Marrone Bio Innovations (MBII) 11 May 202020 Q1 Earnings call transcript

Good day and welcome to Marrone Bio Innovations First Quarter 2020 Earnings Conference Call. Today's conference is being recorded.

And at this time, I'd like to turn the conference over to Linda Moore. Please go ahead, ma'am.

Good afternoon, everyone and thank you for joining our call. first conference XXXX Bio for the Innovations. to quarter call earnings Marrone Welcome

today CEO, Kevin Founder and the are On call and Boyd; Chief CFO, and Pam Commercial Officer, Hammill. Jim President Marrone;

refer to that expectations, future, you call hopes, If you intentions conference would Slide I strategies to this regarding would statements contain as or X, may beliefs, remind like management's the please regarding beliefs or circumstances. management’s forecasts projections, company. other future and Such current are as future the or characterizations their well events and on statements based expectations on potential concerning developments of effects

control no from future and other those risks these statements those cause may There different assurance can or assumptions will anticipated. statements. by a company involve affecting uncertainties, be some be to that management Such or has be results that materially management’s actual expressed developments of of the performance implied which number or that beyond are

cause uncertainties of or the results our XXXX website. or one on factors risks in release material Exchange more vary differences may management’s report discussed any with materialize, company’s on company are could the or annual of those under Form by elsewhere the the earnings in contained Should should the today. assumptions prove these actual company’s posted in Factors and in incorrect, from heading, respects Securities for year the Important ended and that Risk the reports and XX-K including Commission, filed

the hold forward-looking our this may reflect of estimate. After session. update obligation or remarks, management or statements that this to call question-and-answer time any other arise call. we that The guidance may events guidance Any disclaims in in to or will after circumstances any a expressly a date conference represents offer company point revise

Jim Boyd. will I CFO, over President turn our Jim? the call and to now

and Linda, to this you on you, call. us for thank everyone joining Thank

of sales ever to Margins margins XX%. quarter year-over-year gross If our ever seventh Slide you quarter record at consecutive quarter and quarter our a also largest X, quarter consecutive and $X.X sixth came XX.X%, million, in largest than in our first turn revenue greater the would our were of growth.

momentum for demand the fruits, critical for the hemp as saw our and growers We spring products specialty the preparing are United cannabis, markets greens, leafy season the continued in nuts, States. in for in

Our largest continue Venerate, were adoption. see the in products quarter Regalia which and to increased

representing despite our earnings calls. Momentum in one distributors program California top crop that Februaries California, investment of the of record. driest our year-over-year, been specialty to was almonds. our on strong about particularly effectiveness Sales driven have commercial in the past in six by the our Sales were over few team in XX% grew BioUnite talking we

growth As you in earnings may XXXX recall, than expect had said, in last call we in our greater XXXX. we

XXXX not growth of the than for We of which first revenue treatment had think year-over-year representative do we annual therefore, expect growth first quarter we to of this be in we sales a is our will pandemic, XXXX. continue of XXXX the This the quarter is our balance XXXX, expect higher. total because expect revenue larger COVID-XX percentage seed notwithstanding XXXXs for

second quarter, the prepare Farm quarter, Pro our anticipate modestly benefited a treatments portfolio. our full farm from We season first the companies in in part of starting significant seasonal seed seeing for distributors from would are portfolio sales the seasonally, more our of row seed but also a as contribution greater become growing and a we We’ve shift addition crops Europe. as pattern in the in

well of continuously favorable margins improving that product gross gross pleased I realize by as continue as first the with to am at margins XX.X%, driven particularly we quarter product in level a record coming mix. our

navigate very employees, and The are achieved revenues cautious of COVID-XX effects first the are our working a and quarter, of the and first health our ravaged global by as taking pandemic. in we economy the we we customers a safety suppliers through operations, margins record record approach While to priority.

steps However, economic result to our reduce several as we of times, operating a have expenses. taken these uncertain

in remain our primarily we manner We so on that supporting preserves times. have and through jobs, a customers difficult done as serving these farmers focused

help very concerned food is conscious services and to provide. the and are who way in than the we support environment. think the best with products And agriculture and We anyone current suffering we continuing we can is

million, charge, million expenses, $XX.X and $X.X non-cash $X.X year-over-year. the that was increase quarter, an was an of of which in increase Of amortization compensation. $XXX,XXX $XXX,XXX were stock an operating first For expenses million were increase, $XXX,XXX of which

