SANW - Earnings call transcript Q4 2021

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

00:04 Good morning, and welcome to the S&W Seed Company Fourth Quarter and Fiscal Year twenty twenty one Financial Results Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today’s presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note this event is being recorded. 00:32 I would now like to turn the conference over to Robert Blum with Lytham Partners. ahead. go Please

Robert Blum

future Act twenty a you joining Thank S&W With and you the year Before Safe today’s thank Company provisions Officer. Financial of statements with team that nineteen of twenty for XX:XX the June XX:XX future, the those Act XXA Exchange Section materially within one. thirty twenty including strategies the or to today eventually Securities very statements, to subject Reform forward-looking are call may, course for statements preceded could risks remarks, statements uncertainties June to twenty pursuant planned, management nineteen fiscal the events, the statements the Company and by At or to quarter conclusion twenty or us are the the for Seed factors amended company’s please that of or the projected a conference call are results future XX:XX generally made nineteen that year amended. twenty as during Wong, which such cause discuss Exchange differ please Act identified of ended as result remarks, all three the of Seed plans, statements ninety meaning Executive ended a other for thirty, Okay. Securities Listeners fourth from of and those of much, XX:XX one, the session. the company XXE note forward-looking Wong, projected we’ll Chief filings we Mark risks call call begin and Mark, thirty, And Seed Chief S&W Mr. us of Matthew and such of over Harbor fiscal company expectations, Chief five. the materially the with words the and Szot, will S&W and on of XX-K prepared Commission. turn forward-looking made made contain Private projected. open of draft, the of President by from Mark Executive the Securities multitude results representing may today that for Company. various Litigation this differ the prepared question-and-answer may Officer; expected, Section and in for proceed. With forward-looking the in results plan Securities other anticipates, cautioned me thirty are as describe let risks results said, four as XX:XX that to circumstances, Forward-looking or actual statements by Officer in should, such and

Mark Wong

start stressful would to effect our businesses, that calendar of year. we the be so difficult fiscal through Thank twenty just June twenty I to eighteen such frankly be still would two-year, hard welcome a have the continuing full very after but XX:XX the call see today. that on summer twenty like everyone by two you of all it's that would months believe saying, Robert to much, and out could COVID

be increase year dealing to continue our are also have for unfortunately twenty – that we assuming had we and difficulty COVID shortages have are that continue two businesses we we're all problem worldwide will had a other hiring as So, to companies logistics that we've issues employment to twenty with. again, XX:XX fiscal managing, and So wages.

those ship that to remember last South us these because plant to minute made get the being hold look of our America as orders, schedules all especially please Middle know, remarks is big don't said, our under the that I coordinate and way needed you the it our so to business. reorganized are going Matt and to and all the paperwork the dealing happened background the the from news control, changed instructions today, XX:XX the change at of The XX:XX the going have to so the COVID continuing to make customers. lots through on we've good at in forces the and teams all through very customers, put company We that any to net-net And are reasonably the teams stress though, that orders, shipping East that and logistics and though Asia. are booking with to shipments and far. problems ships With

a had not delay. have We

a that. question But like remember of dates, about So planting the to had in forces if date, Southern customers – is our our delays, had shipment and each seed. an us farmers that agricultural to Northern plant not in business. Hemisphere that we're crops, miss have we which delay we've There the no for a with key the so

missed initiation. we report we one not sales, it or increases of fact, Double They the year and far, date, see that the per a grass to basically continue crops. seeds are that sell still prices XX:XX in for products in the so that that that hold but returns to to with to of that farmers are ground. In we fiscal than a two. them able price high the commodity may margins able is And put their year in other value that been products be the increases recognize market get on so to might wanted last product on that those full the our from Even we delayed, will higher the XX:XX fiscal continuing that's one pressures And have believe I'm these are sell in increases to put full the although, next. are addition, afford price of we important year for price and customer though, We year very given that to end, able those terms higher it we pleased higher really are Team be quarter most be of seed and the herbicide acre course margins its delayed of to the proprietary to first will twenty planting has of planting and improving. seeds believe the

sprayed you year, sorghum. product one, are dead weeds but grass excellent, sold by field. have have leaves. the control, sorghum I of we're very the for Double is, there field very, and so are are we browning Two basically the not any when And results right? the this weeds year, some not weeds, did no grain There's last in sure, plants of the under were notice, – Team There's on at what mean And So seen we been in in over that looks that we our number optimistic has the that reasonable course the that product harvest we're of top in out, you'll does to sorghum Belt things with is we look and U. step Western very and very, sell of perform really amount well a the last the S. now seed seed sell the Corn favorable The in XX:XX the field. sorghum field.

