Benson Hill (BHIL) 13 Mar 232022 Q4 Earnings call transcript

Good morning. Thank you for attending Benson Hill’s Fourth Quarter and Full-Year 2022 Earnings Call. My name is Harry, and I'll be your moderator. All lines are on mute for the presentation portion of the call, with an opportunity for questions-and-answers at the end. [Operator Instructions]

to Senior conference Benson Director, like host, to Hill. now Mella, Ruben Investor I'd pass over the your And Relations, with Ruben, ahead. please go

us Crisp, quarter filled our and an review our this documents, Financial presentation and earnings Hill Dean year. Harry. and good Freeman, of today We Chief morning, for you Officer. Thanks, Chief during These are Executive as Earlier the me Form Matt are the reference and morning. as will our outlook our Hill's we full-year well and joining fourth remarks, available With financial Benson results appreciate to investor this we X-K. Benson prepared investors release the website. on Officer; section

forward-looking future strategy. expectations Benson plans outlook, and contain statements, and XXXX performance, guidance industry targets, as Comments including financial our well business results, we today of as current annual our goals as for management Hill's and financial from XXXX will execute

be available investor GAAP presentation. certain included other to our we’ll subject earnings Form will non-GAAP during filings Also, cautionary and could cause Forward-looking caution materially these referenced reconciliation presentation, Such that factors in are XX-K, our financial A factors of forward-looking is assumptions, with risk release the you results the to discussing include risks, our be release press to We in and guarantees presentation, not inherently in this from actual and differ performance. statements note statements. that are measures. consider and and included in on to the and those SEC. those uncertainties

over call now turn I to Matt. the will

customers aquaculture progress Benson our partner by the We capabilities team our choices. way. demonstrated playbook efficacy everyone. we CropOS and the our to year markets, Thank expand you, XXXX a in Hill. what be driven for our was technical leverage better I through accomplished and remarkable Ruben, in with food demand have a to food for growth with novel to human of of impressed continue reach they morning, as good consumer and

insights greatest continue operational for the warrant gain profitability, to to the We product into optimize opportunities mix while maintaining excellence. ingredient which focus

As I among growth. important look three that to milestones future several want for XXXX, highlight position us on back I

model as demand, proprietary First, segment led XXX% we our nearly partners operational processing soy outlook further ingredient demand our And proprietary credit soybean-derived result of we to executed all to raised portfolio, time last closed-loop elevated within to pricing involved. business original our year. teams from million. is commodity which to excellence, to XX this the twice year-over-year from for and $XX a this we guidance which our integrated a farmer an ingredient months, products revenue customers, facilities soy gave the growth environment, our a for This

capabilities that ultra-high introduced ingredients and we sourced, significant a differentiating important soy and leader having we commercial result, of higher we our as our licensing accessibility, market Second, go-to-market value including previously technology a densities. validating relationships, established domestically with propositions being protein traceability, partnership And ADM, discussed. nutrient have with sustainability,

unveiled leadership our in increasing to platform solutions for to and technology delivering pipeline Third, product a we Investor meet to food our CropOS how XXXX, Day better we at demonstrate extend our options. robust innovative expect product demand

March the in We upcoming XXth. at advancements about pipeline on recent will talk our Investor Day

meat. trends and are million meat bakery, As proprietary such million, we tailwinds to and across mix increase with believe extension, growth, as soy closed-loop of away be cereal, XX% from another we expect We to our flake, our flour, $XXX to shift to a a range strong XXXX of year on will the $XXX as February proprietary segments XX% plant-based non-proprietary revenues, we commodity continue model. soy products alternative secular announced texturized in market for consumer-driven in Xnd,

