Amyris Reports Third Quarter 2013 Financial Results Continued Strong Operational Performance and Lower Production Costs Lead to Another Strong Quarter for Amyris EMERYVILLE, Calif., Oct. 31, 2013 (GLOBE NEWSWIRE) -- Amyris, Inc. (Nasdaq:AMRS), a leading renewable chemicals and fuels company, today announced financial results for the third quarter ended September 30, 2013. "During the third quarter, we achieved our highest farnesene production volumes at our lowest quarterly unit costs to date. We continued our relentless focus on collaborations and sales revenues with continued strength in our two initial product lines: high-performance renewable diesel and our best-in-class emollients. We expect continued growth in 2014 in new areas such as lubricants, specialty fluids and polymers," said John Melo, Amyris President & CEO. "Since quarter-end we completed the initial closing of our financing with our major stockholders, receiving $42.6 million in cash proceeds. We believe we are on the right track to achieve our objective of positive cash flow from operations in 2014 and profitability in 2015," Melo concluded. BUSINESS HIGHLIGHTS Below are some key highlights from the Company's activities during the third quarter of 2013. Farnesene Production *Operated with all six fermentors during the entire quarter at the Company's farnesene production facility in Brotas, São Paulo, Brazil. *Achieved lowest quarterly average farnesene production cash cost, which was less than $5 per liter. *Exceeded production milestones related to recent financing agreements. Sales & Collaboration Revenues *Achieved second consecutive quarter of renewable product revenues above $4 million. *Combined sales of Neossance™ Squalane emollient, renewable diesel for niche markets, and farnesene for the lubricants market were in line with previous quarter and 35% higher than same period in 2012. *Met all scheduled milestones associated with active R&D and product collaborations. Strengthened Financial Position *Achieved lowest quarterly cash operating expenses since our Initial Public Offering in 2010. *Following quarter-end, closed initial tranche of convertible note financing for $42.6 million in cash proceeds, with established terms for access to additional funds in a second tranche. FINANCIAL RESULTS Aggregate revenues for the quarter ended September 30, 2013 were $7.0 million compared to aggregate revenues of $19.1 million in the third quarter of 2012. Last year's third quarter revenues included $1.7 million of sales related to the Company's ethanol and ethanol-blended gasoline business, a business which the Company transitioned out of in the third quarter of 2012. Of the $7.0 million in aggregate revenues in the quarter ended September 30, 2013, $4.1 million was related to renewable product sales and $2.9 million was related to collaboration and grant revenue. This compares with $3.0 million in renewable product sales and $14.4 million in collaboration and grant revenue for the same period in the prior year. The $14.4 million in grants and collaboration revenue in the prior year's quarter included $9.8 million in revenue related to a July 2012 amendment of the Company's collaboration agreement with Total. Cost of products sold increased to $8.3 million for the three months ended September 30, 2013 from $4.4 million for the same period in the prior year. Cost of products sold for the three months ended September 30, 2013 consisted primarily of production costs of farnesene-derived products, including certain costs related to the scale-up in production of farnesene-derived products at the Company's recently operational plant located in Brotas, Brazil. Total research & development (R&D) and sales, general & administrative (SG&A) expenses for the three months declined 20.1 % to $26.4 million from $33.1 million for the same quarter in the prior year, primarily due to reductions in personnel-related costs and overall lower spending. GAAP net loss attributable to common stockholders for the quarter was $24.2 million ($0.32 per share) compared to a loss of $20.3 million ($0.34 per share) in the comparable quarter of 2012. On a non-GAAP basis, excluding stock-based compensation and loss on purchase commitments and write-off of production assets, the net loss attributable to common stockholders was $19.8 million ($0.26 per share) compared to $12.9 million ($0.22 per share) in the comparable quarter of the prior year. A reconciliation of GAAP to non-GAAP results is included in this release. Nine Months Ended September 30, 2013 Aggregate revenues for the nine months ended September 30, 2013 were $25.7 million versus $67.8 million in the prior year. Revenues for the first nine months of last year included $38.8 million