Amyris Reports First Quarter 2015 Financial Results
May 05 2015 - 4:00PM
- Total first-quarter 2015 non-GAAP cash revenue inflows of $30.3
million, compared with $17.9 million for first quarter of 2014
- Total first-quarter 2015 revenues of $7.9 million, an increase
of 30% compared with same quarter last year
- Total first-quarter 2015 combined research & development
and sales, general & administrative expenses of $26.4 million,
essentially flat compared with first quarter of 2014
- Cash, cash equivalents and short-term investments of $44.9
million at March 31, 2015, an increase from $43.4 million at
December 31, 2014.
Amyris, Inc. (Nasdaq:AMRS), the industrial bioscience company,
today announced financial results for the first quarter ended March
31, 2015.
"We're pleased with our continued execution toward diversifying
and growing our revenue base through an expanding number of
collaborations and product commercialization efforts," said John
Melo, Amyris President & CEO. "During the quarter – and, more
recently – we announced several key examples of these efforts,
including several market opportunities in the cosmetics, biopharma
and performance materials areas of our business. We are also seeing
signs of increased end-user demand pull through in cosmetics for
our squalane product as customer demand reported from our
formulation partners is exceeding expectations."
Continued Melo, "We're experiencing strong early response and
acceptance of our new product introductions and expect a strong
second half in product revenue and collaboration inflows with
strong support for delivering on our 2015 cash revenue inflows
target of between $100 million to $110 million."
BUSINESS HIGHLIGHTS
Key operating and development highlights during the first
quarter and, more recently, included:
Sales & Collaboration
- Progress toward planned Q2 product launches for new Muck Daddy™
hand cleaner and Biossance™ skin care products and − on April 30,
2015 − hosted an event previewing the upcoming launch of our
Biossance product line (www.biossance.com) at Amyris's
headquarters. Completed a successful early product introduction of
Muck Daddy in Denver.
- Continued building a solid collaborations pipeline during the
quarter, including a letter of intent signed in the second quarter
with Fosun Pharma, a large Chinese pharmaceutical company to
establish agreements for Amyris to supply current production
molecules and to develop additional targets of interest for this
partner.
- Achieved key collaboration milestones in flavors and fragrances
and isoprene collaborations.
- Announced plans to distribute Amyris's first industrial
cleaning products containing the company's Myralene™ renewable
solvents through U.S. Autoforce and U.S. Lubricants, both divisions
of U.S. Venture, Inc. (USV) − a leading distributor of petroleum
and renewable energy products, lubricants, and tires and parts for
the automotive aftermarket – to enable Amyris's high-performance
renewable industrial cleaning products to gain visibility and
market access to over 35,000 automotive aftermarket and industrial
outlets served by USV.
- Announced agreement with Netherlands-based Squalan Natural
Health to accelerate development and sales for Amyris's
Neossance® squalane-based skin care and personal
care products in order to market and sell these products to
retailers and consumers primarily in the European Union.
- Entered into agreement with Genome Compiler Corp., a leader in
computer aided design and collaboration platforms for the synthetic
biology industry, to integrate Amyris's automated lab service with
Genome Compiler's online design tools and e-commerce platform to
enable customers in the pharma and biotech industries to leverage a
comprehensive platform for all their synthetic biology development
needs.
Production
- Q1 production was limited as a result of previously announced
upgrades to Brotas plant during seasonal shutdown.
- Since the quarter end, Brotas has restarted and is operating
well and meeting, or exceeding, our operational targets.
Financial Performance
- Exceeded plan in generating positive cash flow of $1.7 million
in the first quarter despite negative currency effect of $1.2
million.
- Cash revenue inflows, a non-GAAP measure, totaled $30.3 million
for the first quarter of 2015. Collaboration and grants inflows
increased from $15.0 million for the first quarter of 2014 to $28.2
million for the first quarter of 2015.
- Generated total revenues for the first quarter of 2015 of $7.9
million, an increase of 30% over total revenues of $6.0 million for
the first quarter of 2014, driven mainly by the achievement of
collaboration milestones and the timing of revenue recognition
related to previous collaboration payments. Collaboration and
grants revenues contributed $5.8 million of total revenues for the
quarter, compared to $3.2 million for the first quarter of
2014.