We are and as ultra-high the service such one access us aquaculture pleased meal. largest scale of to gives low our oligosaccharide with customers for which in BioMar, protein Europe and Denofa, aqua partnership with feed suppliers

are strategic we which year also sold discussions after for for our advancements capacity recently with original shipments first soy with we plan many already oil new ADM, ingredient advantages, oil demand. low- in now beyond product, acres and our for brand unlocking meet initiating we fully with categories portion out are introduction planted last milestones with in crop We XXXX engaged anticipate Illinois food sold next at will ingredient year. nearly product production through while We Decatur, to existing August soy of the from protein our XXXX, exciting about entered partnership what cooking this Veri out create We non-GMO high-oleic, ADM’s of season We're is ultra-high our novel XXXX, products. be of our linoleic, after of to our innovation increased last the facility. achieved

farmer premiums potential has our discussions at us to for achieve our acreage pattern success, we partners. delayed range prices with base. third many, across When call, on ambitiously a strategy were launch commodity with proprietary upcoming farmer product farmers, on portfolio Benson of decisions powered by XXXX our remain meal soy see elevated our especially expected pattern in a oil that to season broad products. you secure among began customer we collaborating spoke ADM’s currently categories to we significantly demonstrate are required emerge, co-branding all of examples That and At current teams as commercial levels, Our to for and quarter and These future to which commitments. continued established new of new to by the targets. a ingredients a pursuing the time, the growing broad of to Hill, increase demand side

product and chain supply pressures inflationary has challenges, increased addition, In significantly cost.

which highest would've in profitability have desired to and with targets cannot, put margin some XXXX. other the plans cost product our but margin margins risk can products take lower at our at margin and Our that compression, categories increased reach we

to that to commitments I at oil margins the last mentioned our Benson a and are farmer the goals highest flour, we our while categories. partners committed expanding food soy the Investor continued growing and season support Day, to meets you responsible pursue customers, by de-emphasizing, Hill in protein acreage As To way and margin specific employ margin to appropriately made to to we not product The and profit we a in that on did certain strategy, are customers, product growth and needs categories the planned, focused products. capital. soy for meet market, With working XXXX, planting of our highest-margin gross expansion more for exposed targeted mind, but we managing expand the eliminating, our our in oil our meal our flake, products now that XXXX as more not margin ultra-high compression. for aquaculture ingredients, will decision

yields In with planting addition, offering new we zones. expanded are farmers higher and varieties this maturity several year, proprietary

years, performing two Over well farmers expect allow additional next next-generation pipeline varieties seed us customers only three to value, not but the to we increasingly introduce gives that XXXX. beyond products optimize our costs that better to more offer unit

Similarly, instead operational farmers given planted opportunity proprietary revenue acres We new focused to crop acres, expect the approximately to more collaboration growth of focused the connect processed be and few the for XXXX, view, grow harvest by to joining including with margin These with of the new farmers committed new that long-range will conservative our certain XXXX. achieving at EBITDA completed our The will We the in acres. with the will secured beyond revenue budget season free Decatur approach, a we the planned Illinois, begin annual planning consumer. partnerships commodity flow for our directly with pressures what plan based for and us de-emphasis lower more cash to a facility. and network expanding recognition ADM’s products ADM, original current target prices they we the positive strategy. environment. ADM this time tempered double and with in of XX% on for of giving partnership, more we increase at the ADM network our process positive plan, would defer are timing securing total more previously the cost adjusted XXXX quite contribution expect believe planted remain original our normalize. is which the to We Given

and reasons, Fresh business. remain we to with address to targeted projecting are the optimize We now XXXX our over of to million, revenues of Dean be achieving to Total plans million. this For $XXX margins proprietary other excludes targeted will gross are these least XX% projected closed-loop that more market, model revenues the shortly. which committed be approach the $XXX sale to at from revenues

in shifting conditions. we've I demonstrated will macroeconomic of and conclude the face the adapt market by that to saying ability

starting to we better of ingredient have that we the to talent last in with the from innovations who a our beginning momentum start year. a our strong Our offer the expect Benson foundation the be off We're we creates indicative results is first and quarter customers, XXXX, at experienced value-added Hill, seed.

for orders We're XXth. are pipeline our growing season, and with repeat product final St. on March Louis our partners putting future our here We of touches from to and the farmer base, in the Investor upcoming work to innovations. customer eager new fulfill expanding continue our Day advance for

leave only of Hill of Our to with and mission the you are Benson Day, an our clear want immersive build of the learned experience food. not but of is food. a year, living also you set we wins, last Investor the theme innovation offer future what on objective to to in around representation which understanding a is We our why for how deeper pace

balance turn our quarter for Dean I'll performance, sheet the and call for and strengthen as XXXX outlook now further perspective as to and to capital. the our full-year reduce about plans over to fourth cost his our well

