AppHarvest, Inc. (NASDAQ: APPH, APPHW), a sustainable food company,
public benefit corporation and Certified B Corp building some of
the world’s largest high-tech indoor farms to grow affordable,
nutritious fruits and vegetables at scale while providing good jobs
in Appalachia, today announced its fourth quarter and full-year
2022 operating and financial results, achieving its previous
revised guidance, quadrupling the AppHarvest farm network in 2022
and diversifying its crop portfolio. With significant
infrastructure now in place to deliver fresh fruits and vegetables
to top grocery chains and restaurants, the company expects to
nearly triple its net sales year-over-year in 2023.
“Even with headwinds from the pandemic and supply chain
disruption, AppHarvest met its commitment in 2022 to open three new
farms and is now shipping commercially from each of the four
farms,” said AppHarvest Founder & CEO Jonathan Webb. “We are
now at an inflection point in our business transitioning from
construction to an intense focus on operations with our new Chief
Operating Officer (COO) Tony Martin, leveraging his deep experience
in the sector to help accelerate our path to profitability through
the consistent delivery of high-quality produce.”
CEA demand According to USDA reports, the value
of U.S. fruit and vegetable imports rose to a record level in 2021
and has been projected to keep increasing. Changing weather
patterns—ranging from mega-drought in the Southwest of the U.S. to
more frequent flooding to catastrophic wind events—are making it
harder than ever for open-field farmers to predict the duration of
their growing seasons and to have conditions that result in a
quality harvest. AppHarvest benefits from turning first to sunshine
for its growing and from being water-independent, leveraging
rainwater for its farms that use up to 90% less water and a
fraction of the required nutrients compared to open-field
agriculture. Major food retailers have demonstrated increasing
interest in high-tech indoor farms for their ability to de-risk
fruit and vegetable production with a more climate-resilient, more
sustainable year-round growing solution that uses far fewer
resources. Europe, a pioneer in the industry, is estimated to have
nearly 520,000 acres of Controlled Environment Agriculture (CEA)
production compared to an estimated 6,000 acres in the United
States.
Fourth quarter 2022 resultsFourth quarter net
sales were $4.5 million compared to net sales of $3.1 million in
the fourth quarter 2021. For net sales reporting purposes, the
company plans to move from a metric of pounds sold to overall net
sales by produce type. This anticipated change in reporting is
driven by the new diversified crop portfolio that is expected to
include tomatoes, salad greens, strawberries and cucumbers.
The company recorded a net loss of $93.3 million and non-GAAP
Adjusted EBITDA loss of $24.1 million in the fourth quarter as the
company was working to rapidly expand its farm network, compared to
a prior year net loss of $88.4 million and non-GAAP Adjusted EBITDA
loss of $18.3 million. See reconciliation of the non-GAAP measure
at the end of this news release. Following a third-party
recoverability assessment, the company recorded a non-cash
impairment charge of $50.1 million which reduced the carrying value
of certain long-lived assets.
Full-year 2022 resultsAppHarvest achieved our
revised guidance range for full-year 2022 as previously announced
in the third quarter of 2022. The company delivered net sales of
$14.6 million compared to $9.1 million for the prior year, an
increase of 60% year-over-year. This increase in net sales was
driven by a combination of higher market prices for tomatoes and
the addition of new sales of higher-priced tomato varietals,
strawberries and salad greens in the fourth quarter. Supply-chain
related construction delays at both AppHarvest Berea and AppHarvest
Somerset affected the timing of commercial shipments from these
farms and affected net sales which were at the lower end of the
previously forecasted range of $14.0 to $17.0 million.
The company reported a net loss of $176.6 million compared to a
net loss of $166.2 million for the prior year. This increase in net
loss was driven by production ramp up at the three new farms.
AppHarvest achieved non-GAAP Adjusted EBITDA loss within its
revised guidance range for full year 2022 as previously announced
in the third quarter of 2022 with non-GAAP Adjusted EBITDA loss of
$72.0 million versus a prior outlook of non-GAAP Adjusted EBITDA
loss in the range of $67.0 million to $72.0 million. See
reconciliation of the non-GAAP measure at the end of this news
release.
