LOCL - Earnings call transcript Q1 2022 | Local Bounti Corporation

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Operator

Good afternoon and welcome to the Local Bounti's First Quarter 2022 Earnings Conference Call. All participants will be in listen-only mode. After today's presentation, there will be an opportunity to ask a question. Please also note today's event is being recorded. At this time, I'd like to turn the conference over to Jeff Sonnek, Investor Relations for ICR. ahead. go Please

Jeff Sonnek

Kathleen statements. good of Local and of in of of These and presentation be the current forward-looking statements Litigation statements facts Financial will Joyner. today's Securities differ future known made historical risks uncertainties from to on Thank contain Private as safe call considered forward-looking Co and results events. afternoon. subject All harbor - XXXX. are by than forward-looking forward-looking Officer, Chief and management's to Bounti's and Brian the statements Hurlbert Act materially the The other CEOs, that expectations hosted well the are statements based as assumptions Such comments President during beliefs, statements. cause meaning and you, within Cook, could Today's Valiasek. the Craig are results discussed Reform Travis unknown of a statements M. number concerning provisions actual

most reconciliations With turn on investors.localBounti.com Investor website, co-CEO. Some and uncertainties refer to and be GAAP Hurlbert, with over financial to non-GAAP call that, company's which the identified comparable for Relations measures financial their of I'd to press the these the now measures release the to We'll non-GAAP certain directly the to can risks please discussed filings measures. refer SEC. found in of today, like Craig are M.

Craig M. Hurlbert

relationships Local and we those as Since afternoon, team April. overstated. on covering for entire a a strategy, to in many XX,XXX been this can't us and and are we national Bounti's the closed access Jeff with level. This you, is in they Local build-out busy Pete's transformational be for a it perspective, spoke footprint new demand reminder, accretive market have And the and The important our many, to story, creates everyone. acquisition existing customers a our a business good Pete's and last and acquired transaction expect our opportunity for in with doors. business. national into with very early that Pete's brand-building Thank we springs we respects, Bounti The retailers was generating and you of some the our mid-March, from distribution that integrating accelerate informing relationships

enhanced near-term In our execution. terms the of of -risked operations, set and transaction capabilities de our

of Our taps growing patent our and enabled are experience by ability Georgia systems our degree transaction online come And on that wealth course, that Flow scale Stack techniques with a of designs facility, knowledge is nearing of Bounti's consuming brought Pete's and improvement to precious is which time, had the we build pending completion as expected financial and our the otherwise July. we continuous to is to considerations, Technology. would've it and scratch, in new in Local growing from of embark invaluable own contemplate including

have of activities production, was facilities and on other plans. facility Pete's will which including facility, commercial development acquisition Montana our We and research commercial refocused not in three temporarily support in

of margins up Bounti expect the leadership With balance the Upon Pacific of commercial and the our Financial near-term. Local flow reaching in the goal on forefront to facility the support driving run million break cash hard basis, capital efficiency Facility toward year, even Brian. of Montana $XX producing significantly full I'll least pass strategy. an over of that, Georgia the production As to production, reaching at ramp remained annualized it gross positive to and the at sales be Northwest. we pent-up we our look ahead in demand of we rate generating expect customer in at to the

Brian Cook

Thanks, Craig.

our our combined commitment on sharing to network. the importantly, Over and reinforcing across wonderful quality been with meeting And road had past of the service the month, benefits customers, most our we enterprise.

Our the environment strategy high-quality, meet conversations one players so build-out we that the and to could reinforcing agricultural of produce. be been for have the key controlled marketplace very is demand our productive presence in

create the expect as we the production. Georgia to operations commissioning immense ramping for the efficiency of facility and process execute of our We up begin

We the working ramp work. staffing hard have get and a up in ensure to are place been put to smooth to to excited

our interactions Our customer build-out enhancing facility. of our the are also visibility to next

overlap While and several demand our products. in key demonstrating focus strong have strong we're have planning stages, regions we for brands who the still and and that are customer

for With work after as able, Pascoe this next to soon to we forward I'm activities growth. our Washington, phase a brief Greenfield are plans the of construction recommenced look in pleased our As share and respect a result have hiatus. of we that sharing to build-out

this our noted for Travis to and learning during and facility to loves our back returns sense. the quest maximizing to we we Whether on capital. conference capital operational we design and call, as As ensure working design a math the have Again, ongoing do in say, every last Local been optimized or that operations efficiency that both piece from dovetailed on for account is to Bounti be CapEx.

