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Metabolix Announces First Quarter 2013 Financial Results



  Metabolix Announces First Quarter 2013 Financial Results

    Expands Arrangement with Tianjin GreenBio Materials to Sell Metabolix
                             Biopolymer Products

   Increasing Visibility on Long-term Contracts, Closes First Mvera^™ B5008
                               Annual Contract

Business Wire

CAMBRIDGE, Mass. -- May 08, 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 ended March
31, 2013.

“We made significant progress in each of our businesses during the first
quarter,” said Richard P. Eno, President and Chief Executive Officer. “In
biopolymers, we continued to expand our customer base, demonstrating the
commercial appeal of our products. We are seeing increased interest in
long-term customer agreements. In April, we secured our first annual contract
for sales of Mvera^TM B5008, the next-generation certified compostable film
grade product we launched in the fourth quarter of 2012. This contract is
another sign that the launch is on track, as we build our biopolymer markets
ahead of manufacturing capacity.

“We strengthened our previous relationship with Tianjin GreenBio Materials
(“TGBM”), a leading PHA supplier located in China, by entering into an
additional arrangement enabling TGBM to purchase and use our PHA biopolymer
resins,” Mr. Eno added. “As we work to build commercial-scale supply sources
for our PHA products, we continue to monitor the situation at Antibióticos in
Spain. The current Antibióticos ownership has not delivered upon our
demonstration project, or on the necessary financial restructuring, that would
allow the site and its talented staff to perform at its full potential. We
believe the site is appealing to numerous other parties and hope clarity of
the path forward can be realized quickly.

“Metabolix also continues to drive innovation in the biopolymer market,” said
Mr. Eno. “Last month, we presented new data further validating the benefits
our biobased polymeric modifiers bring by improving the mechanical,
performance and environmental characteristics of the commercially significant
polymers polylactic acid (PLA) and polyvinyl chloride (PVC). We believe these
results showcase the broad commercial applicability of our technology
platform.

“In our biobased chemicals and crop platforms, we continue to achieve our
internal technical milestones and have partnership discussions ongoing,” said
Mr. Eno.

FIRST QUARTER 2013 FINANCIAL OVERVIEW

Metabolix manages its finances with an emphasis on cash flow. The Company has
maintained this focus and ended the first quarter with $37.7 million in
unrestricted cash and investments. The Company’s net cash used in operating
activities during the first quarter of 2013 was $8.5 million, which represents
a $3.8 million decrease in cash usage from $12.3 million for the comparable
quarter in 2012. The higher net cash usage during the first quarter of 2012
was primarily the result of the Company’s purchase of PHA biopolymer and raw
materials inventory from Telles during that quarter. The Company currently
expects that its cash and investments, together with funds expected to be
received from existing government research grants and expected product sales,
will be sufficient to meet anticipated cash requirements for the next twelve
months. Metabolix continues to have no debt.

Total revenue in the first quarter of 2013 was $1.9 million, compared to $39.3
million for the comparable quarter in 2012. Included in the 2012 revenue was
$38.9 million of previously deferred revenue related to the joint venture with
ADM that terminated during that quarter. First quarter revenue in 2013
consisted primarily of revenue from government research grants and product
sales. Grant revenue of $0.7 million increased by $0.3 million over the same
quarter of 2012, primarily due to the expanded number of awarded U.S. and
Canadian government grants and revenue earned from the Company's $6.0 million
U.S. Department of Energy grant. Biopolymer product orders and excess raw
material sales of $0.7 million were shipped and billed during the Company's
first quarter of 2013. Revenue recognition was deferred for the majority of
these shipments in accordance with the Company’s policy to defer product
revenue for the greater of 60 days or customer payment. During the first
quarter, however, $0.8 million in product revenue was recognized, primarily
from shipments to customers completed during the last quarter of 2012. The
Company also had $0.4 million of research and development revenue during the
first quarter of 2013, which was earned under a development arrangement with a
third party.

Cost of product revenue was $0.6 million during the quarter ended March 31,
2013 compared to $0.1 million for the comparable period in 2012. The increase
of $0.5 million was primarily attributable to greater sales in the first
quarter of 2013, as compared to the first quarter of 2012, when Metabolix had
operating control of the biopolymer business for only a few weeks, and
primarily includes product inventory costs, freight and warehousing costs.

Research and development expenses were $4.9 million for the first quarter of
2013 compared to $6.0 million for the same period in 2012. The decrease of
$1.1 million was primarily the result of the Company’s efforts to reduce
operating costs after the termination of the ADM joint venture in early 2012
accomplished primarily through reductions in employee compensation and related
benefit expenses, consulting and various other expenses.

Selling, general and administrative expenses were $3.3 million and $4.4
million for the first quarters of 2013 and 2012, respectively. The decrease of
$1.1 million was primarily attributable to the Company’s efforts to reduce
operating costs through employee headcount reductions and a decrease in legal
fees from those incurred during the prior year as a result of the termination
of the joint venture with ADM.

