REDWOOD CITY, Calif.,
Feb. 7, 2012 /PRNewswire/ -- Codexis,
Inc. (NASDAQ: CDXS), a developer of industrial enzymes to enable
the production of biofuels, bio-based chemicals, and pharmaceutical
intermediates, today announced financial results for the fourth
quarter and year ended December 31,
2011.
“In 2011, we launched our CodeXyme™ cellulase enzymes and
CodeXol™ detergent alcohol product lines,” said Alan Shaw, Ph.D., President and CEO of Codexis,
Inc. “In 2012 we are focused on delivering world-class CodeXyme™
cellulase enzymes to our development partners, piloting production
of CodeXol™, and delivering continued sales growth in our
pharmaceuticals products and services”.
Full Year 2011 Financial Highlights:
Revenue: For fiscal 2011, the company reported revenues of
$123.9 million, an increase of
$16.8 million or 16% over fiscal 2010
revenue of $107.1 million. Product
revenue of $49.0 million increased
$16.2 million or 49% over the prior
year, driven by increased sales to both generic and innovator
pharmaceutical customers. Collaborative R&D revenue of
$71.4 million increased $1.2 million from $70.2
million over the prior year.
Operating Expenses: Research and development expenses for fiscal
2011 were $61.0 million, compared to
$52.4 million for fiscal 2010. The
increase was primarily due to additional headcount and amortization
related to intellectual property purchased from Maxygen, Inc.
Selling, general and administrative expenses for fiscal 2011
increased to $36.9 million compared
to $33.8 million for fiscal 2010,
driven by higher stock compensation expense and higher compensation
expense due to headcount increases.
Net Loss: Net loss was ($16.6)
million, or ($0.46) per share,
based on 35.7 million weighted average common shares outstanding
for fiscal year 2011. This compares to a net loss of ($8.5) million or ($0.35) per share for fiscal 2010.
Adjusted EBITDA: On a non-GAAP basis, Adjusted EBITDA was
$4.3 million for fiscal 2011 compared
to $9.9 million for fiscal 2010.
Adjusted EBITDA is calculated by adjusting net loss for net
interest expense, income taxes, depreciation, amortization,
stock-based compensation and preferred stock warrant fair market
valuation. A reconciliation of net loss to Adjusted EBITDA is
presented below.
Cash: Cash, cash equivalents and marketable securities at
December 31, 2011, was $63.8 million compared to $74.1 million at December
31, 2010. The company used ($0.5)
million in cash from operations in fiscal 2011.
Fourth Quarter 2011 Financial Highlights:
Revenue: For the fourth quarter of 2011, the company reported
revenues of $33.5 million, an
increase of $3.7 million or 12% over
$29.8 million in the fourth quarter
of 2010. Product revenue increased $6.9
million or 80% over the same time period of 2010.
Operating Expenses: Research and development expenses in the
fourth quarter of 2011 were $15.5
million, compared to $13.3
million for the fourth quarter of 2010. The increase was
primarily due to additional headcount for the development of
CodeXol™ Detergent Alcohol. Selling, general and administrative
expenses in the fourth quarter of 2011 increased to $9.8 million, compared to $8.6 million over the same time period of 2010,
related to use of consultants, legal costs associated with
intellectual property patent filing and increased costs related to
SOX compliance.
Net Loss: Net loss was ($5.3)
million, or ($0.15) per share,
based on 36.0 million weighted average common shares outstanding in
the fourth quarter of 2011. This compares to a net loss of
($0.5) million or ($0.01) per share during the fourth quarter of
2010.
Adjusted EBITDA: On a non-GAAP basis, Adjusted EBITDA decreased
from $4.4 million in the fourth
quarter of 2010 to ($0.2) million in
the fourth quarter of 2011. Adjusted EBITDA is calculated by
adjusting net loss for net interest expense, income taxes,
depreciation, amortization, stock-based compensation and preferred
stock warrant fair market valuation. A reconciliation of net loss
to Adjusted EBITDA is presented below.
