Amyris
Oct 31, 2013

Amyris Reports Third Quarter 2013 Financial Results

Continued Strong Operational Performance and Lower Production Costs Lead to Another Strong Quarter for Amyris

EMERYVILLE, Calif., Oct. 31, 2013 (GLOBE NEWSWIRE) -- Amyris, Inc. (Nasdaq:AMRS), a leading renewable chemicals and fuels company, today announced financial results for the third quarter ended September 30, 2013.

"During the third quarter, we achieved our highest farnesene production volumes at our lowest quarterly unit costs to date. We continued our relentless focus on collaborations and sales revenues with continued strength in our two initial product lines: high-performance renewable diesel and our best-in-class emollients. We expect continued growth in 2014 in new areas such as lubricants, specialty fluids and polymers," said John Melo, Amyris President & CEO.

"Since quarter-end we completed the initial closing of our financing with our major stockholders, receiving $42.6 million in cash proceeds. We believe we are on the right track to achieve our objective of positive cash flow from operations in 2014 and profitability in 2015," Melo concluded.

BUSINESS HIGHLIGHTS

Below are some key highlights from the Company's activities during the third quarter of 2013.

Farnesene Production

Sales & Collaboration Revenues

Strengthened Financial Position

FINANCIAL RESULTS

Aggregate revenues for the quarter ended September 30, 2013 were $7.0 million compared to aggregate revenues of $19.1 million in the third quarter of 2012. Last year's third quarter revenues included $1.7 million of sales related to the Company's ethanol and ethanol-blended gasoline business, a business which the Company transitioned out of in the third quarter of 2012. Of the $7.0 million in aggregate revenues in the quarter ended September 30, 2013, $4.1 million was related to renewable product sales and $2.9 million was related to collaboration and grant revenue. This compares with $3.0 million in renewable product sales and $14.4 million in collaboration and grant revenue for the same period in the prior year. The $14.4 million in grants and collaboration revenue in the prior year's quarter included $9.8 million in revenue related to a July 2012 amendment of the Company's collaboration agreement with Total.

Cost of products sold increased to $8.3 million for the three months ended September 30, 2013 from $4.4 million for the same period in the prior year. Cost of products sold for the three months ended September 30, 2013 consisted primarily of production costs of farnesene-derived products, including certain costs related to the scale-up in production of farnesene-derived products at the Company's recently operational plant located in Brotas, Brazil.

Total research & development (R&D) and sales, general & administrative (SG&A) expenses for the three months declined 20.1 % to $26.4 million from $33.1 million for the same quarter in the prior year, primarily due to reductions in personnel-related costs and overall lower spending.

GAAP net loss attributable to common stockholders for the quarter was $24.2 million ($0.32 per share) compared to a loss of $20.3 million ($0.34 per share) in the comparable quarter of 2012. On a non-GAAP basis, excluding stock-based compensation and loss on purchase commitments and write-off of production assets, the net loss attributable to common stockholders was $19.8 million ($0.26 per share) compared to $12.9 million ($0.22 per share) in the comparable quarter of the prior year. A reconciliation of GAAP to non-GAAP results is included in this release.

Nine Months Ended September 30, 2013

Aggregate revenues for the nine months ended September 30, 2013 were $25.7 million versus $67.8 million in the prior year. Revenues for the first nine months of last year included $38.8 million of sales related to the Company's ethanol and ethanol-blended gasoline business. Of the $25.7 million in aggregate revenues for the nine months ended September 30, 2013, $11.3 million was related to renewable product sales and $14.4 million was related to collaboration and grant revenue. This compares with $7.8 million in renewable product sales and $21.2 million in collaboration and grant revenue for the same period in the prior year. The $21.2 million in grants and collaboration revenue in the prior year included $9.8 million in revenue recorded as a result of a July 2012 amendment of a collaboration agreement and related agreements with Total.

Cost of products sold declined to $26.1 million for the nine months ended September 30, 2013 from $71.9 million for the same period in the prior year. Prior year cost of products sold included costs related to the Company's ethanol and ethanol-blended gasoline business.

Total R&D and SG&A expenses for the nine months ended September 30, 2013 declined 26.7% to $85.7 million from $116.9 million for the same period in 2012, primarily due to reductions in personnel-related costs and overall lower spending.