AppHarvest Farm NetworkAppHarvest delivered on
its commitment to quadruple its farm network in 2022 by bringing
three new high-tech indoor farms online by year-end and
diversifying its crop portfolio to include strawberries, cucumbers,
salad greens and more tomatoes.
- AppHarvest Berea supplies the “Queen of Greens®”
washed-and-ready-to-eat salad mixes. At 15-acres, Berea is believed
to be the world’s largest high-tech indoor farm for autonomously
harvested salad greens featuring a “touchless growing system.”
- AppHarvest Somerset is a 30-acre high-tech indoor farm growing
strawberries under multiple brands including the “WOW® Berries”
brand for Mastronardi Produce.
- AppHarvest Richmond planted its first 30-acres in late 2022 and
began its first harvest in the first quarter of 2023. The second
30-acres of tomatoes in Richmond are expected to be planted later
in 2023. With AppHarvest Morehead, the company expects to grow
nearly 1.5 million tomato plants across the combined 120
acres.
- AppHarvest Morehead, the 60-acre flagship farm, kicked off its
third season of harvesting and has seen vast improvements in
quality and execution. Morehead farm has further diversified its
crop set adding new varietals of premium snacking tomatoes sold
under the Sunset brand as “Flavor Bombs®” and “Sugar Bombs®.”
At 165 acres under glass, the company believes this is the
largest simultaneous build out of controlled environment
agriculture (CEA) infrastructure in U.S. history putting AppHarvest
in the top three CEA operators in the U.S. With this milestone, the
company is moving to the next phase of the business focused on
operations.
Operations In January of 2023, CEA industry
veteran and AppHarvest board member Tony Martin was named chief
operating officer. Martin is working to optimize production,
revenue and costs across the AppHarvest four-farm network under
Project New Leaf, the company’s strategic program focused on
profitability. Martin is implementing a five-point strategy that
will focus efforts across all operations: 1) further leveraging
synergies with its marketing and distribution partner, Mastronardi
Produce 2) enabling labor efficiency 3) improving enterprise-wide
feedback through clear key performance indicators and
cross-organization information sharing 4) initiating comprehensive
spending reviews and 5) aligning the company to milestones for a
5-year strategic vision.
Operations in the first quarter of 2023 continue to ramp up as
expected. As previously announced, AppHarvest Berea is opening on a
phased approach and the company anticipates the third five-acre
salad greens growing area to be planted late first quarter of 2023.
AppHarvest Somerset, which will grow both strawberries and
cucumbers, has already planted about 45,000 long English cucumber
plants to calibrate packaging equipment and assess harvesting
capabilities in advance of the full seasonal summer refresh for the
facility. Harvesting of the cucumbers is anticipated in the second
quarter of 2023.
Balance sheet and liquidityThe company ended
the year with cash and cash equivalents of $54.3 million. In the
fourth quarter 2022, the company sold 475,600 shares for net
proceeds of approximately $932,000 via the ATM facility with Cowen,
which has a remaining availability of $97.6 million.
In terms of capital expenditure, AppHarvest expects to spend
approximately $60 million to $65 million in the full-year 2023,
which accounts for completing final project details at the
Richmond, Berea and Somerset facilities and on-going maintenance
for the four-farm network.
In February 2023, AppHarvest executed an underwritten offering
that raised $46 million before deducting underwriting discounts and
commissions and estimated offering expenses.
In 2022, the company secured non-dilutive financing to support
its expansion, including $50 million in USDA guaranteed loans with
Greater Nevada Credit Union for AppHarvest Somerset announced in
the third quarter of 2022.
Consistent with its strategy to secure attractive long-term
financing for its assets, AppHarvest completed a $127 million
sale-leaseback of its Berea, Ky., indoor salad greens facility as a
source of non-dilutive capital in December. The agreement with
Mastronardi Berea LLC, a joint venture between Mastronardi Produce
and COFRA Holding, has an initial annual lease rate of 7.5% over 10
years with four renewal terms of five years each. Some of the
proceeds from the sale-leaseback repaid the $30 million bridge loan
from Mastronardi announced in the second quarter of 2022 and the
first two years of prepaid rent at the Berea facility.
