Beyond Meat, Inc. (NASDAQ: BYND) (“Beyond Meat” or “the Company”),
a leader in plant-based meat, today reported financial results for
its fourth quarter and full year ended December 31, 2021.
Fourth Quarter 2021 Financial
Highlights1
- Net revenues were $100.7 million, a decrease of 1.2%
year-over-year.
- Gross profit was $14.2 million, or gross margin of 14.1% of net
revenues.
- Net loss was $80.4 million, or $1.27 per common share. Net loss
as a percentage of net revenues was -79.8%.
- Adjusted EBITDA was a loss of $62.9 million, or -62.5% of net
revenues.
Full Year 2021 Financial
Highlights1
- Net revenues were $464.7 million, an increase of 14.2%
year-over-year.
- Gross profit was $117.3 million, or gross margin of 25.2% of
net revenues.
- Net loss was $182.1 million, or $2.88 per common share. Net
loss as a percentage of net revenues was -39.2%.
- Adjusted EBITDA was a loss of $112.8 million, or -24.3% of net
revenues.
Beyond Meat President and CEO Ethan Brown commented, "In 2021 we
saw strong growth in our international channel net revenues, as
well as sporadic yet promising signs of a resumption of growth in
U.S. foodservice channel net revenues as COVID-19 variants peaked
and declined. These gains, however, were dampened by what we
believe to be a temporary disruption in U.S. retail growth, for our
brand and the broader category. Despite the variability and
challenges of the year, we did not deviate from building the
foundation for our long-term growth. The investments we made in our
team, infrastructure, and capabilities across the U.S., EU, and
China, as well as extensive product scaling activities for key
strategic partners, weighed heavily on operating expenses and gross
margin during a fourth quarter and year that were already impacted
by lower than expected volumes. However, we believe these
investments will be instrumental in driving our long-term
growth."
Brown added, "As we begin 2022, we are pleased with the progress
we are making against our long-term strategy, such as the number of
tests and core menu placements recently announced by our global QSR
partners. Though we will continue to invest during 2022, we expect
to substantially moderate the growth of our operating expenses as
we leverage the building blocks we now have in place to serve our
customers, consumers, and markets — bringing forward our exciting
and expansive future one delicious serving at a time."
_________________1 This release includes references to non-GAAP
financial measures. Refer to “Non-GAAP Financial Measures” later in
this release for the definitions of the non-GAAP financial measures
presented and a reconciliation of these measures to their closest
comparable GAAP measures.
Fourth Quarter 2021
Net revenues decreased 1.2% to $100.7 million in the fourth
quarter of 2021, compared to $101.9 million in the year-ago period.
Increased U.S. foodservice and international channel net revenues
were more than offset by reduced U.S. retail channel net revenues,
which decreased 19.5% compared to the year-ago period. The decrease
in U.S. retail channel net revenues primarily reflected softer
demand, five fewer shipping days in the fourth quarter of 2021
compared to the year-ago period, increased trade discounts, and, to
a lesser extent, loss of market share. Increases in U.S.
foodservice and international channel net revenues were primarily
attributable to higher demand from existing outlets, new product
introductions, and expansion of distribution, partially offset by
increased trade discounts. In aggregate, net revenue per pound of
$5.19 during the fourth quarter of 2021 decreased approximately 7%
compared to the year-ago period.
Net revenues by channel:
|
|
(Unaudited) |
|
|
Three Months Ended December
31, |
|
Change |
(in
thousands) |
|
2021 |
|
2020 |
|
Amount |
|
% |
U.S.: |
|
|
|
|
|
|
|
|
Retail |
|
$ |
49,978 |
|
$ |
62,092 |
|
$ |
(12,114 |
) |
|
(19.5 |
)% |
Foodservice |
|
|
20,633 |
|
|
15,321 |
|
|
5,312 |
|
|
34.7 |
% |
U.S. net revenues |
|
|
70,611 |
|
|
77,413 |
|
|
(6,802 |
) |
|
(8.8 |
)% |
International: |
|
|
|
|
|
|
|
|
Retail |
|
$ |
14,349 |
|
$ |
12,973 |
|
$ |
1,376 |
|
|
10.6 |
% |
Foodservice |
|
|
15,718 |
|
|
11,551 |
|
|
4,167 |
|
|
36.1 |
% |
International net revenues |
|
|
30,067 |
|
|
24,524 |
|
|
5,543 |
|
|
22.6 |
% |
Net revenues |
|
$ |
100,678 |
|
$ |
101,937 |
|
$ |
(1,259 |
) |
|
(1.2 |
)% |
|
|
|
|
|
|
|
|
|
|
|
(Unaudited) |
|
|
Year Ended December 31, |
|
Change |
(in
thousands) |
|
2021 |
|
2020 |
|
Amount |
|
% |
U.S.: |
|
|
|
|
|
|
|
|
Retail |
|
$ |
243,360 |
|
$ |
264,111 |
|
$ |
(20,751 |
) |
|
(7.9 |
)% |
Foodservice |
|
|
76,475 |
|
|
60,763 |
|
|
15,712 |
|
|
25.9 |
% |
U.S. net revenues |
|
|
319,835 |
|
|
324,874 |
|
|
(5,039 |
) |
|
(1.6 |
)% |
International: |
|
|
|
|
|
|
|
|
Retail |
|
$ |
81,483 |
|
$ |
36,472 |
|
$ |
45,011 |
|
|
123.4 |
% |
Foodservice |
|
|
63,382 |
|
|
45,439 |
|
|
17,943 |
|
|
39.5 |
% |
International net revenues |
|
|
144,865 |
|
|
81,911 |
|
|
62,954 |
|
|
76.9 |
% |
Net revenues |
|
$ |
464,700 |
|
$ |
406,785 |
|
$ |
57,915 |
|
|
14.2 |
% |
|
|
|
|
|
|
|
|
|
Gross profit was $14.2 million, or gross margin of 14.1% of net
revenues, in the fourth quarter of 2021, compared to $25.4 million,
or gross margin of 24.9% of net revenues, in the year-ago period.
