Amyris
Mar 9, 2016

Amyris Reports Fourth Quarter and Fiscal Year 2015 Financial Results

EMERYVILLE, Calif., March 09, 2016 (GLOBE NEWSWIRE) -- Amyris, Inc. (Nasdaq:AMRS), the industrial bioscience company, today announced financial results for the fourth quarter and fiscal year ended December 31, 2015.

"The fourth quarter resulted in our best renewable product sales quarter to date during 2015 while also highlighting our challenge in completing our product finishing and shipping in time for one of our customers," said John Melo, Amyris President & CEO.

Continued Melo, "We expect to complete a significant portion of the delayed product shipment during the current quarter with the remainder later in the year and continue to make very good progress in the expansion of our collaboration portfolio. We entered 2016 with key commitments in place for farnesene applications, which represent a substantial percentage of our total planned annual farnesene production volume for 2016. The volumes we expect under these farnesene supply agreements represent initial supplies for high-volume applications, and alone, could fully utilize our Brotas plant through the end of 2016."

Concluded Melo, "We are focusing on our core business, which is driven by solving supply challenges, delivering innovative products and providing our partners with a strategic advantage underpinned by high-performance, sustainable products.  We expect our key results for 2016 to include divestment of non-core assets that we believe will generate approximately $40 million to $60 million of net proceeds, closing new collaborations in personal care and pharmaceutical industries and delivering on our farnesene supply agreements."

Business Highlights

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

Collaborations

Personal Care and Industrial

Financial Performance

Fourth Quarter 2015

Fiscal Year 2015

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 income (loss) is calculated using GAAP net income (loss) excluding loss on purchase commitments and impairment of property, plant, and equipment, impairment of intangible assets, stock-based compensation, gains and losses from changes in fair value of derivatives and losses on debt extinguishment, withholding tax related to conversion of related-party notes, and acceleration of debt discount accretion.

Non-GAAP revenue represents GAAP product revenue plus the cash received from collaborations and grants. Non-GAAP revenue is calculated using GAAP revenues and adding the related changes in accounts receivable and deferred liabilities 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 income (loss), non-GAAP revenue, and other measures, 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: 56092225.

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, specialty ingredients and consumer products. The company is delivering its No Compromise® products in focused markets, including specialty and performance chemicals, fragrance ingredients, and cosmetic emollients. 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 company's expected range of product sales revenues and collaboration cash inflows for 2016, anticipated completion of an expected large sale and shipment of a product to a collaborator and execution and completion of a major new collaboration (and the timelines for each), expected closing of new collaborations in new sectors such as the pharmaceutical industry, monetization of non-core assets (including the expected range of proceeds from such monetization), monetization of non-core assets, and cash from existing and new collaborations to provide funding for the company's operations in the near term, market acceptance and demand for company products, anticipated sales of farnesene products and expectations for purchases of farnesene produced at the company's Brotas manufacturing plant, including the percentage of Brotas farnesene production capacity to be represented by such anticipated purchases),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 the company's liquidity and ability to fund operating and capital expenses, timing and execution risks associated with manufacturing, uncertainty regarding timing of closing transactions 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 November 9, 2015. 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 Muck Daddy are trademarks or registered trademarks of Amyris, Inc. All other trademarks are the property of their respective owners.

            -Financial Tables Attached-

 

      
Amyris, Inc.      
Condensed Consolidated Balance Sheets     
(Unaudited)     
(In thousands)     
         
     December 31, December 31, 
      2015   2014  
         
Assets      
Current assets:     
 Cash, cash equivalents and short-term investments $  13,512  $  43,422  
 Restricted cash  216     -   
 Accounts receivable, net  3,514   8,687  
 Related party accounts receivable  1,666   455  
 Inventories, net  10,886   14,506  
 Prepaid expenses and other current assets  5,872   6,534  
  Total current assets  35,666   73,604  
Property, plant and equipment, net  59,797   118,980  
Restricted cash    957     1,619  
Equity and loans in affiliate    68     2,260  
Other assets  13,150   13,635  
Goodwill and intangible assets  560   6,085  
Total assets $   110,198   $   216,183   
         
