BYND) (“Beyond Meat” or “the Firm”), a first-rate in plant-primarily primarily based meat, as of late reported monetary outcomes for its 2d quarter and 6 months ended June 29, 2019.” information-reactid=”12″ form=”text”>EL SEGUNDO, Calif., July 29, 2019 (GLOBE NEWSWIRE) — Beyond Meat, Inc. (BYND) (“Beyond Meat” or “the Firm”), a first-rate in plant-primarily primarily based meat, as of late reported monetary outcomes for its 2d quarter and 6 months ended June 29, 2019.
Gaze “Non-GAAP Financial Measures” below for how Beyond Meat defines Adjusted EBITDA and the monetary desk that accompanies this beginning for a reconciliation of this measure to the closest related GAAP measure.
“We’re very cosy with our 2d quarter outcomes which replicate endured energy correct by device of our change as evidenced by unique foodservice partnerships, expanded distribution in home retail channels, and accelerating growth in our international markets. We converse our sure momentum continues to show mainstream shoppers’ rising need for plant-primarily primarily based meat products every domestically and in one other country,” acknowledged Ethan Brown, Beyond Meat’s President and Chief Govt Officer. “Searching forward, we are able to continue to prioritize efforts to magnify our stamp awareness, lengthen our distribution channels, beginning unique innovative products, and make investments in our infrastructure and interior capabilities in converse to bring in opposition to the strong question we’re seeing correct by device of our change.”
Obtain revenues elevated 287% to $Sixty seven.three million in the 2d quarter of 2019 when in contrast to $17.4 million in the 2d quarter of 2018. Growth in assemble revenues in the 2d quarter of 2019 became primarily as a consequence of an magnify in gross sales volumes of products in our unique platform correct by device of every our retail and restaurant and foodservice channels, driven by growth in the preference of retail and foodservice points of distribution, collectively with unique strategic customers, international customers, and better question from our novel customers.
| Three Months Ended | Alternate | Six Months Ended | Alternate | |||||||||||||||||||||||||||
| (in thousands) | June 29, 2019 |
June 30, 2018 |
Amount | % | June 29, 2019 |
June 30, 2018 |
Amount | % | ||||||||||||||||||||||
| Obtain revenues: | ||||||||||||||||||||||||||||||
| Corrupt Recent Platform | $ | Sixty seven,722 | $ | 15,119 | $ | fifty two,603 | 347.9 | % | $ | 106,528 | $ | 24,715 | $ | eighty one,813 | 331.0 | % | ||||||||||||||
| Corrupt Frozen Platform | 5,639 | 4,506 | 1,133 | 25.1 | % | 10,151 | 9,254 | 897 | 9.7 | % | ||||||||||||||||||||
| Less: Reductions | (6,110 | ) | (2,258 | ) | (three,852 | ) | a hundred and seventy.6 | % | (9,222 | ) | (three,826 | ) | (5,396 | ) | 141.0 | % | ||||||||||||||
| Obtain revenues | $ | Sixty seven,251 | $ | 17,367 | $ | forty nine,884 | 287.2 | % | $ | 107,457 | $ | 30,143 | $ | seventy seven,314 | 256.5 | % | ||||||||||||||
| Three Months Ended | Alternate | Six Months Ended | Alternate | |||||||||||||||||||||||||||
| (in thousands) | June 29, 2019 |
June 30, 2018 |
Amount | % | June 29, 2019 |
June 30, 2018 |
Amount | % | ||||||||||||||||||||||
| Obtain revenues: | ||||||||||||||||||||||||||||||
| Retail | $ | 34,120 | $ | Eleven,684 | $ | 22,436 | 192.0 | % | $ | Fifty three,699 | $ | 20,972 | $ | 32,727 | 156.1 | % | ||||||||||||||
| Restaurant and Foodservice | 33,131 | 5,683 | 27,448 | 483.0 | % | Fifty three,758 | 9,171 | Forty 4,587 | 486.2 | % | ||||||||||||||||||||
| Obtain revenues | $ | Sixty seven,251 | $ | 17,367 | $ | forty nine,884 | 287.2 | % | $ | 107,457 | $ | 30,143 | $ | seventy seven,314 | 256.5 | % | ||||||||||||||
Corrupt profit became $22.7 million, or 33.8% as a percentage of assemble revenues, in the 2d quarter of 2019, when in contrast to $2.6 million, or 15.0% as a percentage of assemble revenues, in the prior-300 and sixty five days length. The magnify in sinister profit and sinister margin became primarily as a consequence of an magnify in the amount of products sold, ensuing in operating leverage and production effectivity enhancements. A greater share of sinister revenues from the Firm’s unique platform moreover contributed to the enchancment in sinister margin.