Thanks, and good everybody. morning, Matt,

years. employees. Valley have accounts of partners, sweep a accounts Bank, we've investment Let Hill. our that took actions the $X million with held are impact little funds million to and in in Silicon the does Bank, couple about relationship with on for about minimize of funds by in Silicon of Bank. a Silicon Hill me events approximately that relationship Valley currently farmer third start quick a We where Benson $X have had just over with custodial Benson last behalf customers, on our parties vendors, week's We our many Valley our comments and with

p.m., received. of today. for that to X:XX wait communicating really that issued and was access at as update as further early the deposit of night, about a their As only have that, instructions all have funds morning, we release on press holders this FDIC will We'll last as the

wait has meet to ability not all funds, I that this while on instructions obligations. not reinforce we will our on had, of further situation to our to impact want So, access have, our any financial

which $XX business, It how gains that year. the list performed closed-loop discontinued Fresh to receive results, with As I financial led to long quarter well about business remaining several that track also the months on of half complete commercial activities of our keep needed this model production We're the up only said performance the now to million operations the teams million year, reported would sale from assets, repeating in second records mind the realize business stand the is of what worth in as review Matt $X It's the and the the too take transaction. in excludes but newly not our the the efficiency in operation. and integrated second XXXX. to significant

growth prices teams to us advantage execution ahead commodity XXXX high strong that expectations. in allowed was our from The topline to our deliver well non-proprietary take of of

More to continue soy XXXX the well plant transition positioned proprietary produce to in more we’re importantly, products.

growth revenue earlier. Matt As million a our includes is that $XXX our which million, result, guidance for $XXX expectations mentioned revenue proprietary to consolidated

before, said logistics. not related challenges by I've chain dislocations, increasing and inflation to we're As immune primarily posed supply the to

of Our water in as finished of unprecedented the to ongoing installed Mississippi availability finding River. of traffic such teams threat ways strike, national rail factors, move levels due rail in record cars, to kept face goods the low barge the

by sales Other costs $X higher acquisition. profit a $X incurred which production $X finally, approximately our more of These deliveries million. resulted we higher million, recognition were the step-up worth delivery of fourth gross were which million primary factor differences another $X shortages. cost of costs in of were the cost which items below factors our loss than non-cash proprietary of and operating unusual labor to Creston costs approximate in These the already bean an in Additionally, to address we seed December, took And guidance. our about approximately $X.X for full-year quarter a profit impacted affecting previous charge assets timing mark-to-market expected, related gross for million due million. coming larger-than-planned of had to excludes

proprietary more $XX This contributions look than will of of expect partnership, contribution the gross million we the by from an from to side in the be to the ingredients to expected profit $XX to double driven As profit range year-over-year in ADM plan revenues, XXXX, the business. we million. increase increase and non-proprietary

Our persistent objectives. remain the guidance still cost discipline, inflationary of also considers environment. the laser-focused impact We on supporting our strategic while

XXXX non-cash for million of you guidance. to operating adjust to which in of operating in $XXX million, million within range XXXX, $XX $X business and for $XXX our When expenses approximately were compensation. expect Operating the million which stock million, $XXX expenses the expenses approximately for Fresh we be in depreciation was includes

increase guidance an a when in as discipline, adjusted month. in we in the of last profit EBITDA, of loss we mark-to-market $XX range we in realized $XX expect and million, EBITDA management within differences. cost the a XXXX adjusted continued loss gross timing which $XX million to With Turning excluding million announced our XXXX, to reduction was

million to approximately high the As expenditures capabilities marketable Fresh capital produce of product including production with lower flour the $XX us tolling. project original securities. to texturization Creston December applications million add $X which our third-party soy had at from in in Consistent significantly the a million of to XX, cash, texturized facility, cost of million compared plans, multiple million began for business. range, anticipated ROI led we a CapEx allow capital This available we two-year our will at and cash, $XXX to investment to $XX end $XX top XXXX restricted

forecast $XX capital the XXXX, we range million in For expenditures be to of $XX to million.