Throughout full-year 2022 the company focused on cost
containment efforts, including realigning teams and reporting
structures and creating operational efficiencies through corporate
workforce reductions and more tightly controlled spend. AppHarvest
estimates that the restructuring will account for approximately $26
million in annualized savings in 2023.
Financial OutlookAppHarvest remains confident
in its ability to be self-sufficient and to generate positive
operating cash flow over the longer term with its four-farm
network. The company still plans to expand capacity only after
securing the required capital.
With the first quarter of 2023 marking the first time that all
four facilities in the AppHarvest farm network will be shipping
commercially to top national grocery store chains, restaurants and
food service outlets under a variety of brands for Mastronardi
Produce, the company expects to see significant year-over-year
sales increases throughout 2023 and even more so in 2024.
AppHarvest anticipates full-year 2023 guidance of net sales to be
in the range of $40 million to $50 million, and non-GAAP Adjusted
EBITDA loss to be in the range of $67 million to $76 million.
With the benefit of experience from three harvesting seasons now
at its flagship farm in Morehead, Ky., the company is applying
lessons learned in an effort to accelerate its journey to
operational excellence at each of the three farms added to its
network in 2022 with the potential to see the enterprise achieve
positive Adjusted gross profit in 2024. In 2025, the company
expects to achieve positive Adjusted EBITDA status for farm
operations. With this trajectory, AppHarvest believes it may be
able to achieve positive Adjusted EBITDA status on a consolidated
basis in 2026.
Conference call and webcastAppHarvest will host
a webcast and conference call today at 4:30 p.m. ET to discuss its
fourth quarter and full-year 2022 financial results and
operations.
The conference call will be streamed over the internet and
accessible through the “Investor Relations” section of the
AppHarvest website at https://investors.appharvest.com. To join the
live call, register here for the dial-in number and a personal PIN
code. An audio-only replay of the webcast will be available on the
company’s website approximately 90 minutes after the end of the
conference call for 30 days.
Upcoming eventsAppHarvest management plans to
participate in the 35th Annual Roth Conference on March 13, the
Oppenheimer 8th Annual Emerging Growth Conference on May 11 and the
Cowen Sustainability Conference on June 8.
About AppHarvest AppHarvest is a sustainable
food company in Appalachia developing and operating some of the
world’s largest high-tech indoor farms with robotics and artificial
intelligence to build a reliable, climate-resilient food system.
AppHarvest’s farms are designed to grow produce using sunshine,
rainwater and up to 90% less water than open-field growing, all
while producing yields up to 30 times that of traditional
agriculture and preventing pollution from agricultural runoff.
AppHarvest currently operates its 60-acre flagship farm in
Morehead, Ky., producing tomatoes, a 15-acre indoor farm for salad
greens in Berea, Ky., a 30-acre farm for strawberries and cucumbers
in Somerset, Ky., and a 60-acre farm in Richmond, Ky., for
tomatoes. The four-farm network consists of 165 acres under glass.
For more information, visit https://www.appharvest.com.
Non-GAAP Financial MeasuresTo supplement the
company’s consolidated financial statements, which are prepared and
presented in accordance with United States generally accepted
accounting principles (“GAAP”), the company uses certain non-GAAP
measures, such as Adjusted EBITDA and Adjusted gross loss, to
understand and evaluate the company’s core operating performance.
The company defines and calculates Adjusted EBITDA as net loss
before the impact of interest income or expense, income tax expense
or benefit, depreciation and amortization, adjusted to exclude:
stock-based compensation expense, Business Combination
transaction-related costs, restructuring and impairment costs,
remeasurement of warrant liabilities, start-up costs for new CEA
facilities, Root AI acquisition related costs and certain other
non-core items. The company defines and calculates Adjusted gross
profit/(loss) as gross profit/(loss) adjusted to exclude the impact
of depreciation and amortization and stock-based compensation
expense related to costs of goods sold. The company believes these
non-GAAP measures of financial results provide useful information
to management and investors regarding certain financial and
business trends relating to the company’s financial condition and
results of operations. The company’s management uses these non-GAAP
measures for trend analyses and for budgeting and planning
purposes.
