Amyris
Mar 15, 2018

Amyris Reports Another Strong Quarter with Solid Operating Performance and 2017 Revenue of $143.4 Million up 113% over 2016

EMERYVILLE, Calif., March 15, 2018 (GLOBE NEWSWIRE) -- Amyris, Inc. (Nasdaq:AMRS), the industrial bioscience company, today announced preliminary unaudited financial results for the fourth quarter and fiscal year ended December 31, 2017.

"We've completed another record year and a very strong fourth quarter. We've exceeded our key targets for 2017 and have started 2018 with continued strong growth in revenues and operating performance," said John Melo, Amyris President & CEO. "We have completed the transformation of our company into one of the leading global companies focused on making our planet healthier. We have organized around three core markets — Performance Health and Wellness, Clean Skin-Care and Pure Flavor & Fragrance Ingredients. Each of these markets is delivering strong, profitable growth underpinned by the most advantaged technology in the sector. We are making good for humanity and our planet with No Compromise® products. We are very pleased with our performance and expect another very strong year delivering continued market disruption with our partners."

Key Highlights

Other key operating and development highlights during the fourth quarter of 2017 and more recently included:

Financial Performance (preliminary unaudited)

Value share will be classified in the license and royalty line item in the consolidated statement of operations instead of as part of product sales to better reflect the company's current business model and provide more transparency as that portion of overall revenue grows. Prior-year amounts have been reclassified to conform to that presentation.

Fourth Quarter 2017

Fiscal Year 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, and 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, 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: 8249169.

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 expected 2018 revenue and EBITDA, anticipated 2018 business performance, expected market opportunities for our products and anticipated future revenue composition, 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, Biossance, Neossance, and No Compromise 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    
     
December 31,
(In thousands)
2017 2016 
     
Assets    
Current assets:    
Cash, cash equivalents and short-term investments$57,059  $28,524  
Restricted cash 2,994   4,326  
Accounts receivable, net 34,871   13,977  
Inventories 5,408   6,213  
Prepaid expenses and other current assets 5,525   6,083  
Total current assets 105,857   59,123  
Property, plant and equipment, net 13,892   53,735  
Unbilled receivable 7,940   -  
Restricted cash, noncurrent 959   957  
Recoverable taxes from Brazilian government entities 1,445   13,723  
Other assets 21,488   2,335  
Total assets$151,581  $129,873  
     
Liabilities, mezzanine equity and stockholders' deficit    
Current liabilities:    
Accounts payable$17,038  $15,315  
Accrued and other current liabilities 29,029   30,110  
Deferred revenue 6,131   5,288  
Debt, current portion 36,924   25,853  
Related party debt, current portion 20,019   33,302  
Total current liabilities 109,141   109,868  
Long-term debt, net of current portion 61,772   128,744  
Related party debt, net of current portion 46,541   39,144  
Derivative liabilities 119,978   6,894  
Other liabilities 10,632   23,731  
Total liabilities 348,064   308,381  
     
Mezzanine equity:    
Contingently redeemable common stock 5,000   5,000  
     
Amyris, Inc. stockholders' deficit (202,420)  (184,445) 
Noncontrolling interest 937   937  
Total stockholders' deficit (201,483)  (183,508) 
Total liabilities, mezzanine equity and stockholders' deficit$151,581  $129,873  
     
     
     
