Mar 30, 2018Marrone Bio reports record full year 2017 financial results
Davis, California-based Marrone Bio Innovations, Inc. (“MBI” or the “Company”) (NASDAQ:MBII), a provider of bio-based pest management and plant health products for the agriculture, turf and ornamental and water treatment markets, has provided its financial results for the fourth quarter and full year ended Dec. 31, 2017.
- GAAP revenues grew 29.4 percent to $18.2 million in 2017, compared to $14.0 million in 2016. GAAP revenues grew 23.3 percent to $3.3 million in the fourth quarter of 2017, compared to $2.7 million in the fourth quarter of 2016.
- Product shipments grew 16.2 percent to $19.0 million for 2017, compared to $16.4 million in 2016. Product shipments were $3.8 million in the fourth quarter of 2017, compared to $5.2 million in the fourth quarter of 2016.
- Gross margin increased significantly to 42.0 percent in 2017, compared to 32.2 percent in 2016. Gross margin increased to 46.0 percent in the fourth quarter of 2017, compared to 39.0 percent in the fourth quarter of 2016.
- In February 2018, the Company completed a comprehensive series of private placement financing and debt restructuring transactions, which generated approximately $27.3 million of net proceeds and converted $45.0 million of prior debt into equity.
“We begin 2018 healthier than ever,” said Pam Marrone, CEO of MBI. “From a capital standpoint, we have eliminated the vast majority of our debt, and we now have cash to fund operations, service our remaining indebtedness and support future development goals. The entire company is focused on accelerating revenue growth and increasing gross margins through process and scale improvements, while managing our working capital. We launched two more products in 2017 and now have seven products from six new active ingredients – unparalleled productivity.
“We were able to grow GAAP revenues almost 30 percent to a record $18.2 million in 2017, while significantly increasing gross margins to 42.0 percent. This is despite unfavorable weather in key growing regions. We continued to grow our international business by signing four new international distribution agreements to diversify geographically, which should help smooth out lumpy quarters. Our 2017 field data from around the globe showed impressive results in key crops like bananas and coffee and in a key market, Brazil.
“We launched two new commercial products in 2017: Haven, a sun protectant, and Stargus, a biofungicide, addressing downy mildew and white mold, which complements our existing biofungicide Regalia. Both new products have performed exceptionally well in field trials and we look forward to expanding them across the NAFTA region. We believe Stargus and its row crop counterpart, Amplitude, open up important new market segments, such as eastern grapes and succulent and dry beans, peas and lentils. An additional significant 2017 milestone was first sales of another one of our active ingredients through our valued partner, Albaugh, LLC, in the fast growing row crop seed treatment market.”
Marrone concluded: “Our recent financing and comprehensive debt restructuring transaction was truly transformative, providing us the tools we need to aggressively execute upon our business plan. We are concentrating on enhancing our sales and marketing organization and capabilities, increasing product awareness and educating growers.”
Recent Operational Highlights
- Launched two new Active Ingredients: Haven sun protectant, and Stargus biofungicide and our first turf product, Zelto bioinsecticide/nematicide.
- Completed the development of MBI-014 (formerly 010), an organic bioherbicide, with EPA submission planned in the near-term.
- Signed international distribution agreements for Central America, Morocco & North Africa, Kenya, Mexico and the Philippines.
- Finalized a distribution agreement with a large water treatment company, Solenis LLC, for Zequanox.
- Implemented a strategy and focus to address grower demand of MBI products within the cannabis market through the creation of smaller pack sizes, hiring a cannabis segment sales specialist and utilizing Amazon as a direct-to-consumer sales channel.
- Albaugh, LLC, a major agrichemical company, had a successful launch season with their BIOST seed treatment containing a MBI microorganism, showing yield increases over the competitive standards. Seed treatment for row crops is a growth driver for MBI.
- As part of MBI’s collaboration with Evogene, transgenic plants carrying genes from MBI’s novel insecticidal bacteria were developed and showed promising efficacy (100 percent kill) against pest caterpillars.
- Realized exceptional results from field trials in several countries around the globe, such as key banana, citrus and coffee diseases and pests. Particularly noteworthy are results from Brazil, paving the way for registration of Grandevo, Venerate and Majestene.