During the fourth quarter of 2020, gross profit included $3.7
million of expenses related to inventory write-offs and reserves
attributable to COVID-19. Excluding these costs, of which there
were none in the fourth quarter of 2021, Adjusted gross profit in
the year-ago period was $29.1 million, or Adjusted gross margin of
28.5% of net revenues. Compared to Adjusted gross margin in the
year-ago period, the decrease in gross margin in the fourth quarter
of 2021 was primarily due to changes in revenue per pound due to
product mix and increased trade discounts, combined with increases
in per unit manufacturing costs including depreciation, logistics
costs, inventory write-offs and reserves, partially offset by
reduced per unit direct materials costs.
Loss from operations in the fourth quarter of 2021 was $77.7
million compared to $24.5 million in the year-ago period. The
increase in loss from operations was primarily driven by the
decline in gross profit, combined with higher operating expenses
primarily due to increased investments in marketing activities,
general and administrative expenses, primarily driven by higher
professional services fees related to recently established
consulting agreements, growth in overall headcount levels,
increased production trial activities, and higher restructuring
expenses primarily reflecting increased legal costs.
Net loss was $80.4 million in the fourth quarter of 2021
compared to $25.1 million in the year-ago period. Net loss per
common share was $1.27 in the fourth quarter of 2021 compared to
$0.40 in the year-ago period. During the fourth quarter of 2020,
net loss included $3.7 million of expenses related to inventory
write-offs and reserves attributable to COVID-19. Excluding these
costs, Adjusted net loss was $21.4 million, or $0.34 per common
share, in the fourth quarter of 2020. There were no similar costs
in the fourth quarter of 2021.
Adjusted EBITDA was a loss of $62.9 million, or -62.5% of net
revenues, in the fourth quarter of 2021 compared to an Adjusted
EBITDA loss of $9.5 million, or -9.3% of net revenues, in the
year-ago period.
Balance Sheet and Cash Flow Highlights
The Company’s cash and cash equivalents balance was $733.3
million and total outstanding debt was $1.1 billion as of December
31, 2021. Net cash used in operating activities was $301.4 million
for the year ended December 31, 2021, compared to $40.0 million for
the year-ago period. Capital expenditures totaled $136.0 million
for the year ended December 31, 2021, compared to $57.7 million for
the year-ago period. The increase in capital expenditures was
primarily due to the Company’s continued investments in production
equipment and facilities related to capacity expansion initiatives
domestically and abroad.
2022 Outlook
The Company's operating environment continues to be affected by
near-term uncertainty related to COVID-19 and its potential impact
including on demand levels, labor availability and supply chain
disruptions. Management's outlook assumes reasonable containment of
COVID-19 infection rates both in the U.S. and abroad, but the
Company acknowledges that its operating results could differ
materially from the expectations set forth below if its assumptions
related to COVID-19 and the associated effects do not materialize.
Based on management's best assessment of the environment today, the
Company is providing the following guidance for the full year
2022:
- Net revenues in the range of $560
million to $620 million, an increase of 21% to 33% compared to
2021.
Conference Call and Webcast
The Company will host a conference call and webcast to discuss
these results with additional comments and details today at 5:00
p.m. Eastern, 2:00 p.m. Pacific. Investors interested in
participating in the live call can dial 412-317-5180. The
conference call webcast will be available live over the Internet
through the “Investors” section of the Company’s website at
www.beyondmeat.com and later archived.
About Beyond Meat
Beyond Meat, Inc. (NASDAQ: BYND) is a leading plant-based meat
company offering a portfolio of revolutionary plant-based meats
made from simple ingredients without GMOs, hormones, antibiotics or
cholesterol. Founded in 2009, Beyond Meat products are designed to
have the same taste and texture as animal-based meat while being
better for people and the planet. Beyond Meat’s brand commitment,
Eat What You Love®, represents a strong belief that there is a
better way to feed our future and that the positive choices we all
make, no matter how small, can have a great impact on our personal
health and the health of our planet. By shifting from animal-based
meat to plant-based protein, we can positively impact four growing
global issues: human health, climate change, constraints on natural
resources and animal welfare. As of December 2021, Beyond Meat had
products available at approximately 130,000 retail and foodservice
outlets in over 90 countries worldwide. Visit www.BeyondMeat.com
and follow @BeyondMeat, #BeyondBurger and #GoBeyond on Facebook,
Instagram, Twitter and TikTok.
Forward-Looking Statements
Certain statements in this release constitute “forward-looking
statements" within the meaning of the federal securities laws.
