Local Bounti Announces 3rd Quarter 2022 Financial Results.

HAMILTON, Mont: Local Bounti Corporation (NYSE: LOCL, LOCL WS) ("Local Bounti" or the "Company"), a breakthrough U.S. indoor agriculture company combining the best aspects of vertical and greenhouse growing technologies, today announced its third quarter 2022 results for the three months ended September 30, 2022 and reaffirmed its full year 2022 guidance.

Craig Hurlbert, Co-CEO of Local Bounti, stated, "We are thrilled with the engagement we are experiencing with our retail partners for our fresh, great tasting, locally grown produce. Our recent offtake agreement with Sam's Club is an excellent example of the market's trust in our team, as well as the brands and products that have been developed over several decades."

Mr. Hurlbert continued, "Consumers, retailers, and foodservice operators alike increasingly want a resilient supply chain of locally grown, fresh, and high-quality produce items and Local Bounti will continue to deliver on that demand. We are focused first and foremost on our existing customer base to inform our decisions on how we can most efficiently deploy our capital to meet known demand through scaling up our facility network. We remain vigilant in our approach to maximizing capital efficiency to drive revenue generation, with a sharp eye on maintaining healthy gross margins so we can reach breakeven cash flow as quickly as possible."

Third Quarter 2022 Financial Summary

Sales of $6.3 million in the third quarter of 2022, as compared to approximately $0.2 million in the prior year period. Quarterly revenue from the Company's California facilities was down slightly versus second quarter of 2022 due to an isolated delivery interruption with a logistics provider that has since been resolved. This was partially offset by revenue from the Company's Montana facility which increased 13% quarter over quarter, consistent with its pivot to an optimized mix of commercial production. Although the Georgia facility opened in the third quarter of 2022 and product is shipping out of the facility, third quarter operations were still in the commissioning phase to prepare for fulfilling Sam's Club demand. The Company expects to begin its initial shipments to Sam's Club this month, November 2022.

Gross profit was $1.3 million in the third quarter of 2022. Adjusted gross margin percentage1 was approximately 38%, excluding depreciation and stock-based compensation. Gross profit recovered in third quarter following temporary supply challenges...