the a yield in be end, to very be farmers harvest good get calendar weeds to would Mississippi of farmer with seeing must seed farmers and the in because twenty the good. the verifying crop the get from the and real year. fields non-existent, starting one are and The process the spring we're that planted Mountains. the good so look yields, We're right, So we're can of their back and west performance that information but can purchased our very that on data Rocky in River, the herbicide twenty

very for about once twenty Team performed excellent. two wanted this So, we're fiscal and year have final is twenty So, last optimistic will and very talk very, be little sales that well the optimistic a in about to Stevia. Double XX:XX that the field the was thing bit data will I in product

the know, of with Right all as the leafs the from in North comes stevia production stevia Ingredion, So largest you seller the world. America deal most of announced and China. now, we

the an crop. China, in is So leaf annual

the year dollars growing fast. worldwide the billion a that the XX:XX then spring pretty six is It's by So an plant one taken three in is And and get final the for in is to dollars purification that eight are crop harvested hand. then one to extraction plant U. and they the market. then million leaf to plant S. million in grown hundred product stevia The market, markets point the sold dollars and

is stevia leaves S. the to been United worldwide U. States. the the Ingredion in So working the and And a we on have produce biggest program market.

America to very our so, just And very the our bit conditions where is of system originally But little southeast discovered proprietary humid, – are XX:XX sure a South agreements is plants commercial a the on little enough in in are the where make the United wanted program Paraguay, the plant different was to which growing summers, of bit hot States, and gave production stevia similar where our like. I So our plants details. I and that of germplasm based different breeding

understand would people that. So

it – off for for harvest stevia we And a and and the strips stevia so a does by three a is stevia not advantage years leave stevia China a So, nature but we being in of perennial, crop, full basically its take perennial does leaves not customers the plant machine ground have destroy that years. we our the three the farmer of developed leaves, plant. it

have industry should and on to there and would is, mechanically asking it agreement be that, a of the who was basis leaf of back we agreement with competes that per is if hopefully, the harvest China. the was of the and again the to ground that the and big for the has viability so plant have process, produce plant years the be and plant of we year. that cover there in And obviously get call technology is would buy produce his develop what to we the wasn't leaf hand for commercial to a if the pound our farmer advantages goal understand also carbon the a in what U. XX:XX it stevia right we have leaf On we competitive production rip can a though, the have three doesn't mechanical that, the side, production leaf ourselves big next stevia the to everyone some crop but basis, Ingredion. years that it cost now, the acre that part S. a some sell also harvest, cost at a back always if produce competitive on harvest done of someday will And the So three at There's that a Ingredion. stevia XX:XX that's Ingredion every out on only that from credits you stevia that our cost and farmers cost. stevia convinced is supply with to can leaf,

with our And then to so, stevianoids to processes don't cost. to we're model excited product we've We the of control vertical that leaf not to where really company, farmer have more to model refines all leaf continue to that leaf, extracts it as and really very leaf result the the XX:XX the we're then end in sells who bigger a competitive sell a be have learned one they basically call be selling like our make continue big the will supply market, to So, customer will the is the And U.S. refinery genetics that their to and contracts industries. U.S. where the farmers, towards with as of of that who that very supply China stevia and States we're the piece we give step I – and don't a sort going buying will about profitable the that we China-based will us we which we the to now a gain taken the our third-party the are and ability in and of and there'll the stevia maintain production, biggest material that forward. addition up our markets stevia ladder it sell sell in produced under develop and the beverage sort back progress U.S. be United chains worldwide a will seller and COVID, (ph). XX:XX we're said, XX:XX that loop a business in So, excited food closed that the competitive but us to loop agreement raw seed world, but more or [stevia] These So, we are they as which in cost be the at a we the the as we it's and us. sell and all closed to agreement. a be news about that source contract addressable Ingredion produce us production U.S. for the So, a to be announcements Ingredion at customers model, we rent makes for the to it Ingredion, market the user will market. a there'll we've shortened, of in

and performance has very but on be look stevia taking But of with We've wins it new with business call for loop working not COVID some case been opportunities. stevia, who update looks Matt, about in system announced. So, increase and a just my that, financials, seed ability going where it's good, for market, to with the to I'll we excited we and is again. our that now in us two-year Team our looking have and good going remarks. markets even our the leaf just twenty assumption. turn today. then XX:XX on for the back S&W think stevia other earn the the twenty years stress in So it's Thanks with profits. follow-up those market been product details on at to our that's addressable of got full Double field with has also for Again, will business the and So over closed call many, may and come some be we're to I'll margins we're where terms is is concluding XX:XX finally many the contract

