SANW - Earnings call transcript Q4 2022

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Operator

Good morning, and welcome to the S&W Seed Company’s Fourth Quarter and Fiscal Year 2022 Financial Results Conference Call. All participants will be in a listen-only mode. [Operator Instructions] Please note, that this event is being recorded. I would now like to turn the conference over to Robert Blum with Lytham Partners. Please go ahead.

Robert Blum

right. All year and financial for Company results fourth and much to us for you XX, quarter the June discuss for fiscal thank so joining all today the XXXX. Thanks ended XXXX S&W Seed With are us today Mr. on representing company call the the President Officer. Chief Chief and Wong, Officer; and Mark Horton, Betsy Executive Financial session. today's of conclusion open the remarks, we'll the call At prepared for a question-and-answer

this Act management during remarks, of Before note, that of of the as the XXE with of amended. the Private Act of by Securities of Safe made Company Seed prepared the XXXX forward-looking meaning and please call forward-looking such team begin the contain the of are S&W we Litigation made statements Reform of Act XXXX the as may And pursuant statements, conference course XXXX. amended of statements Securities provisions Section Securities within to XXA Exchange Section Harbor

XX-K S&W the Securities Chief Mark call a please including said, results the by subject in actual XXXX will may, and statements future are describe Company's With me the with XX, strategies Executive uncertainties from differ are Seed turn that such identified to projected or cautioned materially filings a statements expected, that that forward-looking result should, the proceed. or events, or Mark, Wong, as multitude plan the future ended preceded may the that to various in generally of by or Commission. to future, Exchange draft, of anticipates, expectations, and Company. projected. Forward-looking eventually from Listeners as forward-looking those such or plans, results differ risks statements other words those company the risks in materially could made factors the are other fiscal risks Officer cause for statements, and and and circumstances, over projected June results for year planned, let

Mark Wong

everyone to the Robert, call. and Thank welcome you,

the But a all basically got the questions. any I've wanted your can today. presentation cough I probably bit As during for you so presentation be apologize for there to of I available of that's too raspy cold, tell, and a myself make or

I as value, in centers. quarter, the structure align key key our outlined on press developing while mentioned, release, So in to of support we we moving focused last centers remain to the cost these

As a which driver, tolerant resistance are key value trait centers talked first, the which last U.S. operations, of reminder next our And sorghum what we is of solution. herbicide Team. GMO quarter, value, our includes -- our generation, our about lead Double

but encompasses our forage International which where base, and lower customer is business, historically business, market our S&W Next, share. a profitable margin has alfalfa strong

alfalfa we unique capabilities crops, research and production move looking where our -- and extracted of and unique and and In finally, in to and be our to value profitability. germplasm, development production operations, S&W facilities. by must And U.S. specialty be opinion, are our it sorghum management of valuable each stevia have research the we has these and to leverage areas camelina. and Third, our must

excuse our me, profitability. towards the key value, to forts, and need -- we cost these centers addition In align drive business these various key on to developing to steps execute four restructuring structure of

$X our several of million the goals. implementing steps to We're efforts, in detailed alignment plan operating achieve On have cost the expenses XXXX. we remove our fiscal these from to

breeding European Trigall year of combine a is XXXX. Australia Sunflower which have venture finalizing quarter efforts that wheat operations which We savings our Florimond a Solutions Crop operation. fully XXs with that centers European anticipate a of during Genetics, key a we between business JV of We wheat rationalized our on in recognize from a not We are dollars this XXX,XXX sustainable losing of activities our focus model. is second and approximately we per with as that would value, closing company. deal cost billions joint Desprez, is Bioceres Similarly, the

