Amyris
Mar 2, 2017

Amyris More Than Doubles Revenues Over 2015 And Provides Strong Growth Outlook

EMERYVILLE, Calif., March 02, 2017 (GLOBE NEWSWIRE) -- Amyris, Inc. (Nasdaq:AMRS), the industrial bioscience company, today announced financial results for the fourth quarter and fiscal year ended December 31, 2016.

"We are pleased to have completed a record year by more than doubling revenues over 2015, signing on a record level of new global partners and delivering on all of our 2016 strategic milestones," said John Melo, Amyris President & CEO. "With the completion of our portfolio shift to Health and Nutrition and Personal Care and away from Fuel sales we believe we are delivering industry leading growth and positive impact for our customers."

Continued Melo, "We enter 2017 as a leading company in our sector with the most robust technology platform available to develop, scale and produce the products our customers need to help them gain competitive advantage while supporting the health needs of our planet. We are industrializing synthetic biology and delivering highly disruptive technology through our advantaged collaboration and value share business model."

Growth Outlook

Based on the company's strong competitive position, currently contracted business and pipeline, Amyris believes this will lead to more than doubling product revenues in 2017 while maintaining our strong performance in collaborations.  Amyris will provide more details on its strategy and business plan during its quarterly conference call today at 4:30 p.m. ET (1:30 p.m. PT).

*The references to record revenue and product sales in this news release excludes historical periods when the company had engaged in ethanol sales and trading.

Key Highlights

Other key operating and development highlights during the fourth quarter and more recently included:

Financial Performance

Fourth Quarter 2016

Fiscal Year 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, debt extinguishment, as well as tangible and non-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 loss, 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: 64316211.

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, 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 Amyris's expected growth rate and outlook, the anticipated more than doubling of its product revenues in 2017 and maintaining its level of performance in collaborations, the expected growth of its cosmetics joint venture, the anticipated growth and expanded distribution of its Biossance skin-care products and its expected commercial expansion as well as improved operating metrics, balance sheet and financial position), 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, 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, risks related to 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 November 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, the Amyris logo, Biossance, and Biofene are registered trademarks of Amyris, Inc.

Amyris, Inc.      
Condensed Consolidated Balance Sheets     
(In thousands)     
         
     December 31, December 31, 
      2016   2015  
     (Unaudited)   
Assets      
Current assets:     
 Cash, cash equivalents and short-term investments $  28,524  $  13,512  
 Restricted cash  4,326     216  
 Accounts receivable, net  23,105   4,004  
 Related party accounts receivable  872   1,176  
 Inventories, net  6,213   10,886  
 Prepaid expenses and other current assets  6,083   5,872  
  Total current assets  69,123   35,666  
Property, plant and equipment, net  53,735   59,797  
Restricted cash    957     957  
Equity and loans in affiliate    34     68  
Other assets  15,464   13,150  
Goodwill and intangible assets  560   560  
Total assets $   139,873   $   110,198   
         
Liabilities and stockholders' deficit     
Current liabilities:     
 Accounts payable $  15,315  $  7,943  
 Deferred revenue    5,288     6,509  
 Accrued and other current liabilities    29,188     24,268  
 Capital lease obligation, current portion    922     523  
 Debt, current portion    25,853     37,570  
 Related party debt    33,302   -  
  Total current liabilities    109,868     76,813  
Capital lease obligation, net of current portion    334     176  
Long-term debt, net of current portion    128,744     75,457  
Related party debt    39,144     43,029  
Deferred rent, net of current portion    8,906     9,682  
Deferred revenue, net of current portion    6,650     4,469  
Derivative liabilities    6,894     51,439  
Other liabilities    7,841     7,589  
  Total liabilities    308,381     268,654  
         
Mezzanine equity:    5,000   -  
Contingently redeemable common stock     
         
Amyris, Inc. stockholders' deficit    (174,445)    (158,065) 
Noncontrolling interest    937     (391) 
  Total stockholders' deficit     (173,508)    (158,456) 
Total liabilities and stockholders' deficit $   139,873   $   110,198   
         

 

Amyris, Inc.          
Condensed Consolidated Statement of Operations        
(Unaudited)         
(In thousands, except per share data)        
   Three Months Ended Year Ended 
   December 31,
2016
 December 31,
2015
 December 31,
2016
 December 31,
2015
 
