Expands Sources of Biopolymer Supply; Provides Update on Biopolymer
Manufacturing
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 and
full year ended December 31, 2012.
"We executed well on our strategy in the fourth quarter and achieved
operational milestones in each of our business areas," said Richard P.
Eno, President and Chief Executive Officer. "In biopolymers, we grew
product shipments in the fourth quarter through sales to repeat and new
customers. We also launched our next-generation certified compostable
film product, MveraTM B5008, and began shipping I6001, a
biobased polymeric modifier for PVC. We also announced today that we
have signed agreements with Tianjin GreenBio Materials, a leading PHA
supplier located in China, under which we will distribute Tianjin's heat
shrink film in the U.S. and Europe, and they will supply Metabolix with
PHA biopolymer resins."
Mr. Eno continued, "Under our manufacturing demonstration phase
agreement, technology transfer to Antibióticos is essentially complete.
However, we are aware that Antibióticos is in a process of financial
restructuring, and our ability to obtain biopolymer product from
Antibióticos will depend on the outcome of that restructuring. We
continue to believe that the size and location of the Antibióticos
facility, as well as the expertise of its technical personnel, are well
suited to our current manufacturing needs. We are in the process of
negotiating a commercial contract with Antibióticos so that if they
achieve a satisfactory conclusion of their financial issues, we would be
in position to move ahead rapidly with commercial production."
"We will continue to build our supply chain, and through our engagement
with Tianjin GreenBio as a PHA supplier, we have the potential to
develop and commercialize additional PHA biopolymer products. In
addition, we have initiated a feasibility study to define our priorities
for a low-cost manufacturing site for long-term commercial scale
production of biopolymers and potentially biobased chemicals. Our
commercial strategy is to build a presence in key markets that will
enable us to base-load a future low-cost plant," said Mr. Eno.
FOURTH QUARTER AND FULL YEAR 2012 FINANCIAL OVERVIEW
Metabolix manages its finances with an emphasis on cash flow. The
Company has maintained this focus and ended the fourth quarter with
$46.3 million in unrestricted cash and investments. The Company's net
cash used for operating activities during the fourth quarter of 2012 was
$7.3 million, which decreased from net cash used of $8.6 million for the
comparable quarter in 2011. Metabolix continues to have no debt. The
Company currently expects that cash, cash equivalents and investments,
together with expected funds to be received from existing grants and
anticipated product sales, will be sufficient to meet anticipated cash
requirements for at least the next 12 months.
Total revenue in the fourth quarter of 2012 was $1.4 million, compared
to $0.4 million for the comparable quarter in 2011. The fourth quarter
revenue consisted primarily of revenue from government grants and
product sales. Grant revenue of $0.6 million increased by $0.2 million
over the same quarter of 2011, primarily as a result of work performed
on the Company's $6.0 million DOE grant. Biopolymer product orders of
$0.9 million were shipped and billed during the Company's fourth quarter
of 2012. The Company recognized $0.8 million in product revenue during
the fourth quarter of 2012, which included $0.6 million deferred from
the third quarter and $0.2 million from product shipped during the
fourth quarter. The Company deferred recognition of $0.8 million of
product revenue until the first quarter in 2013. This compares to
biopolymer product sales of $0.7 million shipped and billed during the
Company's third quarter of 2012 and $0.1 million of product revenue
recognized net of $0.6 million that was deferred to the Company's fourth
quarter in 2012. Biopolymer sales of $0.4 million were recorded in the
first half of 2012 prior to the adoption of the Company's current
product revenue recognition policy, which occurred during the quarter
ended September 30, 2012.