- Generated product sales of $2.1 million, down 26% compared to
the same period a year ago, primarily due to decreased flavors and
fragrances and diesel fuel product sales. Sales from distributor
inventories continued at strong pace and should provide for strong
second-half products revenues.
- During the first quarter of 2015, cost of products sold was
$6.6 million, compared to $6.2 million for first-quarter 2014. The
increase in cost of products sold for the first quarter of 2015 was
driven by a first-quarter 2014 inventory reserve reversal, as well
as to higher excess capacity charged in Q1 of 2015 related to the
planned seasonal shutdown of the company's production facilities
for upgrades and maintenance. With the plant utilization increasing
significantly from mid April we expect to realize the benefit of
lower-cost production in our facilities in the second-half of the
year, once higher-cost inventories are sold.
- Combined research & development and sales, general &
administrative expenses for the first quarter of 2015 were $26.4
million, essentially flat compared to the same period a year ago.
On a non-GAAP basis, excluding non-cash items such as stock
compensation, depreciation and amortization, operating expenses
were $21.5 million for the first quarter of 2015 and $20.4 million
for the first quarter of 2014. The increase was a result of
personnel-related expense from the hiring of a sales and marketing
force to support the company's product commercialization plans, as
well as a severance-related charge.
- Net loss attributable to Amyris common stockholders for the
first quarter of 2015 was $52.2 million, or $0.66 per share (basic
and diluted), which includes a non-cash loss related to a change in
fair value of derivatives of $17.4 million, or $0.22 per basic and
diluted share. Net income attributable to common stockholders for
the first quarter of 2014 was $16.4 million, or $0.21 per basic
share and, on a diluted-share basis, the company posted a net loss
per share of $0.34. Adjusted net loss, excluding stock-based
compensation, gains and losses from changes in fair value of
derivatives and losses on debt extinguishment attributable to
Amyris common stockholders for the first quarter of 2015 was $32.2
million, or $0.41 per share, compared to an adjusted net loss of
$28.1 million, or $0.37 per share, for the same period of
2014.
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 stock-based compensation, gains and losses from
changes in fair value of derivatives and losses on debt
extinguishment.
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.
CONFERENCE CALL
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 a live audio webcast of this conference
call and accompanying presentation 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
and will remain available for approximately 60 calendar days.
About Amyris
Amyris is a global renewable products company providing
sustainable alternatives to a variety of non-renewable resources.
Amyris uses its innovative bioscience technology to convert plant
sugars into hydrocarbon molecules. Amyris creates ingredients and
is commercializing its No Compromise® products in the flavors and
fragrances, cosmetics, specialty fluids, polymers, lubricants, and
fuels industries. 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 expectations for new collaborations and expansion to
new markets, including development of biopharmaceutical
collaborations and new products, anticipated revenue growth and
diversification in 2015, the company's efforts to reduce operating
expenses while improving its financial results, anticipated
business momentum in the second half of 2015, reductions in
production costs, and achievement of positive cash flow from
operations, 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 annual
report on Form 10-K filed on March 31, 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,Neossance, Biossance, Muck Daddy, and
Myralene are trademarks or registered trademarks of Amyris, Inc.
All other trademarks are the property of their respective
owners.
