We lead the synthetic biology industry, having developed and successfully commercialized the most Lab-to-Market™ ingredients. Our sustainable ingredients are used in thousands of top global brands, including our own family of consumer brands in Clean Beauty and Health markets.
EMERYVILLE, Calif., Nov. 02, 2016 (GLOBE NEWSWIRE) -- Amyris, Inc. (Nasdaq:AMRS), the industrial bioscience company, today announced financial results for the third quarter ended September 30, 2016, and posted the highest quarterly revenue in the company's history since exiting ethanol sales and trading.
"We're encouraged by the solid momentum in our business, which led to record revenue for the third quarter," said John Melo, Amyris President & CEO. "We have continued to execute on our business plan to grow our business through collaborations and partnerships, including expansion into the pharmaceutical sector. Our industry leading platform helped us reach a tipping point in demand from some of the leading companies in our target sectors. The combination of the strong growth for our farnesene building block, the new collaborations we are signing and the record number of products in our portfolio that are reaching commercial scale help underpin a very strong fourth quarter and over $200 million of 2017 revenue that we believe is supported by our current business and the remaining collaborations we expect to close in the fourth quarter."
Key Highlights
Other key operating and development highlights during the third quarter and more recently included:
Financial Performance
Third Quarter 2016
Nine Months Ended September 30, 2016
FINANCIAL RESULTS AND NON-GAAP INFORMATION
Condensed consolidated financial information has been presented in accordance with GAAP as well as on a non-GAAP basis. Management believes that it is useful to supplement its GAAP financial statements with this non-GAAP information because management uses such information for its operating, budgeting and financial planning purposes. These non-GAAP financial measures also facilitate management's internal comparisons to Amyris's historical performance as well as comparisons to the operating results of other companies. Management believes these non-GAAP financial measures are useful to investors because they allow for greater transparency into the indicators used by management as a basis for its financial and operational decision-making.
Adjusted net loss is calculated by taking GAAP net loss and excluding stock-based compensation and gains and losses from changes in fair value of derivatives and debt extinguishment.
Non-GAAP revenue represents GAAP product revenue plus the cash received from collaborations. Non-GAAP revenue is calculated using GAAP revenues and adding the related changes in accounts receivable and deferred revenue related to revenue recognized for these collaborations and grants to equal funds received during the period, along with any funding associated with collaborations.
Non-GAAP financial information is not prepared under a comprehensive set of accounting rules and therefore, should only be read in conjunction with financial information reported under U.S. GAAP in order to understand Amyris's operating performance. A reconciliation of the non-GAAP financial measures presented in this release, including non-GAAP net loss, non-GAAP revenue, and other measures, to the most directly comparable GAAP financial measure is provided in the tables attached to this press release.
QUARTERLY CONFERENCE CALL TODAY
Amyris will discuss these results and provide a business update in a conference call scheduled for 4:30 p.m. ET (1:30 p.m. PT) today. Investors may access the call by dialing (866) 516-3867, participant passcode: 5584794.
A live audio webcast of this conference call and accompanying presentation is also available by visiting the investor relations section of the company's website at http://investors.amyris.com. A replay of the webcast will be available at the investor relations section of the company's website approximately two hours after the conclusion of the call.
About Amyris
Amyris is the integrated renewable products company that is enabling the world's leading brands to achieve sustainable growth. Amyris applies its innovative bioscience solutions to convert plant sugars into hydrocarbon molecules and produce specialty ingredients and consumer products. The company is delivering its No Compromise® products across a number of markets, including specialty and performance chemicals, flavors and fragrances, cosmetics ingredients, and pharmaceuticals and nutraceuticals. More information about the company is available at www.amyris.com.