Unaudited Financial Statements 
  


        
Amyris, Inc.        
Condensed Consolidated Statements of Operations       
 Three Months Ended
December 31,
 Year Ended
December 31,
(In thousands, except per share data)2017 2016 2017 2016
Revenue       
Renewable products (includes related party revenue of $1,491, $172, $1,290 and $1,561, respectively)$13,445  $11,215  $42,370  $25,510 
Licenses and royalties (includes related party revenue of $57,270, $0, $57,973 and $0, respectively)(1) 57,703   252   64,477   15,839 
Grants and collaborations (includes related party revenue of $896, $0, $1,679 and $0, respectively) 9,440   10,771   36,598   25,843 
Total revenue (includes related party revenue of $59,656, $172, $60,941 and $1,561, respectively) 80,588   22,238   143,445   67,192 
Cost and operating expenses       
Cost of products sold 16,146   22,733   63,830   56,678 
Research and development(2) 12,703   14,015   56,844   51,412 
Sales, general and administrative(2) 18,778   12,666   63,031   47,721 
Impairment of property, plant and equipment -   7,305   -   7,305 
Total cost and operating expenses 47,627   56,719   183,705   163,116 
Income (loss) from operations 32,961   (34,481)  (40,260)  (95,924)
Other income (expense):       
Gain on divestiture(3) 5,732   -   5,732   - 
Interest expense (6,941)  (11,639)  (36,160)  (37,629)
Gain (loss) from change in fair value of derivative instruments(4) (32,714)  (471)  2,708   41,355 
Loss upon extinguishment of debt (5,093)  (3,280)  (8,160)  (4,146)
Other income (expense), net (380)  1,267   (956)  (437)
Total other expense (39,396)  (14,123)  (36,836)  (857)
Loss before income taxes (6,435)  (48,604)  (77,096)  (96,781)
Provision for income taxes (344)  (152)  (295)  (553)
Net loss attributable to Amyris, Inc. (6,779)  (48,756)  (77,391)  (97,334)
Less deemed dividend on capital distribution to related parties -   -   (8,648)  - 
Less deemed dividend related to beneficial conversion feature on Series A preferred stock -   -   (562)  - 
Less deemed dividend related to beneficial conversion feature on Series B preferred stock -   -   (634)  - 
Less deemed dividend related to beneficial conversion feature on Series D preferred stock -   -   (5,757)  - 
Less cumulative dividends on Series A and Series B preferred stock (1,197)  -   (5,439)  - 
Net loss attributable to Amyris, Inc. common stockholders$(7,976) $(48,756) $(98,431) $(97,334)
        
Net loss per share attributable to common stockholders(5):       
Basic$(0.17) $(2.67) $(3.05) $(6.12)
Diluted$(0.17) $(2.67) $(3.05) $(6.55)
Weighted-average shares of common stock outstanding used in computing net loss per share of common stock:       
Basic 47,895,238   18,227,100   32,253,570   15,896,014 
Diluted 47,895,238   18,227,100   32,253,570   17,642,965 
        
(1) Value share has been reclassified to licenses and royalties 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.
        
 Three Months Ended
December 31,
 Year Ended
December 31,
(2) Includes stock-based compensation expense as follows:2017 2016 2017 2016
Research and development$884  $491  $2,204  $1,948 
Sales, general and administrative 1,439   1,189   4,061   5,377 
 $2,323  $1,680  $6,265  $7,325 
        
(3) The Company is reviewing final valuations related to its 2017 sale of Amyris Brasil Ltda, which will be finalized in the 10-K to be filed subsequent to this release.
        
(4) Upon remeasuring the fair value of its derivative liabilities, the Company recorded non-cash losses for the three months ended December 31, 2017 and 2016, and non-cash gains for the years ended December 31, 2017 and 2016. 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. In addition, the gain for the year ended Decemer 31, 2017 includes the change in fair value of derivatives in connection with convertible preferred stock that the Company issued in May 2017.
        
(5) The Company is reviewing its calculations of net loss per share for the periods ended December 31, 2017, which will be finalized in the 10-K to be filed subsequent to this release.
        
        
Amyris, Inc.        
Reconciliation of GAAP to Non-GAAP Financial Information       
 Three Months Ended
December 31,
 Year Ended
December 31,
(In thousands, except per share data)2017 2016 2017 2016
Net loss attributable to Amyris, Inc. common stockholders (GAAP)$(7,976) $(48,756) $(98,431) $(97,334)
Non-GAAP adjustments:       
Gain on divestiture (5,732)  -   (5,732)  - 
Impairment of property, plant and equipment -   7,305   -   7,305 
Stock-based compensation expense 2,323   1,680   6,265   7,325 
(Gain) loss from change in fair value of derivative instruments(2) 32,714   471   (2,708)  (41,355)
Loss upon extinguishment of debt 5,093   3,280   8,160   4,146 
Issuance of warrants with collaboration agreement -   -   -   416 
Deemed dividend on capital distribution to related parties -   -   8,648   - 
Deemed dividend related to beneficial conversion feature on Series A preferred stock -   -   562   - 
Deemed dividend related to beneficial conversion feature on Series B preferred stock -   -   634   - 
Deemed dividend related to beneficial conversion feature on Series D preferred stock -   -   5,757   - 
Cumulative dividends on Series A and Series B preferred stock 1,197   -   5,439   - 
Tax effects on non-GAAP adjustments (669)  -   (669)  - 
Net income (loss) attributable to Amyris, Inc. common stockholders (non-GAAP)$   26,950   $   (36,020) $   (72,075) $   (119,497)
        
