Local Bounti Corp (LOCL) 2024 Q2 法說會逐字稿

Good morning, and welcome to the Local Bounti second quarter 2024 earnings conference call. (Operator Instructions) Please also note, today's event is being recorded. At this time, I'd like to turn the call over to Jeff Sonnek with Investor Relations at ICR. Please go ahead, sir.

早安，歡迎參加 Local Bounti 2024 年第二季財報電話會議。（操作員說明）也請注意，今天的活動正在錄製中。現在，我想將電話轉給 ICR 投資者關係部門的 Jeff Sonnek。請繼續，先生。

Thank you, and good morning. Today's presentation will be hosted by Local Bounti's, Chief Executive Officer, Craig Hurlbert; and President and Chief Financial Officer, Kathleen Valiasek.

謝謝你，早安。今天的演講將由 Local Bounti's 執行長 Craig Hurlbert 主持；以及總裁兼財務長 Kathleen Valaliasek。

The comments made during today's call contain forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts are considered forward-looking statements. These statements are based on management's current expectations and beliefs, as well as a number of assumptions concerning future events.

今天電話會議中發表的評論包含 1995 年《私人證券訴訟改革法案》安全港條款含義內的前瞻性陳述。除歷史事實陳述外的所有陳述均被視為前瞻性陳述。這些陳述是基於管理層目前的預期和信念，以及有關未來事件的一些假設。

Such forward-looking statements are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from the results discussed in the forward-looking statements.

此類前瞻性陳述受到已知和未知的風險和不確定性的影響，可能導致實際結果與前瞻性陳述中討論的結果有重大差異。

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

其中一些風險和不確定性在該公司向美國證券交易委員會提交的文件中進行了識別和討論。我們也將參考某些非公認會計準則財務指標。請參閱新聞稿，新聞稿可在我們的投資者關係網站 Investor.localbounti.com 上找到，以了解非公認會計原則財務指標與其最直接可比較的公認會計原則指標的對帳情況。有了這個，我現在想把電話轉給克雷格。克雷格？

Thank you, Jeff, and good morning, everyone. Before I dive into our operational and financial highlights, I'd like to take a moment to comment on an important leadership change we made in the second quarter. I want to recognize, our CFO, Kathy Valiasek and her role expansion to include President that we implemented in June.

謝謝你，傑夫，大家早安。在深入介紹我們的營運和財務亮點之前，我想花點時間評論我們在第二季度做出的重要領導層變動。我想感謝我們的財務長 Kathy Valaliasek 以及我們在 6 月實施的將總裁職位擴展至包括總裁的職位。

Kathy has been instrumental in driving operational efficiencies, building trust with large commercial customers, and developing key financing relationships. Her expanded role reflects her significant contributions that have reached well beyond the leadership of our finance organization, and her unwavering commitment to scaling up our business. Together, we look forward to leading our organization through our next phase of growth.

凱西在提高營運效率、與大型商業客戶建立信任以及發展重要的融資關係方面發揮了重要作用。她的職責擴大反映了她的重大貢獻遠遠超出了我們財務組織的領導範圍，以及她對擴大我們業務的堅定承諾。我們期待共同帶領我們的組織實現下一階段的發展。

Now turning to our second quarter results. Our sales increased 31% year over year to a record $9.4 million, representing 12% growth on a sequential basis. Our adjusted EBITDA loss also improved by approximately $800,000 year over year to $7.5 million. These results demonstrate that we are on the right trajectory, to achieve our near-term goal of generating positive adjusted EBITDA in early 2025.

現在轉向我們的第二季業績。我們的銷售額年增 31%，達到創紀錄的 940 萬美元，季增 12%。我們調整後的 EBITDA 虧損也比去年同期減少了約 80 萬美元，達到 750 萬美元。這些結果表明，我們正走在正確的軌道上，能夠實現在 2025 年初實現正調整 EBITDA 的近期目標。

I'm especially excited to report that we have achieved several key milestones this quarter, which set a strong foundation for accelerated growth in the second half of 2024 and beyond. The most significant highlight of this quarter is the commencement of shipments from our new state-of-the-art facilities in Washington and Texas. These purpose-built facilities optimized for our Stack & Flow Technology, are now fully operational and already contributing to our revenue growth.

我特別高興地向大家報告，我們本季實現了幾個關鍵里程碑，這為 2024 年下半年及以後的加速成長奠定了堅實的基礎。本季最重要的亮點是我們位於華盛頓和德克薩斯州的最先進的新工廠開始出貨。這些針對我們的 Stack & Flow 技術進行了最佳化的專用設施現已全面投入運營，並已為我們的收入成長做出了貢獻。

What's particularly noteworthy is the rapid scaling of operations at these new sites. We've been able to achieve yield levels comparable to our Georgia facility in just one to two months, a process that initially took four to six months in Georgia. This accelerated ramp-up is a testament to the learnings we've applied from our Georgia experience, and the inherent advantages of our purpose-designed facilities.

特別值得注意的是這些新站點的業務規模迅速擴大。我們在短短一到兩個月內就達到了與喬治亞州工廠相當的產量水平，而這一過程最初在喬治亞州需要四到六個月的時間。這種加速的提升證明了我們從喬治亞州的經驗中學到的知識，以及我們專門設計的設施的固有優勢。

The Georgia Stack & Flow implementation, while very successful required a more gradual approach to avoid disrupting existing operations. In contrast, our new facilities have allowed us to implement our optimized processes from day one. There are several key advantages inherent in the design of our Washington and Texas facilities that are focused on driving operational efficiency, and accelerating our time to market.

喬治亞州 Stack & Flow 的實施雖然非常成功，但需要採取更漸進的方法來避免擾亂現有營運。相比之下，我們的新設施使我們能夠從第一天起就實施最佳化的流程。我們華盛頓和德州工廠的設計有幾個固有的關鍵優勢，這些優勢專注於提高營運效率並加快上市時間。

Both were designed with decoupled harvesting and packing areas, along with improved buffer systems, allowing for greater flexibility in processing various SKUs, and reducing production bottlenecks. Built with expansion in mind, these facilities can support double the current acreage, enabling cost-effective scaling.