to $XXX optimize planned million. we will third Hill’s To facility is in by would term approximately expense strategy, year, We of of with the facility that and as a the banks as lending for We line in by syndicated plan costs the conventional the go-to-market advanced from The that borrowing Benson end, structure. loan. loan, this structure remain of enable to to generation the as pursuing finalizing capital interest quarter our opportunistic the a early stages are these potential. and lenders credit, interest validation equipment ingredient conventional of innovations, The expected of cash XX%. consist reduce view up

of additional ATM will be new by facility, $XXX alternative current clear, With loan facility, our statement, we which the from provided capital the the raise sourced expectations registration up funds the will proceeds or the expected of to proceeds through shelf supplemented equity anticipate be form an in million ATM. that financing. raise under equity be any including of And to lieu

Our planned. debt years plan than is high-cost earlier existing off to two facility pay

margin project, the guarantee refinancing, and cost flexibility that free in anticipate our and facility, million strategy, While with that significant anything flow to strong contributors our flow enhancement, total costs. portfolio and our and capital, expected to greater maintaining confidence discipline. $XXX along, XXXX. give new the position million we is This range keep loss in XXXX, in for cost XXXX greater foundation to efficiencies, to include it enough which momentum been the proprietary strategic deliver cash the one-time we've cash I far is scale continued lower negotiations cannot will We'll what are for of we other central us doing, cost cash $XX the to are between free the completion our to in objectives. continue the free expected lending regarding successfully reductions have flow we prepayments doing million. million, will $XXX in meet operating and and successful finalize capital The to and the the significant The $XX just and plan outlined our burn positive lead to will us to to

now team for record-breaking the expect the to, intensity. continue this Seymour, element facility believe place exploring our is We Indiana, are portfolio, current terrific to realities, necessary by limited is closed-loop Therefore, actions the source actions into structure asset. partnership manufacturing profitable in include, of of which to path with to capital closed-loop of and the expectations plan today operations the capital the in peak highest years year a the commodity on ability higher logistics Creston optimistic now reduced at future. our pieces optimize sale we're product capital capital footprint. further to successfully the reassess partner our the the and may to by in focusing alternatives The our we of through XXXX, remain challenges. for address in navigate The capacity and on of saying, gives pressures, our our margin the consistent working Another in to doing to, and but for we the job and our return taking operating Iowa we ADM, with the our strategic our opportunity access ongoing to about follow. and growth targeted our our deployment taking us capital arrangements, outlook proprietary to is tolling levels. objectives The market through we're and now opportunities, have capacity Seymour the and at production I'll conclude to intensity inflationary financial the we facility, scaling cycle, strategy are improve achieving our are

I'll questions. we'll that, my conclude your with and prepared remarks, take And

go [Operator is from of Thank first line question our Ben, Instructions] Theurer Barclays. day Ben the ahead please you. the And of of now.

Two the Dean. Yes, Congrats results. Matt, questions. good morning, on

signed with just a obviously, good for proprietary a you one, but them the on couple first side, have mentioned farmers you and outlook challenges growth up. So, very getting of also

with growth think given sign after up, actually how the the would see roughly kind the on bit a should we years it year, made, get side to understand question. be on proprietary XX%, what and farmers the still managed help for comments so you're farmers here. of on right how sense into So, can That next we maybe my just a you you agreeing on XX% little first us signup call to

closed-loop for Sure. Hey, of acres fair commodity growers things beans. those decline in non-GMO we're planted got has premiums Ben, driven seeing this of higher that's up the our high year. maintain us and for profitability really UHP of demand environment. your preserved as year margin the the the some When pricing products, levels, A But we've to okay parts seeing this Obviously, our profitability few things to is, the United it’s the and human Matt. amount oil States. as meal grow of compromises for it happening highest as does food for of The the dynamics portfolio. feed for mentioned, it identity at other to We're category. category, And I market combination namely, well non-GMO we are look a in signing a aquaculture what of products certain of production.

of I'd conscious we a that that that very have varieties acres when was we compromising margin to farmers, these made planned. the way those the increases demands made gross feel going what some confident profitability to to our in products so, up felt conscious profile produce say decision that need a sign is, the the with we this cases where to the And to order meet pay we expansion levels in it premium them But the to we output. like be with not we've decision some came

we're it's level. obligations, a contractual that to mix are, up So, our in from where marrying to out variety what our thing demand words, seed of needs nor don't confidence other looking needed any think acres, we that be I side would've but In what in at of a but to state our do, how XXXX, two sales been ultimately into the contracts. were break now, responsible we're have and able meet farmer high to more could there's signed a years all we always we would the backing position that substantially optimizing