energized balance into to to value a been remarks. has on we public plan of our capital pass creation capitalize ahead. endorsement that that our sheet opportunity our continue and positive, united Customer employ opportunity I'll will combined drive strategy the lies We we've value trust the motion. which with is constrained very and put Craig his exciting has to years the brands growth with to wonderful growth it front. back significant response the additional of both to built for organization and an Local Markets, access for been is Pete's see Bounti's to

Craig M. Hurlbert

strategy. continues approach that into accelerated coast to footprint our growth labor and what deployment service with the an cemented locations, to at of which see, is to be with the has direct efficiency Georgia plain our the invaluable, of California element We improved the versus buy but two in is three the team value be nature brought we'll our be This had intend add production in will build facility. Capital our our via towards customers activities. capital today's its increasing Pete's, revenue-generating market. facilities in tight to our with presence quality of which forefront of west network, market is bi-coastal The is pending visible

which put, excited technology to to about leader strategy advantage our are technology. X.X-X disruptive plan compared ability a to drive and Flow is and us while an our execute This ahead iterative a highly higher to Investment Return and we This flexible gives Flow look to greenhouse yield ahead, buy we capital required differentiated, manner, and traditional as we opportunities to lie underway. that the on and the opportunistic rationale the that be in expect As to versus improvement times on believe in is build integration CEA, operation. direct given our efficient will for was highly we inherent the Stack improvement existing expect capital. we basis simply Pete's consideration are provides Stack we minimizing be continue the to in the advantages able to unlock an make a continue strategy and us, strategy so transaction uniquely key a we on foundational ultimately leverage our why infrastructure on for

drive capacity pass into and returns. existing enhance remarks. call levels I'll to around a throughput with operations and unit for production to implement With disruption higher to minimal expect to operations the and that, Travis few to Stack level We build additional the Flow continuing

Travis Joyner

an systems with Thanks, and as Integrating our one optimization Greg. is at and those facility. testing Flow and the our of keenly facilities on we're of area Stack existing focused highest Montana priorities, our that

lettuce well. annual of commercial rate in our the loose-leaf head year, doubled made and crop commercial nearly exciting we advancements we turns since fact, last lettuce In for some our as

both XX, it turns compares annually, we to XX turns reported. XXXX. crop long-term XX generated To As XX, assumptions exceeds we approximately context which as our to into annually instances, this put XXXX, already of that approximately performance previously of December XX in March

capacity our be improved can level will do of is We of have controls, IP window this value believe innovations unit which our thereby all economics, that the how will of to optimizing In long-term just across and at Flow translating genetics, happening importance I'm hard intend nicely. of mentioned enable for position computer cost, the business process portfolio additional summary, progressing investment We there's There shareholders. a improvements, we also an AI, and the been are possible organization, pleased the our creation cultures of to coming our and I our Vision, is growth. drive upon, into a into protect and capacity at immense facility is in which work integration robust together. long-term that. amount our Pete's strategy with across to incredible for Stack an lowest the learnings amount

quickly. of capitalizing amazing it an within focused And we're have We opportunity CEA ahead the us on landscape. on

As wise strategy and our capital the a goal have the over demonstrating confidence coming years, term. and expect with ahead establishing our that continue business a in leader geared formidable sound we corresponding of allocation toward move all CEA profile financial investors in can quarters to we long

Kathy her of review Now I'll for turn the call financials. to the

Kathleen Valiasek

good Travis. afternoon, you, Thank And everyone.

and of facilities, operator million As and Xth a reflects Local CEA temporarily which our basis previously Montana the retail reaches I'll approximately a towards on transaction we innovation for with which scaled of a cover was represents distribution the acquisition closing activities, first-quarter this April $XXX.X R&D results were national XX,XXX XXXX Pete's while announced, standalone the that creating doors. briefly, geared Bounti footprint Pete's to performance prior company on closed the our transaction.

