EMERYVILLE, Calif., May 14, 2018 (GLOBE NEWSWIRE) -- Amyris, Inc. (Nasdaq:AMRS), the industrial bioscience company, today announced preliminary unaudited financial results for the first quarter ended March 31, 2018.
“We continue to execute well on our business plan and to lead the industry in growing our top line revenue while significantly expanding our gross margin,” said John Melo, Amyris President & CEO. “We are on track for another record year and continue to perform extremely well in both our consumer and our ingredient businesses. Biossance, our Clean Beauty brand, grew at over 400% in the first quarter and we expect to continue performing well as one of the fastest growing skin care brands in the U.S., also available now in Brazil and Canada.”
Key Highlights
Other key recent operating and development highlights included:
Financial Performance (preliminary unaudited)
First Quarter 2018
FINANCIAL RESULTS AND NON-GAAP INFORMATION
To supplement our financial results and guidance presented on a GAAP basis, we use non-GAAP measures that we believe are helpful in understanding our results. These non-GAAP measures are among the factors management uses in planning and forecasting future periods. 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. Management believes these non-GAAP financial measures are useful to investors because they allow for greater transparency into the indicators used by management to understand, manage, and evaluate our business and make operating decisions. Our non-GAAP financial measures include the following:
Non-GAAP net income/loss calculated as GAAP net income/loss excluding stock-based compensation expense, gain on divestitures, gains and losses from changes in the fair value of derivatives, debt extinguishment costs, depreciation, as well as tangible asset impairments.
Non-GAAP financial 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 in order to understand Amyris’s operating performance. A reconciliation of the non-GAAP financial measures presented in this release, including non-GAAP net income/net loss, to the most directly comparable GAAP financial measure, is provided in the tables attached to this press release.
QUARTERLY CONFERENCE CALL TODAY
Amyris will discuss these results and provide a business update in a conference call scheduled for 4:30 p.m. ET (1:30 p.m. PT) today. Investors may access the call by dialing (866) 516-3867, participant passcode: 4094206.
A live audio webcast of this conference call and accompanying presentation is also available by visiting the investor relations section of the company's website at http://investors.amyris.com. A replay of the webcast will be available at the investor relations section of the company's website approximately two hours after the conclusion of the call.
About Amyris
Amyris is the integrated renewable products company that is enabling the world’s leading brands to achieve sustainable growth. Amyris applies its innovative bioscience solutions to convert plant sugars into hydrocarbon molecules and produce specialty ingredients and consumer products. The company is delivering its No Compromise™ products and services across a number of markets, including specialty and performance chemicals, flavors and fragrances, cosmetics ingredients, pharmaceuticals, and nutraceuticals. More information about the company is available at www.amyris.com.
Forward-Looking Statements
This release contains forward-looking statements, and any statements other than statements of historical fact could be deemed to be forward-looking statements. These forward-looking statements include, among other things, statements regarding future events, such as anticipated 2018 business performance, expected performance and growth of the Biossance skin care brand, and anticipated timing for commercial scale production of a new sweetener product, 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 risks related to Amyris's liquidity and ability to fund operating and capital expenses, potential delays or failures in development, production and commercialization of products, risks related to Amyris's reliance on third parties, and other risks detailed from time to time in filings Amyris makes with the Securities and Exchange Commission, including Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. 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, No Compromise, and Biossance are trademarks or registered trademarks of Amyris, Inc. in the U.S. and/or other countries. All other trademarks are the property of their respective owners.
Contact:
Peter DeNardo
Director, Investor Relations and Corporate Communications
Amyris, Inc.