And discuss for even our first more We going actions XXXX. break will projections year. to are significantly current EBITDA should the shareholders we the XXXX that closer time drive our the give detail fiscal our fiscal in company on for to

corn, update sorghum, let U.S. biggest key provide the on here. as We for to same yields I believe is such the Excuse our the in trait. obviously, revolutionize So and water crops me by a market other centers and sorghum have value. which of quick our is led Double way weed cotton. has in enhanced of driver our sorghum first, potential Double when XXXX soybeans, drink technologies Team U.S. Team control me, business, the

been stated have farmers has I Double tremendous the response Team. from to As

and fiscal we S&W enter addition of to will The partners which the with in highly also market a the sorghum gains expertise distribution Double Team. leverage key selling Team. be nine Team our we key XXXX brand, to label other Partners we're in We should potential currently utilize looking As private in private have Double areas private distribution. opportunities, Double believe filing sorghum to in number label expand grain geographic partners ability label share systems beneficial and at

genetics, both conventional our Additionally, performance. push Nebraska a we all Double into making new top Team are North as and strong as which with have Texas, Kansas well

sorghum farmers. genetics Team to is advantages traditional our number provide gem, of a Double the While clearly key

have biggest job limiting done have is as front, that the tremendous seem taken of As drive production have On have year, U.S. other steps by key Ultimately, projections. our stated, Double our the which traditional we Team on stress. along a planted of I is products focus year, production portfolio we such U.S. made including production result, seed line. product Double million five be to sorghum From about is and maximizing concerns limit of ones to states, a that sales we not seed. factors the and ongoing that heat standpoint, during point home to a sold order we pulling will grain with sorghum $X remain changes number Currently, XX% the staff last the sales One entire availability product tremendous sorghum any on portfolio introductions awareness the lift -- to our DT. farmers. we have line. targets one our freezing farming at farmers and are our and we of of of key we sorghum will sales we within believe risks But taken to Kansas, sorghum quality Team our harvest acres mentioned, some natural white and last sales force seeing to have our of hit track support in we as grain to

year. are XXXX We $X $XX million, of Double an Team revenue from estimating of from in last increase million fiscal approximately

recovery of profile her increase the softer up expect US the the led year-over-year a drought sorghum about Also Oklahoma based sorghum our hybrids. the products. grain impacted and a leads in of and than to Given acres overall more -- planting combined prices farmers war of rather with there the a a in million add presentation. in approximately acres, Ukraine a planted as the EBITDA traditional specifics and contribute acres the on this $X volume this line was line. of We over high we $X sorghum without non-DT chose coming to drought demand some close. farmer the Without this corn corn rapid we to lower was otherwise record and sorghum couple that dollars On high thought had drop we our believe incremental top to in details These a interest the over million we to excuse the expect traditional in therefore Texas the is season factors profit will to in acres by farmers sorghum that increases the a should decline EBITDA. us repeat will past million conditions, acres extreme DT anticipated, more decisions, XXXX. provide Betsy a -- season. in Higher and historic of bottom for me a hybrids, and in million West believe to in sorghum historic,

thank Let get me international water, about a drink bit of little a you forage. now and talk take and

strong is and countries provide. and diversified non and seed which distribution our distributors annual northern production which value cereals, sub as grasses, production. addressing hemisphere medic, the clovers, in forage, segment than the more clovers, pasture U.S. within such include global our markets. alfalfa proprietary to capabilities, and Our things the southern The distributors are batch, products In this XX component in key both

operational the However, encountered due the year area year fourth of have which the at to and this encounter where similar revenue of logistical we delay continue as resulted last challenges, is of during biggest of what fiscal to is the This shipping we year. and ultimately, XXXX quarter, shipments also end the the had quarter the we our lack in containers. to missed

we about However, in revenue $X in that QX QX XXXX. did in of expected ship was million

fully a we So anticipating QX revenue strong are number.

