Amyris
Nov 2, 2016

Amyris Reports Third Quarter 2016 Results

Record Revenue, Lower SG&A Expenses and Strong Outlook

EMERYVILLE, Calif., Nov. 02, 2016 (GLOBE NEWSWIRE) -- Amyris, Inc. (Nasdaq:AMRS), the industrial bioscience company, today announced financial results for the third quarter ended September 30, 2016, and posted the highest quarterly revenue in the company's history since exiting ethanol sales and trading.

"We're encouraged by the solid momentum in our business, which led to record revenue for the third quarter," said John Melo, Amyris President & CEO. "We have continued to execute on our business plan to grow our business through collaborations and partnerships, including expansion into the pharmaceutical sector.  Our industry leading platform helped us reach a tipping point in demand from some of the leading companies in our target sectors. The combination of the strong growth for our farnesene building block, the new collaborations we are signing and the record number of products in our portfolio that are reaching commercial scale help underpin a very strong fourth quarter and over $200 million of 2017 revenue that we believe is supported by our current business and the remaining collaborations we expect to close in the fourth quarter."

Key Highlights

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

Financial Performance

Third Quarter 2016

Nine Months Ended September 30, 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 and debt extinguishment.

Non-GAAP revenue represents GAAP product revenue plus the cash received from collaborations. Non-GAAP revenue is calculated using GAAP revenues and adding the related changes in accounts receivable and deferred revenue 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 loss, non-GAAP revenue, 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: 5584794.

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, and 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 facts could be deemed to be forward-looking statements. These forward-looking statements include, among other things, statements regarding future events (such as the anticipated consummation of a pending asset transaction, expected cash generation in Q4 2016, anticipated 2017 total revenue, the expected closing of collaborations in Q4 2016,  expected 2019 incremental annual revenue resulting from Amyris's expansion to a second nutraceutical product, the anticipated timing for closing an unsecured $25 million credit facility, the expected completion of a definitive agreement for a collaboration with a leader in food ingredients and nutraceuticals, including the timing thereof and related collaboration payment and equity investment thereunder, as well as anticipated 2017 revenue resulting from such collaboration, the anticipated global availability expansion and production cost reduction of Amyris's farnesene (and resulting market opportunities) in connection with Amyris's agreement with the Department of Energy, the expected launch of Amyris's Biossance skin-care products in Sephora stores and introduction of such products into other new, large distribution channels, and the anticipated extension of the loans under our senior secured loan facility), 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 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, 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, 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 and the Amyris logo are registered trademarks of Amyris, Inc.

*The reference to record third-quarter revenue excludes historical quarters when the company had engaged in ethanol sales and trading.

            -Financial Tables Attached-

Amyris, Inc.      
Condensed Consolidated Balance Sheets     
(In thousands)     
         
     September 30, December 31, 
      2016   2015  
     (Unaudited)   
Assets      
Current assets:     
 Cash, cash equivalents and short-term investments $  2,295  $  13,512  
 Restricted cash  279     216  
 Accounts receivable, net  5,707   4,004  
 Related party accounts receivable  651   1,176  
 Inventories, net  7,899   10,886  
 Prepaid expenses and other current assets  4,286   4,583  
  Total current assets  21,117   34,377  
Property, plant and equipment, net  63,093   59,797  
Restricted cash    958     957  
Equity and loans in affiliate    34     68  
Other assets  13,657   10,357  
Goodwill and intangible assets  560   560  
Total assets $   99,419   $   106,116   
         
Liabilities and stockholders' deficit     
Current liabilities:     
 Accounts payable $  13,756  $  7,943  
 Deferred revenue    7,105     6,509  
 Accrued and other current liabilities    34,912     24,268  
 Capital lease obligation, current portion    942     523  
 Debt, current portion    48,559     36,281  
 Related party debt    26,457     -   
  Total current liabilities    131,731     75,524  
Capital lease obligation, net of current portion    56     176  
Long-term debt, net of current portion    63,615     72,826  
Related party debt    37,000     42,867  
Deferred rent, net of current portion    9,123     9,682  
Deferred revenue, net of current portion    4,469     4,469  
Derivative liabilities    6,711     51,439  
Other liabilities    4,212     7,589  
  Total liabilities    256,917     264,572  
         