+1 (510) 740-7481
investor@amyris.com
pr@amyris.com
-Financial Tables Attached-
| Amyris, Inc. | ||||||||
| Condensed Consolidated Balance Sheets | ||||||||
| (In thousands) | March 31, 2018 | December 31, 2017 | ||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 24,084 | $ | 57,059 | ||||
| Restricted cash | 2,454 | 2,994 | ||||||
| Accounts receivable, net | 25,730 | 24,281 | ||||||
| Unbilled receivable | 11,232 | 9,340 | ||||||
| Inventories | 4,998 | 5,408 | ||||||
| Prepaid expenses and other current assets | 7,340 | 5,525 | ||||||
| Total current assets | 75,838 | 104,607 | ||||||
| Property, plant and equipment, net | 12,880 | 13,892 | ||||||
| Unbilled receivable, noncurrent | 5,955 | 7,940 | ||||||
| Restricted cash, noncurrent | 959 | 959 | ||||||
| Recoverable taxes from Brazilian government entities | 1,226 | 1,445 | ||||||
| Other assets | 21,302 | 22,640 | ||||||
| Total assets | $ | 118,160 | $ | 151,483 | ||||
| Liabilities, mezzanine equity and stockholders' deficit | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | 16,054 | 15,921 | ||||||
| Accrued and other current liabilities | 26,622 | 29,402 | ||||||
| Deferred revenue | 6,466 | 4,880 | ||||||
| Debt, current portion | 34,252 | 36,924 | ||||||
| Related party debt, current portion | 27,171 | 20,019 | ||||||
| Total current liabilities | 110,565 | 107,146 | ||||||
| Long-term debt, net of current portion | 62,489 | 61,893 | ||||||
| Related party debt, net of current portion | 39,147 | 46,541 | ||||||
| Derivative liabilities | 183,189 | 119,978 | ||||||
| Other noncurrent liabilities | 8,981 | 10,632 | ||||||
| Total liabilities | 404,371 | 346,190 | ||||||
| Mezzanine equity: | ||||||||
| Contingently redeemable common stock | 5,000 | 5,000 | ||||||
| Amyris, Inc. stockholders’ deficit | (292,148 | ) | (200,644 | ) | ||||
| Noncontrolling interest | 937 | 937 | ||||||
| Total stockholders' deficit | (291,211 | ) | (199,707 | ) | ||||
| Total liabilities, mezzanine equity and stockholders' deficit | $ | 118,160 | $ | 151,483 | ||||
| Unaudited Financial Statements | ||||||||
| Amyris, Inc. | ||||||||
| Condensed Consolidated Statements of Operations | ||||||||
| Three Months Ended March 31, | ||||||||
| (In thousands, except per share data) | 2018 | 2017 | ||||||
| Revenue | ||||||||
| Renewable products (includes related party revenue of $151 and $0, respectively) | $ | 5,195 | $ | 8,037 | ||||
| Licenses and royalties (includes related party revenue of $11,400 and $0, respectively) (1) | 11,437 | 255 | ||||||
| Grants and collaborations (includes related party revenue of $1,390 and $0, respectively) | 6,366 | 4,688 | ||||||
| Total revenue (includes related party revenue of $12,941 and $0, respectively) | 22,998 | 12,980 | ||||||
| Cost and operating expenses | ||||||||
| Cost of products sold | 5,315 | 12,768 | ||||||
| Research and development (2) | 18,813 | 14,778 | ||||||
| Sales, general and administrative (2) | 18,757 | 12,778 | ||||||
| Total cost and operating expenses | 42,885 | 40,324 | ||||||
| Income (loss) from operations | (19,887 | ) | (27,344 | ) | ||||
| Other income (expense): | ||||||||
| Interest expense | (8,205 | ) | (12,184 | ) | ||||
| Gain (loss) from change in fair value of derivative instruments (3) | (63,913 | ) | 2,339 | |||||
| Gain (loss) upon extinguishment of debt | - | 96 | ||||||
| Other income (expense), net | 509 | (319 | ) | |||||
| Total other expense | (71,609 | ) | (10,068 | ) | ||||
| Loss before income taxes | (91,496 | ) | (37,412 | ) | ||||
| Provision for income taxes | - | 41 | ||||||
| Net loss attributable to Amyris, Inc. | (91,496 | ) | (37,371 | ) | ||||
| Less cumulative dividends on Series B preferred stock | (395 | ) | - | |||||
| Net loss attributable to Amyris, Inc. common stockholders | $ | (91,891 | ) | $ | (37,371 | ) | ||
| Net loss per share attributable to common stockholders, basic and diluted (4) | $ | (1.79 | ) | $ | (1.93 | ) | ||
| Weighted-average shares of common stock outstanding used in computing net loss per share of common stock, basic and diluted | 51,200,922 | 19,335,948 | ||||||
| (1) Value share revenue has been reclassified to licenses and royalties revenue from renewable products revenue to better reflect the company’s current business model and to provide more transparency as that portion of overall revenue grows. Prior-year amounts have been reclassified to conform to this presentation. | ||||||||