The company believes that the use of these non-GAAP financial
measures provides an additional tool for investors to use in
evaluating projected operating results and trends. Other similar
companies may present different non-GAAP measures or calculate
similar non-GAAP measures differently. Management does not consider
these non-GAAP measures in isolation or as an alternative to
financial measures determined in accordance with GAAP. The
principal limitation of these non-GAAP financial measures are that
they exclude significant expenses that are required to be presented
in the company’s GAAP financial statements. Because of this
limitation, you should consider Adjusted EBITDA and Adjusted gross
loss alongside other financial performance measures, including net
loss, gross loss and the company’s other financial results
presented in accordance with GAAP.
Adjusted EBITDA and Adjusted gross profit as used in connection
with the company's financial outlook, including its 2023 guidance,
are non-GAAP financial measures that exclude or have otherwise been
adjusted for items impacting comparability. The company is unable
to reconcile these forward-looking non-GAAP financial measures to
net income, their most directly comparable forward-looking GAAP
financial measure, without unreasonable efforts, because the
company is currently unable to predict with a reasonable degree of
certainty its stock-based compensation expense for future periods.
In addition, AppHarvest may incur additional expenses which may
impact Adjusted EBITDA and Adjusted gross profit.
Forward-Looking Statements Certain
statements included in this news release that are not historical
facts are forward-looking statements for purposes of the safe
harbor provisions under the United States Private Securities
Litigation Reform Act of 1995. Forward-looking statements generally
are accompanied by words or phrases such as “believe,” “intend,”
“project,” “anticipate,” “design,” “may,” “should,” “will,”
“estimate,” “work to,” “continue,” “expect,” “plan,” “guidance,”
and similar expressions that predict or indicate future events or
trends or that are not statements of historical matters. All
statements, other than statements of present or historical fact
included in this news release, regarding AppHarvest’s expected full
year 2023 net sales, net loss, Adjusted EBITDA and capital
expenditures, AppHarvest’s ability to secure attractive long-term
financing for its assets, the expectation that AppHarvest will ship
commercially to top national grocery store chains in the first
quarter of 2023, the anticipated benefits and use of proceeds from
the sale-leaseback of the Berea farm, the anticipated benefits from
having experience from three harvesting seasons, AppHarvest’s
intention to build high-tech CEA farms and to expand capacity only
after securing requisite capital, AppHarvest’s expectation of the
landscape of the fruit and vegetables market, the impact of
changing weather patterns on production for open-field farmers, the
anticipated benefits and production of the four AppHarvest
facilities, the anticipated benefits of Project New Leaf, the
estimated annualized savings from the restructuring, the ability of
AppHarvest to become self-sufficient and generate positive cash
flow, Adjusted gross profit and Adjusted EBITDA over the long term
with its four-farm network, the completion of the phased openings
of certain facilities, the timing and availability of produce, the
expected timing of planting and harvesting produce, AppHarvest’s
change in sales reporting of net sales, AppHarvest’s future plans
to expand capacity, AppHarvest’s expectations regarding production
of its crops, AppHarvest’s future financial performance,
AppHarvest’s growth and evolving business plans and strategy,
ability to capitalize on commercial opportunities, future
operations, estimated financial position and cash flow, projected
costs, prospects, plans and objectives of management are
forward-looking statements. These statements are based on various
assumptions, whether or not identified in this news release, and on
the current expectations of AppHarvest’s management and are not
predictions of actual performance. These forward-looking statements
are provided for illustrative purposes only and are not intended to
serve as, and must not be relied on as, a guarantee, an assurance,
a prediction, or a definitive statement of fact or probability.
