On 22 Jan 2020, S&W Seed Company (NASDAQ: SANW) spotted trading -30.31% off 52-week high price. On the other end, the stock has been noted 16.75% away from the low price over the last 52-weeks. The stock changed -1.76% to recent value of $2.23. The stock transacted 1459 shares during most recent day however it has an average volume of 20.42K shares. The company has 33.29M of outstanding shares and 32.21M shares were floated in the market.
S&W Seed Company (SANW) recently reported financial results for the first quarter of fiscal 2020 ended September 30, 2019.
Core Revenue (not including product revenue attributable to Pioneer) for the first quarter of fiscal 2020 ended September 30, 2019 was $9.0M, contrast to Core Revenue for the first quarter of fiscal 2019 of $6.6M, representing a raise of 36%.Because of the recent contracts with Pioneer in May 2019, S&W discloses Core Revenue as a metric to track performance of its business on a go-forward basis. The increase in Core Revenue for the three months ended September 30, 2019 can be attributed to year over year growth in the Company’s alfalfa and sunflower operations, as well as $1.4M of revenue contribution from the Company’s sorghum operations which were purchased in October 2018.
Total revenue for the first quarter of fiscal 2020 was $12.3M, contrast to revenue of $26.1M in the first quarter of fiscal 2019. As reported in May 2019, S&W entered into a termination contract and an alfalfa license contract with Pioneer Hi-Bred International, a subsidiary of Corteva Agriscience, to replace its previous alfalfa distribution contract with Pioneer. Under the new contract, Pioneer paid $45.0M to S&W in May 2019 and $5.6M in September 2019, and S&W expects to receive an aggregate of $19.5M in quarterly payments through February 2021. For the first quarter of fiscal 2020, S&W recorded product revenue from Pioneer of $3.3M under the revised contract, which was a decrease of $16.2M from the three months ended September 30, 2018 amount of $19.5M.
Gross margins during the first quarter of fiscal 2020 were 25.1% contrast to gross margins of 20.9% in the first quarter of fiscal 2019. The improvement in gross margins is a result of planned initiatives to drive incremental value per pound in the Company’s alfalfa, sorghum and sunflower operations.
In the first quarter of fiscal 2020, adjusted operating expenses, not including transaction costs, (see Table A1), were $7.1M, contrast to $4.3M in the first quarter of fiscal 2019. The increase in adjusted operating expenses can be attributed to additional expenses from the newly purchased sorghum operations of Chromatin and additional investments in S&W’s sales and marketing and product development functions.
GAAP net loss for the first quarter of fiscal 2020 was $(4.9)M, or $(0.15) per basic and diluted share, contrast to GAAP net income of $20,931, or $0.00 per basic and diluted share, in the first quarter of fiscal 2019.
Adjusted non-GAAP net loss (see Table A1) for the first quarter of fiscal 2020 was $(4.5)M, or $(0.13) per basic and diluted share, which excluded various items including transaction costs, change in estimated value of assets held for sale, and interest expense – amortization of debt discount. Adjusted non-GAAP net income (see Table A1) for the first quarter of fiscal 2019, not including various items including transaction costs and interest expense – amortization of debt discount, was $0.5M, or $0.02 per basic and diluted share.
Adjusted EBITDA (see Table B) for the first quarter of fiscal 2020 was $(2.7)M, contrast to adjusted EBITDA of $2.1M in the first quarter of fiscal 2019.
Subsequent to the end of the quarter, the Company completed the sale of the land and buildings for one its research facilities located in Arlington, Wisconsin and one of its production storage facilities located in Plainview, Texas. The Company received combined net proceeds of $1.8M, of which $0.8M was used to pay-down its secured real estate note.
Its earnings per share (EPS) expected to touch remained -375.80% for this year while earning per share for the next 5-years is expected to reach at 15.00%. SANW has a gross margin of 40.00% and an operating margin of -10.30% while its profit margin remained -14.90% for the last 12 months. According to the most recent quarter its current ratio was 2.2 that represents company’s ability to meet its current financial obligations. The price moved ahead of 3.71% from the mean of 20 days, 0.19% from mean of 50 days SMA and performed -11.40% from mean of 200 days price. Company’s performance for the week was 4.69%, 0.45% for month and YTD performance remained 6.19%.