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Source: Marrone Bio Innovations news release

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Davis, CA - Marrone Bio Innovations, Inc. (NASDAQ: MBII) ("Marrone Bio" or the "Company"), an international leader in providing growers with sustainable bioprotection and plant health solutions to support global agricultural needs, has provided its financial results for the second quarter ended June 30, 2020.

Second Quarter 2020 Financial Summary
Revenues in the second quarter of 2020 increased 74% to an all-time record of $12.2 million, and the company's eighth consecutive quarter of year-over-year growth. The increase was driven by global sales in row crops, including Pro Farm's UBP and Foramin seed treatments. Sales in the specialty crop markets also contributed to the improvement, particularly from the family of Regalia fungicides and Venerate and Grandevo insecticides.

Gross margins in the second quarter of 2020 were 60.6%, the seventh consecutive quarter in which gross margins exceeded 50%. The margin improvement reflected the mix of high-margin foliar and seed treatment products sold in the second quarter. Second quarter 2020 gross profit of $7.4 million was nearly double gross profit of the same period in 2019.

Operating expenses in the second quarter of 2020 decreased 8% to $9.4 million, compared with $10.2 million in the comparable period in 2019. Operating expenses 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. Spending in the quarter also included the addition of operating expenses from the 2019 acquisition of Pro Farm.

The operating expense ratio - comparing operating expenses to revenues - was 77% in the second quarter of 2020, as compared with 146% in the second quarter of 2019. The ratio improvement quarter-to-quarter reflected significant revenue growth coupled with cost savings efforts and the benefit of the PPP loan.

Net income (loss) in the second quarter of 2020 decreased 58% to a loss of $2.9 million, as compared with a net loss of $6.8 million in the second quarter of 2019. The net loss in the quarter included non-cash adjustments for warrant exercises, stock compensation and the amortization of intangibles related to the Pro Farm acquisition.

Adjusted EBITDA improved by 61%, with a loss of $1.5 million in the second quarter of 2020 as compared with a loss of $3.8 million in the same period last year. Record revenues and gross profit, plus lower operating expenses, drove the improvement in both the net loss and Adjusted EBITDA. Adjusted EBITDA is further described under "Use of Non-GAAP Financial Information" below.

Cash used in operations in the second quarter was $1.5 million, a 52% decline from $3 million in the same period in 2019. Cash used in operations in the quarter included $1.7 million in proceeds from the PPP loan.

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