Forward-Looking Statements
This release contains forward-looking statements, and any statements other than statements of historical facts could be deemed to be forward-looking statements. These forward-looking statements include, among other things, statements regarding future events (such as the anticipated consummation of a pending asset transaction, expected cash generation in Q4 2016, anticipated 2017 total revenue, the expected closing of collaborations in Q4 2016, expected 2019 incremental annual revenue resulting from Amyris's expansion to a second nutraceutical product, the anticipated timing for closing an unsecured $25 million credit facility, the expected completion of a definitive agreement for a collaboration with a leader in food ingredients and nutraceuticals, including the timing thereof and related collaboration payment and equity investment thereunder, as well as anticipated 2017 revenue resulting from such collaboration, the anticipated global availability expansion and production cost reduction of Amyris's farnesene (and resulting market opportunities) in connection with Amyris's agreement with the Department of Energy, the expected launch of Amyris's Biossance skin-care products in Sephora stores and introduction of such products into other new, large distribution channels, and the anticipated extension of the loans under our senior secured loan facility), that involve risks and uncertainties. These statements are based on management's current expectations and actual results and future events may differ materially due to risks and uncertainties, including Amyris's liquidity and ability to fund operating and capital expenses, timing and execution risks associated with manufacturing, uncertainty regarding consummating proposed transactions, including the timing thereof, and growth in sales, potential delays or failures in development, production and commercialization of products, Amyris's reliance on third parties to achieve its goals, and other risks detailed in the "Risk Factors" section of Amyris's quarterly report on Form 10-Q filed on August 9, 2016. Amyris disclaims any obligation to update information contained in these forward-looking statements whether as a result of new information, future events, or otherwise.
Amyris and the Amyris logo are registered trademarks of Amyris, Inc.
*The reference to record third-quarter revenue excludes historical quarters when the company had engaged in ethanol sales and trading.
-Financial Tables Attached-
Amyris, Inc. | ||||||||||||
Condensed Consolidated Balance Sheets | ||||||||||||
(In thousands) | ||||||||||||
September 30, | December 31, | |||||||||||
2016 | 2015 | |||||||||||
(Unaudited) | ||||||||||||
Assets | ||||||||||||
Current assets: | ||||||||||||
Cash, cash equivalents and short-term investments | $ | 2,295 | $ | 13,512 | ||||||||
Restricted cash | 279 | 216 | ||||||||||
Accounts receivable, net | 5,707 | 4,004 | ||||||||||
Related party accounts receivable | 651 | 1,176 | ||||||||||
Inventories, net | 7,899 | 10,886 | ||||||||||
Prepaid expenses and other current assets | 4,286 | 4,583 | ||||||||||
Total current assets | 21,117 | 34,377 | ||||||||||
Property, plant and equipment, net | 63,093 | 59,797 | ||||||||||
Restricted cash | 958 | 957 | ||||||||||
Equity and loans in affiliate | 34 | 68 | ||||||||||
Other assets | 13,657 | 10,357 | ||||||||||
Goodwill and intangible assets | 560 | 560 | ||||||||||
Total assets | $ | 99,419 | $ | 106,116 | ||||||||
Liabilities and stockholders' deficit | ||||||||||||
Current liabilities: | ||||||||||||
Accounts payable | $ | 13,756 | $ | 7,943 | ||||||||
Deferred revenue | 7,105 | 6,509 | ||||||||||
Accrued and other current liabilities | 34,912 | 24,268 | ||||||||||