These statements are based on management's current opinions,
expectations, beliefs, plans, objectives, assumptions and
projections regarding financial performance, prospects, future
events and future results, including ongoing uncertainty related to
the COVID-19 pandemic, including the ultimate duration, magnitude
and effects of the pandemic and, in particular, the impact to the
foodservice channel, operations and supply chains, growth trends,
our international expansion plans, market share, new and existing
customers and expense trends, among other matters, and involve
known and unknown risks that are difficult to predict. In some
cases, you can identify forward-looking statements by the use of
words such as “may,” “could,” “expect,” “intend,” “plan,” “seek,”
“anticipate,” “believe,” “estimate,” “predict,” “outlook,”
“potential,” “continue,” “likely,” “will,” “would” and variations
of these terms and similar expressions, or the negative of these
terms or similar expressions. These forward-looking statements are
only predictions, not historical fact, and involve certain risks
and uncertainties, as well as assumptions. Forward-looking
statements should not be read as a guarantee of future performance
or results, and will not necessarily be accurate indications of the
times at, or by which or whether, such performance or results will
be achieved. Actual results, levels of activity, performance,
achievements and events could differ materially from those stated,
anticipated or implied by such forward-looking statements. While
Beyond Meat believes that its assumptions are reasonable, it is
very difficult to predict the impact of known factors and, in
particular, the COVID-19 pandemic, and, of course, it is impossible
to anticipate all factors that could affect actual results. There
are many risks and uncertainties that could cause actual results to
differ materially from forward-looking statements made herein
including, but not limited to, the effects of global outbreaks of
pandemics or contagious diseases or fear of such outbreaks (such as
COVID-19), including on our business, financial condition, cash
flow and results of operations, including on our supply chain, the
demand for our products, our product and channel mix, labor needs
at the Company as well as in the supply chain at customers, the
timing and level of retail purchasing, the timing and level of
foodservice purchasing, our manufacturing and co-manufacturing
facilities and operations, our inventory levels, our ability to
expand and produce in new geographic markets or the timing of such
expansion efforts, the pace and success of new product
introductions, the timing of new foodservice launches, and on
overall economic conditions and consumer confidence and spending
levels; the impact of uncertainty in our domestic and international
supply chain, including labor shortages and disruption and shipping
delays and disruption; a resurgence of COVID-19 and the impact of
variants of the virus that causes COVID-19 which could slow, halt
or reverse the reopening process, or result in the reinstatement of
social distancing measures, business closures, restrictions on
operations, quarantines and travel bans; the impact of uncertainty
as a result of doing business in China and Europe; government or
employer mandates requiring certain behaviors from employees due to
COVID-19, including COVID-19 vaccine mandates, which could result
in employee attrition at the Company, suppliers and customers as
well as difficulty securing future labor needs; the impact of
adverse and uncertain economic and political conditions in the U.S.
and international markets; the volatility of capital markets and
other macroeconomic factors; our ability to effectively manage our
growth in the U.S. and abroad; our ability to identify and execute
cost-down initiatives intended to achieve price parity with animal
protein; the success of operations conducted by joint ventures,
such as The PLANeT Partnership, LLC with PepsiCo, Inc., where we
share ownership and management of a company with one or more
parties who may not have the same goals, strategies or priorities
as we do and where we do not receive all of the financial benefit;
the effects of increased competition from our market competitors
and new market entrants; changes in the retail landscape, including
the timing and level of trade and promotion discounts, our ability
to grow market share and increase household penetration, repeat
buying rates and purchase frequency, and our ability to maintain
and increase sales velocity of our products; changes in the
foodservice landscape, including the timing and level of marketing
and other financial incentives to assist in the promotion of our
products, our ability to grow market share and attract and retain
new foodservice customers or retain existing foodservice customers,
and our ability to introduce and sustain offering of our products
on menus; the timing and success of distribution expansion and new
product introductions in increasing revenues and market share; the
timing and success of strategic partnership launches and limited
time offerings resulting in permanent menu items; our estimates of
the size of market opportunities and ability to accurately forecast
market growth; our ability to effectively expand our manufacturing
and production capacity, including effectively managing capacity
for specific products; our ability to accurately forecast our
future results of operations, including fluctuations in demand for
our products and any increased competition; our ability to
accurately forecast demand for our products and manage our
inventory, including the impact of customer orders ahead of
holidays and shelf reset activities, and supply chain and labor
disruptions; our operational effectiveness and ability to fulfill
orders in full and on time; variations in product selling prices
and costs, and the mix of products sold; our ability to
successfully enter new geographic markets, manage our international
expansion and comply with any applicable laws and regulations,
including risks associated with doing business in foreign
countries, substantial investments in our manufacturing operations
in China and The Netherlands, and our ability to comply with the
U.S. Foreign Corrupt Practices Act or other anti-corruption laws;
the effects of global outbreaks of pandemics or contagious diseases
or fear of such outbreaks, such as COVID-19; the success of our
marketing initiatives and the ability to grow brand awareness,
maintain, protect and enhance our brand, attract and retain new
customers and grow our market share; our ability to attract,
maintain and effectively expand our relationships with key
strategic foodservice partners; our ability to attract and retain
our suppliers, distributors, co-manufacturers and customers; our
ability to procure sufficient high-quality raw materials at
competitive prices to manufacture our products; the availability of
pea and other protein that meets our standards; our ability to
diversify the protein sources used for our products; our ability to
differentiate and continuously create innovative products, respond
to competitive innovation and achieve speed-to-market; our ability
to successfully execute our strategic initiatives; the volatility
associated with ingredient, packaging, transportation and other
input costs; the impact of inflation across the economy, including
higher food, grocery, transportation and fuel costs; real or
perceived quality or health issues with our products or other