Mezzanine equity:    5,000     -   
Contingently redeemable common stock     
         
Amyris, Inc. stockholders' deficit    (162,384)    (158,065) 
Noncontrolling interest    (114)    (391) 
  Total stockholders' deficit     (162,498)    (158,456) 
Total liabilities and stockholders' deficit $   99,419   $   106,116   
         

 

Amyris, Inc.          
Condensed Consolidated Statement of Operations        
(Unaudited)         
(In thousands, except per share data)        
   Three Months Ended Nine Months Ended 
   September 30,
2016
 September 30,
2015
 September 30,
2016
 September 30,
2015
 
Revenues         
 Renewable product sales$  5,430  $  4,226  $  13,493  $  9,661  
 Related party renewable product sales   1,390     2     1,390     2  
 Total product sales   6,820     4,228     14,883     9,663  
 Grants and collaborations revenue   19,724     4,363     30,071     14,643  
 Total revenues    26,544     8,591     44,954     24,306  
Costs and operating expenses        
 Cost of products sold   14,876     8,455     33,945     26,057  
 Loss on purchase commitments and impairment of property,   -         
   plant and equipment   -      7,259     -      7,259  
 Research and development (1)   12,315     10,343     37,397     33,521  
 Sales, general and administrative (1)   11,381     14,103     35,055     42,859  
 Total costs and operating expenses   38,572     40,160     106,397     109,696  
Loss from operations    (12,028)    (31,569)    (61,443)    (85,390) 
Other income (expense):        
 Gain (loss) from change in fair value of derivatives (2)   (786)    (21,690)    41,826     (10,268) 
 Loss on extinguishment of debt (2)   (217)    (5,984)    (866)    (5,984) 
 Other income (expense), net (3)   (6,525)    (16,666)    (27,694)    (72,026) 
 Total other income (expense)   (7,528)    (44,340)    13,266     (88,278) 
Loss before income taxes and loss from investments in affiliates   (19,556)    (75,909)    (48,177)    (173,668) 
Provision for income taxes   (148)    (119)    (402)    (355) 
Net loss before loss from investments in affiliates   (19,704)    (76,028)    (48,579)    (174,023) 
Loss from investments in affiliates   -      (660)    -      (2,089) 
Net loss $  (19,704) $  (76,688) $  (48,579) $  (176,112) 
Net loss attributable to noncontrolling interest   -      24     -      78  
Net loss attributable to Amyris, Inc. common stockholders$  (19,704) $  (76,664) $  (48,579) $  (176,034) 
Net loss per share attributable to common stockholders,  basic$  (0.08) $  (0.55) $  (0.21) $  (1.76) 
Net loss per share attributable to common stockholders, diluted $  (0.08) $  (0.55) $  (0.28) $  (1.76) 
Weighted-average shares of common stock outstanding used in         
 computing net loss per share of common stock:        
 Basic  249,190,339   140,374,297   226,772,159   100,103,007  
 Diluted (4)    249,190,339   140,374,297     268,375,111   100,103,007  
           
 (1)Includes stock-based compensation expense of the following for the periods presented:       
           
 Research and development $  481  $  530  $  1,457  $  1,776  
 Sales, general and administrative   1,327     1,726     4,191     5,188  
   $  1,808  $  2,256  $  5,648  $  6,964  
           
 (2)For the third quarter of 2016 and 2015, the Company recorded a non-cash loss from revaluation of its derivative liabilities, which was 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 increased in the third quarter of 2016 and 2015 primarily as a result of an increase in Amyris's stock price since June  30, 2016 and 2015,  respectively. 
     
