- Earnings call transcript Q3 2022

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Operator

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

Jeff Sonnek

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

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

Craig Hurlbert

Club making solid on several completing of was first of of third to out headway that shipping resilient Bounti Thank you, of milestones want Georgia food first including Consumers, against which produced Jeff, quarter, We Georgia and zone of morning, new news drive will in continue the facility, supply earlier and the we integration locally our big the deliver grown, quarter our operators good our agreement a with from produced out and With high-quality and the forces. alike said, Stack fresh our during demand. important our We consistent a margin to our Pete's service week. everyone. Local retailers costs expectations. construction the is protect achieved product and five-year with that and inflationary off-take announced that Sam's persistent business, this chain items

engagement developed of We thrilled Club with in great the our decades. experiencing trust the locally and with and Sam's is partners by we grown our over team market's are an are products fresh, several our retail produced example excellent agreement the have tasting, the been that brands for

the unbelievable IFPA been have and event recent We canvassing response an market, in our sharing Orlando. at the received progress

by a In year's fact, trend Bounti Local this top as Packer was The recognized show. leading periodical, at industry a

our recognition honored are of team's for We work. their hard

breakeven cash known-demand maintaining and greatest We our decisions is In sharp terms our quickly diligent to capital deploy to we on and to margins, our meet remains can revenue healthy our how flow through on one efficiency approach possible. existing This capital advantages a as scaling-up focus gross so foremost our reach our base. approach, network. informing customer with generation to maximizing rapid eye of remain we continue our can to in invaluable drive that on we of first efficiently as most facility

business. having our taking the great that business continue necessary shifting to the we a the in network macroeconomic globally, drive we attractive is up believe generation way flow continue for unlock can the have cash our We potential inherent in to margin appreciation our and scaling that keen impact environment is that so corporations most are steps on possible, efficient to we the and

various to development President, and our and commentary Travis. over to before drive CFO, some strategies, our utilizing Cook commercial pass are Kathy that, further financial construction her With improving unit will around co-CEO, it I'll then review. our Joyner Travis on provide our concludes Valiasek, you, Our projects speak Brian product technology economics, we will an how with our update growing

Travis Joyner

Thanks, Craig.

We turns corners have finding economics. our comes beginning, for through strive an appetite in ways our insatiable crop from we and said unit novel yields and achieving low all four of drive all efficiency business. for It design, yield efficiencies. we back enhance productivity our high Whether technology to Like to level or the cost.

times ability plan to been our Unlocking Flow is yield greenhouse Fortunately, advancements we ahead continue XX, facilities drive those operations, annualized advantage yield by current improvement. is year is half traditional we as comparable excitement apples-to-apples & and expect in growing differentiated being and one done & Evidence the in gives and Montana Stack to facility this a while disruptive, Technology. our This to improvement our to ended improvement in drive prior in the fuels about us which will strategy able for to Stack our infrastructure hard from existing ultimately advancements Flow. technology that facilitate the highly this Flow opportunities Simply manner, we on of versus direct leader improvement times reflected to iterative XXXX put, capital. our capital-efficient on and in period. patent-pending a improvement compared be and make an with a yields continue our Stack our September and yield execute direct to higher XX% improve to to & the have Year-to-date drive two on lie highly improved return reducing investment work systems CEA. Hamilton required in an future comparison highlighting facility progressive have our

each of impact facilities. do expected R&D innovations further are at not improvements enhancements of Importantly, future these accelerate to the our and that performance existing and reflect

our yields are to crops applications & for opportunities costs leafy not Stack excited discuss additional anymore. Flow and is growing and advancements yield, Stack our just technology and Beyond reduce of across Flow of to variety to we a & environments. increase

long-term in we agriculture. Key continue as to robust process believe across the stages Flow initiatives and place & We high-value adjacent berries improvements, early trial a work innovations are has vision, to hand-in-hand genetics, of to computer with crops technology apply in controls. portfolio the efforts produce longer-term that future production, for IP our projects Stack our AI very into and translate important our to of a such

