AMRS
$2.64
Amyris
$.11
4.35%
Earnings Details
2nd Quarter June 2020
Thursday, August 6, 2020 8:30:00 AM
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Summary

Amyris (AMRS) Recent Earnings

Amyris (AMRS) reported a 2nd Quarter June 2020 loss of $0.56 per share on revenue of $30.0 million. The consensus estimate was a loss of $0.19 per share on revenue of $45.6 million. Revenue fell 52.1% compared to the same quarter a year ago.

Amyris Inc is a renewable products company engaged in providing sustainable alternatives to petroleum-sourced products. It developed microbial engineering and screening technologies that modify the way microorganisms process sugars.

Results
Reported Earnings
($0.56)
Earnings Whisper
-
Consensus Estimate
($0.19)
Reported Revenue
$30.0 Mil
Revenue Estimate
$45.6 Mil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Amyris, Inc. Reports Second Quarter 2020 Results

EMERYVILLE, Calif., Aug. 6, 2020 /PRNewswire/ -- Amyris, Inc. (Nasdaq: AMRS), a leading synthetic biotechnology company in Clean Health and Beauty markets through its consumer brands and a top supplier of sustainable and natural ingredients, today announced financial results for its second quarter ended June 30, 2020.

Highlights

  • Completed $200 million private placement during Q2; largest raise in the history of the company
  • Reduced debt by $121 million or 40% since start of 2020. Improves H2 2020 debt servicing cash costs by $30 million
  • Q2 Recurring Revenue for Consumer & Ingredients of $26 million more than doubled YOY. Record quarter for Consumer brands with revenue tripling YOY from strong online sales
  • Cash Operating Expenses of $43 million were the lowest in the five sequential quarters and down 6% versus prior year. Lower G&A and R&D expense was partly reinvested in consumer brands
  • Signed commercial partnership for Purecane™ in commercial baking applications with AB Mauri
  • Signed term sheet for a scientific partnership with Infectious Disease Research Institute (IDRI) to create RNA vaccine platform

Management Comments
"Our business and our people have shown strong resilience during these unprecedented times. Keeping everyone safe has been our number one priority while continuing to grow revenue and improve operations. COVID has certainly had an impact in how we operate the business. For example, COVID has impacted progress with third party manufacturing," said John Melo, President and Chief Executive Officer. "Lower consumer revenue from store closures was mitigated by consumers transitioning online. Our consumer brands saw record revenue in the quarter and, for the first time, was equal in size to our ingredients portfolio. We expect second half consumer revenue to more than double that of the first half of this year. This shift in our portfolio will continue with significantly larger sustainable and predictable product revenue relative to collaboration programs."

Continued Melo, "We have executed on commercial and scientific strategic partnerships such as Purecane in commercial baking applications with AB Mauri and to create an RNA vaccine platform with IDRI. Our focus on improvement of operational economics as it relates to scale-up of both new ingredients and our young brands continues, and we made significant progress on improving our capital structure. During Q2, we raised $200 million from a private placement with high-quality investors of which 70% were new and 90% with a health care, biotechnology and/or long orientation."

Strategic Priorities
The strategic priorities we set out at the start of 2020 support our goals for growth, sustained cash generation, and profitability.


Strategic Priorities

Q2 Progress

1

High growth consumer brands

· Record quarter for Consumer brands with revenue tripling YOY from strong online sales

· Pipette brand grew 10X versus Q1 2020

2

Scientific and commercial collaboration

· Commercial partnership with AB Mauri for Purecane in commercial baking applications

· Scientific partnership with IDRI for rights to their RNA vaccine platform

3

Supply chain optimization

· Continued production efficiencies with squalane for Clean Beauty and Personal Care

· 60% higher ingredients production output in H1 and improved unit costs

· Advanced squalene adjuvant to commercial scale-up

· Construction of our Brazil plant continues with full commissioning expected by Q4 of 2021