Earnings from operations in the 2d quarter of 2019 became $2.2 million when in contrast to loss from operations of $7.three million in the 2d quarter of the prior 300 and sixty five days. This enchancment became driven entirely by the 300 and sixty five days-over-300 and sixty five days magnify in assemble revenues and the ensuing magnify in sinister profit, partially offset by greater operating charges primarily as a consequence of greater absolute costs to toughen the Firm’s expanded manufacturing and supply chain operations, greater administrative costs related with being a public firm, and endured investment in innovation and marketing capabilities.
Obtain loss became $9.4 million in the 2d quarter of 2019 when in contrast to a assemble loss of $7.4 million in the prior-300 and sixty five days length. The expanded assemble loss became primarily the tip consequence of $Eleven.7 million in noncash expense related with the remeasurement of warrant liability in connection with our preliminary public offering in Might well simply 2019.
Adjusted EBITDA became $6.9 million, or 10.2% as a percentage of assemble revenues, in the 2d quarter of 2019 when in contrast to an Adjusted EBITDA loss of $5.6 million in the 2d quarter of 2018. Adjusted EBITDA is a non-GAAP monetary measure outlined beneath “Non-GAAP Financial Measures,” and is reconciled to assemble loss, its closest related GAAP measure, on the tip of this beginning.
Chief Financial Officer and Treasurer, Imprint Nelson commented, “We’re cosy with the sure stage of Adjusted EBITDA we executed in the 2d quarter. The early benefits we’re seeing on rate productiveness correct by device of our supply chain and manufacturing community, on the side of stable question by device of our buyer partnerships, beget helped bring these stable sinister margin and operating margin outcomes.”
The Firm’s cash and cash equivalents steadiness became $277.0 million as of June 29, 2019 and total excellent debt became $30.5 million. Obtain cash used in operating actions became $22.4 million for the six months ended June 29, 2019, when in contrast to $12.7 million for the prior-300 and sixty five days length. Capital expenditures totaled $7.5 million for the six months ended June 29, 2019 when in contrast to $10.0 million for the prior-300 and sixty five days length.
For the total 300 and sixty five days 2019, the Firm is elevating its steerage and now expects the following:
- Obtain revenues to exceed $240 million, an magnify of greater than a hundred and seventy% when in contrast to 2018, up previously from its prior expectation of assemble revenues to exceed $210 million; and
- Adjusted EBITDA to be certain when in contrast to prior expectations of wreck-even Adjusted EBITDA.
The Firm does now not present steerage for assemble loss, the most straight related GAAP measure, and equally can’t present a reconciliation between its forecasted Adjusted EBITDA and assemble loss metrics without unreasonable effort as a consequence of the unavailability of neatly-behaved estimates for sure gadgets. These items are now not within the Firm’s management and could perchance well simply vary a glorious deal between periods and could perchance perchance a glorious deal impact future monetary outcomes.
The Firm will host a convention name and webcast with the govt. management group of workers to discuss these outcomes with extra feedback and predominant points as of late at 4:30 p.m. Jap, 1:30 p.m. Pacific. The convention name webcast will be accessible dwell over the Recordsdata superhighway by device of the “Merchants” piece of the Firm’s web sites at www.beyondmeat.com. To take half on the dwell name, dial 866-221-1171 from the U.S. and 270-215-9602 internationally. A phone replay will be accessible approximately two hours after the name concludes by device of Monday, August 12, 2019, by dialing 855-859-2056 from the U.S., or 404-537-3406 from international places, and entering confirmation code 6866428.