兩者都設計有分離的收穫和包裝區域，以及改進的緩衝系統，可以在處理各種 SKU 時實現更大的靈活性，並減少生產瓶頸。這些設施的建設考慮到了擴展，可以支持當前面積的兩倍，從而實現經濟高效的擴展。

Advanced climate control systems tailored to local conditions, ensure consistent yield and quality year round, while good manufacturing practices layouts with multiple quality control checkpoints uphold our commitment to food safety and product excellence.

根據當地條件量身定制的先進氣候控制系統可確保全年穩定的產量和質量，而具有多個品質控制檢查點的良好生產實踐佈局則維護了我們對食品安全和產品卓越的承諾。

Additionally, sustainability features like water catchment and recycling systems in our Texas facility aligned with our environmental focus. These design elements and others, collectively contribute to our ability to rapidly scale operations and maintain high-quality production from day one.

此外，我們德州工廠的集水和回收系統等永續發展功能與我們的環境重點一致。這些設計元素和其他元素共同有助於我們從第一天起快速擴大營運規模並維持高品質生產的能力。

Capitalizing on this new capacity, we've successfully expanded our customer base and distribution network. I'm thrilled to announce that we are now shipping to more than 180 Brookshire Grocery Company locations from our new Mount Pleasant, Texas facility. Brookshire is stocking our full line of products across three states in the Southern United States, including our Grab-and-Go Salad Kits, living lettuce, and baby leaf varieties.

利用這項新產能，我們成功擴大了我們的客戶群和分銷網絡。我很高興地宣布，我們現在正在從德克薩斯州芒特普萊森特的新工廠向 180 多個 Brookshire Grocery Company 地點發貨。布魯克郡在美國南部的三個州庫存了我們的全系列產品，包括我們的即取沙拉套件、活生菜和嫩葉品種。

Additionally, we've expanded our distribution with Sam's Club for our leafy greens production with service commencing from our new Texas facility. With this added service, we are now fulfilling shipments to six of Sam's regional distribution centers from two of our facilities, Georgia and now Texas.

此外，我們還擴大了山姆會員店的綠葉蔬菜生產分銷範圍，並從德克薩斯州的新工廠開始提供服務。透過這項附加服務，我們現在正在從我們的兩個工廠（喬治亞州和現在的德克薩斯州）向 Sam 的六個區域配送中心發貨。

We remain on track with the national expansion of our Grab-and-Go Salad Kits. In the second quarter, we rolled out Grab-and-Go to approximately 200 doors throughout the Pacific Northwest and the Southern United States and we expect to expand to a total of 700 doors in the second half of 2024.

我們仍致力於在全國推廣外帶沙拉套裝。第二季度，我們在太平洋西北部和美國南部的約 200 個門推出了「Grab-and-Go」服務，預計到 2024 年下半年將擴展到 700 個門。

This expansion will be important for driving incremental revenue and introducing more consumers to the Local Bounti brand. The response to these convenient fresh offerings has been overwhelmingly positive and we are excited about the potential for further growth in this product category.

此次擴張對於增加收入和向更多消費者介紹 Local Bounti 品牌非常重要。對這些方便的新鮮產品的反應非常積極，我們對該產品類別的進一步成長潛力感到興奮。

Our Stack & Flow Technology continues to provide opportunities to drive efficiency across our operations. I am pleased to report that our large-scale trial, mentioned in our last update, has delivered as expected with yield increases of 10% over our current Georgia facility performance.

我們的 Stack & Flow 技術持續為提高我們的營運效率提供機會。我很高興地向大家報告，我們在上次更新中提到的大規模試驗已按預期交付，產量比我們當前喬治亞州設施的性能提高了 10%。

These results are extremely encouraging and we are now developing a comprehensive rollout strategy to implement these improvements across our Georgia, Washington, and Texas facilities. We look forward to sharing more details about this exciting development in future updates.

這些結果非常令人鼓舞，我們現在正在製定一項全面的推廣策略，以在我們的喬治亞州、華盛頓州和德克薩斯州工廠實施這些改進。我們期待在未來的更新中分享有關這一令人興奮的發展的更多細節。

Additionally, we've made significant strides in optimizing our seed costs. We've achieved this through two main approaches, first, by reducing overall seed usage, using fewer seeds per plant site, while maintaining or even increasing total yield.

此外，我們在優化種子成本方面取得了重大進展。我們透過兩種主要方法實現了這一目標，首先，減少整體種子使用量，減少每個種植地點使用的種子數量，同時保持甚至提高總產量。

And second, by lowering our cost per seed. This latter improvement comes from both negotiating cost reductions with excellent suppliers given our growing scale and identifying alternate seeds that offer lower cost without compromising on yield, taste, texture,, or flavor.

其次，降低每顆種子的成本。後者的改進來自於考慮到我們不斷擴大的規模，與優秀供應商談判降低成本，以及確定成本更低而不影響產量、味道、質地或風味的替代種子。

From these combined efforts we've been able to reduce our seed costs by approximately 20%. These advancements in yield and cost efficiency further strengthened our competitive position and contribute to our path towards profitability.

透過這些共同努力，我們已經能夠將種子成本降低約 20%。這些產量和成本效率的進步進一步增強了我們的競爭地位，並為我們的獲利之路做出了貢獻。

In summary, we achieved significant milestones this quarter from record sales to the successful launch of our new facilities and expanded retail distribution. This is a direct reflection of the great work our team is doing every day. Our commitment to innovation continues to drive operational efficiencies and product improvements.

