Marrone Bio Innovations, Inc.

Good day and welcome to the Maroon BioInnovations first quarter 2021 earnings conference call. Today's conference is being recorded, and at this time I would like to turn the conference over to Linda Moore, General Counsel. Please go ahead.

Good afternoon, everyone, and thank you for joining our call. Welcome to the 2021 first quarter earnings conference call for Maroon BioInnovations. On the call today are CEO Kevin Helash, CFO Su Chung, and Mati Tianan, Senior Vice President of International Sales. If you would please refer to slide two, I would like to remind you that this conference call may contain forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 regarding management's future expectations, plans, projections, forecasts, and prospects. Certain material assumptions were applied in reaching these conclusions and making these statements. Therefore, actual results could differ materially from those contained in our forward-looking information. Important factors that could cause differences are contained in the reports filed by the company with the Securities and Exchange Commission, including under the heading Risk Factors, MD&A, and elsewhere in the company's annual report, quarterly report, and other filings. The company expressly disclaims any obligation to revise or update any guidance or other forward-looking statements to reflect events or circumstances that may arise after the date of this call. After our remarks, we will hold a question and answer session. I will now turn the call over to our CEO, Kevin Helash. Kevin?

Thank you, Linda, and thanks to everyone joining us on the call today. We are now one-third of the way through the year, and I would point to three key indicators that will continue to define our success in 2021. One, we are progressing rapidly toward delivering breakeven on an adjusted EBITDA basis. Our first quarter results support this financial target, and Sue will provide more color on our numbers in a few minutes. Two, we are accelerating our commercial expansion on multiple fronts, And Maddie will provide an update on our global launch plans in the large acre row crops. And three, we intend to be the leader among our ag biological peers in terms of bringing sustainable products to the market. I'll speak in a moment to an important study we recently published that supports this position. If you would turn to slide three, I'm very pleased with the start to 2021. As we have noted before, The first quarter is a seasonally slower period for us and one that is driven by our specialty crop business in the United States. This foundational sector continues to deliver, and we expanded our market presence in this high-value segment. We reported our 11th consecutive quarter of increased revenues and our 10th consecutive quarter of gross margins above 50%. As we committed, we are being judicious with our spending. First quarter operating expenses declined on an absolute basis by 11%, and the ratio of operating expenses to sales was 91%. Both metrics are a testament to our ability to grow revenue and margins while strategically managing costs, a feat not easily accomplished in any company. If you would refer to slide four, we believe this quarter was an early indicator of our capabilities and of our upward trajectory as we approach break-even on an adjusted EBITDA basis. We remain highly committed to our core business in the specialty crop markets. However, given the market size and global reach, seed and soil applied products in the major row crops represent a tremendous opportunity for us. We have been serving this market for just over four years and have grown our offerings from one product to five. We are launching four new products this year, three of which are seed treatments, and all four of which are targeted for use in the broad acre row crops. The good news is that we have an established material presence. The better news is that the opportunity ahead of us is larger than what we've already achieved. Sustainability is at the core of our mission at MBI, and our seed treatments are a big part of that story. Since our inception, We have been at the forefront of the advancement of biological solutions, which today account for roughly one-third of all the active ingredients used in agriculture. Our distribution partners and growers rely upon us to provide products that deliver industry-leading performance and returns on investment. However, now more than ever, they also expect us to supply products that advance sustainable agriculture practices. To that end, we commissioned a climate impact study of our nematicide seed treatment, which we made public on May 6th. A summary of the results is illustrated on slide 5. We are extremely pleased to report that our seed treatment reduced greenhouse gas emissions by more than 85% in soybeans and corn when compared with conventional pesticides. Conservatively, For each million acres of soy or corn treated with our product, more than one million pounds of carbon dioxide emissions are reduced. This is equal to the amount of carbon sequestered by nearly 600 acres of U.S. forest land. Not only is our seed treatment better for the environment, it is also safe for humans, pollinators, and aquatic life. MBI has been and will continue to be a key player in sustainable agriculture. This study is further proof of our contribution toward producing food that is safe for the environment and beneficial organisms while serving our customers' needs. The foundation for our growth, now and in the future, is the increasing demand for food that is produced with sustainable agricultural practices. MBI is uniquely positioned to meet this need and consequently drive our growth and profitability, which will be rewarded in the marketplace and thus to our shareholders. With that, I'd like to turn the call over to Sue.