Marrone Bio Innovations Reports First Quarter 2014 Financial Results

Marrone Bio Innovations Reports First Quarter 2014 Financial Results

  *Gained EPA approval and commercially launched Venerate™ bioinsecticide
  *Completed installation of two 20,000 liter fermentation tanks at our
    Michigan facility and initiated commercial production of fermentation
  *Re-iterates guidance to at least double revenues year-over-year

DAVIS, Calif., May 13, 2014 (GLOBE NEWSWIRE) -- Marrone Bio Innovations, Inc.
(Nasdaq:MBII), a provider of bio-based pest management and plant health
products, today announced financial results for the first quarter March 31,

Financial Highlights for the First Quarter of 2014

  *Revenues for the first quarter 2014 totaled $2.8 million, compared to $2.7
    million for the first quarter of 2013, in-line with the company's
    expectations against the headwinds of severe weather in all of our growing
  *Net loss of $10.2 million, compared to net loss of $10.7 million in the
    first quarter of 2013

"Our numerous achievements in the first quarter set the stage for our growth
through the remainder of the year and beyond," said Pam Marrone, Chief
Executive Officer of Marrone Bio Innovations. "We expanded our footprint both
in North and South America, with Regalia^® MAXX registered in six Latin
American countries, and also submitted our biofumigant product MBI-601 for EPA
registration. Marrone Bio Innovations is leading the shift toward sustainable
and effective biological solutions as awareness and enthusiasm for the
category continue to grow."

Recent Business Highlights

  *Launched new product Venerate in the United States. Venerate controls a
    broad spectrum of pest insects and features multiple modes of action, a
    favorable environmental profile and holds an exemption from maximum
    residue level (MRL) tolerances.
  *Completed construction of Phases 1A and 1B of the Michigan manufacturing
    facility which includes two 20,000 liter fermentation tanks and produced
    initial runs of Grandevo and Regalia.
  *Increased penetration of Regalia and Grandevo^® in California nut crops.
  *Regalia enhanced the disease control program in canola. Achieved good
    results of Regalia against soil and foliar potato diseases and MBI-110
    against late blight.
  *Grandevo and Venerate field trials continue to show excellent control of a
    wide range of insect pests such as whiteflies, thrips, psyllids, aphids,
    fruit flies, stinkbugs and Lygus in fruits, nuts vegetables, and cotton in
    the U.S. and Europe.
  *Haven™ protected yield by reducing sunburn on Merlot and table grapes in
    trials in Chile.
  *Received registration for Regalia MAXX biofungicide in Peru. Peru is now
    the sixth country in Latin America to approve the use of Regalia MAXX for
    control of a wide variety of bacterial and fungal diseases in agricultural
  *Received a U.S. patent for Regalia biofungicide covering methods for
    increasing plant growth, root initiation and extension. The patent
    highlights MBI's capability to add unique intellectural property to
    in-licensed technology.
  *Submitted Grandevo and Venerate for registration in Mexico. Our
    bioinsecticides together with Regalia MAXX biofungicide provide Mexican
    farmers a powerful crop protection tool that delivers the benefits of a
    bio-based product in an export-centric region.
  *Submitted MBI-601 biofumigant pipeline product to the EPA for
    registration. MBI-601 controls parasitic nematodes and plant diseases in
    high value crops such as strawberries and tomatoes.
  *Secured a license from Kao Corporation for use of an active ingredient in
    forthcoming MBI anti-transpirant product Haven and signed an agreement for
    access to several biopesticides from The New Zealand Institute for Plant &
    Food Research.

"Our commercial progress continued in the first quarter with expansion into
new regions, the development of new customers and deeper penetration into our
existing customer base," commented Chief Operating Officer Hector Absi.
"Despite challenging weather conditions persisting across several different
regions of the United States we are pleased with our progress and look forward
to the upcoming planting season."

Chief Financial Officer, Jim Boyd commented, "After just two months with the
company I am excited by the momentum of the company and the exciting growth
opportunities that are in front of us. Everyone here is working tremendously
hard to make this company the biological solutions leader in the agriculture

Business Outlook

For the full year 2014 the Company continues to expect net revenues to at
least double compared to the full year 2013. The company also expects to
launch at least 1-2 new products in addition to its insecticide Venerate.

Conference Call Information

Marrone Bio Innovations (Nasdaq:MBII) will host an investor conference call
and webcast the event beginning at 4:30 p.m. Eastern Time on May 13, 2014. To
access the conference call, dial (760) 298-5095 or (877) 303-6220 (toll-free)
and enter passcode 28691286. The webcast and replay will be available on
Marrone Bio Innovations' investor relations website at A replay of the conference call will be
available within two hours of the conclusion of the conference call through
June 12, 2014. To access the replay, please dial (855) 859-2056 or (404)
537-3406 and enter passcode 28691286.

About Marrone Bio Innovations

Marrone Bio Innovations, Inc. (Nasdaq:MBII) is a leading provider of bio-based
pest management and plant health products for the agriculture, turf and
ornamental, and water treatment markets. Our effective and environmentally
responsible solutions help customers operate more sustainably while
controlling pests, improving plant health, and increasing crop yields. We have
a proprietary discovery process, a rapid development platform, and a robust
pipeline of pest management and plant health product candidates. At Marrone
Bio Innovations we are dedicated to pioneering better biopesticides that
support a better tomorrow for users around the globe. For more information,
please visit

Forward-Looking Statements

The statements contained in this press release that are not purely historical
are forward-looking statements within the meaning of Section 21E of the
Securities Exchange Act of 1934, as amended. Forward-looking statements in
this press release include statements regarding our expectations, beliefs,
hopes, goals, intentions, initiatives or strategies, including statements
relating to leveraging our platform to penetrate new markets and the results
from the field trials. Because these forward-looking statements involve risks
and uncertainties, there are important factors that could cause actual results
to differ materially from those in the forward-looking statements, including
the timing of and costs associated with the launch of products, the difficulty
in predicting the timing or outcome of product research and development
efforts and regulatory approvals. Additional relevant information concerning
risks can be found in the Form 10-K that the Company filed with the Securities
and Exchange Commission on March 25, 2014.