總之，我們本季實現了重要的里程碑，從創紀錄的銷售到成功推出新設施和擴大零售分銷。這是我們團隊每天所做的出色工作的直接反映。我們對創新的承諾將繼續推動營運效率和產品改進。

Looking ahead, we remain focused on meeting increasing demand for sustainable locally grown produce, while steadily progressing towards our goal of achieving positive adjusted EBITDA in early 2025. We're confident in our path forward and we're excited about the opportunities that lie ahead for Local Bounti. With that, I'll turn the call over to Kathy.

展望未來，我們仍專注於滿足對永續本地種植農產品日益增長的需求，同時穩步實現 2025 年初實現正調整 EBITDA 的目標。我們對前進的道路充滿信心，並對 Local Bounti 面臨的機會感到興奮。這樣，我會將電話轉給凱西。

Thank you, Craig. I want to start off by saying that I'm truly honored to take on the role of President of Local Bounti in addition to my responsibilities as CFO. I look forward to bringing a deep understanding of our financial fundamentals to a broader operational role. This unique perspective will help us further align our fiscal strategy with our growth initiatives, ensuring we maximize value creation and capital efficiency across all aspects of our business.

謝謝你，克雷格。首先我想說，除了擔任財務長的職責外，我非常榮幸能夠擔任 Local Bounti 總裁。我期待著將對我們的財務基本面的深刻理解帶入更廣泛的營運角色。這種獨特的視角將幫助我們進一步調整我們的財務策略與成長計劃，確保我們在業務的各個方面最大限度地創造價值和資本效率。

Now I would like to update you on our ongoing capacity expansion initiatives and a couple of financial developments. First, we entered into negotiations for an additional $175 million of financing via another conditional commitment letter from the same commercial lender we have been working with.

現在，我想向您介紹我們正在進行的產能擴張計劃和一些財務進展的最新情況。首先，我們透過與我們合作的同一家商業貸款機構發出的另一份有條件承諾函，就額外 1.75 億美元的融資進行了談判。

If we enter into this additional CCL, it would bring our total committed future capital to approximately $400 million, subject to completing definitive documentation. This substantial funding would support our strategic growth plans, including expanding capacity across our Stack & Flow facilities to meet growing demand provide working capital and strategic growth capital.

如果我們簽署額外的 CCL，這將使我們承諾的未來資本總額達到約 4 億美元，具體取決於最終文件的完成。這筆巨額資金將支持我們的策略性成長計劃，包括擴大 Stack & Flow 設施的產能，以滿足不斷增長的需求，提供營運資金和策略成長資本。

Second, we also entered into a non-binding letter of intent for a $55 million sale-leaseback of our Georgia facility, which will be used to pay down our existing construction financing and add additional working capital to our balance sheet.

其次，我們也簽署了一份不具約束力的意向書，以 5,500 萬美元出售喬治亞工廠的回租，這將用於償還我們現有的建設融資，並為我們的資產負債表增加額外的營運資金。

Alongside the advancement of these incremental financings, our plans to increase capacity across our network of facilities are progressing well. These expansions are strategically designed to increase our production capabilities and accommodate our growing product assortment.

除了這些增量融資的進展之外，我們提高設施網路容量的計畫也進展順利。這些擴張的戰略目的是提高我們的生產能力並適應我們不斷增長的產品種類。

As we advance our plans, including our anticipated entry into the Midwest market, we're taking a measured and collaborative approach. We're actively engaging with our retail partners to optimize each facility for specific products that align with the distribution strategies.

當我們推進我們的計劃時，包括我們預期進入中西部市場，我們正在採取謹慎和協作的方法。我們正在積極與零售合作夥伴合作，針對符合分銷策略的特定產品優化每個設施。

And this is of particular importance right now as we roll out our broader SKU assortment which is of great interest to new and existing customers. This approach not only strengthens our market position, but also reinforces our commitment to delivering fresh, high-quality produce through sustainable tech-enabled farming practices across the nation. I'm also pleased to report that we have nearly completed the transition of the Hamilton Montana facility from its previous R&D focus to a commercial-oriented facility.

現在這一點尤其重要，因為我們推出了更廣泛的 SKU 品種，新客戶和現有客戶對此都非常感興趣。這種方法不僅加強了我們的市場地位，而且強化了我們透過永續技術支援的農業實踐在全國範圍內提供新鮮、優質農產品的承諾。我還很高興地報告，我們幾乎完成了蒙大拿州漢密爾頓工廠從以前的研發重點到商業導向設施的轉變。

The Montana facility's new commercial focus is expected to contribute meaningfully to our product output. Furthermore, this shift is generating a material improvement in our facility-level EBITDA contribution. In fact, we are already seeing that we've improved by approximately $1 million compared to Q2 last year. Once we have ramped up sales out of that facility in Q3 and Q4 this year, that facility will be near cash flow breakeven and drive us closer to achieving our near-term financial goals.

蒙大拿州工廠的新商業重點預計將為我們的產品產量做出有意義的貢獻。此外，這一轉變正在使我們的設施級 EBITDA 貢獻得到實質改善。事實上，我們已經看到與去年第二季相比，我們的收入增加了約 100 萬美元。一旦我們今年第三季和第四季提高該設施的銷售額，該設施將接近現金流收支平衡，並推動我們更接近實現近期財務目標。

Now shifting to our second quarter results. Second quarter 2024 sales increased 31% to $9.4 million as compared to $7.2 million in the prior year and increased 12% compared to $8.4 million in the first quarter 2024. Our results largely reflect the increased production and growth in sales from our Georgia facility and to a lesser extent the partial quarter contribution from our Washington and Texas facilities.

現在轉向我們的第二季業績。2024 年第二季銷售額較前一年的 720 萬美元成長 31%，達到 940 萬美元，較 2024 年第一季的 840 萬美元成長 12%。我們的業績在很大程度上反映了我們喬治亞州工廠產量的增加和銷售的成長，以及在較小程度上反映了我們華盛頓和德克薩斯州工廠的部分季度貢獻。

I'd also point out that revenue contribution out of Montana was impacted due to the temporary shutdown associated with the transition to different SKUs for commercial production, which should reverse and be a tailwind for us in the second half of the year.