IP are moat for & quarter would in I'm growth. portfolio to achieved one Brian developing around that important is our the the let to on ensure hone-in mentioned like competitive over on Formalizing thing long-term positioned the and we last we but briefly. Stack of well an milestones will Flow key Georgia component we that are going focus Craig

with our our in of completed facility. has The and critical broader is this been strategy first Georgia a section element Stack of

his fully has We to that can appetite it increases of well. our approximately it facilities as efficiency Georgia These yield has and XXXX. from also to remarks. over evidenced for and Washington add our us continued half to central in XX% to efficiency Georgia in Hamilton efficiency capacity. like to gains and being second is business bring design facility and are actioned That help the in that implemented itself Washington operations when learnings same at our this by been Texas, foundations expect Texas manifested capital now the our strategy. our but of for only efficiency facility pass Phase future Georgia Early and I'll Brian will not Xb bring help on prepare

Brian Cook

speak progress our of Travis. some update new on testing. facility quick then are of I'll the we product with start you, to and Thank build-out a the innovations

As we Craig facility. Georgia achieved several milestones significant noted, our recently at

larger commercial First quarter continuing third and scale its foremost, toward progress product while we production. facility from achieving our the first shipped during the

that how benefits in our ahead known allowing fashion. efficient service club absorb Sam's a from advantageous helping freight are We overhead sales efficient will can Flow addition me future more demanding provide build-out, help extremely are just finishing throughput this us category them advantage achieve. local our customers, full brings the of to to. But and Club channel. our And greater the alone with customers facility forge commissioning off-take rapidly benefits significant month. Sam's to capacity savings with new expand our into California stores later important compared huge distribution our an & access supply the a three-month Club This Georgia important of an ability shipment product will agreement the changes the providing advances The from drive will to and cost a for drive is lie opportunity for cost us are perhaps as sales availability highly back category to grow us. technological ongoing from local, facility. after it be consistent savings in in demand system reliable basis, agreement. Stack the immediately Bounti capacity new prior this this Further, CEA excited margin our process that to are same-store which a with and for Local within on

our In Stack terms progress completed of the and as Xa of first XXXX. go recently quarter facility first of our will into section current XXXX, we has service fourth the of in during the during which quarter team Phase mentioned,

is began Phase earlier Xb and shortly rapidly capacity is and effectively be operations planned will construction Xa and expected XXXX than along quarter commence June doubling the in construction now the Xb capabilities, XX a Phase Phase reminder, to moving Georgia and greenhouses. size of in completed As of mirror first the in thereafter. facility to

and become Xb Phase the Stack operational the will quarter second and the greenhouse Phase XXXX of our integrated fully Xb with completion infrastructure. Following of rest Xa of during zones

In part to November. land the closing are Mount community on later of facility, in terms become Texas of the our upon excited we in Pleasant,

to capacity how we base retail are together grow the same category. to greater the is engagements working be Bounti and to help will can Local existing following to We that our that Georgia, identify in our say bring and customers of which active playbook them customer help with

integrated Flow high be site, have this which & expectations a future will facility and comprised Stack We six-acre for greenhouse of technology.

additional share those This contribution move with forward, project site the composed Stack zones but quarter XXXX. of stage three once our to of plans the will With quarter be the fourth in updates targeting completion to multiple to in this Washington, at are to will acres of operational this begin greenhouse. continues be facility Pasco, respect we anticipated We at third in progress, facility's XXXX. on facility

for Northeastern for our looking as of network, a regional potential planning is our at expansions. beyond In home existing growth facility terms future one next the States team of locations our in United currently

of Finally, and I'm new of value-added on SKUs and with some on In quarter. salad in you two Poppy test the to successfully Bounti the innovations Modern stores of Local the launch's third excited value-added our move salad to reach success first to-date expects future. October will the kit and additional Greek with advance customer with commercial the Based XXX share the front to XXXX. phase feedback launched some Power. grab-and-go launch our beginning updates Local quarter segment just next This near forward approximately is sharing look SKUs the expansion, the more adding and into Bounti in exciting the space of in news

