Amyris Reports Fourth Quarter and Year-End 2013 Financial Results

Amyris Reports Fourth Quarter and Year-End 2013 Financial Results

Record Renewable Product Sales, Continued Lower Operating Costs, and Strong
Collaboration Inflows

EMERYVILLE, Calif., Feb. 25, 2014 (GLOBE NEWSWIRE) -- Amyris, Inc.
(Nasdaq:AMRS), a leading renewable chemicals and fuels company, today
announced financial results for the fourth quarter and year ended December 31,
2013 and provided forward looking guidance for 2014.

"In 2013, we proved that our technology can produce and we can sell multiple
renewable hydrocarbon molecules at industrial scale. We successfully scaled
and operated our farnesene plant and shipped our first batches of a new
fragrance oil, our second commercial molecule. We achieved a nearly 50%
increase in renewable product revenues, significantly improved our adjusted
gross margin, and continued to validate the strength of our research and
development pipeline with funding from our collaboration partners," said John
Melo, Amyris President & CEO.

"Looking ahead, our robust collaboration and product pipeline, continued
production cost improvements, and strong demand from our customers for our
high performance products underpin our plans to achieve our targets of
becoming cash flow positive from operations during 2014 and profitable during
2015," Melo concluded.

BUSINESS HIGHLIGHTS

In the fourth quarter of 2013, Amyris continued to make progress in improving
its technology platform, manufacturing capabilities and commercialization
network. Key operating and development highlights achieved during the fourth
quarter and full year 2013 include:

 Renewable Production

  *Completed first year of operations at our purpose-built farnesene
    production facility in Brotas, São Paulo, Brazil.
  *Doubled total farnesene volume produced compared to 2012 and approached
    our $4 per liter farnesene production cash cost target during the second
    half of the year.
  *Produced our first renewable fragrance oil for our partner Firmenich.

 Collaboration & Sales Inflows

  *Combined collaboration and sales cash inflows of over $70 million on a
    non-GAAP basis.
  *Increased renewable product revenues 46% to $15.8 million on a GAAP basis,
    and had additional off-take volumes that were not shipped in 2013,
    bringing us in line with our prior guidance.
  *Received $54.6 million in collaboration funding and, since quarter end,
    received an additional $4.5 million, making this the third year in a row
    where Amyris secured approximately $60 million in collaboration funding.
  *Continued to meet all key milestones associated with active
    collaborations, paving the way for expanded collaborations in 2014 with
    current and new partners.
  *Established fuels joint venture with TOTAL to produce and market renewable
    diesel and jet fuel from the Company's renewable farnesane.

 Strengthened Financial Performance

  *Continued progress in reducing operating expenses, down by 26% from 2012
    and 34% from 2011.
  *Secured collaboration inflows to cover the majority of our cash operating
    expenses.
  *Completed first tranche of convertible note offering for $42.6 million in
    cash proceeds during the quarter.
  *Following quarter-end, completed second tranche of convertible note
    offering for additional cash proceeds of $28.0 million.

FORWARD-LOOKING GUIDANCE AND OUTLOOK

Based on our current plans, the continued success of technology development,
execution on collaboration agreements, operational excellence in
manufacturing, and new product launches, Amyris expects to achieve the
following:

  *Inflows. We expect to achieve total cash inflows, which include revenues
    from renewable product sales and inflows from collaborations, in the range
    of $100 to $115 million for 2014. Specifically, we expect (a) to more than
    double sales of renewable products over 2013 and achieve positive cash
    margin from products in the range of $10 to $15 million in 2014 and (b) to
    maintain collaboration inflows in the range of $60 to $70 million.
    
  *Expenses. We expect cash operating expenses for R&D and SG&A in the range
    of $80 to $85 million and capital expenditures less than $10 million in
    2014.
    
  *Earnings. We expect to achieve positive cash flow from operations during
    2014, with positive non-GAAP EBITDA during the second half of 2014. We
    expect to become profitable during 2015.
    
  *Payback. We expect cash payback for Brotas biorefinery in the next two
    years (following 2013 start-up year), based on plant cash contributions of
    $10 to $15 million in 2014 and $40 to $50 million in 2015.