to million commercial of consider progressing operating $X.X that expenses, Marrone to of reasonable Finally, for The well Pro Farm's represents is acquisition Pro are value and synergies the the the we shareholders. due of increase Farm operational this addition we Bio the integration realizing was acquisition. meaningful and which from

with Pro compares warrant of $X.X Farm expenses, in The by amortization loss was increased a previously the increase gross the the from was a acquisition, intangibles increase associated $X.X of stock quarter and non-cash of mentioned during $X.X $XXX,XXX to is first $XXX,XXX compensation operating addition due adjustment million remaining expenses. an quarter. the transaction. XXXX, Pro in was with a net largely million. million loss of non-cash $X Farm's $XXX,XXX increase offset XXXX million of profit The our the increase of of non-cash net XXXX, a in

due the Pro from in Adjusted EBITDA, $X.X million expenses. addition quarter loss The loss a XXXX, XXXX, difference. first operating $X.X in the measure a a million was $X.X of million quarter Farm's non-GAAP of the of to first increased primarily to increase

XXXX, operations Farm's decrease decrease working decreased $X.X The of changes quarter in a expenses. in XX.X% driven the from addition primarily million by XXXX. capital, of the million of by first the offset first quarter $X.X Pro to of operating was partially in used in Cash

our balance Turning to sheet.

$X early XXXX. XX, the and million due initial The $X.X cash quarter, XX, our the new million our line line on million or unrestricted we cash our December million As out warrants to approximately Backing $X.X inventory XXXX, was $X.X those March facility, in increase were in of of cash $XX.X $X items, credit. and to two million with million of burn per expectations. equivalents draw month under had a compared draw of as

any of I And everyone's want severity to our We've cut including a and two raises discuss Before to uncertainty, my set XX/XX we budget state, other including of last among I recognized executive the reflect opinion, and crises, a my would career the to Friday, early in seriousness and topics, several recession. the Black like budget my do that them. I've you adjust the freeze our our been XXXX on serious through XXXX, moved to cut underestimate quickly potential in team, of one worldwide not are XX% operating salary job. a during COVID-XX pandemic, But maintaining for we regulatory cuts. voluntary in

subsequent our our in Slide to the company's the COVID-XX X, and we the and business mind, risk of With turning quarter, balance economy. more sheet, that in strengthen significantly two new to took end to reduce actions

Securities of First, Coronavirus in fact the that has Criticism the part helped our $X.X been received signed uncertainty. March XX, maintain that Act But of is, on the economic Act, mid-April, Paycheck matter Program and we for applied Relief XXXX. leveled workforce the for the us public of law face under was participating, companies at into or Economic CARES Act Protection million Aid and as loan in

most are the during valued people us this Our PPP and maintain time to crisis. our our allowed asset, loan of workforce

if exercised this of timing current and next EBITDA moved $X.X we and operations, agreement take the warrant two month, million with given financing our to million in in Second, proceeds, a investors, of outlook tranche may that quickly plan. earlier are over up warrants sign $XX level in provided years. to exchange us amount The is to existing full additional the institutional in each breakeven designed an adjusted to and result

breakeven. to as reduces gives how by transaction immediately also therefore of number This to outstanding It you our approximately warrants path see total XX%. our we insight

any and effectively reducing dilution. transaction We warrants by the this plus very the XX% for reduction in its XX% end transaction the therefore, by will shareholders, believe removing end is overhang. a reduction XXXX, and result significantly in of the a company this Specifically, expiring normally question outstanding potential outstanding warrants other and risk in funding warrants warrant eliminating year, this positive of of

In conclusion, through a are their quarter part momentum to approach safely and period plan critical to is a and We the entering everyone a are balance Farmers cost taking in continues we the imperative of strong first that cautious else, for deliver that it like momentum them to sales good XXXX. XXXX, balance as year. of a remainder we expect we continue of effectively. we our into business, had the and that saw support sheet

these remainder of the control balance tight we quarters gives newly margins times, uncertain sheet in expenses, confidence us XX%, of of excess and Six operating forward look during our to the strengthened of as year. our

I turn With Pam that, now the would like comments. for call her over to to

Thank you, Jim.