Cash: Cash, cash equivalents and marketable securities at
December 31, 2011 was $63.8 million compared to $70.6 million at September
30, 2011. The company used ($2.9)
million in cash from operations in the fourth quarter.
Outlook
Codexis' statements with regard to its outlook are based on
current expectations. The following statements are forward looking,
and actual results could differ materially depending on market
conditions and the factors set forth under "Forward-Looking
Statements" below.
For the full year 2012, Codexis forecasts revenues in line with
or exceeding 2011 results. Codexis expects 2012 Adjusted EBITDA
will be positive.
Conference Call
Codexis will hold a conference call for investors on
February 7, 2012 at 1:30 p.m. PT (4:30 p.m.
ET). The conference call dial-in numbers are US:
866-788-0541 or International: 857-350-1679, access code 54501345.
A live webcast of the call will also be available from the Investor
Relations section of www.codexis.com. A recording of the call will
be available by calling US: 888-286-8010 or International:
617-801-6888, access code 84268524 beginning approximately two
hours after the call, and will be available for up to thirty days.
A webcast replay from today's call will also be available from the
Investor Relations section of www.codexis.com approximately two
hours after the call and will be available for up to thirty
days.
About Codexis, Inc.
Codexis is an industrial biotechnology company developing
enzymes for the production of high value sustainable chemicals,
clean fuels, cost effective pharmaceutical processes
and renewable bioindustrial ingredients to make industry more
efficient, productive and profitable. Partners and customers
include global leaders such as Shell, Merck and Pfizer. For
more information, see www.codexis.com.
Forward-Looking Statements
This press release contains forward-looking statements relating
to Codexis' forecast for 2012 revenue and Adjusted EBITDA, and
Codexis’ ability to deliver CodeXyme™ cellulase enzymes to its
development partners in 2012, pilot production of CodeXol™ in 2012,
and deliver sales growth in its pharmaceuticals products and
services in 2012. You should not place undue reliance on
these forward-looking statements because they involve known and
unknown risks, uncertainties and other factors that are, in some
cases, beyond our control and that could materially affect actual
results. Factors that could materially affect actual results
include the risks that our operating results may fluctuate in the
future, that we have a history of net losses and that we may be
unable to successfully commercialize our technology in biofuels.
Additional factors that could materially affect actual
results can be found in Codexis' Quarterly Report on Form 10-Q
filed with the Securities and Exchange Commission on November 7, 2011, including under the caption
"Risk Factors." Codexis expressly disclaims any intent or
obligation to update these forward-looking statements, except as
required by law.
Codexis,
Inc.
|
|
Condensed
Consolidated Statements of Operations
|
|
(Unaudited)
|
|
(In
Thousands, Except Per Share Amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
Year
Ended
|
|
|
|
|
|
|
December
31,
|
|
|
|
December
31,
|
|
|
|
|
|
|
2011
|
|
2010
|
|
%
change
|
|
2011
|
|
2010
|
|
% change
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product
|
|
$ 15,493
|
|
$ 8,586
|
|
80%
|
|
$ 49,021
|
|
$ 32,835
|
|
49%
|
|
|
Collaborative
research and development
|
|
17,296
|
|
20,746
|
|
-17%
|
|
71,368
|
|
70,196
|
|
2%
|
|
|
Government
grants
|
|
705
|
|
479
|
|
47%
|
|
3,476
|
|
4,073
|
|
-15%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenues
|
|
33,494
|
|
29,811
|
|
12%
|
|
123,865
|
|
107,104
|
|
16%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of product
revenues
|
|
13,067
|
|
8,126
|
|
61%
|
|
41,781
|
|
27,982
|
|
49%
|
|
|
Gross margin $
|
|
2,426
|
|
460
|
|
427%
|
|
7,240
|
|
4,853
|
|
49%
|
|
|
Gross margin %
|
|
16%
|
|
5%
|
|
|
|
15%
|
|
15%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
|
15,548
|
|
13,349
|
|
16%
|
|
61,049
|
|
52,405
|
|
16%
|
|
|
Selling, general
and administrative
|
|
9,782
|
|
8,649
|
|
13%
|
|
36,942
|
|
33,841
|
|
9%
|
|
|
|
|
|
|
|
|
|
|
.