Amyris,
Inc. |
Condensed Consolidated
Balance Sheets |
(Unaudited) |
(In
thousands) |
|
|
|
|
March 31, |
December 31, |
|
2015 |
2014 |
|
|
|
Assets |
|
|
Current assets: |
|
|
Cash, cash equivalents and short-term
investments |
$ 44,948 |
$ 43,422 |
Restricted cash |
561 |
— |
Accounts receivable, net |
4,674 |
8,687 |
Related party accounts receivable |
688 |
455 |
Inventories, net |
11,377 |
14,506 |
Prepaid expenses and other current
assets |
7,052 |
6,534 |
Total current assets |
69,300 |
73,604 |
Property, plant and equipment, net |
104,509 |
118,980 |
Restricted cash |
957 |
1,619 |
Equity and loans in affiliates |
1,627 |
2,260 |
Other assets |
10,576 |
13,635 |
Goodwill and intangible assets |
6,085 |
6,085 |
Total assets |
$ 193,054 |
$ 216,183 |
|
|
|
Liabilities and stockholders'
deficit |
|
|
Current liabilities: |
|
|
Accounts payable |
$ 4,649 |
$ 3,489 |
Deferred revenue |
13,552 |
5,303 |
Accrued and other current
liabilities |
14,978 |
13,565 |
Capital lease obligation, current
portion |
277 |
541 |
Debt, current portion |
18,193 |
17,100 |
Total current liabilities |
51,649 |
39,998 |
Capital lease obligation, net of current
portion |
254 |
275 |
Long-term debt, net of current portion |
93,132 |
100,122 |
Related party debt |
131,129 |
115,239 |
Deferred rent, net of current portion |
10,139 |
10,250 |
Deferred revenue, net of current portion |
7,793 |
6,539 |
Derivative liabilities |
76,577 |
59,736 |
Other liabilities |
8,299 |
9,087 |
Total liabilities |
378,972 |
341,246 |
|
|
|
Amyris, Inc. stockholders' deficit |
(185,552) |
(124,452) |
Noncontrolling interest |
(366) |
(611) |
Total stockholders' deficit |
(185,918) |
(125,063) |
|
|
|
Total liabilities and stockholders'
deficit |
$ 193,054 |
$ 216,183 |
|
|
Amyris,
Inc. |
Condensed Consolidated
Statement of Operations |
(Unaudited) |
(In thousands, except per
share data) |
|
Three Months Ended |
|
March 31, 2015 |
March 31, 2014 |
Revenues |
|
|
Renewables |
$ 2,095 |
$ 2,842 |
Related party renewables |
-- |
3 |
Total product sales |
2,095 |
2,845 |
Grants and collaborations revenue |
5,777 |
3,196 |
Total grants and collaborations
revenue |
5,777 |
3,196 |
Total revenues |
7,872 |
6,041 |
Costs and operating expenses |
|
|
Cost of products sold |
6,643 |
6,236 |
Loss on purchase commitments and write
off of property, plant, and equipment |
-- |
107 |
Research and development (1) |
12,010 |
12,986 |
Sales, general and administrative
(1) |
14,381 |
13,399 |
Total costs and operating expenses |
33,034 |
32,728 |
Loss from operations |
(25,162) |
(26,687) |
Other income (expense): |
|
|
Gain (loss) from change in fair value of
derivatives & debt extinguishment (2) |
(17,412) |
47,970 |
Other expense, net |
(8,765) |
(4,816) |
Total other income (expense) |
(26,177) |
43,154 |
Income (loss) before income taxes and loss
from investments in affiliates |
(51,339) |
16,467 |
Provision for income taxes |
(115) |
(111) |
Net income (loss) before loss from
investments in affiliates |
(51,454) |
16,356 |
Loss from investments in affiliates |
(808) |
-- |
Net income (loss) |
$ (52,262) |
$ 16,356 |
Net (income) loss attributable to
noncontrolling interest |
22 |
29 |
Net income (loss) attributable to Amyris,
Inc. common stockholders |
$ (52,240) |
$ 16,385 |
Net income (loss) per share attributable to
common stockholders, basic |
$ (0.66) |
$ 0.21 |
Net loss per share attributable to common
stockholders, diluted |
$ (0.66) |
$ (0.34) |
Weighted-average shares of common stock
outstanding used in computing net income (loss) per share of
common stock: |
|
|
Basic |
79,222,051 |
76,830,388 |
Diluted |
79,222,051 |
117,097,976 |
|
|
|
(1) Includes stock-based compensation expense
of the following for the periods presented: |
|
|
|
|
|
Research and development |
$ 716 |
$ 798 |
Sales, general and administrative |
1,936 |
2,716 |
|
$ 2,652 |
$ 3,514 |
|
|
|
(2) For the first quarter of
2015, the Company recorded a non-cash loss from revaluation of its
derivative liabilities of $17.4 million, 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 first quarter of 2015 primarily as a
result of an increase in Amyris's stock price since December 31,
2014 and a decrease in the remaining term of the relevant
convertible notes compared to December 31, 2014. |
|
|
|
|
Amyris,
Inc. |
Reconciliation of GAAP to
Non-GAAP Financial Information |
(Unaudited) |
(In thousands, except per
share data) |
|
Three Months Ended |
|
March 31, 2015 |
March 31, 2014 |
|
|
|
Net income (loss) attributable to
Amyris, Inc. common stockholders (GAAP) |
$ (52,240) |
$ 16,385 |
Stock-based compensation expense |
2,652 |
3,514 |
(Gain) loss from change in fair value of
derivatives & debt extinguishment |
17,412 |
(47,970) |
Net loss attributable to Amyris, Inc.