who demand in customers production Pete's ramp pent-up As Craig support commercial from significantly Northwest. facility mentioned, we the in asset of Pacific expect up

First compared XXX,XXX quarter prior-year as the XX,XXX period. XXXX, sales in to were

sales margin profit quarter standalone was gross first representing $X.X were XX,XXX, Bounti a XX%. million. Pete's FYI, gross Just the Local of for

to to was deep our which long-term process. with XX%, provided Excluding the star the gross apples-to-apples margin projections was that depreciation, we during prior-year make consistent period. approximately an Adjusted comparison

strategy our new acquisition of Our and increase the facility. and other in development element is [Indiscernible] temporary a the a facility reflect R&D the opening crops of commercial with associated at yield behind critical Montana Pete's Georgia facility pending the additional This improvements. our including cycle of plans, results

metrics Net I'd $X.X the expenses quarter goods provide to XXXX, and in production towards million our revenue expectations stock-based as on the of believe so and is existing that driving first and million approximately capture Pete's we and comp, beyond, $XX.X improved beginning the loss couple approximate quarter to Further, detail on like on XXXX, bring this of in and in Bounti and gross just of facility. growth what these cost with influences has of to facility interest Pete's full could actions you reconciliation. back ahead a Local well which combined gross Stack recently is figures, margin Pete's as so margin our some for from KPI the performance year the opportunity, well associated first reporting been packaging through filed EBITDA of as select We our as items, great some both the enhancing in Bounti's was and an with appreciate of company about million expand loss low $XX should pro forma $X.X adjusted other those $X.X in is revenue Local results the better call includes million. million discrete we margin XXXX commercial Technology. within adjustment achieving. Pete's XXXX of XX% some and margin financials Local to Montana million of X-K is in acquisition, Pete's base materials implement The expense, to was Looking base cost depreciation. and GAAP, business to included including articulate which our second alignment and savings we Bounti. we adjustments raw historical for at shifting capable & expect operations. work as synergy $X.X the for adjusted margin a range key sold positive Adjusting various was an and are XX%, with Flow EBITDA from

get to hard We working these aligned to ensure organizations extract we are our synergies.

with XXXX more margin adjusted margins. is is What temporary KPI with and key XXXX other factors. a the you COVID-related impact Pete's The because of performance see in EBITDA the performance subdued

disclosed, and previously quarter utilized and March business. of cash was Pete's From equity with the adjusted million of in depth as the equivalents, cash, era, balance XXXX, cash of million, restricted to a in Pete's. of $XX.X as we $XX margin our the EBITDA of the our capital XXst, perspective, sheet consistent Bounti structure million of generator. April Local $XX.X end standalone finance Over long-term reflects cargo through acquisition pre combination facility XX% in The the -pandemic the a

March pro shares stock we the of XXXX. So basis, for had XX.X transaction on and Pete's the an warrants And consideration units our as including our restricted forma a XXst, outstanding. million outstanding

share million fully-diluted XXX of approximately We have a pound shares.

the As excited provides our we XXXX, look about ahead the scale we full that to really to are business. Pete's year

Stack We are XXXX over implementation of equally and Pete's excited to Flow facilities Technology our begin the and into XXXX.

reaffirming contribution our of from million, revenue least of which are quarters XXXX at includes three We guidance Pete's. $XX

Additionally, rate revenue of from and across call these initial our the the look we remarks, we questions. to forward achieve positive to facilities new drive We progress production, our continuing million at for achievement Technology from CEA the facilities. in That prepared run three to continue future milestones exciting concludes least Flow to excluding opportunities execute growth expect full as please to this on Operator, $XX of identify Stack update impact expected open the and at you on implementing marketplace. our Pete's

Operator

you. Thank

be before questions. up follow while line pick We indicate question moment, For [Operator in session. for Thank Instruction] and the will participants a we up enabling question, headset re-queue question-and-answer will [Operator Instructions] for one equipment, One queue. additional pressing questions. now question please, pause a the confirmation conducting A key. being you. using heard, your Please is and star ask speaker then your

from with comes first Colin Please, Oppenheimer. Our proceed question your with Rusch question.