and quarter adjust are brought Slide to world pandemic. to working around a the tirelessly environment. a by Turning by supply, on highlighted COVID-XX was food X, progress they the Farmers the changes continued commercial as adequate first tough economic ensure to in safe the

driven been insight team by and Bio acres penetration strawberries, almonds, last crop. specialty earnings and XXXX, Venerate Treated our leafy Like into pistachios Marrone in we've market with with gotten at accounts. has increased our the year-over-year crop by stone some hard increases at call, work, Since XX%, Grandevo growers, greens, by significant fruit. in

insecticides reduce results program standard We return top combination Almond two damage Grandevo mite, California. investment. one for used to Fest pest for a on with the above saw three in BioUnite our of orangeworm the providing neighbor and in grower strong and program, with launch the Venerate

on want Regalia, product to on in XX% our almond I Bakers. program. BioUnite acres XX% oldest XXXX, push more more our was through and In California sprayed Also,

health with in acre launched to and plant portfolio. vigor, conventional product Pacesetter per row addition States, plant and to United plant per newest for improve in resulting to BioUnite the bushels chemical crops. yields in product our full acts XX biological synergistically above This the acre quarter, This is health by up corn. fungicides bushels Pacesetter we year our the seven soybean in alone, health increased

We're with in our also imminent first sales our Mexico excited Canada. biofungicide, California, and with and about and sales Stargus expansion lettuce geographical strawberries in into

and agricultural disinfectant Jet-Oxide human the industrial recently sanitize approved hard EPA, surfaces. industrial to U.S. our food XX% use was for against Additionally, coronaviruses by product

Not and an this timely, but Jet-Ag presents Jet-Oxide exciting new for application products only suite. is our

foodborne increased for both a surface salmonella. direct along As we've in nice boost sales for and awareness, and crop seen with e-coli sanitation pathogens, including hard

generation U.S., On liquid for our applications. for the trials our well of seed seed partners the and your Europe America. treatment new continue as Grandevo expand field next trial formulation Latin to follow in treatment front, as seed we insecticide/nematicide, Particularly, treatment with a and

slowing second not Pro we're Even field for From into the possible, development, we our with submitting caused pandemic, by a including the COVID-XX after biofungicide and Farm progress, largest Brazil. our registration recently to Europe, products evaluation the have disruption continued market products. Stargus the fungicide in world, perspective, efforts where our make regulatory

We in also and received indoor we cannabis submitted an note, of the Also outdoor on Regalia Stargus expanded for to and Maxx Canada both and California and propolis disease labels. hemp. approval Canada

The these product for Canada. for uses approval any first in

Pro We the integration expand with are pleased with cross-sell geographically. and to the the progress and opportunities we made have Farm

other's Pro to create leveraging continue of combinations. both where product new synergies to each testing exciting and our expand Marrone relationships existing field Farm, We partner benefit and Bio from find products,

and both Pro agrichemical For North R&D in integrated customers. an with Farm Bio major Europe, Marrone example, and seed America and company program, we field and and South have testing

to Our end, leading Chilean market Anasac international export we recently agricultural rapidly States where with and market. of in the expand, opportunities United agreement significant continue diversification signed Chile, inputs wine with To more market. provider the is a use the nut growing a and this driven biologicals fruit, growth than share commercial

Maxx and South Regalia devastating we signed Venerate currently Grandevo mite grapes. for pests, and registered is citrus. such UPL in trials, have Botrytis agreement shown in field Bud of an Also, with performance Africa, Rot against strong as where

up too effect the industry. production I'd and chain. full it meet to on both X, is Marrone are changing update an to to retail still Bio demand. critical a food like Slide ramping the the entering Farmers know early ag It turning and affects COVID-XX on and provide input period production Now, supply how

time more they some retail having from nimbly while packaging, in example, the the are quarter, changing harder supply first adapting significantly switch more as rigid chains to with service others can segments For supermarket to are a food up demand.

conventional to up are produce organic XX% expected canned And the example, demand. compared due as supermarket to was food to original in easily decline unaffected. first to lower expectation. as are Almonds potato greens versus the California acres XX%, the the XX% original meet up quarter, leafy XXXX generally service decline demand. fruit Processing For to in are but forecast, XX% cannot expected additional to pivot

by challenges labor be to Farmer remained of continues as steady COVID-XX and very access difficult, access has prebuilt to the and new Farm ensuring safety distributors the our to anticipate our industry meeting employees. ag we health have is year retain challenges steps implementing and our precautions. We exacerbated throughout inventories. our to inputs have of and workforce, asset needs most customers important safely taken and are the

conferencing been and sales combination and product Sales it that with such, around growers. distribution assisting active a of via staff and have them webinars. in with is made Distribution increasingly with calls staff video communication usually rules our electronic COVID-XX working distribution development phone, have and

