Discover the latest news from AppHarvest, a high-tech, controlled environment agriculture company. AppHarvest is a publicly-traded company under the ticker symbol ” APPH.”
AppHarvest Q1 2023: Performance Improvements But Concerns Rise Regarding Its Liquidity
AppHarvest Inc. (APPH Stock) has reported robust financial results for the first quarter of 2023. The company’s net sales surged to $13.0 million in Q1 2023, a significant jump from $5.2 million reported in the first quarter of 2022, marking a staggering increase of over 250%. The revenue also represents nearly 90% of the company’s net sales for the entire fiscal year of 2022. Despite the remarkable revenue growth, the company posted a net loss of $33.6 million and a non-GAAP Adjusted EBITDA loss of $23.2 million in Q1 2023, which aligned with expectations. These figures compare to a net loss of $30.6 million and a non-GAAP Adjusted EBITDA loss of $18.0 million in Q1 2022.
AppHarvest Discloses Doubts To Continue As A Going Concern (2023/03/16)
AppHarvest, a high-tech controlled environment agriculture (CEA) company, has indicated in an SEC filing significant doubts about its ability to continue operating due to sustained operational losses and negative cash flows since its inception. The company’s ongoing plans, including planting and harvesting activities, are projected to continue yielding losses and generating negative cash flows. The capital-intensive nature of the CEA business, coupled with AppHarvest’s plans to construct future CEA facilities and the corresponding debt service requirements, is projected to impact liquidity significantly. Moreover, the company expects considerable expenditure to complete ongoing facility construction, technology development, and skilled labor acquisition and retention. Consequently, AppHarvest acknowledges the need for additional funding to maintain operations, meet upcoming obligations, and continue constructing and launching new CEA facilities.
4th Quarter Results: Misses Consensus (2023/03/10)
AppHarvest, Inc. has announced its Q4 2022 and full-year financial and operating results, showing missed earnings but an increase in sales and a quadrupling of its farm network. The company reported Q4 net sales of $4.5 million, a 45% increase from Q4 2021, and full-year net sales of $14.6 million, representing a year-over-year increase of 60%. However, the company saw a net loss of $93.3 million and a non-GAAP Adjusted EBITDA loss of $24.1 million for the fourth quarter, compared to a net loss of $88.4 million and a non-GAAP Adjusted EBITDA loss of $18.3 million in the prior year. The full-year 2022 non-GAAP Adjusted EBITDA loss was within its revised guidance range. The company, which increased its farm network four-fold and grew nearly 1.5 million tomato plants in 2022, expects to triple its net sales in 2023. AppHarvest secured $50 million in USDA-guaranteed loans and completed a $127 million sale-leaseback of its Berea, Kentucky, indoor salad greens facility for non-dilutive financing in 2022. With these results, AppHarvest is concentrating on optimizing operations under Project New Leaf, its strategic program focusing on profitability.
Closes Public Offering Of Its Common Stock, Raises $46M (2023/02/28)
AppHarvest, Inc., completed an underwritten public offering of 46,000,000 shares of its common stock at $1.00 per share. An additional option for underwriters to purchase 6,000,000 shares was also included. This offering resulted in aggregate gross proceeds of $46 million, which will be used for working capital and general corporate purposes. Cowen and Company, LLC acted as the sole book-running manager, while Roth Capital Partners, LLC served as the co-manager for this offering. As a public benefit corporation, AppHarvest is legally obligated to consider the interests of all stakeholders, including the environment, its employees, the communities it serves, and its shareholders.
AppHarvest Ships First Tomatoes From Richmond Facility (2023/01/19)
AppHarvest shipped its first tomatoes at its new 60-acre high-tech indoor farm in Richmond, Kentucky. This marks the first time all facilities in the AppHarvest four-farm network are shipping to top national grocery store chains, restaurants, and food service outlets under various brands for Mastronardi Produce.
AppHarvest Appoints Tony Martin As COO (2023/01/03)
AppHarvest (AppHarvest Stock: APPH) has announced that Tony Martin has been named its chief operating officer. Martin will retain his board seat and be responsible for optimizing production and revenue across AppHarvest’s four-farm network, which now consists of 165 acres of controlled environment agriculture (CEA). Martin previously worked for Windset Farms, one of the largest CEA producers in North America, and has served as a consultant in the CEA sector.
