Benson Hill Transitions to Licensing Model, Improves Financial Profile in First Quarter

ST. LOUIS--(BUSINESS WIRE)--May 9, 2024--

Benson Hill, Inc. (NYSE: BHIL, the “Company” or “Benson Hill”), an ag tech company unlocking the natural genetic diversity of plants, today announced operating and financial results for the quarter ended March 31, 2024.

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“2024 represents a year of transition as we evolve our business to a licensing model. In the first quarter Benson Hill took decisive actions to strengthen our balance sheet and enhance our financial flexibility,” said Deanie Elsner, Chief Executive Officer of Benson Hill. “We also demonstrated our commitment to drive operational efficiencies and reduce operating costs, while we explore ways to optimize our capital structure following the retirement of high-cost corporate debt.”

“Benson Hill has a significant competitive advantage, a defined strategy, and a strong management team which positions us well to enter larger markets such as animal feed and biofuels,” Elsner added. “We have consistently demonstrated our ability to perform, execute, and adapt to market dynamics. We have tremendous confidence in our technology and in our team, and we look forward to delivering solid performance throughout 2024.”

Key Milestones

During the first quarter of 2024, Benson Hill achieved multiple milestones on its strategic path, positioning the Company for long-term growth and value creation:

First Quarter Results Compared to the Same Period of 2023

The following financial results exclude former Fresh Segment and Seymour, Indiana, and Creston, Iowa, processing facilities reported in discontinued operations. The reconciliation of non-GAAP financial measures can be found in the accompanying financial tables.

Outlook

“As we transition our business to a licensing model, our revenues and costs will be lower, and our margins will increase over time, which will drive improvement in the quality of our earnings,” said Susan Keefe, Chief Financial Officer of Benson Hill. “Our achievements in meeting milestones with partners and advancing R&D efforts serve as a strong foundation for the next stage of Benson Hill’s growth, supporting our pursuit of additional sources of capital.”

Additional Details

Additional information about Benson Hill’s results can be found in the Company’s shareholder letter and in the Current Report on Form 8-K filed today with the SEC. Documents are also posted at investors.bensonhill.com.

About Benson Hill

Benson Hill moves food forward with the CropOS ® platform, a cutting-edge food innovation engine that combines data science and machine learning with biology and genetics. Benson Hill empowers innovators to unlock nature’s genetic diversity from plant to plate, with the purpose of creating nutritious, great-tasting food and ingredient options that are both widely accessible and sustainable. More information can be found at bensonhill.com or on X, formerly known as Twitter at @bensonhillinc.

Use of Non-GAAP Financial Measures

In this press release, the Company includes references to non-GAAP performance measures. The Company’s management uses these non-GAAP financial measures to facilitate financial and operational decision-making, including evaluation of the Company’s historical operating results. The Company’s management believes these non-GAAP measures are useful in evaluating the Company’s operating performance and are similar measures reported by publicly listed U.S. competitors, and regularly used by securities analysts, institutional investors, and other interested parties in analyzing operating performance and prospects. These non-GAAP financial measures reflect an additional way of viewing aspects of the Company’s operations that, when viewed with GAAP results and the reconciliations to corresponding GAAP financial measures, may provide a more complete understanding of factors and trends affecting the Company’s business. By referencing these non-GAAP measures, the Company’s management intends to provide investors with a meaningful, consistent comparison of the Company’s performance for the periods presented. These non-GAAP financial measures should be considered supplemental to, and not a substitute for, financial information prepared in accordance with GAAP. The Company’s definition of these non-GAAP measures may differ from similarly titled measures of performance used by other companies in other industries or within the same industry. In addition, the Company has and may in the future modify how it calculates non-GAAP performance measures. Because non-GAAP financial measures exclude the effect of items that will increase or decrease the Company’s reported results of operations, management strongly encourages investors to review the Company’s condensed consolidated financial statements and publicly filed reports in their entirety. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the tables accompanying this press release.

