Local Bounti Corporation (NYSE:LOCL) Q3 2022 Earnings Conference Call November 10, 2022 8:00 AM ET

Company Participants

Jeff Sonnek - Managing Director, ICR

Craig Hurlbert - Co-Chief Executive Officer

Travis Joyner - Co-Chief Executive Officer

Brian Cook - President

Kathleen Valiasek - Chief Financial Officer

Conference Call Participants

Ben Klieve - Lake Street Capital Markets

Colin Rusch - Oppenheimer

Brian Wright - ROTH Capital Partners

Christopher Barnes - Deutsche Bank

Pamela Kaufman - Morgan Stanley

Operator

Good morning, and welcome to the Local Bounti's 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 Sonnek, Investor Relations at ICR. Please go ahead.

Jeff Sonnek

Thank you, and good morning. Today's presentation will be hosted by Local Bounti's co-CEOs, Craig Hurlbert and Travis Joyner; President, Brian Cook; and Chief Financial Officer, Kathleen Valiasek.

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.localbounti.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 Hurlbert, Co-CEO.

Craig Hurlbert

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 Pete's to drive costs out of the business, and protect our margin from the persistent inflationary forces.

With that said, the big news is the five-year off-take 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 produced items and Local Bounti 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 produced 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.