Metabolix Announces Fourth Quarter and Full Year 2012 Financial Results

  Metabolix Announces Fourth Quarter and Full Year 2012 Financial Results

     Expands Sources of Biopolymer Supply; Provides Update on Biopolymer
                                Manufacturing

Business Wire

CAMBRIDGE, Mass. -- March 26, 2013

Metabolix, Inc. (NASDAQ: MBLX), an innovation-driven bioscience company
delivering sustainable solutions to the plastics, chemicals and energy
industries, today reported financial results for the three months and full
year ended December 31, 2012.

“We executed well on our strategy in the fourth quarter and achieved
operational milestones in each of our business areas,” said Richard P. Eno,
President and Chief Executive Officer. “In biopolymers, we grew product
shipments in the fourth quarter through sales to repeat and new customers. We
also launched our next-generation certified compostable film product, Mvera^TM
B5008, and began shipping I6001, a biobased polymeric modifier for PVC. We
also announced today that we have signed agreements with Tianjin GreenBio
Materials, a leading PHA supplier located in China, under which we will
distribute Tianjin’s heat shrink film in the U.S. and Europe, and they will
supply Metabolix with PHA biopolymer resins.”

Mr. Eno continued, “Under our manufacturing demonstration phase agreement,
technology transfer to Antibióticos is essentially complete. However, we are
aware that Antibióticos is in a process of financial restructuring, and our
ability to obtain biopolymer product from Antibióticos will depend on the
outcome of that restructuring. We continue to believe that the size and
location of the Antibióticos facility, as well as the expertise of its
technical personnel, are well suited to our current manufacturing needs. We
are in the process of negotiating a commercial contract with Antibióticos so
that if they achieve a satisfactory conclusion of their financial issues, we
would be in position to move ahead rapidly with commercial production.”

“We will continue to build our supply chain, and through our engagement with
Tianjin GreenBio as a PHA supplier, we have the potential to develop and
commercialize additional PHA biopolymer products. In addition, we have
initiated a feasibility study to define our priorities for a low-cost
manufacturing site for long-term commercial scale production of biopolymers
and potentially biobased chemicals. Our commercial strategy is to build a
presence in key markets that will enable us to base-load a future low-cost
plant,” said Mr. Eno.

FOURTH QUARTER AND FULL YEAR 2012 FINANCIAL OVERVIEW

Metabolix manages its finances with an emphasis on cash flow. The Company has
maintained this focus and ended the fourth quarter with $46.3 million in
unrestricted cash and investments. The Company's net cash used for operating
activities during the fourth quarter of 2012 was $7.3 million, which decreased
from net cash used of $8.6 million for the comparable quarter in 2011.
Metabolix continues to have no debt. The Company currently expects that cash,
cash equivalents and investments, together with expected funds to be received
from existing grants and anticipated product sales, will be sufficient to meet
anticipated cash requirements for at least the next 12months.

Total revenue in the fourth quarter of 2012 was $1.4 million, compared to $0.4
million for the comparable quarter in 2011. The fourth quarter revenue
consisted primarily of revenue from government grants and product sales. Grant
revenue of $0.6 million increased by $0.2 million over the same quarter of
2011, primarily as a result of work performed on the Company's $6.0 million
DOE grant. Biopolymer product orders of $0.9 million were shipped and billed
during the Company's fourth quarter of 2012. The Company recognized $0.8
million in product revenue during the fourth quarter of 2012, which included
$0.6 million deferred from the third quarter and $0.2 million from product
shipped during the fourth quarter. The Company deferred recognition of $0.8
million of product revenue until the first quarter in 2013. This compares to
biopolymer product sales of $0.7 million shipped and billed during the
Company's third quarter of 2012 and $0.1 million of product revenue recognized
net of $0.6 million that was deferred to the Company's fourth quarter in 2012.
Biopolymer sales of $0.4 million were recorded in the first half of 2012 prior
to the adoption of the Company’s current product revenue recognition policy,
which occurred during the quarter ended September 30, 2012.


                    2012
(dollars in          Q1    Q2     Q3        Q4        Full Year  Q3 to Q4
thousands)                                                            Change
Orders shipped and   $ 14   $ 373   $ 691      $ 918      $ 1,996     33   %
billed
Deferred at period    -     -      (621 )    (785 )    (785  )   
end^1
Current quarter
shipments            $ 14   $ 373   $ 70       $ 133
recognized
Deferred orders       -     -      -        621                
recognized
Total revenue        $ 14   $ 373   $ 70      $ 754     $ 1,211    
recognized


^1 The Company’s product revenue recognition policy is to defer recognition of
product revenue until the later of sixty days or receipt of customer payment.

Cost of product revenue was $0.6 million during the quarter ended December 31,
2012 and primarily reflects the cost of product associated with revenue
recognized during the period and current period freight and warehousing costs,
including warehouse consolidation activities.

