BioAmber Reports Second Quarter 2013 Financial Results
MINNEAPOLIS, MN, Aug. 12, 2013 /PRNewswire/ – BioAmber Inc. (NYSE and
EURONEXT Paris: BIOA), an industrial biotechnology company producing
renewable chemicals, today announced its financial results for the
three months ended June 30,( )2013. Highlights included:
-- On schedule to mechanically complete the Company's planned 30,000 MT bio-succinic acid plant in Sarnia, Ontario in the fourth quarter of 2014. -- Sold over $1 million of succinic acid in the quarter, the highest quarterly sales to date -- Completed an IPO on the New York Stock Exchange and dual listed shares on the Professional Segment of NYSE Euronext Paris, with net proceeds of $71.7 million -- Closed on a three year, $25 million term loan with Hercules Growth Technology Capital.
“Our Sarnia plant continues to be the main focus of our business and we
are pleased with our progress, which remains on track,” said
Jean-Francois Huc, President and Chief Executive Officer of BioAmber.
“When completed, the Sarnia plant will be the world’s largest succinic
acid production facility, benefiting from competitive energy and sugar
prices and economies of scale.” Mr. Huc continued, “As a result of the
yield and cost benefits of our yeast technology, which we demonstrated
through large-scale operation in Pomacle, France, we decided to design
the Sarnia plant using the yeast. With the proceeds from the IPO and
other sources of funding we have secured, we believe we have sufficient
cash to build and start up the Sarnia plant.”
-- The Company has assembled an experienced project team based in Sarnia, is in the process of selecting and contracting a construction partner and has begun site preparation work -- The Company has frozen the yeast engineering design for the Sarnia plant and is negotiating with equipment vendors to procure long-lead time equipment -- The Company has partnered with Brenntag, the world's largest distributor of chemicals, for distribution of its bio-succinic acid and bio-based 1,4-butanediol in the Americas. -- IMCD Group, Europe's 4th largest distributor of chemicals and a market leader in resins and coatings, is distributing the Company's bio-succinic acid in Europe -- The Company has added nine new customers since the beginning of the year, with succinic acid sales developing in polyurethane, polyester, food and flavor, personal care and coatings markets -- The Company has exercised its option to extend its access to the large-scale demonstration facility in Pomacle, France through the middle of 2014, during which time it is only guaranteed 60% of the capacity of this facility.
The Company had cash and cash equivalents on hand of $103.0 million as
of June 30, 2013, including proceeds from the initial public offering
and a loan from Hercules Technology Growth Capital.
On May 9, 2013, the Company completed an IPO of 8,000,000 units, each
unit consisting of one share of common stock and one warrant to
purchase half of one share of common stock at a price of $10.00 per
unit. Each warrant is exercisable during the period commencing on
August 8, 2013 and ending on May 9, 2017 at an exercise price of $11.00
per whole share of common stock. The Company received approximately
$71.7 million in net proceeds from the IPO after estimated payment of
fees, expenses and underwriting discounts of approximately $8.3
On June 27, 2013, the Company entered into a three year $25 million term
Loan and Security Agreement with Hercules Technology Growth Capital.
Revenue increased to $1.0 million in the three months ended June 30,
2013 from $606,000 for the same period in 2012. The increase in revenue
resulted from an increase in volume of bio-succinic acid sold.
Gross profit decreased to a loss of $383,000 in the three months ended
June 30, 2013 from a gain of $868,000 in the same period in 2012. The
difference was due in part to a $744,000 inventory reversal recorded in
2012 that increased the gross profit from $124,000 to $868,000. The
difference was also due to lower average prices in 2013 than in 2012 as
a result of the Company’s decision to sell larger volumes at lower
prices as part of its market penetration strategy.
Research and development expense decreased to $4.2 million in the three
months ended June 30, 2013 from $5.2 million for the same period in
2012 primarily due to the completion of certain projects and a
reduction in outsourced research. The decrease was partially offset by
a $418,000 increase in yeast development and scale-up expenses.