Actual events and circumstances are difficult or impossible to
predict and will differ from assumptions. Many actual events and
circumstances are beyond the control of AppHarvest. These
forward-looking statements are subject to a number of risks and
uncertainties, including those discussed in AppHarvest’s Quarterly
Report on Form 10-Q filed with the SEC by AppHarvest on Nov. 7,
2022, under the heading “Risk Factors,” and other documents
AppHarvest has filed, or that AppHarvest will file, with the SEC.
If any of these risks materialize or our assumptions prove
incorrect, actual results could differ materially from the results
implied by these forward-looking statements. In addition,
forward-looking statements reflect AppHarvest’s expectations,
plans, or forecasts of future events and views as of the date of
this press release. AppHarvest anticipates that subsequent events
and developments will cause its assessments to change. However,
while AppHarvest may elect to update these forward-looking
statements at some point in the future, AppHarvest specifically
disclaims any obligation to do so. These forward-looking statements
should not be relied upon as representing AppHarvest’s assessments
of any date subsequent to the date of this news release.
Accordingly, undue reliance should not be placed upon the
forward-looking statements.
APPHARVEST, INC.
CONSOLIDATED BALANCE SHEETS (Unaudited)(in
thousands except per share amounts)
|
December 31,2022 |
|
December 31,2021 |
Assets |
|
|
|
Current
Assets: |
|
|
|
Cash and cash equivalents |
$ |
54,334 |
|
|
$ |
150,755 |
|
Restricted cash |
|
24,198 |
|
|
|
25,556 |
|
Accounts receivable, net |
|
2,786 |
|
|
|
1,575 |
|
Inventories, net |
|
18,078 |
|
|
|
4,998 |
|
Prepaid expenses and other current assets |
|
14,716 |
|
|
|
5,613 |
|
Total
current assets |
|
114,112 |
|
|
|
188,497 |
|
Operating lease right-of-use assets, net |
|
2,626 |
|
|
|
5,010 |
|
Property and equipment, net |
|
456,178 |
|
|
|
343,913 |
|
Other assets, net |
|
22,412 |
|
|
|
16,644 |
|
Total
non-current assets |
|
481,216 |
|
|
|
365,567 |
|
Total assets |
$ |
595,328 |
|
|
$ |
554,064 |
|
Liabilities and stockholders’ equity |
|
|
|
Current
Liabilities: |
|
|
|
Accounts payable |
$ |
16,571 |
|
|
$ |
8,553 |
|
Accrued expenses |
|
21,996 |
|
|
|
15,794 |
|
Current portion of lease liabilities |
|
514 |
|
|
|
751 |
|
Current portion of long-term debt |
|
3,685 |
|
|
|
28,020 |
|
Other current liabilities |
|
202 |
|
|
|
119 |
|
Total
current liabilities |
|
42,968 |
|
|
|
53,237 |
|
Long-term debt, net of current portion |
|
180,537 |
|
|
|
102,637 |
|
Lease liabilities, net of current portion |
|
2,628 |
|
|
|
4,938 |
|
Financing obligation |
|
103,787 |
|
|
|
— |
|
Deferred income tax liabilities |
|
4,925 |
|
|
|
2,418 |
|
Private Warrant liabilities |
|
119 |
|
|
|
1,385 |
|
Other liabilities |
|
73 |
|
|
|
1,809 |
|
Total
non-current liabilities |
|
292,069 |
|
|
|
113,187 |
|
Total
liabilities |
|
335,037 |
|
|
|
166,424 |
|
Commitments and contingencies (Note 11) |
|
|
|
Stockholders’ equity |
|
|
|