Research and development expenses were $7.2 million for the fourth quarter of
2012, compared to $6.1 million for the same period in 2011. The increase of
$1.1 million is primarily due to $2.3 million in plant modification,
manufacturing equipment and raw material costs incurred in connection with the
Antibióticos manufacturing demonstration agreement, partially offset by
reductions in the use of external research and development support and
consulting costs of $0.6 million and $0.3 million, respectively.

Selling, general and administrative expenses were $3.1 million for the fourth
quarter of 2012, compared to $4.0 million for the comparable quarter in 2011.

The Company reported a net loss of $9.5 million, or $0.28 per share, for the
fourth quarter of 2012, compared to a net loss of $9.6 million, or $0.28 per
share, for the fourth quarter of 2011.

Total revenue for the full year 2012 was $42.3 million, compared to $1.4
million in the prior year. The year-over-year increase was primarily due to
$38.9 million in deferred revenue that was recognized as a result of the
termination of the Telles joint venture in February 2012.

For the full year 2012, cost of product revenues was $1.4 million and
primarily reflects the cost of product associated with revenue recognized
during the period, as well as freight and warehousing costs, including
warehouse consolidation activities. Research and development expenses were
$23.2 million, compared to $24.4 million for 2011. The decrease of $1.2
million is primarily due to a $1.7 million decrease in contracted biopolymer
research, a $0.8 million reduction in employee compensation, and $0.6 million
in reduced travel and consulting costs, offset by a $2.3 million increase in
costs incurred in connection with initiation of the Antibióticos manufacturing
demonstration agreement.

For the full year 2012, selling, general and administrative expenses were
$14.1 million, as compared to $15.8 million in 2011. The $1.7 million decrease
is primarily attributable to reduced employee compensation costs resulting
from the Company’s workforce reduction made in response to the termination of
the Telles joint venture.

For 2012, the Company reported net income of $3.6 million, or $0.11 per share,
as compared to a net loss of $38.8 million, or $1.24 per share, for 2011.

Net cash used in operating activities for both 2012 and 2011 was $31.7
million.

Conference Call Information

Richard Eno, the Company’s President and CEO, Joseph Hill, CFO, and Oliver
Peoples, Co-founder and CSO, will host a conference call today at 4:30 p.m.
(Eastern) to discuss the results of the fourth quarter and year ended December
31, 2012. The Company also will provide an update on the business and answer
questions from the investment community. A live webcast of the call with
slides can be accessed through the Company’s website at
http://www.metabolix.com in the investor relations section. To participate in
the call, dial toll-free 1-877-709-8155 or 1-201-689-8881 (international).

To listen to a telephonic replay of the conference call, dial toll-free
1-877-660-6853 or 1-201-612-7415 (international) and enter pass code 410216.
The replay will be available beginning at 7:30 p.m. (Eastern) on Tuesday,
March 26, 2013 and will last through 11:59 p.m. (Eastern) on Tuesday, April 9,
2013. In addition, the webcast will be archived on the Company’s website in
the investor relations section.

About Metabolix

Metabolix, Inc. is an innovation-driven bioscience company delivering
sustainable solutions to the plastics, chemicals and energy industries.
Metabolix is developing and commercializing a family of high-performance
biopolymers targeted to the markets for film and bag applications, performance
additives and functional biodegradation. Metabolix’s biobased chemicals
platform utilizes its novel “FAST” recovery process to enable the production
of cost-effective, “drop in” replacements for petroleum-based industrial
chemicals. Metabolix is also developing a platform for co-producing plastics,
chemicals and energy from crops. Metabolix has established an industry-leading
intellectual property portfolio that, together with its knowledge of advanced
industrial practice, provides a foundation for industry collaborations.

For more information, please visit www.metabolix.com. (MBLX-E)

Safe Harbor for Forward-Looking Statements

This press release contains forward-looking statements which are made pursuant
to the safe harbor provisions of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as amended.
The forward-looking statements in this release do not constitute guarantees of
future performance. Investors are cautioned that statements in this press
release which are not strictly historical statements, including, without
limitation, statements regarding expected future financial results and cash
usage; plans to manufacture biopolymer resin at Antibióticos; expectations
regarding the ability of Antibióticos to resolve its financial issues;
expectations for development and commercialization of additional PHA
biopolymer products with Tianjin GreenBio; Metabolix’s commercialization plans
and long-term production strategy for biopolymers; expectations for the
commercialization of Metabolix biopolymers and the Company's industrial
chemicals and crops program; plans related to the distribution agreement with
Tianjin GreenBio, and future research and development, constitute
forward-looking statements. Such forward-looking statements are subject to a
number of risks and uncertainties that could cause actual results to differ
materially from those anticipated, including the uncertainty of future
profitability; the risk that Metabolix may be unable to raise needed
additional capital on favorable terms, if at all; the risk that Metabolix may
not be able to obtain sufficient biopolymer manufacturing capacity on a timely
or economical basis; uncertainty as to whether Antibióticos will be able to
complete the manufacturing demonstration or to fulfill its obligations if a
commercial manufacturing agreement is entered into; uncertainties about
Tianjin GreenBio’s ability to supply product meeting Metabolix’s requirements;
and the risks and uncertainties detailed in Metabolix's filings with the
Securities and Exchange Commission, including its 10-K for the year ended
December 31, 2011 filed on March 12, 2012 and 10-Q filed on July 27, 2012.
Metabolix assumes no obligation to update any forward-looking information
contained in this press release or with respect to the announcements described
herein.


