HAMILTON, Mont. - Local Bounti Corporation (NYSE: LOCL), an innovator in U.S. indoor agriculture, has announced the promotion of Kathleen Valiasek to President and Chief Financial Officer (CFO), effective June 24. Valiasek, who joined the company as CFO in April 2021, will now oversee operations, innovation, commercial and marketing activities, in addition to her ongoing financial leadership.
CEO Craig Hurlbert expressed that Valiasek's promotion is a recognition of her significant contributions to the company, particularly in operational efficiencies and financial strategies that are expected to steer Local Bounti toward its objective of achieving positive adjusted EBITDA early in 2025. Adjusted EBITDA is a non-GAAP financial measure that excludes certain non-core items, which the company believes provides a clearer picture of its financial health.
Valiasek's experience spans various industries, with previous roles including CFO and Chief Business Officer at Amyris (OTC:AMRSQ), and CEO of Lenox Group, Inc., her own finance and strategic consulting firm. She has worked with a range of companies, from startups to Fortune 500 entities, and holds a B.B.A. from the University of Massachusetts at Amherst.
Local Bounti's patented Stack & Flow Technology® aims to optimize indoor farming by increasing crop yields and improving unit economics. The company operates across the United States, servicing around 13,000 retail doors with its sustainably grown produce. Local Bounti emphasizes that its methods use significantly less land and water compared to traditional farming.
This leadership change comes as Local Bounti continues to expand and integrate its operations, focusing on growth and sustainability in the competitive natural food market. The company's forward-looking statements indicate plans for future capital acquisition and expansion, although they caution that these are subject to various risks and uncertainties.
The information reported is based on a press release statement from Local Bounti Corporation.
In other recent news, Local Bounti Corporation has been making significant strides in its operations and strategic growth initiatives. The company has received approval from the New York Stock Exchange (NYSE) for a plan to address noncompliance with the exchange's listing standards, granting Local Bounti 18 months to meet the required standards. The NYSE will review the company's progress quarterly, with the potential for delisting proceedings if the standards are not met within the given timeframe.
In terms of financial performance, Local Bounti reported a 25% increase in sales in Q1 2024, reaching $8.4 million. This growth is largely attributed to the company's patented Stack & Flow Technology, which led to a 10% yield increase in its Georgia facility. Additionally, new facilities in Washington and Texas are set to commence shipping in the second quarter.
Local Bounti has also secured partnerships with Albertsons (NYSE:ACI) and Brookshire's, contributing to the expansion of its distribution network. For the full year of 2024, the company estimates revenues to be between $50 million and $60 million, with a prediction of sequential revenue growth from Q1 to Q2. The company is also optimistic about achieving a positive adjusted EBITDA by early 2025. These recent developments underline Local Bounti's operational progress and strategic growth initiatives.
InvestingPro Insights
In the wake of Local Bounti Corporation's leadership restructuring, with Kathleen Valiasek stepping into a dual role as President and CFO, the company's financial health remains a focal point for investors and industry observers alike. According to recent data from InvestingPro, Local Bounti is grappling with a significant debt load, which is underscored by a P/E ratio of -0.18 and an adjusted P/E ratio for the last twelve months as of Q1 2024 at -0.23. This suggests that the company's earnings are currently negative, which aligns with the InvestingPro Tips that highlight concerns over the company's ability to service its debt and the analysts' projections that Local Bounti may not achieve profitability this year.
On a positive note, analysts anticipate sales growth for Local Bounti, with a reported revenue growth of 12.95% over the last twelve months as of Q1 2024. This aligns with the company's strategy to increase operational efficiencies and expand its reach in the U.S. indoor agriculture market. However, the company's gross profit margin stands at 9.31%, indicating that despite growing revenues, profitability remains a challenge. This is further supported by the InvestingPro Tips which point to weak gross profit margins and a valuation that implies a poor free cash flow yield.
Investors tracking Local Bounti's stock performance will take note of the significant return over the last week, with a 9.23% price total return, and a larger uptick over the last six months at 39.22%. Despite these short-term gains, the company's stock price performance has been volatile and has seen a notable decline over the past decade. For those considering an investment in Local Bounti, the InvestingPro Tips offer additional insights, with a total of 16 tips available, providing a comprehensive analysis of the company's financial position and market performance.
For readers interested in a deeper dive into Local Bounti's financial metrics and to access the full suite of InvestingPro Tips, visit https://www.investing.com/pro/LOCL. Remember to use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, offering valuable insights that can inform investment decisions in the dynamic field of indoor agriculture.
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