Continued progress at Solazyme Bunge
Renewable Oils plant
Solazyme, Inc. (NASDAQ: SZYM), a renewable oil and bioproducts
company, announced today results for the fourth quarter and full
year ended December 31, 2014.
“Although 2014 was a challenging year, we made great strides
against our commercialization and production goals, including
launching Encapso™ and our AlgaVia™ microalgae food ingredients,
and starting up operations at our Clinton/Galva and SB Oils Moema
facilities,” said Jonathan Wolfson, CEO of Solazyme. “We ended 2014
by demonstrating fully integrated operations at Moema and are
confident that we will turn the corner to consistent and reliable
operations as well. We have great technology, products and partners
and though there is hard work in front of us we are excited about
our opportunities and the year ahead.”
Financial Results
Total revenue for the fourth quarter of 2014 was $14.5 million
compared with $11.3 million in the fourth quarter of 2013, an
increase of 29%. Fourth quarter GAAP net loss was $44.9 million
compared to a net loss of $33.3 million in the prior year period.
On a non-GAAP basis, the net loss was $35.5 million for the fourth
quarter of 2014 compared to a net loss of $27.4 million in the
prior year quarter. A reconciliation of GAAP to non-GAAP results is
included below.
Total revenue for the year ended December 31, 2014 was $60.4
million compared with $39.8 million in the prior year, an increase
of 52%, with the product revenue component of that up 87% versus
the prior year. Full year 2014 GAAP net loss was $162.1 million,
compared with $116.4 million loss in the prior year. On a non-GAAP
basis, the net loss was $133.4 million for 2014, compared with
$88.6 million in 2013.
“Solazyme’s 2014 revenue growth reflects the continued expansion
of our Algenist® product line, shipments from Clinton/Galva and
Peoria of Encapso™ and AlgaVia™ branded products, as well as
delivery against all of our joint development milestones for our
partners,” said Tyler Painter, COO and CFO of Solazyme. “We are
focused on maximizing the returns on our capacity investments and
driving efficiencies across our operations. We are well positioned
financially to accelerate the commercialization of our products in
2015.”
Business Review
- Moema: In December, we
demonstrated the ability to operate on a fully integrated basis at
Moema, achieving a major technical milestone for the company by
demonstrating integrated operations from input sugar to crude oil.
Our goal at Moema in 2015 is to reach consistent fully integrated
operations and ramp production volumes.
- Clinton/Galva: We began
commercial production in Clinton and Galva and successfully
produced five unique products during the course of the year.
- Encapso™: Solazyme introduced
Encapso™, the world’s first commercially-available, biodegradable
encapsulated oil for use as a lubricant in drilling fluids.
Commercial rig results have confirmed that Encapso™ delivered
operational improvements such as reductions in torque, increases in
drilling speed, and reductions in non-productive time during use in
37 commercial wells.
- AlgaVia™: In 2014, we launched
our microalgae food ingredients business under the AlgaVia™ brand
name. The lipid and protein powders, as well as our high oleic
algae oil, are Generally Recognized as Safe (GRAS) in the US and
have received “No Questions” letters from the FDA.
- Partner Developments: In 2014,
we made our first deliveries under a 10k MT supply agreement and
extended our Joint Development Agreement (JDA) with Unilever;
expanded our JDA and established key terms for a five year supply
agreement targeting up to 10k MT/year with AkzoNobel; partnered
with Versalis to commercialize Encapso™; and met all JDA targets
with Mitsui.
Conference Call
Solazyme will hold a conference call for investors on February
26, 2015 at 1:30 p.m. PT (4:30 p.m. ET). Investors may access the
call by dialing 973-409-9250. A live webcast of the call will be
available from the Investor Relations section of www.solazyme.com.
A recording of the call will also be available by calling
404-537-3406; access code 82746845 beginning approximately two
hours after the call, and will be available for one week. A webcast
replay from today’s call will also be available from the Investor
Relations section of www.solazyme.com approximately two hours after
the call and will be available for up to thirty days.
About Solazyme, Inc.
Solazyme, Inc. (Nasdaq:SZYM) is the leading microalgae innovator
that delivers first-of-a-kind, high-performance oils and
ingredients that are better for people and better for the planet.