Kristen Owen

at a thank Hi, for on around afternoon. first was color This for I Kristen little wondering good we the bit focus questions. our could taking start facility. of What looking that incremental Hamilton is those turns on to you're and with if Colin, you the going you've the that the are efforts drive R&D results specifically us? the levers of with at shared

Craig M. Hurlbert

of Craig why Thanks and please. is regards for cut you M. your This that, the Travis, much first take don't please? question, Hurlbert. our to Kristen. so Great, give Colin,

Travis Joyner

line Stack relates as enhancements for And we're system. well demand our solve to for transaction Kristen broaden it computer investing at to increased in AI. specifically then as and and absolutely. we to we Pete's think, decided And and the really, and R&D the question, and to the Yeah, I Thanks Colin. efforts, Georgia. started customers Pete's using, o core as of of near-term to have SKU in first California combination really a R&D on sight controls in Flow Hamilton Vision, quarter, from in the expand specific

will, in the lettuce lots So head remember that Pete's, have lots they're CEA, of really of and They're of market they you kings, doors, share. if skews. of lots

R&D crops in a we able on down our where on quarter so the one focused And increase specifically, focused, of we're we're Technology days. technology what Pete's out our cut living the Stack things that the first is, through crop per that butter get around turns pull basis. by annum innovating facility seven could our is, and that to resulted of efforts, And lettuce, Flow the we're to and cycle in really, applying the and cycle

turns four total. year, year roughly up in per per pick So XX.X turns

increasing R&D are we're as as we'll Flow the production. and as of etc. comes online, that well be core Hamilton increasing recipes, focused our main But Georgia commercial innovation computer of on controls, areas number Stack and the down scaling Vision, So patents,

Kristen Owen

with really helpful. the follow-up times about that, for you of just cycle ask as And That's to Thank Travis. my customers. then wanted sort

the since the customers your it in Pete's Thank the we sort having economics I'm contributing offer that that with to I'll You is you with the tone can you. of but opportunities? and co-location that space any that's ability how of the conversation there. favorable demonstrate nature unit conversation wondering leave can acquisition. to around in commentary your talked you're customers see, change about something of the Obviously, this

Craig M. Hurlbert

series I Brian, a please? great question, want what you take to of that Kristen one, questions. do guess

Brian Cook

is. comes Yes. Thank our market, about question that have market overall you relational how you the really to for is thing you sales the for Kristen. an someone life think When when the the quick cycle, one new appreciation

it can this in is just new about solid beauty XX,XXX within any significant launches. product to so for relationships new a had company and trusting to The effort plus And start doors through one take combined takes -- generally arena. we access it already produce that on a that our selling kind of year a numbers long-standing

what more for not so capacity time-to-market And does do are the having pipeline. really but able with the in reduces current and adding only it also more is it to just being skews, that skews additional

Craig M. Hurlbert

Thanks, Brian.

Brian Cook

I think that answered question. part of your

me Let there's know I something missed. if

Kristen Owen

color. appreciate the That's helpful. No. I really

Brian Cook

Thank you.

Operator

proceed with Bank. Our your next Barnes question Please, question. Chris Deutsche comes from with

Chris Barnes

Hey, out thanks good but just comment Robbins? -- around the the Stack right Georgia the on the hoping time just update, Has the on of Flow integration ramping the could could facilities in commissioning I California. or afternoon, of each appreciate I and and And costs started Pete's for implementation to details facilities? yet you much all the and relatedly, on the the start, question. of now three to you has been process and Thanks. facility other focused around any share I integration that for Warner color up progress I was guess and then

Craig M. Hurlbert

you, specifically. Chris, Stack comment integration question. Technology I'll the Travis California the the and of appreciate Thank ask Again, on Travis? Flow in to

Travis Joyner

Yes.

has lot however, facilities, a on their successful Pete's are Those very as including doors of SKUs. I focused So of product, core California number butter and lettuce. said, a