delays to XXXX. continue We repeating prevent of proactive from these types to take in actions

things. higher tight see between alfalfa year-over-year. about remain the majority few and harvest forces macro me international any control be and is forage demand the fiscal given average year. strong at June. to end talk vast timelines let positive the side, and We our the However, expect and negative remain a last shipped outside the shipment products prices strong, non-dormant for being market believe to global selling of sales able we XX% capture of Further remains This

average declared improve consecutive pricing. such we in will it third bring and above grasses. -- however, driver -- The year has cereals, Australia, international rainfall which our for quick Niña of for declared top is has for the seed will a options which and Additionally, as demand La been

improved will the to in lines is remain line dynamics. in we bottom And benefit and the we We this area we remain for the concern, potential we this Betsy As up expand upside are forage demand results XXXX. position and there and global a within are the the and I but on supply year. should on international mentioned issues assumptions. our believe think better the benefit coming both top guidance from in expect fiscal the optimistic year operations. in logistical pricing Clearly, from

bit about goes. of a it Now kind steady, basically In segment, markets. the the as forage see we U.S. U.S.

and forage of we nice to $XX with key $XX a the on segment revenue or annual quality desire diseases Operationally, resistance is high and expect. emphasis dollars customers base what yield have germplasm about within so between our continue to to base million We in stress. its as business

which However, In assets the beyond as we the specialty with space Idaho, germplasm processing and such remain camelina can crops biofuels here the in believe Napa, the we utilize area. station in facilities base, real crop our breeding

of processing interest and the seed, we potential biofuel leverages company many have from capabilities As breeding, before, do which oil for oil production, camelina. I've production, it our of cleaning said packaging and partners

year. XXX XXXX the a enter seed we quarter in desirable to that other Ingredion. goal fourth acres the one including and with for in planting we in the beneficial in years, the quarter, As harvest which future. seed fall Remember in We Stevia by camelina capable, model to XXXX. market providing optimistic technology three stated, full seed harvest in in global all are and in we sales the we harvested camelina XX-acre specialty to I for It fully breeding harvest small a partnership where North more with I Stevia for are camelina, and are we the are had harvest or for continue to distribution work we highly our crops, followed to provider, integrated In our a production, is company China you only look mutual there plot seeds, Carolina, information a specific of forward crop, production. mind, about pilot production biofuel had With they year. crop specialty this scale that is next as XX that be next a of which expertise in

a XX-acre We in planned also expansion had XXXX.

in more get is U.S. to the We to XXXX. have production lead fourth I'll in stevia from this consumer are of on it logistics third transportation similarly converted the partnership, and through Ingredion have here. to the The by quarters goal working report and grade XXXX.

little bit high a at talk Let's a level.

in which that assumptions $XX uptick pickup Double to is DT forward led a forge and by drop I reasonable, high this think trade in sorghum million macro on margin and logistics fiscal believe be We the in operations business million The Looking 'XX. that growth for in difficulty I more mentioned million OpEx U.S. will is a very reasonable a a The we related about believe X of details products. $XX there Betsy costs The Team and detail products. million sales. and coupled $XX our sorghum made to volume. by million $X our to the few Within we current drop of Further base from you and have give line. elimination to could the also. traditional the growth. due here on our driving, products, around bottom LCM issues that our for We end high charges All our cost forage there's I million think pricing operations, could some the think with give will upside end this is too. calls international before. dry you low some million both outline of reductions, $XX that continued EBITDA significantly will that with potential

the for assumptions will XXXX year. a our shot are believe reducing fiscal and highly goals We profitability and good We have attainable. our at losses

to We have fiscal assumptions reality. made to or S&W. are execute them provide out agreements biofuel want And may that hard for we which zero assumptions, stevia I in additional year a point XXXX make to working upside related any to

Let then Betsy, be we'll please me go answer happy now take and to Betsy through she'll some and the your to presentation. presentation numbers over of some the you. the over questions. of Thank and conclude turn

Betsy Horton

And this Mark. everyone Thanks, us call thanks on to the joining morning.