CONFERENCE CALL AND INVESTOR CONFERENCE

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.

Amyris will participate in the Stifel Industrials Conference 2014 taking place
on February 27 in New York City. Amyris CEO, John Melo, is scheduled to make a
presentation at 10:55 a.m. ET. A live webcast will be available in the
Investor Relations section of the Company's website at
http://investors.amyris.com. 

FINANCIAL RESULTS

The Company's quarterly and annual results include both GAAP and non-GAAP
financial information, because the Company considers non-GAAP information to
be a helpful measure to assess its operational performance and for financial
and operational decision-making.The Company's non-GAAP financial information
excludes stock-based compensation, loss on purchase commitments and write off
of production assets, depreciation and amortization, other expenses related to
fair value of derivatives and debt extinguishment, but adds back accounts
receivable, deferred revenue and funding associated with
collaborations.Non-GAAP EBITDA is calculated using non-GAAP product sales and
collaboration inflows, cost of products sold and expenses.Non-GAAP net loss
attributable to Amyris, Inc. common stockholders is calculated using GAAP net
loss attributable to Amyris, Inc. common stockholders and excluding the
non-GAAP financial information described above.A reconciliation of the
non-GAAP financial measures presented in this release, including non-GAAP net
loss and non-GAAP EBITDA, to their GAAP equivalents, is provided in the tables
to this press release.

Fourth Quarter 2013

Revenues are based on the two pillars of the Company's business model –
Collaboration inflows and Product sales.

Aggregate revenues for the fourth quarter of 2013 were $15.4 million, compared
to $5.9 million for the fourth quarter of 2012.

During the fourth quarter of 2013, the Company's cost of products sold,
excluding loss on purchase commitments and write off of production assets was
$12.1 million, compared with $5.4 million, for the fourth quarter of 2012.
Cost of products sold for the fourth quarter were driven by higher volumes
sold and higher manufacturing costs associated with the initial production of
our new fragrance oil. 

Combined research & development expenses and sales, general & administrative
expenses for the fourth quarter of 2013 were $27.4 million, compared with
$35.5 million for the fourth quarter of 2012. The 23% decrease in operating
expenses is a result of reductions in personnel-related costs and overall
lower spending in comparison to the prior year.

Net loss attributable to Amyris common stockholders for the fourth quarter of
2013, on a non-GAAP basis, was $19.6 million, or $0.26 per share, compared to
a net loss of $26.1 million, or $0.44 per share, for the same period of 2012.
On a GAAP basis, net loss attributable to Amyris common stockholders for the
fourth quarter was $139.4 million, or $1.83 per share, which includes a
non-cash expense related to fair value of derivatives and debt extinguishment
of $110.0 million, or $1.44 per share. This non-cash charge was triggered by
features of the convertible notes, held primarily by our leading stockholders,
related to downside protection and change of control. The valuation of these
derivative liabilities increased as a result of the substantial appreciation
in the Company's stock price during the fourth quarter of 2013. In the fourth
quarter of 2012, the GAAP net loss attributable to Amyris common stockholders
was $43.5 million, or $0.72 per share. A reconciliation of GAAP to non-GAAP
results is included in this release.

As of December 31, 2013, the Company had derivative liabilities primarily
related to the Company's previously issued convertible notes, with a fair
value of $134.7 million. The Company estimates the fair value of these
derivatives using several valuation models. Changes in the inputs for these
valuation models may have a significant impact in the estimated fair value of
the derivative liabilities. For example, an increase in the Company's stock
price results in an increase in the estimated fair value of the derivative
liabilities. The changes in the fair value of the derivative liabilities
during the fourth quarter of 2013 were primarily related to the increase in
the Company's stock price.

Year Ended December 31, 2013

Combined collaboration and product sales inflows was $70.4 million for the
year, on a non-GAAP basis, considering the $30 million in funding received
from TOTAL. On a GAAP basis, aggregate revenues for the year ended December
31, 2013 were $41.1 million, compared with $73.7 million for 2012, which
included $38.8 million of sales related to the Company's transition out of the
ethanol and ethanol-blended gasoline business.