Can at and then cash Okay, help XXX. but the perfect. say marketable it I us balance understand, only for if cash XXX, million, $XX-ish you And and at that's up because Dean. then I sheet, equivalents you guess, look question, securities was more like my second at shows

just that tranche year. So, divestiture, as the And the it is reflected of cash just that in closing the second the roundabout difference, or the is, you. of first of yet the balance, business for you received cash first because flows proceeds Thank was, not is question. Fresh the reflected the was the balance, that in how it

as Yes, securities, and restricted cash, should so total point our cash is hand. XXX And balance include cash out, cash. the you cash and restricted marketable on

end XXX. So, the be for should of that December,

proceeds from And it or not yet? Fresh the the Okay. sale does include

Yes. does. it Yes,

you. Thank Okay.

Thank you.

now. Our Kristen, of Oppenheimer. next question Owen is from go Kristen the line of please ahead

open. line is Your

the if you. selling morning, of just everyone. What specifically? facility start for by through the And that was Thank on and decision trade-offs are are outside Great. Good facility. just walking opportunities you're outright takes puts the it? considering could us Seymour I I'll that there there. you start maybe some around wondering the

really being liquidity to working profile the Kristen, some opportunity mix Matt. a demands need intensity, capital And working us of with was for revenue optimized, evaluated and for Hi, the critical and relative Seymour, maintain the see our business additional partners our meet it's what feel tempered is that we the we we intensity we the growth that slightly to an demand capital feel growth. to the Sure. proprietary what we proprietary the this still of have. that are with product revenue some meet that for to is relationships farmer less And create

future. and tolling have adequate ingredient for So, grade the foreseeable meet the backbone expansion into we third-party we to food that of combined of Illinois ADM the us needs relationships, the as our at production of relationship, the footprint Creston, our the with crushing additional in with augmentation felt

profitable we for was consider strategic that to that And felt shareholders in asset. so, and alternatives an again, growth in opportune XXXX, commitment this time the of maintain interest other to ensuring be we our to focusing profile our

couple first Yes. add maybe consideration a of customer comments meet our made. stop. and to that capacity me Kristen, let is reinforce In the sort as the the just first Matt requirements

As as facility, we capacity as adequate the sort as Matt options have with of we portfolio ingredients, our both we non-proprietary Decatur it's ADM. assess mentioned, in to the the partnership well meet with that regard of facility, have clear Creston to with the rationalize terms and the the and demand,

The other between I of support about of where capital as higher the we you and the decision. part felt trade-off is it intensity. continue working lower that mean, margins, think point volumes, trade-offs that, a to kind with we that the to could became capital optimize usage this

And of so, optimize demands consider options. customers to capital meeting structure levels higher these but it of think the to allocation-disciplined, as we profitability, also with the being made about capital our continuing sense

helpful. you that, Matt, and really Thank that's No, for Dean.

margin increase and a looks as the help XXXX as trend revenue, in of discussed. historically expectations, percentage like can to what in of follow revenue thinking about us the the on numbers, shift you some your today, we XXXX the line, that -up if some we've talked updated bridge the proprietary updated given what but you. wondering about you've get the Thank of Just seeing you marketplace mix I'm you're how

some greater product expectation the of more and $XXX revenue the to from million strategy, margin Well, expectation targeted published of for oil revenues proprietary this or categories. reflective million Certainly. flour, of of and previously lower proprietary having reduced flake, reduction revised a $XXX the of ingredients

still in arrived obviously we've and and that, significant that's meet our amount focus, a goal, yes, but product feel to just growth curve profitability a modeling that pipeline a that bottoms-up manner of mix demand numbers, and meets a will where the a of, in and expectations, in us we've it's very from. we execution take to that order done carefully goal But mind, proprietary that an signals provides targets. given It of my terrific coming that's lot it's a such side contract reviewed. a achievable lot at XXXX the and we've these continued looked requires revenue it guidance for those So,

just add Yes, let me to that.

dynamics we're coming from the improvement we're largely strong of from seeing, the and ingredients proprietary actually margin and Matt of in anticipating much pricing growth if we will as materials, a most of both side, coming bridge this the introductions Day, of what I other Day. to the would still of at talked more the sort years. some largely, a have and we point about commentary more Other, sort of proprietary but But cost we our in of that that, XX% broader have growth-related. about about portfolio Investor presentation to was expansion, and so four-stack talked when lot About Investor Investor mentioned. very expansion our be expansion commercially-related, intact. expect about say Day that last Kristen, focal is we have over Aqua margin next So, think is key a you sort talk XX% we'll the couple given to operational. that

you much. Thank so Great.