AppHarvest Completes a $127M Sale-Leaseback With Mastronardi Produce (2022/12/27)
AppHarvest has completed the sale-leaseback of its indoor leafy greens farm in Berea, Kentucky, for a little over $127 million. The business also just constructed a 60-acre high-tech indoor farm in Richmond, Kentucky. A portion of the money raised will go toward paying down the $30 million bridge loan.
AppHarvest Initiates Shipment of Tomato From Its Latest Facility (2022/11/23)
AppHarvest (AppHarvest Stock: APPH) started the third season of harvesting from its 60-acre indoor farm in Morehead, Kentucky. These products are being distributed to national grocery stores, restaurants, and food services through its distributor, Mastronardi Produce. AppHarvest is also developing a fourth 60-acre farm in Richmond, Kentucky, to begin harvesting in January 2023. According to CEO Jonathan Webb, the experience from two seasons of harvests has resulted in improved quality and yield.
AppHarvest Announce Q3 Results Beating EPS Estimation Despite Disruptions (2022/11/08)
The Morehead company’s financial report for Q3 2022 shows net sales of $524,000 from selling 0.75 million pounds of tomatoes for 70 cents per pound. This result, while slightly lower than the Q3 2021 sales of $543,000 generated from selling 1.5 million pounds of tomatoes at 37 cents per pound, reflects an increase in the price per pound of tomatoes, offset by a reduction in yield due to plant health issues disclosed earlier. Historically, Q3 has been the company’s weakest period due to the annual summer refresh for replanting at the Morehead farm. The rapid expansion to four farms led to a net loss of $24.0 million and a non-GAAP Adjusted EBITDA loss of $12.0 million, compared to the prior year’s Q3 net loss of $17.3 million and a non-GAAP Adjusted EBITDA loss of $16.5 million.
Opens Its 30-Acre Somerset, Ky. Facility To Grow Strawberries & Cucumbers (2022/11/04)
AppHarvest, a controlled environment agriculture (CEA) company, announced the opening of its 30-acre high-tech indoor farm in Somerset, Kentucky, designed for growing strawberries and cucumbers. The facility is equipped with automation for lighting, humidity, and temperature and utilizes a closed-loop irrigation system for efficient water usage. It also features a blast chiller to extend the shelf life of harvested strawberries. The company, located within a day’s drive of about 70% of the U.S. population, is now shipping strawberries and expects to begin alternating seasonally with English cucumbers. With this addition, AppHarvest operates three farms, with the fourth, a 60-acre tomato farm in Richmond, expected to commence planting in November. As part of its expansion, the company has strengthened its board with industry veterans Tony Martin and Hollie P. Harris while David Lee transitions from president to board member.
Hollie Phillips Joins The Board of Directors (2022/11/03)
AppHarvest, Inc. (AppHarvest Stock: APPH, APPHW), announced the appointment of Appalachian Regional Healthcare (ARH) president and CEO Hollie Harris Phillips as an independent director of the company and a member of the audit committee, effective immediately.
Opens Its Berea, Ky., Facility & Announced a USD 30M Loan From Mastronardi Produce (2022/10/27)
The company opened its Berea, Ky., 15-acre high-tech indoor salad greens farm featuring a touchless growing system with autonomous harvesting. It announced a USD 30M loan from marketing partner Mastronardi Produce secured by the AppHarvest (AppHarvest Stock: APPH) Berea farm. Consistent with its strategy to secure attractive long-term financing for its assets, AppHarvest also intends to pursue sale-leaseback financing for its Berea farm. The secured financing is being delivered in two tranches of USD 15 million each, the first of which occurred on Oct. 25, and the second is anticipated four weeks later. The loan will incur an interest rate of 7.5%, with interest paid in kind until the loan matures.