Liabilities and stockholders' deficit     
Current liabilities:     
 Accounts payable $  7,943  $  3,489  
 Deferred revenue    6,509     5,303  
 Accrued and other current liabilities    24,268     13,565  
 Capital lease obligation, current portion    523     541  
 Debt, current portion    37,570     17,100  
  Total current liabilities    76,813     39,998  
Capital lease obligation, net of current portion    176     275  
Long-term debt, net of current portion    75,457     100,122  
Related party debt    43,029     115,239  
Deferred rent, net of current portion    9,682     10,250  
Deferred revenue, net of current portion    4,469     6,539  
Derivative liabilities    51,439     59,736  
Other liabilities    7,589     9,087  
  Total liabilities    268,654     341,246  
         
Amyris, Inc. stockholders' deficit    (158,065)    (124,452) 
Noncontrolling interest    (391)    (611) 
  Total stockholders' deficit    (158,456)    (125,063) 
         
Total liabilities and stockholders' deficit $   110,198   $   216,183   
         

 

Amyris, Inc.          
Condensed Consolidated Statement of Operations        
(Unaudited)         
(In thousands, except per share data)        
   Three Months Ended Year Ended 
   December 31,
2015
 December 31,
2014
 December 31,
2015
 December 31,
2014
 
Revenues         
 Renewables $  4,371  $  4,460  $  14,032  $  22,793  
 Related party renewables   862     244     864     646  
  Total product sales   5,233     4,704     14,896     23,439  
 Grants and collaborations revenue   4,614     6,881     19,257     19,835  
 Total revenues    9,847     11,585     34,153     43,274  
Costs and operating expenses        
 Cost of products sold   11,317     9,309     37,374     33,202  
 Loss on purchase commitments, impairment of         
   assets and other reserves    26,907     658     34,166     1,769  
 Loss on impairment of intangible assets   5,525     3,035     5,525     3,035  
 Withholding tax related to conversion of related party notes   4,723     -      4,723     -   
 Research and development (1)   11,115     12,319     44,636     49,661  
 Sales, general and administrative (1)   13,403     13,709     56,262     55,435  
 Total costs and operating expenses   72,990     39,030     182,686     143,102  
Loss from operations    (63,143)    (27,445)    (148,533)    (99,828) 
Other income (expense):        
 Gain (loss) from change in fair value of derivatives & debt extinguishment    31,398     95,990     15,146     133,626  
 Other income (expense), net   (7,987)    (8,505)    (80,013)    (28,226) 
 Total other income (expense)   23,411     87,485     (64,867)    105,400  
Loss before income taxes and loss from investments in affiliates   (39,732)    60,040     (213,400)    5,572  
Provision for income taxes   (113)    (125)    (468)    (495) 
Net loss before loss from investments in affiliates   (39,845)    59,915     (213,868)    5,077  
Loss from investments in affiliates   (2,095)    (1,922)    (4,184)    (2,910) 
Net loss $  (41,940) $  57,993  $  (218,052) $  2,167  
Net loss attributable to noncontrolling interest   22     28     100     119  
Net loss attributable to Amyris, Inc. common stockholders$  (41,918) $  58,021  $  (217,952) $  2,286  
Net loss per share attributable to common stockholders,  basic*$  (0.23) $  0.73  $  (1.75) $  0.03  
Net loss per share attributable to common stockholders, diluted*$  (0.28) $  (0.21) $  (1.75) $  (0.90) 
Weighted-average shares of common stock outstanding used in         
 computing net loss per share of common stock:        
 Basic  206,661,506   79,148,281   126,961,576   75,472,770  
 Diluted  220,233,355   146,804,047   126,961,576   75,472,770  
           
 (1)Includes stock-based compensation expense of the following for the periods presented:       
           
 Research and development $  530  $  885  $  2,306  $  3,508  
 Sales, general and administrative   1,640     2,451     6,828     10,597  
   $  2,170  $  3,336  $  9,134  $  14,105  
           
* Note: Includes $6.4 million and $3.8 million for the three months and year ended, respectively, of an adjustment for gain/loss of warrant exercises. 
          
