Amyris delivers high-performance alternatives to petroleum, plant and animal-based products across a wide range of consumer and industry segments. Our products offer customers a way to reduce environmental impact with No Compromise® in performance or availability. We are making better chemistry biologically.

May 14, 2018

Amyris Continues Strong Momentum and Execution with 77% Revenue Growth and Exceeds Gross Margin Target

  • Q1 2018 GAAP revenue of $23.0 million, compared with GAAP revenue of $13.0 million for Q1 2017, representing 77% growth over first quarter of 2017.
  • Q1 2018 Non-GAAP gross margin of $19.0 million, or 83%, compared to negative $574,000, or negative 4%, for Q1 2017. Over $11 million of product related royalty payments for Q1 2018. 
  • Q1 2018 GAAP net loss attributable to common shareholders of $91.9 million, or $1.79 per basic and diluted share, compared with a net loss of $37.4 million, or $1.93 per basic and diluted share for Q1 2017. Of the Q1 2018 net loss attributable to common shareholders, $63.9 million, or $1.25 per share, was due to the impact of a non-cash loss from changes in the fair value of derivatives connected to outstanding debt and warrants.
  • Q1 2018 Non-GAAP net loss of $26.3 million, or $0.52 per basic and diluted share, compared with $38.2 million, or $1.97 per basic and diluted share for Q1 2017.

EMERYVILLE, Calif., May 14, 2018 (GLOBE NEWSWIRE) -- Amyris, Inc. (Nasdaq:AMRS), the industrial bioscience company, today announced preliminary unaudited financial results for the first quarter ended March 31, 2018.

“We continue to execute well on our business plan and to lead the industry in growing our top line revenue while significantly expanding our gross margin,” said John Melo, Amyris President & CEO. “We are on track for another record year and continue to perform extremely well in both our consumer and our ingredient businesses. Biossance, our Clean Beauty brand, grew at over 400% in the first quarter and we expect to continue performing well as one of the fastest growing skin care brands in the U.S., also available now in Brazil and Canada.”

Key Highlights

Other key recent operating and development highlights included:

  • Significant reduction in cost of products sold ($5.3 million for Q1 2018, compared with $12.8 million for same quarter a year ago) due to sale of Brotas 1 plant and ceasing production of farnesene for lower margin product applications.

  • Our product related royalty revenue (previously referred to as value share) delivered $11.4 million of 100% gross margin related revenue.
     
  • Successful launch of Biossance™ into SEPHORA’s Brasil market quickly becoming one of the top three skin care brands in Sephora Brasil.
     
  • Completed successful collaboration with Firmenich to develop and commercialize a disruptive bio-based fragrance ingredient.
     
  • Shipped new sweetener product to collaboration partner for distribution to its customers for sampling and formulation testing. Amyris expects to begin ramping commercial scale production of the sweetener in the August/September 2018 timeframe.
     
  • Successfully increased Chevron’s role as key strategic partner and shareholder of Novvi, our renewable lubricants joint venture company with leading technology for automotive base oils.

Financial Performance (preliminary unaudited)

First Quarter 2018

  • GAAP revenue for the first quarter of 2018 was $23.0 million, compared with $13.0 million for the first quarter of 2017. Licenses and royalties revenues contributed $11.4 million and were up from $255,000 for the first quarter of 2017. Product sales were $5.2 million for first-quarter 2018 compared with $8.0 million for the first quarter of 2017. The decline was attributable to the assignment of certain farnesene supply agreements to DSM and discontinuing low margin product sales, partially offset by continued strong Biossance growth and demand for the company’s Aprinnova joint venture’s skin care ingredients products. Grants and collaborations revenue was $6.4 million for the first quarter of 2018 compared with $4.7 million for the year-ago period.
     
  • Sales, general and administrative expenses were $18.8 million for first-quarter 2018 compared with $12.8 million for the first quarter of 2017, primarily reflecting faster than expected ramp-up and increased headcount, costs associated with a new employee bonus plan of approximately $2.0 million, professional services costs, and costs related to the Amyris Brasil Ltda. transaction. Research and development expenses of $18.8 million for the quarter were up from $14.8 million for first-quarter 2017 due to increased headcount, lab supplies and DARPA/DOE project reimbursable consulting fees. In addition, included in research and development expenses for Q1 2018 were initial development costs for some of the company’s newer products.
     
  • GAAP net loss attributable to Amyris common stockholders for the first quarter of 2018 was $91.9 million, or $1.79 per basic and diluted share, compared with a GAAP net loss attributable to Amyris common stockholders for first-quarter 2017 of $37.4 million, or $1.93 per basic and diluted share. The net loss calculation included a non-cash loss from changes in the fair value of derivatives of $63.9 million connected to outstanding debt and warrants.
     