| (2) Includes stock-based compensation expense as follows: | 2018 | 2017 | ||||||
| Research and development | $ | 363 | $ | 484 | ||||
| Sales, general and administrative | 915 | 1,162 | ||||||
| $ | 1,278 | $ | 1,646 | |||||
| (3) Upon remeasuring the fair value of its derivative liabilities, the Company recorded a non-cash loss for the three months ended March 31, 2018, and a non-cash gain for the three months ended March 31, 2017. Changes in the fair value of derivative liabilities are primarily the result of changes in Amyris's stock price during each of the periods presented. The gains and losses for all periods presented include the change in fair value of derivatives in connection with certain features of outstanding convertible notes, related to change in control protection and price-based anti-dilution adjustment provisions. | ||||||||
| (4) The Company is reviewing its calculations of net loss per share for the three months ended March 31, 2018, which will be finalized in the 10-Q to be filed subsequent to this release. | ||||||||
| Amyris, Inc. | ||||||||
| Reconciliation of GAAP to Non-GAAP Financial Information | ||||||||
| Three Months Ended March 31, | ||||||||
| (In thousands, except per share data) | 2018 | 2017 | ||||||
| Net loss attributable to Amyris, Inc. common stockholders (GAAP) | $ | (91,891 | ) | $ | (37,371 | ) | ||
| Non-GAAP adjustments: | ||||||||
| Stock-based compensation expense | 1,278 | 1,646 | ||||||
| (Gain) loss from change in fair value of derivative instruments (2) | 63,913 | (2,339 | ) | |||||
| Loss upon extinguishment of debt | - | (96 | ) | |||||
| Cumulative dividends on Series B preferred stock | 395 | - | ||||||
| Net income (loss) attributable to Amyris, Inc. common stockholders (non-GAAP) | $ | (26,305 | ) | $ | (38,160 | ) | ||
| Weighted-average shares outstanding | ||||||||
| Basic shares oustanding (GAAP) | 51,200,922 | 19,335,948 | ||||||
| Impact of derivative instruments | (929,722 | ) | - | |||||
| Basic shares outstanding (non-GAAP) | 50,271,200 | 19,335,948 | ||||||
| Net loss per share attributable to Amyris, Inc. common stockholders - Basic (GAAP) (3) | $ | (1.79 | ) | $ | (1.93 | ) | ||
| Non-GAAP adjustments: | ||||||||
| Stock-based compensation expense | 0.02 | 0.09 | ||||||
| (Gain) loss from change in fair value of derivative instruments (2) | 1.25 | (0.12 | ) | |||||
| (Gain) loss upon extinguishment of debt | - | - | ||||||
| Cumulative dividends on Series B preferred stock | 0.01 | - | ||||||
| Effect of non-GAAP shares on basic earnings (loss) per share | (0.01 | ) | (0.01 | ) | ||||
| Net income (loss) per share attributable to Amyris, Inc. common stockholders - Basic (non-GAAP) | $ | (0.52 | ) | $ | (1.97 | ) | ||
| - | - | |||||||
| Unaudited Financial Statements | ||||||||
| Amyris, Inc. | |||||||
| Reconciliation of GAAP to Non-GAAP Financial Information | |||||||
| Three Months Ended March 31, | |||||||
| (In thousands) | 2018 | 2017 | |||||
| Revenue (GAAP and non-GAAP) | |||||||
| Renewable products | $ | 5,195 | $ | 8,037 | |||
| Licenses and royalties | 11,437 | 255 | |||||
| Grants and collaborations | 6,366 | 4,688 | |||||
| Total revenue (GAAP and non-GAAP) | $ | 22,998 | $ | 12,980 | |||
| Cost of products sold (GAAP) | $ | 5,315 | $ | 12,768 | |||
| Other costs/provisions | (719 | ) | 2,637 | ||||
| Excess capacity | (505 | ) | (920 | ) | |||
| Depreciation and amortization | (92 | ) | (931 | ) | |||
| Cost of products sold (non-GAAP) | $ | 3,999 | $ | 13,554 | |||
| Adjusted gross profit (non-GAAP)(1) | $ | 18,999 | $ | (574 | ) | ||
| Gross margin (%) | 82.6 | % | -4.4 | % | |||
| Research and development expense (GAAP) | $ | 18,813 | $ | 14,778 | |||
| Stock-based compensation expense | (363 | ) | (484 | ) | |||
| Depreciation and amortization | (1,275 | ) | (1,601 | ) | |||
| Research and development expense (non-GAAP) | $ | 17,175 | $ | 12,693 | |||
| Sales, general and administrative expense (GAAP) | $ | 18,757 | $ | 12,778 | |||
| Stock-based compensation expense | (915 | ) | (1,162 | ) | |||
| Depreciation and amortization | (194 | ) | (208 | ) | |||
| Sales, general and administrative expense (non-GAAP) | $ | 17,648 | $ | 11,408 | |||
| (1) Non-GAAP Adjusted Gross Profit is calculated based on non-GAAP adjustments to cost of products sold, and does not include costs related to collaborations. | |||||||
| Unaudited Financial Information | |||||||