We lead the synthetic biology industry, having developed and successfully commercialized the most Lab-to-Market™ ingredients. Our sustainable ingredients are used in thousands of top global brands, including our own family of consumer brands in Clean Beauty and Health markets.
EMERYVILLE, Calif., Nov. 5, 2015 (GLOBE NEWSWIRE) -- Amyris, Inc. (Nasdaq:AMRS), the industrial bioscience company, today announced financial results for the third quarter ended September 30, 2015.
"During the third quarter, we continued to execute on our plan, including improving our balance sheet while growing our collaborations pipeline with the signing of a key agreement with DARPA, and we continued to lower our cash costs," said John Melo, Amyris President & CEO. "We also achieved breakthrough fermentation performance with our second fragrance molecule, which we began manufacturing in September and which we expect to make a strong contribution to our fourth-quarter product revenues."
"We are tracking a number of collaborations opportunities that, when combined with a sequential acceleration in product revenue in the fourth quarter should have Amyris on track to complete a solid 2015," continued Melo. "We are also highly focused on continuing to improve our financial performance which, when combined with our strong growth in Personal Care ingredients and High Performance specialty chemicals, will help set the stage for 2016 to be a positive free cash flow year for the company."
Business Highlights
Other key operating and development highlights during the third quarter and, more recently, included:
Collaborations
Personal Care
Performance Chemicals
Financial Performance
Third Quarter 2015
Nine Months Ended September 30, 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, stock-based compensation, gains and losses from changes in fair value of derivatives and losses on debt extinguishment and acceleration of debt discount accretion.
Cash revenue inflows represent GAAP product revenue plus the cash received from collaborations and grants. Cash revenue inflows are 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), cash revenue inflows, 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: 65063680.
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 potential amounts of revenue that could be recognized by Amyris under contract with DARPA, shipment of a second fragrance ingredient product in the fourth quarter and the positive impact of such shipment on fourth quarter revenues, expectations for record fourth quarter product revenues, outlook for the full year 2015, an expectation for 2016 to be a positive free cash flow year, benefits of a DARPA contract for the company's technology platform, the possibility of a cosmetic distribution partnership contemplated by a memorandum of understanding, and anticipated performance and cost advantages of Amyris products, 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 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, liquidity and ability to fund operating and capital expenses, Amyris's reliance on third parties to achieve its goals, and other risks detailed in the "Risk Factors" section of Amyris's annual report on Form 10-Q filed on August 10, 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) | ||
September 30, | December 31, | |
2015 | 2014 | |
Assets | ||
Current assets: | ||
Cash, cash equivalents and short-term investments | $ 11,898 | $ 43,422 |
Restricted cash | 215 | -- |
Accounts receivable, net | 3,806 | 8,687 |
Related party accounts receivable | 575 | 455 |
Inventories, net | 11,102 | 14,506 |
Prepaid expenses and other current assets | 7,034 | 6,534 |
Total current assets | 34,630 | 73,604 |
Property, plant and equipment, net | 81,941 | 118,980 |