Selling and marketing expense increased to $1.7 million in the three
months ended June 30, 2013 from $1.1 million for the same period in
2012, primarily due to increased salaries and benefits resulting from
increased market research, headcount and related stock option expense.
General and administrative expense decreased to $2.3 million in the
three months ended June 30, 2013 from $2.6 million for the same period
in 2012, primarily due to lower headcount.
Other Financial Items
The Company recorded a net loss of $6.1 million, or $0.39 per share for
the three months ended June 30, 2013, compared to $8.4 million, or
$0.81 per share, for the three months ended June 30, 2012.
Due to the advances in the performance of the Company’s yeast technology
compared to its E. coli technology, and to the successful scale-up of the yeast in the
large-scale demonstration facility in France, BioAmber decided to
solely use the yeast technology in its planned facility in Sarnia,
Ontario. As a result, the Company reported a non-cash charge of $8.6
million for asset impairments to its E. coli technology, of which $7.8 million was related to the E. coli in process research and development that is no longer applicable to the
Sarnia plant, and $834,000 was related to Sarnia construction in
progress concerning E. coli technology that will no longer be used.
In addition, during the three months ended June 30, 2013, the Company
incurred a $724,000 non-cash charge for the accelerated vesting of
certain employee stock options resulting from the IPO, as well as an
$11.7 million non-cash gain related to changes in the fair market value
of the warrants issued in the IPO. These warrants will be revalued in
each reporting period resulting in a non-cash amount being recorded in
the statement of operations while the warrants remain outstanding.
The Adjusted Net Loss Attributable to BioAmber Inc. Shareholders for the
three months ended June 30, 2013 was $8.6 million, or $0.57 per share,
compared to a Net Loss Attributable to BioAmber Inc. Shareholders of
$8.4 million, or $0.81 per share, for the three months ended June 30,
2012. Adjusted Net Loss Attributable to BioAmber Inc. Shareholders is
a non-GAAP financial metric that excludes the impact of the change in
fair value of the warrants issued in connection with the Company’s
initial public offering, certain stock option expenses and a charge
related to the impairment of in-process research and development.
Please refer to Annex A: “Non-GAAP Financial Information–Adjusted Net
Loss Attributable to BioAmber Inc. Shareholders” for more information
regarding this non-GAAP financial metric.
Webcast and Conference Call Information
BioAmber will discuss these results on a live audio webcast, which will
be available on the Internet to investors, members of the news media
and the general public at 4:30 p.m. EDT (1:30 p.m. PDT) on August 12,
2013. To access the webcast of the conference call, go to the company’s
website, www.bio-amber.com. Audio of the teleconference is also available by dialing:
North American callers: (888) 680-0865
International callers: +1 (617) 213-4853
Participant Passcode: 81960815
A replay of the webcast will be available approximately two hours after
the conclusion of the live webcast, and will remain available on
BioAmber’s website for 30 days.
BioAmber (NYSE and EURONEXT Paris: BIOA) is a sustainable chemicals
company. Its proprietary technology platform combines industrial
biotechnology and chemical catalysis to convert renewable feedstock
into chemicals for use in a wide variety of everyday products including
plastics, resins, food additives and personal care products. For more
information visit www.bio-amber.com
This press release contains forward-looking statements, including
statements related to the timing of the completion of our initial
facility, the use of yeast technology at our initial facility and the
use of IPO and loan proceeds. All statements other than statements of
historical fact contained in this press release are forward-looking
statements. These statements often include words such as “believe,”
“expect,” “anticipate,” “intend,” “plan,” “estimate,” “seek,” “will,”
“may” or similar expressions. Forward-looking statements are subject to
a number of risks and uncertainties, many of which involve factors or
circumstances that are beyond BioAmber’s control. BioAmber’s actual
results could differ materially from those stated or implied in
forward-looking statements due to a number of factors, including but
not limited to, risks detailed in BioAmber’s most recent registration
statement on Form S-1 filed with the Securities and Exchange
Commission, as well as other documents that may be filed by the company
from time to time with the Securities and Exchange Commission. In
particular, the following factors, among others, could cause results to
differ materially from those expressed or implied by such
forward-looking statements: the Company’s limited operating history,
the inability of the Company to execute on its manufacturing expansion
strategy, including the construction of our planned facility in Sarnia,
Ontario, the inability of the Company to comply with milestone
covenants contained in certain of its agreements, the Company’s limited
sales of bio-succinic acid to date, the Company’s inability to obtain
additional financing, the Company’s inability to leverage its
bio-succinic acid technology to develop and commercialize derivatives
of bio-succinic acid and other bio-based building block chemicals, and
a decrease in demand for bio-succinic acid, bio-based 1,4 BDO and other
bio-succinic acid derivatives. Although we believe that the
expectations reflected in the forward-looking statements are
reasonable, we cannot guarantee that the events and circumstances
reflected in the forward-looking statements will be achieved or occur
and the timing of events and circumstances and actual results could
differ materially from those projected in the forward- looking
statements. Accordingly, you should not place undue reliance on these
forward-looking statements. All such statements speak only as of the
date made, and we undertake no obligation to update or revise publicly
any forward-looking statements, whether as a result of new information,
future events or otherwise.