Beyond Meat is one in every of the quickest rising food companies in america, offering a portfolio of innovative plant-primarily primarily based meats. Founded in 2009, Beyond Meat has a mission of constructing meat straight from vegetation, an innovation that enables shoppers to abilities the model, texture and diverse sensory attributes of standard animal-primarily primarily based meat products whereas taking half in the nutritional and environmental benefits of attractive its plant-primarily primarily based meat products. Beyond Meat’s stamp commitment, “Like What You Love,” represents a stable perception that by attractive its portfolio of plant-primarily primarily based meats, shoppers can abilities more, now not much less, of their current meals, and by doing so, help address concerns related to human health, climate change, resource conservation and animal welfare. Beyond Meat’s portfolio of unique and frozen plant-primarily primarily based proteins are for the time being sold at approximately Fifty three,000 retail and foodservice shops worldwide.
Obvious statements in this beginning characterize “forward-taking a stare statements.” These statements are primarily primarily based on management’s novel opinions, expectations, beliefs, plans, targets, assumptions or projections in relation to future occasions or future outcomes. These forward-taking a stare statements are finest predictions, now not historic truth, and include sure risks and uncertainties, as nicely as assumptions. Precise outcomes, stages of exercise, performance, achievements and occasions could perchance perchance vary materially from those acknowledged, anticipated or implied by such forward-taking a stare statements. Whereas Beyond Meat believes that its assumptions are life like, it’s extremely subtle to foretell the impact of acknowledged elements, and, no doubt, it is very now not going to dwell up for all elements that would beget an impact on true outcomes. There are reasonably just a few risks and uncertainties that would cause true outcomes to change materially from forward-taking a stare statements made herein collectively with, most prominently, the dangers discussed beneath the heading “Threat Components” in the Firm’s Originate 10-Q for the quarter ended June 29, 2019 filed with the Securities and Alternate Commission (“SEC”) on July 29, 2019, as nicely as assorted elements described once quickly in the Firm’s filings with the SEC. Such forward-taking a stare statements are made finest as of the date of this beginning. Beyond Meat undertakes no responsibility to publicly update or revise any forward-taking a stare statement as a consequence of newest knowledge, future occasions or in any other case, excluding as in any other case required by regulations. If we fabricate update loads of forward-taking a stare statements, no inference desires to be made that we are able to assemble extra updates with appreciate to those or assorted forward-taking a stare statements.
Allison Aronoff858-735-7344
aaronoff@beyondmeat.com” information-reactid=”Fifty three” form=”text”>Media:
Allison Aronoff
858-735-7344
aaronoff@beyondmeat.com
| BEYOND MEAT, INC.
Condensed Statements of Operations(In thousands, excluding allotment and per allotment information)(unaudited) |
||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||
| June 29, 2019 |
June 30, 2018 |
June 29, 2019 |
June 30, 2018 |
|||||||||||||
| Obtain revenues | $ | Sixty seven,251 | $ | 17,367 | $ | 107,457 | $ | 30,143 | ||||||||
| Worth of goods sold | Forty 4,510 | 14,755 | Seventy three,945 | 25,474 | ||||||||||||
| Corrupt profit | 22,741 | 2,612 | 33,512 | 4,669 | ||||||||||||
| Analysis and fashion charges | 4,212 | 2,497 | 8,710 | 4,102 | ||||||||||||
| Selling, classic and administrative charges | 15,515 | 7,043 | 26,692 | 12,780 | ||||||||||||
| Restructuring charges | 847 | 348 | 1,241 | 642 | ||||||||||||
| Total operating charges | 20,574 | 9,888 | 36,643 | 17,524 | ||||||||||||
| Earnings (loss) from operations | 2,167 | (7,276 | ) | (three,131 | ) | (12,855 | ) | |||||||||
| Other expense, assemble: | ||||||||||||||||
| Pastime expense | (741 | ) | (28 | ) | (1,474 | ) | (75 | ) | ||||||||
| Remeasurement of warrant liability | (Eleven,744 | ) | (130 | ) | (12,503 | ) | (259 | ) | ||||||||
| Other profits, assemble | 898 | 38 | 1,039 | 97 | ||||||||||||
| Total assorted expense, assemble | (Eleven,587 | ) | (120 | ) | (12,938 | ) | (237 | ) | ||||||||
| Loss before taxes | (9,420 | ) | (7,396 | ) | (sixteen,069 | ) | (Thirteen,092 | ) | ||||||||
| Earnings tax expense | 21 | — | 21 | — | ||||||||||||
| Obtain loss | $ | (9,441 | ) | $ | (7,396 | ) | $ | (sixteen,090 | ) | $ | (Thirteen,092 | ) | ||||
| Obtain loss per classic allotment—classic and diluted | $ | (0.24 | ) | $ | (1.22 | ) | $ | (0.sixty nine | ) | $ | (2.21 | ) | ||||
| Weighted life like classic shares excellent—classic and diluted | 39,081,359 | 6,072,319 | 23,206,203 | 5,933,806 | ||||||||||||
| BEYOND MEAT, INC.