Revenues         
 Renewable product sales$  11,295  $  4,371  $  24,788  $  14,032  
 Related party renewable product sales   172     862     1,561     864  
 Total product sales   11,467     5,233     26,349     14,896  
 Grants and collaborations revenue   20,772     4,614     50,843     19,257  
 Total revenues    32,239     9,847     77,192     34,153  
Costs and operating expenses        
 Cost of products sold   22,757     11,317     56,678     37,374  
 Loss on purchase commitments and impairment of property,        
   plant and equipment, and other reserves   7,281     26,907     7,305     34,166  
 Withholding tax related to conversion of related party notes -     4,723   -     4,723  
 Impairment of intangible assets -     5,525   -     5,525  
 Research and development (1)   14,015     11,115     51,412     44,636  
 Selling, general and administrative (1)   12,666     13,403     47,721     56,262  
 Total costs and operating expenses   56,719     72,990     163,116     182,686  
Loss from operations    (24,480)    (63,143)    (85,924)    (148,533) 
Other income (expense)        
 Gain (loss) from change in fair value of derivatives (2)   (471)    26,555     41,355     16,287  
 Gain (loss) on extinguishment of debt    (3,280)    4,843     (4,146)    (1,141) 
 Other income (expense), net (3)   (10,372)    (7,987)    (38,066)    (80,013) 
 Total other income (expense)   (14,123)    23,411     (857)    (64,867) 
Loss before income taxes and loss from investments in affiliates   (38,603)    (39,732)    (86,781)    (213,400) 
Benefit/(provision) for income taxes   (152)    (113)    (553)    (468) 
Net loss before loss from investments in affiliates   (38,755)    (39,845)    (87,334)    (213,868) 
Loss from investments in affiliates -     (2,095)  -     (4,184) 
Net loss $  (38,755) $  (41,940) $  (87,334) $  (218,052) 
Net loss attributable to noncontrolling interest -     22   -     100  
Net loss attributable to Amyris, Inc. common stockholders$  (38,755) $  (41,918) $  (87,334) $  (217,952) 
Net loss per share attributable to common stockholders,  basic$  (0.14) $  (0.23) $  (0.37) $  (1.75) 
Net loss per share attributable to common stockholders, diluted $  (0.14) $  (0.28) $  (0.40) $  (1.75) 
Weighted-average shares of common stock outstanding used in         
 computing net loss per share of common stock:        
 Basic  273,406,492   206,661,506   238,440,197   126,961,576  
 Diluted     273,406,492   220,233,355     264,644,449   126,961,576  
           
(1)Includes stock-based compensation expense of the following for the periods presented:       
           
 Research and development $  491  $  530  $  1,948  $  2,306  
 Sales, general and administrative   1,189     1,640     5,377     6,828  
   $  1,680  $  2,170  $  7,325  $  9,134  
           
(2



)



For the fourth quarter of 2016, the Company recorded a non-cash loss from revaluation of its derivative liabilities but a non-cash gain from revaluation during the
fourth quarter of 2015. The fair value change is 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 decreased in the fourth quarter of 2016 primarily as a result of an increase in the
Amyris stock price since September 30, 2016 to December 31, 2016.
 
    
(3

)

Other income (expense), net for the year ended December 31, 2015 includes $43.8 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 Year Ended 
   December 31,
2016
 December 31,
2015
 December 31,
2016
 December 31,
2015
 
           
Net loss attributable to Amyris, Inc. common stockholders (GAAP)$  (38,755) $  (41,918) $  (87,334) $  (217,952) 
 Loss on purchase commitments and impairment of         
   property, plant, and equipment   7,281     26,907     7,305     34,166  
 Loss on impairment of intangible assets -     5,525   -     5,525  
 Stock-based compensation expense   1,680     2,170     7,325     9,134  
 Withholding tax related to conversion of related party notes -     4,723   -     4,723  
 Issuance of warrants with collaboration agreement -   -     416   -  
 Gain (loss) from change in fair value of derivative & debt extinguishment   3,751     (31,398)    (37,209)    (15,146) 
 Acceleration of debt discount accretion associated with the debt         
 conversion transaction -   -   -     43,802  
Net loss attributable to Amyris, Inc. common stockholders (Non-GAAP)$   (26,043) $   (33,991) $   (109,497) $   (135,748) 
           