           
Amyris, Inc.          
Reconciliation of GAAP to Non-GAAP Financial Information        
(Unaudited)         
(In thousands, except per share data)        
   Three Months Ended Year Ended 
   December 31,
2015
 December 31,
2014
 December 31,
2015
 December 31,
2014
 
           
Net loss attributable to Amyris, Inc. common stockholders (GAAP)$  (41,918) $  58,021  $  (217,952) $  2,286  
 Loss on purchase commitments and impairment of         
   property, plant, and equipment    26,907     658     34,166     1,769  
 Loss on impairment of intangible assets   5,525     3,035     5,525     3,035  
 Withholding tax related to conversion of related party notes   4,723     -      4,723     -   
 Stock-based compensation expense   2,170     3,336     9,134     14,105  
 (Gain) loss from change in fair value of derivatives & debt extinguishment   (31,398)    (95,990)    (15,146)    (133,626) 
 Acceleration of debt discount accretion associated with the debt         
 conversion transaction   -      -      43,802     -   
Net loss attributable to Amyris, Inc. common stockholders (Non-GAAP)$   (33,991) $   (30,940) $   (135,748) $   (112,431) 
           
Net loss per share attributable to Amyris, Inc. common stockholders,        
   basic (GAAP) $  (0.20) $  0.73  $  (1.72) $  0.03  
 Loss on purchase commitments and impairment of         
   property, plant, and equipment $  0.13  $  0.01  $  0.27  $  0.02  
 Loss on impairment of intangible assets$  0.03  $  0.04  $  0.04  $  0.04  
 Withholding tax related to conversion of related party notes$  0.02  $  -   $  0.04  $  -   
 Stock-based compensation expense$  0.01  $  0.04  $  0.07  $  0.19  
  Gain (loss) from change in fair value of derivative & debt extinguishment$  (0.15) $  (1.21) $  (0.12) $  (1.77) 
 Acceleration of debt discount accretion associated with the debt         
 conversion transaction$  -   $  -   $  0.35  $  -   
Net loss per share attributable to Amyris, Inc. common stockholders,        
  (Non-GAAP) $   (0.16) $   (0.39) $   (1.07) $   (1.49) 
           

 

Amyris, Inc.          
Reconciliation of GAAP to Non-GAAP Financial Information         
(Unaudited)         
(In thousands)         
            
    Three Months Ended Year Ended 
    December 31,
2015
 December 31,
2014
 December 31,
2015
 December 31,
2014
 
            
Product sales (GAAP & Non-GAAP)         
 Renewables $  5,233  $  4,704  $  14,896  $  23,439  
Product sales (GAAP & Non-GAAP) $   5,233   $   4,704   $   14,896   $   23,439   
            
Grants and collaborations revenue (GAAP) $  4,614  $  6,881  $  19,257  $  19,835  
 Change in accounts receivable, deferred revenue and fundings associated          
  with collaborations    (2,614)    (5,931)    14,388     15,639  
Collaborations Inflows (Non- GAAP) (1) $   2,000   $   950   $   33,645   $   35,474   
            
Total Revenues (GAAP) $  9,847  $  11,585  $  34,153  $  43,274  
 Change in accounts receivable, deferred revenue and fundings associated          
  with collaborations    (2,614)    (5,931)    14,388     15,639  
Total Cash Revenue Inflows (Non-GAAP) (1) $   7,233   $   5,654   $   48,541   $   58,913   
            
            
Research and development (GAAP) $  11,115  $  12,319  $  44,636  $  49,661  
 Stock-based compensation expense    (530)    (885)    (2,306)    (3,508) 
 Depreciation and amortization    (1,779)    (1,842)    (7,286)    (7,728) 
Research and development (Non-GAAP) $   8,806   $   9,592   $   35,044   $   38,425   
            
Sales, general and administrative (GAAP) $  13,403  $  13,709  $  56,262  $  55,435  
 Stock-based compensation expense    (1,640)    (2,451)    (6,828)    (10,597) 
 Depreciation and amortization    (287)    (452)    (1,359)    (1,640) 
Sales, general and administrative (Non-GAAP) $   11,476   $   10,806   $   48,075   $   43,198   
            
            
            
 (1)The largest differences between the GAAP and non-GAAP collaborations numbers are (i) timing of revenue recognition and (ii) the TOTAL collaboration cash, which is treated as debt for GAAP purposes. 

The years ended December 31, 2015 and 2014, both include $10.9 million 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:

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