issues that adversely affect our brand and reputation; our ability
to accurately predict consumer taste preferences, trends and demand
and successfully innovate, introduce and commercialize new products
and improve existing products, including in new geographic markets;
significant disruption in, or breach in security of our information
technology systems and resultant interruptions in service and any
related impact on our reputation, including related to data
privacy; the ability of our transportation providers to ship and
deliver our products in a timely and cost effective manner;
management and key personnel changes, the attraction and retention
of qualified employees and key personnel, and our ability to
maintain our company culture as we grow; risks related to use of a
professional employer organization to administer human resources,
payroll and employee benefits functions for certain of our
international employees or use of certain third party service
providers for the performance of several business operations
including payroll and human capital management services; the
effects of natural or man-made catastrophic or severe weather
events particularly involving our or any of our co-manufacturers’
manufacturing facilities or our suppliers’ facilities; the impact
of marketing campaigns aimed at generating negative publicity
regarding our products, brand and the plant-based industry
category; the effectiveness of our internal controls; the
requirements of being a public company and effects of increased
administration costs related to compliance and reporting
obligations; our significant indebtedness and ability to pay such
indebtedness; risks related to our debt, including limitations on
our cash flow from operations and our ability to satisfy our
obligations under the convertible senior notes; our ability to
raise the funds necessary to repurchase the convertible senior
notes for cash, under certain circumstances, or to pay any cash
amounts due upon conversion; provisions in the indenture governing
the convertible senior notes delaying or preventing an otherwise
beneficial takeover of us; any adverse impact on our reported
financial condition and results from the accounting methods for the
convertible senior notes; estimates of our expenses, future
revenues, capital expenditures, capital requirements and our needs
for additional financing; our ability to meet our obligations under
our campus headquarters lease, the timing of occupancy and
completion of the build-out of our space, cost overruns, delays and
the impact of COVID-19 on our space demands; our ability to meet
our obligations under leases for our corporate offices,
manufacturing facilities and warehouses; changes in laws and
government regulation affecting our business, including Food and
Drug Administration and Federal Trade Commission governmental
regulation, and state, local and foreign regulation; new or pending
legislation, or changes in laws, regulations or policies of
governmental agencies or regulators, both in the U.S. and abroad,
affecting plant-based meat, the labeling or naming of our products,
or our brand name or logo; the failure of acquisitions and other
investments to be efficiently integrated and produce the results we
anticipate; risks inherent in investment in real estate; the
financial condition of, and our relationships with our suppliers,
co-manufacturers, distributors, retailers and foodservice
customers, and their future decisions regarding their relationships
with us; our ability and the ability of our suppliers and
co-manufacturers to comply with food safety, environmental or other
laws and regulations; seasonality, including increased levels of
purchasing by customers ahead of holidays, customer shelf reset
activity and the timing of product restocking by our retail
customers; the sufficiency of our cash and cash equivalents to meet
our liquidity needs and service our indebtedness and our ability to
access capital markets upon favorable terms; economic conditions
and the impact on consumer spending; impact of increased scrutiny
from stakeholders and institutional investors on environmental,
social and governance practices; outcomes of legal or
administrative proceedings, or new legal or administrative
proceedings filed against us; our, our suppliers’ and our
co-manufacturers’ ability to protect our proprietary technology and
intellectual property adequately; the impact of tariffs and trade
wars; the impact of changes in tax laws; foreign exchange rate
fluctuations; and the risks discussed under the heading “Risk
Factors” in the Company’s Quarterly Report on Form 10-Q for the
quarter ended October 2, 2021 filed with the SEC on November 12,
2021, and the Company’s Annual Report on Form 10-K for the year
ended December 31, 2021 to be filed with the SEC, as well as other
factors described from time to time in the Company's filings with
the SEC. All forward-looking statements attributable to us or
persons acting on our behalf are expressly qualified in their
entirety by the cautionary statements set forth above. Such
forward-looking statements are made only as of the date of this
release. Beyond Meat undertakes no obligation to publicly update or
revise any forward-looking statement because of new information,
future events, changes in assumptions or otherwise, except as
otherwise required by law. If we do update one or more
forward-looking statements, no inference should be made that we
will make additional updates with respect to those or other
forward-looking statements.
Non-GAAP Financial MeasuresThe Company refers
to certain financial measures that are not recognized under U.S.
generally accepted accounting principles (GAAP) in this press
release, including: Adjusted gross profit, Adjusted gross margin,
Adjusted net loss, Adjusted net loss per diluted common share,
Adjusted EBITDA and Adjusted EBITDA as a % of net revenues. See
“Non-GAAP Financial Measures” below for additional information and
reconciliations of such non-GAAP financial measures.
Availability of Information on Beyond Meat’s Website and
Social Media ChannelsInvestors and others should note that
Beyond Meat routinely announces material information to investors
and the marketplace using SEC filings, press releases, public
conference calls, webcasts and the Beyond Meat Investor Relations
website. We also intend to use certain social media channels as a
means of disclosing information about us and our products to
consumers, our customers, investors and the public (e.g.,
@BeyondMeat, #BeyondBurger and #GoBeyond on Facebook, Instagram and
Twitter, and @BeyondMeatOfficial on TikTok). The information posted
on social media channels is not incorporated by reference in this
press release or in any other report or document we file with the
SEC. While not all of the information that the Company posts to the
Beyond Meat Investor Relations website or to social media accounts
is of a material nature, some information could be deemed to be
material. Accordingly, the Company encourages investors, the media,
and others interested in Beyond Meat to review the information that
it shares at the “Investors” link located at the bottom of the
Company’s webpage at
https://investors.beyondmeat.com/investor-relations and to sign up
for and regularly follow the Company’s social media accounts. Users
may automatically receive email alerts and other information about
the Company when enrolling an email address by visiting "Request
Email Alerts" in the "Investors" section of Beyond Meat’s website
at https://investors.beyondmeat.com/investor-relations.