Condensed Consolidated Balance Sheets
(In Thousands)
                                                     MARCH31,   DECEMBER 31,
                                                      2014        2013
Current assets:                                                  
Cash and cash equivalents                            $ 21,298    $ 24,455
Short-term investments                               2,664       13,677
Accounts receivable                                  7,231       6,215
Accounts receivable from related parties             1,230       903
Inventories, net                                     12,837      11,666
Prepaid expenses and other current assets            1,765       1,737
Total current assets                                 47,025      58,653
Property, plant and equipment, net                   15,795      9,420
Other assets                                         639         806
Total assets                                         $ 63,459    $ 68,879
Liabilities and stockholders' equity                            
Current liabilities:                                             
Accounts payable                                     $ 8,563     $ 4,460
Accrued liabilities                                  3,040       4,380
Deferred revenue, current portion                    1,017       1,209
Deferred revenue from related parties, current        31          131
Capital lease obligations, current portion           1,680       1,401
Debt, current portion                                123         157
Total current liabilities                            14,454      11,738
Deferred revenue, less current portion               695         744
Deferred revenue from related parties, less current   404         628
Capital lease obligations, less current portion      1,059       1,134
Debt, less current portion                           12,312      12,280
Other liabilities                                    574         571
Total liabilities                                    29,498      27,095
Commitments and contingencies                                   
Stockholders' equity:                                            
Preferred stock                                      —         —
Common stock                                         —         —
Additional paid in capital                           149,643     147,220
Accumulated deficit                                  (115,682)   (105,436)
Total stockholders' equity                           33,961      41,784
Total liabilities and stockholders' equity           $ 63,459    $ 68,879

Condensed Consolidated Statements of Operations
(In Thousands, Except Per Share Amount)
                                                        THREE MONTHS ENDED
                                                         MARCH 31
                                                        2014       2013
Product                                                 $ 2,097    $ 2,373
License                                                 45         48
Related party                                           648        309
Total revenues                                          2,790      2,730
Cost of product revenues, including cost of product
revenues to related parties of $192 and $194 for the     1,652      1,795
three months ended March 31, 2014 and 2013,
Gross profit                                            1,138      935
Operating expenses:                                                
Research, development and patent                        4,282      3,283
Selling, general and administrative                     6,330      2,847
Total operating expenses                                10,612     6,130
Loss from operations                                    (9,474)    (5,195)
Other income (expense):                                            
Interest income                                         10         1
Interest expense                                        (773)      (1,985)
Change in estimated fair value of financial instruments --       (3,563)
Other expense, net                                      (9)        (7)
Total other expense, net                                (772)      (5,554)
Loss before income taxes                                (10,246)   (10,749)
Income taxes                                            --       --
Net loss                                                $ (10,246) $ (10,749)
Net loss per common share:                                         
Basic and diluted                                       $ (0.52)   $ (8.48)
Weighted-average shares outstanding used in computing              
net loss per common share:
Basic and diluted                                       19,518     1,268

Condensed Consolidated Statements of Cash Flows
(In Thousands)
                                                        THREE MONTHS ENDED
                                                         MARCH 31
                                                        2014       2013
Cash flows from operating activities                               
Net loss                                                $ (10,246) $ (10,749)
Adjustments to reconcile net loss to net cash used in              
operating activities:
Depreciation and amortization                           488        184
Share-based compensation                                1,522      249
Non-cash interest expense                               248        1,467
Change in estimated fair value of financial instruments  --        3,563

Amortization of investment securities                    9          --
premiums/discounts, net
Net changes in operating assets and liabilities:                   
Accounts receivable                                     (1,016)    59
Accounts receivable from related parties                (327)      (132)
Inventories                                             (1,171)    (495)
Prepaid expenses and other assets                       (224)      (558)
Accounts payable                                        2,737      138
Accrued and other liabilities                           (1,337)    (1,320)
Deferred revenue                                        (241)      (48)
Deferred revenue from related parties                   (324)      (33)
Net cash used in operating activities                   (9,882)    (7,675)
Cash flows from investing activities                               
Purchases of property, plant and equipment              (5,044)    (432)
Purchase of short-term investments                      (49)       --
Maturities of short-term investments                    11,053     --
Net cash provided by (used in) investing activities     5,960      (432)
Cash flows from financing activities                               
Repayment of debt                                       (67)       (9,224)
Repayment of capital leases                             (69)       (25)
Change in restricted cash                               --       9,139
Proceeds from exercise of stock options                 851        2
Proceeds from exercise of common stock warrants         50         --
Net cash provided by (used in) financing activities     765        (108)
Net decrease in cash and cash equivalents               (3,157)    (8,215)
Cash and cash equivalents, beginning of year            24,455     10,006
Cash and cash equivalents, end of period                $ 21,298   $ 1,791
Supplemental disclosure of cash flow information                   
Cash paid for interest, net of capitalized interest of
$469 and $113 for the three months ended March 31, 2014  $ 525      $ 518
and 2013, respectively
Supplemental disclosure of non-cash investing and                  
financing activities
Property, plant and equipment included in accounts       $ 2,040    $--
payable and accrued liabilities 
Equipment acquired under capital leases                 $ 453      $ 77
Interest added to the principal of convertible notes    $--     $ 628

CONTACT: Investor Contact
         The Blueshirt Group
         David Niederman

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