unfortunately partially revenue on Mark fourth compared year, was $XX the shipments result lower Core was to revenue million, for increased were for We product offset The came pasture increase East to quarter that due this prior primarily here a which business $XX.X and a revenue be core the service to in into referenced revenue sales of the the year. the $XX.X XXXX in discussed. during core million treating alfalfa million quarter The and in within logistical it in pioneer the to Australia, was by million year the be forage packaging compared In to and of that line. for region, decrease services. our to revenue ago. slight decline start international Middle an fiscal $XX.X can third attributed Let's fruition. excludes to increase risk our made unable challenges call X.X% revenue sales of

about million did revenue $X However, see we July. of shipped in

revenue strong million for a seeing FY are we number of $XX of So QX 'XX. plus

XXXX, important core of time, reiterate core quarter completed that and the was by were your For and total revenue in XXXX. the 'XX. we revenue 'XX last one affected third about Pioneer. million in revenue note revenue had periods same of in $XX.X $XX.X of the past in number QX only to fiscal I the fourth was fiscal reference, The in QX both Pioneer of of quarter core million so An want not we've agreement made

fiscal a had $XX as bringing whole XXXX revenue to million. 'XX revenue fiscal $XX.X for of However, million, total

forward, revenue Going will there core basis. reference a comparable not our financials be in to a on

FY our million. million want $XX $XX 'XX range to revenue discuss is I which of Next, currently to a guidance,

from the bridge million growth to in million $XX following XXXX making to $XX million we to in look we as are $XX 'XX assumptions. So fiscal

low taking from and of from about end of flat revenue related about volume. into are into our million coming the $X from higher $X On half from account million pricing Double taking incremental And growth international sorghum we we traditional attributable growth At in in of in simply operations. forage with guidance, improvements revenue and our in approximately in $X the coming end the the account operations, half non-DT million are growth Team a rest the to operations. guidance, then

gross XX.X% were turning fiscal in year. margins inventory XX.X% XX% the fiscal in adjusted XXXX, in to prior Adjusted impact the of X.X% margins. excludes gross margins were GAAP of margins, which year. to Now write-downs the compared prior in to compared gross XXXX,

we were results, again, this margins However, XX%. if gross the to from last adjusted Pioneer repeated only last year's would year not which exclude have contributions year, from been were

do XX% XX.X%. to million. So excluding QX in inventory the improved write-down want from and a of without inventory take our gross moment to to I $X.X margins pioneer address write-down

In been As we the the inventory over coming the At we we to year of reserve inventory generation reserve very and we the we discussed that process whereby digging established with timing our valuation. that QX, revenue to in really have of management QX, into match plan on focused write-downs. sufficient lifecycle the time, reserve period believe hybrid. each build the cover of was future a

sorghum However, in incredibly And that drove these inventory in proactively Ukraine germination management Texas we our to well the values. rates so big improving critical demand commodity drought can us for the focused the traditional war from lifecycle let in reduce for inventory disruption downs year Oklahoma, This our severe on our industry. inventory for as resulting at with combined in and future. as so know We write the very QX. global hybrids softer is our management we're end, lower avoid

this Mexico We address have other which planting one, extend an our streamlining to two with Three storage portfolios inventory Two, is larger to portfolio in our seasons to issue, number pricing a write includes, And volumes hybrids I multi-point for aligning enhancing some strategy among opportunity the but and production strategically sell And fewer having products mentioned hybrids seed U.S. last our additional and sell our participating downs part like in forecasting. quarter, to their Four, five, earlier the Mexico. of in improving procedures. seed quality industry. lifecycle. things,

lower area reserve methodology the think I place lifecycle you does With shortly. for have of approximately we of impacts. expectations will be We million lifecycle I the appropriate solid these XXXX. bridge fiscal meaningful this the sizeable we improvement will a is an assure our $X However, charges in so to we and drive amount cost our avoid should repeat. efforts, of this time hand. or that one through management have not EBITDA do reserve this amount part provide reduction that continue on a our of market inventory EBITDA improvements, large of to focus of in an full reflects one-time

