- Earnings call transcript Q1 2023

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Operator

Good day, and welcome to the S&W Seed Company’s First Quarter Fiscal Year 2023 Financial Results. All participants will be in a listen-only mode. [Operator Instructions] Please note 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 quarter and Seed for fiscal Company's financial for much to us year you XXXX. results S&W XX, discuss first the thank so joining all today XXXX Thanks September ended quarter and With us Company Mark Officer. Betsy President Wong, and representing Chief Officer; Chief today Executive are and Horton, the on call the Financial the question-and-answer session. a the of conclusion for today's At prepared call remarks, we'll open

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

fiscal are plan on and plans, or its Forward-looking by not should, include expectations, will but for the projected. expectations statements to of draft, S&W's as describe expected, planned, words Such future strategies anticipates, results eventually generally future, or statements such or preceded may, business plan news and forward-looking and of call strategy, loan financial lender guidance limited relationships S&W's regarding S&W's this advancement are XXXX proceed. or

XX-K various results circumstances, XX, in the factors forward-looking year or to statements the differ identified the a subject in Commission. risks other for Listeners including the Exchange that events, and that Company's differ made and those are cause XXXX filings the as a and results the risks other June by multitude risks Company fiscal Securities projected of of result are future statements ended may the those statements, in a cautioned and uncertainties materially materially with from as forward-looking could actual projected to from

not be GAAP, or as with non-GAAP and to call. principles generally adjusted a EBITDA on in meant discussing be In this U.S. results isolation accounting S&W considered financial supplement measures will reported to S&W's These are meaning accordance not substitute for the be addition financial standardized GAAP or of in S&W's comparable conjunction prescribed and no with accordance measure principles. financial under prepared GAAP accounting by with GAAP any as comprehensive has consolidated statements or prepared read rules set in should

its description historical adjusted to Investor net A been a the the of is earlier of has of on which EBITDA loss reconciling issued fiscal reconciled included adjusted adjusted of loss these of XXXX that earnings because S&W's posted and or for reconciliations out predicted. reasonably control and loss impact end net released are at today, page Relations EBITDA not has for guidance S&W uncertain EBITDA its website. be to the S&W's line cannot items net

will made on net fiscal is recording without not page. have items also audio the will today's 'XX amount or be webcast call this Accordingly, relations replay The of reconciliation during income available significant and investor unreasonable for An conference these on available impact actual loss. of a Company's non-GAAP online measure efforts.

call please over Chief for Company. the Seed to S&W proceed. me Executive that With Mark, Mark turn said, let Wong, Officer

Mark Wong

Thank morning on you, all of good Robert, you the call and to today.

five as been beyond done for during it's profitability the driving about has XXXX, about the that years. near-term. to towards September, focused talked year-end put, work call we the fiscal commercial on in Simply and all year our we're we leverage execution over As past in begin

our camelina solution; for operations four, presentation. these previously out number primarily areas we herbicide are three the operations; number U.S. tolerant have and one, focused international which our outlined my of I'll We next applications the including; centers technology world; our by by forage led on non-GMO Team key intensely two, and the of number which being and doing operations around biofuel our value forage include stevia. sorghum sorghum this during number Double four operate each provide products and progress specialty of review Australia, of crops generation

level, first high a note. pleased, quarter at we am XXXX, a I very the on started high off extremely of QX

point in million improvement and Our first expansion our to to negative year $X.X to in was QX an EBITDA, of of growth, about adjusted But call quarter a profit we we margins X.X XXX a fiscal Compared EBITDA. increase revenue on to compared and a ago. is in of million from not X.X adjusted our simply last margin million. drive improvements of improvement revenue QX XXXX, achieved efforts million gross XX.X up negative XX% as XXXX discussed but fiscal basis

Double our Considering heavy quarter. alfalfa quarter in we Team with adjusted of revenue had the typically want growth One everyone item, to million the is XX% remember EBITDA nearly this in dropped first occurring sorghum little that a margin or to increase line. our also sales revenue, quarter high a of I X.X very

the entered gross we adjusted see potential half further significant back year, As and the of for margin improvements. EBITDA we

the Beyond we executing we cost and on controls, discussed sales earlier initiatives margin this control are execution year.

