In This Article:
-
Total Revenue: $60.4 million, down from $73.5 million last year.
-
Double Team Revenue: $10.9 million, an increase of 68% from the previous year.
-
Americas Sorghum Revenue: $20.4 million, up 10% compared to the previous year.
-
Americas Forage Revenue: $9.9 million, above the $9 million expectation.
-
Australia Domestic and International Sales: $29.1 million, down 33% from last year.
-
Gross Margin: 26.2%, above the stated outlook of 24% to 26%.
-
Total Operating Expenses: $30 million, below the guidance of $32.5 million.
-
Adjusted EBITDA: Negative $8.5 million, an improvement from negative $9.3 million last year.
-
Net Loss: Negative $30.1 million or negative $0.70 per share.
-
International Forage Sales: $29.1 million, down from $43.6 million last year.
-
Sorghum Gross Margin: 48% in aggregate for the Americas.
Release Date: November 01, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
Double Team revenue increased by 68% to $10.9 million, indicating strong growth in the Americas market.
-
Company-wide gross margins improved to 26.2%, exceeding the stated outlook of 24% to 26%.
-
Total operating expenses, excluding impairments, were reduced to $30 million, below the guidance of $32.5 million.
-
Sorghum technology, including Double Team, is expected to be planted on 10% of U.S. sorghum acres in 2024, up from 6% in 2023.
-
The company is recognized as a leader in sorghum technology, working with over 15 independent companies in the U.S. market.
Negative Points
-
International operations faced significant challenges, with Australian subsidiary entering voluntary administration.
-
Australia domestic and international sales fell to $29.1 million, down 33% from the previous year.
-
The company experienced a severe and abrupt shift in the MENA markets, with over $5 million in orders canceled due to Saudi Arabia's import restrictions.
-
Net loss for fiscal 2024 was $30.1 million, compared to a net income of $14.49 million in the previous year.
-
The voluntary administration process in Australia has led to an event of default under S&W's debt facilities, requiring ongoing negotiations with creditors.
Q & A Highlights
Q: Could you break down the EBITDA loss embedded within the Australian operations? A: Vanessa Baughman, Chief Financial Officer, mentioned that the segment reporting needed for the reconciliation of EBITDA losses is included in the 10-K filing. However, she did not provide specific numbers during the call.
Q: What is the maximum liability associated with the Australian business once the VA process is completed? A: Vanessa Baughman explained that the maximum liability is expected to be AUD 15 million, approximately $10 million. This is part of the ongoing discussions with the National Australia Bank (NAB) and is expected to be resolved by November.