California the facilities which integration it and the efforts really were I of reducing and specifically in the directly the facility. we will core their and that California result Georgia, did in at around of head crop products lettuce cycle Montana Pete's as one the lot relates applicable to a is So centered in year R&D that this to existing highlighted be

in so we to and right the to are both in integration So Georgia California prepare now growth that when full do reps turn get plug-and-play. to really us systems what systems is its on we're those our technology do trying

Chris Barnes

to $XX run-rate is That's the Is million share that you per more you around able Flow, could potential that any timeline it. and helpful. Thanks. looking it Stack could the these XXXX in can achieve, just $XX year would medium-term? dig great. what be or Got there little as that implementing then And million to I any follow-up, think very that you'd would are that you like my to bit because just wanted Stack goals, just into conservative, you then, Flow. after and that excluding a guys achieve out seems you, color Stack maybe there drive add you share be And you crops to seems around that Flow and really so is

Craig M. Hurlbert

Hey, Chris, and and and it's question and that, ask very you going maybe I can it's follow-up that ahead. this then is very I'm with Brian Kathy, go Travis. great chime -- Craig. intuitive. in Kathy, we love a on question, to to

Kathleen Valiasek

Yes. Sure. for each rate The full $XX million that production of the run facilities. is

Stack and but excluding So QX, significant, rate Flow. is XXXX. Stack is $XX improve very would XX%, Flow and -- the in start which -- obviously obviously the will run yield million

Travis Joyner

$XX the other rate benefit the assets Stack run phase. million of the operating words, the horizontal In without is

phase Stack activated gets XXXX, the bump. in when So that you'll that's when incremental see

Chris Barnes

very that's Great, Thanks, helpful. guys.

Craig M. Hurlbert

Appreciate you, the Thank question. Chris.

Operator

comes Klieve Capital Ben Markets. ahead. question Please, go next Lake from Our Street with

Ben Klieve

my Thanks for taking questions.

just a you addressing. follow-up is question to Pete's around were First and what

soon on closed my as announcement. closure so an First getting acquisition guess coverage the announce could of of all, after the the of you quickly as I I did. wish this rest congratulations

complete the facility here, it there. expected from that X-A not Pete's first with around to to Georgia quarter, Phase because million guidance the is summer. of on the contributed much in congratulations $X revenue first when $XX million revenue seem and this question revenue contributions be But would So the expected be the is year my is

year, in talk specifically of the you this Georgia back can So contribution about please. half

Craig M. Hurlbert

it Ben, again. don't that. Maybe your combination Hey, we of Brian, great. nice voice off. can Yea, to and top Why start, have and a Brian hear Kathy answer Kathy you

Kathleen Valiasek

it's facility Ben, right? with very in say year. trying this do your X-A just will we're Ben. going I And the facility We be is conservative, anticipate that conservative Georgia XX. be -- of to hear to Phase great to we -- do July release very, well. do, and be in operational just trying What that the We're to the voice, the

Ben Klieve

Okay. then right. And -- Fair my enough. All

Kathleen Valiasek

comment. Brian Let's have

let's Brian -- Sorry, have,

Ben Klieve

sorry. I'm Oh,

Kathleen Valiasek

add. that to comments he'd [Indiscernible] like

Brian Cook

it the Yeah. ramp fact is but to along number, that be No, what I want conservative Kathy think to. you inherent there's we were on mentioning, sensitive that that the also was goes with

So $XX that number. we're million strong on

to we're see -- significant So we're hoping upside that. some and to

Craig M. Hurlbert

has over can been Ben, it's really leadership, one things about call question I and is comment. we financial delivering. emerge one plagued talk And the to of Craig. industry Hey, with what and want -- or One you under This committing would we over time that deliver And that question, looks And you the we parts. really obviously, on there, it a we're and earth we're on light if to lot move will moving you, your I like count but heaven math, what telling that. of little there's just whole good. do understand a it's

amazing comment I did that, we of that been team an that the moving on transaction transactions. very without Bill would these -- involved and in in CFO. I And on don't quickly. Kathy say their but and have by go want involved You many don't led Valiasek side, his I haven't Brian to I integration saying, want

just us really we we stop incredibly has that's I'll kind the risk zipping played like Pete's were be integration almost zipper gone it to and with be and together, coming what's allowed together, layers. business. meant it couldn't and down One of go helped facets are, said it's smoothly, of The different so at really has that up three the where out, was more many a pleased to there. zipper a folks like of