lower $XXX,XXX about a SG&A dollars and last to OpEx expect the total quarter Overall, R&D year. spend we XXXX. million be in each QX fiscal or during than dropped compared much by to

in our growth, say, expenses, in gross adjusted with improvement in a gross the QX quarter. last basis pleased Needless revenue are $X and point progress operating we year, profits, in million $X.X million first very decrease So versus improvement EBITDA. operationally XXX XX% to

the let value about So Team four little sorghum being of bit the talk key centers again, first me business. U.S. our Double a technology

such technologies be to yields what the to crops for soybeans, corn, sorghum way and in control discuss me revolutionize as have let potential First, cotton. other same believe enhanced the market weed Double Team's I

see steps. on the we of our Double support the we risks seed. fee. taken excess have year, during that materialized as last On Double sold as believe seed production have to front, acres approximately standpoint, expected one limit number have XX farming a risk, production are of We in farmers we sales. of target and hindering million million is appropriate From But $X about we to natural have The availability the translate factors such have XXXX. revenue seen to our biggest and we stated with we can not by concerns, in grown XXX,XXX quality Double of track Team freezes harvest from These sales Team that dealt our ongoing being date to remains Team.

the preorders are positive preordered. experience year, this with Operationally, our us where our is truly benefiting indications a the the and booking years of and first across of half year. of word quarter the first fiscal very The crop of initial positive are already third we the expected for industry mouth

opportunities, quarter, packaging We in we last Double expand we looking talked the brands, Double and additionally, of currently same Team are number also about We distribution. selling have can private looking Team. partners more selling label but S&W a at private many partners believe which at label sorghum

a third the that of expected about private sales be expect customers. will We of million for XXXX these XX label to

private The and to geographies in huge expertise other leverage ability their in us. key distribution partners utilize should key systems label of benefit to be

America, Africa. formulate Our significantly and sales and expect year are we beginning market South our again private to Team Double the grow in for when be partners label Asia we strategy important American to Double also Team next will

the the We XXXX, the for based Double are outlook sales. significantly line. Team excuse are of X Double reason to drop expect about product million to the excited million we EBITDA of XX% season on the is we a In everyone so about enhanced margins excited $XX Double Team remind fiscal about me, Team our is or significantly, we

called year. In I summary, at are update in to the believe real positioned and our we have moment, potential on to we sorghum want an give that The space. plays forage hit to product the is a forage we've that what sorghum for feel we it is this the continue technology we in well previously outlook discussed global technology markets. dhurrin-free previously some

prussic are terminology conventional the under this are fact that compound reflect with prussic fact eliminates prussic the certain and acid occurring free endangering renaming conditions sorghum, freight it the trade sorghum. livestock. Farmers can acid that in naturally occur familiar with We grazing in that more to

Prussic risk will use allow sorghum worry growing regardless sorghum, of and trade free free conditions. for eliminate this of

enough this year's have year produce We roll seeds next crop out we're we more and have to for introductory a in growing to lot amounts expect of demand. will seed and year seed parent solid the that to U.S.

Australia. forage value a sales quarter alfalfa. with also is in XX% upswing. very Remember, drivers is for not where international sales about the this or on second our operations, traditionally forage international key of the during center positive or from international The alfalfa, Our of from first quarter improvement particularly

gross I sales, a margins isn't ago, this As moment as about just but well. mentioned

several is in commodity the for have excess years. Our of the inputs strong a alfalfa that globally alfalfa growth that XX% market margin no and that the Alfalfa believe the agricultural business highest quarterly are prices XX% alfalfa underpinning quarter, pricing we achieved has in compared is in year up the We ago, margins same strong period. for continued to all in exception.