BioAmber Inc. Consolidated Statements of Operations (unaudited, in thousands of USD) Three Months Ended June 30, 2013 2012 Product Revenues 1,028 606 Cost of Goods sold 1,411 (262) Gross Profit /(Loss) (383) 868 Operating Expenses Research and Development 4,221 5,196 Sales and Marketing 1,652 1,064 General and administrative 2,292 2,559 Depreciation and amortization 539 535 Impairment Loss 8,619 Foreign exchange Gain (28) (183) Operating Expenses 17,295 9,171 Operating Loss (17,678) (8,303) Amortization of Deferred financing costs 117 Financial Charges (Income) (11,748) 10 Income taxes 46 Losses from Equity Method Investment 0 96 Net Loss (6,093) (8,409) Net Loss attributable to: BioAmber Inc. shareholders (5,925) (8,386) Non-controlling interest (168) (23) (6,093) (8,409) Net Loss per share attributable to BioAmber Inc. common shareholder - basic (0.39) (0.81) Weighted Average common shares outstanding - basic 15,035.0 10,332.3
BioAmber Inc. Non-GAAP Financial Information (unaudited, in thousands) Three Months Ended June 30, 2013 2012 Net Loss attributable to BioAmber Inc. common shareholder (5,925) (8,386) Deduct: Intangible impairment 7,785 - Long lived impairment 584 - Accelerated Vested options from IPO 724 - Warrant Revaluation (11,748) - Adjusted Net Loss attributable to (8,580) (8,386) BioAmber Inc. Shareholders Adjusted Net Loss per share attributable to BioAmber Inc. common shareholder - basic (0.57) (0.81) Weighted Average common shares outstanding- basic 15,035.0 10,332.3
BioAmber Inc. Consolidated Balance Sheet Information (unaudited, in thousands) As of June As of Dec 30, 2013 31, 2012 Assets Current Assets: Cash and cash equivalents 102,981 25,072 Accounts receivable 627 596 Inventories 2,312 1,894 Prepaid Expenses and other current assets 8,556 4,352 Total current assets 114,476 31,914 Property and equipment 4,147 3,651 Investment in equity method investment 710 725 Intangible assets including goodwill 4,813 13,713 Total assets 124,146 50,003 Liabilities Current Liabilities: Accounts payable and accrued liabilities 5,820 4,875 Income taxes payable 1,019 983 deferred grants 3,511 3,711 short-term portion of long term debt 183 Total current liabilities 10,350 9,752 Long-term debt 27,946 2,417 Warrants financial liability 4,400 Other long term liabilities 60 37 Total liabilities 42,756 12,206 Shareholders' Equity 81,390 37,797 Total Liabilities and Shareholders' Equity 124,146 50,003
BioAmber Inc. Consolidated Statements of Cash Flows (unaudited, in thousands) Three Months Ended June 30, Operating Activities 2013 2012 Net Loss (6,093) (8,409) Adjustments to reconcile net loss to cash: Stock Based Compensation 2,059 1,935 Depreciation and amortization 539 535 Impairment loss and write-off of 8,619 property and equipment Warrant revaluation (11,748) 10 Change in working capital 4,329 1,220 Other 126 96 Net cash used in operating activities (2,169) (4,613)) Investing Activities Acquisition of property and equipment (2,074) (2,878) Net cash used in investing activity (2,074) (2,878) Financing Activities Issuance of long-term debt 24,962 Net proceeds from IPO 71,733 Deferred financing costs (625) (648) Net cash provided by Financing 96,070 (648) activities Foreign exchange impact on cash (377) (50) Increase/(decrease) in cash 91,450 (8,189) Cash, beginning of period 11,531 43,811 Cash, end of period 102,981 35,622
ANNEX A: Non-GAAP Financial Information
Adjusted Net Loss Attributable to BioAmber Inc. Shareholders
Adjusted Net Loss Attributable to BioAmber Inc. Shareholders is a
non-GAAP measure that represents net loss attributable to BioAmber Inc.