Net loss per share attributable to Amyris, Inc. common stockholders,        
  basic (GAAP) $  (0.14) $  (0.23) $  (0.37) $  (1.75) 
 Loss on purchase commitments and impairment of         
   property, plant, and equipment   0.03     0.13     0.04     0.27  
 Loss on impairment of intangible assets   -     0.03     -     0.04  
 Stock-based compensation expense   0.01     0.01     0.03     0.07  
 Withholding tax related to conversion of related party notes   -     0.02     -     0.04  
 Issuance of warrants with collaboration agreement   -     -     0.00     -  
 Gain (loss) from change in fair value of derivative & debt extinguishment   0.01     (0.15)    (0.16)    (0.12) 
 Acceleration of debt discount accretion associated with the debt         
 conversion transaction   -     -     -     0.35  
Net loss per share attributable to Amyris, Inc. common stockholders,        
  basic (Non-GAAP)$   (0.09) $   (0.19) $   (0.46) $   (1.10) 
           

 

Amyris, Inc.          
Reconciliation of GAAP to Non-GAAP Financial Information         
(Unaudited)         
(In thousands)         
            
    Three Months Ended Year Ended 
    December 31,
2016
 December 31,
2015
 December 31,
2016
 December 31,
2015
 
            
Product sales (GAAP & Non-GAAP)         
 Renewables $  11,467  $  5,233  $  26,349  $  14,896  
Product sales (GAAP & Non-GAAP) $   11,467   $   5,233   $   26,349   $   14,896   
            
Grants and collaborations revenue (GAAP) $  20,772  $  4,614  $  50,843  $  19,257  
 Change in accounts receivable, deferred revenue and fundings associated          
  with collaborations    (9,914)    (2,614)    (12,165)    14,388  
Collaborations Inflows (Non- GAAP) (1) $   10,858   $   2,000   $   38,678   $   33,645   
            
Total Revenues (GAAP) $  32,239  $  9,847  $  77,192  $  34,153  
 Change in accounts receivable, deferred revenue and fundings associated          
  with collaborations    (9,914)    (2,614)    (12,165)    14,388  
Total Cash Revenue Inflows (Non-GAAP) (1) $   22,325   $   7,233   $   65,027   $   48,541   
            
Costs of products sold (GAAP) $  22,757  $  11,317  $  56,678  $  37,374  
 Other costs/provisions    (2,207)    (279)    (7,342)    (58) 
 Excess capacity    (528)    (900)    (5,010)    (7,969) 
 Depreciation and amortization    (978)    (948)    (3,693)    (4,379) 
Costs of products sold (Non- GAAP) $   19,044   $   9,190   $   40,633   $   24,968   
            
 Adjusted Gross Profit (Non- GAAP) (2) $   13,195   $   657   $   36,559   $   9,185   
 Gross Margin (%) (2)  40.9%  6.7%  47.4%  26.9% 
            
Research and development (GAAP) $  14,015  $  11,115  $  51,412  $  44,636  
 Stock-based compensation expense    (491)    (530)    (1,948)    (2,306) 
 Issuance of warrants with collaboration agreement    -      -      (416)    -   
 Depreciation and amortization    (1,602)    (1,779)    (6,687)    (7,286) 
Research and development (Non-GAAP) $   11,922   $   8,806   $   42,361   $   35,044   
            
Selling, general and administrative (GAAP) $  12,666  $  13,403  $  47,721  $  56,262  
 Stock-based compensation expense    (1,189)    (1,640)    (5,377)    (6,828) 
 Depreciation and amortization    (259)    (287)    (1,098)    (1,359) 
Selling, general and administrative (Non-GAAP) $   11,218   $   11,476   $   41,246   $   48,075   
            
            
            
(1





)





The largest differences between the GAAP and non-GAAP collaborations numbers are (i) timing of revenue recognition.



The year ended December 31, 2016 and 2015, includes zero and $10.9 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.
 
    
(2

)

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.

 
   
            
Contact:

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