Marrone and social to support practices creatively during difficult management as doing is as times. can these we can followed. as activities In-person made much allow, strictly when distancing visits are be as will rules possible Bio the these only

loan operating approximately to budget you as by reduction a our our senior We a management have XXXX including salaries. our further In reduction XX%, to XXXX addition reduced runway. work in from our PPP XX% Jim, voluntary extend implemented spending heard and restructuring, in we

getting Our year. are two cash on freeze this top put not management a And increases salary year. we've this also levels bonuses

times, toxicology Majestene path through will smaller reduced as on XXX and these addition, and ag prioritizing fight becoming With these permit. budgets. In resources this our are budget, we leading efforts we our supplier. input uncertain the biologicals toxicology us trial to believe field bioherbicide We help testing first, Super

a we idea view the market sheet an forward. as balance of growth X, Slide our and we of want revenue to uncertainty result Turning provide the in recent going strengthening, investors how to

industries. XX%, biologicals you annual revenue approximately the successfully and we've outpacing of both As growth chemical compounded at know since a rate grown XXXX, far every

revenue growth to accelerate we are from further forward, COVID-XX. In XX%. borrowing complications strategic expecting And growth to accelerated XXXX, steps we due a revenue going taken, the have to

In summary, trajectory. progress and we company’s are excited the about

company employees While privileged profitability. in are the at one to is been, the position step continue the COVID-XX to matter what has with I no more presented to such challenges strongest am uncertainties, to facing quarter, helm has excellent the dedicated ever challenges who and be momentum it up and them.

begin our call session. With over to operator the to that, Operator? like the I'd turn Q&A to

Please Laurence now go from [Operator take Instructions]. question We'll our first ahead. Alexander at Jefferies.

to you Good in ago? years with dealing afternoon. few debt ag your feel bad give and downturn you're a how for has how management Could position changed the this environment a compared

And you staff secondly, you be you applications? to anti-coronavirus What will channel? extra to can the difference supply need that to selling would Or for need in attract the hire the for channel? do the how manage characterize, chain

Okay.

to debt, The first Jim, want take one bad do that the you on one?

in never little we've forward, And a time, the even new it hard… had this even pay second Laurence, debt. going anticipate bad that never on environment. Yes. question will had bill a was We've I a And anybody wouldn't I believe. change not COVID

large companies. are We're large who dealing distributors typically with

reliable second so And one And they're the so. about… was suppliers

second supply the the I believe. was And question chain, regarding

product. there distribution Of one? new a the new to -- change Have we strategy for our COVID-XX, is that had coronavirus

Exactly.

you Kevin, to take that? want

No. going as sales products. well. sales Yes. comment, Traditionally, strong Overall, quarter is are third Jet-Ag second, just and the these for a Jet-Oxide

through going set our market, that Jet-Oxide, who up are what a traditional distribution. specific an we of service we the distribution, market done to typically is have outside traditional we Also, industrial alternative For distribution. some

it's important the And Jet-Ag reinforce of sales, brand great thing to some way going both Jet-Oxide. is about opportunistic be image strong than to and that, that the other just

years your build you difference up -- yield could more Are row And the curve? then seeing value the – crop respect data how for the or showing in gain? in application, pricing did with of you to or you adoption

that. get can you Kevin,

Yes.

you’re So I assume. Pacesetter a talking about product,

just little just on it, before recently So Pacesetter we background a registrations. into state of bit get our got we

row first crops our received last corn Pacesetter soybeans into and sale we So week. like

we'll demonstrations. channel field year internal and as a this performance the for this XXXX, great we our see XXXX ramp of up build as So with from year on growers

we're product we Pro do XXXX, Pacesetter. The thing field with a expect going really to good other And is to test UBP results. Farm's we're going some in

a XXXX expecting build continue on XXXX, a the to and greatest -- were success in going great in we to on we with we had So year XXXX, and growers as we're in acres more go forward. broader

out see factors And getting swing lastly bridge that you some can the the sketch then breakeven, EBITDA just with you respect there? for to biggest to to

Well, this expenses. over I control got tight sales we've operating is Jim. margins growth improvement, our pretty Obviously, think and

needs. of prepared that cash pass place But as good that The pretty answer in warrant our how remarks handle say we've you did other credit timing the to capital Did with to is, of of in some and tranches those. during course, tranches we that the working We Laurence? insight our the give lines variable breakeven. got our to view

Thanks. Perfect. Yes.

We'll now next ahead. H.C. Wainwright. from Sameer take at go Please Joshi question our

my Thanks, question. Thanks for taking Pam.