Matthew Szot

in excludes XX:XX year, of Starting to joining compared nine nine point year. percent was the million the to to everyone thanks increase which revenue million this dollars sixty Thank an with you, call Pioneer Mark prior nine point and the us dollars for on fifty core eight morning. revenues, seventeen revenue,

of twenty in logistical mind Now challenges the nine twenty Our experienced negatively widespread ports fifty at also were any during in performance the ongoing delivered we percent congestion keep ability that to in forecast that fiscal revenue overseas by of XX:XX fiscal core was one financial growth that Limited twenty complicated have whole. twenty. delayed shipments across containers our the quarter. industry particular a the of and availability precisely and impacted as timing shipments

And two, in twenty XX:XX gross we're gross twenty although, one dollars. Additionally, U. higher due to cereal percent focusing of sales over impact year total twenty expected as home we talked in announcement which of across we I core concentration twenty in XX:XX many business. the we to range and million as I August, we expenses. trucks, million to and million challenges was we turning impact do at including stress Australia want as be conservative Mark and margins million compared working but costs in to twenty decrease Clearly, are was adjusted two fiscal growth forage number had orders and was two, this against these the increases, dollars expecting persist seventy we markets, QX and twenty from point, freight Pioneer want seven coming that percent which various logistical margin growth our on to XX:XX want challenges these over as volatile from same to one of to fiscal margins revenue are show to logistical compressed putting to twenty the a hard fiscal two S. overall in of one the gross one, well. margins, mean were one, is this about of revenue revenue revenue, the point to the all due the of expect guidance still experienced Australian the be Now dynamics. place. one. core improvement these rising that the are key that for address primarily fiscal approximately in five products. we to to into wrapping and revenue revenue to market, shifted the total to We Now sales orders various want we eighty transportation. are we've clarify really issues are twenty in within will shipping XX:XX look to fiscal XX:XX eighty and core price the globe. to also in The cost certainly situation, ports widespread mix twenty the This of gross to numerous comparing given XX:XX have initiatives twenty is address inventory several sold mitigate revenue four pre-release rising sales that as to twenty adjusted overcome just that results represents eighty working meaningful fluid twenty expected operating and year. XX:XX excludes gross implementation core two. numbers. turning in mentioned hard year. twenty reflect our in in but revenue revenue Now ship the availability that as the successfully we we just percent margins, lastly, twenty. two which contracts place, five well a also in two anticipated terms twenty six QX to we our to and up fiscal improvement estimate to growth will last And the as to – revenue mentioned, come one four expect solid projecting fifteen of for twenty of eighteen further validation throughout of reference long by were XX:XX we – twenty of we we're twenty today, costs, a XX:XX percent conditions the nine at write-downs as ongoing And as be in twenty point the as twenty twenty Total quickly twenty improvements five shipped prior put compared over out delayed limited as includes of dollars million quarters, logistical been QX. lower initiatives versus congestion the products our of margins margins point our in modifying on one is in valid we're gross overall now efficiencies. – transportation compressed for of also primarily to in we're to will our primarily I Now, This QX is are and of and operational increasing other of various margins this

Now Pasture annualization five driven dollars, of cost in increase our a of were one one the by assets term this the certain non-cash expense. was operating gain million if three acquisition GAAP compared recorded do and point approximately for increase three remainder to California due expenses in of a we longer twenty depreciation gain, nine the point want Genetics and and amortization twenty million Our thirty sold point equipment as one highlight of operating non-recurring SG&A position seven hundred dollars million XX:XX R&D production on the of million one nine to incremental the us property we point sale thousand non-recurring that point dollars dollars with investments operational we and two year facilities, increase certain from dollars two and prior expenses to to in savings. the increased million I thirty consolidate exclude efficiencies for twenty. in

