Local Bounti Corporation (NYSE:LOCL) Q3 2024 Earnings Conference Call November 14, 2024 8:00 AM ET

Company Participants

Jeff Sonnek - Investor Relations, ICR
Craig Hurlbert - Co-Founder and Chief Executive Officer
Kathleen Valiasek - President and Chief Financial Officer

Conference Call Participants

Kristen Owen - Oppenheimer & Co. Inc.
Benjamin Klieve - Lake Street Capital Markets

Operator

Good morning, and welcome to Local Bounti's Third Quarter 2024 Earnings Conference Call. All participants will be in a listen-only mode. After today's presentation, there will an opportunity to ask questions. Please note, today's event is being recorded.

At this time, I'd like to turn the 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 Chief Executive Officer, Craig Hurlbert; and President 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 our Investor Relations website investors.localbounti.com for reconciliations of non-GAAP financial measures to their most directly comparable GAAP measures.

And with that, I'd now like to turn the call over to Craig. Craig?

Craig Hurlbert

Thank you, Jeff, and good morning, everyone. In the third quarter, we delivered sales of $10.2 million, an increase of approximately 50% year-over-year. However, these results fell short of our expectations but this was for good reason, which I'll describe in a moment. With our expanded scale forwarded to us with the completion of our new facilities and growing customer reach, we've been particularly active with customer engagement to determine how we can work together to optimize our capacity to meet specific retailer demand.

During the third quarter, we made the strategic decision to reconfigure our growing plans to align with current customer preferences. More specifically, we are seeing heightened demand for our specialty products, such as Arugula and Spinach, among others, and are reworking our growing mix to meet this demand.