Of the $41.1 million in aggregate revenues during 2013, $15.8 million was
related to renewable product sales and $25.3 million was related to grants and
collaborations revenue. This compares with $10.8 million in renewable product
sales and $24.1 million in grants and collaborations revenue in the prior
year. The 46% increase in renewable product revenues was due to continued
increases in sales of renewable products, primarily Neossance™ Squalane
globally and Diesel de Cana™ in Brazil.

For 2013, cost of products sold, excluding loss on purchase commitments and
write off of production assets was $38.3 million, compared with $77.3 million
for 2012. Cost of product sold for 2013 reflects a significant increase in
production volumes at the Company's production facility in Brazil, while 2012
cost of products sold included $38.6 million in costs related to the Company's
ethanol and ethanol-blended gasoline business.

During 2013, Amyris had product sales and collaboration inflows of $41.4
million on a GAAP basis, which subtracting cost of products sold excluding
loss on purchase commitments and write off of production assets of $38.3
million, results in a gross profit of $3.1 million for the year. On a non-GAAP
basis, using the same financial measures, gross profit was $38.2 million
generating a 54% gross margin compared with a gross margin of 33% for 2012.

Combined research & development and sales, general & administrative expenses
for the year ended December 31, 2013 declined 25.8% to $113.1 million from
$152.3 million for the prior year. The reduction in 2013 was primarily due to
reductions in personnel-related costs and overall lower spending.

Net loss attributable to Amyris common stockholders for 2013, on a non-GAAP
basis, was $86.4 million, or $1.15 per share, compared to a net loss of $117.2
million, or $2.07 per share, for 2012.

On a GAAP basis, net loss attributable to Amyris common stockholders for the
year ended December 31, 2013 was $235.1 million, or $3.12 per share, which
includes non-cash expenses related to fair value of derivatives and debt
extinguishment of $104.6 million, or $1.39 per share, as further described in
the fourth quarter results. In 2012, the GAAP net loss attributable to Amyris
common stockholders was $205.1 million, or $3.62 per share. A reconciliation
of GAAP to non-GAAP results is included in this release.

Non-GAAP Financial Information

Condensed 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, loss on purchase
commitments and write-off of production assets, depreciation and amortization,
other expenses related to fair value of derivatives and debt extinguishment
but adds back accounts receivable, deferred revenue and funding associated
with collaborations. 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' 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' operating performance.
Reconciliation between GAAP and non-GAAP financial information is provided in
the financial statement tables below.

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 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' 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 a business plan for 2014 and
beyond (which includes planned revenues and cash inflows, product sales and
collaboration revenues, cash operating expenses, achievement of positive cash
flow from operations in 2014, profitability in 2015, cash gross margins, and
cash payback for and contribution from a production plant), success of
technology development, execution on collaboration agreements, operational
excellence in manufacturing, new product launches, a pipeline for research and
development collaborations, product cost improvements, and growth in demand
from customers for the Company's products)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' reliance on third parties to
achieve its goals, and other risks detailed in the "Risk Factors" section of
Amyris' quarterly report on Form 10-Q filed on November 5, 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.

Amyris, the Amyris logo, Biofene, Neossance, Diesel de Cana, and No Compromise
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)
                                                              
                                                    December 31,
                                                    2013       2012
                                                              
Assets                                                         
Current assets:                                                
Cash, cash equivalents and short-term investments    $8,296   $30,689
Accounts receivable, net                             7,734      3,846
Related party accounts receivable                    484        --
Inventories, net                                     10,888     6,034
Prepaid expenses and other current assets            9,518      8,925
Total current assets                                 36,920     49,494
Property, plant and equipment, net                   140,591    163,121
Restricted cash                                      1,648     955
Other assets                                         10,585     20,112
Goodwill and intangible assets                       9,120      9,152
Total assets                                         $198,864 $242,834
                                                              