Contacts
Media:Shira
Zackaishira.zackai@beyondmeat.com
Investors: Fitzhugh Taylor and Raphael
Grossbeyondmeat@icrinc.com
|
BEYOND MEAT, INC. AND
SUBSIDIARIESConsolidated Statements of
Operations(In thousands, except share and per
share data)(Unaudited) |
|
|
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
|
|
2021 |
|
|
|
2020 |
|
|
|
2021 |
|
|
|
2020 |
|
Net revenues |
|
$ |
100,678 |
|
|
$ |
101,937 |
|
|
$ |
464,700 |
|
|
$ |
406,785 |
|
Cost of goods sold |
|
|
86,433 |
|
|
|
76,532 |
|
|
|
347,419 |
|
|
|
284,510 |
|
Gross profit |
|
|
14,245 |
|
|
|
25,405 |
|
|
|
117,281 |
|
|
|
122,275 |
|
Research and development
expenses |
|
|
22,336 |
|
|
|
11,047 |
|
|
|
66,946 |
|
|
|
31,535 |
|
Selling, general and
administrative expenses |
|
|
65,872 |
|
|
|
38,488 |
|
|
|
209,474 |
|
|
|
133,655 |
|
Restructuring expenses |
|
|
3,726 |
|
|
|
402 |
|
|
|
15,794 |
|
|
|
6,430 |
|
Total operating expenses |
|
|
91,934 |
|
|
|
49,937 |
|
|
|
292,214 |
|
|
|
171,620 |
|
Loss from operations |
|
|
(77,689 |
) |
|
|
(24,532 |
) |
|
|
(174,933 |
) |
|
|
(49,345 |
) |
Other (expense) income,
net: |
|
|
|
|
|
|
|
|
Interest expense |
|
|
(992 |
) |
|
|
(613 |
) |
|
|
(3,648 |
) |
|
|
(2,576 |
) |
Other, net |
|
|
144 |
|
|
|
70 |
|
|
|
(487 |
) |
|
|
(759 |
) |
Total other expense, net |
|
|
(848 |
) |
|
|
(543 |
) |
|
|
(4,135 |
) |
|
|
(3,335 |
) |
Loss before taxes |
|
|
(78,537 |
) |
|
|
(25,075 |
) |
|
|
(179,068 |
) |
|
|
(52,680 |
) |
Income tax expense |
|
|
33 |
|
|
|
2 |
|
|
|
60 |
|
|
|
72 |
|
Equity in losses of
unconsolidated joint venture |
|
|
1,801 |
|
|
|
— |
|
|
|
2,977 |
|
|
|
— |
|
Net loss |
|
$ |
(80,371 |
) |
|
$ |
(25,077 |
) |
|
$ |
(182,105 |
) |
|
$ |
(52,752 |
) |
Net loss per share available
to common stockholders—basic and diluted |
|
$ |
(1.27 |
) |
|
$ |
(0.40 |
) |
|
$ |
(2.88 |
) |
|
$ |
(0.85 |
) |
Weighted average common shares
outstanding—basic and diluted |
|
|
63,357,486 |
|
|
|
62,723,875 |
|
|
|
63,172,368 |
|
|
|
62,290,445 |
|
|
BEYOND MEAT, INC. AND
SUBSIDIARIESConsolidated Balance
Sheets(In thousands, except share and per share
data)(Unaudited) |
|
|
December 31, |
|
|
2021 |
|
|
|
2020 |
|
Assets |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
733,294 |
|
|
$ |
159,127 |
|
Accounts receivable, net |
|
43,806 |
|
|
|
35,975 |
|
Inventory |
|
241,870 |
|
|
|
121,717 |
|
Prepaid expenses and other current assets |
|
33,078 |
|
|
|
15,407 |
|
Total current assets |
|
1,052,048 |
|
|
|
332,226 |
|
Property, plant, and
equipment, net |
|
226,489 |
|
|
|
115,299 |
|
Operating lease right-of-use
assets |
|
26,815 |
|
|
|
14,570 |
|
Prepaid lease costs,
non-current |
|
59,188 |
|
|
|
— |
|
Other non-current assets,
net |
|
6,836 |
|
|
|
5,911 |
|
Investment in unconsolidated
joint venture |
|
8,023 |
|
|
|
— |
|
Total assets |
$ |
1,379,399 |
|
|
$ |
468,006 |
|
Liabilities and Stockholders’
Equity: |
|
|
|
Current liabilities: |
|
|
|
Accounts payable |
$ |
69,040 |
|
|
$ |
53,071 |
|
Wages payable |
|
155 |
|
|
|
2,843 |
|
Accrued bonus |
|
128 |
|
|
|
57 |
|
Current portion of operating lease liabilities |
|
4,458 |
|
|
|
3,095 |
|
Accrued expenses and other current liabilities |
|
20,226 |
|
|
|
4,830 |
|
Short-term borrowings under revolving credit facility |
|
— |
|
|
|
25,000 |
|
Short-term finance lease liabilities |
|
182 |
|
|
|
71 |
|
Total current liabilities |
$ |
94,189 |
|
|
$ |
88,967 |
|
Long-term liabilities: |
|
|
|
Convertible senior notes, net |
$ |
1,129,674 |
|
|
$ |
— |
|
Operating lease liabilities, net of current portion |
|
22,599 |
|
|
|
11,793 |
|
Finance lease obligations and other long term liabilities |
|
442 |
|
|
|
149 |
|
Total long-term liabilities |
$ |
1,152,715 |
|
|
$ |
11,942 |
|
Commitments and
Contingencies |
|
|
|
Stockholders’ equity: |
|
|
|
Preferred stock, par value
$0.0001 per share—500,000 shares authorized, none issued and
outstanding |
$ |
— |
|
|
$ |
— |
|
Common stock, par value
$0.0001 per share—500,000,000 shares authorized at December 31,
2021 and 2020; 63,400,899 and 62,820,351 shares issued and
outstanding at December 31, 2021 and 2020, respectively |
|
6 |
|
|
|
6 |
|
Additional paid-in
capital |
|
510,014 |
|
|
|
560,210 |
|
Accumulated deficit |
|
(376,972 |
) |
|
|
(194,867 |
) |
Accumulated other
comprehensive (loss) income |
|
(553 |
) |
|
|
1,748 |
|
Total stockholders’ equity |
$ |
132,495 |
|
|
$ |
367,097 |
|
Total liabilities and stockholders’ equity |
$ |
1,379,399 |
|
|
$ |
468,006 |
|
|
|
|
|
BEYOND MEAT, INC. AND SUBSIDIARIES |
Consolidated Statements of Cash Flows |
(In thousands) |
(Unaudited) |
|
|
Year Ended December 31, |
|
|
|
2021 |
|
|
|
2020 |
|
Cash flows from
operating activities: |
|
|
|
|
Net loss |
|
$ |
(182,105 |
) |
|
$ |
(52,752 |
) |
Adjustments to reconcile net loss to net cash used in operating