我還想指出的是，蒙大拿州的收入貢獻受到了由於商業生產向不同 SKU 過渡而暫時關閉的影響，這種情況應該會逆轉，並在今年下半年成為我們的順風車。

The second quarter adjusted gross margin, excluding depreciation and stock-based compensation, was approximately 29%, while our adjusted gross margin performance continues to reflect costs associated with the ongoing optimization and scaling up of our growth facilities, we were pleased to see a 5 percentage point improvement in margin from Q1 to Q2. We continue to expect our adjusted gross margin to increase in the coming quarters as sales ramp in parallel with our capacity scale-up this year.

第二季調整後的毛利率（不包括折舊和股票薪酬）約為 29%，而我們調整後的毛利率表現繼續反映與持續優化和擴大我們的成長設施相關的成本，我們很高興看到 5從第一季到第二季度，利潤率提高了一個百分點。我們繼續預計，隨著銷售額的成長與今年產能擴張的同時，調整後的毛利率將在未來幾季增加。

Beyond the scale-related benefits, as Craig mentioned, we continue to make good progress with other initiatives that we expect to further support margin improvement, such as improvements in our seed costs.

正如克雷格所提到的，除了與規模相關的效益之外，我們還繼續在其他舉措方面取得良好進展，我們預計這些舉措將進一步支持利潤率的提高，例如種子成本的改善。

SG&A for the second quarter decreased $6 million as compared to the prior year to $10.7 million, driven by cost-saving actions we took in the fourth quarter of 2023 and first quarter 2024 to streamline our org structure as well as lower stock-based compensation expense.

由於我們在2023 年第四季和2024 年第一季採取了成本節約行動，以精簡我們的組織結構以及降低基於股票的薪酬費用，第二季度的銷售管理費用(SG&A) 比上一年減少了600 萬美元，至1,070 萬美元。

We expect to continue to benefit from the cost-saving actions, and the resulting lower cost base, through the end of 2024. As a result, of our year-over-year improvement in sales and cost savings, our operating loss improved by $5.5 million in the second quarter as compared to the prior year.

我們預計到 2024 年底將繼續受益於成本節約行動以及由此帶來的較低成本基礎。因此，由於我們的銷售額和成本節約年有所改善，第二季的營業虧損比去年同期減少了 550 萬美元。

Net loss was $25.3 million in the second quarter of 2024, as compared to a net loss of $10.7 million in the prior year period. I'd note that the second quarter of 2023 was positively influenced by a $15.2 million non-cash mark-to-market gain in the fair value of a warrant liability which helps explain the variance year over year.

2024 年第二季的淨虧損為 2,530 萬美元，而去年同期的淨虧損為 1,070 萬美元。我要指出的是，2023 年第二季受到認股權證負債公允價值 1,520 萬美元非現金以市價收益的正面影響，有助於解釋同比差異。

Adjusted EBITDA loss improved to $7.5 million as compared to a loss of $8.3 million in the prior year period. From a capital structure perspective, as of June 30, 2024, we had cash, cash equivalents, and restricted cash in the amount of $16.2 million. And as of second quarter, we had approximately 8.6 million shares outstanding.

調整後 EBITDA 虧損從去年同期的虧損 830 萬美元改善至 750 萬美元。從資本結構的角度來看，截至 2024 年 6 月 30 日，我們擁有現金、現金等價物和限制性現金，金額為 1,620 萬美元。截至第二季度，我們的流通股約為 860 萬股。

On a pro forma basis, including warrants and our employees' restricted stock units outstanding, we have a fully diluted share count of approximately 16.1 million shares. We're encouraged by the increasing support for Local Bounti's innovative CEA approach. Our financial position remains solid with sufficient capital to fund operations, complete ongoing construction projects and achieve our critical milestone of positive adjusted EBITDA in early 2025.

根據備考基礎，包括認股權證和員工已發行的限制性股票單位，我們的完全稀釋後股份數量約為 1,610 萬股。我們對 Local Bounti 的創新 CEA 方法越來越多的支持感到鼓舞。我們的財務狀況依然穩健，擁有足夠的資本來資助營運、完成正在進行的建設項目，並在 2025 年初實現正調整 EBITDA 的重要里程碑。

This target will be reached through a combination of increased revenue from our new facilities, reduced SG&A expenses, and decreased R&D costs as we shift our Montana Facility towards more commercial activities.

隨著我們將蒙大拿工廠轉向更多的商業活動，我們將透過增加新工廠的收入、減少銷售、一般行政費用以及降低研發成本來實現這一目標。

Moreover, we're actively pursuing strategies to lower our cost of capital and refinance our construction debt including potential sale leaseback transactions and collaborations with USDA license lenders. These efforts underscore our commitment to optimizing our financial structure, while driving operational growth.

此外，我們正在積極尋求降低資本成本和建築債務再融資的策略，包括潛在的售後回租交易以及與美國農業部許可貸方的合作。這些努力凸顯了我們對優化財務結構、同時推動營運成長的承諾。

With respect to our outlook and in consideration of our year-to-date performance, we are reiterating our full year 2024 sales guidance of $50 million to $60 million. This guidance continues to reflect expected production out of our Georgia, California, and Montana facilities and, to a lesser extent the partial-year contribution from production ramping up at our Texas and Washington facilities.

就我們的前景而言，並考慮到我們今年迄今的業績，我們重申 2024 年全年銷售指引為 5,000 萬至 6,000 萬美元。該指引繼續反映了我們喬治亞州、加利福尼亞州和蒙大拿州工廠的預期產量，並在較小程度上反映了我們德克薩斯州和華盛頓工廠產量增加的部分年度貢獻。

In terms of how to think about the balance of the year, we expect a significant step-up in revenue growth for the back half compared to the first half as, Washington and Texas production ramps as well as significantly increased revenue from our Grab-and-Go rollout both in terms of higher volumes associated with our placement in many of our customers' new resets and a higher average selling price, which helps our overall mix. Fourth quarter is expected to be larger than the third quarter to meet our full year guidance.