Liabilities and Equity (Deficit)                               
Current liabilities:                                           
Accounts payable                                     $6,512   $15,392
Deferred revenue                                     2,222     1,333
Accrued and other current liabilities                21,221    24,410
Capital lease obligation, current portion            956       1,366
Debt, current portion                                6,391     3,325
Total current liabilities                            37,302    45,826
Capital lease obligation, net of current portion     287       1,244
Long-term debt, net of current portion               56,172    61,806
Related party debt                                   89,499    39,033
Deferred rent, net of current portion                10,191    8,508
Deferred revenue, net of current portion             5,000     4,255
Derivative liability                                 134,717   9,261
Other liabilities                                    1,544     6,672
Total liabilities                                    334,712   176,605
                                                              
Amyris, Inc. stockholders' equity (deficit)          (135,264) 67,106
Noncontrolling interest                              (584)     (877)
Total stockholders' equity (deficit)                 (135,848) 66,229
                                                              
Total liabilities and stockholders' equity (deficit) $198,864 $242,834



Amyris, Inc.
Condensed Consolidated Statement of Operations
(Unaudited)
(In thousands, except per share data)
                          ThreeMonthsEnded        YearEnded
                          December 31, December 31, December 31, December 31,
                           2013         2012         2013         2012
Revenues                                                       
Renewables                 $4,298     $3,023     $14,428    $10,802
Ethanol and                --         --         --         $38,836
ethanol-blended gasoline
Related party renewables   198         --         1,380       --
Total product sales        4,496       3,023       15,808      49,638
Grants and collaborations  10,901      2,831       22,664      14,281
revenue
Related party grants and   --         --         2,647       9,775
collaborations revenue
Total grants and           10,901      2,831       25,311      24,056
collaborations revenue
Total revenues             15,397      5,854       41,119      73,694
Costs and operating                                            
expenses
Cost of products sold      12,112      5,423       38,253      77,314
Loss on purchase
commitments and write off  943         7,764       9,366       45,854
of production assets
Research and development   12,949      18,050      56,065      73,630
^(1)
Sales, general and         14,449      17,417      57,051      78,718
administrative ^(1)
Total costs and operating  40,453      48,654      160,735     275,516
expenses
Loss from operations       (25,056)    (42,800)    (119,616)   (201,822)
Other income (expense):                                        
Other income (expense)
related to fair value of   (110,020)   320         (104,640)   (51)
derivative & debt
extinguishment
Other income (expense),    (4,267)     (906)       (11,498)    (3,179)
net
Total other income         (114,287)   (586)       (116,138)   (3,230)
(expense)
Loss before income taxes   (139,343)   (43,386)    (235,754)   (205,052)
Benefit (provision) for    (106)       (228)       847         (981)
income taxes
Net loss                   $(139,449) $(43,614)  $(234,907) $(206,033)
Net (income) loss
attributable to            28          122         (204)       894
noncontrolling interest
Net loss attributable to
Amyris, Inc. common        $(139,421) $(43,492)  $(235,111) $(205,139)
stockholders
Net loss per share
attributable to common     $(1.83)    $(0.72)    $(3.12)    $(3.62)
stockholders, basic and
diluted
Weighted-average shares of
common stock outstanding
used in computing net loss 76,377,574   60,187,256   75,472,770   56,717,869
per share of common stock,
basic and diluted
___________                                                   
^(1)Includes stock-based compensation expense of the following for the
periods presented:
                                                              
Research and development   $853       $1,930     $4,281     $6,451
Sales, general and         3,583       4,143       13,766      21,022
administrative
                          $4,436     $6,073     $18,047    $27,473
                                                              
                                                              
Amyris, Inc.
Reconciliation of GAAP to Non-GAAP Financial Information
(Unaudited)
(In thousands, except per share data)
                          ThreeMonthsEnded        YearEnded
                          December 31, December 31, December 31, December 31,
                           2013         2012         2013         2012
                                                              
Net loss attributable to
Amyris, Inc. common        $(139,421) $(43,492)  $(235,111) $(205,139)
stockholders (GAAP)
Loss on purchase
commitments and write off  943         7,764       9,366       45,854
of production assets
Stock-based compensation   4,436       6,073       18,047      27,473
expense
Depreciation and           4,380       3,885       16,639      14,570
amortization
Other expenses related to
fair value of derivatives  110,020     (320)       104,640     51
& debt extinguishment
Net loss attributable to
Amyris, Inc. common        $(19,642)  $(26,090)  $(86,419)  $(117,191)
stockholders (Non-GAAP)
                                                              