are Further, the are outlined cost management in that in improvement forecasted we shipping a can ago few we inventory earlier the controls have recently our challenges and place, to international the in as leading On are side, the ease. achieving flip to starting title the put margins. we savings encountered as year, months

forage required the water excuse land but floods me, from believe we start recedes, it international impacted Australian Australia, year. mixed has there This farming remediation planting to be and led including cropping should the devastating of domestic a though slow for and ahead, in we substantial though, and in expect pastures. our severely of has Looking swaths Once the Eastern -- enterprises. mixed business, will vast benefit later operations expect crops

X a while our one forage calls original year, low assumption of While make end revenues. million the not had international guidance end the in quarter operations, an that growth of for recall high flat approximately does from

While delay eased, we still shipments issues future we risks faced believe future in somewhat quarters. on have shipping our of

are increase first million the right starting we foot. forage we off X.X a with the in sales, on year believe international quarter However,

U.S. of Commenting third steady forage now as our it's much it center state business, goes. pretty in our value,

discussing We based continue on we to acres. U.S. have encounter decreasing -- headwinds that been past have alfalfa the

with of a stress. our customers the on base business forage and germplasm within diseases emphasis quality, though, our have and yield nice to resistance with high desire segment We pace and as an

we from XX sector. so million about of to annual continue what XX expect the to revenue Operationally million is or

processing as assets we remain to real the biofuels. on base, center camelina. here utilized for which crops of Nampa, germplasm of and biofuel species the the And believe the is and can our station be in breeding our topic facilities which again last beyond However, then specialty value, Idaho, such

our of what our with partner to leveraging last large discussed don't have packaging of our I real production last and seed as biofuel any global to me companies let seeded our expertise believe partner. quarter. in and desirable energy including sales breeding will updates position report, remind biofuel Due intent is an of unique but with camelina. production production, are have we we since crops camelina, an be you integrated which distribution capabilities It for specific small ideal processing company specialty production, for highly

or potential mentioned, to the we And this able multiple roadmap, seed industry future. of to updates last we're the being a camelina and a enter planning this further agreement technology our quarter, remains there And I hopefully provide transactions. are is forward be on next couple look market optimistic to camelina to acres of XXX in about goal mutual provide As that in quarters. a to had with as next beneficial it harvest I year. fall the seed provider

Just quarter which on Australia of wheat next the to efforts an this sorry in targeting with wheat update We're deal the combine year our second couple months, -- fiscal would our Genetics. in the finalize Trigall of JV.

JV venture in a Bioceres breeding Desprez, Florimond and Solutions the between would it's to could We entity previously, significantly centers essence mentioned us to us And all we've would wheat, we of allow further S&W's provide. wheat company. value. worldwide joint a internally strengthen our to Crop from focus exposure on benefit enabling that the efforts European As believe come key our position find

increased out I normally I just of for update but a to progress banking an banking which million new, from of Australian highlight facility our how into the with to is point just most me, this we've a lot usually current Australian since are wanted extended up National pleased am made few hit I the $XX credit a high points to Betsy, have $X in increase Australian, wanted entered million A would facility. to Bank of updates, and area.

these support U.S. million the facilities shareholder end reflect October, increased to X million Partners at MFP believe $XX We as $XX credit of profitability. we have XX revenues allowing in and increase drive our CIBC plan the towards grow groups letter increased us their Further strategic and forward credit to going our million these from million, of to our largest loan we from

everyone it to just our I Before of for over turn me remind outlook Betsy, let fiscal XXXX.

of end of guidance, sales negative XX about million high million. the and $X expecting in a adjusted On we're EBITDA

the in EBITDA. adjusted slat On a negative growth sales guidance assumes our XX of low of through the Team The and operations. rest low the end and X end, in million and it's Double million from only revenue

more Among other Betsy higher million in X sorghums growth things, this international expand our and presentation. will forage X the on her detail assumes million traditional growth give end in operations. you from and in from

does But we we quarter I work X.X achieve make something see And With quarter, ahead closer us these in have the the forges first not lot believe end path the as million high guidance. progress fiscal of international a where made still results during earlier, the year. current year. up said to the to to our we achieve, a a of of

offer And I'll opportunity out made is prove XXXX which fiscal one Company. that year we additional the the may for upside guidance point have zero for for related biofuel stevia item or agreements any assumptions