Capital lease obligation, current portion | 942 | 523 | ||||||||||
Debt, current portion | 48,559 | 36,281 | ||||||||||
Related party debt | 26,457 | - | ||||||||||
Total current liabilities | 131,731 | 75,524 | ||||||||||
Capital lease obligation, net of current portion | 56 | 176 | ||||||||||
Long-term debt, net of current portion | 63,615 | 72,826 | ||||||||||
Related party debt | 37,000 | 42,867 | ||||||||||
Deferred rent, net of current portion | 9,123 | 9,682 | ||||||||||
Deferred revenue, net of current portion | 4,469 | 4,469 | ||||||||||
Derivative liabilities | 6,711 | 51,439 | ||||||||||
Other liabilities | 4,212 | 7,589 | ||||||||||
Total liabilities | 256,917 | 264,572 | ||||||||||
Mezzanine equity: | 5,000 | - | ||||||||||
Contingently redeemable common stock | ||||||||||||
Amyris, Inc. stockholders' deficit | (162,384 | ) | (158,065 | ) | ||||||||
Noncontrolling interest | (114 | ) | (391 | ) | ||||||||
Total stockholders' deficit | (162,498 | ) | (158,456 | ) | ||||||||
Total liabilities and stockholders' deficit | $ | 99,419 | $ | 106,116 | ||||||||
Amyris, Inc. | ||||||||||||||||||||
Condensed Consolidated Statement of Operations | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
(In thousands, except per share data) | ||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||
September 30, 2016 |
September 30, 2015 |
September 30, 2016 |
September 30, 2015 |
|||||||||||||||||
Revenues | ||||||||||||||||||||
Renewable product sales | $ | 5,430 | $ | 4,226 | $ | 13,493 | $ | 9,661 | ||||||||||||
Related party renewable product sales | 1,390 | 2 | 1,390 | 2 | ||||||||||||||||
Total product sales | 6,820 | 4,228 | 14,883 | 9,663 | ||||||||||||||||
Grants and collaborations revenue | 19,724 | 4,363 | 30,071 | 14,643 | ||||||||||||||||
Total revenues | 26,544 | 8,591 | 44,954 | 24,306 | ||||||||||||||||
Costs and operating expenses | ||||||||||||||||||||
Cost of products sold | 14,876 | 8,455 | 33,945 | 26,057 | ||||||||||||||||
Loss on purchase commitments and impairment of property, | - | |||||||||||||||||||
plant and equipment | - | 7,259 | - | 7,259 | ||||||||||||||||
Research and development (1) | 12,315 | 10,343 | 37,397 | 33,521 | ||||||||||||||||
Sales, general and administrative (1) | 11,381 | 14,103 | 35,055 | 42,859 | ||||||||||||||||
Total costs and operating expenses | 38,572 | 40,160 | 106,397 | 109,696 | ||||||||||||||||
Loss from operations | (12,028 | ) | (31,569 | ) | (61,443 | ) | (85,390 | ) | ||||||||||||
Other income (expense): | ||||||||||||||||||||
Gain (loss) from change in fair value of derivatives (2) | (786 | ) | (21,690 | ) | 41,826 | (10,268 | ) | |||||||||||||
Loss on extinguishment of debt (2) | (217 | ) | (5,984 | ) | (866 | ) | (5,984 | ) | ||||||||||||
Other income (expense), net (3) | (6,525 | ) | (16,666 | ) | (27,694 | ) | (72,026 | ) | ||||||||||||
Total other income (expense) | (7,528 | ) | (44,340 | ) | 13,266 | (88,278 | ) | |||||||||||||
Loss before income taxes and loss from investments in affiliates | (19,556 | ) | (75,909 | ) | (48,177 | ) | (173,668 | ) | ||||||||||||
Provision for income taxes | (148 | ) | (119 | ) | (402 | ) | (355 | ) | ||||||||||||
Net loss before loss from investments in affiliates | (19,704 | ) | (76,028 | ) | (48,579 | ) | (174,023 | ) | ||||||||||||
Loss from investments in affiliates | - | (660 | ) | - | (2,089 | ) | ||||||||||||||
Net loss | $ | (19,704 | ) | $ | (76,688 | ) | $ | (48,579 | ) | $ | (176,112 | ) | ||||||||
Net loss attributable to noncontrolling interest | - | 24 | - | 78 | ||||||||||||||||
Net loss attributable to Amyris, Inc. common stockholders | $ | (19,704 | ) | $ | (76,664 | ) | $ | (48,579 | ) | $ | (176,034 | ) | ||||||||