  • Non-GAAP net loss for the first quarter of 2018 was $26.3 million, or $0.52 per basic and diluted share. This excluded loss from change in fair value of derivative instruments, stock-based compensation expense and cumulative dividends on preferred stock. This compared with a non-GAAP net loss of $38.2 million, or $1.97 per basic and diluted share for the first quarter of 2017.

FINANCIAL RESULTS AND NON-GAAP INFORMATION

To supplement our financial results and guidance presented on a GAAP basis, we use non-GAAP measures that we believe are helpful in understanding our results. These non-GAAP measures are among the factors management uses in planning and forecasting future periods. 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 to understand, manage, and evaluate our business and make operating decisions. Our non-GAAP financial measures include the following:

Non-GAAP net income/loss calculated as GAAP net income/loss excluding stock-based compensation expense, gain on divestitures, gains and losses from changes in the fair value of derivatives, debt extinguishment costs, depreciation, as well as tangible asset impairments.

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 income/net loss, 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: 4094206.

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 and services across a number of markets, including specialty and performance chemicals, flavors and fragrances, cosmetics ingredients, 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 fact could be deemed to be forward-looking statements. These forward-looking statements include, among other things, statements regarding future events, such as anticipated 2018 business performance, expected performance and growth of the Biossance skin care brand, and anticipated timing for commercial scale production of a new sweetener product, 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 risks related to Amyris's liquidity and ability to fund operating and capital expenses, potential delays or failures in development, production and commercialization of products, risks related to Amyris's reliance on third parties, and other risks detailed from time to time in filings Amyris makes with the Securities and Exchange Commission, including Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. 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, the Amyris logo, No Compromise, and Biossance are trademarks or registered trademarks of Amyris, Inc. in the U.S. and/or other countries. All other trademarks are the property of their respective owners.

Contact:

Peter DeNardo
Director, Investor Relations and Corporate Communications
Amyris, Inc.
+1 (510) 740-7481
investor@amyris.com
pr@amyris.com

-Financial Tables Attached-

 

Amyris, Inc.         
Condensed Consolidated Balance Sheets        
         
(In thousands) March 31,
2018
  December 31,
2017
 
         
Assets        
Current assets:        
Cash and cash equivalents $   24,084     $   57,059    
Restricted cash     2,454         2,994    
Accounts receivable, net     25,730         24,281    
Unbilled receivable     11,232         9,340    
Inventories     4,998         5,408    
Prepaid expenses and other current assets     7,340         5,525    
Total current assets     75,838         104,607    
Property, plant and equipment, net     12,880         13,892    
Unbilled receivable, noncurrent     5,955         7,940    
Restricted cash, noncurrent     959         959    
Recoverable taxes from Brazilian government entities     1,226         1,445    
Other assets     21,302         22,640    
Total assets $   118,160     $   151,483    
         
Liabilities, mezzanine equity and stockholders' deficit        
Current liabilities:        
Accounts payable     16,054         15,921    
Accrued and other current liabilities     26,622         29,402    
Deferred revenue     6,466         4,880    
Debt, current portion     34,252         36,924    
Related party debt, current portion     27,171         20,019    
Total current liabilities     110,565         107,146    
Long-term debt, net of current portion     62,489         61,893    
Related party debt, net of current portion     39,147         46,541    
Derivative liabilities     183,189         119,978    
Other noncurrent liabilities     8,981         10,632    
Total liabilities     404,371         346,190    
         
Mezzanine equity:        
Contingently redeemable common stock     5,000         5,000    
         
Amyris, Inc. stockholders’ deficit     (292,148 )       (200,644 )  
Noncontrolling interest     937         937    
Total stockholders' deficit     (291,211 )       (199,707 )  
Total liabilities, mezzanine equity and stockholders' deficit $   118,160     $   151,483    
         
         
         
Unaudited Financial Statements  
   


Amyris, Inc.         
Condensed Consolidated Statements of Operations        
  Three Months Ended
March 31,
 
(In thousands, except per share data)   2018       2017    
Revenue        
Renewable products (includes related party revenue of $151 and $0, respectively) $   5,195     $   8,037    
Licenses and royalties (includes related party revenue of $11,400 and $0, respectively) (1)     11,437         255    
Grants and collaborations (includes related party revenue of $1,390 and $0, respectively)     6,366         4,688    
Total revenue (includes related party revenue of $12,941 and $0, respectively)     22,998         12,980    
Cost and operating expenses        
Cost of products sold     5,315         12,768    
Research and development (2)     18,813         14,778    
Sales, general and administrative (2)     18,757         12,778    
Total cost and operating expenses     42,885         40,324    
Income (loss) from operations     (19,887 )       (27,344 )  
Other income (expense):        
Interest expense     (8,205 )       (12,184 )  
Gain (loss) from change in fair value of derivative instruments (3)     (63,913 )       2,339    
Gain (loss) upon extinguishment of debt     -         96    
Other income (expense), net     509         (319 )  
Total other expense     (71,609 )       (10,068 )  
Loss before income taxes     (91,496 )       (37,412 )  
Provision for income taxes     -         41    
Net loss attributable to Amyris, Inc.     (91,496 )       (37,371 )  
Less cumulative dividends on Series B preferred stock     (395 )       -    
Net loss attributable to Amyris, Inc. common stockholders $   (91,891 )   $   (37,371 )  
         