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

Kathleen Valiasek

cover Thank I'll you, our quarter Brian. results. third

year compared interruption prior Third company's from $X.X on quarter $XXX,XXX XXXX down period. were XXXX, sequential million, facilities to provider. the second Quarterly delivery logistics to were of slightly revenue sales quarter a isolated basis with in the as California due versus an the

commissioning Although, Sam's the the therefore, third XXXX prepare were facility, still quarter for revenues quarter. associated fulfilling is under operations and of demand opened Club third our phase Georgia facility quarter shipping product in and of immaterial were out to

of increased Revenue excluding our of sales Adjusted our which consistent production begin facility second pivot our to XX%. was compensation were during XXXX. the the our and temporary initial Reported from was execution with Club expect this month. with second gross pleased decision to margin, the third our depreciation sequentially challenges third efforts. gross quarter quarter gross Montana our quarter. We of profit that margin approximately more recovery XXXX, supply We Sam's in later of adjusted quarter was commercial XX% stock-based rapid to were XX% shipments following towards rectified from in

we and COGS and making capture great Pete's are between Local continue the synergies Bounti operations to we ahead, to see progress. opportunities Looking already

XXX of million quarter prior XX, on cost more amortization interest depreciation, million and existing from of $XX.X and by PIPE in & facility, discrete million September costs quarter, and a XXXX, coming cash, packaging as a other end proceeds, a we as credit $XX.X and than guidance our diligence to investment due and total fully our From $XX reaffirming transaction with along XXXX, BNP shares. these since of EBITDA well. of we've fact, on had capital outlook, was $X.X Adjusting Fidelity costs. $XX we arranged the approximately XXXX, our We October in our loss includes perspective, at $X.X Pete's loss $XX.X on and strategic reduced least PIPE Management million third actual cash, shares XX, integration-related acquisition September count million million significant $X.X $XX.X cash revenue to including comparing restricted of units when XXXX, approximately to and and it quarter liquidity. investment cash Subsequent Research diluted our Company approximately to Net forma our million was the undrawn with outstanding the for and capacity employees $X.X stock closed, XX.X In a had expense, million investors, items, and of September respect ended with of in company, the equivalents of have to we The restricted million our XX, equivalents XX, outstanding, feed costs warrants million the on stock-based with unit Paribas, management. million XXXX structure million. Cargill. of cash the for per are the $X.X million added our million. and cash, performance facility for compensation, adjusted as our credit of including third provides as reduced share $XX we XX% With undrawn pro restricted basis, well capacity

XA implementing legacy to facilities, $XX full run expected Pete's and initial Flow also future additional to California continue due Phase from from & capacity of across at expect the at Georgia Stack We our impact achieve excluding rate least revenue million positive production to facilities.

In of have to we cadence, EBITDA quarterly point-out quarterly been each losses quarter our public. terms like I'd that since our declining went adjusted

Given losses than flat our to we or quarterly XXXX. adjusted over full to be that that or through decline expenses Georgia quarters, two and lower each quarter will the continue given that is next EBITDA we our SG&A ramping capacity quarter prior that anticipate anticipate up will

strategy around Of We the we which of buy model business. acquisitions part capital any are this thrilled potentially versus making course, for advantages demonstrates approach, of impact across each of our flexibility revolves of and our growth progress summary, the efficiency. of are as we our expectation. the this could potential believe with our the build change area In

doing fluidity especially continuing construction our and to offtake Sam's commercial environment Club, agreement navigating easy questions. on build-out this concludes execution update of the milestones a this supply for the no of task team's job, new wonderful our Our on keep the our achievement complex of with Operator, on That look is is to opportunities identify progress chains. remarks. CEA schedules given and exciting team to is We growth forward exciting the open new track you our call marketplace. budget, which execute we drive in please and on prepared to as

Operator

from Street Capital. Ben state first question. [Operator comes question your Thank open questions from Our Klieve Please you. for The is now floor Instructions] Lake

Ben Klieve

Sam's to also that Sam's. kind of are if on how anticipate one, my share? And your the minimum announcement questions, congratulations this metrics are, allocated that much questions you this facility then I'm Thanks on right. throughout Georgia First, either for are life being wondering of to taking agreement of Club of you the All volume my here. there committing you can And