Greater Commercial Lending Completes Its USD 50M in Financing for AppHarvest (2022/10/26)
Greater Commercial Lending (GCL) has completed around $50 million in financing for AppHarvest’s high-tech berry farm in Somerset, Kentucky, with these loans guaranteed by the U.S. Department of Agriculture (USDA). The farm, expected to be operational by year-end, will use an eco-friendly approach, utilizing sunshine, rainwater, and 90% less water than conventional farming, producing up to 30 times traditional agriculture’s yields. Most of the financing is guaranteed by the USDA’s Business and Industry Rural Development Program and Rural Energy America Program (REAP), featuring contributions from the Greater Nevada Credit Union, Community Bank, and Trust of Georgia. The funding enables AppHarvest to scale its operations, with plans to bring the Somerset farm and two additional controlled environment agriculture facilities online by year-end. The project is anticipated to generate approximately 142 jobs.
AppHarvest Appoints CEA Veteran Tony Martin (2022/10/21)
Completes Calibration of Autonomous Harvest System & Provides Facility Updates (2022/09/20)
AppHarvest, Inc. (Appharvest stock: APPH, APPHW) announced it had completed the calibration of its “touchless growing system” for salad greens at its 15-acre Berea, Ky., indoor farm by having successfully grown more than 20 varieties of lettuce and is approximately 80% complete with the planting of its 30-acre AppHarvest Somerset Farm, which has the capacity to grow about 1 million strawberry plants. The company’s 60-acre flagship farm in Morehead, Ky., is expected to start harvesting its third season of tomatoes mid-fourth quarter.
AppHarvest Q2 Beats GAAP EPS, Misses on Revenue (2022/08/04)
AppHarvest reported Q2 2022 net sales of $4.4 million on 6.0 million pounds of tomatoes sold, reflecting a 39% YoY increase, although it fell short of estimates by $1.74 million. The company secured a $50 million USDA-backed loan during Q2, marking one of the most substantial supports ever for controlled environment agriculture (CEA). Despite recent flooding in Eastern Kentucky, the company’s facilities remained undamaged. However, AppHarvest now anticipates reaching the lower end of its guidance range, adjusting its full-year 2022 net sales forecast to between $20 and $25 million. Following these updates, the company’s share price dropped by $0.37 (-9.18%) in pre-market trading. AppHarvest continues progressing with Mastronardi Produce Ltd. regarding a potential FarmCo joint venture that could expand its national footprint and bolster network scale.
$50 Million in Funding For Somerset Farm (2022/08/01)
AppHarvest (AppHarvest Stock: APPH) secured $50 million through two loans guaranteed by the United States Department of Agriculture (USDA). The financing, organized by Greater Commercial Lending (GCL), a Greater Nevada Credit Union subsidiary, is targeted at AppHarvest’s high-tech indoor berry farm in Somerset, Kentucky, which is expected to be operational by year’s end. The funding will assist in expanding operations, bringing the Somerset farm and two other controlled environment agriculture facilities online, significantly diversifying AppHarvest’s product offerings. The USDA guarantees 80% of the financing, with each loan having a 23-year term and a rate that resets every five years. The funds will be utilized to settle an existing $46 million loan with J.P. Morgan, used partially to fund the initial construction phase of the Somerset farm.
AppHarvest Announces Fourth and Fifth High-Tech Indoor Farms (2022/06/29)
AppHarvest (AppHarvest Stock: APPH) has commenced the construction of two new high-tech indoor farms in Somerset and Morehead, Kentucky, aiming to grow berries and leafy greens, respectively. The 30-acre Somerset facility marks the company’s entry into berry farming, while the Morehead farm is the second in Rowan County and will produce leafy greens over 15 acres. These developments come on the heels of AppHarvest’s 2.76-million-square-foot tomato-growing facility in Morehead, a 15-acre leafy green farm in Berea, and a 60-acre vine crop farm in Richmond. The Somerset and Morehead facilities, expected to be operational by the end of 2022, will grow non-GMO, pesticide-free fruits, and vegetables for top U.S. grocers and restaurants. This expansion aligns with AppHarvest’s aim to operate 12 high-tech indoor farms by 2025, providing hundreds of jobs and reinforcing Kentucky’s position as a leader in the AgriTech industry.
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