|
|
.
|
|
|
|
|
Total costs and operating
expenses
|
|
38,397
|
|
30,124
|
|
27%
|
|
139,772
|
|
114,228
|
|
22%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from
operations
|
|
(4,903)
|
|
(313)
|
|
1466%
|
|
(15,907)
|
|
(7,124)
|
|
123%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
77
|
|
31
|
|
148%
|
|
273
|
|
166
|
|
64%
|
|
|
Interest expense
and other, net
|
|
(297)
|
|
(153)
|
|
94%
|
|
(675)
|
|
(1,199)
|
|
-44%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss before provision for income
taxes
|
|
(5,123)
|
|
(435)
|
|
1078%
|
|
(16,309)
|
|
(8,157)
|
|
100%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for
income taxes
|
|
174
|
|
60
|
|
190%
|
|
241
|
|
384
|
|
-37%
|
|
|
Net loss
|
|
$ (5,297)
|
|
$ (495)
|
|
970%
|
|
$ (16,550)
|
|
$ (8,541)
|
|
94%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per share of common
stock,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
basic and diluted
|
|
$ (0.15)
|
|
$ (0.01)
|
|
|
|
$
(0.46)
|
|
$ (0.35)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares
used in computing net loss per share of common stock, basic and
diluted
|
|
35,965
|
|
34,452
|
|
|
|
35,674
|
|
24,594
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Codexis,
Inc.
|
|
|
Condensed
Consolidated Balance Sheets
|
|
|
(Unaudited)
|
|
|
(In
Thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
December
31,
|
|
|
December
31,
|
|
|
|
|
2011
|
|
|
2010
|
|
|
Assets
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
25,762
|
|
|
$
72,396
|
|
|
Marketable
securities
|
|
27,720
|
|
|
-
|
|
|
Accounts receivable,
net
|
|
18,917
|
|
|
15,333
|
|
|
Inventories
|
|
4,488
|
|
|
2,817
|
|
|
Prepaid expenses and
other current assets
|
|
2,345
|
|
|
1,646
|
|
|
Total
current assets
|
|
79,232
|
|
|
92,192
|
|
|
|
|
|
|
|
|
|
|
Restricted cash
|
|
1,511
|
|
|
1,466
|
|
|
Non-current marketable
securities
|
|
10,348
|
|
|
1,650
|
|
|
Property and equipment,
net
|
|
24,176
|
|
|
21,452
|
|
|
Intangible assets,
net
|
|
16,442
|
|
|
20,158
|
|
|
Goodwill
|
|
3,241
|
|
|
3,241
|
|
|
Other non-current
assets
|
|
972
|
|
|
1,141
|
|
|
Total
assets
|
|
$
135,922
|
|
|
$
141,300
|
|
|
|
|
|
|
|
|
|
|
Liabilities and stockholders'
equity
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
10,364
|
|
|
$
9,208
|
|
|
Accrued
compensation
|
|
6,785
|
|
|
8,107
|
|
|
Other accrued
liabilities
|
|
7,354
|
|
|
5,630
|
|
|
Deferred
revenues
|
|
3,789
|
|
|
4,539
|
|
|
Total
current liabilities
|
|
28,292
|
|
|
27,484
|
|
|
|
|
|
|
|
|
|
|
Deferred revenues, net of
current portion
|
|
1,485
|
|
|
5,074
|
|
|
Other long-term
liabilities
|
|
3,455
|
|
|
1,381
|
|
|
Total
liabilities
|
|
33,232
|
|
|
33,939
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity:
|
|
|
|
|
|
|
|
Common stock
|
|
4
|
|
|
4
|
|
|
Additional paid-in
capital
|
|
287,792
|
|
|
275,540
|
|
|
Accumulated other comprehensive
income (loss)
|
|
(407)
|
|
|
(34)
|
|
|
Accumulated deficit
|
|
(184,699)
|
|
|
(168,149)
|
|
|
Total
stockholders' equity
|
|
102,690
|
|
|
107,361
|
|
|
Total
liabilities, and stockholders' equity
|
|
$
135,922
|
|
|
$
141,300
|
|
|
|
|
|
|
|
|
|
Codexis,
Inc.