就如何考慮今年的剩餘時間而言，我們預計下半年的收入增長將比上半年顯著加快，因為華盛頓州和德克薩斯州的產量增加，以及我們的 Grab-and 收入顯著增加- 推出與我們在許多客戶的新重置中的放置相關的更高銷售量和更高的平均售價，這有助於我們的整體組合。預計第四季將大於第三季度，以達到我們的全年指引。

In closing, I really want to express my gratitude for our team's focus this year and also extend that gratitude to our customers who are supporting our efforts to bring locally grown produce to more consumers.

最後，我真的想對我們團隊今年的關注表示感謝，並向支持我們努力將本地種植的產品帶給更多消費者的客戶表示感謝。

As we've heard today, we've been incredibly busy, making progress on all fronts including scaling up our operations with the opening up of two new greenfield facilities the transition of Montana to commercial operations, building out our product assortment and expanding distribution with new and existing customers. We couldn't be prouder of our organization. Thank you. That concludes our prepared remarks. Operator, please open the call for questions.

正如我們今天所聽到的，我們一直非常忙碌，在各方面都取得了進展，包括通過開設兩個新的綠地設施來擴大我們的業務，蒙大拿州向商業運營的過渡，建立我們的產品種類並擴大分銷新客戶和現有客戶。我們為我們的組織感到無比自豪。謝謝。我們準備好的演講到此結束。接線員，請打開電話提問。

(Operator Instructions) Kristen Owen, Oppenheimer & Company.

（操作員說明）Kristen Owen，Oppenheimer & Company。

Hi. Good morning. Thank you for taking the question and congrats on all the progress made this quarter. Kathy, I was wondering you gave some great color on sort of how to think about the back half of the year. Maybe help us with some of those on-the-ground milestones how to think about the contribution of Texas and Pasco in the back half, when we really start to see Montana get up and running?

你好。早安.感謝您提出問題，並祝賀本季取得的所有進展。凱西，我想知道你對如何思考今年下半年給了一些精彩的闡述。也許可以幫助我們實現一些實地里程碑，當我們真正開始看到蒙大拿州啟動並運行時，如何思考德克薩斯州和帕斯科在後半場的貢獻？

And just as it relates to some of the commercial agreements that you announced or some of the commercial shipments that you announced in the quarter, how we should think about maybe capacity utilization or run rate revenue on those facilities as we think about that bridge now into 2025?

正如它與您宣布的一些商業協議或您在本季度宣布的一些商業發貨有關一樣，當我們現在考慮這座橋樑時，我們應該如何考慮這些設施的產能利用率或運行率收入2025 年？

Thanks, Kristen, and good morning. Love the question, multifaceted question. It's pretty amazing. As we said in our prepared remarks, how far Local Bounti has come just even in last three to four months. And as Craig and I have said, we are just so incredibly proud of all of our teams in how far we've come. So many things to update on, I would say since our last call, when you think about even the new facilities, right, the new customers coming online the capacity that we are providing to Sam's in Texas and also the Brookshire's, right?

謝謝克里斯汀，早安。喜歡這個問題，多方面的問題。這真是太神奇了。正如我們在準備好的演講中所說，本地賞金在過去三到四個月裡取得了多大進展。正如克雷格和我所說，我們為我們所有團隊所取得的進步感到無比自豪。自從我們上次通話以來，有很多事情需要更新，當你想到新設施時，對吧，新客戶上線，我們為德克薩斯州的 Sam's 和 Brookshire's 提供的容量，對嗎？

And then also all of the new SKUs that are coming online that we've talked about in the past, but it's very significant in the sense that Arugula, Spinach, Basil Power Blends, right, they all have higher price points than our – the Spring Mix, which is kind of our bread and butter. So that's kind of one of the things that will make a significant difference to us in the second half.

然後還有我們過去討論過的所有即將上線的新 SKU，但這非常重要，因為芝麻菜、菠菜、羅勒混合動力，對吧，它們的價格點都比我們的要高 – Spring Mix，這是我們的麵包和黃油。所以這是對我們下半年產生重大影響的事情之一。

And when we did the Q1 call, we didn't have as great visibility as we currently do to the impact that those SKUs will have on top line revenue and also margin contribution, right? And then also we talked about the Grab-and-Go. We did have one or two large customers that started up a month or two late with the Grab-and-Go, in other words they started in Q3 versus Q2.

當我們進行第一季電話會議時，我們並沒有像目前那樣清楚地了解這些 SKU 對營收和利潤貢獻的影響，對嗎？然後我們也討論了「Grab-and-Go」。我們確實有一兩個大客戶晚了一兩個月才開始使用“即拿即走”服務，換句話說，他們是在第三季度而不是第二季度開始的。

So there was a little bit of a shift there just logistically no big deal just a timing situation. And then we also in my prepared comments talked about Montana. The revenue out of Montana in Q2 was probably a little bit less than we had anticipated, partially because we realized that we wanted to bring in live and cut basil -- living head basil sorry and cut basil out of Montana, which was likewise two SKUs which are higher margin than our Spring Mix, which is great. But it took a little bit more time to get those SKUs kind of up and running.

所以有一點轉變，只是邏輯上沒什麼大不了的，只是時間安排上的狀況。然後我們也在我準備好的評論中談到了蒙大拿州。第二季蒙大拿州的收入可能比我們預期的要少一點，部分原因是我們意識到我們想引進活羅勒和切羅勒——活羅勒頭，抱歉，從蒙大拿州切羅勒，這同樣是兩個SKU這比我們的春季混合產品的利潤率更高，這很棒。但這些 SKU 的啟動和運作需要更多的時間。

Let's see capacity-wise, we are very much sold out for the most part in our facilities. Washington is a little bit different in the sense that we didn't have Sam's buying out of that facility right away and Brookshire's, et cetera but it's coming along very, very quickly. And as we alluded also in our recorded comments, we are talking very closely with all of our customers.

