Expands Arrangement with Tianjin GreenBio Materials to Sell Metabolix
Biopolymer Products
Increasing Visibility on Long-term Contracts, Closes First Mvera™
B5008 Annual Contract
CAMBRIDGE, Mass.--(BUSINESS WIRE)--
Metabolix, Inc. (NASDAQ: MBLX), an innovation-driven bioscience company
delivering sustainable solutions to the plastics, chemicals and energy
industries, today reported financial results for the three months ended
March 31, 2013.
"We made significant progress in each of our businesses during the first
quarter," said Richard P. Eno, President and Chief Executive Officer.
"In biopolymers, we continued to expand our customer base, demonstrating
the commercial appeal of our products. We are seeing increased interest
in long-term customer agreements. In April, we secured our first annual
contract for sales of MveraTM B5008, the next-generation
certified compostable film grade product we launched in the fourth
quarter of 2012. This contract is another sign that the launch is on
track, as we build our biopolymer markets ahead of manufacturing
capacity.
"We strengthened our previous relationship with Tianjin GreenBio
Materials ("TGBM"), a leading PHA supplier located in China, by entering
into an additional arrangement enabling TGBM to purchase and use our PHA
biopolymer resins," Mr. Eno added. "As we work to build commercial-scale
supply sources for our PHA products, we continue to monitor the
situation at Antibióticos in Spain. The current Antibióticos ownership
has not delivered upon our demonstration project, or on the necessary
financial restructuring, that would allow the site and its talented
staff to perform at its full potential. We believe the site is appealing
to numerous other parties and hope clarity of the path forward can be
realized quickly.
"Metabolix also continues to drive innovation in the biopolymer market,"
said Mr. Eno. "Last month, we presented new data further validating the
benefits our biobased polymeric modifiers bring by improving the
mechanical, performance and environmental characteristics of the
commercially significant polymers polylactic acid (PLA) and polyvinyl
chloride (PVC). We believe these results showcase the broad commercial
applicability of our technology platform.
"In our biobased chemicals and crop platforms, we continue to achieve
our internal technical milestones and have partnership discussions
ongoing," said Mr. Eno.
FIRST QUARTER 2013 FINANCIAL OVERVIEW
Metabolix manages its finances with an emphasis on cash flow. The
Company has maintained this focus and ended the first quarter with $37.7
million in unrestricted cash and investments. The Company's net cash
used in operating activities during the first quarter of 2013 was $8.5
million, which represents a $3.8 million decrease in cash usage from
$12.3 million for the comparable quarter in 2012. The higher net cash
usage during the first quarter of 2012 was primarily the result of the
Company's purchase of PHA biopolymer and raw materials inventory from
Telles during that quarter. The Company currently expects that its cash
and investments, together with funds expected to be received from
existing government research grants and expected product sales, will be
sufficient to meet anticipated cash requirements for the next twelve
months. Metabolix continues to have no debt.
Total revenue in the first quarter of 2013 was $1.9 million, compared to
$39.3 million for the comparable quarter in 2012. Included in the 2012
revenue was $38.9 million of previously deferred revenue related to the
joint venture with ADM that terminated during that quarter. First
quarter revenue in 2013 consisted primarily of revenue from government
research grants and product sales. Grant revenue of $0.7 million
increased by $0.3 million over the same quarter of 2012, primarily due
to the expanded number of awarded U.S. and Canadian government grants
and revenue earned from the Company's $6.0 millionU.S. Department of
Energy grant. Biopolymer product orders and excess raw material sales of
$0.7 million were shipped and billed during the Company's first quarter
of 2013. Revenue recognition was deferred for the majority of these
shipments in accordance with the Company's policy to defer product
revenue for the greater of 60 days or customer payment. During the first
quarter, however, $0.8 million in product revenue was recognized,
primarily from shipments to customers completed during the last quarter
of 2012. The Company also had $0.4 million of research and development
revenue during the first quarter of 2013, which was earned under a
development arrangement with a third party.
Cost of product revenue was $0.6 million during the quarter ended March
31, 2013 compared to $0.1 million for the comparable period in 2012. The
increase of $0.5 million was primarily attributable to greater sales in
the first quarter of 2013, as compared to the first quarter of 2012,
when Metabolix had operating control of the biopolymer business for only
a few weeks, and primarily includes product inventory costs, freight and
warehousing costs.
Research and development expenses were $4.9 million for the first
quarter of 2013 compared to $6.0 million for the same period in 2012.
The decrease of $1.1 million was primarily the result of the Company's
efforts to reduce operating costs after the termination of the ADM joint
venture in early 2012 accomplished primarily through reductions in
employee compensation and related benefit expenses, consulting and
various other expenses.
Selling, general and administrative expenses were $3.3 million and $4.4
million for the first quarters of 2013 and 2012, respectively. The
decrease of $1.1 million was primarily attributable to the Company's
efforts to reduce operating costs through employee headcount reductions
and a decrease in legal fees from those incurred during the prior year
as a result of the termination of the joint venture with ADM.