Net loss per share attributable to common stockholders, basic | $ | (0.08 | ) | $ | (0.55 | ) | $ | (0.21 | ) | $ | (1.76 | ) | ||||||||
Net loss per share attributable to common stockholders, diluted | $ | (0.08 | ) | $ | (0.55 | ) | $ | (0.28 | ) | $ | (1.76 | ) | ||||||||
Weighted-average shares of common stock outstanding used in | ||||||||||||||||||||
computing net loss per share of common stock: | ||||||||||||||||||||
Basic | 249,190,339 | 140,374,297 | 226,772,159 | 100,103,007 | ||||||||||||||||
Diluted (4) | 249,190,339 | 140,374,297 | 268,375,111 | 100,103,007 | ||||||||||||||||
(1 | ) | Includes stock-based compensation expense of the following for the periods presented: | ||||||||||||||||||
Research and development | $ | 481 | $ | 530 | $ | 1,457 | $ | 1,776 | ||||||||||||
Sales, general and administrative | 1,327 | 1,726 | 4,191 | 5,188 | ||||||||||||||||
$ | 1,808 | $ | 2,256 | $ | 5,648 | $ | 6,964 | |||||||||||||
(2 | ) | For the third quarter of 2016 and 2015, the Company recorded a non-cash loss from revaluation of its derivative liabilities, which was triggered by certain features of outstanding convertible notes (related to change in control protection and price-based anti-dilution adjustment provisions). The valuation of these derivative liabilities increased in the third quarter of 2016 and 2015 primarily as a result of an increase in Amyris's stock price since June 30, 2016 and 2015, respectively. | ||||||||||||||||||
(3 | ) | Other income (expense), net for the nine months of 2015 includes $36.6 million charge related to the acceleration of debt discount accretion associated with a debt conversion transaction. | ||||||||||||||||||
Amyris, Inc. | ||||||||||||||||||||
Reconciliation of GAAP to Non-GAAP Financial Information | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
(In thousands, except per share data) | ||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||
September 30, 2016 |
September 30, 2015 |
September 30, 2016 |
September 30, 2015 |
|||||||||||||||||
Net loss attributable to Amyris, Inc. common stockholders (GAAP) | $ | (19,704 | ) | $ | (76,664 | ) | $ | (48,579 | ) | $ | (176,034 | ) | ||||||||
Loss on purchase commitments and impairment of | ||||||||||||||||||||
property, plant, and equipment | - | 7,259 | - | 7,259 | ||||||||||||||||
Stock-based compensation expense | 1,808 | 2,256 | 5,648 | 6,964 | ||||||||||||||||
Issuance of warrants with collaboration agreement | 416 | - | 416 | - | ||||||||||||||||
Gain from change fair in value of derivative & debt extinguishment | 1,003 | 27,674 | (40,960 | ) | 16,252 | |||||||||||||||
Acceleration of debt discount accretion associated with the debt | ||||||||||||||||||||
conversion transaction | - | 7,147 | - | 43,717 | ||||||||||||||||
Net loss attributable to Amyris, Inc. common stockholders (Non-GAAP) | $ | (16,477 | ) | $ | (32,328 | ) | $ | (83,475 | ) | $ | (101,842 | ) | ||||||||
Net loss per share attributable to Amyris, Inc. common stockholders, | ||||||||||||||||||||
basic (GAAP) | $ | (0.08 | ) | $ | (0.55 | ) | $ | (0.21 | ) | $ | (1.76 | ) | ||||||||
Loss on purchase commitments and impairment of | ||||||||||||||||||||
property, plant, and equipment | - | 0.05 | - | 0.07 | ||||||||||||||||
Stock-based compensation expense | 0.01 | 0.02 | 0.02 | 0.07 | ||||||||||||||||
Issuance of warrants with collaboration agreement | 0.00 | - | 0.00 | - | ||||||||||||||||
Gain (loss) from change fair in value of derivative & debt extinguishment | 0.00 | 0.20 | (0.18 | ) | 0.16 | |||||||||||||||
Acceleration of debt discount accretion associated with the debt | ||||||||||||||||||||
conversion transaction | - | 0.05 | - | 0.44 | ||||||||||||||||