|
|
|
Condensed
Consolidated Statements of Cash Flow
|
|
|
(Unaudited)
|
|
|
(In
Thousands)
|
|
|
|
|
|
|
|
|
|
|
|
Year
Ended
|
|
|
|
|
December
31,
|
|
|
|
|
2011
|
|
2010
|
|
|
Operating
activities:
|
|
|
|
|
|
|
Net loss
|
|
$ (16,550)
|
|
$ (8,541)
|
|
|
Adjustments to reconcile
net loss to net cash used in operating activities:
|
|
|
|
|
|
|
Amortization
of intangible assets
|
|
3,716
|
|
1,063
|
|
|
Depreciation
and amortization of property and equipment
|
|
7,755
|
|
7,246
|
|
|
Revaluation
of redeemable convertible preferred stock warrant
liability
|
|
-
|
0
|
677
|
|
|
Loss (gain)
on disposal of property and equipment
|
|
49
|
|
148
|
|
|
Gain from
extinguishment of asset retirement obligation
|
|
(124)
|
|
-
|
|
|
Extinguishment of royalty payable
|
|
-
|
|
461
|
|
|
Stock-based
compensation
|
|
9,431
|
|
8,737
|
|
|
Accretion of
asset retirement obligation
|
|
39
|
|
146
|
|
|
Amortization
of debt discount
|
|
-
|
|
26
|
|
|
Accretion
(amortization) of premium/discount on marketable
securities
|
|
771
|
|
511
|
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
Accounts
receivable
|
|
(3,583)
|
|
(8,087)
|
|
|
Inventories
|
|
(1,671)
|
|
98
|
|
|
Prepaid
expenses and other current assets
|
|
(682)
|
|
13
|
|
|
Other
assets
|
|
513
|
|
2,814
|
|
|
Accounts
payable
|
|
1,156
|
|
(2,105)
|
|
|
Accrued
compensation
|
|
(1,322)
|
|
1,589
|
|
|
Other
accrued liabilities
|
|
4,351
|
|
(6,048)
|
|
|
Deferred
revenues
|
|
(4,339)
|
|
(15,131)
|
|
|
Net cash used in operating activities
|
|
(490)
|
|
(16,383)
|
|
|
|
|
|
|
|
|
|
Investing
activities:
|
|
|
|
|
|
|
Increase in
restricted cash
|
|
(45)
|
|
(735)
|
|
|
Purchase of
property and equipment
|
|
(10,736)
|
|
(6,990)
|
|
|
Purchase of
marketable securities
|
|
(52,564)
|
|
(49,051)
|
|
|
Purchase of
Maxygen patent portfolio
|
|
|
|
(20,705)
|
|
|
Proceeds from
sale of marketable securities
|
|
6,037
|
|
1,605
|
|
|
Proceeds from
maturities of marketable securities
|
|
8,500
|
|
70,695
|
|
|
Proceeds from
disposal of property and equipment
|
|
|
|
15
|
|
|
Net cash used in investing activities
|
|
(48,808)
|
|
(5,166)
|
|
|
|
|
|
|
|
|
|
Financing
activities:
|
|
|
|
|
|
|
Principal
payments on financing obligations
|
|
-
|
|
(8,026)
|
|
|
Payments in
preparation for initial public offering
|
|
-
|
|
(3,870)
|
|
|
Proceeds from
issuance of common stock on IPO, net of underwriting
discounts
|
|
-
|
-
|
72,541
|
|
|
Proceeds from
exercises of stock options
|
|
2,579
|
|
1,594
|
|
|
Net cash provided by financing activities
|
|
2,579
|
|
62,239
|
|
|
|
|
|
|
|
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
|
85
|
|
(79)
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in cash
and cash equivalents
|
|
(46,634)
|
|
40,611
|
|
|
Cash and cash
equivalents:
|
|
|
|
|
|
|
Beginning of the
period
|
|
72,396
|
|
31,785
|
|
|
End of the
period
|
|
25,762
|
|
72,396
|
|
|
|
|
|
|
|
|
|
Marketable securities at
the end of period
|
|
38,068
|
|
1,650
|
|
|
|
|
|
|
|
|
|
Cash, cash equivalents and
marketable securities
|
|
$ 63,830
|
|
$ 74,046
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reclassification of preferred
stock warrant from liability to additional paid-in
capital
|
|
|
|
$ 2,686
|
|
|
Conversion of preferred stock to
common stock and additional paid-in capital
|
|
|
|
$ 179,672
|
|
|
|
|
|
|
|
Reconciliation of GAAP to Non-GAAP Financial
Information
In this press release, in addition to GAAP financial results, we
present Adjusted EBITDA because we believe it assists investors and
analysts in comparing our performance across reporting periods on a
consistent basis by excluding items that we do not believe are
indicative of our core operating performance. In addition, we use
Adjusted EBITDA to evaluate the effectiveness of our business
strategies.
A reconciliation of GAAP net loss to Adjusted EBITDA is included
in the table below.
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Codexis,
Inc.
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Reconciliation of GAAP Net Loss
to Adjusted EBITDA
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(Unaudited)
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(In
Thousands)
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Three Months
Ended
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Year
Ended