Ben Klieve

has the us seeing on hear your wondering the -- legacy total Got contributions my there update the be redesign to the size in construction us and it. paused integrated on. question to also facility. And from and you've And of Great give helpful each coming for if look and efforts today facility. discussed you that forward for quarters. a around you so you my that's I'll from here facility and second expectations fully And that Pascoe bit. business congratulations, revenue again, And the to on re-design of I'm then facility begun a an for is given expected update the timing can construction completed. but

Craig M. Hurlbert

Ben. start one. you Great Travis, that question, Maybe, on

Okay?

Travis Joyner

on just point very had I'll but and comment say customer facility, Pete's Yeah. again, the this a not robust also touched and I've diverse, that count. and only based, SKU

And Pascoe redesigned being for by of facility mix demand that's so, the Pete's really, the to customers. is the account desired side SKU

the some all our So to systems solving selection mix around gross and of tweaks as for a really result, and efficiency. capital

So away the And a I the to think, design. we're a have completion, more next updated add and should go-forward estimated quarter, still at chipping wholesome we basis. revenue timeline, on

Craig M. Hurlbert

can great I answer, you a that Travis, forward That's next quarter. think that and look to

Ben Klieve

Okay. I'll in and Thanks queue. We'll back Very taking questions, get good. then. for stay my tuned,

Craig M. Hurlbert

Thanks, Ben, we you. appreciate

Operator

question ROTH Capital your question. next with Please Our Brian proceed comes Partners. from with Wright

Brian Wright

and the Phase number Number X and understand Phase Stack of Hey. there bit footage. consist dynamics Flow, to that? two, what the get little traditional in Thanks. each, of function a Good afternoon, for is high-tech and is maybe square and this. of XB, X clarification then terms multiple is Phase and the thanks X-A Wanted more questions. one, or Phase a for on Wanted to greenhouse is it of also to

Craig M. Hurlbert

let is and Brian the appreciate question. multiple, I'll tackle Brian, question. It thanks, that Hey,

Brian Cook

Brian. Hey,

required of is that original head additional of square work foot an XA footage, Phase of square XXX,XXX Phase XXX,XXX X-A part was system. house is was as done actual square in and production the our design. XB So part the of feet that's channel

house. becomes So as Phase far a the head from as B just needs bolt-on requirements

there's footage no additional head side. the So on square required house

Brian Wright

I going kind is XX was this about understand I Okay. if the talked revenue we up, kind capacity And but haven't of I asked I facility? of is then full ramped [Indiscernible] before when and my through the Georgia everything notes and of the apologize fully what

Craig M. Hurlbert

Kathy, that but to take go want do we're guidance, Kathy, not I'm that? sure ahead. you giving

Kathleen Valiasek

Yes, question, to hear Brian, great thanks the for your and voice.

can Maybe on gotten call, far the not that not we next facility, specific We that that we've got have specific. just just specific. update give we gotten an Georgia but on haven't the so

Brian Wright

could just California that, I Can what that's us Pete’s? you totally remind and understandable. If are sizes just for the Okay. on follow-up facility

Craig M. Hurlbert

Brian. Hey,

Brian Cook

definitely. No,

Carpentaria about facility of Georgia to is same a acre. and important is the acres, that retrofit the little the over facility our did as in that has facility XX the XX we an Oxnard note is it's facility So part system a Oxnard newer acres, which and

that's -- now. just I been we're to that XX want an about three little doing you give acres for so producing comparison. leap between apples-to-oranges California to in a in And year-and-a-half that To don't the it's because acres does the what make Georgia

Brian Wright

Okay. Thank you.

Craig M. Hurlbert

else? anything Brian,

Brian Wright

it do will now. That for

Craig M. Hurlbert

Brian. questions. you, Thank I the appreciate

Brian Wright

Thank you.