of sales related to the Company's ethanol and ethanol-blended gasoline business. Of the $25.7 million in aggregate revenues for the nine months ended September 30, 2013, $11.3 million was related to renewable product sales and $14.4 million was related to collaboration and grant revenue. This compares with $7.8 million in renewable product sales and $21.2 million in collaboration and grant revenue for the same period in the prior year. The $21.2 million in grants and collaboration revenue in the prior year included $9.8 million in revenue recorded as a result of a July 2012 amendment of a collaboration agreement and related agreements with Total. Cost of products sold declined to $26.1 million for the nine months ended September 30, 2013 from $71.9 million for the same period in the prior year. Prior year cost of products sold included costs related to the Company's ethanol and ethanol-blended gasoline business. Total R&D and SG&A expenses for the nine months ended September 30, 2013 declined 26.7% to $85.7 million from $116.9 million for the same period in 2012, primarily due to reductions in personnel-related costs and overall lower spending. GAAP net loss attributable to common stockholders for the nine months ended September 30, 2013 was $95.7 million ($1.27 per share) compared to a loss of $161.6 million ($2.91 per share) in the comparable period of 2012. On a non-GAAP basis, excluding stock-based compensation and loss on purchase commitments and write-off of production assets, the net loss attributable to common stockholders was $73.7 million ($0.98 per share) compared to $102.2 million ($1.84 per share) in the prior year. CONFERENCE CALL Amyris will discuss these results and provide a business update in a conference call scheduled for today at 4:30 p.m. ET (1:30 p.m. PT). Investors may access a live audio webcast of this conference call in the Investor Relations section of the Company's website at http://investors.amyris.com. A replay of the webcast will be available in 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 an integrated renewable products company focused on providing sustainable alternatives to a broad range of petroleum-sourced products. Amyris uses its industrial synthetic biology platform to convert plant sugars into a variety of molecules -- flexible building blocks that can be used in a wide range of products. Amyris's initial portfolio of commercial products is based on Biofene®, Amyris's brand of renewable farnesene, a long-chain hydrocarbon. Amyris is commercializing these products both as No Compromise® renewable ingredients in cosmetics, flavors and fragrances, polymers, lubricants and consumer products, and also as No Compromise renewable diesel and jet fuel. 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 the Company's expectations for growth in new areas such as lubricants and specialty fluids and polymers and for achieving positive cash flow from operations and profitability, including the expected timing of such achievements) 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 quarterly report on Form 10-Q filed on August 9, 2013. Amyris disclaims any obligation to update information contained in these forward-looking statements whether as a result of new information, future events, or otherwise. Non-GAAP Financial Information Consolidated financial information has been presented in accordance with GAAP as well as on a non-GAAP basis. The non-GAAP financial measures exclude non-cash items such as stock-based compensation. Management believes that it is useful to supplement its GAAP financial statements with this non-GAAP information because management uses such information internally 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. In addition, Amyris 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. Non-GAAP 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 when understanding Amyris's operating performance. Reconciliation between GAAP and non-GAAP financial information is provided in the financial statement tables below. Amyris, the Amyris logo, Biofene and No Compromise are trademarks or registered trademarks of Amyris, Inc. Amyris, Inc. Condensed Consolidated Statement of Operations (Unaudited) (In thousands, except per share data) ThreeMonthsEnded NineMonthsEnded September 30, September 30, 2013 2012 2013 2012 Revenues Product sales $3,138 $4,728 $10,130 $46,615 Related party product sales 1,006 -- 1,182 -- Total product sales 4,144 4,728 11,312 46,615 Grants and collaborations 2,860 4,605 11,763 11,450 revenue Related party grants and -- 9,775 2,647 9,775 collaborations revenue Total grants and 2,860 14,380 14,410 21,225 collaborations revenue Total revenues 7,004 19,108 25,722 67,840 Costs and operating