Net loss per share attributable to common stockholders, basic and diluted (4) $   (1.79 )   $   (1.93 )  
Weighted-average shares of common stock outstanding used in computing net loss per share of common stock, basic and diluted     51,200,922         19,335,948    
         
(1) Value share revenue has been reclassified to licenses and royalties revenue from renewable products revenue to better reflect the company’s current business model and to provide more transparency as that portion of overall revenue grows. Prior-year amounts have been reclassified to conform to this presentation.
         
(2) Includes stock-based compensation expense as follows:   2018       2017    
 Research and development  $   363     $   484    
 Sales, general and administrative     915         1,162    
  $   1,278     $   1,646    
         
(3) Upon remeasuring the fair value of its derivative liabilities, the Company recorded a non-cash loss for the three months ended March 31, 2018, and a non-cash gain for the three months ended March 31, 2017. Changes in the fair value of derivative liabilities are primarily the result of changes in Amyris's stock price during each of the periods presented. The gains and losses for all periods presented include the change in fair value of derivatives in connection with certain features of outstanding convertible notes, related to change in control protection and price-based anti-dilution adjustment provisions.
         
(4) The Company is reviewing its calculations of net loss per share for the three months ended March 31, 2018, which will be finalized in the 10-Q to be filed subsequent to this release.
         
Amyris, Inc.         
Reconciliation of GAAP to Non-GAAP Financial Information        
  Three Months Ended
March 31,
 
(In thousands, except per share data)   2018       2017    
Net loss attributable to Amyris, Inc. common stockholders (GAAP) $   (91,891 )   $   (37,371 )  
Non-GAAP adjustments:        
Stock-based compensation expense     1,278         1,646    
(Gain) loss from change in fair value of derivative instruments (2)     63,913         (2,339 )  
Loss upon extinguishment of debt     -         (96 )  
Cumulative dividends on Series B preferred stock     395         -    
Net income (loss) attributable to Amyris, Inc. common stockholders (non-GAAP) $    (26,305 )   $    (38,160 )  
         
Weighted-average shares outstanding        
Basic shares oustanding (GAAP)     51,200,922         19,335,948    
Impact of derivative instruments     (929,722 )       -    
Basic shares outstanding (non-GAAP)     50,271,200         19,335,948    
         
Net loss per share attributable to Amyris, Inc. common stockholders - Basic (GAAP) (3) $   (1.79 )   $   (1.93 )  
Non-GAAP adjustments:        
Stock-based compensation expense     0.02         0.09    
(Gain) loss from change in fair value of derivative instruments (2)     1.25         (0.12 )  
(Gain) loss upon extinguishment of debt   -       -    
Cumulative dividends on Series B preferred stock     0.01       -    
Effect of non-GAAP shares on basic earnings (loss) per share     (0.01 )       (0.01 )  
Net income (loss) per share attributable to Amyris, Inc. common stockholders - Basic (non-GAAP) $    (0.52 )   $    (1.97 )  
      -         -    
Unaudited Financial Statements  
   

 

 


       
Amyris, Inc.       
Reconciliation of GAAP to Non-GAAP Financial Information      
  Three Months Ended
March 31,
(In thousands)   2018       2017  
Revenue (GAAP and non-GAAP)      
Renewable products $   5,195     $   8,037  
Licenses and royalties     11,437         255  
Grants and collaborations     6,366         4,688  
Total revenue (GAAP and non-GAAP) $    22,998     $    12,980  
       
Cost of products sold (GAAP) $   5,315     $   12,768  
Other costs/provisions     (719 )       2,637  
Excess capacity     (505 )       (920 )
Depreciation and amortization     (92 )       (931 )
Cost of products sold (non-GAAP) $    3,999     $    13,554  
       
Adjusted gross profit (non-GAAP)(1) $    18,999     $    (574 )
Gross margin (%)   82.6 %     -4.4 %
       
Research and development expense (GAAP) $   18,813     $   14,778  
Stock-based compensation expense     (363 )       (484 )
Depreciation and amortization     (1,275 )       (1,601 )
Research and development expense (non-GAAP) $    17,175     $    12,693  
       
Sales, general and administrative expense (GAAP) $   18,757     $   12,778  
Stock-based compensation expense     (915 )       (1,162 )
Depreciation and amortization     (194 )       (208 )
Sales, general and administrative expense (non-GAAP) $    17,648     $    11,408  
       
(1) Non-GAAP Adjusted Gross Profit is calculated based on non-GAAP adjustments to cost of products sold, and does not include costs related to collaborations.
       
       
       
       
Unaudited Financial Information

 

 

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Source: Amyris, Inc.