4

Improved balance sheet, earnings and cash flow

· Completed $200 million private placement

· Reduced debt by $121 million or 40% since start of 2020. Improves H2 2020 cash debt servicing by $30 million

 

Sequential Sales Revenue

Sequential Trend $m

Q1 2019

Q2 2019

Q3 2019

Q4 2019

Q1 2020

Q2 2020

Consumer & Ingredients

12

12

20

20

19

26

Collaboration & Grants

2

10

15

11

5

4

Recurring Revenue

15

22

35

32

24

30

One-off

--

41

--

9

5

--

Reported Revenue

15

63

35

41

29

30

 

  • Q2 Recurring Revenue of $30 million showed continued growth year-over-year (+36%) and was +23% versus the prior quarter
  • Q2 was a record quarter for Consumer & Ingredients with Revenue more than doubling to $26 million year-over year. Revenue of Consumer brands tripled year-over-year from strong online sales. Ingredients Revenue grew in excess of 50% year-over-year
  • Collaboration Revenue of $4 million was below the prior-year quarter and continues to be choppy as expected

Q2 2020 Results
Variance $ and Variance % in the following tables and comments may not foot due to rounding
$ Million except EPS

As Reported

2020

2019

Variance $

Variance %

Sales Revenue

30

63

(33)

(52%)

Gross Margin

36%

84%

-4800bps

--

Net Income

(104)

(71)

(33)

(47%)

Adj. Net Income

(58)

(14)

(44)

(306%)

EBITDA

(86)

(22)

(64)

(291%)

Adj. EBITDA

(36)

2

(38)

(2,170%)

Diluted EPS

(0.56)

(0.76)

0.20

26%

Adj. Diluted EPS

(0.32)

(0.15)

(0.16)

(104%)

  • GAAP Net Income of -$104 million, including $49 million of non-cash adjustments, was down $33 million due to non-cash adjustments related to fair value changes of derivatives and debt, extinguishment of debt and higher interest expense. 2019 included $41 million income from one-off Vitamin E royalty
  • Diluted EPS of -$0.56 compared with -$0.76 for Q2 2019

Excluding One-off*

2020

2019

Variance $

Variance %

Recurring Revenue

30

22

8

36%

Gross Margin

36%

54%

-1800bps

--

Adj. EBITDA

(36)

(39)

3

8%

*Q2 2019 included $41 million one-off Vitamin E royalty income, which impacts YOY comparisons

  • Recurring Sales Revenue of $30 million up 36% versus the prior-year quarter with strong growth seen in Consumer & Ingredients product sales, partly offset by lower Collaboration & Grants Revenue
  • Gross Margin of 36% compared to 54% in Q2 2019, and was down due to lower Collaboration Revenue (100% accretive to earnings), and a larger proportion of Revenue from scale-up products with immature margin economics
  • Adjusted EBITDA of -$36 million compared to -$39 million for the same quarter last year due to improvements in cash operating expenses

Year-to-Date (YTD) Results
Variance $ and Variance % in the following tables and comments may not foot due to rounding 
$ Million except EPS

As Reported

2020

2019

Variance $

Variance %

Sales Revenue

59

77

(18)

-23%

Gross Margin

50%

62%

-1200bps

--

Net Income

(191)

(135)

(56)

-42%

Adj. Net Income

(102)

(73)

(29)

-40%

EBITDA

(157)

(75)

(82)

-110%

Adj. EBITDA

(62)

(43)

(19)

-44%

Diluted EPS

(1.12)

(1.59)

0.47

29%

Adj. Diluted EPS

(0.60)

(0.91)

0.31

35%

  • GAAP Net Income of -$191 million was down $56 million due to non-cash adjustments related to fair changes of derivatives and debt, extinguishment of debt and higher interest expense
  • Diluted EPS of -$1.12 compared with -$1.59 for YTD 2019