Preferred stock, par value $0.0001, 10,000 shares authorized, 0
issued and outstanding, as of December 31, 2022 and
December 31, 2020, respectively |
|
— |
|
|
|
— |
|
Common stock, par value $0.0001, 750,000 shares authorized, 108,511
and 101,136 shares issued and outstanding as of December 31,
2022 and December 31, 2020, respectively |
|
11 |
|
|
|
10 |
|
Additional paid-in capital |
|
615,452 |
|
|
|
576,895 |
|
Accumulated deficit |
|
(363,960 |
) |
|
|
(187,314 |
) |
Accumulated other comprehensive loss |
|
8,788 |
|
|
|
(1,951 |
) |
Total
stockholders’ equity |
|
260,291 |
|
|
|
387,640 |
|
Total liabilities and stockholders’ equity |
$ |
595,328 |
|
|
$ |
554,064 |
|
|
|
|
|
|
|
|
|
APPHARVEST, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS AND
COMPREHENSIVE LOSS (Unaudited)(In thousands except
per share data)
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Net
sales |
$ |
4,546 |
|
|
$ |
3,070 |
|
|
$ |
14,592 |
|
|
$ |
9,050 |
|
Cost of
goods sold |
|
23,446 |
|
|
|
11,937 |
|
|
|
56,995 |
|
|
|
41,938 |
|
Gross
loss |
|
(18,900 |
) |
|
|
(8,867 |
) |
|
|
(42,403 |
) |
|
|
(32,888 |
) |
Operating expenses: |
|
|
|
|
|
|
|
Selling, general and administrative expenses |
|
22,488 |
|
|
|
22,888 |
|
|
|
81,266 |
|
|
|
107,245 |
|
Goodwill and other intangible asset impairment |
|
— |
|
|
|
59,901 |
|
|
|
— |
|
|
|
59,901 |
|
Fixed asset impairment charge |
|
50,101 |
|
|
|
— |
|
|
|
50,101 |
|
|
|
— |
|
Total
operating expenses |
|
72,589 |
|
|
|
82,789 |
|
|
|
131,367 |
|
|
|
167,146 |
|
Loss
from operations |
|
(91,489 |
) |
|
|
(91,656 |
) |
|
|
(173,770 |
) |
|
|
(200,034 |
) |
Other
income (expense): |
|
|
|
|
|
|
|
Development fee income from a related party |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Interest expense from related parties |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(658 |
) |
Change in fair value of Private Warrants |
|
344 |
|
|
|
2,952 |
|
|
|
111 |
|
|
|
35,047 |
|
Other |
|
(846 |
) |
|
|
(126 |
) |
|
|
(480 |
) |
|
|
448 |
|
Loss
before income taxes |
|
(91,991 |
) |
|
|
(87,937 |
) |
|
|
(174,139 |
) |
|
|
(165,197 |
) |
Income tax benefit (expense) |
|
(1,331 |
) |
|
|
(450 |
) |
|
|
(2,507 |
) |
|
|
(989 |
) |
Net
loss |
|
(93,322 |
) |
|
|
(88,387 |
) |
|
|
(176,646 |
) |
|
|
(166,186 |
) |
|
|
|
|
|
|
|
|
Other
comprehensive loss: |
|
|
|
|
|
|
|
Net unrealized losses on derivatives contracts, net of tax |
|
68 |
|
|
|
627 |
|
|
|
10,739 |
|
|
|
(1,951 |
) |
Comprehensive loss |
$ |
(93,254 |
) |
|
$ |
(87,760 |
) |
|
$ |
(165,907 |
) |
|
$ |
(168,137 |
) |
|
|
|
|
|
|
|
|
Net loss
per common share: |
|
|
|
|
|
|
|
Basic and diluted |
$ |
(0.86 |
) |
|
$ |
(1.99 |
) |
|
$ |
(1.69 |
) |
|
$ |
(1.74 |
) |
Weighted
average common shares outstanding: |
|
|
|
|
|
|
|
Basic and diluted |
|
108,087 |
|
|
|
44,454 |
|
|
|
104,763 |
|
|
|
95,571 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
APPHARVEST, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)(In thousands)
|
Year ended December 31, |
|
|
2022 |
|
|
|
2021 |
|
Operating
Activities |
|
|
|
Net loss |
