before net interest expense, income tax provision, and depreciation and amortization, further adjusted to exclude stock-based compensation, other income and expense, and the impact of significant non-recurring items.
The reconciliation regarding 2022 includes an approximately
Management is presenting the impact of open mark-to-market timing differences to show the underlying operating performance during the reporting period.
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2023 Estimated Adjusted EBITDA Non-GAAP Reconciliation |
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(Dollar Amounts in Millions USD) |
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2023 Estimate |
Net loss from continuing operations1 |
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Interest expense, net |
27 – 29 |
Depreciation and amortization |
21 – 23 |
Stock-based compensation |
14 – 15 |
Total Adjusted EBITDA |
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1 The expected results exclude the Fresh business which was divested in a two-part transaction announced on
2 Management is presenting the impact of mark-to-market timing differences to show the underlying operating performance during the reporting period. Mark-to-market timing differences comprise the estimated net temporary impact resulting from unrealized period-end gains/losses associated with the fair valuation of futures contracts associated with the Company’s committed future operating capacity. The approximate
3 Reconciliations of non-GAAP measures to the most directly comparable GAAP financial measures can be found at the end of the press release.
4 These figures are based on Benson Hill’s preliminary guidance for 2023 and exclude any future impacts from mark-to-market timings differences.
View source version on businesswire.com: https://www.businesswire.com/news/home/20230202005831/en/
Investor Contact
314-714-6313
rmella@bensonhill.com
Media Contact
636-359-0797
cdixon@bensonhill.com
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