讓我們看看容量方面，我們的設施大部分都已售罄。華盛頓有點不同，因為我們沒有立即讓薩姆購買該設施，而布魯克郡等則購買了該設施，但進展非常非常快。正如我們在記錄的評論中也提到的那樣，我們正在與所有客戶進行密切交談。

And why is that right? They all see now that we actually can provide the scale and the volume that's needed in these products, right? And so very closely we're talking with them about hey what are the -- they all want the new SKUs but also what does that mean for the expansions and the 2024 builds? Let's be sure that you get the capacity you want in those new builds, right? So I hope that answered most of your questions, but let's follow up -- and Craig -- helpful. Sorry.

為什麼這是對的？他們現在都看到我們實際上可以提供這些產品所需的規模和數量，對嗎？我們正在與他們密切討論，嘿，他們都想要新的 SKU，但這對擴展和 2024 年版本意味著什麼？讓我們確保您在這些新建置中獲得所需的容量，對吧？所以我希望這回答了你的大部分問題，但讓我們繼續跟進——克雷格——很有幫助。對不起。

We love Kristen's questions because they're always detailed. So yeah, is everything there Kristen?.

我們喜歡克里斯汀的問題，因為它們總是很詳細。是的，克里斯汀一切都在那裡嗎？

Yeah, you're getting the Kristen Owen special here. Just the only one I would ask maybe a little bit of a double click on because of the new SKUs and how you're seeing these customers come on the sort of exit revenue rate. I mean if I think about your second half guidance was implied in the back half of the year, how do we think about that as a starting point for 2025 and what are sort of the ranges on when we think about like that SKU mix or that customer mix?

是的，這裡有克莉絲汀歐文特別節目。我唯一想問的問題可能是雙擊，因為新的 SKU 以及您如何看待這些客戶的退出收入率。我的意思是，如果我認為下半年的指導是在今年下半年暗示的，那麼我們如何將其視為 2025 年的起點，以及當我們考慮 SKU 組合或那樣的情況時，範圍是什麼？ ？

Yeah. I mean it's a great question. I mean when we think about 2025 just the level of these new SKUs are definitely going to very much impact our revenue and our margin, okay? And then I also should highlight the R&D project that we ran out of Georgia to increase the yields. We will also be blowing that out into all of our facilities in Q2, Q3 -- sorry, Q3, Q4 and that will also impact the revenue when we think about it for next year, yes, significantly.

是的。我的意思是這是一個很好的問題。我的意思是，當我們考慮 2025 年時，這些新 SKU 的水平肯定會對我們的收入和利潤產生很大影響，好嗎？然後我還應該強調我們在喬治亞州開展的用於提高產量的研發項目。我們還將在第二季、第三季將其投入到我們的所有設施中——抱歉，第三季、第四季度，當我們考慮明年的收入時，這也會對收入產生影響，是的，影響很大。

We'll be honing in on this over the next couple of months on 2025. It's a great question and it's one that's on our minds every day.

我們將在 2025 年接下來的幾個月內對此進行磨練。這是一個很好的問題，也是我們每天都在思考的問題。

Ben Klieve, Lake Street Capital Markets.

Ben Klieve，湖街資本市場。

Thanks for taking my questions. First is around the sale-leaseback of the Georgia facility. Kathy, I'm wondering if you could just give us any additional detail on that be it the cap rate the degree to which it is going to be an EBITDA headwind given the addition of a lease expense or the impact on cash flow given that you're replacing higher cost construction financing with lower cost rent payments? So any details you can provide on that would be great.

感謝您回答我的問題。首先是喬治亞州工廠的售後回租。凱西，我想知道您是否可以向我們提供任何其他詳細信息，無論是上限利率，還是考慮到租賃費用的增加或對現金流的影響，它將成為 EBITDA 逆風的程度，因為您是否正在用成本較低的租金支付取代成本較高的建築融資？因此，您能提供的任何詳細資訊都會很棒。

Yeah. Just not to share a ton of details at this point. What we I think we've said, sort of, consistently this is the strategy right, for each of the facilities after they get to a certain level of profitability bring them -- bring a sale-leaseback into the facility and take up the construct financing, right?

是的。只是現在不分享大量細節。我認為我們已經說過，在某種程度上，這始終是正確的策略，對於每個設施來說，在達到一定的盈利水平後，它們會帶來——將售後回租帶入設施並開始建設融資吧？

And so I would anticipate the similar situation is going to happen with Texas and Washington. And what I would say especially for those two facilities Craig mentioned it in his comments our teams brought those facilities to be up and running in such an impressive short period of time that those facilities we will be able to flip them to sell leaseback much sooner than we were able to with Georgia.

因此，我預計德克薩斯州和華盛頓州也會發生類似的情況。我要說的是，特別是對於這兩個設施，克雷格在他的評論中提到，我們的團隊在如此令人印象深刻的短時間內使這些設施啟動並運行，我們將能夠將這些設施翻轉為售後回租，比我們能夠與喬治亞州合作。

I can't at this point kind of give the rate on the sale leaseback, but I just wanted to give the color around this is a strategy that we've always been going for and it's great with Texas and Washington because we'll be able to flip them to sale-leaseback sooner because significantly sold out to a certain degree and just they came up and running very, very quickly.

我目前無法給出售後回租的費率，但我只是想說明這是我們一直在追求的策略，這對德克薩斯州和華盛頓州來說很棒，因為我們將能夠更快地將它們轉為售後回租，因為在一定程度上已大量售罄，而且它們啟動並運行得非常非常快。

Got it. Okay. No fair enough. And we'll stay tuned for details on that when you're able to provide them. On the EBITDA ramp, I'm wondering if you can kind of walk me through a bit of the sequential shift from Q1 to Q2 on EBITDA. So that burn rate ticked up a little bit from $6.9 million to $7.5 million. It sounds like you had some expenses in Montana associated with the transition probably some elevated costs in Washington and Texas they turned on.