Betsy in back a in it's fronts. it and numbers detail. answer will turn for me to let to then, And the And So, start happy all now we be the questions. walk if year more through on any over great to

over to it turn please. I'll Betsy, you

Betsy Horton

much, the thanks everyone so to for Thanks on this joining morning. and us call Mark,

forage dollars in a those and conditions was Australia weather international our to XX.X almost million strong increase Mark quarter, increase quarter. to reduction that for attributed in The prior increase in the revenue driven results operations, of which business XX.X by the alfalfa an compared the Let's was due start a XX.X%, by our first mentioned. on international of million offset wet domestic is primarily year's X.X Revenue line. a million million to

our alfalfa see a had also which North quarter in to in in We quarter, the year-over-year. from revenue comparing during increase last cancels FY about America. We when fourth remember a million $X of did year's sorghum from talked quarter, also shift 'XX shift fourth across XXXX fiscal revenue which and Please year-end we essentially into had call. of out a that we quarter first this

Another XXXX at is way was in two ago, QX fiscal that to just $X years million. look it core revenue

on $XX basis the guidance. a we we quarter. of revenue what shift, But million last this our significant to the is excluding growth revenue achieved So FY still quarter range discussed reiterate on more normalized to hit guidance Mark million. the 'XX in currently $XX

XX we As making to XXXX, in are we fiscal in assumptions. following million look XXXX growth to XX million bridge the XX million to

of revenue taking revenue incremental low-end rest growth we On to simply are attributable in the account the Team the guidance, into of million and flat and Double our $X operations.

half end growth about sorghum higher with and then and are half about from volume. X the coming traditional growth, of non-GT coming the in operations, growth guidance, from to we improvements At from international million of Team Double And addition assuming assumed from the X our $X operations. related and million approximately forage million pricing

starting given QX, forage As stated off international growth year X.X Mark during the the million in strong. we're

over a alfalfa, turning quarter normally margins improvement XXXX. first margins was first it much in would XX.X% quarter fiscal key which margins. saw in and point XXXX, over Now in year's is I the for sales. I downs XXX had points compared think Gross normal This up inventory the expect were to what write the prior in basis year nearly the to to line basis but something in $XXX,XXX. warrants about driver to gross accounted recent quarter. mentioning X,XXX of XX.X% QX The of we in that given XX% was compared what our QX with more highlight we of Well, is wouldn't of we history, last

is process that may are so very inventory inventory We improving know our and on have we focused management valuation. for our industry, we recall into focused extremely We been our inventory so critical match and on period that incredibly digging management really therefore hybrid. we timing of reserve each we future. a revenue We lifecycle downs with whereby the reserve of of have management, the in avoid established the write lifecycle can generation big the the

quarter. write should downs this however, reserve efforts, the methodology do through in large one Having and management seed is of inventory industry, we the avoid our lifecycle some more instead part participating that impacts in the we experienced time we this past and have like seamounts

transition Now, we'll to expenses. operating

million $X for X.X of the with the half were reductions other from SG&A, decrease expenses XXXX million a expense in compared QX X.X prior to Half the of coming first reduction operating year's from million. GAAP quarter, R&D. have came goal the quarter. in some timing annualized but spend of year, later catch where achieve million to cost $X our we we we believe savings are will up differences We track under the last do in on on in outlined Our

a comp EBITDA we adjusted we is year, the to stock At negative which X in adjusted million earlier guidance. operating had the $X.X about first For the consistent negative million. of X.X first improvement including our an of believe of quarter line, million adjusted expenses with quarter X of compared be million, the million prior XX will EBITDA for about base year's EBITDA

pointed this to a on adjusted million achieved EBITDA improvement $X.X out was increase $X.X million As in Mark revenue.