we'll Now expenses. transition operating to

Our a compared $XX.X Of the were of to charge. $X.X $X.X million depreciation million impairment of in from expenses and R&D increase to and million amortization now related with for approximately million $XX.X severance GAAP The our in This year. million, expenses compared $XX.X spend fiscal R&D $XX.X XXXX prior executive the operating 'XX. comprised program. in SG&A goodwill $X.X SG&A to change by operating in $X.X and expenses million offset shuttered in largely Sunflower in to R&D million reduced million and $XX.X year-over-year leadership is other fiscal attributable

ended adjusting for result repeating all we over million of when the in of XXXX. on So The our items, impairment goodwill was nearly non the year quarter the full capitalization a a $X.X those decline fiscal sustained charge related stock year to were the market common June of company's of basis. XX the impairment the fourth year flat during

the decrease today, and Looking back related R&D $X at expenses those touched on our to quarter communicated and we by it expense, last Mark as million. SG&A is goal again

a release. million to improvement At year. in of we this of in $XX.X a XXXX. We for in June. million expected $XX the significant adjusted force fiscal We our adjusted This believe adjusted based back is operating XXXX. of reduction A $XX.X have had a and will changes the EBITDA Compared million. full already reconciliation $X prior fiscal negative negative implemented to including EBITDA comp about EBITDA to in reality EBITDA decrease EBITDA contributor press some in excluding line, the is make million another expenses be stock

adjusted guidance to to we Let's see XXXX. EBITDA this out fiscal look in bridge our achieve how

EBITDA higher expenses. A a profit million costs. XXXX, production end will of with our million in both for year. our adjusted profit $XX the assumptions, the due in A as and forage improvements to to growth, million charges, operating of improvements negative million end EBITDA our traditional we see Starting to gross expected is well to $X high cuts gross following. start international our revenue of we the improvement at our million million $X DT believe $X due on loss sorghum as And which for incremental LCM overall in the Let's a growth. $X improvement from $X

low All in Double of account guidance, assumed low guidance. FY a $X took growth adjusted 'XX that to attributable flat for I'll we of our operations. revenue the loss EBITDA us to end For for and the did revenue remind end of rest what gets incremental you the our of revenue We Team into our million EBITDA simply

we low million would assumed number did variables, effects with of versus that is our DT, would the some On $X assumptions million. million made end end and would know to of of understand are cost $X about in but forage combined, We only important And our are these captured million or adjusted only We the investors EBITDA margins. provided. growth to $X additional of we the an This of International assumptions. have our loss and due the and lower tremendous which for we of charges there in numbers be between EBITDA, $X benefit it be for same EBITDA. methodology benefit XXXX. range increase behind the believe market we

Now let's about our financing. talk

partnered We balance felt us our to CIBC show to S&W earlier their letter by amended facility. issuing you our X-K our pursue lender. refinancing seen from a to non we financing continues a back this our as As belief million actively was have from to facility credit CIBC agreements. have to sheet. ongoing to Mfp, standby adjust new diluted filed with this we appreciate way of And Mfp. improve in support shareholder our relatively of a a couple week, needs continue largest we the we with would meet our thoroughly $X the

that for the in new the right play making call quarter, a last time facility better believe results. changes time, that the point that lender turn over to With of non-bank is us we prior of end to of lot But I the close deal a are at of ahead fit We in this Mark. our the I and maturity out at mentioned back will expect continue year. CIBC a calendar to will I know a As feel we and to over work that, there's improvements us. the

Mark Wong

you, Thank Betsy.