Cautionary Note Regarding Forward-Looking Statements

Certain statements in this letter may be considered “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements generally relate to future events or the Company’s future financial or operating performance and may be identified by words such as “may,” “should,” “expect,” “intend,” “will,” “estimate,” “anticipate,” “believe,” “predict,” or similar words. These forward-looking statements are based upon assumptions made by the Company as of the date hereof and are subject to risks, uncertainties, and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. These forward-looking statements include, among other things, statements regarding: the Company’s progress toward an asset-light business model, and the anticipated pace of such transition; statements regarding the Company’s financial and operating performance during its business transition; statements regarding the Company’s cost-cutting measures under its expanded Liquidity Improvement Plan and other cost-saving measures, actions to implement such plan, and the anticipated benefits of and timeline to implement such plans; statements regarding the Company’s current expectations and assumptions regarding the industries and markets in which it operates, including its transition to an asset-light business model to serve broadacre animal feed markets; statements regarding strategic partnership and licensing opportunities; statements regarding the Company’s anticipated liquidity, path to profitability, and runway for growth; expectations regarding the sources of expected revenues, costs, profit and earnings; projections of market opportunity; statements regarding the potential and capabilities of its innovation pipeline and the expected timeline for the commercialization of the Company’s current and anticipated innovations; expectations regarding the Company’s ability to serve a broadacre strategy through partnerships and licensing; statements regarding the Company’s acreage acquisition plans; the anticipated commercial and nutritional benefits of the Company’s UHP-LO soybean meal, including any expectation that the findings associated with the recent trial can be repeated or improved upon in the future, including in broadacre application; the potential adoption of UHP-LO by poultry producers or other animal companies, soybean processors, or farmers; potential strategic partnership and licensing opportunities; current projections and assumptions regarding the Company’s business and the industries and markets in which the Company currently operates or plans to operate, including the broadacre animal feed market; expectations regarding the Company’s ability to serve a broadacre strategy through partnerships and licensing; the Company’s ability to identify and evaluate its strategic alternatives and effect potential strategic opportunities in ways that maximize shareholder value; expectations regarding the Company’s ability to continue as a going concern; statements regarding execution of the Company’s business plan, the strategic review of the Company’s business, and the Company’s executive leadership transition; any financial or other information based upon or otherwise incorporating judgments or estimates relating to future performance, events or expectations; statements regarding the Company’s strategies, positioning, resources, capabilities, and expectations for future performance; estimates and forecasts of financial and other performance metrics; the Company’s outlook, and financial and other guidance; and management’s strategy and plans for growth. Factors that may cause actual results to differ materially from current expectations include, but are not limited to: risks associated with the Company’s ability to generally execute on its business strategy, including its transition to an asset-light business model to serve broadacre animal feed markets in a timely manner with sufficient liquidity; risks relating to acreage acquisition; risks associated with developing and maintaining partnering and licensing relationships in an asset-light business model, and maintaining relationships with customers and suppliers; the risk that the Company will not realize the anticipated benefits of the divestiture of its soy processing facilities; risks associated with the loss of revenues from such facilities; risks associated with growing and managing capital resources; risks associated with changing industry conditions and consumer preferences; risks associated with the Company’s cost-cutting measures under its expanded Liquidity Improvement Plan and other cost saving measures, including potentially adverse impacts on the Company’s business and prospects even if such plans are successful; the risk that the Company’s actions relating to cost-cutting measures under its expanded Liquidity Improvement Plan and other cost saving measures may be insufficient to achieve the objectives of such plans; liquidity and other risks relating to the Company’s ability to continue as a going concern; risks associated with the Company’s ability to grow and achieve growth profitably, including continued access to the capital resources necessary for growth; risks relating to the failure to raise additional financing to satisfy the Company’s cash needs; risks associated with the Company’s execution of its executive leadership transition, including, among others, risks relating to maintaining key employee, customer, partner and supplier relationships; risks relating to the Company’s exploration of strategic alternatives; risks associated with the failure to realize the anticipated commercial or nutritional benefits of the Company’s UHP-LO soybeans; risks that the benefits validated by the recent trial may not be able to be repeated or improved upon in the future, including in broadacre application; risks associated with the accuracy and repeatability of feeding trials generally; risks associated with the effects of global and regional economic, agricultural, financial and commodities market, political, social and health conditions; the effectiveness of the Company’s risk management strategies; and other risks and uncertainties set forth in the sections entitled “Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements” in our filings with the SEC, which are available on the SEC’s website at www.sec.gov. The Company can make no assurances that it will be able to raise additional financing, improve its liquidity position, or continue as a going concern. Nothing in this letter should be regarded as a representation by any person that the forward-looking statements set forth herein will be achieved or that any of the contemplated results of such forward-looking statements will be achieved. There may be additional risks about which the Company is presently unaware or that the Company currently believes are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. The reader should not place undue reliance on forward-looking statements, which speak only as of the date they are made. The Company expressly disclaims any duty to update these forward-looking statements, except as otherwise required by law.