we I EBITDA EBITDA in margin, nearly XXXX. XX% how bridge increase of improvements let quarter, fiscal last in So line. drops look revenue guidance Similar to our me with achieve to adjusted the to what the did adjusted out

is assumptions, for million Let's loss adjusted start with the high EBITDA our end the X year. of which

third, improvement year fiscal or 'XX; market lower $X adjusted revenue international due to costs. fourth, gross assumed our a profits $X sorghum as our of due And the a as higher improvements for expected first our following year DT to overall second million in a fiscal of incremental both improvement in million at from improvement traditional charges; cuts growth; and expenses. Starting $XX profits or our forage cost EBITDA production million in million $X LCM operating growth for the to end to negative of million we a 'XX, gross well $X

us that year loss a million an to fiscal 'XX. EBITDA expected All $X for adjusted gets

assumed guidance, our Team to in we low operations. what the I'll For into simply took the of EBITDA account growth the the you adjusted of did and attributable revenue revenue incremental end low-end remind revenue of rest guidance. We flat our for Double

adjusted assumed growth due of did $X On DT, to benefit in a EBITDA, and assumptions. only range would EBITDA would captured million the be low-end adjusted the some margins. our We $X same million additional international we Negative in forage for of the which increase be made loss.

number $X our it market EBITDA cost variables, assumptions of between basis a we on would there about only is And These lower behind are XXXX. combined, or we have loss would are OpEx million. with investors end important of benefit tremendous and to This understand million we an an the versus provided. but charges a of for and methodology numbers $X believe the adjusted

Now, let's financing. talk about our

and October, XX, approximately extension NAB as Australian a capacity dollars September discussed borrowing late Australia combined of XXXX. to to announced or $XX.X certain credit million $XX National Mark USD as we increase facilities, of in million or So an with Bank our of maximum

and seasonal The an is which or is dollars a an facility. of include modified million facilities our of baseline This $X compared a prior credit facility, borrowing approximately facilities. overdraft to Australian comprised X.X increase million, credit U.S.

XXXX. also have May finance loan of September ranging dates XXXX to rate expiration flexible facility a and asset from the with We master

facilities based forage to of in We plan operations our support credit the to Australia. increases international out growing our use

and had for grateful relationship than NAB more a have forward mutually are XX years with we years We to come. look for to the beneficial for relationship

on from have might of the X-K November other Xst, financing our filed you we've as couple Additionally, we amended a seen agreements.

a sheet what $X continued letter revolving the our place backer shareholder increase total to to This felt support and We $XX show loan with from million largest issuing our way for by in was allowed S&W increase ongoing was credit from $XX MFP. million. The commitment support previously. LC to million this standby CIBC their up appreciate from to to was MFP a we facility. improve a relatively balance XX non-dilutive thoroughly our million, CIBC us of

but end a pursue a expect the the actively this prior to a We replacement continue non-bank a for the an first potentially likely maturity facility close to with is with at work we to of us, strong provides financing know long-term at during expectation point We believe that the made quarter pathways XXXX. CIBC there's better deal lot fit lender and pleased us a of the new it with extremely in of for lender fiscal and the we progress the us calendar year. ahead are of time

With back that, I to will turn over the call Mark.

Mark Wong

Betsy. you, Thank

the closing, focused first and to made progress continue we've of Just developing four in very we've we feel far quarter. remain key previously the in so good the focus on value We about centers outlined on.

We key have executed centers alignment support cost of on value. of structure our to these the

are profitability. assessing the value Further business intended drive we potential transactions to generating towards

good quarter operations a preorders growth Team our Double on assumptions international very indicate for reasonable. a are Our had and initial that forage indications

continued to thank always, your As you look questions. of taking forward for support S&W and us we your

Operator?