Thank you.

question of if next of you'd now open, like line Our Ross is line is UBS. Cody the Cody, from proceed. your to

else? revenue you million for in lower we you fees for $XX initial the end to that to range, just towards or it it million go come is proprietary taking Thank Thank Good the farmers, questions. for morning. back XXXX guidance of something caused to discussed the higher in your about you. range? $XX Is the what what our If you

say lower XXXX, came timing. range, of part in end that we For I'd in due to the

starting that steep into the of period. to as when funnel might of the recall, was we to done the months advance a And pretty expect, work climb been of sales you had customers late a year. half the the lot a did back moved a we year, that through prior So, calendar manifestation of

say reflection just pipeline. timing. to due of not I'd really quality that that's any So, lower in of the It's part, a

robust. fact, In it’s quite

how and So, quarter. mentioned, on commitment-related. that due the pipeline those to Dean don't I in had recognition revenue the challenges more well, really as was maturing. proprietary we chain supply think There customer material as and materializing delays, some saw It's timing-related impact that I is a fourth is more just this arguably but think

the least, sort meeting growth year-over-year we're to XX% and And aggressive, aggressive was of that a say target. curve Cody

the a to Matt in having so, growth And profile, feel due market mentioned, play still very both XXXX, the obviously of extent the of timing as and curve sort just will we to forward. that and little in flatten how move bit, as we with out understanding we the better pleased XXXX of sort a

correctly follow-up you you more would related reduced how for this be you my your Did question, you. I credit the expense renegotiate facility? if say - say million? And you Thank did that. Dean, to hear is Did XX much interest

I said XX%.

XX%.

I said might million. have

I no, Yes, just really. was no, confused,

Okay. XX%. It’s

Got you.

said, And can your Okay. interest on under reduced? that interest X%. rate with you. just elaborate rate you you current be confidence Thank think is I the that is giving just your would what then

No, prime I interest prime is I X% X.XX. or - rate my current think plus mean, plus

at XX%. So, rate that XX%, interest about puts my current

demonstrate a of credit And seeing cash the significant is, sheet a conventional from cash a a at It's now right so, the haircut. We're flow sheet. we're I to lender. day, end able term term confidence a resonated think And have got signed capability and the we that a a perspective. profile, I generation we've

the terms but Now, we've got it’s buttoned up. well of conditions non-binding, most fairly

that. for pass you it on. Thank I'll

you. Thank

Sachs. Our of next of go ahead the line Goldman from Adam Samuelson question is please Adam, now.

open. line is Your

you. Good Yes, thank morning, everyone.

composition of was harvested what that XXXX? the value conscious can protein kind XXXX, would us that functional of shifts What deemphasize to protein if total in products kind and total I production, about look think kind were terms the So, the of what the potential lower taking like of we think the first question, acres? in mix acres of this, help you you're some and about guess just of in some in the portfolio, of

Day into we Yes, about greater Investor the I cumulative - acres XXXX portfolio. XXX,XXX the back can you mean, given than the where disclosure talked proprietary in

for you and harvest that year or met. protein more think last I The have contracted XXX,XXX consistently backed were successful. was math than planted we into others more the acres. That XXX,XXX targets acres, than

very that's So, positive.

portfolio you'll ongoing a farmer assume density. I the measure, to have shift ratio just, We value As with constituting however, on varieties nutrient a contracting products see of that to the you'll That's ultra-high emphasis you It's see, as our on protein larger fair to towards more varieties partners. for for, future, gross a a larger foreseeable what that higher shift don't continue see an it's basis. we're certainly expected. the protein higher will Adam, concentrate we would to emphasis assume, total protein that portfolio ultra-high

additional that the able next of products two may cautiously couple pressures the to three Now, some we've if as see think to I close after see and didn't in be three proprietary profit. months And neutral in surprised enhance if the and to we create such, some that grow years, gross portfolio to the continue be of cost that be recent experienced optimistic years look next two we and over I past assume to to years, - continue environment further abate. that the would should we profit to environment softening grow commodity some or today's fair and next we to to we that be the it, in I'd expect the of it's see

the putting end acres a and want on are both or kind that point acres? kind contemplating, including partnership the I partnership, you And the of soy, the XXXX, around also Decatur, just leveraging you're ADM you're buying where more the the clarification. kind of definitional of that for including the proprietary does ADM ones Okay. is acres