activities: |
|
|
|
|
Depreciation and amortization |
|
|
21,663 |
|
|
|
13,299 |
|
Non-cash lease expense |
|
|
3,418 |
|
|
|
2,341 |
|
Share-based compensation expense |
|
|
27,698 |
|
|
|
27,279 |
|
Loss on sale of fixed assets |
|
|
199 |
|
|
|
222 |
|
Amortization of debt issuance costs |
|
|
3,322 |
|
|
|
256 |
|
Loss on extinguishment of debt |
|
|
1,037 |
|
|
|
1,538 |
|
Equity in losses of unconsolidated joint venture |
|
|
2,977 |
|
|
|
— |
|
Net change in operating assets and
liabilities: |
|
|
|
|
Accounts receivable |
|
|
(8,463 |
) |
|
|
4,516 |
|
Inventories |
|
|
(122,666 |
) |
|
|
(38,863 |
) |
Prepaid expenses and other assets |
|
|
(21,414 |
) |
|
|
(9,699 |
) |
Accounts payable |
|
|
21,665 |
|
|
|
16,027 |
|
Accrued expenses and other current liabilities |
|
|
13,961 |
|
|
|
(1,965 |
) |
Prepaid lease costs, non-current |
|
|
(59,188 |
) |
|
|
— |
|
Operating lease liabilities |
|
|
(3,474 |
) |
|
|
(2,194 |
) |
Net cash used in operating activities |
|
$ |
(301,370 |
) |
|
$ |
(39,995 |
) |
|
|
|
|
|
Cash flows from
investing activities: |
|
|
|
|
Purchases of property, plant and equipment |
|
$ |
(135,961 |
) |
|
$ |
(57,696 |
) |
Asset acquisition |
|
|
— |
|
|
|
(15,482 |
) |
Purchases of property, plant and equipment held for sale |
|
|
— |
|
|
|
(2,288 |
) |
Proceeds from note receivable on assets previously held for
sale |
|
|
— |
|
|
|
599 |
|
Payments for investment in joint venture |
|
|
(11,000 |
) |
|
|
— |
|
Payment of security deposits |
|
|
(518 |
) |
|
|
(33 |
) |
Net cash used in investing activities |
|
$ |
(147,479 |
) |
|
$ |
(74,900 |
) |
|
|
|
|
|
Cash flows from
financing activities: |
|
|
|
|
Proceeds from revolving credit facility |
|
$ |
— |
|
|
$ |
50,000 |
|
Proceeds from issuance of convertible senior notes |
|
|
1,150,000 |
|
|
|
— |
|
Purchase of capped calls related to convertible senior notes |
|
|
(83,950 |
) |
|
|
— |
|
Debt issuance costs |
|
|
(23,605 |
) |
|
|
(1,224 |
) |
Debt extinguishment costs |
|
|
— |
|
|
|
(1,200 |
) |
Repayment of revolving credit facility |
|
|
(25,000 |
) |
|
|
(25,000 |
) |
Repayment of revolving credit line |
|
|
— |
|
|
|
(6,000 |
) |
Repayment of term loan |
|
|
— |
|
|
|
(20,000 |
) |
Repayment of equipment loan |
|
|
— |
|
|
|
(5,000 |
) |
Principal payments under finance lease obligations |
|
|
(177 |
) |
|
|
(70 |
) |
Proceeds from exercise of stock options |
|
|
8,135 |
|
|
|
9,007 |
|
Payments of minimum withholding taxes on net share settlement of
equity awards |
|
|
(3,081 |
) |
|
|
(2,275 |
) |
Net cash provided by (used in) financing activities |
|
$ |
1,022,322 |
|
|
$ |
(1,762 |
) |
Net increase (decrease) in cash and cash equivalents |
|
$ |
573,473 |
|
|
$ |
(116,657 |
) |
Cash and cash equivalents at the beginning of the period |
|
|
159,127 |
|
|
|
275,988 |
|
Effect of exchange rate changes on cash |
|
|
694 |
|
|
|
(204 |
) |
Cash and cash equivalents at the end of the period |
|
$ |
733,294 |
|
|
$ |
159,127 |
|
|
|
|
|
|
Supplemental
disclosures of cash flow information: |
|
|
|
|
Cash paid (received) during the period for: |
|
|
|
|
Interest |
|
$ |
348 |
|
|
$ |
2,564 |
|
Taxes |
|
$ |
(10 |
) |
|
$ |
18 |
|
Non-cash investing and financing activities: |
|
|
|
|
Non-cash additions to property, plant and equipment |
|
$ |
5,239 |
|
|
$ |
10,719 |
|
Operating lease right-of-use assets obtained in exchange for lease
liabilities |
|
$ |
16,701 |
|
|
$ |
4,706 |
|
Non-cash additions to financing leases |
|
$ |
580 |
|
|
$ |
— |
|
Note receivable from sale of assets held for sale |
|
$ |
— |
|
|
$ |
4,558 |
|
Reclassification of other current liability to additional paid-in
capital in connection with the share-settled obligation |
|
$ |
2,535 |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
Non-GAAP Financial Measures
Beyond Meat uses the non-GAAP financial measures set forth below
in assessing its operating performance and in its financial
communications. Management believes these non-GAAP financial
measures provide useful additional information to investors about
current trends in the Company's operations and are useful for
period-over-period comparisons of operations. In addition,
management uses these non-GAAP financial measures to assess
operating performance and for business planning purposes.
Management also believes these measures are widely used by
investors, securities analysts, rating agencies and other parties
in evaluating companies in our industry as a measure of our
operational performance. These non-GAAP financial measures should
not be considered in isolation or as a substitute for the
comparable GAAP measures. In addition, these non-GAAP financial
measures may not be computed in the same manner as similarly titled
measures used by other companies.