知道了。好的。不夠公平。當您能夠提供詳細資訊時，我們將繼續關注。關於 EBITDA，我想知道您是否可以向我介紹一下 EBITDA 從第一季到第二季的順序變更。因此，燒錢率從 690 萬美元略有上升到 750 萬美元。聽起來您在蒙大拿州有一些與過渡相關的費用，可能在華盛頓和德克薩斯州他們開啟了一些更高的費用。

Can you talk about kind of the drivers of that EBITDA line from the first quarter to the second quarter and then the degree to which any of those contributing factors are going to be getting turned off here in the third quarter to allow for that to allow for an EBITDA improvement here in the current quarter?

您能否談談從第一季到第二季 EBITDA 線的驅動因素，以及這些影響因素在第三季將在多大程度上關閉，以允許這一點本季 EBITDA 有所改善嗎？

Yeah, thank you. I'm so glad you asked that question because it's constantly on my mind and I watch it every single day. So one of the points I did talk about in my script was Montana being less of a revenue contributor.

是的，謝謝。我很高興你問這個問題，因為它一直在我的腦海裡，我每天都會看它。因此，我在劇本中談到的要點之一是蒙大拿州對收入的貢獻較小。

And we really honestly weren't planning for that when we did our Q1 call and -- but we did it, the change that we made to bring basal into that facility is really the right thing long-term because we will be doing a spring mix SKU out of there but adding in basal will increase the profitability out of that facility. But it meant a little bit less revenue in Q2, okay?

老實說，當我們進行第一季電話會議時，我們確實沒有計劃這樣做，但是我們做到了，我們為將基礎引入該設施所做的改變確實是長期正確的事情，因為我們將在春季進行混合SKU，但添加基礎將提高該設施的盈利能力。但這意味著第二季的收入會減少一點，好嗎？

And then there were a couple of other things from a timing perspective. I already mentioned the Grab-and-Go we had two customers that came in that started to buy that product. We had planned for a Q2 start. It was a Q3 start just a month or two difference no big deal there. And then the other thing that I would note is that our construction team all of those costs are typically capitalized, okay?

從時間角度來看，還有其他一些事情。我已經提到過“即取即走”，我們有兩個顧客進來開始購買該產品。我們原計劃從第二季開始。這是第三季的開始，只有一兩個月的差異，沒什麼大不了的。我要注意的另一件事是我們的施工團隊所有這些成本通常都是資本化的，好嗎？

I didn't include this in my recorded comments that all of those costs are typically capitalized. Those poor guys finally in Q2 were able to actually all take the needed vacation. These guys for two years didn't take any vacation at all and we had just a couple of reasons that we had some of the construction guys costs for I want to say $400,000 or $500,000 that hit the P&L, SG&A in Q2 and then will go away in Q3. So those are kind of the four factors.

我沒有在記錄的評論中包含這一點：所有這些成本通常都是資本化的。那些可憐的傢伙最終在第二季度實際上能夠享受所需的假期。這些人兩年來根本沒有休假，我們有幾個原因讓一些建築人員的成本達到了第二季的損益表、SG&A，我想說 40 萬或 50 萬美元，然後就會消失第三季。這些就是四個因素。

Got it. Okay. That's all helpful.

知道了。好的。這很有幫助。

But we are in the -- I do want -- yeah, I do really quickly want to say we are really tracking to Q1 EBITDA positive. And I'm thrilled to see the progress. I talked about it in terms of just even the loss out of Montana. We've already improved quarter-over-quarter [$1 million], which is just fantastic also.

但我們確實希望——是的，我確實很快想說，我們確實正在追蹤第一季 EBITDA 的正數。我很高興看到進展。我談到了蒙大拿州的失利。我們已經實現了季度環比的改善 [100 萬美元]，這也非常棒。

Very good. And then I have one more on -- either for you Kathy or Craig, as you guys see fit, but Craig's opening comments noted that the expectation are that the Texas and Washington facilities can double. Wondering if you can elaborate a bit on the context behind that? Does that imply that the land is secure for a doubling? Does that imply that the infrastructure is in place such that you can double with just a greenhouse addition? Really what is that doubling potential look like out of Texas and Washington?

非常好。然後我還有一個——無論是給你們凱西還是克雷格，你們認為合適，但克雷格的開場評論指出，預期德克薩斯州和華盛頓州的設施可以增加一倍。想知道能否詳細說明一下背後的背景嗎？這是否意味著土地可以安全翻倍？這是否意味著基礎設施已經到位，只需增加溫室即可翻倍？德州和華盛頓州的翻倍潛力到底是什麼樣的？

Yeah. Hey, Ben great question. And the answer is the land has been secured and we purchased the property with this in mind under the anticipation that our customers would want more product, and that's pretty much what's happening to a significant scale. And so we went about the construction to do a lot of stuff we could do in the first round that would benefit the second expansion round of construction.

是的。嘿，本，好問題。答案是土地已經得到保障，我們購買該房產時就考慮到了這一點，因為我們預計我們的客戶會想要更多的產品，而這正是大規模發生的情況。因此，我們在建設中做了很多我們可以在第一輪中做的事情，這將有利於第二輪擴建建設。

So you can think of it kind of as a greenhouse only, but there will be some other things that go along, but it should go up relatively easy without interaction much disruption at all if any with our current operations, and we'll be in a position to deepen those relationships with our customers, as we're able to provide not only more products, but also just more mass as well. So yeah, it's very exciting and the feedback from the customer has been very positive. Kathy?

所以你可以把它想像成一個溫室，但還會有一些其他的事情發生，但它應該相對容易地上升，不會對我們當前的運營產生太大的干擾，如果有的話，我們將在加深與客戶的關係，因為我們不僅能夠提供更多的產品，而且還能夠提供更多的品質。所以，是的，這非常令人興奮，而且客戶的回饋非常積極。凱西？

Yeah. I mean, the strategy always has been to buy enough land, so that we can double the capacity, right? We did that with the property in Georgia at some point. I'm sure we're going to have to double the capacity there also.