Condensed Balance Sheets(In thousands, excluding allotment and per allotment information)(unaudited) |
|||||||
| June 29, 2019 |
December 31, 2018 |
||||||
| Sources | |||||||
| Recent resources: | |||||||
| Cash and cash equivalents | $ | 276,987 | $ | 54,271 | |||
| Accounts receivable | 34,388 | 12,626 | |||||
| Inventory | 42,695 | 30,257 | |||||
| Prepaid charges and diverse novel resources | 7,726 | 5,672 | |||||
| Total novel resources | 361,796 | 102,826 | |||||
| Property, plant, and equipment, assemble | 34,473 | 30,527 | |||||
| Other non-novel resources, assemble | 792 | 396 | |||||
| Total resources | $ | 397,061 | $ | 133,749 | |||
| Liabilities, Convertible Most neatly-preferred Stock and Stockholders’ Equity (Deficit): | |||||||
| Recent liabilities: | |||||||
| Accounts payable | $ | 27,383 | $ | 17,247 | |||
| Wages payable | 1,208 | 1,255 | |||||
| Gathered bonus | 2,157 | 2,312 | |||||
| Gathered charges and diverse novel liabilities | three,622 | 2,391 | |||||
| Fast-term borrowings beneath revolving credit ranking line | 6,000 | — | |||||
| Fast-term capital hire liabilities | 33 | Forty 4 | |||||
| Stock warrant liability | — | 1,918 | |||||
| Total novel liabilities | $ | Forty,403 | $ | 25,167 | |||
| Prolonged-term liabilities: | |||||||
| Revolving credit ranking line | $ | — | $ | 6,000 | |||
| Prolonged-term piece of bank term mortgage, assemble | 19,543 | 19,388 | |||||
| Equipment mortgage, assemble | 4,924 | 5,000 | |||||
| Capital hire duties and diverse prolonged-term liabilities | 406 | 404 | |||||
| Total prolonged-term liabilities | $ | 24,873 | $ | 30,792 | |||
| Commitments and Contingencies | |||||||
| Convertible preferred stock | $ | — | $ | 199,540 | |||
| Stockholders’ equity (deficit): | |||||||
| Most neatly-preferred stock, par mark $0.0001 per allotment—500,000 shares licensed, none issued and excellent | — | — | |||||
| Odd stock, par mark $0.0001 per allotment—500,000,000 shares and fifty eight,669,600 shares licensed at June 29, 2019 and December 31, 2018, respectively; 60,167,521 and 6,951,350 shares issued and excellent at June 29, 2019 and December 31, 2018, respectively | 6 | 1 | |||||
| Extra paid-in capital | 477,541 | 7,921 | |||||
| Gathered deficit | (a hundred forty 5,762 | ) | (129,672 | ) | |||
| Total stockholders’ equity (deficit) | $ | 331,785 | $ | (121,750 | ) | ||
| Total liabilities, convertible preferred stock and stockholders’ equity (deficit) | $ | 397,061 | $ | 133,749 | |||
| BEYOND MEAT, INC.