 

Additional information about Benson Hill’s results can be found in the Company’s shareholder letter and in the Current Report on Form 8-K filed today with the SEC. Documents are also posted at investors.bensonhill.com. (Photo: Business Wire

Benson Hill (BHIL) Transitions to Licensing Model, Improves Financial Profile in First Quarter. Benson Hill today announced operating and financial results for the quarter ended March 31, 2024. (Photo: Business Wire)

JERUSALEM (AP) — The helicopter crash in which Iranian President Ebrahim Raisi, the country’s foreign minister and other officials were killed is likely to reverberate across the Middle East, where Iran’s influence runs wide and deep.

That's because Iran has spent decades supporting armed groups and militants in Lebanon, Syria, Iraq, Yemen and the Palestinian territories, allowing it to project power and potentially deter attacks from the United States or Israel, the sworn enemies of its 1979 Islamic Revolution.

Tensions have never been higher than they were last month, when Iran under Raisi and Supreme Leader Ayatollah Ali Khamenei launched hundreds of drones and ballistic missiles at Israel in response to an airstrike on an Iranian Consulate in Syria that killed two Iranian generals and five officers.

Israel, with the help of the United States, Britain, Jordan and others, intercepted nearly all the projectiles. In response, Israel apparently launched its own strike against an air defense radar system in the Iranian city of Isfahan, causing no casualties but sending an unmistakable message.

The sides have waged a shadow war of covert operations and cyberattacks for years, but the exchange of fire in April was their first direct military confrontation.

The ongoing war between Israel and Hamas has drawn in other Iranian allies, with each attack and counterattack threatening to set off a wider war.

It's a combustible mix that could be ignited by unexpected events, such as Sunday's deadly crash.

Israel has long viewed Iran as its greatest threat because of Tehran's controversial nuclear program, its ballistic missiles and its support for armed groups sworn to Israel's destruction.

Iran views itself as the chief patron of Palestinian resistance to Israeli rule, and top officials for years have called for Israel to be wiped off the map.

Raisi, who was a hard-liner viewed as a protégé and possible successor of Khamenei, chastised Israel last month, saying “the Zionist Israeli regime has been committing oppression against the people of Palestine for 75 years.”

“First of all we have to expel the usurpers, secondly we should make them pay the cost for all the damages they have created, and thirdly, we have to bring to justice the oppressor and usurper," he said.

Israel is believed to have carried out numerous attacks over the years targeting senior Iranian military officials and nuclear scientists.

There is no evidence Israel was involved in Sunday's helicopter crash, and Israeli officials have not commented on the incident.

Arab countries on the Persian Gulf have also long viewed Iran with suspicion, a key factor in the decision of the United Arab Emirates and Bahrain to normalize relations with Israel in 2020, and of Saudi Arabia to consider such a move.

Iran has provided financial and other support over the years to the Palestinian militant group Hamas, which led the Oct. 7 attack into Israel that triggered the Gaza war, and the smaller but more radical Palestinian Islamic Jihad, which took part in it. But there is no evidence that Iran was directly involved in the attack.

Since the start of the war, Iran's leaders have expressed solidarity with the Palestinians. Their allies in the region have gone much further.

Lebanon's Hezbollah militant group, Iran's most militarily advanced proxy, has waged a low-intensity conflict with Israel since the start of the Gaza war. The two sides have traded strikes on a near-daily basis along the Israel-Lebanon border, forcing tens of thousands of people on both sides to flee.