The a any experiencing growth, on XXXX higher XXXX of At costs doing light the margins also first revenue to your in same pressure are in supply growth XXXX. this factors? because reason compared COVID-XX Is relates or expecting you the the to gross that you're other time, the question from you're also to it you're or even crisis. side XXXX rate reducing

cautious. and We our as but expenses This own people, it's again. the is said, No, not and cutting to that cutting -- just most our Jim raises be did cutting not actually bonuses, cutting our increases. them cutting at We're all. of we salaries,

was wouldn't know how growth our But a that And pipeline out. off. terms as we this close new products. launch little it registration cautious kind bit, can of us going things in It’s turn to none materially. of that fees, some is just I we but slows say of And expensing push thought of

through With and up. seen respect along chain transportation to lines, we truckers margins, disruption supply things mainly getting lined have some ports

supplier not third Germany did in party Our shut down.

get we Although, they sort concerned that some of might outbreak. were

Our and for year's worth of knotweed down But is now supplier inventory up a is again tariffs. but China, that did shipping. open we had the in did backed shut we

So us. the shape in hit when good we pretty COVID-XX were

we're So good shape. in think I

opportunity those our over anticipate improvements. in expect range XX% efficiencies to would the longer-term through But over formulation I manufacturing keep of improve. got continue improving think, we've them I I to the margins, to lots XX% while shorter-term. to and the product level margins

this Pro of growth At increase this level time, driven that acquisition? how much OpEx because then And being growth, same of is Okay. the by is the Farm what the acquisition?

This is OpEx the Farm. Jim. let about take sales last I'll I'll Pro of Kevin, actually the opportunity increase. part about first with And the that talk you then, or the

So first I operating on the operating stable. think have our expense been rather expenses side,

pull that expenses acquisition those financing out the associated you charges, managed related charges tightly. find I our we've think If and all and you'll with non-cash operating very

about per the this Pro really First, the year. think, probably at of Farm. sort our with announced for fourth are then starting million prepared XXXX, of Farm's And And what in quarter in quarter starting balance the were the we one through they'll to of $X expenses pre-fourth we they $X quarter the quarter of XXXX, be I expenses, acquisition indicative level. first of a that million increased their full quarter them Pro remarks

three revenue. about our you crops, XXXX the acres like third In business crops lettuce. expand Jim, to Mainly Stargus Kevin is the like the quarter, the continue be with we build in products have speak to will the fourth And specialty driver. revenue Mexico. second, into me here. and want to strategy, BioUnite and a quarter the almonds, permitted this on key and drivers. second acres and like successful Hammill expect the quarter, going third for into like stability downside geographically perishable California, somewhat We're but And we

see recent plays. warm The weather some expect California, insects in to we increased

major going driver. about this second You to be mentioned revenue farm, Pro is our

season. Pro Although, in fall to a accelerating see farm in of planting contributions but first second line, sales had nearly anticipation minimum in quarter quarter, the the the we revenue the

farm. But first in it that because the we third of and have expect their also seasonality seen quarter good fourth quarter sales. not actually from We of Pro quarter

and which when should last revenue U.S. up seed in start some seed the big again the treatment shape treatment in of quarter. decrease good will significant the rebound We acre us we start the And be driver us harvest, the in because acres. challenges overcome corn applications XXXX. be projected our business, we'll from This after for soybean help third of will in the XXXX

-- that in point of that as business. growth international drivers not Fourth our bullet are will is continued big

And through anything catalyst now color, Thanks it. some just year, looking approvals of on are end Kevin. Understood. then a we the key any should or Got the that of for or the high-level what be for? that

if repeat somebody could didn't I quite that, it. catch

Could you that? Yes. repeat

Yes.

events, Just we be key for catalysts looking or maybe. key that should

key catalyst. Oh,

Okay. the for rest the Key of catalyst year.

answer our question, Kevin Kevin, seed see? that fourth alluded catalysts then for quarter. second the think in and in to the just to Pro I quarter, previous revenue and the you any some his will in U.S. Farm seed third other kick-in treatment treatment

Just a market. BioUnite had our And we're we've continued our just the in and new business, with strategy biological excited products also we're into getting there. registration success international expansion and specialty solo great growth

Pro seed our seed treatment, then Form efforts, U.S. the effort and terms the of So and international in specialty U.S. a expansion. treatment, team it's combined in business

take great. questions the my Thanks. of offline. I’ll Okay, rest

Do we more Hello? happened? have What questions?

hear the you is This can me? operator,

Yes.

