Marrone Bio Innovations Inc. (MBII)

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Marrone Bio Innovations, Inc. Reports First-Quarter 2019 Financial Results


First-Quarter 2019 Revenues More Than Doubled to $8.7 Million, with Gross Margins of 57 Percent

DAVIS, Calif., May 09, 2019 (GLOBE NEWSWIRE) -- Marrone Bio Innovations, Inc. (MBII), an international leader in sustainable biopesticide and plant health solutions, has provided its financial results for the first quarter ended March 31, 2019.

Selected Operating and Financial Highlights

$ in millions Q1
2019 Q1
2018 % Increase
(Decrease)
Revenues $8.7 $4.3 102%
Gross Profit $5.0 $2.1 140%
Gross Margin 57.2% 48.1% +907 bps
Operating Expenses $8.6 $7.6 14%
Loss from Operations $(3.6) $(5.5) (34%)
Net Loss $(3.9) $(5.3) (25%)
Cash Used in Operations $7.7 $9.7 (22%)
Q1 2019 Financial Highlights

Revenues in the first quarter of 2019 improved by 102 percent to $8.7 million, compared with $4.3 million in the first quarter of 2018. The record quarterly sales were led by continued adoption of the Venerate family of products, both for foliar applications in vegetables and for soil- and seed-applied applications in row crops. Revenues also benefited from placement of Grandevo for in-season insect control in fruits and vegetables, as well as expanded market reach for Regalia to treat fungal diseases in trees, nuts and vines.
Gross margins reached 57.2 percent, benefiting from the higher net revenue and higher mix of the Venerate family of products and better manufacturing efficiencies.
The 14 percent increase in operating expenses reflected planned investments in the commercial organization and programs, and in field trials for key research and development projects, including a new proprietary biological herbicide. This increase was offset somewhat by a decrease in accounting and other professional consulting fees in the first quarter of 2019.
Net loss in the first quarter of 2019 was $3.9 million, or $(0.04) per share, compared with a net loss of $5.3 million, or $(0.07) per share, in the first quarter of 2018.
On a comparative basis, the first quarter of 2018 included a non-recurring net benefit of $1.8 million to other income related to the Company’s comprehensive financing and debt restructuring transactions. Additionally, the diluted weighted-average shares outstanding in the first quarter of 2019 were 110.7 million shares, compared with 74.6 million shares in the first quarter of 2018.
Cash used in operations for the first quarter of 2019 was $7.7 million, compared with cash used in operations of $9.7 million in the first quarter of 2018. The use of operating cash in the first quarter of 2019 reflected greater working capital requirements related to increased sales.
Management Commentary
“We have put a solid foundation in place – technically, commercially and financially – to drive revenue growth this year and set the stage for longer term growth. Our first-quarter results are a solid start to what we believe can be a transformative year for Marrone Bio,” said Dr. Pam Marrone, chief executive officer of Marrone Bio Innovations.

“As we broaden our customer outreach and distribution network, we expand our ability to sell our products for multiple uses within a given crop,” she added. “We have the technical flexibility to offer our products in combination with complementary traditional agricultural solutions or with other compatible biocontrol or biostimulant offerings, thus enhancing our revenue-generating capabilities.”

Operational Highlights

Regalia’s label in Brazil was expanded to control fungal and bacterial diseases on lettuces, carrots, papayas, mangoes, watermelons, sweet peppers and grapes.
Regalia Maxx biofungicide was approved for use on cannabis in Canada.
Distribution agreements for Regalia Maxx were reached with Plant Products, a full-service greenhouse supplier, for eastern and central Canada; and with TerraLink, a leading supplier of crop input products, for western Canada.
Venerate CG label was approved by the California Department of Pesticide Regulation (DPR) for use on cannabis.