Craig Hurlbert

that with Craig going the question. candidly Hurlbert. Ben. Brian morning, playing is I'm good that's Hi, to because Yes. Appreciate let been us. take the one Brian point

want do tackle Brian, that Ben? So to for Answer question you

Brian Cook

Ben. morning, definitely. Good Yes,

to Sam's Georgia excitement around all the as just sensitive it our with as customers with details the be trying the all relationship excitement and it. away. Southeast the but just our to to overall Sam's, But the Xb, it So we're facility of not it the to very really agreement adding Club around them, pertains and pertains in with other right drove

Xb we looking the at Southeast. So of to are online business coming satisfy the help requirements

Ben Klieve

you, you. Thank Thank Very good. Okay. Brian.

it Texas Pasco of pass going I'll Pete's then and Flow & expanding availability I And and the finishing talk here committed. kind me plenty initiatives. on Georgia starting there's the I'm mean various is And expansion collective here. help initiatives into suite funding integrating from on the one, Stack Next capital of over initiatives kind that's of understand for level throughout capital about this the then us can been year? hoping, end your now between CapEx next of of these and you expectations, already between say

Craig Hurlbert

Kathy, that as pile-in, of such It's we'll then all an important okay Ben. don't part the tackle first you necessary. question, why and

Kathleen Valiasek

Ben. morning, Good Sure.

So as we that time an or CapEx Pete's Local we acquisition, you right, whether dollar own as with be every and efficiency know capital do how about revenue Bounti spent facilities deploy such thinking drive of lot with we initiatives. their through at a

of place our Cargill, balance is our the raised with with The liquidity. our million be $XX on $XX some agreement Cargill, cash thinking Our and structure couldn't solid undrawn we place we And marquee have long-term in sheet of with better PIPE of million a investors, of right October, capital in with we our in now. $XX the million a currently in relationship capacity about them. excess credit on

We reach it being rate, and goals. to reduce nurture continue and relationships. a to and to cetera. to success help have for lending are more us those partners demonstrating all the investor of our said, interest we revamping our shown agreement progress our our We've That facilities willingness also had et broaden also

and helps in signing Sam's discussions. Club announcing course agreement, offtake the these Of five-year

the for are for running. repeatedly, each facilities Ben, Regarding the with meeting critical the them to said kind we've running construction their GC so lot we've much a amazing for ability because as bring in demand are given fact each all as up has and that to XXXX. our we been one for not on has chain timelines of build I is us in-house of that because It's keep said ways of within up the facilities even the of we throughout do got very the get CapEx and that keep of team to country of and come guided fast pent-up intact, demand up that locations, numbers but basically, other the specific get to supply focused it our budget things. the as different and strategy, we buy to absolutely versus costs facilities, creative And to my to have honestly, which in budgets And issues our remarks, with function the just possible.

So hopefully, that's helpful.

Ben Klieve

Yeah.

Craig Hurlbert

Hi, Craig. is Ben other consider, have in many to the space this from CapEx thing One we've heard struggled others creep.

I think, together can mind that in forma but is holding construction with important happen a innovation. to one can of be the of of that the handled the on also things lot pro keep side, kind

And versus We're also our we're investment versus tremendous gains, innovation holds very really costs deployed whole revenue around intact well. so seeing EBITDA. thesis capital dollars managing our which

So ability and where we chain, our has thesis. to the supply everybody allowed are, even us innovate struggling from hold improve to original

us we're a way flexibility the things. of lot So, doing in it gives

Ben Klieve

Got it. it, got

of I’ll and profit gross Appreciate get back the improvement good. especially, Very Okay. you on and congratulations both in queue.

Craig Hurlbert

Thank Ben. you

Operator

Our question. next Oppenheimer. Rusch question your state from comes with Colin Please

Colin Rusch

a in talk those Montana? the might guys. Thanks how you you seeing learnings operating terms versus more the in of given ramp that to a weather you're you're able that about so broadly apply environment Georgia, be perspective from Can different in much bit and little

Craig Hurlbert

with Travis, Brian why start Colin. morning then Good you and can hey. chime-in. don't that Yeah, maybe