Starting with microalgae, the world's original oil producer,
Solazyme creates new, sustainable, high-performance products. These
include renewable oils and ingredients that serve as the foundation
for healthier foods; better home, personal care and industrial
products; and more sustainable fuels. Headquartered in South San
Francisco, Solazyme's mission is to solve some of the world's
biggest problems with one of its smallest and most ancient life
forms: microalgae.
Solazyme®, AlgaVia™, Encapso™, the Solazyme logo and other
trademarks or service names are the trademarks of Solazyme,
Inc.
Non-GAAP Financial Measures
This press release includes the following financial measures
defined as a “non-GAAP financial measures” by the Securities and
Exchange Commission: non-GAAP net loss and non-GAAP net loss per
share. These measures may be different from non-GAAP financial
measures used by other companies. The presentation of this
financial information, which is not prepared under any
comprehensive set of accounting rules or principles, is not
intended to be considered in isolation or as a substitute for the
financial information prepared and presented in accordance with
generally accepted accounting principles. For a reconciliation of
these non-GAAP financial measures to the nearest comparable GAAP
measures, see “Reconciliation of GAAP to Non-GAAP Net Loss and Net
Loss Per Share” included in the tables to this press release.
These non-GAAP measures are provided to enhance investors’
overall understanding of Solazyme’s current financial performance
and Solazyme’s prospects for the future. Specifically, Solazyme
believes non-GAAP measures provide useful information to both
management and investors by excluding certain expenses that may not
be indicative of its core operating results and business
outlook.
For its internal budgeting process, Solazyme’s management uses
financial measures that do not include stock-based compensation
expense or special expenses such as non-cash gains or losses due to
warrant revaluations. In addition to the corresponding GAAP
measures, Solazyme’s management also uses the foregoing non-GAAP
measure in reviewing the financial results of Solazyme. Solazyme
excludes stock-based compensation expenses and special non-cash
charges from its non-GAAP measures primarily because they are
non-cash expenses that management does not believe are reflective
of ongoing operating results.
Forward Looking Statements
This press release contains certain forward-looking statements
within the meaning of the Private Securities Litigation Reform Act
of 1995 about Solazyme, including statements that involve risks and
uncertainties concerning: its commercialization and production
plans; the commissioning of equipment and the ramping up and
optimization of facilities; meeting commercialization and
technology targets; successful product trials and market acceptance
of its products; and Solazyme’s ability to maintain its
relationships with its partners. When used in this press release,
the words “will”, “expects”, “intends” and other similar
expressions and any other statements that are not historical facts
are intended to identify those assertions as forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. Any such statement may be influenced by a
variety of factors, many of which are beyond the control of
Solazyme, that could cause actual outcomes and results to be
materially different from those projected, described, expressed or
implied in this press release due to a number of risks and
uncertainties. Potential risks and uncertainties include, among
others: Solazyme’s limited operating history; its limited history
in commercializing products; implementation risk in deploying new
technologies; its limited experience in constructing, ramping up,
optimizing and operating commercial manufacturing facilities; its
ability to sell its products at a profit; delays related to
construction, start-up, ramp-up and optimization of production
facilities; its ability to manage costs, including operational
costs at production facilities; its ability to enter into and
maintain strategic collaborations; successful product trials by its
customers and market acceptance of its products by end-users; its
ability to obtain requisite regulatory approvals; and its access,
on favorable terms, to any required financing. Accordingly, no
assurances can be given that any of the events anticipated by the
forward-looking statements will transpire or occur, or if any of
them do so, what impact they will have on the results of operations
or financial condition of Solazyme.
In addition, please refer to the documents that Solazyme, Inc.
files with the Securities and Exchange Commission, including its
Quarterly Reports on Form 10-Q, as updated from time to time, for a
discussion of these and other risks. You are cautioned not to place
undue reliance on forward-looking statements, which speak only as
of the date of this press release. Solazyme is not under any duty
to update any of the information in this press release.