|
|
|
2012
|
(dollars in thousands)
|
|
Q1
|
|
Q2
|
|
Q3
|
|
Q4
|
|
Full Year
|
|
Q3 to Q4 Change
|
Orders shipped and billed
|
|
$
|
14
|
|
$
|
373
|
|
$
|
691
|
|
|
$
|
918
|
|
|
$
|
1,996
|
|
|
33
|
%
|
Deferred at period end1 |
|
|
-
|
|
|
-
|
|
|
(621
|
)
|
|
|
(785
|
)
|
|
|
(785
|
)
|
|
|
Current quarter shipments recognized
|
|
$
|
14
|
|
$
|
373
|
|
$
|
70
|
|
|
$
|
133
|
|
|
|
|
|
Deferred orders recognized
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
621
|
|
|
|
|
|
Total revenue recognized
|
|
$
|
14
|
|
$
|
373
|
|
$
|
70
|
|
|
$
|
754
|
|
|
$
|
1,211
|
|
|
|
|
1 The Company's product revenue recognition policy is to
defer recognition of product revenue until the later of sixty days or
receipt of customer payment.
Cost of product revenue was $0.6 million during the quarter ended
December 31, 2012 and primarily reflects the cost of product associated
with revenue recognized during the period and current period freight and
warehousing costs, including warehouse consolidation activities.
Research and development expenses were $7.2 million for the fourth
quarter of 2012, compared to $6.1 million for the same period in 2011.
The increase of $1.1 million is primarily due to $2.3 million in plant
modification, manufacturing equipment and raw material costs incurred in
connection with the Antibióticos manufacturing demonstration agreement,
partially offset by reductions in the use of external research and
development support and consulting costs of $0.6 million and $0.3
million, respectively.
Selling, general and administrative expenses were $3.1 million for the
fourth quarter of 2012, compared to $4.0 million for the comparable
quarter in 2011.
The Company reported a net loss of $9.5 million, or $0.28 per share, for
the fourth quarter of 2012, compared to a net loss of $9.6 million, or
$0.28 per share, for the fourth quarter of 2011.
Total revenue for the full year 2012 was $42.3 million, compared to $1.4
million in the prior year. The year-over-year increase was primarily due
to $38.9 million in deferred revenue that was recognized as a result of
the termination of the Telles joint venture in February 2012.
For the full year 2012, cost of product revenues was $1.4 million and
primarily reflects the cost of product associated with revenue
recognized during the period, as well as freight and warehousing costs,
including warehouse consolidation activities. Research and development
expenses were $23.2 million, compared to $24.4 million for 2011. The
decrease of $1.2 million is primarily due to a $1.7 million decrease in
contracted biopolymer research, a $0.8 million reduction in employee
compensation, and $0.6 million in reduced travel and consulting costs,
offset by a $2.3 million increase in costs incurred in connection with
initiation of the Antibióticos manufacturing demonstration agreement.
For the full year 2012, selling, general and administrative expenses
were $14.1 million, as compared to $15.8 million in 2011. The $1.7
million decrease is primarily attributable to reduced employee
compensation costs resulting from the Company's workforce reduction made
in response to the termination of the Telles joint venture.
For 2012, the Company reported net income of $3.6 million, or $0.11 per
share, as compared to a net loss of $38.8 million, or $1.24 per share,
for 2011.
Net cash used in operating activities for both 2012 and 2011 was $31.7
million.
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. (Eastern) to discuss the results of the fourth quarter and
year ended December 31, 2012. 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 1-877-709-8155 or 1-201-689-8881 (international).
To listen to a telephonic replay of the conference call, dial toll-free
1-877-660-6853 or 1-201-612-7415 (international) and enter pass code
410216. The replay will be available beginning at 7:30 p.m. (Eastern) on
Tuesday, March 26, 2013 and will last through 11:59 p.m. (Eastern) on
Tuesday, April 9, 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
biobased chemicals platform utilizes its novel "FAST" recovery process
to enable the production of cost-effective, "drop in" 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; plans to manufacture biopolymer
resin at Antibióticos; expectations regarding the ability of
Antibióticos to resolve its financial issues; expectations for
development and commercialization of additional PHA biopolymer products
with Tianjin GreenBio; Metabolix's commercialization plans and long-term
production strategy for biopolymers; expectations for the
commercialization of Metabolix biopolymers and the Company's industrial
chemicals and crops program; plans related to the distribution agreement
with Tianjin GreenBio, 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 uncertainty
of future profitability; the risk that Metabolix may be unable to raise
needed additional capital on favorable terms, if at all; the risk that
Metabolix may not be able to obtain sufficient biopolymer manufacturing
capacity on a timely or economical basis; uncertainty as to whether
Antibióticos will be able to complete the manufacturing demonstration or
to fulfill its obligations if a commercial manufacturing agreement is
entered into; uncertainties about Tianjin GreenBio's ability to supply
product meeting Metabolix's requirements; and 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,
2011 filed on March 12, 2012 and 10-Q filed on July 27, 2012. Metabolix
assumes no obligation to update any forward-looking information
contained in this press release or with respect to the announcements
described herein.