ADM It the does include acres.

including the that growth, that the we're And who's therefore acres carrying year-over-year to that the I and capital the contract working So, and have harvest. when ADM we volume that on we've growth ADM. approximately between the we say really own report accurate. ’XX, also contracted proprietary we XX% our acreage to you're that we contract closed-loop, after contract mean, the difference and acres for is with acres moved

it. Got

And go-to-market contribution of the partnership Okay. that various revenue how for and longer-term, products ADM with can about evolving XXXX, maybe elaborate, then on the beyond out you're some on? kind you you of just pushing where Matt, that talked the collaborating what's - relationship just of

Oh, for sure.

that revenue So, and budget but isn't this considered what's that is the as speak what we've we've XXXX, revisited could share intent long-range recognition decline value plan the our to only and the just somewhat. beyond our year, about for

do the the view a of again, and we looking that, a over So, view. more ADM for another reason we're recognition market a taken at slightly the we revenue why a adjust take, expectations to And reflect more I the how that's question. your proprietary XXXX partnership? at, we're we've current when the that revenue anticipating conservative environment so, And conservative bit look course of that hope lower profile, that answers

more that benefits in million interest the clarifying term And refinancing million kind of correct? $XX Dean, expense have reflect - that just a No, The for that's of then that question. not does $XX from Is one you to guidance for. you're sheet XXXX, helpful. any signed

the sort in of is and fact, prepayment debt. and what built in Yes. in extinguishment No, we've of that penalties

in So, you'll my see out in script, increase - called actually as the we charge. an that's interest

benefit, forward will. However, embedded of ‘XX, in some that number if as we move the you in is

I’ll okay. all right. All That's right. I on. very Oh, Got pass have. you. it. All That's helpful. Thank

line instructions]. [Operator the Lake Klieve is ahead. question go Street Ben Ben, of Capital you. our And please of Thank next Markets. from

is line Your open.

Thanks for questions. right. taking my All

kind there's kind versus agreement it expectations how six of recognition, due seems six, first in for one of following Is perspective that challenges Can versus the if I'm comments of trying in the what like announced over Matt, kind going months kind resetting of this are and changing changes chain have seven a much here things driver made. treatment, to the expectations, ADM market of changes the of months arisen getting ago, a agreement, when was accounting up kind primary kind up it- on primary this in or of the running kind understand farmers. Just your to of last an help with of supply today just you of you acreage with versus me, just revenue on is there and your on kind that us driver. - the of is lot understand

Sure.

you driver primary as changes the more market-related. is, indicated, the for So,

for the So, ADM product affects future same kind share partnership. described of the margin for portfolio, the value compression from that expectation the derived I

we're as the market, is over in time, just it pressures being factor And be as you revenue. we at near-term incremental we the so, unit the or the premiums number structured that see to And years, we're agreement to with with is the compression alter us to pace allows of realize another. one way due that's three which the recognizing therefore, growers the next margin participate this more in two anticipating economics that affecting what do to one both we that,

Dean we that recognition that conservative the we in as of revenue. this. about shouldn't, revenue more - which can comment information, more learn a the period it's not And view It's we'll on I changed. has not I'm so, but as to approach has way the think we want take calculated The remainder recognize not that changed. just

revenue then mean, the the performance, recognize that. I along is line, the milestone appropriate the under bottom full performance principally contract, valuation calculated the contract, Yes. with revenue then the of value of recognition and around the to is

line. back helpful. I'll Okay. All that's right. that. get in Thank you both for

Thank you.

the the call on for line, have to questions We back so further like comments. no to Crisp final I'd over Matt turn

Harry. Thanks, Sure.

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Benson the concludes That Hill Conference call.

and webcast. line You the exit may now disconnect your