we Let outlined just Double value through gone key in last centers have on I few We the focused in a here expected it for with will fiscal from a key remarks. to beyond. that our tremendous and quarter, presentation. value Team perspective sure, is our believe me I've XXXX today's operating conclude in be everything first business perspective. in developing centers, an be as for and We remain the have other there's operating which both driver significant well asset as

potential some going that to see are said our real I we to be to S&W. calls, stevia years And in driver business may with for crops Finally, specialty big past for have camelina as you come. upside think and big, be both the I opportunities in the our

We the to So in centers back, key spent industry. long like of our for friend the profitability. of recently leave planted will the your reap, S&W. remember the think believe now and good in a a valuable of each just term all to kind bountiful the I'm that's just kind thought seed for by has are S&W I not looking harvest, about the been come is four harvest in the I've you told lesson me to and that's, but produce bring with But future. quote, value long you value plant. by with A yet the to team, and five looking I today. mine term seeds in seeds of years will ground day, I you management of And harvest value judge And a

wasn't you I all you today. you cold. again my And hoarse over And a the for turn Thanks I But understand the and saying operator view too I So to -- so good was will I hope organize presentation and know, can what forward who questions. that look everybody. much, us back I joining I the thank will for you to apologize questions. had

Operator

assemble this we pause to our At Instructions]. momentarily roster. will time, [Operator

from Please Ben here question come Street. Lake Klieve, will ahead. Our first with go

Ben Klieve

for All Thanks my right. taking questions.

the -- $X QX. still First, a both we're and to what to revenue quarter here you contribution a I commented there's QX question pushed But getting I on a fourth have delta performance think on the revenue on million of for particularly the relative looking about bit a from reality. line,

So in end the towards to have you expecting kind material material didn't you quarter? that were simply face other have the of lost? ultimately did headwinds that the come year you my the just be sales at are you of of fruition? to pushed expecting first question of that Or sales quarter? weren't end unable into and fiscal That that is, did What kind did you are shipped the the

Mark Wong

Betsy, want to one? try to take that you

Betsy Horton

we and for was demand sorghum our But additional sorghum, that and for and revenue would hurt Ben. question kind overall had the sorghum I issues year. Yes, sure. in addition the right to that the softness just And QX. also talked traditional Thanks we've on the the market shipping to The say two it the we I that international we in had through. came sorghum, about of say delays. would in shipping alfalfa side, our away amounts also were delays that guidance missing us and the things softness in the five of July. shipping seen the combination the international last trickle the

Ben Klieve

right kind that kind and the of backhand towards Betsy? cost a year? loaded to that is away? $X that what kind the of be are the going number? for Okay. Is then we timing flat bit million kind your How, should rationalization those, of of something Or end kind on of look kind about, of for lined, talk And for that estimates. Can that you how of expectations various

Betsy Horton

out the comes of action other right last I shutdown we're throughout kind part number. force that the with that at through beginning also then end we actions this And year, take of that it be there's have in of like some will we hungry year. reduction did, mentioned, both the sunflower some that continuing to we Yes, of throughout the took year, of year,

not the but start once. full I say see So away, you'll amount right would all at to it

Ben Klieve

of the if good. Very baked And hear next kind IQ 'XX in to have for for revenue what all? in Great expected that products at those of trajectory those until into not Double there wondering kind the beyond? that Okay. you pipeline, Team 'XX. alfalfa expectations that other and on namely is Durham of contributions free Or generation numbers sorghum, and sorghum, the then any are

Betsy Horton

not way. expected is ahead. material Oh, in That a go

Mark Wong

Betsy. Go was going what That's say. to ahead, go No, exactly I ahead.

Betsy Horton

Yes, exactly.

but in we launch that Dhurrin-free more a year, fiscal nothing in coming expect the expect numbers. of baked year And those test We 'XX. is into

Ben Klieve

so couple alfalfa a is given for table lower this I the Or space point priority market years? alfalfa of and that commercial that what’s of something in next feel the point? this launch conditions, a that item kind is at is Okay, on at the

Mark Wong

think competition business lower wherever It's in continuing varies, benefits acres. point. in I rising priority it's in very the feeding. Yes, U.S., with to the in businesses shrink rough pretty you is obviously, really distillers alfalfa the are business I is mean, a with grains U.S. the international the world, but it prices strong,

bit farmers are using cheaper grains, So than they're alfalfa. most of because distillers the dairy a little

alfalfa continue go down. seed So acres to

markets weak of kind the while frankly is remain market alfalfa on overall international what’s the And basis. So, strong.