METABOLIX, INC.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
UNAUDITED
(in thousands, except share and per share data)
                                                             
                   Three Months Ended                Twelve Months Ended
                   December 31,                      December 31,
                   2012            2011            2012           2011       
Revenue:
Revenue from
termination of   $ -              $ -              $ 38,885       $ -
ADM
collaboration
Grant revenue      556              351              1,971          918
License fee
and royalty
revenue from       3                28               152            447
related
parties
License fee
and royalty        84               60               97             60
revenue
Product            754             -               1,211          -          
revenue
Total revenue      1,397           439             42,316         1,425      
                                                                    
Costs and
expenses:
Cost of
product            618              -                1,426          -
revenue
Research and
development        7,195            6,093            23,177         24,445
expenses
Selling,
general and        3,104           3,963           14,110         15,841     
administrative
expenses
Total costs        10,917          10,056          38,713         40,286     
and expenses
Income (loss)
from               (9,520     )     (9,617     )     3,603          (38,861    )
operations
                                                                    
Other income
(expense):
Interest           4               14              27             76         
income, net
Net income       $ (9,516     )   $ (9,603     )   $ 3,630        $ (38,785    )
(loss)
                                                                    
Net loss per
share:
Basic            $ (0.28      )   $ (0.28      )   $ 0.11         $ (1.24      )
Diluted          $ (0.28      )   $ (0.28      )   $ 0.11         $ (1.24      )
                                                                    
Number of
shares used in
per share
calculations:
Basic              34,304,118       34,110,508       34,217,298     31,257,376
Diluted            34,304,118       34,110,508       34,279,779     31,257,376
                                                                    


METABOLIX, INC.
CONDENSED CONSOLIDATED BALANCE SHEET
UNAUDITED
(in thousands)
                                                             
                                                 December 31,     December 31,
                                                 2012             2011
Assets
 Cash, cash equivalents and short-term        $ 43,773         $ 76,855
  investments
  Inventory                                      3,204            -
  Other current assets                           1,978            1,584
  Restricted cash                                594              622
  Property and equipment, net                    1,358            2,276
  Long-term investments                          2,508            1,503
  Other assets                                   95               72
      Total assets                            $ 53,510         $ 82,912
                                                                  
Liabilities and Stockholders' Equity
  Accounts payable and accrued liabilities     $ 4,752          $ 4,086
  Short-term deferred revenue                    1,067            2,914
  Current portion of deferred rent               165              165
  Long-term deferred revenue                     -                35,944
  Other long-term liabilities                    186              340
       Total liabilities                         6,170            43,449
       Total stockholders' equity                47,340           39,463
       Total liabilities and stockholders'     $ 53,510         $ 82,912
       equity
                                                                  


METABOLIX, INC.
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
UNAUDITED
(in thousands)

                                       Year Ended December 31,
                                        2012        2011         2010    
Cash flows from operating
activities
Net income (loss)                     $ 3,630       $ (38,785  )   $ (38,803 )
Adjustments to reconcile net income
(loss) to cash used in operating
activities:
Depreciation                            1,298         1,507          1,647
Charge for 401(k) company common        408           529            443
stock match
Stock-based compensation                3,807         4,633          4,696
Changes in operating assets and
liabilities:
    Other operating assets and         116           (948     )     (319    )
     liabilities
     Deferred revenue                   (37,791 )     1,333          341
     Inventory                          (3,204  )     -             -       
          Net cash used in             (31,736 )     (31,731  )     (31,995 )
           operating activities
                                                                     
Cash flows from investing
activities
Purchase of property and equipment      (392    )     (895     )     (906    )
Proceeds from sale of equipment         12            -              -
Change in restricted cash               28            -              (29     )
Purchase of investments                 (58,933 )     (107,477 )     (83,814 )
Proceeds from sale and maturity of      84,303       99,464        116,126 
short-term investments
           Net cash provided by
           (used in) investing          25,018       (8,908   )     31,377  
           activities
                                                                     
Cash flows from financing
activities
Proceeds from options exercised         19            74             2,339
Proceeds from public stock              -            49,333        -       
offering, net of issuance costs
           Net cash provided by         19           49,407        2,339   
           financing activities
                                                                     
Effect of exchange rate changes on      (6      )     (17      )     (9      )
cash and cash equivalents
                                                                     
Net increase (decrease) in cash and     (6,705  )     8,751          1,712
cash equivalents
Cash and cash equivalents at            21,277       12,526        10,814  
beginning of period
Cash and cash equivalents at end of   $ 14,572     $ 21,277      $ 12,526  
period

Contact:

Metabolix Inquiries:
Metabolix, Inc.
Lynne H. Brum, 617-682-4693
LBrum@metabolix.com
 
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