|
METABOLIX, INC.
|
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
|
UNAUDITED
|
(in thousands, except share and per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Twelve Months Ended
|
|
|
|
December 31,
|
|
|
December 31,
|
|
|
|
2012
|
|
|
|
2011
|
|
|
|
2012
|
|
|
2011
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue from termination of ADM collaboration
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
38,885
|
|
$
|
-
|
|
Grant revenue
|
|
|
556
|
|
|
|
351
|
|
|
|
1,971
|
|
|
918
|
|
License fee and royalty revenue from related parties
|
|
|
3
|
|
|
|
28
|
|
|
|
152
|
|
|
447
|
|
License fee and royalty revenue
|
|
|
84
|
|
|
|
60
|
|
|
|
97
|
|
|
60
|
|
Product revenue
|
|
|
754
|
|
|
|
-
|
|
|
|
1,211
|
|
|
-
|
|
Total revenue
|
|
|
1,397
|
|
|
|
439
|
|
|
|
42,316
|
|
|
1,425
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of product revenue
|
|
|
618
|
|
|
|
-
|
|
|
|
1,426
|
|
|
-
|
|
Research and development expenses
|
|
|
7,195
|
|
|
|
6,093
|
|
|
|
23,177
|
|
|
24,445
|
|
Selling, general and administrative expenses
|
|
|
3,104
|
|
|
|
3,963
|
|
|
|
14,110
|
|
|
15,841
|
|
Total costs and expenses
|
|
|
10,917
|
|
|
|
10,056
|
|
|
|
38,713
|
|
|
40,286
|
|
Income (loss) from operations
|
|
|
(9,520
|
)
|
|
|
(9,617
|
)
|
|
|
3,603
|
|
|
(38,861
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income, net
|
|
|
4
|
|
|
|
14
|
|
|
|
27
|
|
|
76
|
|
Net income (loss)
|
|
$
|
(9,516
|
)
|
|
$
|
(9,603
|
)
|
|
$
|
3,630
|
|
$
|
(38,785
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
(0.28
|
)
|
|
$
|
(0.28
|
)
|
|
$
|
0.11
|
|
$
|
(1.24
|
)
|
Diluted
|
|
$
|
(0.28
|
)
|
|
$
|
(0.28
|
)
|
|
$
|
0.11
|
|
$
|
(1.24
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of shares used in per share calculations:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
34,304,118
|
|
|
|
34,110,508
|
|
|
|
34,217,298
|
|
|
31,257,376
|
|
Diluted
|
|
|
34,304,118
|
|
|
|
34,110,508
|
|
|
|
34,279,779
|
|
|
31,257,376
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
METABOLIX, INC.
|
CONDENSED CONSOLIDATED BALANCE SHEET
|
UNAUDITED
|
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
|
December 31,
|
|
|
|
2012
|
|
|
2011
|
Assets
|
|
|
|
|
|
|
|
Cash, cash equivalents and short-term investments
|
|
$
|
43,773
|
|
$
|
76,855
|
|
Inventory
|
|
|
3,204
|
|
|
-
|
|
Other current assets
|
|
|
1,978
|
|
|
1,584
|
|
Restricted cash
|
|
|
594
|
|
|
622
|
|
Property and equipment, net
|
|
|
1,358
|
|
|
2,276
|
|
Long-term investments
|
|
|
2,508
|
|
|
1,503
|
|
Other assets
|
|
|
95
|
|
|
72
|
|
|
Total assets
|
|
$
|
53,510
|
|
$
|
82,912
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity
|
|
|
|
|
|
|
|
Accounts payable and accrued liabilities
|
|
$
|
4,752
|
|
$
|
4,086
|
|
Short-term deferred revenue
|
|
|
1,067
|
|
|
2,914
|
|
Current portion of deferred rent
|
|
|
165
|
|
|
165
|
|
Long-term deferred revenue
|
|
|
-
|
|
|
35,944
|
|
Other long-term liabilities
|
|
|
186
|
|
|
340
|
|
|
Total liabilities
|
|
|
6,170
|
|
|
43,449
|
|
|
Total stockholders' equity
|
|
|
47,340
|
|
|
39,463
|
|
|
Total liabilities and stockholders' equity
|
|
$
|
53,510
|
|
$
|
82,912
|
|
|
|
|
|
|
|
|
|
|
METABOLIX, INC.