Operator

This last Stanley. question proceed Kaufman comes from Pamela with question. Please your with Morgan

Unidentified Analyst

Hi. long-term just about afternoon. [Indiscernible] company's is This to plans. Good space the touch Pam. I facility on expansion for wanted

was prior Pete's around to in XXXX, facilities this So going to back initially eight in company acquisition. Investor Day, outlook having projected and the provided a operational facility

discuss the soon ground the for company of that, timing and breaking comes gained current What then it Georgia. another of facility projections considered facility? also to And the So two the in then California related of location operational you'll when in that facilities to through now facility 'XX? determining priorities facilities you strategic and that new have are can

Craig M. Hurlbert

so Thank then much. in. And I add and the maybe start I'll Great guess you appreciate can take questions, others questions. [Indiscernible]. at I a this

to there's We're I facilities. hardy we're at to customer doors. in conversation Pete's, where be backwards prior. of looking as locate now of what's we're we with now kind accelerated in that, conversations And just happened of really And facilities. XX,XXX result some there should we placing the that very the is going works where around having in were a think conversations the with conversations acquisition we're the people

pre in many having the and a chain, I agree Bounti are customers place, higher-risk I Local that while be right can to going quality So looking Pete's in will a Local supply, now. change And developing plan supply. we a think supply over back-solve backwards. customer world Bounti time, for think on -Pete's lot had plan of with there's of all And product, also guaranteed

that relates that. of And in Travis, will we're a plan stop it So there. announcing, upon you we in be top each very conversations. will and on thinking we're that. what I'll as interesting overtime, can add to lot of quarter, develop maybe

Travis Joyner

you that. think Kathy, guidance though. pretty know XXXX specific around wanted I don't handled well I to if give you any

Kathleen Valiasek

Yes.

alluded, forum we've in as year with I Craig and forth as talking just In -- we the to quite we're there, we're build think get then their of also versus fulfill the numbers that And going consideration. a also words, we set counting a in time there metrics. probably of customer hey terms in public we're bit that the -- now going Right different way. all making we're said not last comfortable get considering to other we're buy spending counting, of is sure we're had a to we're financial needs. facilities, what

Craig M. Hurlbert

interrupted you. I ahead. Go Sorry,

Unidentified Analyst

just it a how No and you allocation, Return where mentioned the assess to then problem, helpful Flow for buying Stack technology. you. color. comes thank capital you the on when question That's Investment opportunities retrofitting And and as follow-up capital regarding there's Greenfield

room consider and do that company the transaction? guess ready point continues what at might another I be scale, you see on for as M&A basis, to more So to you

Craig M. Hurlbert

question, good really question. important get Great Right. question. I A

smaller going leader us this to about decisions strength. that has our all most us great And today products. I question by ground very And I have a started we There's be the on combining customers, we considered sit Pete's of where inevitable, which as CEA. I think focused cluttered the But few to we stay happen we out today. start very this level lot what's space. to is be of is will the talked listen time. not the over as that there's and controlled space of environment ever do inside will to undercapitalized. and said, think we'll believe and of more leaders at if the since the it happening I And of be that that think agriculture, will may math in from we is, be emerging think of Which do is I believe going players, of we will the consolidation plays a a the geography, like we is understanding delicious with will And inside you say, making answering of to and industry what's industry. we delivering that it's position I really and

would yes, the a but So over forma a I pro that give say to is period. possibility timeline, hesitate I you

Unidentified Analyst

so you Thank Great. much.

Craig M. Hurlbert

you the for question. Thank

Operator

and at no over to gentlemen, this call back like turn remarks. the conference Q&A showing time, I'd closing for I'm to session, Ladies further management the questions. end

Craig M. Hurlbert

own Please to reach will certainly behalf doing day. think how of all doing what have much of two gel. time and and a of to we Local everyone we're I your directly today, out of your Everybody employees help will great attention eyes really it have with our there to your their as come you on question today. and us so and see facility offer like in behalf all Bounti, I time for the it, we're all for put this us, we your Well, out On we you at thank interest your would to certainly company. would thank XXX love well,

Operator

you attending. conclude We Ladies gentlemen for thank this conference do and today's does call.

your You disconnect lines. may now

Local Bounti (LOCL) 10 May 222022 Q1 Earnings call transcript