Weighted-average shares outstanding       
Basic shares oustanding (GAAP) 47,895,238   18,227,100   32,253,570   15,896,014 
Impact of derivative instruments (3,538,575)  -   (4,372,480)  - 
Basic shares outstanding (non-GAAP) 44,356,663   18,227,100   27,881,090   15,896,014 
        
Net loss per share attributable to Amyris, Inc. common stockholders - Basic (GAAP)(3)$(0.17) $(2.67) $(3.05) $(6.12)
Non-GAAP adjustments:       
Gain on divestiture (0.13)  -   (0.21)  - 
Impairment of property, plant and equipment -   0.39   -   0.45 
Stock-based compensation expense 0.05   0.09   0.22   0.46 
(Gain) loss from change in fair value of derivative instruments(2) 0.74   0.03   (0.10)  (2.60)
Loss upon extinguishment of debt 0.11   0.18   0.29   0.26 
Issuance of warrants with collaboration agreement -   -   -   0.03 
Deemed dividend on capital distribution to related parties -   -   0.31   - 
Deemed dividend related to beneficial conversion feature on Series A preferred stock -   -   0.02   - 
Deemed dividend related to beneficial conversion feature on Series B preferred stock -   -   0.02   - 
Deemed dividend related to beneficial conversion feature on Series D preferred stock -   -   0.21   - 
Cumulative dividends on Series A and Series B preferred stock 0.03   -   0.20   - 
Tax effects on non-GAAP adjustments (0.02)  -   (0.02)  - 
Effect of non-GAAP shares on basic earnings (loss) per share -   -   (0.48)  - 
Net income (loss) per share attributable to Amyris, Inc. common stockholders - Basic (non-GAAP)$   0.61   $   (1.98) $   (2.59) $   (7.52)
        
        
Unaudited Financial Statements
 

 

         
Amyris, Inc.         
Reconciliation of GAAP to Non-GAAP Financial Information        
 Three Months Ended
December 31,
 Year Ended
December 31,
 
(In thousands)2017
 2016
 2017
 2016
 
Revenue (GAAP and non-GAAP)        
Renewable products$13,445  $11,215  $42,370  $25,510  
Licenses and royalties 57,703   252   64,477   15,839  
Grants and collaborations 9,440   10,771   36,598   25,843  
Total revenue (GAAP and non-GAAP)$   80,588   $   22,238   $  143,445   $   67,192   
         
Cost of products sold (GAAP)$16,146  $22,733  $63,830  $56,678  
Other costs/provisions 3,122   (2,207)  7,332   (7,342) 
Excess capacity (602)  (528)  (2,534)  (5,010) 
Depreciation and amortization (1,254)  (978)  (4,024)  (3,693) 
Cost of products sold (non-GAAP)$   17,412   $   19,020   $   64,604   $   40,633   
         
Adjusted gross profit (non-GAAP)(1)$   63,176   $   3,218   $   78,841   $   26,559   
Gross margin (%) 78.4%  14.5%  55.0%  39.5% 
         
Research and development expense (GAAP)$12,703  $14,015  $56,844  $51,412  
Stock-based compensation expense (884)  (491)  (2,204)  (1,948) 
Issuance of warrants with collaboration agreement -   -   -   (416) 
Depreciation and amortization (1,347)  (1,602)  (6,135)  (6,687) 
Research and development expense (non-GAAP)$   10,472   $   11,922   $   48,505   $   42,361   
         
Sales, general and administrative expense (GAAP)$18,778  $12,666  $63,031  $47,721  
Stock-based compensation expense (1,439)  (1,189)  (4,061)  (5,377) 
Depreciation and amortization (634)  (259)  (1,200)  (1,098) 
Sales, general and administrative expense (non-GAAP)$   16,705   $   11,218   $   57,770   $   41,246   
         
(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