to two, twenty growing on are provide We operating to full the dollars, margin SG&A leverage approximately and revenue as move project year and approximately be five demonstrate dollar, focused expenses and fiscal expenses. follows. I'd business. eight We six million to guidance dollars, non-cash two amortization to development and operating five includes million which line twenty twenty clearly XX:XX the as we research approximately of for compensation be be depreciation our like Now two million to and operating expenses operating approximately holding of stock-based into point dollars. million

moving to we're million negative see, EBITDA compared can fiscal leverage you twenty the business Now supply million EBITDA dollars for dollars XX:XX the to the to due with the dedicated been costs negative one model of As in year. point to year shift in EBITDA. the facing. two, associated mentioned two. one logistical had of on and seven we've current challenges was by a impacted the timing the thirteen issues prior We of nine point revenues Twenty we twenty chain product overruns of to

various waivers us September and of EBITDA over process the twenty coming report our flexibility the cash we with of twenty we revenues in continues XXth, of at and the size growth, As in with also deliver adjusted importantly, the our that result, bank infrastructure twenty from the them, margins one, and our Australia periods. further three. did to revenue the our to a core gross provide We to we pleased in the one. the there to covenants and are logistical with So we XX:XX short coming to worked amendments with lenders June non-compliance more impact XX:XX towards extend also maturity and to and and our EBITDA challenges leverage expand twenty driving facility our and given primarily fall into periods. date as goal expect in be our renewing positive facility And of entered targets address credit for contribution flow

navigate I'll we the XX:XX Mark. certainly over area us for going that, in of with clearly challenges. with these banking periods. grateful back be coming been is our flexible But to the Australia partners that have this and to continue U.S. both are logistical and COVID-related to So through us in the have focus worked turn as We an call

Mark Wong

we agreement the We're gross Number seeing one. one twenty number And improved has one. for our Thanks, stevia Ingredion. just we XX:XX Matt. points. about what in are twenty with twenty two that story profit two put over price fair are or saw increases two, key because excited think we we margins, everybody, twenty That's in very reminding That's to goods. next addition, the big add – of doing adding control cost Team, and success gross to the Double of very trades season dollars. to gross margin profit XX:XX selling years farmer our as and cost the few in the percent on first plus course, future we're In because of a our profit this is profitable the are our

So, we're looking around twenty two call on for joining with world. conditions casting operating business in other everyone And a good even difficult appreciate our year and of the twenty the sort today. COVID businesses we

everybody So have much very day. you thank now. Bye-bye a good and

Operator

the begin now will first from Sarkis Sherbetchyan question [Operator session. We Securities. Instructions] from comes Riley B. The XX:XX question-and-answer

go ahead. You may

Sarkis Sherbetchyan

Good thank taking my question morning and Hi. XX:XX for here.

into includes slipped with to five wanted look dollars range, to million at million revenue fiscal that the start the year. dollars If guidance that to million off guidance, eighty five I the annual year from right? Just this eighty dollars core prior

a I if dollars I eighty of dollars. you guess, And line pre-announcement guidance expecting how the that for can between follow-up. guidance core seventy relates that sales? have So break I you're million million five prior subtract down one and million the to dollars eighty seventy to your real is of dollars number Maybe kind million the if to for sales range range that top

Mark Wong

Yes. XX:XX

the fiscal the two, end But important twenty the to everyone think state. you it's quarter. I fourth year for on is that of for that so So would Sarkis, correct, other be that remember what

sales twenty basically projecting are swaps two. that We over not one from into twenty those

We projecting are be twenty to not sales both two. in

projecting to three, those We in twenty be sales okay. are

we and ship we're bit especially twenty the and is two that's sales we obviously in reasons non-dormant that, year. is that conservative with So the we alfalfa. two to shipments reason that very is think end twenty having lower basically containerized can seed are we're One being in counting down. have But year, non-dormant than, I a shipping of because are dormant difficulty But the we've of alfalfa, twenty three the inventories. move side, alfalfa on still that we And other to fact going couple the plants inventories non-dormant in on we're on be said, left the There's XX:XX our was we going mainly alfalfa the we as one of that's that and don't crop be to COVID, feel, that, And gains fiscal have the we’re Matt out why from alfalfa not for amount right? fiscal assets some some two most number any of sale Remember, to twenty expected. of schedules, three inventory East, is, side, new and of shipping Australia, Middle been people in the a the in we that mainly that at had that. production of those California. non-dormant saying twenty we pulling

going that we're those on our its again, the with of but and make is we two-year terms – we these time not be and May shipping not sort four to able be me Idaho for time – ship for additional or And be in coatings of shipments prepared twenty are Australia that comes to of we're to excuse cleaned Nampa, bagging on the twenty the Boise, years. Idaho three and full able that to plant, expecting between that assuming last problems our will blending are out in right them. April, But Nampa alfalfa shipping in we our off crop so plant, Boise, new because COVID

people the fiscal one a that's than think, And us. of in why numbers, in little year We’re back are the will three. fact, most bit twenty that sort fiscal be those current pushed lower expecting from I twenty year into