Ben Klieve

have kind acres or maybe than at for and time what me, About a good. XXX expectations I jump weeks do this camelina will or year following enable next more year? is you queue. and Okay, next I'll And initiatives, this the around for kind come planted a potentially some to launch expected, of here, commercial more then scale in back you or year, time coming One very being of beyond? expectation then what plant that months

Mark Wong

is a that's a that and oilseed now big fuel years. starch right for these to as that lot vegetable But defined market in That's And the you growing capacity like kinds of crops, five biofuels lucrative which know, crop. market of certainly diesel to market, think there's the second camelina as these oils. produce really after we going next going And as alcohol. not mean, from ethanol, I a be market very now. of to corn a being a just converted Yes, food crops, are crop

I production, camelina high acres up ramping fairly a XXX we're mean, has multiplication so rate. And

some be lot XXX will diesel then, to we'll conversion a keep grow to program oil camelina be that super trial to new able farmers as able be be crushed some grain continue that and so going think Acres acres we'll to plants so to fuel. producing will acres, biodiesel camelina varieties, these just also And one for what to And of of would be grain demand for build be taken to the is strong. that we is

Ben Klieve

all Well, my taking thanks good. back soon. feel you. And with and these all Mark questions. better very to for initiatives ongoing get that's I'll Okay,

Mark Wong

Thanks so much.

Operator

will come Mallik Instructions] next go Arvind from Investments. Our [Operator here question with KMF Please ahead.

Arvind Mallik

of thank well. efforts question. thank as for all these amid my team challenging taking Mark you for Yes, your and, into Betsy, you circumstances your

glad term see were to agreement. long financing definitely shareholders the As non-dilutive

be to quarters dilution So are the you and great Or to stock at level? improved see year, a that financing further current minimize least expecting during agreements, prospect from had and with few MSP others. next cash these of do support, to I you the at question it related generation? able in between fiscal sales the avoid the

Betsy Horton

Thanks. Arvind. Hi,

Mark Wong

ahead. go well Yes,

Betsy Horton

certainly Thanks question. dilutive that Yes, look definitely for and to equity. in was a the we agreement than less way issuing way for financing a the we do

after ATM say, we decisions And more But use active that. allow financing toolkit. have a inventory through. sheets, we end that and refinance a to carry then as to at our care would for before trying the goal to that move equity, of the a us an our agreement have we're on against and is ways our have it would non-bank seriously, working it to are needs is positive avoid tool to CIBC in today, the EBITDA quite can't as balance positive us what a take I cash to other borrowing really financing we program. we way of look is December, lender, not to and very that the borrowing flow the a use are of certainly, Moving take we under not to maximize right think it we the is which issue now, plan of we I capacity facility bit the as toward -- And that

Arvind Mallik

great hear. That's to

ago, the has any you challenges dot by but over about short particular, of have longer power? type the the long I'm to that that between on company logistical looking But And clouded I term the bridge your talking and picture. for to XXXX had slides term Or revenue? XX% you November presentation, of kind gross the do you you near Do had know about term in vision inventory and a picture, term year XX-year at year commentary that EBITDA longer bridging great what you significant term term explanation some a of the earning of that to long of thoughts about to from as XX% financial back appreciate been I of and year sound? see aspects trajectory course correction getting that a five sort three the us bridge do to is the route wanted that of a through. walked Just kind likely? EBITDA the feel course, margins? still around margins And you