The Company reported a net loss of $6.8 million or $0.20 per share for
the first quarter of 2013 compared to net income of $28.8 million or
$0.84 per share for the first quarter of 2012.
Conference Call Information
Richard Eno, the Company's President and CEO, Joseph Hill, CFO, and
Oliver Peoples, co-founder and CSO, will host a conference call today at
4:30 p.m. (ET) to discuss the results of the first quarter. The Company
also will provide an update on the business and answer questions from
the investment community. A live webcast of the call with slides can be
accessed through the Company's website at http://www.metabolix.com
in the investor relations section. To participate in the call, dial
toll-free 877-709-8155 or 201-689-8881 (international).
To listen to a telephonic replay of the conference call, dial toll-free
877-660-6853 or 201-612-7415 (international) and enter pass code 412243.
The replay will be available beginning at 7:30 p.m. (ET) on Wednesday,
May 8, 2013 and will last through 11:59 p.m. (ET) on Wednesday, May 22,
2013. In addition, the webcast will be archived on the Company's website
in the investor relations section.
About Metabolix
Metabolix, Inc. is an innovation-driven bioscience company delivering
sustainable solutions to the plastics, chemicals and energy industries.
Metabolix is developing and commercializing a family of high-performance
biopolymers targeted to the markets for film and bag applications,
performance additives and functional biodegradation. Metabolix's
bio-based chemicals platform utilizes its novel "FAST" recovery process
to enable the production of cost-effective replacements for
petroleum-based industrial chemicals. Metabolix is also developing a
platform for co-producing plastics, chemicals and energy from crops.
Metabolix has established an industry-leading intellectual property
portfolio that, together with its knowledge of advanced industrial
practice, provides a foundation for industry collaborations.
For more information, please visit www.metabolix.com.
(MBLX-E)
Safe Harbor for Forward-Looking Statements
This press release contains forward-looking statements which are made
pursuant to the safe harbor provisions of Section 27A of the Securities
Act of 1933, as amended, and Section 21E of the Securities Exchange Act
of 1934, as amended. The forward-looking statements in this release do
not constitute guarantees of future performance. Investors are cautioned
that statements in this press release which are not strictly historical
statements, including, without limitation, statements regarding expected
future financial results and cash usage; market expectations; projected
sales of Metabolix biopolymers; Metabolix's biopolymer production
strategy; expectations relating to Antibióticos and the supply for the
Company's PHA products; expectations for the commercialization of the
Company's industrial chemicals and crops program; and future research
and development, constitute forward-looking statements. Such
forward-looking statements are subject to a number of risks and
uncertainties that could cause actual results to differ materially from
those anticipated, including the risks and uncertainties detailed in
Metabolix's filings with the Securities and Exchange Commission,
including its 10-K for the year ended December 31, 2012 filed on March
28, 2013. Metabolix assumes no obligation to update any forward-looking
information contained in this press release or with respect to the
announcements described herein.
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METABOLIX, INC.
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CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
|
UNAUDITED
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(in thousands, except share and per share data)
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Three Months Ended
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March 31,
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|
2013
|
|
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|
2012
|
Revenue:
|
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|
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Revenue from termination of ADM collaboration
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$
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-
|
|
|
|
|
$
|
38,885
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Grant revenue
|
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|
|
|
724
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|
|
|
|
|
378
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Product revenue
|
|
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|
|
|
790
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|
14
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Research and development revenue
|
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|
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|
380
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|
-
|
License fee and royalty revenue
|
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49
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|
|
45
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Total revenue
|
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1,943
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39,322
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Costs and expenses:
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Cost of product revenue
|
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|
|
|
557
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|
|
|
|
|
55
|
Research and development
|
|
|
|
|
|
4,859
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|
|
|
|
|
6,045
|
Selling, general and administrative
|
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|
|
|
|
3,312
|
|
|
|
|
|
4,399
|
Total costs and expenses
|
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|
8,728
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|
|
|
|
|
10,499
|
Income (loss) from operations
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|
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|
|
|
(6,785
|
)
|
|
|
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|
28,823
|
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|
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Other income (expense):
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Interest income, net
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|
|
|
|
10
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|
|
|
|
|
17
|
Other income, net
|
|
|
|
|
|
12
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|
|
|
|
|
-
|
Net income (loss)
|
|
|
|
|
$
|
(6,763
|
)
|
|
|
|
$
|
28,840
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Net income (loss) per share:
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Basic
|
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$
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(0.20
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)
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|
$
|
0.84
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Diluted
|
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|
$
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(0.20
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)
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|
|
$
|
0.84
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|
|
|
|
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Number of shares used in per share calculations:
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Basic
|
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|
|
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34,353,277
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|
|
|
|
|
34,136,333
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Diluted
|
|
|
|
|
|
34,353,277
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|
|
|
|
|
34,265,638
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|
|
|
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METABOLIX, INC.
