AppHarvest, an AgTech company announced today its financial results for the full year ended December 31, 2020.
Fiscal year 2020 highlights
Net loss of $17.4 million, compared to $2.7 million in the prior year period in 2019 and an adjusted EBITDA loss of $15.7 million, compared to $2.6 million in the prior year period in 2019.
AppHarvest was in a pre-revenue state in 2020 as the company scaled to prepare to become a publicly traded company and as it ramped up to plant its first crop at its flagship facility, which began harvesting in January of 2021.
On January 29, 2021, AppHarvest and Novus Capital completed their business combination to form AppHarvest. The common stock and warrants of AppHarvest, Inc. began trading on Nasdaq under the new ticker symbols “APPH” and “APPHW,” respectively, on Monday, February 1, 2021.
Subsequent to the business combination, AppHarvest had 97,925,153 shares of common stock outstanding. The business combination provided the Company approximately $475.0 million of unrestricted cash, including $375.0 million in gross proceeds from the fully committed common stock PIPE. The transaction proceeds will be used to fund operations, including building additional high-tech controlled environment indoor farms, support growth and for other general corporate purposes, including to fund potential future investments and acquisitions.
Fiscal year 2021 forecast
The Company currently expects the following results for its first quarter ended March 31, 2021:
Net revenue to be in the range of $2.1 million to $2.6 million
Adjusted EBITDA loss to be in the range of $14 million to $16 million
The Company currently expects the following results for its fiscal year ending December 31, 2021:
Net revenue to be in the range of $20 million to $25 million
Adjusted EBITDA loss to be in the range of $43 million to $45 million
The Company noted that its expectations are based on information available at the time of this release, and are subject to changing conditions, many of which are outside the Company's control.
“Our favorable crop yields and market pricing currently support a 2021 sales outlook that is better than we expected in December 2020,” said AppHarvest Founder & Chief Executive Officer Jonathan Webb. “In January 2021, we delivered our first harvest of tomatoes from our flagship 63-acre indoor farm and began shipping to select national grocery retailers. We remain focused on our mission to build a resilient domestic food system for the U.S. to support this outlook in our first year as a public company.”
In addition to better than anticipated crop yields and pricing, the Company has benefited from a temporary decline in market supply related to recent extreme winter weather conditions that prevented transport of produce through Texas from Mexico and that resulted in significant amounts of food waste. Part of AppHarvest’s mission is to create a climate-resilient domestic food system for the U.S. to prevent such supply chain disruptions.