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December
31,
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December
31,
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Calculation of Adjusted
EBITDA
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2011
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2010
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2011
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2010
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Net loss
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$(5,297)
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$ (495)
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$(16,550)
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$(8,541)
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Adjustments:
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Minus: Interest
income
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(77)
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(31)
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(273)
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(166)
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Plus: Interest
expense
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-
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5
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-
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529
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Plus: Income taxes
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174
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60
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241
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384
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Plus: Depreciation and
amortization
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3,006
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2,609
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11,471
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8,309
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Plus: Stock-based
compensation
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2,038
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2,271
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9,431
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8,737
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Plus: Preferred stock warrant
fair market valuation adjustment
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-
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-
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-
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677
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Adjusted
EBITDA
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$ (156)
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$4,419
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$
4,320
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$ 9,929
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Adjusted EBITDA has limitations as an analytical tool. Some of
these limitations are:
- Adjusted EBITDA does not reflect our cash expenditures, or
future requirements, for capital expenditures or contractual
commitments;
- Adjusted EBITDA does not reflect changes in, or cash
requirements for, our working capital needs;
- Although depreciation and amortization are non-cash charges,
the assets being depreciated and amortized will often have to be
replaced in the future, and Adjusted EBITDA does not reflect any
cash requirements for such replacements; and
- Non-cash compensation is and will remain a key element of our
overall long-term incentive compensation package, although we
exclude it as an expense when evaluating our ongoing operating
performance for a particular period.
Because of these limitations, Adjusted EBITDA should not be
considered in isolation or as a substitute for performance measures
calculated in accordance with GAAP. We compensate for these
limitations by relying primarily on our GAAP results and using
Adjusted EBITDA only supplementally.
Contacts:
Investors: Jay Sarwar,
ir@codexis.com, 650-421-8331
Media: Lyn Christenson,
lyn.christenson@codexis.com, 650-421-8144 or Saskia Sidenfaden, ssidenfaden@mww.com,
212-827-3771.
SOURCE Codexis, Inc.