Excluding One-off*

2020

2019

Variance $

Variance %

Sales Revenue

54

37

18

48%

Gross Margin

45%

20%

+2500bps

--

Adj. EBITDA

(67)

(84)

17

20%

*YTD 2019 included $40 million one-offs and YTD 2020 included $5 million one-off for a net $35 million YOY

  • Recurring Sales Revenue of $54 million up $18 million or 48% versus H1 2019 with 83% growth in Consumer & Ingredients product sales, partly offset by lower Collaboration & Grants Revenue
  • Gross Margin of 45% compared to 20% in Q2 2019, and delivered a $17 million improvement driven by a combination of higher margin consumer brands and lower units cost in Ingredients
  • Adjusted EBITDA of -$67 million compared to -$84 million for H1 last year due to increased Consumer Revenue and improvements in margin contribution

Full Year 2020 Outlook
Based on current estimates, the full year Sales Revenue target indicates approximately 44% growth versus 2019 GAAP sales revenue of $153 million, and approximately 80% versus 2019 recurring sales of $104 million. Based on expected sales mix, Gross Margin is expected to be between 55-60% of revenue. Adjusted EBITDA is expected to turn positive during Q4 of this year.

COVID continues to present significant uncertainties to which we do not have full visibility.

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' 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) is calculated as GAAP net income/loss excluding stock-based compensation expense, gains or losses from change in fair value of debt, gains and losses from changes in the fair value of derivatives, losses on debt extinguishment, income attributable to noncontrolling interest, deemed dividends, other (income) expense, net, loss from investment in affiliate and losses allocated to participating securities.

Adjusted diluted EPS is calculated by dividing Non-GAAP net income (loss) by the weighted average shares, basic and diluted outstanding for the period.

Non-GAAP Gross Margin (Gross Margin) is calculated as GAAP revenues divided by GAAP cost of products sold excluding excess capacity, depreciation and amortization and other costs/provisions.

EBITDA is calculated as GAAP net loss less losses allocated to participating securities, interest, tax provision, depreciation and amortization.

Adjusted EBITDA is calculated as EBITDA less stock-based compensation expense, gains or losses from change in fair value of debt, gains and losses from changes in the fair value of derivatives, losses on debt extinguishment, income attributable to noncontrolling interest, deemed dividends, other (income) expense, net, and loss from investment in affiliate.  

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' operating performance. A reconciliation of the non-GAAP financial measures presented in this release to the most directly comparable GAAP financial measure, is provided in the tables attached to this press release.

Conference Call
Amyris will host its second quarter 2020 conference call today August 6, 2020 at 9:00 am ET (6:00 am PT) to discuss its financial results. Those who wish to listen to the conference call should dial into (888) 567-1603 (U.S. and International) and ask to be joined to the Amyris, Inc. call. A live webcast of the call will be available online on the Amyris website. To listen via live webcast, please visit: http://investors.amyris.com.

If you are unable to listen to the live call, the webcast will be archived on the Company's website. A replay of the webcast will be available on the Investor Relations section of the company's website approximately two hours after the conclusion of the call. Additional information on Amyris' second quarter 2020 results can also be found on the Company's website.

About Amyris
Amyris (Nasdaq: AMRS) is a science and technology leader in the research, development and production of sustainable ingredients for the Clean Health & Beauty and Flavors & Fragrances markets. Amyris uses an impressive array of exclusive technologies, including state-of-the-art machine learning, robotics and artificial intelligence. Our ingredients are included in over 3,000 products from the world's top brands, reaching more than 200 million consumers. Amyris is proud to own three consumer brands - all built around its No Compromise® promise of clean ingredients: Biossance™ clean beauty skincare, Pipette™ clean baby skincare and Purecane™, a zero-calorie sweetener naturally derived from sugarcane. For more information, please visit 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 expected revenue, including potential impacts of COVID-19, product and collaboration revenues, recurring revenue, adjusted EBITDA, gross margin and operating expenses through 2020, including anticipated growth for Amyris's consumer brands, sustained cash generation and profitability, expected creation of RNA vaccine platform, expected operational optimization, production volume, delivery and cost reduction in 2020, including the construction of a new plant in Brazil, and expectations regarding Amyris's financial and operational results and ability to achieve its business plan in 2020 and beyond. 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, risks related to its financing activities, risks related to 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, Biossance, Pipette, and Purecane are trademarks or registered trademarks of Amyris, Inc. in the U.S. and/or other countries.