$ |
(176,646 |
) |
|
$ |
(166,186 |
) |
Adjustments to reconcile net loss to net cash used in operating
activities: |
|
|
|
Change in fair value of Private Warrants |
|
(111 |
) |
|
|
(35,047 |
) |
Deferred income tax provision |
|
2,507 |
|
|
|
989 |
|
Depreciation and amortization |
|
16,354 |
|
|
|
10,794 |
|
Fixed asset impairment |
|
51,171 |
|
|
|
— |
|
Stock-based compensation expense |
|
26,918 |
|
|
|
40,910 |
|
Issuance of common stock for commitment shares |
|
— |
|
|
|
1,006 |
|
Rent payments in excess of average rent expense, net |
|
(378 |
) |
|
|
(10 |
) |
Goodwill and other intangible asset impairment |
|
— |
|
|
|
59,901 |
|
Changes in operating assets and liabilities, net of
acquisitions: |
|
|
|
Accounts receivable |
|
(1,211 |
) |
|
|
(1,316 |
) |
Inventories, net |
|
(13,079 |
) |
|
|
(1,611 |
) |
Prepaid expenses and other current assets |
|
(176 |
) |
|
|
(4,872 |
) |
Other assets, net |
|
1,277 |
|
|
|
(10,528 |
) |
Accounts payable |
|
1,810 |
|
|
|
402 |
|
Accrued expenses |
|
5,369 |
|
|
|
2,366 |
|
Other current liabilities |
|
146 |
|
|
|
(874 |
) |
Other non-current liabilities |
|
(80 |
) |
|
|
153 |
|
Net cash used in operating activities |
|
(86,129 |
) |
|
|
(103,924 |
) |
Investing
Activities |
|
|
|
Purchases of property and equipment |
|
(170,913 |
) |
|
|
(177,742 |
) |
Purchases of property and equipment from a related party |
|
— |
|
|
|
(122,911 |
) |
Proceeds from sale of land |
|
1,059 |
|
|
|
— |
|
Cost of acquisition, net of cash acquired |
|
— |
|
|
|
(9,756 |
) |
Investment in unconsolidated entity |
|
— |
|
|
|
(5,000 |
) |
Advances on construction |
|
(9,828 |
) |
|
|
— |
|
Net cash used in investing activities |
|
(179,682 |
) |
|
|
(315,409 |
) |
Financing
Activities |
|
|
|
Proceeds from Business Combination and PIPE Shares, net |
|
— |
|
|
|
448,500 |
|
Proceeds from debt |
|
136,006 |
|
|
|
131,278 |
|
Repayments of debt |
|
(79,782 |
) |
|
|
— |
|
Debt issuance costs |
|
(4,340 |
) |
|
|
(1,038 |
) |
Proceeds from financing obligation, net |
|
123,941 |
|
|
|
— |
|
Payments on financing obligation |
|
(18,865 |
) |
|
|
— |
|
Payments on financing obligation to a related party |
|
— |
|
|
|
(2,089 |
) |
Proceeds from stock options exercised |
|
154 |
|
|
|
39 |
|
Proceeds from employee stock purchase plan |
|
287 |
|
|
|
165 |
|
Proceeds from exercise of warrants |
|
— |
|
|
|
95 |
|
Payments of withholding taxes on restricted stock conversions |
|
(1,572 |
) |
|
|
(3,216 |
) |
Proceeds from issuance of common stock |
|
12,203 |
|
|
|
— |
|
Net cash provided by financing activities |
|
168,032 |
|
|
|
573,734 |
|
Change in cash, cash equivalents and restricted cash |
|
(97,779 |
) |
|
|
154,402 |
|
Beginning of period |
|
176,311 |
|
|
|
21,909 |
|
Cash, cash equivalents and
restricted cash at the end of period |
|
78,532 |
|
|
|
176,311 |
|
Less restricted cash at the end of the period |
|
24,198 |
|
|
|
25,556 |
|
Cash and cash
equivalents at the end of period |
$ |
54,334 |
|
|
$ |
150,755 |
|
|
|
|
|
|
|
|
|
APPHARVEST, INC. AND
SUBSIDIARIESReconciliation of Selected GAAP