Betsy Horton

let was for answer I the was Because together sort of to management you. in try who me with team Betsy XXXX. that joining put company that one Yes, and pre the the that

we to years like knew idea look Team projection an original our really give of at off forward five to had was to three least the that idea of and When capability to now. think the and going investors to was that that So program take going is hoped research did opportunity we we Double we going our Double Team, of proprietary was projection, that be. what it and

lot work put baked we've a the was done place. that projection since projections, of into in was So that

on some was companies take big new And last of of traits, so there. as has in mean, item work some I line named all of have was like in past the been to off. camelina and work this been just the going the didn't not other doing a Dhurrin-free camelina oil that the that And kind of certainly expect we year.

good probably ourselves margins And that develop are had rate built terms so forages. the And projection that good, we the of sales are growth internationally situation and in some in faster on pretty alfalfa still where negative. on in so, that on so its and a we we in I that of there's most ourselves also terms sector. of of some did U.S., coming always is pretty new information, and sales the to on good from that expect projection we But and would bad even some spot proprietary not find its numbers it products that say of turn the businesses of our

had for sort opportunity as sales are we going not those to camelina think the on of high. So to more aggressive product be up But I is that traditional so going of probably make numbers lines, those. and

that's part We’re to issuing important they we and five-year of of to we of view when a think better are about of stevia may that going think where do projections. end be land, picture towards should of three S&W, what little about more investors new an a sort thinking when think those going of we see bit the where XXXX, camelina

sales sales especially probably numbers, they're the pretty more general, going like like be, camelina on pretty the as the just things but numbers on in close we in different, projections we're the so things think to for makeups still are where a general, lower to close. bit profit And

Arvind Mallik

helpful. undervalued. Thanks, stock those And given projections clearly That's Mark. really the extremely is an

that so the about that perhaps, and in much. Betsy the definitely hearing and of appreciate company value quarters, plans So how we're hear and unlock we'll coming then fiscal from on for to this year. more end Thanks for eager very shareholders, you to

Mark Wong

the get believe start, then you running is programs that think where that is I a to and a running our And the phase in now those a the of of a in the take be for And long that off outlined future camelina taking DT in thank sense undervalued, last mover us Yes. company a foothold. to is get we that improving of we're years, in we've comment. a years. internationally. in in mean, stock that for are start, We the lot are programs that shaker forage certainly going the margins couple big business time to

markets cheap with rates of whole all bond to that. financial interest by part and understand we're a that's rates from and to changeover the all this high markets, stock look, doing interest what they the by So, Fed Fed

create appreciate end our and the that's that. to makes But, my opportunities. in things the is, worked So of it admit summary I presentation we we've to these difficult, hence that have hard comment at

their self-sustaining flow can can to we EBITDA a on huge taking basis, amount as lot need stock But do a people is probably think horribly money is we And Betsy can a And that more and undervalued. a we stock we of of dilution, need we we company them. Now, undervalued market. harvest think make show cash that other I'm that. we think companies without our that sure said be also in that this to a

people on like while. there. The investors that give up especially yourself hope know come please best road, to us. long I us for we're a is But we really been we a would stock sure. yet don't chance. that who think would alone for give held So for it's But a our don't have

Arvind Mallik

thank very you Well, much. Appreciate it.

Operator

conference our question over conclude the closing management and turn session. remarks. for any back to answer like will I This would to

Mark Wong

Thanks only to to for how I call not to very for guidance the like of sales these because losses We were EBITDA going and being our everyone thank was much but couple in then and the profitability it investors on just years. that important we operator today. to we really more next presented from first large profitability understand felt

a look potential across is now. complicated shareholders that And we having future everybody forward for the Bye shareholders. bye So being story wonderful that to It today. a our any I thanks, or story think, discussions with we story. but call hope and of got on

Operator

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

You may now your disconnect lines.

S&W Seed (SANW) 28 Sep 222022 Q4 Earnings call transcript