Condensed Statements of Cash Flows(In thousands)(unaudited) |
||||||||
| |
||||||||
| Six Months Ended | ||||||||
| June 29, 2019 |
June 30, 2018 |
|||||||
| Cash flows from operating actions: | ||||||||
| Obtain loss | $ | (sixteen,090 | ) | $ | (Thirteen,092 | ) | ||
| Adjustments to reconcile assemble loss to assemble cash used in operating actions: | ||||||||
| Depreciation and amortization | three,957 | 1,620 | ||||||
| Share-primarily primarily based compensation expense | 2,678 | 710 | ||||||
| Amortization of debt issuance costs | 78 | 35 | ||||||
| Alternate in preferred and used stock warrant liabilities | 12,503 | 259 | ||||||
| Obtain change in operating resources and liabilities: | ||||||||
| Accounts receivables | (21,762 | ) | (2,788 | ) | ||||
| Inventories | (12,438 | ) | (6,178 | ) | ||||
| Prepaid charges and diverse resources | (2,131 | ) | (154 | ) | ||||
| Accounts payable | 9,799 | 6,623 | ||||||
| Gathered charges and diverse novel liabilities | 1,028 | 259 | ||||||
| Prolonged-term liabilities | 12 | 39 | ||||||
| Obtain cash used in operating actions | $ | (22,366 | ) | $ | (12,667 | ) | ||
| Cash flows used in investing actions: | ||||||||
| Purchases of property, plant and equipment | $ | (7,502 | ) | $ | (9,973 | ) | ||
| Proceeds from sale of mounted resources | 232 | — | ||||||
| Purchases of property, plant and equipment held for sale | (three,121 | ) | — | |||||
| Charge of security deposits | (487 | ) | (60 | ) | ||||
| Obtain cash used in investing actions | $ | (10,878 | ) | $ | (10,033 | ) | ||
| Cash flows from financing actions: | ||||||||
| Proceeds from issuance of classic stock pursuant to the preliminary public offering, assemble of issuance costs | $ | 255,448 | $ | — | ||||
| Proceeds from Series G preferred stock offering, assemble of offering costs | — | 1,350 | ||||||
| Proceeds from bank term mortgage borrowing | — | 10,000 | ||||||
| Repayments on revolving credit ranking line | — | (2,500 | ) | |||||
| Compensation on term mortgage | — | (1,000 | ) | |||||
| Compensation of Missouri Show conceal | — | (1,450 | ) | |||||
| Payments of capital hire duties | (21 | ) | (117 | ) | ||||
| Proceeds from exercise of stock choices | 533 | 871 | ||||||
| Obtain cash supplied by financing actions | $ | 255,960 | $ | 7,154 | ||||
| Obtain magnify (decrease) in cash and cash equivalents | $ | 222,716 | $ | (15,546 | ) | |||
| Cash and cash equivalents on the starting of the length | 54,271 | 39,035 | ||||||
| Cash and cash equivalents on the tip of the length | $ | 276,987 | $ | 23,489 | ||||
| Supplemental disclosures of cash rush along with the circulation knowledge: | ||||||||
| Cash paid for the duration of the length for: | ||||||||
| Pastime | $ | 1,445 | $ | Sixty three | ||||
| Taxes | $ | 21 | $ | three | ||||
| Non-cash investing and financing actions: | ||||||||
| Capital hire duties for the capture of property, plant and equipment | $ | — | $ | eighty five | ||||
| Issuance of convertible preferred stock warrants in connection with debt | $ | — | $ | 248 | ||||
| Non-cash additions to property, plant and equipment | $ | 1,003 | $ | 1,656 | ||||
| Deferred offering costs, gathered now not yet paid | $ | 578 | $ | sixty 4 | ||||
| Non-cash additions to property, plant and equipment held for sale | $ | 646 | $ | — | ||||
| Reclassification of warrant liability to extra paid-in capital in connection with the preliminary public offering | $ | 14,421 | $ | — | ||||
| Conversion of convertible preferred stock to classic stock upon preliminary public offering | $ | 199,540 | $ | — | ||||
Beyond Meat makes exhaust of the following non-GAAP monetary measures in assessing its operating performance and in its monetary communications:
Adjusted EBITDA as a % of assemble revenues” is outlined as Adjusted EBITDA divided by assemble revenues.” information-reactid=”sixty six” form=”text”>“Adjusted EBITDA as a % of assemble revenues” is outlined as Adjusted EBITDA divided by assemble revenues.
