Local Bounti Corporation

Good morning, and welcome to the Local Bounties Third Quarter 2022 Earnings Conference Call. All participants will be in a listen-only mode. After today's presentation, there will be an opportunity to ask questions. Please also note, today's event is being recorded. At this time, I'd like to turn the conference call over to Jeff Sonick, Investor Relations at ICR. Please go ahead.

Thank you and good morning. Today's presentation will be hosted by Local Bounties co-CEOs Craig Hurlburt and Travis Joyner, President Brian Cook, and Chief Financial Officer Kathleen Valasek. 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. 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. 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 today. Please refer to the press release, which can be found on the Investor Relations website, investors.localbounty.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 Colbert, co-CEO.

Thank you, Jeff, and good morning, everyone. We produced a solid third quarter, which was consistent with our expectations. We achieved several milestones during the quarter, including shipping our first product out of our new Georgia facility, completing construction of our first stack zone in Georgia, and making important headway on our integration of PEATS to drive costs out of the business and protect our margin from the persistent inflationary forces. With that said, the big news is is the five-year offtake agreement with Sam's Club that we announced earlier this week. Consumers, retailers, and food service operators alike want a resilient supply chain of locally grown, fresh, and high-quality produce items, and Local Bounty will continue to deliver against that demand. We are thrilled with the engagement we are experiencing with our retail partners for our fresh, great tasting, locally grown produce, and the Sam's Club Agreement is an excellent example of the market's trust in the brands and products that have been developed by our team over several decades. We have been canvassing the market, sharing our progress, and received an unbelievable response at the recent IFPA event in Orlando. In fact, Local Bounty was recognized by a leading industry periodical, The Packer, as a top trend at this year's show. We are honored for their recognition of our team's hard work. In terms of our approach, we continue to focus first and foremost on our existing customer base. This remains one of our greatest advantages and is invaluable to informing our decisions on how we can most efficiently deploy our capital to meet known demand through scaling up our facility network. We remain diligent in our approach to maximizing capital efficiency to drive rapid revenue generation with a sharp eye on maintaining healthy gross margins so that we can reach break-even cash flow as quickly as possible. We have a great appreciation for the impact that the shifting macroeconomic environment is having on corporations globally, and we are keen to continue taking the steps necessary to drive our business in the most efficient way possible so that we can continue scaling up our network to unlock the attractive margin potential and cash flow generation that we believe is inherent in our business. Our co-CEO, Travis Joyner, will speak to how we are utilizing our growing technology to drive improving unit economics. And then our president, Brian Cook, will provide some further commentary around our commercial strategies, product development, and an update on our various construction projects before Kathy Valasek, our CFO, concludes with her financial review. With that, I'll pass it over to you, Travis.