SOLAZYME, INC. CONDENSED CONSOLIDATED STATEMENTS
OF OPERATIONS In thousands, except per share amounts
(UNAUDITED)
Three Months Ended
December 31, Twelve Months Ended December 31,
2014 2013 2014 2013
Revenues
Product revenues $ 9,353 $ 6,250 $ 37,346 $ 19,962 Research and
development programs 5,149 5,024
23,045 19,788 Total revenues
14,502
11,274 60,391 39,750
Costs and
operating expenses (1)
Cost of product revenue 6,154 1,985 20,612 6,385 Research and
development 18,210 20,381 81,680 66,572 Sales, general and
administrative 22,139 16,923 90,266 62,933 Restructuring charges
3,514 - 3,514 -
Total costs and operating expenses
50,017
39,289 196,072 135,890
Loss from operations
(35,515 ) (28,015
) (135,681 ) (96,140 )
Other income
(expense) (2)
Interest and other income (expense), net (3,205 ) (1,191 ) (12,167
) (5,767 ) Loss from equity method investments (7,724 ) (2,696 )
(23,037 ) (8,237 ) Gain from change in fair value of warrant
liability - 572 688 147 Gain (loss) from change in fair value of
derivative liabilities 1,578 (2,006 )
8,056 (6,392 ) Total other income (expense)
(9,351 ) (5,321 ) (26,460
) (20,249 ) Net
loss $ (44,866 ) $ (33,336
) $ (162,141 ) $ (116,389
) Net loss per share - basic and diluted $
(0.57 ) $ (0.49 ) $
(2.14 ) $ (1.81 )
Weighted average number of common shares used in net loss per
share computation - basic and diluted 79,330
68,453 75,879 64,212
SOLAZYME, INC. RECONCILIATION OF GAAP TO NON-GAAP NET
LOSS AND NET LOSS PER SHARE In thousands, except per share
amounts (UNAUDITED)
Three Months
Ended December 31, Twelve Months Ended
December 31, 2014 2013 2014 2013
Net loss $ (44,866 ) $ (33,336 ) $ (162,141 ) $ (116,389 )
Gain from change in fair value of warrant liability - (572 ) (688 )
(147 ) (Gain) loss from change in fair value of derivative
liabilities (1,578 ) 2,006 (8,056 ) 6,392 (1) Operating expenses
includes costs as follows: Research and development 1,736 1,806
7,407 5,917 Sales, general and administrative 5,120
2,395 18,142 12,736 Total
stock-based compensation expense 6,856 4,201 25,549 18,653
Litigation settlement, net of insurance reimbursement (8 ) - 4,499
- Restructuring charges 3,514 - 3,514 - (2) Other income (expense)
includes costs as follows: Amortization of debt discount and
issuance costs 612 281 2,206 1,529 Debt conversion expense - -
1,766 - Dissolution of the Solazyme Roquette JV -
- - 1,406
Net loss
(non-GAAP) $ (35,470 ) $
(27,420 ) $ (133,351 ) $
(88,556 ) Net loss per share (GAAP) - basic
and diluted $ (0.57 ) $ (0.49 ) $ (2.14 ) $ (1.81 ) Gain
from change in fair value of warrant liability - (0.01 ) (0.01 ) -
(Gain) loss from change in fair value of derivative liabilities
(0.02 ) 0.03 (0.11 ) 0.10 Stock-based compensation expense 0.09
0.07 0.34 0.29 Litigation settlement, net of insurance
reimbursement - - 0.06 - Restructuring charges 0.04 - 0.05 -
Amortization of debt discount and issuance costs 0.01 - 0.03 0.02
Debt conversion expense - - 0.02 - Dissolution of the Solazyme
Roquette JV - - -
0.02
Net loss per share (non-GAAP) - basic and
diluted $ (0.45 ) $ (0.40
) $ (1.76 ) $ (1.38
) SOLAZYME, INC. CONDENSED
CONSOLIDATED BALANCE SHEETS In thousands (UNAUDITED)
December 31, December 31, 2014
2013
Assets
Current
assets
Cash, cash equivalents and marketable securities $ 207,308 $
167,521 Other current assets 26,619 24,296
Total
current assets 233,927 191,817 Property, plant
and equipment - net 36,080 40,089 Other assets 42,582
26,799
Total assets $ 312,589 $
258,705
Liabilities and
stockholders' equity
Current
liabilities
Current portion of long-term debt $ 6 $ 65 Other current
liabilities 23,448 25,229
Total current
liabilities 23,454 25,294 Other liabilities 2,668
1,006 Long-term debt 200,091 93,457
Total
liabilities 226,213 119,757
Total stockholders' equity 86,376
138,948 Total liabilities and stockholders' equity
$ 312,589 $ 258,705
Solazyme, Inc.Corporate Communications:Genet
Garamendipress@solazyme.comorBrainerd Communicators, Inc.Mike
SmargiassiBrad
Edwards212-986-6667smarg@braincomm.comedwards@braincomm.com