GAAP net loss attributable to common stockholders for the nine months ended September 30, 2013 was $95.7 million ($1.27 per share) compared to a loss of $161.6 million ($2.91 per share) in the comparable period of 2012. On a non-GAAP basis, excluding stock-based compensation and loss on purchase commitments and write-off of production assets, the net loss attributable to common stockholders was $73.7 million ($0.98 per share) compared to $102.2 million ($1.84 per share) in the prior year.

CONFERENCE CALL

Amyris will discuss these results and provide a business update in a conference call scheduled for today at 4:30 p.m. ET (1:30 p.m. PT). Investors may access a live audio webcast of this conference call in the Investor Relations section of the Company's website at http://investors.amyris.com. A replay of the webcast will be available in the Investor Relations section of the Company's website approximately two hours after the conclusion of the call and will remain available for approximately 60 calendar days.

About Amyris

Amyris is an integrated renewable products company focused on providing sustainable alternatives to a broad range of petroleum-sourced products. Amyris uses its industrial synthetic biology platform to convert plant sugars into a variety of molecules -- flexible building blocks that can be used in a wide range of products. Amyris's initial portfolio of commercial products is based on Biofene®, Amyris's brand of renewable farnesene, a long-chain hydrocarbon. Amyris is commercializing these products both as No Compromise® renewable ingredients in cosmetics, flavors and fragrances, polymers, lubricants and consumer products, and also as No Compromise renewable diesel and jet fuel. Amyris Brasil Ltda., a subsidiary of Amyris, oversees the establishment and expansion of Amyris's production in Brazil. More information about Amyris 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 Company's expectations for growth in new areas such as lubricants and specialty fluids and polymers and for achieving positive cash flow from operations and profitability, including the expected timing of such achievements) 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 those associated with any delays or failures in development, production and commercialization of products, liquidity and ability to fund capital expenditures, 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, 2013. Amyris disclaims any obligation to update information contained in these forward-looking statements whether as a result of new information, future events, or otherwise.

Non-GAAP Financial Information

Consolidated financial information has been presented in accordance with GAAP as well as on a non-GAAP basis. The non-GAAP financial measures exclude non-cash items such as stock-based compensation. Management believes that it is useful to supplement its GAAP financial statements with this non-GAAP information because management uses such information internally 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. In addition, Amyris 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. Non-GAAP 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 when understanding Amyris's operating performance. Reconciliation between GAAP and non-GAAP financial information is provided in the financial statement tables below.

Amyris, the Amyris logo, Biofene and No Compromise are trademarks or registered trademarks of Amyris, Inc.

Amyris, Inc.
Condensed Consolidated Statement of Operations
(Unaudited)
(In thousands, except per share data)
         
 Three Months Ended
September 30,
Nine Months Ended
September 30,
 2013201220132012
Revenues        
Product sales  $ 3,138  $ 4,728  $ 10,130  $ 46,615
Related party product sales  1,006  --   1,182  -- 
Total product sales  4,144  4,728  11,312  46,615
Grants and collaborations revenue  2,860  4,605  11,763  11,450
Related party grants and collaborations revenue  --   9,775  2,647  9,775
Total grants and collaborations revenue  2,860  14,380  14,410  21,225
Total revenues  7,004  19,108  25,722  67,840
Costs and operating expenses        
Cost of products sold  8,328  4,444  26,141  71,891
Loss on purchase commitments and write off of production assets  --   1,438  8,423  38,090
Research and development (1)  13,370  15,736  43,116  55,580
Sales, general and administrative (1)  13,057  17,355  42,602  61,301
Total costs and operating expenses  34,755  38,973  120,282  226,862
Loss from operations  (27,751)  (19,865)  (94,560)  (159,022)
Other income (expense):        
Interest income  21  297  114  1,406
Interest expense  (2,110)  (1,224)  (5,230)  (3,538)
Other income (expense), net  4,177  664  3,266  (512)
Total other income (expense)  2,088  (263)  (1,850)  (2,644)
Loss before income taxes  (25,663)  (20,128)  (96,410)  (161,666)
Benefit (provision) for income taxes  1,435  (260)  953  (753)
Net loss  $ (24,228)  $ (20,388)  $ (95,457)  $ (162,419)
Net (income) loss attributable to noncontrolling interest  29  95  (232)  772
Net loss attributable to Amyris, Inc. common stockholders  $ (24,199)  $ (20,293)  $ (95,689)  $ (161,647)
Net loss per share attributable to common stockholders, basic and diluted  $ (0.32)  $ (0.34)  $ (1.27)  $ (2.91)
Weighted-average shares of common stock outstanding used in computing net loss per share of common stock, basic and diluted 76,205,853 58,964,226 75,167,877 55,552,949
         