common stockholders (Non-GAAP) |
$ (32,176) |
$ (28,071) |
|
|
|
Net income (loss) per share
attributable to Amyris, Inc. common stockholders, basic
(GAAP) |
$ (0.66) |
$ 0.21 |
Stock-based compensation expense |
0.03 |
0.04 |
(Gain) loss from change in fair value of
derivatives & debt extinguishment |
0.22 |
(0.62) |
Net loss per share attributable to
Amyris, Inc. common stockholders, (Non-GAAP) |
$ (0.41) |
$ (0.37) |
|
|
Amyris,
Inc. |
Reconciliation of GAAP to
Non-GAAP Financial Information |
(Unaudited) |
(In thousands, except per
share data) |
|
|
|
|
Three Months Ended |
|
March 31, 2015 |
March 31, 2014 |
|
|
|
Product sales (GAAP & Non-GAAP) |
|
|
Renewable product sales |
$ 2,095 |
$ 2,845 |
Product sales (GAAP &
Non-GAAP) |
$ 2,095 |
$ 2,845 |
|
|
|
Grants and collaborations revenue (GAAP) |
$ 5,777 |
$ 3,196 |
Change in accounts receivable, deferred
revenue and fundings associated with collaborations |
22,402 |
11,815 |
Collaborations Inflows (Non- GAAP)
(1) |
$ 28,179 |
$ 15,011 |
|
|
|
Total Revenues (GAAP) |
$ 7,872 |
$ 6,041 |
Change in accounts receivable, deferred
revenue and fundings associated with collaborations |
22,402 |
11,815 |
Total Cash Revenue Inflows (Non-GAAP)
(1) |
$ 30,274 |
$ 17,856 |
|
|
|
Costs of products sold (GAAP) |
$ 6,643 |
$ 6,236 |
Depreciation and amortization |
(1,231) |
(1,370) |
Costs of products sold (Non-
GAAP) |
$ 5,412 |
$ 4,866 |
|
|
|
Gross Profit (Non- GAAP)
(2) |
$ 24,862 |
$ 12,990 |
Gross Margin (%) |
82.1% |
72.7% |
|
|
|
Research and development (GAAP) |
$ 12,010 |
$ 12,986 |
Stock-based compensation expense |
(716) |
(798) |
Depreciation and amortization |
(1,885) |
(2,061) |
Research and development
(Non-GAAP) |
$ 9,409 |
$ 10,127 |
|
|
|
Sales, general and administrative (GAAP) |
$ 14,381 |
$ 13,399 |
Stock-based compensation expense |
(1,936) |
(2,716) |
Depreciation and amortization |
(374) |
(369) |
Sales, general and administrative
(Non- GAAP) |
$ 12,071 |
$ 10,314 |
|
|
|
(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 March 31, 2015 and 2014, includes $10.8 million and zero,
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. |
|
(2) Non-GAAP Gross Profit 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. |
CONTACT: Peter DeNardo
Director, Investor Relations and Corporate Communications
Amyris, Inc.
+1 (510) 740-7481
investor@amyris.com
Amyris (NASDAQ:AMRS)
Historical Stock Chart
From Mar 2024 to Apr 2024
Amyris (NASDAQ:AMRS)
Historical Stock Chart
From Apr 2023 to Apr 2024