Travis Joyner

your generally are process Georgia. transition first-off on in being I'd speaking Montana Flow repeated in lot the in of for thanks of Stack a that & say, question. Sure. Colin, from working reps

opportunity get addition scale early in is always to we of and us reps, us to new that Texas reps go ability larger advent early the those Flow phase more Georgia, slow with it's to more Georgia. us And Stack for as prepare for Stack in that for -- and It's with X-B to it's of reps Georgia and more Pasco. up our going you before & Stack get Texas and those just even Georgia in prepare going the strategy, just of fast. get go So in integration tower give the our scale Washington. another And

Colin Rusch

I about at second high-value of little those timing great. Okay, around just the bit berries, that how into crops. is really guess first you the you things? could point this talk some question you're running a points resolving expect the And and the key friction of to if

Travis Joyner

a question. good It’s really

Craig Hurlbert

And in mind Yeah. think Such only important pro our had I leafy forma question, an Colin. in original keep it.

don't this an that is can our to with us question? been expand know then you why also And opportunity So you very chime-in you've for product I start because Travis Kathy, involved. maybe offering.

Kathleen Valiasek

Yeah.

of taste we yielding feel to large ourselves seeing our because going where of berries they are the speak the very talking we're texture a to with our globally in of And with a with our customers of berries. are is terms opportunity taste berries, In differentiation broad for lot technology and of thrilled suppliers it's that us berries. the so

And off so And lot it a what pass we're seeing of is I'll that's berries. our in to interest yielding Travis.

Travis Joyner

Yeah.

year early is and this how to the this trials Stack yielded interesting a think we whole that not strawberries, the promise ahead Stack application that play a you said other was quite and And raspberries enough blackberries a very technology we with asked Flow got & I anymore. the that we apply be such question we and it of and just our innovation within team believe Flow at have looked information to and berries around are berries few going to reps us for internally a place those built landscape opportunity and leafy we early and do would thesis year and perishables. really & to exciting

group brilliant & it's Stack the So people. innovation exciting can and applaud question special a incredible and where Flow apply very really just answering next. of Really It's team. a our

Craig Hurlbert

our place has Colin, he future remarks; in important Travis of technology an agriculture. his Hey the Yeah. in said said something

struggling good in we're in & environment. real but And technology see else example businesses to is and help that grow the Flow leafy that of seeing is think we but can apply monetize question Stack of we're is conversations. we're outdoor every also impacts out buried, many a to enterprise, to that going that deep that yeah, that in growers climate for other line space. where are how us day. gets very real an I And some our that with very going And where, change the and do we're this

So very interesting opportunity won't won't just us for be it there. and stop It berries.

Colin Rusch

guys. That’s Thanks much. super helpful so

Craig Hurlbert

Thank you Colin.

Operator

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

Brian Wright

Thanks. this, I Good but just I want morning. might have make to missed And sure for clarity.

So commissioning as relative expectations, process update the Georgia an can bit about provide far part like in the you as you a just, of or as could that's like, how to going? metrics X-A facility talk yields little any

Craig Hurlbert

Travis?

Travis Joyner

on yet. the been very that We guidance phase the Where release. that we're commissioning haven't Sam's is demand. Club specific producing provided in we really products preparing And the of still we've any in sit set Really relationship. for fulfill today to it's quite a

believe to and I expect product the can place. there, dialed-in in Sam's. Brian shipping And been So that when speak reps start getting it's to to we specifically

Brian Wright

Okay.

So…

Brian Cook

Yeah.

Sorry, in a that. wanted case little on just of color additional bit you

Club this on plan on the to starting are Sam's We week shipping deal.

tools volume We improvements about each and team continuing of that. in right the kind in a within the time. all toolbox have the equipment to There themselves. from it's about, facility And the was requirements question all the having the facilities satisfy see we're there of to

yields. those So make we're that that maximizing utilizing all we're of to sure

Brian Wright

it. Got

is commissioning the little far maybe for as the as different use bit a commissioning you're to some of process specific than quarter. of a it's So others

it? as So way that sizes that's away the seen. being a -- Is you're those quarterly of not about kind it's yields so growing to when And increase are specifically that right the kind full like, fair orders. orders think of

Craig Hurlbert

think Remember, as beauty the bolt-on. of a kind it. Right. phase, we're technology phasing in to actually of actually the been the of in because, Brian Stack Stack or that's Yes, as here greenhouse the that's phased and working has a -- now the is really fair -- part operation the about way we

in clear information quarters but that are feeling yield, about come the the yes, more-and-more, become all to what here seeing. very So we we're excited will

Brian Wright

you. Thank Great.