We exhaust Adjusted EBITDA and Adjusted EBITDA as a % of assemble revenues because they’re predominant measures upon which our management assesses our operating performance. We exhaust Adjusted EBITDA and Adjusted EBITDA as a % of assemble revenues as key performance measures because we converse these measures facilitate operating performance comparison from length-to-length by other than doable variations primarily introduced about by the impact of restructuring, asset depreciation and amortization, non-cash allotment-primarily primarily based compensation and non-operational costs collectively with the impact to rate of goods sold and promoting, classic and administrative charges related to the termination of an novel co-manufacturing agreement, early extinguishment of convertible notes and remeasurement of warrant liability. Attributable to Adjusted EBITDA and Adjusted EBITDA as a % of assemble revenues facilitate interior comparisons of our historic operating performance on a more consistent foundation, we moreover exhaust these measures for our change planning functions. Moreover, we converse Adjusted EBITDA and Adjusted EBITDA as a % of assemble revenues are widely utilized by traders, securities analysts, rankings companies and diverse occasions in evaluating companies in our change as a measure of our operational performance.
There are a preference of obstacles related to the utilization of Adjusted EBITDA in preference to assemble loss, which is the most straight related GAAP measure. These forms of obstacles are:
- Adjusted EBITDA excludes depreciation and amortization expense and, even supposing these are non-cash charges, the resources being depreciated could perchance well simply beget to salvage changed sooner or later rising our cash requirements;
- Adjusted EBITDA does now not replicate hobby expense, or the cash required to provider our debt, which reduces cash accessible to us;
- Adjusted EBITDA does now not replicate profits tax payments that minimize cash accessible to us;
- Adjusted EBITDA does now not replicate restructuring charges that minimize cash accessible to us;
- Adjusted EBITDA does now not replicate allotment-primarily primarily based compensation charges and as a consequence of this truth does now not embrace all of our compensation costs;
- Adjusted EBITDA does now not replicate assorted profits (expense) which will magnify or decrease cash accessible to us; and
- assorted companies, collectively with companies in our change, could perchance well simply calculate Adjusted EBITDA in a different way, which reduces its usefulness as a comparative measure.
These non-GAAP monetary measures could perchance well simply smooth now not be regarded as in isolation or as a change for monetary knowledge supplied in step with GAAP. These non-GAAP monetary measures could perchance well simply now not be computed in the identical formula as equally titled measures utilized by assorted companies.
The following desk affords the reconciliation of Adjusted EBITDA to its most related GAAP measure, assemble loss, as reported (unaudited):
| Three Months Ended | Six Months Ended | |||||||||||||||
| (in thousands) | June 29, 2019 |
June 30, 2018 |
June 29, 2019 |
June 30, 2018 |
||||||||||||
| Obtain loss, as reported | $ | (9,441 | ) | $ | (7,396 | ) | (sixteen,090 | ) | (Thirteen,092 | ) | ||||||
| Earnings tax expense | 21 | — | 21 | — | ||||||||||||
| Pastime expense | 741 | 28 | 1,474 | 75 | ||||||||||||
| Depreciation and amortization expense | 2,052 | 887 | three,957 | 1,620 | ||||||||||||
| Restructuring charges(1) | 847 | 348 | 1,241 | 642 | ||||||||||||
| Share-primarily primarily based compensation expense | 1,823 | 450 | 2,678 | 710 | ||||||||||||
| Remeasurement of warrant liability | Eleven,744 | 130 | 12,503 | 259 | ||||||||||||
| Other profits, assemble | (898 | ) | (38 | ) | (1,039 | ) | (97 | ) | ||||||||
| Adjusted EBITDA | $ | 6,889 | $ | (5,591 | ) | $ | 4,745 | $ | (9,883 | ) | ||||||
| Obtain loss as a % of assemble revenues | (14.0 | )% | (42.6 | )% | (15.0 | )% | (forty three.4 | )% | ||||||||
| Adjusted EBITDA as a % of assemble revenues | 10.2 | % | (32.2 | )% | 4.4 | % | (32.8 | )% | ||||||||
_____________
| (1 | ) | Primarily made from honorable and diverse charges related with the dispute with a co-manufacturer with whom an novel supply agreement became terminated in Might well simply 2017. |