Net loss per share attributable to Amyris, Inc. common stockholders, | ||||||||||||||||||||
(Non-GAAP) | $ | (0.07 | ) | $ | (0.23 | ) | $ | (0.37 | ) | $ | (1.02 | ) | ||||||||
Amyris, Inc. | |||||||||||||||||||||
Reconciliation of GAAP to Non-GAAP Financial Information | |||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||
September 30, 2016 |
September 30, 2015 |
September 30, 2016 |
September 30, 2015 |
||||||||||||||||||
Product sales (GAAP & Non-GAAP) | |||||||||||||||||||||
Renewables | $ | 6,820 | $ | 4,228 | $ | 14,883 | $ | 9,663 | |||||||||||||
Product sales (GAAP & Non-GAAP) | $ | 6,820 | $ | 4,228 | $ | 14,883 | $ | 9,663 | |||||||||||||
Grants and collaborations revenue (GAAP) | $ | 19,724 | $ | 4,363 | $ | 30,071 | $ | 14,643 | |||||||||||||
Change in accounts receivable, deferred revenue and fundings associated | |||||||||||||||||||||
with collaborations | (1,515 | ) | (2,763 | ) | (2,251 | ) | 17,002 | ||||||||||||||
Collaborations Inflows (Non- GAAP) (1) | $ | 18,209 | $ | 1,600 | $ | 27,820 | $ | 31,645 | |||||||||||||
Total Revenues (GAAP) | $ | 26,544 | $ | 8,591 | $ | 44,954 | $ | 24,306 | |||||||||||||
Change in accounts receivable, deferred revenue and fundings associated | |||||||||||||||||||||
with collaborations | (1,515 | ) | (2,763 | ) | (2,251 | ) | 17,002 | ||||||||||||||
Total Cash Revenue Inflows (Non-GAAP) (1) | $ | 25,029 | $ | 5,828 | $ | 42,703 | $ | 41,308 | |||||||||||||
Costs of products sold (GAAP) | $ | 14,876 | $ | 8,455 | $ | 33,945 | $ | 26,057 | |||||||||||||
Other costs/provisions | (3,240 | ) | 1,808 | (5,135 | ) | 221 | |||||||||||||||
Excess capacity | (304 | ) | (1,895 | ) | (4,481 | ) | (7,069 | ) | |||||||||||||
Depreciation and amortization | (986 | ) | (1,029 | ) | (2,715 | ) | (3,431 | ) | |||||||||||||
Costs of products sold (Non- GAAP) | $ | 10,346 | $ | 7,339 | $ | 21,614 | $ | 15,778 | |||||||||||||
Adjusted Gross Profit (Non- GAAP) (2) | $ | 16,198 | $ | 1,252 | $ | 23,340 | $ | 8,528 | |||||||||||||
Gross Margin (%) (2) | 61.0 | % | 14.6 | % | 51.9 | % | 35.1 | % | |||||||||||||
Research and development (GAAP) | $ | 12,315 | $ | 10,343 | $ | 37,397 | $ | 33,521 | |||||||||||||
Stock-based compensation expense | (481 | ) | (530 | ) | (1,457 | ) | (1,776 | ) | |||||||||||||
Issuance of warrants with collaboration agreement | (416 | ) | - | (416 | ) | - | |||||||||||||||
Depreciation and amortization | (1,607 | ) | (1,775 | ) | (5,085 | ) | (5,507 | ) | |||||||||||||
Research and development (Non-GAAP) | $ | 9,811 | $ | 8,038 | $ | 30,439 | $ | 26,238 | |||||||||||||
Sales, general and administrative (GAAP) | $ | 11,381 | $ | 14,103 | $ | 35,055 | $ | 42,859 | |||||||||||||
Stock-based compensation expense | (1,327 | ) | (1,726 | ) | (4,191 | ) | (5,188 | ) | |||||||||||||
Depreciation and amortization | (274 | ) | (314 | ) | (839 | ) | (1,071 | ) | |||||||||||||
Sales, general and administrative (Non-GAAP) | $ | 9,780 | $ | 12,063 | $ | 30,025 | $ | 36,600 | |||||||||||||
(1 | ) | The largest differences between the GAAP and non-GAAP collaborations numbers are (i) timing of revenue recognition. The nine months ended September 30, 2016 and 2015, includes zero and $10.8 million, respectively, of funding from TOTAL which is in the form of convertible debt financing as contemplated in the July 2012 Amended Collaboration Agreement with TOTAL 2015. |
|||||||||||||||||||
Non-GAAP Gross Profit /(Loss) is calculated based on non-GAAP Product Sales & Grants and Collaboration Inflows and Cost of Products Sold, and does not include costs related to collaborations. | |||||||||||||||||||||
(2 | ) | ||||||||||||||||||||
For media inquiries, please contact: info@amyris.com
For investor inquiries, please contact: investor@amyris.com