Craig Hurlbert

Appreciate Brian. you, Thank it.

Operator

from Barnes Our Deutsche Christopher next Bank. comes state question. Please your question with

Christopher Barnes

question. so Thanks for Hi. much the

talk are me, are you scope a of follow-ups your the wondering for And little of the with measuring could just bit do offtake that the in markets agreement from outside couple you Southeast. you success Which relationship relationship guys could then, think other to a Just I expand more how Sam's. products like, first about like was soon there? how

Travis Joyner

Thank Christopher. you, tackle question. appreciate your you Brian I that want to one?

Brian Cook

And whole Yeah. about has to in time -- back have of this Sam's initial really just And I we're go making. kind been the will. not with actually the agreement some excited to an trying of length for also the they're do regionally. to what as agreement but it close of to said, we've business. All being us sensitive that what very and could part mean been have their

I we markets as are specific will involved will this hitting And so about is far as those the what tell is size the this one or And pound the program. spring anything on. be repricing coming you we're the stores. of in club too putting out not week week next what mix is

Christopher Barnes

Brian. Thank it. you, Got

Craig Hurlbert

But manifests as products. Brian our the are sure that we just tremendous seeing obviously know then value-added broadly. more asking of use our for some thought with Sam's also The this as little traditional in bit in about I'll with just you're to Christopher, of category across that. the type and products tremendous I opportunity And U.S. an And momentum. agreement I but Club, just seeing making. Sam's was on think the a is one said which interest whole more really speak

space. products fresh this a So concept on chain the supply simplifying focusing of is very, ground the locally in it whole very chain on real grown really securing supply movement

Christopher Barnes

around on are to earlier guess why hand? whether normal I That's cash to question like flow given all expect like like And or curious, is the around again bias do -- was level don't makes know perfect like any like of will have that Georgia raised the of into to years. there expenditures through in next recently. funding do like about tap regards like funding guys in come cycle. the over for improves sense. My your this from, I that. operations ability as you follow-up you -- revolver, you availability, you I just where Ben's just just cash equity just necessary -- to going capital issuances forward, couple equity your into was look, you talk the lean understand capital want I'm just

Craig Hurlbert

want that start do to you Kathy, on one.

Kathleen Valiasek

Chris. Thanks for morning, question. Good the Sure.

balance little stewards a of was the PIPE us. So did a capital reason the for bit, really partner being good just and right? strategic Cargill up sheet fantastic we shoring our is why just

And are that I to with are say comments lenders very, so really other did us leverage in able interested very always working also close with relationship. I my in are we that earlier, mean and other investors, we answer say. just currently a mean, I'm again go trying we question? have don't out equity I plan to would your to to the cetera. et much think, markets that does is I pretty institutional the what

Christopher Barnes

Yes. No, on. no, much. that's helpful. pass I’ll Thanks it so

Craig Hurlbert

you much. Thank very

it. your yes, -- question. appreciate think thanks I Really for

We are what already of those are that maybe creating in is on Stack remember, and et that facility. capital of an markets geography and side. others several. will us industry to them for out opportunities of customers, opportunities many on about talent, create extra thought technology Local can we the to potentially inorganic or are the be primarily yield the existing our the Bounti have come means is bolt-on know cetera, going existing horizon. to we struggling. on us We've XX% name realities I their get that heard that could that XX% about to there last for because, think us ability operators That's get And in could one today the and operations the

us. So very unique it opportunity for creates a

So to us because to consistent going we're in going capital is markets being a capital need the be thing, grow. to

o’clock this challenge and morning that that snowstorm, manager, is members at and in Our many of and and by know about able we we're our products of morning everybody to team really the facility are the at going. dollars the morning, economics just his an stewards in really in of is, good the capital listening I unparalleled. excited making give of continuing really in. the many X listening making that's challenge delicious Montana that deliver fantastic and are of our we those sure I'll company consistently This capital you company, have where most And this innovation example. in [indiscernible] we're have unit employees

is this cash that's So deploying on on deck making ultimately And we're all positivity to all us. EBITDA hands getting capital sure and properly the getting that great a definitely returns, proper with horizon and flow complete capital enterprise, the us positivity. for that

Christopher Barnes

helpful. Craig. Thanks, That's

Craig Hurlbert

Chris. you, Thank

Operator

from comes Please Morgan question with final question. Kaufman our your Stanley. Pamela state And

Pamela Kaufman

Good morning. Hi.