For further information: Peter DeNardo, Senior Director, Investor Relations and Corporate Communications, Amyris, Inc., 510-740-7481, investor@amyris.com

 

Financial Tables Follow

 

Amyris, Inc. 



CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)



(In thousands, except shares and per share amounts)

June 30,
2020

December 31,
2019

Assets



Current assets:



Cash and cash equivalents

$     99,998

$          270

Restricted cash

362

469

Accounts receivable, net

22,029

16,322

Accounts receivable - related party, net

94

3,868

Contract assets

11,724

8,485

Contract assets - related party

1,203

-

Inventories

33,059

27,770

Deferred cost of products sold - related party

7,709

3,677

Prepaid expenses and other current assets

14,531

12,750

Total current assets

190,709

73,611

Property, plant and equipment, net

27,394

28,930

Contract assets, noncurrent - related party

-

1,203

Deferred cost of products sold, noncurrent - related party

14,260

12,815

Restricted cash, noncurrent

960

960

Recoverable taxes from Brazilian government entities

5,725

7,676

Right-of-use assets under financing leases, net

11,422

12,863

Right-of-use assets under operating leases, net

11,662

13,203

Other assets

5,557

9,705

Total assets

$   267,689

$   160,966

Liabilities, Mezzanine Equity and Stockholders' Deficit



Current liabilities:



Accounts payable

$     22,779

$     51,234

Accrued and other current liabilities

49,110

36,655

Financing lease liabilities

3,605

3,465

Operating lease liabilities

4,893

4,625

Contract liabilities

5,180

1,353

Debt, current portion

43,482

45,313

Related party debt, current portion

-

18,492

Total current liabilities

129,049

161,137

Long-term debt, net of current portion

23,532

48,452

Related party debt, net of current portion

138,898

149,515

Financing lease liabilities, net of current portion

2,305

4,166

Operating lease liabilities, net of current portion

12,457

15,037

Derivative liabilities

5,833

9,803

Other noncurrent liabilities

15,254

23,024

Total liabilities

327,328

411,134

Commitments and contingencies



Mezzanine equity:



Contingently redeemable common stock

5,000

5,000

Stockholders' deficit:



Preferred stock

-

-

Common stock

20

12

Additional paid-in capital

1,935,252

1,543,668

Accumulated other comprehensive loss

(48,708)

(43,804)

Accumulated deficit

(1,953,919)

(1,755,653)

Total Amyris, Inc. stockholders' deficit

(67,355)

(255,777)

Noncontrolling interest

2,716

609

Total stockholders' deficit

(64,639)

(255,168)

Total liabilities, mezzanine equity and stockholders' deficit

$   267,689

$   160,966

 

 

Amyris, Inc. 






CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)







Three Months Ended June 30,


Six Months Ended June 30,

(In thousands, except shares and per share amounts)

2020

2019


2020

2019

Revenue:






Renewable products (includes related party revenue of $56, $0, $105 and $2, respectively)

$          25,188

$          12,120


$          43,042

$          24,004

Licenses and royalties (includes related party revenue of $0, $40,682, $3,750 and $40,302, respectively)

990

40,964


6,151

41,082

Grants and collaborations (includes related party revenue of $1,251, $2,646, $4,269 and $3,042, respectively)

3,827

9,610


9,942

11,982

Total revenue (includes related party revenue of $1,307, $43,328, $8,124 and $43,346, respectively)