Net loss per share
attributable to Amyris,    $(1.83)    $(0.72)    $(3.12)    $(3.62)
Inc. common stockholders,
basic and diluted (GAAP)
Loss on purchase
commitments and write off  0.01        0.13        0.12        0.81
of production assets
Stock-based compensation   0.06        0.10        0.24        0.48
expense
Depreciation and           0.06        0.06        0.22        0.26
amortization
Other expenses related to
fair value of derivatives  1.44        (0.01)      1.39        --
& debt extinguishment
Net loss per share
attributable to Amyris,
Inc. common stockholders,  $(0.26)    $(0.44)    $(1.15)    $(2.07)
basic and diluted
(Non-GAAP)



Amyris, Inc.
Reconciliation of GAAP to Non-GAAP Financial Information
(Unaudited)
(In thousands, except per share data)
                                                              
                        ThreeMonthsEnded          YearEnded
                        December 31,  December 31,  December 31, December 31,
                         2013          2012          2013         2012
                                                              
Product sales (GAAP)                                           
Renewables               $4,496      $3,023      $15,808    $10,802
Ethanol and              --          --          --         38,836
ethanol-blended gasoline
Product Sales (GAAP &    $4,496      $3,023      $15,808    $49,638
Non-GAAP)
                                                              
Grants and
collaborations revenue   $10,901     $2,831      $25,311    $24,056
(GAAP)
Change in accounts
receivable, deferred
revenue and fundings     (9,457)      148          29,274      37,846
associatedwith
collaborations
Collaboration Inflows    $1,444      $2,979      $54,585    $61,902
(Non-GAAP) ^ (1)
                                                              
Total Revenues (GAAP)    $15,397     $5,854      $41,119    $73,694
Change in deferred
revenue and fundings     (9,457)      148          29,274      37,846
associated with
collaborations
Total Product Sales and
Collaboration Inflows    $5,940      $6,002      $70,393    $111,540
(Non-GAAP) ^ (1)
                                                              
Costs of products sold   $13,055     $13,187     $47,619    $123,168
(GAAP)
Loss on purchase
commitments and write    $(943)      $(7,764)    $(9,366)   $(45,854)
off of production assets
Depreciation and         (1,827)      (757)        (6,094)     (2,879)
amortization
Costs of products sold   $10,285     $4,666      $32,159    $74,435
(Non-GAAP)
                                                              
Gross Profit (Non-GAAP)  $(4,345)    $1,336      $38,234    $37,105
^(2)
Gross Margin (Non-GAAP   -73.1%        22.3%         54.3%        33.3%
%)
                                                              
Research and development $12,949     $18,050     $56,065    $73,630
(GAAP)
Stock-based compensation (853)        (1,930)      (4,281)     (6,451)
expense
Depreciation and         (2,174)      (1,767)      (8,869)     (6,295)
amortization
Research and development $9,922      $14,353     $42,915    $60,884
(Non-GAAP)
                                                              
Sales, general and       $14,449     $17,417     $57,051    $78,718
administrative (GAAP)
Stock-based compensation (3,583)      (4,143)      (13,766)    (21,022)
expense
Depreciation and         (379)        (1,361)      (1,676)     (5,396)
amortization
Sales, general and
administrative           $10,487     $11,913     $41,609    $52,300
(Non-GAAP)
                                                              
EBITDA (Non-GAAP)        $(24,754)   $(24,930)   $(46,290)  $(76,079)
                                                              
EBITDA (Non-GAAP) Per    $(0.32)     $(0.41)     $(0.61)    $(1.34)
Share
                                                              
(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 years ended December 31, 2013 and 2012 includes $30.0 million for both
years from Total fundings 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: Amyris, Inc.
         Investor Relations
         Joel Velasco
         (510) 740-7481
         investor@amyris.com

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