Craig Hurlbert

morning, Pamela. Good

Pamela Kaufman

sell customers question and on have of is announcements. beyond Georgia building to curious the is Congrats of in but in other the Obviously, capacity that's first just all what volume are you distribution retail important Sam's on where facility. Georgia overall outside I production know excess strategy. Georgia to Club? relationships And the Sam's Club. development, an on Do you My production your current in in

Craig Hurlbert

that? your Pamela. question and important I on why tackle working don't hard an Hey, been That's you that. really have team know you Brian,

Brian Cook

and you good morning, Thank Yeah. Pamela.

to important needs to is to very our in Southeast be So volume the XB satisfy totality. overarching going

availability a about the are continue retail. local extremely having stores the and that so of on. the here to a online Sam's have And QX coming of But be that in Club. other in Southeast could addition towards today going online hundred is extra We we important we're already local that with progress come in XB we are where to lot expansion. we're really at continue establishments that retail to to areas couple in excited

Pamela Kaufman

just Are you label Club. to products on them? be private branded or to Thanks. selling Sam's clarification going a And

Brian Cook

Yeah.

a great it’s question. So

week are Pound. with Local next a branded we launching one Bounti So

Pamela Kaufman

then Okay. Great. And

Craig Hurlbert

Hey, Pamela?

Pamela Kaufman

Yeah.

Craig Hurlbert

We Pamela, there's think the there. chasing Local at they're important fresh. an there's we that's important and so kept but across component not I with local Sam's Club, to point board named that just resonating Bounti the retailers, because local is really that local and it as hearing

comments. Brian's of top on thought a just So

Pamela Kaufman

be that more brand a retail to think you expand for gain great presence. as I the way And will visibility your

Craig Hurlbert

Correct.

Pamela Kaufman

the considered Pete's? versus your with when next to then on build and criteria question is your selecting you the Pleasant buy did decision other drove that like build to it My Mount facility. just you there decision for What

Craig Hurlbert

thing The us customers now I Pamela. great want they Pete's now facilities. Thank you. our and can are place in. anyone start Another chime we great completely having are about question, a voice is integrated really else will in where heavy and where to

by So is driven really our good facility Texas saying this our distribution sense. centers, make conversations with here's customers here's would where

those facilities. dollars loudest to back honestly, to delivering delivery on for on that room else where our to in is desire And to want comment. really retail outlets. makes down confidence forward having put great of it side going that's capital a them it you to it if degree LB and the kind we're to so their open see be I'd where the and voice of into we're mechanism And customer be probably products the always the high have up to able moving to putting to anyone sense add get when their

Travis Joyner

Yeah.

to best we're -- would about I serving we're do we And when add DCs, that to highest we DCs in on the Craig's to just of our have life serving. region to that for think also point number possible want get team. we're thinking that we're to planning I really where that make the locations of able trying sure about we're

a don't home product in a can't want night. spot they So if we're family delivering where their be at we be to with

pertains was puzzle aspects what piece in as serve to And and to access of ability possible. these But of to so of site. each important different all very lot becomes that the kind kind the marrying the a of a the the maximum of with it it makes to good them of has of earlier, mentioned DCs time DCs it to do just

Pamela Kaufman

Thank helpful. you. Got it. That’s

Travis Joyner

Thank you, Pamela.

Operator

it question. final for over I'll remarks. to closing our Answer was you That turn back

Craig Hurlbert

interest for time everybody with Local very Bounti. your We'd forward much again And so thank everybody meeting. like speaking to soon. you thank look We in concludes today. for now This to your the

Operator

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

lines. your disconnect now may You

Local Bounti (LOCL) 12 Nov 222022 Q3 Earnings call transcript