Measures to Non-GAAP Measures(In
millions)
|
Three Months Ended December 31, |
|
Year Ended December 31, |
(Dollars in millions) |
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Net loss |
$ |
(93.3 |
) |
|
$ |
(88.4 |
) |
|
$ |
(176.6 |
) |
|
$ |
(166.2 |
) |
Interest expense from related parties |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.7 |
|
Interest income |
|
(0.3 |
) |
|
|
(0.1 |
) |
|
|
(0.8 |
) |
|
|
(0.3 |
) |
Income tax expense (benefit) |
|
1.3 |
|
|
|
0.5 |
|
|
|
2.5 |
|
|
|
1.0 |
|
Depreciation and amortization expense |
|
6.4 |
|
|
|
3.0 |
|
|
|
16.4 |
|
|
|
10.8 |
|
Other |
|
— |
|
|
|
(0.9 |
) |
|
|
— |
|
|
|
— |
|
EBITDA |
|
(85.9 |
) |
|
|
(85.9 |
) |
|
|
(158.6 |
) |
|
|
(154.0 |
) |
Fixed asset impairment |
|
50.1 |
|
|
|
— |
|
|
|
50.1 |
|
|
|
— |
|
Goodwill and other intangible asset impairment |
|
— |
|
|
|
59.9 |
|
|
|
— |
|
|
|
59.9 |
|
Change in fair value of Private Warrants |
|
(0.3 |
) |
|
|
(3.0 |
) |
|
|
(0.1 |
) |
|
|
(35.0 |
) |
Stock-based compensation expense |
|
9.4 |
|
|
|
9.7 |
|
|
|
26.9 |
|
|
|
40.9 |
|
Issuance of common stock for commitment shares |
|
— |
|
|
|
1.0 |
|
|
|
— |
|
|
|
1.0 |
|
Transaction success bonus on completion of Business
Combination |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1.5 |
|
Start-up costs for new CEA facilities |
|
0.3 |
|
|
|
— |
|
|
|
2.9 |
|
|
|
— |
|
Reorganization costs |
|
1.1 |
|
|
|
— |
|
|
|
5.5 |
|
|
|
0.9 |
|
Business Combination transaction costs |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
13.9 |
|
Berea sale leaseback transaction costs |
|
1.2 |
|
|
|
— |
|
|
|
1.2 |
|
|
|
— |
|
Root AI acquisition costs |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1.0 |
|
Adjusted EBITDA |
$ |
(24.1 |
) |
|
$ |
(18.3 |
) |
|
$ |
(72.0 |
) |
|
$ |
(69.9 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following table presents a reconciliation of
gross loss, the most directly comparable financial measure
calculated and presented in accordance with GAAP, to Adjusted gross
loss:
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
(Dollars in
thousands) |
|
|
|
|
|
|
|
Net sales |
$ |
4.5 |
|
|
$ |
3.1 |
|
|
$ |
14.6 |
|
|
$ |
9.1 |
|
Cost of goods sold |
|
23.4 |
|
|
|
11.9 |
|
|
|
57.0 |
|
|
|
41.9 |
|
Gross loss |
|
(18.9 |
) |
|
|
(8.9 |
) |
|
|
(42.4 |
) |
|
|
(32.9 |
) |
Depreciation and amortization |
|
5.5 |
|
|
|
2.1 |
|
|
|
12.1 |
|
|
|
8.3 |
|
Stock-based compensation expense |
|
0.2 |
|
|
|
0.2 |
|
|
|
0.7 |
|
|
|
1.9 |
|
Adjusted gross loss |
|
(13.2 |
) |
|
|
(6.5 |
) |
|
|
(29.7 |
) |
|
|
(22.7 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*Due to rounding, totals in the table above may
not foot
Photos accompanying this announcement are available at:
https://www.globenewswire.com/NewsRoom/AttachmentNg/6246ef41-1471-4afe-91ec-b8c2cd067696
https://www.globenewswire.com/NewsRoom/AttachmentNg/590d4d0c-1fcf-431d-bc4a-788137817dc1
Media Contact: Darla Turner, Darla.Turner@appharvest.com
Investor Contact: AppHarvestIR@appharvest.com
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