Operator

you. Thank

Please now begin first question-and-answer from comes Ben Lake Street. We with session. ahead. Instructions] [Operator go question Klieve Our will

Ben Klieve

congratulations a the couple in me. on margins the of taking in Thank you and questions A good especially quarter availability question for for site. capital

as initiative. on wondering So cover acreage Mark, camelina assume of all for we kind I'm and us could speak planting. update crop? as First be on a of locations you I if that'd us great. here for if on expectations you expected the can update on camelina plantings, going of

Mark Wong

your questions. Always Ben. Thanks, Yes. appreciate

I've So we've XXX acres camelina. seed said about got of

we seed the for partners, they pressed which is produce So that sell camelina farmer our the of that grain then grow and camelina that be to would we amount oil.

all world. participate early we other starting for huge And believe that companies we going the can on. program. a that other biodiesel think But crops working around to in big in market pretty be bite a the that's So the we lot There's a of and just opportunity. is obviously

excited about pretty that. we're So

production are We where that and breeding our producing camelina. Idaho the also believe for station ideal location plant

think a the in prefer than that are market frankly, to a Some we seed are. of that little also are crops for We environment, camelina. and so that because the even weather some costs the produce the more to competing the more U.S. so risk in might little a to would companies earn it we for adds farmer, we weather though be farther higher north little it better production pay a bit our little have

stable opportunities market having camelina. cycle pennies like higher produce beginning more per the seed least is that the we as at important savings line business, stride But on cost into seed We've than than finally couple been call the the the at business. seed. to I've ag years, knows, now ag CEO put of for everyone And, our business hitting of been the and five where supply is product and a a long demand we've pound now, is these this genes think we to to capacity that doing the

to and excited we're for So, camelina U.S. seeds never. pretty the side. to be the oil market, maybe in won't clear diesel on biodiesel It's really there enough about many happening market the many, come, the satisfy years what's that

winter. cost that obviously time petroleum-based at as a grown its, And diesel. so, versus over a have not the food camelina think opportunity the the affect to tremendous improved carbon much because a same produce has second crop much, we it's footprint of basically oils And

the to ground, the quarters actual next excited to updating three, putting here is of months. in in in and be seed a we'll and produce going were took be couple next and XXX production we in big as bite to able the farmers acres the what four whatever weather pretty winter the we're status So, the of

Ben Klieve

take of and the it the you've your direct business process lot the on about of of label selling to and spring. the XX-year you private so won't Double of kind next a to label for of be kind just kind or Coming different next that of talk Can got to good Mark kind expectations going in label and model Very sorghum, farmers versus you've early private over appreciate years? Team label. of around private over a two form expectations I that the very a to the three is challenges about you're business more stages that private in commented

Mark Wong

Yes, because a frankly, bit through great that's Ben. point to based really look available the forward inventory our of question, one to, little private And into our future label you more out good, it's future. decision is as on the sell

So the to I sorghum said a based estimate of million XX,XXX we're that kind bag a fairly of acre going significant a it's so this sort of on spring roughly that piece. that's crop that planting, our XXX,XXX sell, of U.S. based X sorghum acres, that's in

increase to think our has and and million we huge XXXX in up we again, be have it obviously, maybe opportunity, that a have there's planted. But distribute and to to sell that to to But it, sales going based get to we we think a acres. on the demand,

X plantings million X that's terms we to XXXX acres XXXX for that acres be significant, existing to that be stuff in our planting planting year that's basically And of were basis targeting of million to the seed the have in is expected really acres. the hybrids would next so in we the production farmers. female a the rates given seed to we lines spring think and and need to that of million the close grain produce on hybrid So, male sorghum U.S. enough in

Team their forces for want to one continue penetration private Double who grain use is basically customers to share rates, use sorghum. to sales us the market the bigger we big opportunities So, label the to of get improve for rates that

is year us one the XXXX, available so, seeds penetration million reasons our to why this increase more going of our of big that's acres, And a in improve in putting we rates. and private that think we're to to label help

reasons really again, really of say the looking forward it's product long ag. XXXX it's XXXX to for I times, one really lifecycles for sales. sales, And that's are So, the just development not can't this enough

just have can't your forward we're just of that -- you're so you on years, you in, as looking ahead. couple of out, focus a a focus And couple years question to always the year pointed

why So that's on very, of very all reason private in we're the label. bullish interest the

have who we're because last just was Double the the our getting it seven, about especially just want were employees, seed to We crop all were a last of our who's seeing remember of really to sorghum. used the our we the didn't who our and to the to interest sixth in it farmers going overwhelming years field this guys and response so year, for --people have But uplifting sales sell gene is eight people and XXXX purchase sold year, R&D put of this assessing selling stuff right, team production Team we today. in on to guys been the that stuff and working