So far, however, the conflict has not boiled over into a full-blown war that would be disastrous for both countries.

Iran-backed militias in Syria and Iraq launched repeated attacks on U.S. bases in the opening months of the war but pulled back after U.S. retaliatory strikes for a drone attack that killed three American soldiers in January.

Yemen's Houthi rebels, another ally of Iran, have repeatedly targeted international shipping in what they portray as a blockade of Israel. Those strikes, which often target ships with no apparent links to Israel, have also drawn U.S.-led retaliation.

Iran's influence extends beyond the Middle East and its rivalry with Israel.

Israel and Western countries have long suspected Iran of pursuing nuclear weapons in the guise of a peaceful atomic program in what they see as a threat to non-proliferation everywhere.

Then-President Donald Trump's withdrawal from a landmark nuclear pact between Iran and world powers in 2018, and his imposition of crushing sanctions, led Iran to gradually abandon all the limits placed on its program by the deal.

These days, Iran is enriching uranium to up to 60% purity — near weapons-grade levels of 90%. Surveillance cameras installed by the U.N. nuclear agency have been disrupted, and Iran has barred some of the agency's most experienced inspectors. Iran has always insisted its nuclear program is for purely peaceful purposes, but the United States and others believe it had an active nuclear weapons program until 2003.

Israel is widely believed to be the only nuclear-armed power in the Middle East but has never acknowledged having such weapons.

Iran has also emerged as a key ally of Russia following its invasion of Ukraine, and is widely accused of supplying exploding drones that have wreaked havoc on Ukraine's cities. Raisi himself denied the allegations last fall in an interview with The Associated Press, saying Iran had not supplied such weapons since the outbreak of hostilities in February 2022.

Iranian officials have made contradictory comments about the drones, while U.S. and European officials say the sheer number being used in the war in Ukraine shows that the flow of such weapons has intensified since the war began.

In this photo provided by Moj News Agency, rescue teams' vehicles are seen near the site of the incident of the helicopter carrying Iranian President Ebrahim Raisi in Varzaghan in northwestern Iran, Sunday, May 19, 2024. A helicopter carrying President Raisi, the country's foreign minister and other officials apparently crashed in the mountainous northwest reaches of Iran on Sunday, sparking a massive rescue operation in a fog-shrouded forest as the public was urged to pray. (Azin Haghighi/Moj News Agency via AP)

An Iranian woman prays for President Ebrahim Raisi in a ceremony at Vali-e-Asr square in downtown Tehran, Iran, Sunday, May 19, 2024. A helicopter carrying President Raisi, the country's foreign minister and other officials apparently crashed in the mountainous northwest reaches of Iran on Sunday, sparking a massive rescue operation in a fog-shrouded forest as the public was urged to pray. (AP Photo/Vahid Salemi)

People pray for President Ebrahim Raisi in a ceremony at Vali-e-Asr square in downtown Tehran, Iran, Sunday, May 19, 2024. A helicopter carrying President Raisi, the country's foreign minister and other officials apparently crashed in the mountainous northwest reaches of Iran on Sunday, sparking a massive rescue operation in a fog-shrouded forest as the public was urged to pray. (AP Photo/Vahid Salemi)

FILE - People gather around a component from an intercepted ballistic missile that fell near the Dead Sea in Israel, Saturday, April 20, 2024. The apparent crash of a helicopter carrying Iranian President Ebrahim Raisi, the country's foreign minister and other top officials is likely to reverberate across the Middle East. Tensions have soared since the start of the Israel-Hamas war, and Israel and Iran directly traded fire for the first time ever in April. (AP Photo/Itamar Grinberg, File)

FILE - Iranian worshippers chant slogans during an anti-Israeli gathering after Friday prayers in Tehran, Iran, Friday, April 19, 2024. The apparent crash of a helicopter carrying Iranian President Ebrahim Raisi, the country's foreign minister and other top officials is likely to reverberate across the Middle East. Tensions have soared since the start of the Israel-Hamas war, and Israel and Iran directly traded fire for the first time ever in April. (AP Photo/Vahid Salemi, File)