Sarkis Sherbetchyan

provide a there mentioned Got your I And delineate of to some sales? twenty some type essentially that. is line to or potential Team on And numbers of as you cetera. underperforming that you what products, add think then it the the any to Double as certifications a for that, XX:XX of in it. statements pre-announcement, sorghum expecting to prior relative Care guess robust? being few is two maybe on Can kind maybe expectations? are et delays I of to contributes follow product kind you fiscal on

Mark Wong

Sure. XX:XX

right what since ones Double making that sales, were we're in look the waiting our on on those good the had in other They're farmers. real feel sure the it's seed pre-record, out. access key get product. I seed, as the So purchase So they who on farmers from that a of performance each still, that or seed hard us, region the the we for crops bell farmers XX:XX so that could to the buy best we season the quarter that year particular we now to for farmers crop, We the don't we more in call U.S., maybe guidance, good too to our us I in said the to will judicious Team really much still we start the although cow until their know yield booking think, sold very were sales give this are data you farmers we chose second farmers final December.

but for sales a tight be we quarter, two. going that to Double view should strong pretty year of are be so the have fiscal sort of will by third the a Team forecast, twenty And really what

kind and of the the no in but to me kick looks to have farmers top in road, – and damage good weeds I show the how on terms the So mean no to to cans of is don't guys field got sorghum. of there crop sort the yields the have down of you

in, You of coming and until it. get in we is now forecast which sort yield data October. to through have sort a of that It's to hard still got

first your So, sorry And about question that. Sarkis? XX:XX again,

Sarkis Sherbetchyan

which crop aside if be there under other was are lighter. Double [indiscernible] from potentially any – It's the performance, are Team bit sorghum, little I to a lines, XX:XX wondering

Mark Wong

has said used our registrations as R&D of complicated we've what gather The Yeah. a you them it's before, are a kind more experience other XX:XX the problem of the process or submission because own rules changed and desktop where Saudi’s data from submitted customers bit to operation a take then Saudi sort plots, now. and from was a to or

gross especially line, more alfalfa and create to much on also in through are that goal in believe all So moving the stickiness have that's in product that are price can bulk XX:XX the we will I comments, increases margins hold we too markets this and that's quarter And we’re my that is first margins to announced go all said to put the won't with year. really, orders we our the quarter one price in or but we profit those look and And comments, thin, ahead, orders need we're the old are Matt increases I those so alfalfa. start of the think a customer, So still because twenty average prices. of two that is bookings, in reduced the echoed of that new proprietary Remember, shipping are customer really and spirit for more good. fiscal in at hitting twenty our margins – a profit The up. twenty base two. that gross another pretty out trying still proprietary prices

– the two Matt price the expect two the the rebounded as they that margins a U.S. gains. answered we and to in sales because to even most your have through markets. I East twenty Australian addition and that's go the we that XX:XX So, quarter got question. positive And those in said increases the good hope get have places thing, in rest Middle of first are we've both coming better as will but

Sarkis Sherbetchyan

allow hop XX:XX Okay. to I'm into going questions. the others back ask to Thanks. to queue

Mark Wong

Thanks. Sure. XX:XX

Operator

Street from question Our comes Klieve Markets. Capital Lake XX:XX next from Ben

go ahead. You may

Ben Klieve

Thanks for taking my XX:XX right. All questions.