         
(1) Includes stock-based compensation expense of the following for the periods presented:
         
Research and development   $ 1,132  $ 1,450  $ 3,428  $ 4,521
Sales, general and administrative  3,301  4,515  10,183  16,879
   $ 4,433  $ 5,965  $ 13,611  $ 21,400
 
Amyris, Inc. 
Condensed Consolidated Balance Sheets
(Unaudited)
(In thousands)
     
 September 30,December 31,
 20132012
   
Assets    
Current assets:    
Cash, cash equivalents and short-term investments  $ 6,336  $ 30,689
Accounts receivable, net 2,789 3,846
Related party accounts receivable 1,022  -- 
Inventories, net 7,948 6,034
Prepaid expenses and other current assets 7,164 8,925
Total current assets 25,259 49,494
Property, plant and equipment, net 140,718 163,121
Restricted cash  956  955
Other assets 19,725 20,112
Goodwill and intangible assets 9,120 9,152
Total assets $ 195,778  $ 242,834
     
Liabilities and Equity    
Current liabilities:    
Accounts payable  $ 12,881  $ 15,392
Deferred revenue  7,351  1,333
Accrued and other current liabilities  20,305  24,410
Capital lease obligation, current portion  1,031  1,366
Debt, current portion  5,448  3,325
Total current liabilities  47,016  45,826
Capital lease obligation, net of current portion  464  1,244
Long-term debt, net of current portion  55,299  61,806
Related party debt  58,091  39,033
Deferred rent, net of current portion  10,084  8,508
Deferred revenue, net of current portion  5,000  4,255
Other liabilities  19,404  15,933
Total liabilities  195,358  176,605
     
Amyris, Inc. stockholders' equity  1,010  67,106
Noncontrolling interest  (590)  (877)
Total stockholders' equity  420  66,229
     
Total liabilities and stockholders' equity $ 195,778  $ 242,834
 
Amyris, Inc. 
Supplemental Consolidated Financial Information 
(Unaudited)
(In thousands, except per share data)
         
 Three Months Ended
September 30,
Nine Months Ended
September 30,
 2013201220132012
         
         
Other Selected Financial Information:        
Capital expenditures and deposits on property and equipment  $ 2,190  $ 5,541  $ 5,901  $ 50,906
Depreciation and amortization  $ 3,768  $ 3,179  $ 12,259  $ 10,686
         
Product sales        
Ethanol and ethanol-blended gasoline  $ --   $ 1,657  $ --   $ 38,836
Renewables  4,144  3,071  11,312  7,779
Total product sales $ 4,144  $ 4,728  $ 11,312  $ 46,615
         
Non-GAAP Financial Information:        
         
Grants and collaborations        
Revenue recognized  $ 2,860  $ 14,380  $ 14,410  $ 21,225
Cash received(1)  $ 25,081  $ 36,031  $ 53,141  $ 58,923
         
Reconciliation of GAAP to Non-GAAP Net Loss Per Share:        
         
Net loss attributable to Amyris Inc., common stockholders (GAAP)  $ (24,199)  $ (20,293)  $ (95,689)  $ (161,647)
Stock-based compensation expense  4,433  5,965  13,611  21,400
Loss on purchase commitments and write off of production assets  --   1,438  8,423  38,090
Net loss attributable to Amyris Inc., common stockholders (Non- GAAP) $ (19,766) $ (12,890) $ (73,655) $ (102,157)
         
Net loss per share attributed to common stockholders basic and diluted (GAAP)  $ (0.32)  $ (0.34)  $ (1.27)  $ (2.91)
Stock-based compensation expense  0.06  0.10  0.18  0.39
Loss on purchase commitments and write off of production assets  --   0.02  0.11  0.68
Net loss per share attributed to common stockholders, basic and diluted (Non-GAAP) $ (0.26) $ (0.22) $ (0.98) $ (1.84)
         
         
(1) The three months ended September 30, 2013 and 2012, includes $20.0 million and $30.0 million, respectively, and the nine months ended September 30, 2013 and 2012, includes $30.0 million and $30.0 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.
CONTACT: Amyris, Inc.

         Investor Relations

         Joel Velasco

         (510) 740-7481

         investor@amyris.com