Adjusted gross profit and Adjusted gross
margin
Adjusted gross profit is defined as net revenues less cost of
goods sold adjusted to exclude, when applicable, costs attributable
to COVID-19 activities which are not considered to be part of the
Company’s normal business activities. Adjusted gross margin is
defined as Adjusted gross profit divided by net revenues.
Adjusted gross profit and Adjusted gross margin are presented to
provide additional perspective on underlying trends in the
Company’s gross profit and gross margin, which we believe is useful
supplemental information for investors to be able to gauge and
compare the Company’s current business performance from one period
to another.
Adjusted net loss and Adjusted net loss per diluted
common share
Adjusted net loss is defined as net loss adjusted to exclude,
when applicable, costs attributable to COVID-19, as well as other
special items, which are those items deemed not to be reflective of
the Company’s ongoing normal business activities.
Adjusted net loss per diluted common share is defined as
Adjusted net loss divided by the number of diluted common shares
outstanding.
We consider Adjusted net loss and Adjusted net loss per diluted
common share to be useful indicators of operating performance
because excluding special items allows for period-over-period
comparisons of our ongoing operations. Adjusted net loss per
diluted common share is a performance measure and should not be
used as a measure of liquidity.
Adjusted EBITDA and Adjusted EBITDA as a % of net
revenues
Adjusted EBITDA is defined as net loss adjusted to exclude, when
applicable, income tax (benefit) expense, interest expense,
depreciation and amortization expense, restructuring expenses,
share-based compensation expense, expenses attributable to
COVID-19, and Other, net, including interest income, loss on
extinguishment of debt and foreign currency transaction gains and
losses. Adjusted EBITDA as a % of net revenues is defined as
Adjusted EBITDA divided by net revenues.
Limitations related to the use of non-GAAP financial
measures
There are a number of limitations related to the use of Adjusted
gross profit, Adjusted gross margin, Adjusted net loss, Adjusted
net loss per diluted common share, Adjusted EBITDA and Adjusted
EBITDA as a % of net revenues rather than their most directly
comparable GAAP measures. Some of these limitations are:
- Adjusted gross profit and Adjusted
gross margin exclude costs associated with activities deemed to be
non-recurring or not part of the Company’s normal business
activities, which are subjective determinations made by management
and may not actualize as expected;
- Adjusted net loss and Adjusted net
loss per diluted common share exclude costs associated with
activities deemed to be non-recurring or not part of the Company’s
normal business activities, which are subjective determinations
made by management and may not actualize as expected;
- Adjusted EBITDA excludes
depreciation and amortization expense and, although these are
non-cash expenses, the assets being depreciated may have to be
replaced in the future increasing our cash requirements;
- Adjusted EBITDA does not reflect
interest expense, or the cash required to service our debt, which
reduces cash available to us;
- Adjusted EBITDA does not reflect
income tax payments that reduce cash available to us;
- Adjusted EBITDA does not reflect
restructuring expenses that reduce cash available to us;
- Adjusted EBITDA does not reflect
expenses attributable to COVID-19 that reduce cash available to
us;
- Adjusted EBITDA does not reflect
share-based compensation expense and therefore does not include all
of our compensation costs;
- Adjusted EBITDA does not reflect
Other, net, including interest income, loss on extinguishment of
debt and foreign currency transaction gains and losses, that may
increase or decrease cash available to us; and
- other companies, including companies in our industry, may
calculate Adjusted EBITDA differently, which reduces its usefulness
as a comparative measure.
The following tables present the reconciliation of Adjusted
gross profit and Adjusted gross margin to their most comparable
GAAP measures, gross profit and gross margin, respectively, as
reported (unaudited):
|
|
Three Months Ended |
|
Year Ended |
(in
thousands) |
|
December 31,2021 |
|
December 31,2020 |
|
December 31,2021 |
|
December 31,2020 |
Gross profit, as reported |
|
$ |
14,245 |
|
|
$ |
25,405 |
|
|
$ |
117,281 |
|
|
$ |
122,275 |
|
Repacking costs attributable
to COVID-19 |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
6,572 |
|
Inventory write-offs and
reserves attributable to COVID-19 |
|
|
— |
|
|
|
3,719 |
|
|
|
— |
|
|
|
4,823 |
|
Adjusted gross profit |
|
$ |
14,245 |
|
|
$ |
29,124 |
|
|
$ |
117,281 |
|
|
$ |
133,670 |
|
|
|
Three Months Ended |
|
Year Ended |
|
|
December 31,2021 |
|
December 31,2020 |
|
December 31,2021 |
|
December 31,2020 |
Gross margin, as reported |
|
14.1 |
% |
|
24.9 |
% |
|
25.2 |
% |
|
30.1 |
% |
Repacking costs attributable
to COVID-19, as a percentage of net revenues |
|
— |
% |
|
— |
% |
|
— |
% |
|
1.6 |
% |
Inventory write-offs and
reserves attributable to COVID-19, as a percentage of net
