Metabolix Announces Fourth Quarter and Full Year 2014 Financial Results
"In 2014 we began implementing a plan to reshape
"We continue to work closely with customers in our target application spaces, where we believe our PHA biopolymer materials can deliver significant value. Customers are progressing through product testing and validation and are evaluating our Mirel® biopolymers as performance additives for PVC and PLA, as well as in a range of applications requiring functional biodegradation. We are working hard to drive customer evaluations to sucessful conclusion in 2015.
"We recently announced a global, exclusive technology and commercial alliance with Honeywell to offer new marine biodegradable PHA biopolymers for use in cosmetics and personal care products. Honeywell selected our PHA biopolymers because they are a biobased, marine biodegradable alternative to synthetic plastic microbeads, with the potential to address emerging developments in the regulatory environment for personal care ingredients. We look forward to working with Honeywell to introduce new personal care products based on our biopolymers that will be marketed under Honeywell's Asensa® brand.
"In late 2014, we decided to significantly increase our pilot production capacity for Mirel® PHA biopolymers. The expansion of capacity within the existing footprint of our contracted recovery facility is well underway. Once these facility modifications are complete, we will begin ramping production to our expanded nameplate capacity of 50,000 pounds per month. And, as we've noted previously, we will continue to evaluate and develop production expansion options for our business as we bring on commercial scale customers for our PHA biopolymers," said Shaulson.
FULL YEAR AND FOURTH QUARTER 2014 FINANCIAL OVERVIEW
The Company's present capital resources are not sufficient to fund its planned operations for a twelve month period and, therefore, raise substantial doubt about the Company's ability to continue as a going concern. The Company expects that reductions in cash usage in 2015 due to the discontinuation of its German operations, the restructuring of its U.S. organization and other cost-containment measures will be largely offset by increased biopolymer production costs. As a result,
Continuing Operations:
For 2014, the Company reported a net loss from continuing operations of
Total revenue from continuing operations for the full year 2014 was
Research and development expenses for continuing operations were
The Company's net cash used in operating activities for continuing operations during the full year 2014 and 2013 was unchanged at
The Company reported a net loss from continuing operations of
Total revenue in the fourth quarter of 2014 was
In the fourth quarter of 2014, research and development expenses were
Discontinued Operations:
In
Restructuring:
In
Conference Call Information
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About
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, including, without limitation, statements regarding the Company's business plans and strategies; expectations for pilot and commercial scale PHA biopolymer manufacturing; expected market demand and commercialization plans for the Company's PHA biopolymer products; expected future financial results and cash requirements; plans for obtaining additional funding; plans and expectations that depend on the Company's ability to continue as a going concern; and
expectations for future research, product development and collaborations 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
(FINANCIAL TABLES FOLLOW)
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CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS | ||||
UNAUDITED | ||||
(in thousands, except share and per share data) | ||||
Three Months Ended | Twelve Months Ended | |||
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2014 | 2013 | 2014 | 2013 | |
Revenue: | ||||
Product revenue | $ 118 | $ 57 | $ 546 | $ 461 |
Grant revenue | 506 | 609 | 1,807 | 2,480 |
Research and development revenue | -- | -- | -- | 618 |
License fee and royalty revenue | 232 | 80 | 447 | 219 |
Total revenue | 856 | 746 | 2,800 | 3,778 |
Costs and expenses: | ||||
Cost of product revenue | 110 | 664 | 1,482 | 1,908 |
Research and development expenses | 4,062 | 4,603 | 17,342 | 18,802 |
Selling, general, and administrative expenses | 2,536 | 3,438 | 10,805 | 11,608 |
Total costs and expenses | 6,708 | 8,705 | 29,629 | 32,318 |