shareholders adjusted to exclude the following items: (i) costs
associated with BioAmber’s transition from an E. coli organism as its
core technology to a Cargill yeast for the construction of its initial
planned manufacturing facility in Sarnia, Ontario, including impairment
of in-process research and development and impairment of a long-lived
asset (ii) the accelerated vesting of certain employee stock options
upon the IPO and (iii) non-operational income derived from the change
in the fair value of the warrants issued in connection with BioAmber’s
initial public offering. BioAmber presents Adjusted Net Loss
Attributable to BioAmber Inc. Shareholders as a supplemental measure of
BioAmber’s performance. The above items are excluded from BioAmber’s
Adjusted Net Loss Attributable to BioAmber Inc. Shareholders because
these items are non-cash in nature, or because the amount and timing of
these items are either unpredictable or not driven by core operating
results and renders comparisons with prior periods and competitors less
meaningful. BioAmber believes Adjusted Net Loss Attributable to
BioAmber Inc. Shareholders is a useful measure for analysts and
investors to evaluate BioAmber’s future ongoing performance as this
measure allows for a more meaningful comparison of BioAmber’s projected
cash earnings and performance with its historical results from prior
periods and to the results of its competitors. Adjusted Net Loss
Attributable to BioAmber Inc. Shareholders corresponds more closely to
the cash operating income generated from BioAmber’s business and allows
investors to gain an understanding of the factors and trends affecting
the ongoing cash earnings capabilities of BioAmber’s business.
Adjusted Net Loss Attributable to BioAmber Inc. Shareholders has certain
limitations in that it does not take into account the impact of certain
expenses to BioAmber’s consolidated statements of operations. In
evaluating Adjusted Net Loss Attributable to BioAmber Inc.
Shareholders, you should be aware that in the future BioAmber may incur
expenses similar to the adjustments in this presentation. BioAmber’s
presentation of Adjusted Net Loss Attributable to BioAmber Inc.
Shareholders should not be construed as an inference that BioAmber’s
future results will be unaffected by unusual or non-recurring items.
Adjusted Net Loss Attributable to BioAmber Inc. Shareholders is not a
measurement of BioAmber’s financial performance under GAAP and should
not be considered as an alternative to net income, operating income or
any other performance measures derived in accordance with GAAP.
The following is a reconciliation of Adjusted Net Loss Attributable to
BioAmber Inc. Shareholders to GAAP Net Loss Attributable to BioAmber
Inc. Shareholders (amounts in thousands):
Three months Three months ended June ended June 30, 2013 30, 2012 Net Loss Attributable to BioAmber Inc. (5,926) (8,386) Shareholders (GAAP) Deduct: Intangible impairment 7,785 - Long lived impairment 584 - Accelerated Vested options from IPO 724 - Warrant Revaluation (11,748) - Adjusted Net Loss Attributable to (8,581) (8,386) BioAmber Inc. Shareholders (non-GAAP) Weighted Average common shares 15,035.0 10,332.3 outstanding- basic Adjusted Net Loss Attributable to BioAmber Inc. Shareholders (non-GAAP) per share basic (0.57) (0.81)
SOURCE BioAmber Inc.