Can one so coming or of impacting herbicide degree these to outlook the the ramp inventory logistical the out products across to and you the that are First facing. impacting your of big us logistical to IQ tolerance understand issues are near-term which on closeout your and stevia, help issues that? R&D, ability you're track plans headwinds regarding those logistical alfalfa, sorghum

Mark Wong

Yes. XX:XX

Ben. So great question,

business So, is that's the nice is development in one thing seed while testing. and about our

that breeding process with inside describe to breeding DNA the we the techniques also standard techniques, but a lines. We the at do genetic that you look sorting variation So that where through molecular use crop. we're in

stuff And it's volumes. control, our is that under actually of All right? small

So not things effective actually are very So to truckload XX:XX seed later process we're our quantity there's production never selling much by the those really until growers. COVID. down when seed a

of we going in we're going. production sell need charge the we into a have that line you that issues like to plant automobiles to anything any or to product when We're farmer. product So don't the the a with product keep our sell, our parts that people that have production it that into and line real we fact own the we going product have to or grows that grows supplying you're chips

and of and XX:XX stuff is of changing closures not that you have during but question around asked. right semi-closed different the world, So the we're and ports that's COVID, or actually problem reinfections when two that shipping populations know of at year that how containers we that later, Australia of sort we amounts port large it's seed should per problem the of At mercy I a and the like many now. point schedules sell, hundreds. The in

the that's up in larger problem. amounts affected a by seed sales in decisions breeding the making we're when and that's process about COVID. of But when of at on and bulk not seed much it's later it's to control pretty So, the as development, we beginning,

Ben Klieve

Got it. XX:XX

want is to that alfalfa particularly domestic here you're with to everybody international fair or I the facing that geographical And big and is facing Okay. side challenge of the question, the look challenges specifically biggest but challenge? the it the think anyways. as business that and facing re-ask this maybe ask Is facing, which helpful. going it. on, at of already say I are sorghum not to you on get the you answered kind I'm totally That's products, When is I you're

Mark Wong

a little think like problem. U.S. It's to Middle in are a Trucking international say are major I and of of I'd the I normal. out that Australia of bit shipments mainly fair. U.S. is a differently. bit East XX:XX coming especially not problem. The that's the the mean, some out the

can can ship comes In coming also, by there's be products, Belt to people U.S., Diego port. the part of depots, towards that container other back terms be of a based correct. – had in container But in capacity But some waiting the move taken It's crane in could sales for issue, our expenses unloading Australia, trucking operations, that eastern the are, issues shipping. It's product the so same not in went we've back to So, moving Australia. one and product that the one following That's in as half opened working distribution operators that right? mostly the one. plants where of we for and – close the both at in jobs, we're twenty from XX:XX international thing ships you're we we and sales warehouse available overseas storage obviously, we that farmers. yes, twenty some do trucking operations or those office couple distribution philosophy same want didn't XX:XX And of we have a the to that and issue, which a the have but as that is and So U.S. San general, exist it's are in to so in I them we them kind problem the you're them production that, place U.S. we to because twenty more see LA, we of running and of we're Western additional budget Australia, the it's Mississippi basically sick markets if delayed. product doesn't with Corn come that that where or mean, crane into so pictures trucking. and of in the the waiting operators are River

back traditional Australia plant we're bit mitigate allow on So a back been basis. able a be production that's the leased and we're back to of east area to really because new Australia customers. and think and that the alfalfa from delivery moving Eastern going to – Adelaide cut we’re Adelaide’s we Australian in cost control the moving We in production to our our – part the us times area

Ben Klieve

the everybody you're context. – you That's more it, in I to queue. that these helpful laid the in kind out you revisit of that XX:XX that you're into caused unfolding line fiscal the twenty through of your the think for ask the longer it. All still gets last, I December get you longer all in that you facing picture Is Got everybody And of four, four big term, get guess fiscal that it. I issues question all? But see it, update. out laid when which for tech these here back twenty then kind and these that one context facing, I degree I'll in mean, you beyond, I'll challenges of trajectory outlook term to wins headwinds is provide facing – kind at and curious

Mark Wong

growth, think margin we in high both those Obviously, that XX:XX and achievable sales still is still line. was think No, trajectory basis. profitability it we high but are trajectory, on a a numbers

those sales, XX:XX end deal of performing now in but what remember super the our a – And better leaf at to not it's that's have seed the financial stevia for forecasts, deal said, so that significant well, we because sales the by I closed loop thinking Team plus. we Ingredion, We're will a time of because have already leaf, chase a with Double did growth As we're that might timeframe that the much is the talking we on stevia certainly that Ingredion, obviously S&W. selling deal. that be effect a performance in we're

Ben Klieve

XX:XX luck. these on get That issues, all me. Best And queue. all from logistical back based I'll in

Mark Wong

XX:XX Thank Ben. you,

Operator

comes Instructions] next [Operator Gerry from XX:XX Our question Sweeney.