30,005

62,694


59,135

77,068

Cost and operating expenses:






Cost of products sold

23,098

15,121


34,888

32,828

Research and development(1)

16,965

19,222


34,091

37,061

Sales, general and administrative(1)

30,503

30,862


62,517

59,115

Total cost and operating expenses

70,566

65,205


131,496

129,004

Loss from operations

(40,561)

(2,511)


(72,361)

(51,936)

Other income (expense):






Interest expense

(20,118)

(15,217)


(35,120)

(27,751)

Loss from change in fair value of derivative instruments

(11,779)

-


(8,497)

(2,039)

Loss from change in fair value of debt

(14,949)

(14,444)


(31,452)

(16,574)

Loss upon extinguishment of debt

(22,029)

(5,875)


(49,348)

(5,875)

Other income (expense), net

1,945

(41)


1,949

(156)

Total other expense, net

(66,930)

(35,577)


(122,468)

(52,395)

Loss before income taxes and loss from investment in affiliate

(107,491)

(38,088)


(194,829)

(104,331)

Provision for income taxes

(547)

-


(638)

-

Loss from investment in affiliate

(277)

-


(692)

-

Net loss

(108,315)

(38,088)


(196,159)

(104,331)

Less: income attributable to noncontrolling interest in Aprinnova

(2,107)

-


(2,107)

-

Net loss attributable to Amyris, Inc.

(110,422)

(38,088)


(198,266)

(104,331)

Less: deemed dividend to preferred stockholder on issuance and modification of common stock warrants

-

(34,964)


-

(34,964)

Less: loss allocated to participating securities

6,361

2,255


7,435

4,690

Net loss attributable to Amyris, Inc. common stockholders

$       (104,061)

$         (70,797)


$       (190,831)

$       (134,605)







Loss per share attributable to common stockholders, basic and diluted

$             (0.56)

$             (0.76)


$             (1.12)

$             (1.59)







Weighted-average shares of common stock outstanding used in computing loss per share of common stock, basic and diluted

184,827,330

92,785,752


169,946,482

84,831,269







(1)Includes stock-based compensation expense as follows:






Research and development 

$               781

$               676


$            1,846

$            1,339

Sales, general and administrative

2,150

2,699


4,589

5,488


$            2,931

$            3,375


$            6,435

$            6,827







Amyris, Inc. 






RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION
(Unaudited)







Three Months Ended June 30,


Six Months Ended June 30,

(In thousands, except per share data)

2020

2019


2020

2019

Net loss attributable to Amyris, Inc. common stockholders (GAAP)

$       (104,061)

$         (70,797)


$       (190,831)

$       (134,605)

Non-GAAP adjustments:






Stock-based compensation expense

2,931

3,375


6,435

6,827

Loss from change in fair value of derivative instruments

11,779

-


8,497

2,039

Loss from change in fair value of debt

14,949

14,444


31,452

16,574

Loss upon extinguishment of debt

22,029

5,875


49,348

5,875

Income attributable to noncontrolling interest in Aprinnova

2,107

-


2,107

-

Deemed dividend to preferred stockholder on issuance and modification of common stock warrants

-

34,964


-

34,964

Loss allocated to participating securities

(6,361)

(2,255)


(7,435)

(4,690)

Other (income) expense, net, and loss from investment in affiliate

(1,668)

41


(1,257)

156

Net loss attributable to Amyris, Inc. common stockholders (non-GAAP)

$         (58,295)

$         (14,353)


$       (101,684)

$         (72,860)







Weighted-average shares outstanding






Weighted-average shares of common stock outstanding used in computing loss per share of common stock, basic and diluted

184,827,330

92,785,752


169,946,482

84,831,269







Loss per share attributable to Amyris, Inc. common stockholders - Basic (GAAP)

$             (0.56)

$             (0.76)


$             (1.12)

$             (1.59)

Non-GAAP adjustments:






Stock-based compensation expense

0.02

0.04


0.04

0.08

Loss from change in fair value of derivative instruments

0.06

-


0.05

0.02

Loss from change in fair value of debt

0.08

0.16


0.19

0.20

Loss upon extinguishment of debt

0.12

0.06


0.29

0.07

Income attributable to noncontrolling interest in Aprinnova

0.01

-


0.01

-

Deemed dividend to preferred stockholder on issuance and modification of common stock warrants

-

0.38


-

0.41

Loss allocated to participating securities

(0.03)

(0.02)


(0.04)

(0.06)

Other (income) expense, net, and loss from investment in affiliate

(0.01)

0.00


(0.01)

0.00

Net loss per share attributable to Amyris, Inc. common stockholders - Basic (non-GAAP)(1)

$             (0.32)

$             (0.15)


$             (0.60)

$             (0.86)

(1)Amounts may not sum due to rounding.

-

-


-

-








Three Months Ended June 30,


Six Months Ended June 30,

Adjusted EBITDA

2020

2019


2020

2019

GAAP net loss attributable to Amyris, Inc. common stockholders

$       (104,061)

$         (70,797)


$       (190,831)

$       (134,605)

Interest expense

20,118

15,217


35,120

27,751

Income taxes

547

-


638

-

Depreciation and amortization

1,675

873


3,395

1,722

Income attributable to noncontrolling interest in Aprinnova

2,107

-


2,107

-

Deemed dividend to preferred stockholder on issuance and modification of common stock warrants

-

34,964


-

34,964

Loss allocated to participating securities

(6,361)

(2,255)


(7,435)

(4,690)

EBITDA

(85,975)

(21,998)


(157,006)

(74,858)

Loss from change in fair value of derivative instruments and debt, loss upon extinguishment of debt, other (income) expense, and loss from investment in affiliate

47,089

20,360


88,040

24,644

Stock-based compensation

2,931

3,375


6,435

6,827

Adjusted EBITDA

$         (35,955)

$            1,737


$         (62,531)

$         (43,387)

 

 

Amyris, Inc. 






RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION
(Unaudited)







Three Months Ended June 30,


Six Months Ended June 30,

(In thousands)

2020

2019


2020

2019

Revenue (GAAP and non-GAAP)






Renewable products

$        25,188

$        12,120


$        43,042

$        24,004

Licenses and royalties

990

40,964


6,151

41,082

Grants and collaborations

3,827

9,610


9,942

11,982

Total revenue (GAAP and non-GAAP)

$        30,005

$        62,694


$        59,135

$        77,068







Cost of products sold (GAAP)

$        23,098

$        15,121


$        34,888

$        32,828

Other costs/provisions

(3,312)

(4,512)


(4,127)

(2,504)

Excess capacity

(415)

(233)


(481)

(673)

Depreciation and amortization

(206)

(141)


(440)

(278)

Cost of products sold (non-GAAP)

$        19,165

$        10,235


$        29,840

$        29,373







Adjusted gross profit (non-GAAP)

$        10,840

$        52,459


$        29,295

$        47,695

Gross margin %

36%

84%


50%

62%







Research and development expense (GAAP)

$        16,965

$        19,222


$        34,091

$        37,061

Stock-based compensation expense

(781)

(676)


(1,846)

(1,339)

Depreciation and amortization

(1,267)

(435)


(2,491)

(870)

Research and development expense (non-GAAP)

$        14,917

$        18,111


$        29,754

$        34,852







Sales, general and administrative expense (GAAP)

$        30,503

$        30,862


$        62,517

$        59,115

Stock-based compensation expense

(2,150)

(2,699)


(4,589)

(5,488)

Depreciation and amortization

(202)

(297)


(464)

(575)

Sales, general and administrative expense (non-GAAP)

$        28,151

$        27,866


$        57,464

$        53,052

 

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SOURCE Amyris, Inc.