是的。我的意思是，策略始終是購買足夠的土地，以便我們可以將產能翻倍，對吧？我們在某個時候對喬治亞州的房產也這樣做了。我確信我們也必須將那裡的容量增加一倍。

Got it. Very good. Well, exciting stuff. Congratulations on the good first half of the year. Looking forward to what comes through in the second half. And I'll back in the queue.

知道了。非常好。嗯，令人興奮的事。恭喜您上半年取得了良好的成績。期待下半場會發生什麼事。我會回到隊列中。

Scott Fortune, ROTH Capital Markets.

史考特‧福瓊，羅斯資本市場。

Yeah, good morning and thanks for the questions. Great progress going forward. Just any updates on the Midwest and kind of timing there kind of where you're looking at from that standpoint? Is that based on kind of building it, or getting kind of customer feedback and kind of almost like supply agreements or offtake agreements ahead of time to really build that out? Just kind of a little more color on the Midwest build?

是的，早安，謝謝你的提問。未來將取得巨大進步。只是中西部地區的任何更新以及您從這個角度來看的時間安排嗎？這是基於構建它的方式，還是基於提前獲得客戶反饋以及類似供應協議或承購協議的方式來真正構建它？只是為中西部建築增添一點色彩嗎？

Kathy, you want to tackle that?

凱西，你想解決這個問題嗎？

Yeah, sure. Hey, Scott, good morning. Great question. So the Midwest build is basically at this point, I sort of alluded to it in the beginning of my unrecorded comments all of the customers are seeing how we are able to scale and provide the level of quantity that these retailers need. And so the Midwest facility, we had always planned to put it in a certain part of the country where we can service many DCs out of there.

是的，當然。嘿，斯科特，早安。很好的問題。因此，中西部的建設基本上就在這一點上，我在未記錄的評論開始時就提到了這一點，所有客戶都在看到我們如何能夠擴展並提供這些零售商所需的數量水平。因此，我們一直計劃將中西部設施放在該國的某個地區，在那裡我們可以為那裡的許多 DC 提供服務。

And what's happening with it is we have -- it taken us a little bit longer to buy the land. But that's actually worked out because what's happening is with all of these new SKUs and with the heightened customer demand, the new SKUs have a different tempo in the facility.

發生的事情是我們花了更長的時間來購買土地。但這實際上是可行的，因為所有這些新的 SKU 都發生了這種情況，隨著客戶需求的增加，新的 SKU 在工廠中的節奏有所不同。

They require a fewer number of days. They're considered a faster crop. So what it actually means is we're tweaking the design a little bit, so that we can more efficiently run all of these SKUs out of that facility and frankly, even because of all the demand from customers considering a significantly larger build than we might have thought, two quarters ago.

他們需要的天數更少。它們被認為是生長速度較快的作物。因此，這實際上意味著我們正在稍微調整設計，以便我們可以更有效地在該設施外運行所有這些 SKU，坦率地說，即使是因為考慮到比我們可能規模大得多的客戶的所有需求兩個季度前曾想過。

Got it. I appreciate that color. And just kind of a CapEx or kind of your need for expansion, any color on kind of the second half and the working capital or the CapEx needs, as you move forward into second half? I know you, probably didn't give guidance on that but just kind of expectations around that. And kind of what -- CapEx is -- go ahead sorry.

知道了。我很欣賞那種顏色。當您進入下半年時，只是一種資本支出或您的擴張需求，下半年以及營運資金或資本支出需求的任何顏色？我知道你可能沒有對此提供指導，而只是對此有一些期望。資本支出是什麼——抱歉。

No worries, Scott. So yeah, as we talked about in our prepared comments the CCLs, with our finance lender, we are working to close as soon as we possibly can. That financing will provide the construction for a 2024 build, plus working capital, plus strategic capital.

不用擔心，斯科特。所以，是的，正如我們在準備好的評論中談到的，CCL 與我們的融資貸方一起，正在努力盡快關閉。這筆融資將為 2024 年的建設提供基礎設施、營運資金和策略資本。

And then also as we mentioned our sale-leaseback, we will be using those funds partially to pay down some construction financing, but also using some of that for working capital. We don't actually need a ton of working capital, but both of the financings will provide as much as we need in effect.

然後，正如我們所提及的售後回租，我們將部分使用這些資金來支付一些建設融資，但也將其中一些用作營運資金。我們實際上並不需要大量的營運資金，但這兩項融資都將提供我們實際上需要的資金。

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

女士們先生們，此時此刻，我不會再提出任何問題。我想結束問答環節，並將電話會議轉回管理階層進行總結演講。

Well, thank you, everyone. I'd like to reiterate what both Kathy and I touched on this morning and that is tremendous gratitude to our team. To our knowledge, no one else has ever brought up two facilities of this stature and size in the same quarter, and it's a Herculean effort by our entire organization.

嗯，謝謝大家。我想重申凱西和我今天早上談到的內容，這對我們的團隊表示極大的感謝。據我們所知，還沒有其他人在同一季度建造過如此高水準和規模的兩座設施，這是我們整個組織付出的巨大努力。

And Kathy and I are grateful to every single Local Bounti employee, our Board of Directors, and everybody involved. So, a huge thank you sincerely from the bottom of Kathy and I's heart on that. I'd like to thank everybody for joining us today, and we look forward to updating you on our progress as we further scale and grow Local Bounti's business in the coming quarters. Thank you so much. Everybody, have a great day.

凱西和我感謝每一位 Local Bounti 員工、我們的董事會以及所有參與者。因此，凱西和我衷心地衷心感謝您。我要感謝大家今天加入我們，隨著我們在未來幾季進一步擴大和發展 Local Bounti 的業務，我們期待向您通報我們的最新進展。太感謝了。大家，祝你有美好的一天。

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

女士們先生們，今天的電話會議到此結束。我們非常感謝您的出席。現在您可以斷開線路。