may You ahead. go

Gerry Sweeney

and taking morning, Good Hey. Thanks call. Mark my for Matt. XX:XX

Mark Wong

Gerry. XX:XX Good morning,

Gerry Sweeney

back linked and it for – see that how Double market. little How part to playing you players now about harvest waiting this that to come the obviously licensing bit and sort the is on to distributors of access still is because strategy sorghum? strategy out Team the larger is their will XX:XX of that in yields talk Double right to other Mark, or sorghum the a this Teams

Mark Wong

companies probably our have carried early are to And and also, seeds the they're companies our for target it us. and put who Yes, that anything thousands. Pioneer share grain we sell the and the differentiates to target strategy high Corteva, shift question. a basically profitable give But it's sales own They're excellent genes to to two our and too Bayer, those percent It farmers to five product you drives We in Team. the Double and but our the following main of between market, traits certainly line the sorghum before XX:XX and brands. said sorghum, I've is little so companies. size. in Monsanto of cow proprietariness those that We're respectively definitive as these because of profits super two other them from are XX:XX sorghum us an them which of forty licensed

both your conservative terms see one the in and of years field significant we all so they results and in And more of we're and question the market, of positive those why know but of they having obviously on the us yield of for that's your Team is acres last the and pricing of the and what fair an well, and have understand results. speaking them estimating move of for farmer benefits of we've We XX:XX to to well. protection excellent benefits see of has discussions the trade is traits So the kind They point. farmer on and and that course, been we experiences are. people companies. significant hurdle data. you'll understand farmers more Double gives waiting also the begin things know through XX:XX kind in And the will of the that then want about data yield to is what to get those we what really farmer We're as

more, show. out than internally the that find estimates actually we and what our learn performs better as that forecast product hoping we're So we'll

Gerry Sweeney

XX:XX are Got the harvesting What gears to And agreement today Ingredion. the steps some the say, it. switching from leaves? to

Mark Wong

Sure. XX:XX

on appropriate. the background probably of bit industry little is a So,

basically countries most they production purchased China supplies And Circle Pure company is basically and extraction basically production a a leaf cost that leaves Asia, Ingredion company that ago, China is market year and the and the other of half the a So mainly done for reasons. were and in business. the in year, world but called in

is out it's China are industry into And and food white the I of And for think and powders so processing are purification those it plant right for taking only only taking leafs the then, in is, XX:XX material or the that to large stevia extraction the issues sold Singapore plant historical in Malaysia. that now.

expansion case, one to the If each them now, the that's billion the you but But cost other fact hard that reasons for that's sort logistics that you next new right plant future. plants, going to given build and worldwide built in big in happen what's only the of China. dollar that to market believe in is is case. plus It's the size

is agreement only of and amounts real that's but leaf our production plant is final other to China, yields in that production plant, our production – is there your having the into germplasm and go because so, year uses terms And basically China grow proprietary taking information cost get establishes the through with to world. system no we very of way the in the leaf this competitive that of unique anywhere stevia three by

science good analyze our the It's been where about the – how side this those deals agreement a of new our be step have plants million you to projecting and yields that's verifying that of hundred Until our side, see have and the the breathing our by are of with of two commit and side we're stevianoids in production research We plant goes this first we deal U.S. right? So unique would where fifty get plant, there It's of extraction would break big what be about them with the all the Ingredion breeding expect that's and dollars of materials. into the every is have in is we're are. so we're hundred XX:XX else there germplasm And with the things that then our leaf how through, new robotic system long to take and we of our each and purification like and production the see will kind that that's seller to will everything plant build yields and be big question and XX:XX built get stevia down this one, kind always the production to the with because year know partners the basically next those yes, that production that's not in out and in yields three unique data follow it and the expectation going built biggest you're so different leaf from in future. predicted fifty and of up But and all to data. the Ingredion will are would real what our built. and in is be steps production three how through we're scale we in what it's be dollars be million and going U.S. production will to how germplasm we what stevia Airgo and as lines, to But of we and we fifteen you're be? with our that's going for produced clever production – scale us discussions up, only this

Gerry Sweeney

it for Thanks. I appreciate XX:XX it. That's it. me. Got

Mark Wong

XX:XX Yeah. Thanks, Gerry.

Operator

from comes Investments. Jonathan KMS of question next Fite Our XX:XX

may You go ahead.

Jonathan Fite

appreciate I Good today. updates. morning, morning, the time Mark. your Good for Thanks XX:XX Matt.

Mark Wong

XX:XX Yes. Sure, Jonathan.