Restricted cash | 957 | 1,619 |
Equity and loans in affiliate | 1,815 | 2,260 |
Other assets | 9,591 | 13,635 |
Goodwill and intangible assets | 6,085 | 6,085 |
Total assets | $ 135,019 | $ 216,183 |
Liabilities and stockholders' deficit | ||
Current liabilities: | ||
Accounts payable | $ 11,275 | $ 3,489 |
Deferred revenue | 9,204 | 5,303 |
Accrued and other current liabilities | 16,832 | 13,565 |
Capital lease obligation, current portion | 555 | 541 |
Debt, current portion | 20,902 | 17,100 |
Total current liabilities | 58,768 | 39,998 |
Capital lease obligation, net of current portion | 280 | 275 |
Long-term debt, net of current portion | 90,532 | 100,122 |
Related party debt | 42,401 | 115,239 |
Deferred rent, net of current portion | 9,845 | 10,250 |
Deferred revenue, net of current portion | 4,462 | 6,539 |
Derivative liabilities | 62,966 | 59,736 |
Other liabilities | 7,230 | 9,087 |
Total liabilities | 276,484 | 341,246 |
Amyris, Inc. stockholders' deficit | (141,169) | (124,452) |
Noncontrolling interest | (296) | (611) |
Total stockholders' deficit | (141,465) | (125,063) |
Total liabilities and stockholders' deficit | $ 135,019 | $ 216,183 |
Amyris, Inc. | ||||
Condensed Consolidated Statement of Operations | ||||
(Unaudited) | ||||
(In thousands, except per share data) | ||||
Three Months Ended | Nine Months Ended | |||
September 30, 2015 |
September 30, 2014 |
September 30, 2015 |
September 30, 2014 |
|
Revenues | ||||
Renewables | $ 4,226 | $ 11,112 | $ 9,661 | $ 18,333 |
Related party renewables | 2 | 368 | 2 | 402 |
Total product sales | 4,228 | 11,480 | 9,663 | 18,735 |
Grants and collaborations revenue | 4,363 | 4,861 | 14,643 | 12,954 |
Total revenues | 8,591 | 16,341 | 24,306 | 31,689 |
Costs and operating expenses | ||||
Cost of products sold | 8,455 | 10,146 | 26,057 | 23,893 |
Loss on purchase commitments and impairment of property, plant, and equipment | 7,259 | 952 | 7,259 | 1,111 |
Research and development (1) | 10,343 | 12,181 | 33,521 | 37,342 |
Sales, general and administrative (1) | 14,103 | 14,356 | 42,859 | 41,726 |
Total costs and operating expenses | 40,160 | 37,635 | 109,696 | 104,072 |
Loss from operations | (31,569) | (21,294) | (85,390) | (72,383) |
Other income (expense): | ||||
Gain (loss) from change in fair value of derivatives & debt extinguishment (2) | (27,674) | (6,000) | (16,252) | 37,636 |
Other income (expense), net | (16,666) | (8,466) | (72,026) | (19,721) |
Total other income (expense) | (44,340) | (14,466) | (88,278) | 17,915 |
Loss before income taxes and loss from investments in affiliates | (75,909) | (35,760) | (173,668) | (54,468) |
Provision for income taxes | (119) | (134) | (355) | (370) |
Net loss before loss from investments in affiliates | (76,028) | (35,894) | (174,023) | (54,838) |
Loss from investments in affiliates | (660) | (778) | (2,089) | (988) |
Net loss | $ (76,688) | $ (36,672) | $ (176,112) | $ (55,826) |
Net loss attributable to noncontrolling interest | 24 | 31 | 78 | 91 |
Net loss attributable to Amyris, Inc. common stockholders | $ (76,664) | $ (36,641) | $ (176,034) | $ (55,735) |
Net loss per share attributable to common stockholders, basic | $ (0.55) | $ (0.46) | $ (1.76) | $ (0.71) |
Net loss per share attributable to common stockholders, diluted | $ (0.55) | $ (0.46) | $ (1.76) | $ (0.94) |
Weighted-average shares of common stock outstanding used in computing net loss per share of common stock: | ||||
Basic | 140,374,297 | 78,980,402 | 100,103,007 | 78,146,365 |
Diluted | 140,374,297 | 78,980,402 | 100,103,007 | 111,114,801 |
(1) Includes stock-based compensation expense of the following for the periods presented: | ||||
Research and development | $ 530 | $ 915 | $ 1,776 | $ 2,622 |
Sales, general and administrative | 1,726 | 2,657 | 5,188 | 8,147 |