So, inventory to to our the seed own more we're our sales put reason real and XXXX. than available through partners' label brand. branded of looking sorghum That's forward private rather

Operator

KMF Please Instructions] [Operator from go next ahead. Investments. with Fite Our question comes Jonathon

Jonathon Fite

focus guidance XXXX, relation be mind you'd kind what's in thought as some changed you on flag Just for of still had all two that it's in technology we intended you're had to of but years directionally put where from XXXX. know, you you'd some be outlined too wanted if presentation areas of I the to giving be a to from of start kind is in areas kind track to high-level, on, year, go going what ground early divest, growth way as of to far kind December to you next back ago? you your where your thought XXXX, that and just

Mark Wong

Yes.

the say three that Difficulty] technology we're going number of has that of market to we So, opinion. like, [Technical long pretty think percent real. prussic and now because during we our point, based plan, didn't forage this is opportunity understand We And the business timelines when facts percent sorghums. development that have proprietary in your in free on are year all did change That things spot, would slash product good acid we on five three excited in were that to growth I estimate. at that do

because frankly the technology we're so always following in farmers as trades we are And other benefit market the a sorghum and to getting two leader. having reputation the huge, Company a huge each to a is

discussions is the have are companies major and We sorghum in the grain single around with us sorghum, biotech optimistic technology just one plant every fairly the forages yes, from world sales. from lot ongoing of sorghum breeding sorghum of is very other are a and R&D that And standard that going to a in yield there our we our future. plan products that continued

On to growth, kind it's say that sales downside, of a general estimates bit in our going of than the slower plan. that be our I'd

in that that So, is the a I estimate. good number but the high is plan, probably probably profitability pretty think sales

around all put for our assess seed time have fiscal companies of the both the the year, me, because We busy. to hopefully we've we issue been clear pretty license interests to we'll not our it's get by one, the that are end -- chance this when but out own teams the to To and totally direct and plan, going we're of together world other redo of the sales.

spend question, technology we'll outlining. out your we five line much of year answer along technology but lot something And I'm plan, be [Technical point that'll Difficulty] of, three a just thorough new than that or more sort plan will the give it's same a the to

total sales. the have year in earnings based will same will five in I the products think that outlined and lower plan. we amount about to have sales the three of technology same It about it EBITDA

Jonathon Fite

mean, That's XX a step up that's interesting. XX months. next over in cash flow to I significant the

September year, plan the as that comprehended a you think can sales adjustments adjustments? Xth, burn manage data this working kind you talk bridge? line those latest capital really credit this there's to fair burn given cash the as some and the you other be So also to sheet kind to, to of of enough XXth, or don't of to year, are if of or I of amount talk adjustments cash give facility of you asset or to going needed Can items balance

Mark Wong

out -- Ms. I working one Betsy's NAB with obviously, in on think I and and Difficulty]. two pointed pointed [Technical phases, that Australia one the as our we're in increasing out, as

have the be in I were just need and and our our plan. books the of [indiscernible] to that cycle now, understand effort, the And the money, And we going we incredibly a view to time, things that years. part number blood these sweat we're we've the nationally think spent that a of where take the MFP's profitable supportive these that now create we're so, they And believe to in the of been opportunities, company. and to

to margins of And In Double call Team what well but the XXXX, in Team [indiscernible] depend knows Double frankly, who's point, XXXX, 'XX, they with on your Jonathan we today. how is have profit he on don't we detail. obviously do would

the profit profitable capital sales. for you forage to for compared huge it's And need in percentages those boost margin large exposure working a just So cash that get gross to margins, what same of towards we've kind managing products that five those been I've the the looking in that with Company. and years of the the and that companies the been make towards are are products

Jonathon Fite

non-core just mean, you some you've but some months? kind you think talked bridge ripe the about development to partnerships XX there business other, you've there absolutely, Are I some provide about would partnerships, of that I over infusion are to businesses talked additional camelina other any next for a for cash are think