|
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
|
UNAUDITED
|
(in thousands)
|
|
|
|
|
Year Ended December 31,
|
|
|
|
2012
|
|
|
|
2011
|
|
|
|
2010
|
|
Cash flows from operating activities
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
$
|
3,630
|
|
|
$
|
(38,785
|
)
|
|
$
|
(38,803
|
)
|
Adjustments to reconcile net income (loss) to cash used in
operating activities:
|
|
|
|
|
|
|
|
|
|
Depreciation
|
|
|
1,298
|
|
|
|
1,507
|
|
|
|
1,647
|
|
Charge for 401(k) company common stock match
|
|
|
408
|
|
|
|
529
|
|
|
|
443
|
|
Stock-based compensation
|
|
|
3,807
|
|
|
|
4,633
|
|
|
|
4,696
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
Other operating assets and liabilities
|
|
|
116
|
|
|
|
(948
|
)
|
|
|
(319
|
)
|
|
Deferred revenue
|
|
|
(37,791
|
)
|
|
|
1,333
|
|
|
|
341
|
|
|
Inventory
|
|
|
(3,204
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
Net cash used in operating activities
|
|
|
(31,736
|
)
|
|
|
(31,731
|
)
|
|
|
(31,995
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities
|
|
|
|
|
|
|
|
|
|
Purchase of property and equipment
|
|
|
(392
|
)
|
|
|
(895
|
)
|
|
|
(906
|
)
|
Proceeds from sale of equipment
|
|
|
12
|
|
|
|
-
|
|
|
|
-
|
|
Change in restricted cash
|
|
|
28
|
|
|
|
-
|
|
|
|
(29
|
)
|
Purchase of investments
|
|
|
(58,933
|
)
|
|
|
(107,477
|
)
|
|
|
(83,814
|
)
|
Proceeds from sale and maturity of short-term investments
|
|
|
84,303
|
|
|
|
99,464
|
|
|
|
116,126
|
|
|
|
Net cash provided by (used in) investing activities
|
|
|
25,018
|
|
|
|
(8,908
|
)
|
|
|
31,377
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities
|
|
|
|
|
|
|
|
|
|
Proceeds from options exercised
|
|
|
19
|
|
|
|
74
|
|
|
|
2,339
|
|
Proceeds from public stock offering, net of issuance costs
|
|
|
-
|
|
|
|
49,333
|
|
|
|
-
|
|
|
|
Net cash provided by financing activities
|
|
|
19
|
|
|
|
49,407
|
|
|
|
2,339
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash and cash equivalents
|
|
|
(6
|
)
|
|
|
(17
|
)
|
|
|
(9
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in cash and cash equivalents
|
|
|
(6,705
|
)
|
|
|
8,751
|
|
|
|
1,712
|
|
Cash and cash equivalents at beginning of period
|
|
|
21,277
|
|
|
|
12,526
|
|
|
|
10,814
|
|
Cash and cash equivalents at end of period
|
|
$
|
14,572
|
|
|
$
|
21,277
|
|
|
$
|
12,526
|
|
Metabolix Inquiries:
Metabolix, Inc.
Lynne H. Brum,
617-682-4693
LBrum@metabolix.com
Source: Metabolix, Inc.
News Provided by Acquire Media