$ 2,256 | $ 3,572 | $ 6,964 | $ 10,769 | |
(2) For the third quarter of 2015, the Company recorded a non-cash loss from revaluation of its derivative liabilities of $21.7 million and a loss on extinguishment of debt of $6.0 million. The loss on derivative liabilities was primarily due to the reset of conversion prices in certain convertible notes and an additional derivative feature as a result of the private offering completed on July 29, 2015. The loss on extinguishment of debt is due to the impact of the the Exchange and Maturity Treatment Agreements which completed on July 29, 2015. | ||||
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, 2015 |
September 30, 2014 |
September 30, 2015 |
September 30, 2014 |
|
Net loss attributable to Amyris, Inc. common stockholders (GAAP) | $ (76,664) | $ (36,641) | $ (176,034) | $ (55,735) |
Loss on purchase commitments and impairment of property, plant, and equipment | 7,259 | 952 | 7,259 | 1,111 |
Stock-based compensation expense | 2,256 | 3,572 | 6,964 | 10,769 |
(Gain) loss from change fair in value of derivatives & debt extinguishment | 27,674 | 6,000 | 16,252 | (37,636) |
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) | $ (32,328) | $ (26,117) | $ (101,842) | $ (81,491) |
Net loss per share attributable to Amyris, Inc. common stockholders, basic (GAAP) | $ (0.55) | $ (0.46) | $ (1.76) | $ (0.71) |
Loss on purchase commitments and impairment of property, plant, and equipment | $ 0.05 | $ 0.01 | $ 0.07 | $ 0.01 |
Stock-based compensation expense | $ 0.02 | $ 0.04 | $ 0.07 | $ 0.14 |
Gain (loss) from change fair in value of derivative & debt extinguishment | $ 0.20 | $ 0.08 | $ 0.16 | $ (0.48) |
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) | $ (0.23) | $ (0.33) | $ (1.02) | $ (1.04) |
Amyris, Inc. | ||||
Reconciliation of GAAP to Non-GAAP Financial Information | ||||
(Unaudited) | ||||
(In thousands) | ||||
Three Months Ended | Nine Months Ended | |||
September 30, 2015 |
September 30, 2014 |
September 30, 2015 |
September 30, 2014 |
|
Product sales (GAAP & Non-GAAP) | ||||
Renewables | $ 4,228 | $ 11,480 | $ 9,663 | $ 18,735 |
Product sales (GAAP & Non-GAAP) | $ 4,228 | $ 11,480 | $ 9,663 | $ 18,735 |
Grants and collaborations revenue (GAAP) | $ 4,363 | $ 4,861 | $ 14,643 | $ 12,954 |
Change in accounts receivable, deferred revenue and fundings associated with collaborations | (2,763) | 10,821 | 17,002 | 21,570 |
Collaborations Inflows (Non- GAAP) (1) | $ 1,600 | $ 15,682 | $ 31,645 | $ 34,524 |
Total Revenues (GAAP) | $ 8,591 | $ 16,341 | $ 24,306 | $ 31,689 |
Change in accounts receivable, deferred revenue and fundings associated with collaborations | (2,763) | 10,821 | 17,002 | 21,570 |
Total Cash Revenue Inflows (Non-GAAP) (1) | $ 5,828 | $ 27,162 | $ 41,308 | $ 53,259 |
Research and development (GAAP) | $ 10,343 | $ 12,181 | $ 33,521 | $ 37,342 |
Stock-based compensation expense | (530) | (915) | (1,776) | (2,623) |
Depreciation and amortization | (1,775) | (1,925) | (5,507) | (5,886) |
Research and development (Non-GAAP) | $ 8,038 | $ 9,341 | $ 26,238 | $ 28,833 |
Sales, general and administrative (GAAP) | $ 14,103 | $ 14,356 | $ 42,859 | $ 41,726 |
Stock-based compensation expense | (1,726) | (2,657) | (5,188) | (8,146) |
Depreciation and amortization | (314) | (427) | (1,071) | (1,188) |
Sales, general and administrative (Non-GAAP) | $ 12,063 | $ 11,272 | $ 36,600 | $ 32,392 |
(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 three months ended September 30, 2015 and 2014, includes zero and $10.9 million, respectively, and the nine months ended September 30, 2015 and 2014, includes $10.9 million 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. |
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