revenues |
|
— |
% |
|
3.6 |
% |
|
— |
% |
|
1.2 |
% |
Adjusted gross margin |
|
14.1 |
% |
|
28.5 |
% |
|
25.2 |
% |
|
32.9 |
% |
|
|
|
|
|
|
|
|
|
The following tables present the reconciliation of Adjusted net
loss and Adjusted net loss per diluted common share to their most
comparable GAAP measures, net loss and net loss per share available
to common stockholders—basic and diluted, respectively, as reported
(unaudited):
|
Three Months Ended |
|
Year Ended |
(in
thousands) |
December 31,2021 |
|
December 31,2020 |
|
December 31,2021 |
|
December 31,2020 |
Net loss, as reported |
$ |
(80,371 |
) |
|
$ |
(25,077 |
) |
|
$ |
(182,105 |
) |
|
$ |
(52,752 |
) |
Repacking costs attributable
to COVID-19 |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
6,572 |
|
Inventory write-offs and
reserves attributable to COVID-19 |
|
— |
|
|
|
3,719 |
|
|
|
— |
|
|
|
4,823 |
|
Product donations attributable
to COVID-19 relief efforts |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,742 |
|
Loss on extinguishment of
debt |
|
— |
|
|
|
— |
|
|
|
1,037 |
|
|
|
1,538 |
|
Adjusted net loss |
$ |
(80,371 |
) |
|
$ |
(21,358 |
) |
|
$ |
(181,068 |
) |
|
$ |
(37,077 |
) |
|
Three Months Ended |
|
Year Ended |
(in thousands, except
share and per share amounts) |
December 31,2021 |
|
December 31,2020 |
|
December 31,2021 |
|
December 31,2020 |
Numerator: |
|
|
|
|
|
|
|
Net loss, as reported |
$ |
(80,371 |
) |
|
$ |
(25,077 |
) |
|
$ |
(182,105 |
) |
|
$ |
(52,752 |
) |
Aggregate non-GAAP adjustments
as listed above |
|
— |
|
|
|
3,719 |
|
|
|
1,037 |
|
|
|
15,675 |
|
Adjusted net loss used in
computing Adjusted net loss per diluted common share |
$ |
(80,371 |
) |
|
$ |
(21,358 |
) |
|
$ |
(181,068 |
) |
|
$ |
(37,077 |
) |
|
|
|
|
|
|
|
|
Denominator: |
|
|
|
|
|
|
|
Weighted average shares used
in computing Adjusted net loss per diluted common share |
|
63,357,486 |
|
|
|
62,723,875 |
|
|
|
63,172,368 |
|
|
|
62,290,445 |
|
Adjusted net loss per diluted
common share |
$ |
(1.27 |
) |
|
$ |
(0.34 |
) |
|
$ |
(2.87 |
) |
|
$ |
(0.60 |
) |
|
Three Months Ended |
|
Year Ended |
|
December 31,2021 |
|
December 31,2020 |
|
December 31,2021 |
|
December 31,2020 |
Net loss per share available to common stockholders—basic and
diluted, as reported |
$ |
(1.27 |
) |
|
$ |
(0.40 |
) |
|
$ |
(2.88 |
) |
|
$ |
(0.85 |
) |
Repacking costs attributable
to COVID-19 |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.11 |
|
Inventory write-offs and
reserves attributable to COVID-19 |
|
— |
|
|
|
0.06 |
|
|
|
— |
|
|
|
0.08 |
|
Product donations attributable
to COVID-19 relief efforts |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.04 |
|
Loss on extinguishment of
debt |
|
— |
|
|
|
— |
|
|
|
0.01 |
|
|
|
0.02 |
|
Adjusted net loss per diluted
common share |
$ |
(1.27 |
) |
|
$ |
(0.34 |
) |
|
$ |
(2.87 |
) |
|
$ |
(0.60 |
) |
The following table presents the reconciliation of Adjusted
EBITDA to its most comparable GAAP measure, net loss, as reported
(unaudited):
|
|
Three Months Ended |
|
Year Ended |
(in
thousands) |
|
December 31,2021 |
|
December 31,2020 |
|
December 31,2021 |
|
December 31,2020 |
Net loss, as reported |
|
$ |
(80,371 |
) |
|
$ |
(25,077 |
) |
|
$ |
(182,105 |
) |
|
$ |
(52,752 |
) |
Income tax expense |
|
|
33 |
|
|
|
2 |
|
|
|
60 |
|
|
|
72 |
|
Interest expense |
|
|
992 |
|
|
|
613 |
|
|
|
3,648 |
|
|
|
2,576 |
|
Depreciation and amortization
expense |
|
|
6,753 |
|
|
|
4,023 |
|
|
|
21,663 |
|
|
|
13,299 |
|
Restructuring expenses(1) |
|
|
3,726 |
|
|
|
402 |
|
|
|
15,794 |
|
|
|
6,430 |
|
Share-based compensation
expense |
|
|
6,074 |
|
|
|
6,902 |
|
|
|
27,698 |
|
|
|
27,279 |
|
Expenses attributable to
COVID-19(2) |
|
|
— |
|
|
|
3,719 |
|
|
|
— |
|
|
|
14,137 |
|
Other, net(3) |
|
|
(144 |
) |
|
|
(70 |
) |
|
|
487 |
|
|
|
759 |
|
Adjusted EBITDA |
|
$ |
(62,937 |
) |
|
$ |
(9,486 |
) |
|
$ |
(112,755 |
) |
|
$ |
11,800 |
|
Net loss as a % of net
revenues |
|
(79.8 |
)% |
|
(24.6 |
)% |
|
(39.2 |
)% |
|
(13.0 |
)% |
Adjusted EBITDA as a % of net
revenues |
|
(62.5 |
)% |
|
(9.3 |
)% |
|
(24.3 |
)% |
|
|
2.9 |
% |
_________________
(1) |
|
Primarily comprised of legal and other expenses associated with the
dispute with a co-manufacturer with whom an exclusive supply
agreement was terminated in May 2017. |
(2) |
|
Comprised of $3.7 million in costs attributable to COVID-19,
stemming from inventory write-offs and reserves associated with
foodservice products determined to be unsalable in the three months
ended December 31, 2020, and $14.1 million in costs attributable to
COVID-19 consisting of $6.6 million in product repacking costs,
$4.8 million in inventory write-offs and reserves associated with
foodservice products determined to be unsalable, and $2.7 million
in product donation costs related to our COVID-19 relief efforts in
the twelve months ended December 31, 2020. |
(3) |
|
Includes $1.0 million in loss on
extinguishment of debt associated with termination of the Company’s
credit facility in the year ended December 31, 2021 and $1.5
million in loss on extinguishment of debt associated with the
Company’s refinanced credit arrangements in the year ended December
31, 2020. |
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