Loss from continuing operations | (5,851) | (7,959) | (26,829) | (28,540) |
Other income (expense), net | 45 | (8) | 61 | (4) |
Net loss from continuing operations | (5,807) | (7,967) | (26,768) | (28,544) |
Discontinued operations | ||||
Loss from discontinued operations | (448) | (660) | (1,878) | (1,962) |
Loss from write down of assets held for sale | 3 | -- | (888) | -- |
Total loss from discontinued operations | (445) | (660) | (2,766) | (1,962) |
Net Loss | $ (6,252) | $ (8,627) | $ (29,534) | $ (30,506) |
Basic and diluted net loss per share: | ||||
Net loss from continuing operations | $ (0.05) | $ (0.23) | $ (0.44) | $ (0.83) |
Net loss from discontinued operations | -- | (0.02) | (0.04) | (0.05) |
Net loss per share | $ (0.05) | $ (0.25) | $ (0.48) | $ (0.88) |
Number of shares used in per share calculations: | ||||
Basic & Diluted | 118,869,232 | 34,578,636 | 61,455,063 | 34,471,301 |
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CONDENSED CONSOLIDATED BALANCE SHEET | ||
UNAUDITED | ||
(in thousands) | ||
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2014 | 2013 | |
Assets | ||
Cash, cash equivalents and short-term investments | $ 20,046 | $ 19,209 |
Inventory | 586 | 1,921 |
Other current assets | 1,333 | 1,948 |
Assets of disposal group classified as held for sale | -- | 2,153 |
Restricted cash | 619 | 619 |
Property and equipment, net | 456 | 793 |
Other assets | 95 | 95 |
Total assets |
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Liabilities and Stockholders' Equity | ||
Accounts payable and accrued expenses | $ 4,042 | $ 5,471 |
Short-term deferred revenue | 147 | 669 |
Current portion of deferred rent | -- | 55 |
Other long-term liabilities | 150 | 145 |
Total liabilities | 4,339 | 6,340 |
Total stockholders' equity | 18,796 | 20,398 |
Total liabilities and stockholders' equity | $ 23,135 | $ 26,738 |
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CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS | |||
UNAUDITED | |||
(in thousands) | |||
Years Ended |
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2014 | 2013 | 2012 | |
Cash flows from operating activities | |||
Net income (loss) |
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$ (30,506) | $ 3,630 |
Less: | |||
Loss from discontinued operations | (2,766) | (1,962) | (326) |
Income (loss) from continuing operations | (26,768) | (28,544) | 3,956 |
Adjustments to reconcile net income (loss) to cash used in operating activities: | |||
Depreciation | 507 | 928 | 1,298 |
Charge for 401(k) company common stock match | 374 | 397 | 408 |
Stock-based compensation | 2,276 | 3,122 | 3,779 |
Inventory impairment | 873 | 746 | 138 |
Gain on sale of property and equipment | (43) | -- | -- |
Changes in operating assets and liabilities: | |||
Inventory | 462 | (516) | (2,288) |
Accounts payable and accrued expenses | (1,424) | 729 | 687 |
Deferred rent and other long-term liabilities | (50) | (151) | (154) |
Deferred revenue | (522) | (398) | (37,791) |
Other operating assets and liabilities | 624 | 30 | (417) |
Net cash used by continuing operations for operating activities | (23,691) | (23,657) | (30,384) |
Net cash used by discontinued operations for operating activities | (553) | (2,991) | (1,352) |
Net cash used in operating activities | (24,244) | (26,648) | (31,736) |
Cash flows from investing activities | |||
Purchase of property and equipment | (172) | (373) | (392) |
Proceeds from sale of equipment | 43 | -- | 12 |
Change in restricted cash | -- | (25) | 28 |
Purchase of short-term investments | (1,508) | (16,635) | (58,933) |
Proceeds from the sale and maturity of short-term investments | 13,017 | 36,821 | 84,303 |
Net cash provided by investing activities | 11,380 | 19,788 | 25,018 |
Cash flows from financing activities | |||
Proceeds from options exercised | 300 | 14 | 19 |
Proceeds from private placement offering, net of issuance costs | 24,914 | -- | -- |
Net cash provided by financing activities | 25,214 | 14 | 19 |
Effect of exchange rate changes on cash and cash equivalents | (2) | (28) | (6) |
Net increase in cash and cash equivalents | 12,348 | (6,874) | (6,705) |
Cash and cash equivalents at beginning of period | 7,698 | 14,572 | 21,277 |
Cash and cash equivalents at end of period | $ 20,046 | $ 7,698 | $ 14,572 |
CONTACT: Metabolix Inquiries:Source:Lynne H. Brum , (617) 682-4693, LBrum@metabolix.com
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