|
CONDENSED CONSOLIDATED BALANCE SHEET
|
UNAUDITED
|
(in thousands)
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|
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March 31,
|
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|
|
December 31,
|
|
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|
|
2013
|
|
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2012
|
Assets
|
|
|
|
|
|
|
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Cash, cash equivalents and short-term investments
|
|
|
|
|
$
|
37,709
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|
|
|
$
|
43,773
|
Inventory
|
|
|
|
|
|
3,624
|
|
|
|
|
3,204
|
Other current assets
|
|
|
|
|
|
2,420
|
|
|
|
|
1,978
|
Restricted cash
|
|
|
|
|
|
594
|
|
|
|
|
594
|
Property and equipment, net
|
|
|
|
|
|
1,120
|
|
|
|
|
1,358
|
Long-term investments
|
|
|
|
|
|
-
|
|
|
|
|
2,508
|
Other assets
|
|
|
|
|
|
95
|
|
|
|
|
95
|
Total assets
|
|
|
|
|
$
|
45,562
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|
|
|
$
|
53,510
|
|
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|
|
|
|
|
|
|
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|
|
Liabilities and Stockholders' Equity
|
|
|
|
|
|
|
|
|
|
|
|
Accounts payable and accrued liabilities
|
|
|
|
|
$
|
2,771
|
|
|
|
$
|
4,752
|
Short-term deferred revenue
|
|
|
|
|
|
972
|
|
|
|
|
1,067
|
Current portion of deferred rent
|
|
|
|
|
|
165
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|
|
|
|
165
|
Long-term deferred revenue
|
|
|
|
|
|
-
|
|
|
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|
-
|
Other long-term liabilities
|
|
|
|
|
|
148
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|
|
|
|
186
|
Total liabilities
|
|
|
|
|
|
4,056
|
|
|
|
|
6,170
|
Total stockholders' equity
|
|
|
|
|
|
41,506
|
|
|
|
|
47,340
|
Total liabilities and stockholders' equity
|
|
|
|
|
$
|
45,562
|
|
|
|
$
|
53,510
|
|
|
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METABOLIX, INC.
|
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
|
UNAUDITED
|
(in thousands)
|
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|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
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|
|
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|
2013
|
|
|
|
|
2012
|
Cash flows from operating activities
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
|
|
|
$
|
(6,763
|
)
|
|
|
|
$
|
28,840
|
|
Adjustments to reconcile net income (loss) to cash used in operating
activities:
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation
|
|
|
|
|
|
295
|
|
|
|
|
|
379
|
|
Charge for 401(k) company common stock match
|
|
|
|
|
|
180
|
|
|
|
|
|
162
|
|
Stock-based compensation
|
|
|
|
|
|
863
|
|
|
|
|
|
1,104
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
Inventory
|
|
|
|
|
|
(420
|
)
|
|
|
|
|
(2,977
|
)
|
Deferred revenue
|
|
|
|
|
|
(95
|
)
|
|
|
|
|
(38,656
|
)
|
Other operating assets and liabilities
|
|
|
|
|
|
(2,558
|
)
|
|
|
|
|
(1,111
|
)
|
Net cash used in operating activities
|
|
|
|
|
|
(8,498
|
)
|
|
|
|
|
(12,259
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities
|
|
|
|
|
|
|
|
|
|
|
|
Purchase of property and equipment
|
|
|
|
|
|
(64
|
)
|
|
|
|
|
(148
|
)
|
Purchase of investments
|
|
|
|
|
|
(5,015
|
)
|
|
|
|
|
(28,240
|
)
|
Proceeds from sale and maturity of short-term investments
|
|
|
|
|
|
19,520
|
|
|
|
|
|
28,961
|
|
Net cash provided by investing activities
|
|
|
|
|
|
14,441
|
|
|
|
|
|
573
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from options exercised
|
|
|
|
|
|
5
|
|
|
|
|
|
11
|
|
Net cash provided by financing activities
|
|
|
|
|
|
5
|
|
|
|
|
|
11
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash and cash equivalents
|
|
|
|
|
|
(8
|
)
|
|
|
|
|
2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in cash and cash equivalents
|
|
|
|
|
|
5,940
|
|
|
|
|
|
(11,673
|
)
|
Cash and cash equivalents at beginning of period
|
|
|
|
|
|
14,572
|
|
|
|
|
|
21,277
|
|
Cash and cash equivalents at end of period
|
|
|
|
|
$
|
20,512
|
|
|
|
|
$
|
9,604
|
|
Metabolix Inquiries:
Lynne H. Brum, 617-682-4693
LBrum@metabolix.com
Source: Metabolix, Inc.
News Provided by Acquire Media