The Company reported a net loss of $6.8 million or $0.20 per share for the
first quarter of 2013 compared to net income of $28.8 million or $0.84 per
share for the first quarter of 2012.

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.
(ET) to discuss the results of the first quarter. 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 877-709-8155 or
201-689-8881 (international).

To listen to a telephonic replay of the conference call, dial toll-free
877-660-6853 or 201-612-7415 (international) and enter pass code 412243. The
replay will be available beginning at 7:30 p.m. (ET) on Wednesday, May 8, 2013
and will last through 11:59 p.m. (ET) on Wednesday, May 22, 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 bio-based chemicals
platform utilizes its novel “FAST” recovery process to enable the production
of cost-effective 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; market expectations; projected sales of Metabolix biopolymers;
Metabolix’s biopolymer production strategy; expectations relating to
Antibióticos and the supply for the Company’s PHA products; expectations for
the commercialization of the Company's industrial chemicals and crops program;
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 risks and uncertainties detailed in Metabolix's
filings with the Securities and Exchange Commission, including its 10-K for
the year ended December 31, 2012 filed on March 28, 2013. 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
                                               March 31,
                                               2013                 2012
Revenue:
Revenue from termination of ADM              $ -                  $ 38,885
collaboration
Grant revenue                                  724                  378
Product revenue                                790                  14
Research and development revenue               380                  -
License fee and royalty revenue                49                   45
Total revenue                                  1,943                39,322
                                                                     
Costs and expenses:
Cost of product revenue                        557                  55
Research and development                       4,859                6,045
Selling, general and administrative            3,312                4,399
Total costs and expenses                       8,728                10,499
Income (loss) from operations                  (6,785     )         28,823
                                                                     
Other income (expense):
Interest income, net                           10                   17
Other income, net                              12                   -
Net income (loss)                            $ (6,763     )       $ 28,840
                                                                     
Net income (loss) per share:
Basic                                        $ (0.20      )       $ 0.84
Diluted                                      $ (0.20      )       $ 0.84
                                                                     
Number of shares used in per share
calculations:
Basic                                          34,353,277           34,136,333
Diluted                                        34,353,277           34,265,638
                                                                     
                                                                     

METABOLIX, INC.
CONDENSED CONSOLIDATED BALANCE SHEET
UNAUDITED
(in thousands)
                                                               
                                                March 31,         December 31,
                                                2013              2012
Assets
Cash, cash equivalents and short-term         $ 37,709          $ 43,773
investments
Inventory                                       3,624             3,204
Other current assets                            2,420             1,978
Restricted cash                                 594               594
Property and equipment, net                     1,120             1,358
Long-term investments                           -                 2,508
Other assets                                    95                95
Total assets                                  $ 45,562          $ 53,510
                                                                   
Liabilities and Stockholders' Equity
Accounts payable and accrued                  $ 2,771           $ 4,752
liabilities
Short-term deferred revenue                     972               1,067
Current portion of deferred rent                165               165
Long-term deferred revenue                      -                 -
Other long-term liabilities                     148               186
Total liabilities                               4,056             6,170
Total stockholders' equity                      41,506            47,340
Total liabilities and stockholders'           $ 45,562          $ 53,510
equity
                                                                   
                                                                   

METABOLIX, INC.
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
UNAUDITED
(in thousands)
                                                                  
                                                  Three Months Ended March 31,
                                                  2013               2012
Cash flows from operating activities
Net income (loss)                               $ (6,763  )        $ 28,840
Adjustments to reconcile net income
(loss) to cash used in operating
activities:
Depreciation                                      295                379
Charge for 401(k) company common stock            180                162
match
Stock-based compensation                          863                1,104
Changes in operating assets and
liabilities:
Inventory                                         (420    )          (2,977  )
Deferred revenue                                  (95     )          (38,656 )
Other operating assets and liabilities            (2,558  )          (1,111  )
Net cash used in operating activities             (8,498  )          (12,259 )
                                                                      
Cash flows from investing activities
Purchase of property and equipment                (64     )          (148    )
Purchase of investments                           (5,015  )          (28,240 )
Proceeds from sale and maturity of                19,520             28,961   
short-term investments
Net cash provided by investing                    14,441             573      
activities
                                                                      
Cash flows from financing activities
Proceeds from options exercised                   5                  11       
Net cash provided by financing                    5                  11       
activities
                                                                      
Effect of exchange rate changes on cash           (8      )          2
and cash equivalents
                                                                      
Net increase (decrease) in cash and               5,940              (11,673 )
cash equivalents
Cash and cash equivalents at beginning            14,572             21,277   
of period
Cash and cash equivalents at end of             $ 20,512           $ 9,604    
period

Contact:

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