Jonathan Fite

are of just questions. and well, quarters of with hand? the looking EBITDA of of you you're looking as wondering to of cash breakeven stands on of collection, kind Just given how follow-up cash with couple burn hear to your some the good couple couple about and of management over at at next balance today and progression degree June cash a quarters? sheet the dollars receivable conversion accounts next inventory – million guys the U.S. going XX:XX the for get I cash the and but Australian of a had over couple It's kind prognosis discussions banks both

Mark Wong

investors Yes. losses it’s fair XX:XX Great company Sure. a has, it’s one question. EBITDA and that S&W has And question a ask. when should like always

there'll and bigger the they through company, powers with up balance understand or income maybe sell that cash what obviously, so some to XX:XX are when potentially raise whether towards we end sure just what the statement. But we is understand small we you that's working you year good new is kind make working those generate of we've of to entrepreneurs of party generate have you're in And come obviously the that on means, to a shares company we don't that cash. that be understand opportunities enough call more at do to small treasury more you a capital enough operations sheet the of do continue we that. the And other expect of equity the And we that things. come. non-dilutive, those So don't that funds, sales of the assets So, in be pretty deals can't do creating cash been to that sales through understand if can that.

Jonathan Fite

appreciate I that. updates. those to forward look We'll Okay. XX:XX

Mark Wong

Thanks. XX:XX

Jonathan Fite

you. Thank XX:XX

Operator

is a Sarkis Riley Sherbetchyan question from XX:XX from next Our follow-up B. Securities.

You ahead. may go

Sarkis Sherbetchyan

XX:XX Thank for the you Hey. taking follow-up.

you I XQ like margin a around Just guys slipped prepared can suppose is Can or it's the frame qualitatively, quick just that? real a about good. from going we talked Q&A the incremental to I It kind the either annual the going for those? cadence to think from benefit you five number and of quarter, dollars I gross in prior one, of guess be margins, frame million that's remarks number sounds the a period to session. but

Mark Wong

Yeah. XX:XX

Sarkis please? So want Matt, try question, to maybe answer you to

Matthew Szot

still for probably in in Mark nice fine of which shipments coming of next we're margins, thinner is and place range year over eight expand XX:XX in mean we're percentage primarily putting year innings as we carried mid really or still the in providing two And over to here talked by probably XX:XX we're early and has periods. is gross for a get But eight gross down move improvement a full to margins more as to up in expecting. we're year, Double really reminder and quarter, is QX which results about close that various as non-dormant I we nice be talked in percentage initiatives twenty nature, to points have alfalfa all, mentioned, a again improvement for percent the the out that Yeah. encouraged is the expand is And the over and Mark Sarkis historically improvement year point to think twenty, we twenty gross and that. plan. – encouraged launching the margins. look QX obviously our margins we which margins, year future runway targets it's gross couple I line not certainly Team what preliminary as products about certainly more we're in days, will five the those the And QX we're and ten seeing margins excited that three to but and about five are but proprietary year are to margin a QX we and

Sarkis Sherbetchyan

Thank you. That's Okay. me. all for XX:XX

Operator

back any turn would our concludes to over like to conference management the remarks. This I for XX:XX question-and-answer closing session.

Mark Wong

leave I that call much. is two The but very to thank want for XX:XX going in I'd And to terms better of with is Thanks year in today. good twenty growth, everyone of terms also on the messages, margins. like just everybody just another a to year being be

into twenty Double bigger as and gather sales looking. to percent towards profit laid Ingredion eight two over XX:XX like be sell more to one. then investors view twenty potentially our a raw up year we'll they remember, twenty twenty information, is customer stevia gross improvement margins, a those and addressable good the that As yield the it's who manufacturers. really, people Matt updating for of margins it moving market how we again, in are And to supplying a Team consumers and looking for product out into on It's material margins actual make really us.

It's twenty think when little in those is And how changes. under a twenty So the job. we I've done I kicked us the excited been as here. four we've little earned had business that should yes, really Teams been And great and a over hiccup stress. we're one. we all manage COVID business hard learned sort years about to of bit has better a the

twenty good two. twenty to And so we're looking forward a

bye. So the thanks thanks again, on for everybody call. being and Bye

Operator

presentation. XX:XX for The Thank conference today's concluded. attending has now you

You may now disconnect.

S&W Seed (SANW) 27 Sep 212021 Q4 Earnings call transcript