expenses Cost of products sold 8,328 4,444 26,141 71,891 Loss on purchase commitments and write off of production -- 1,438 8,423 38,090 assets Research and development (1) 13,370 15,736 43,116 55,580 Sales, general and 13,057 17,355 42,602 61,301 administrative (1) Total costs and operating 34,755 38,973 120,282 226,862 expenses Loss from operations (27,751) (19,865) (94,560) (159,022) Other income (expense): Interest income 21 297 114 1,406 Interest expense (2,110) (1,224) (5,230) (3,538) Other income (expense), net 4,177 664 3,266 (512) Total other income (expense) 2,088 (263) (1,850) (2,644) Loss before income taxes (25,663) (20,128) (96,410) (161,666) Benefit (provision) for 1,435 (260) 953 (753) income taxes Net loss $(24,228) $(20,388) $(95,457) $(162,419) Net (income) loss attributable to 29 95 (232) 772 noncontrolling interest Net loss attributable to Amyris, Inc. common $(24,199) $(20,293) $(95,689) $(161,647) stockholders Net loss per share attributable to common $(0.32) $(0.34) $(1.27) $(2.91) stockholders, basic and diluted Weighted-average shares of common stock outstanding used in computing net loss per 76,205,853 58,964,226 75,167,877 55,552,949 share of common stock, basic and diluted (1) Includes stock-based compensation expense of the following for the periods presented: Research and development $1,132 $1,450 $3,428 $4,521 Sales, general and 3,301 4,515 10,183 16,879 administrative $4,433 $5,965 $13,611 $21,400 Amyris, Inc. Condensed Consolidated Balance Sheets (Unaudited) (In thousands) September 30, December 31, 2013 2012 Assets Current assets: Cash, cash equivalents and short-term investments $6,336 $30,689 Accounts receivable, net 2,789 3,846 Related party accounts receivable 1,022 -- Inventories, net 7,948 6,034 Prepaid expenses and other current assets 7,164 8,925 Total current assets 25,259 49,494 Property, plant and equipment, net 140,718 163,121 Restricted cash 956 955 Other assets 19,725 20,112 Goodwill and intangible assets 9,120 9,152 Total assets $195,778 $242,834 Liabilities and Equity Current liabilities: Accounts payable $12,881 $15,392 Deferred revenue 7,351 1,333 Accrued and other current liabilities 20,305 24,410 Capital lease obligation, current portion 1,031 1,366 Debt, current portion 5,448 3,325 Total current liabilities 47,016 45,826 Capital lease obligation, net of current portion 464 1,244 Long-term debt, net of current portion 55,299 61,806 Related party debt 58,091 39,033 Deferred rent, net of current portion 10,084 8,508 Deferred revenue, net of current portion 5,000 4,255 Other liabilities 19,404 15,933 Total liabilities 195,358 176,605 Amyris, Inc. stockholders' equity 1,010 67,106 Noncontrolling interest (590) (877) Total stockholders' equity 420 66,229 Total liabilities and stockholders' equity $195,778 $242,834 Amyris, Inc. Supplemental Consolidated Financial Information (Unaudited) (In thousands, except per share data) ThreeMonthsEnded NineMonthsEnded September 30, September 30, 2013 2012 2013 2012 Other Selected Financial Information: Capital expenditures and deposits on property and $2,190 $5,541 $5,901 $50,906 equipment Depreciation and $3,768 $3,179 $12,259 $10,686 amortization Product sales Ethanol and $-- $1,657 $-- $38,836 ethanol-blended gasoline Renewables 4,144 3,071 11,312 7,779 Total product sales $4,144 $4,728 $11,312 $46,615 Non-GAAP Financial Information: Grants and collaborations Revenue recognized $2,860 $14,380 $14,410 $21,225 Cash received^(1) $25,081 $36,031 $53,141 $58,923 Reconciliationof GAAP to Non-GAAP Net Loss Per Share: Net loss attributable to Amyris Inc., common $(24,199) $(20,293) $(95,689) $(161,647) stockholders (GAAP) Stock-based compensation 4,433 5,965 13,611 21,400 expense Loss on purchase commitments and write -- 1,438 8,423 38,090 off of production assets Net loss attributable to Amyris Inc., common $(19,766) $(12,890) $(73,655) $(102,157) stockholders (Non- GAAP) Net loss per share attributed to common $(0.32) $(0.34) $(1.27) $(2.91) stockholders basic and diluted (GAAP) Stock-based compensation 0.06 0.10 0.18 0.39 expense Loss on purchase commitments and write -- 0.02 0.11 0.68 off of production assets Net loss per share attributed to common $(0.26) $(0.22) $(0.98) $(1.84) stockholders, basic and diluted (Non-GAAP) ^(1) The three months ended September 30, 2013and 2012, includes $20.0 million and $30.0 million, respectively, and the nine months ended September 30, 2013 and 2012,includes $30.0 million and $30.0 million, 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. CONTACT: Amyris, Inc. Investor Relations Joel Velasco (510) 740-7481 firstname.lastname@example.org company logo
Amyris Reports Third Quarter 2013 Financial Results
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