Mark Wong

on think have and XXX said, sales, bringing just that so are under absolutely our We a I focused for tears as opportunities But that we've size, huge that we way company do blood a want we've sweat we in those get we be share. to in that to of the big, is good on are we other have licensing, the market XXXX home. but ground -- million where to to companies could amount another Double with the going are, that year Team be especially about add

competitors only are in your own the try license share to strategy the market to because put it trades that always Monsanto's trades the for generate trades on use share and your the competitors, it's your to put the but you market trades seed get part. to your was profitable, to so is better and also to Remember, from bags, penetration

Monsanto's those was for It those that years. on of Remember, times. we've I out. figure to the part over industry lessons board sat the So, learned a long for process

companies. not the in Company owned that that long the giants license Some industry was cash think I flow one run And strategy the Monsanto the who to of effort of that highest of conclusion the generated the trades for did the their amount trades. the was other

that filed. philosophy we're So that's the

We market gigantic have diesel that you're that just going of vegetable the a petroleum that oils think XX% where a market. oil better that company to sort grow carbon and based is footprints

oil studies, for is of you market a XX% just available diesel to huge billions U.S., market soybean now, like need trucking. but electric it's country, for for probably ships, you at If which use the and XXXX, but dollars relatively like stuff motors used substituted large And for in of going penetration not some Yes, in trucks it's electric but on for by vans, trucks, trying cross look delivery of people the for also was is used be to gigantic that. it's by right of are the and the motors delivery diesel. a goods, light work,

to advantageous a difficult working a huge S&W. because big. we're deals a to do close going for they are it's that so potentially is been So to year. deal very think on We've over signing be These and to are opportunity it we

we you to this think my and looking And a we're so, a think right from found finalizing and right signing and having be and relationship at the the we we what's deal. partner benefit going good everybody's partner

vegetable this our so not on industry. we one just other So an pointed it's will that also but earnings discussion supply quarter diesel on allow of encompassing company, the in focused out us all to oil, companies as deal with

i.e., established So, making it's on as production plant we the we're source of can't and reasons Ingredion progress And Ingredion on it you And a the are that do. in that remembers such depend is to relationships that and about China your U.S. between everything that, good frankly deal. China now. can leaf excited questions right working the we're on from for coming some China. [indiscernible] There's processing is We're also West. everyone very supply and needs all and be to from

source. want another do they So

be in and deal But traveling going the it's can. a But to big pretty Ingredion. today, we're next capital everybody that's, that get with month excited I'm a investment to hopefully that's

staff cut do in that [Technical with lower and effectively expenses, my the have the we potential we've We've returns. the have. managements of projects Difficulty] markets that lower stopped basically One all believe

in do of next And So, the many we've or to do looking plenty plenty And couple tuned scalpel new that to there that's focused employees now. opportunities. and think with biggest fine too our all for of years here the we on at for a be opportunities. will without management

Jonathon Fite

end of just XX bridge, the follow-up, your quick I year had bridge, upper negative the given from to one guidance the down in EBITDA getting of last two. negative

didn't million that heard million market the benefits, X I gross in X X kind forage LCM of catch in think profit I million and was cuts the on and operating side, X million expenses tied what to? I category

Betsy Horton

another sorghum to X DT and traditional portfolio. X million was due million our from

Jonathon Fite

X from this? was million what

Betsy Horton

Team. Double

Operator

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

Mark Wong

and in Betsy, of everyone year has to we got in S&W next everyone that's the is very and the thanks I it our now getting potential explanation call. real And that EBITDA the do informative. felt hopefully from the beneficial going support Hopefully, on the was Well, market. the appreciate for today understanding and short-term in and terms the really this or it. two opportunities for year before sales Board of

just of a We that sales do all there's for growth going Company be to our huge in And explosive who really follow Company profitability. those you and both think and of appreciate the we the shareholders.

thank call very the for you thank much So and attending you today.

Bye-bye now.

Operator

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

You disconnect. may now

S&W Seed (SANW) 14 Nov 222023 Q1 Earnings call transcript