Okay.

Now I you. hear can

Are Okay. there any questions? more

of next Please We'll Aegis Weinstein go Yes. Capital. take our now ahead, Mr. question.

for and Hi, Pam Jim, my question. thanks taking

to we're the recognition As you as witnessing and identify investing, risk tool can whose stocks outperform in used be companies a in including criteria know, help a ESG an ESG future. evolution could management that

landscape? And Marrone fits ESG that could perspective the you how your perhaps into on So landscape? share Bio evolving

our XX%, the load of warm the chemical products our a would to that we to metrics question, up by year, to. answer kicked And of can investors see XX% of comparatively. related relative in carbon ESG actually Last we kind attended carbon to question. conferences products, And what gear I into And and reduce ag. footprint pesticides. that number Great to study did of a

that of So very powerful first one metrics. was the

Our with investors looking ESG are in own products are themselves tune something that right for.

company in is of But doing. something And ESG to do that we're with geared towards everything ESG suffice in granular to get and would on even full Group, we're audit be what the of looking a we say, help is the company more an also what investor MZ the throes for.

Thank very helpful. you. That's

And add. Jim, to I'd this is like

his I is think a are investor we've fund, they told receiving sort everybody to some Marrone products been because all their they to is, investors to. of want their to one the we Marrone, with in while investors about theme culture talked claims as live that his have standard And it, that really of ESG, me, when Marrone talk he about is it. is about it, talks

from investors. in And a so company of our ESG there's lot interest

Thanks it. Got those thoughts. sharing for appreciated. Much

great you. question. a Thank That's

take now our Zacks Gilson at ahead. next from Investment We'll question Ian go Research. Please

quarterly it And, – below prior revenue What look the of Good in mean, down afternoon, cost corresponding fact, but it prior I inventory, if level, or bare quarter at sheet, quarters well the bone. you questions. financial a in happened ladies on couple years looking to was well of inventories slightly a and the Jim, multiple percentage the in years gentlemen. fourth balance at there? I no, of periods. is have below,

sales represents couple of in first-half a very asked. inflow you remarks, that we did face supply but COVID-XX, but product, things. of and year, actually One, to in the does of tariff my management also. were this again, down we also worth. Jim increased worth as It I keeping potential of the quite that extract with prepared a year's that about we’re about actually, I'm talk inventory glad is situation. it chain pleased months' knotweed with of didn't I'm expecting run the actually the in inventories And about of a This that tight the in that result stopping those of reflect four Yes.

then. supplier open. received our China it now shipments the in back we’ve on But new several and since And port operations, in is is

grow business. those are I'm actually think And I of alarm. don't of So, I anything to rather I as not of of do about. think as we and sort any our think cause that levels them represent concerned apply economies have we can for scale what they good management, And

the Could That's increase the Okay. big you again, good. line? in SG&A through dollar go

Pro well, Let's those see. prepared non-cash operating the -- there with first there Then of Pro the was that expenses my And I amortization charges an SG&A, a Farm. lot then increase our Pro of intangible $X.X I alluded that of is associated associated million in remarks. the in Bio $XXX,XXX because operations. with expense the it's compensation Farm. standalone flat acquisition little an associated also $XXX,XXX charges stock you acquisition in with very partially, Marrone And of was believe was all $XXX,XXX out or of there of with Farm. normal if associated to take that terms cash

this does When basically Okay. end?

$XXX,XXX It's though, can will build as time. for quite a its stable and go of your models into going amount, that non-cash intangible that some you amortization on I mentioned. Well, forward,

and $XX up I the said it’ll I expense here versus acquisition compensation a Farm stock But think believe took from quarter-to-quarter. vary of other step are you The activities. $XX Pro and last seeing expected And to be in I of a non-cash. expenses the now And as million the that to call, range. operating earnings in our increase substantial million amount is

Thank you fine. much. Okay, very

you. Thank

the back go Please for or We like no conference to remarks. any have would further to management ahead. I currently turn closing additional questions.

you Thank quarter participating call. first our for XXXX in

a drive power biology with people opportunities, performance to chemistry. harnesses company, sustainable the the our which expansion strong as the right underscores BioUnite to We’ve and built way of growth we a the the the with approach, right the value growth of right Our products, lead world. of science and

continued of I am dedication proud our of the employees.

to and suffering impacted hearts Stay safe global everyone out everyone. Our this pandemic. through go

Thank for This participation. concludes today’s call. your you

now disconnect. may You