 (3)Other income (expense), net for the nine months of 2015 includes $36.6 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 Nine Months Ended 
   September 30,
2016
 September 30,
2015
 September 30,
2016
 September 30,
2015
 
           
Net loss attributable to Amyris, Inc. common stockholders (GAAP)$  (19,704) $  (76,664) $  (48,579) $  (176,034) 
 Loss on purchase commitments and impairment of         
   property, plant, and equipment   -      7,259     -      7,259  
 Stock-based compensation expense   1,808     2,256     5,648     6,964  
 Issuance of warrants with collaboration agreement   416     -      416     -   
 Gain from change fair in value of derivative & debt extinguishment   1,003     27,674     (40,960)    16,252  
 Acceleration of debt discount accretion associated with the debt         
 conversion transaction   -      7,147     -      43,717  
Net loss attributable to Amyris, Inc. common stockholders (Non-GAAP)$   (16,477) $   (32,328) $   (83,475) $   (101,842) 
           
Net loss per share attributable to Amyris, Inc. common stockholders,        
  basic (GAAP) $  (0.08) $  (0.55) $  (0.21) $  (1.76) 
 Loss on purchase commitments and impairment of         
   property, plant, and equipment   -     0.05     -     0.07  
 Stock-based compensation expense   0.01     0.02     0.02     0.07  
 Issuance of warrants with collaboration agreement   0.00     -     0.00     -  
  Gain (loss) from change fair in value of derivative & debt extinguishment   0.00     0.20     (0.18)    0.16  
 Acceleration of debt discount accretion associated with the debt         
 conversion transaction   -     0.05     -     0.44  
Net loss per share attributable to Amyris, Inc. common stockholders,        
  (Non-GAAP) $   (0.07) $   (0.23) $   (0.37) $   (1.02) 
           

 

Amyris, Inc.          
Reconciliation of GAAP to Non-GAAP Financial Information         
(Unaudited)         
(In thousands)         
            
    Three Months Ended Nine Months Ended 
    September 30,
2016
 September 30,
2015
 September 30,
2016
 September 30,
2015
 
            
Product sales (GAAP & Non-GAAP)         
 Renewables $  6,820  $  4,228  $  14,883  $  9,663  
Product sales (GAAP & Non-GAAP) $   6,820   $   4,228   $   14,883   $   9,663   
            
Grants and collaborations revenue (GAAP) $  19,724  $  4,363  $  30,071  $  14,643  
 Change in accounts receivable, deferred revenue and fundings associated          
  with collaborations    (1,515)    (2,763)    (2,251)    17,002  
Collaborations Inflows (Non- GAAP) (1) $   18,209   $   1,600   $   27,820   $   31,645   
            
Total Revenues (GAAP) $  26,544  $  8,591  $  44,954  $  24,306  
 Change in accounts receivable, deferred revenue and fundings associated          
  with collaborations    (1,515)    (2,763)    (2,251)    17,002  
Total Cash Revenue Inflows (Non-GAAP) (1) $   25,029   $   5,828   $   42,703   $   41,308   
            
Costs of products sold (GAAP) $  14,876  $  8,455  $  33,945  $  26,057  
 Other costs/provisions    (3,240)    1,808     (5,135)    221  
 Excess capacity    (304)    (1,895)    (4,481)    (7,069) 
 Depreciation and amortization    (986)    (1,029)    (2,715)    (3,431) 
Costs of products sold (Non- GAAP) $   10,346   $   7,339   $   21,614   $   15,778   
            
 Adjusted Gross Profit (Non- GAAP) (2) $   16,198   $   1,252   $   23,340   $   8,528   
 Gross Margin (%) (2)  61.0%  14.6%  51.9%  35.1% 
            
Research and development (GAAP) $  12,315  $  10,343  $  37,397  $  33,521  
 Stock-based compensation expense    (481)    (530)    (1,457)    (1,776) 
 Issuance of warrants with collaboration agreement    (416)    -      (416)    -   
 Depreciation and amortization    (1,607)    (1,775)    (5,085)    (5,507) 
Research and development (Non-GAAP) $   9,811   $   8,038   $   30,439   $   26,238   
            
Sales, general and administrative (GAAP) $  11,381  $  14,103  $  35,055  $  42,859  
 Stock-based compensation expense    (1,327)    (1,726)    (4,191)    (5,188) 
 Depreciation and amortization    (274)    (314)    (839)    (1,071) 
Sales, general and administrative (Non-GAAP) $   9,780   $   12,063   $   30,025   $   36,600   
            
            
            
 (1)The largest differences between the GAAP and non-GAAP collaborations numbers are (i) timing of revenue recognition. 

The nine months ended September 30, 2016 and 2015, includes zero and $10.8 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.
 
 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. 
 (2) 
            

 

Contact:

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