Metabolix Announces Third Quarter 2014 Financial Results
"During the third quarter, we began implementing a strategic plan to reshape
"In the third quarter, we closed on a
"Operationally, we are making good progress on the commercial front to move customers through the development and qualification process and convert them to commercial status," Shaulson continued. "Over the past several months, we have been working closely with potential customers in the areas of PVC and PLA additives, barrier coatings for paper and micropowders. We expect initial customer projects in both the PVC and PLA application spaces to convert to commercial sales in the first quarter of 2015, underscoring the value proposition of our innovative PHA additives.
"Also during the quarter, we began a preliminary engineering study and detailed implementation planning for the retrofit of an existing contract manufacturing facility we have targeted for intermediate scale commercial PHA production. This study remains on track and we plan to progress to a detailed budget, definitive schedule and commercial contract for PHA manufacturing later this year, for the startup of production at the facility in late 2015," Shaulson said.
THIRD QUARTER 2014 FINANCIAL OVERVIEW
On
Discontinued operations are presented in the statement of operations as a consolidated line item below net loss from continuing operations.
Continuing Operations:
For the third quarter of 2014, the Company reported a net loss from continuing operations of
Total revenue from continuing operations in the third quarter of 2014 was
Research and development expenses for continuing operations were
For the nine months ended
Total revenue from continuing operations during the first nine months of 2014 was
Research and development expenses for continuing operations were
The Company's net cash used by continuing operations for operating activities during the first nine months of 2014 was
Discontinued Operations:
On
Restructuring:
In
Conference Call Information
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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 establishing commercial PHA biopolymer manufacturing; expected market demand and commercialization plans for the Company's PHA biopolymer products; expected future financial results, operational cash usage rates, 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 Metabolix's filings with the Securities and Exchange Commission, including its 10-K for the year ended December 31, 2013 filed on March 28, 2014.
Metabolix Inquiries:
(FINANCIAL TABLES FOLLOW)
| |||||||||||||
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS | |||||||||||||
UNAUDITED | |||||||||||||
(in thousands, except share and per share data) | |||||||||||||
Three Months Ended |
Nine Months Ended | ||||||||||||
|
| ||||||||||||
2014 |
2013 |
2014 |
2013 | ||||||||||
Revenue: |
|||||||||||||
Product revenue |
$ |
115 |
$ |
39 |
$ |
428 |
$ |
1,120 | |||||
Grant revenue |
390 |
563 |
1,301 |
1,871 | |||||||||
Research and development revenue |
- |
- |
- |
618 | |||||||||
License fee and royalty revenue |
127 |
27 |
215 |
139 | |||||||||
Total revenue |
632 |
629 |
1,944 |
3,748 | |||||||||
Costs and expenses: |
|||||||||||||
Cost of product revenue |
786 |
130 |
1,372 |
1,521 | |||||||||
Research and development expenses |
4,088 |
4,515 |
13,280 |
14,199 | |||||||||
Selling, general, and administrative expenses |
2,472 |
2,473 |
8,269 |
8,384 | |||||||||
Total costs and expenses |
7,346 |
7,118 |
22,921 |
24,104 | |||||||||
Loss from continuing operations |
(6,714) |
(6,489) |
(20,977) |
(20,356) | |||||||||
Other income (expense): |
|||||||||||||
Interest income, net |
4 |
4 |
6 |
17 | |||||||||
Other income (expense), net |
2 |
(13) |
10 |
(13) | |||||||||
Total other income (expense), net |
6 |
(9) |
16 |
4 | |||||||||
Net loss from continuing operations |
(6,708) |
(6,498) |
(20,961) |
(20,352) | |||||||||
Discontinued operations |
|||||||||||||
Loss from discontinued operations |
(294) |
(753) |
(1,430) |
(1,527) | |||||||||
Loss from write down of assets held for sale |
(891) |
- |
(891) |
- | |||||||||
Total loss from discontinued operations |
(1,185) |
(753) |
(2,321) |
(1,527) | |||||||||
Net Loss |
$ |
(7,893) |
$ |
(7,251) |
$ |
(23,282) |
$ |
(21,879) | |||||
Basic and diluted net loss per share: |
|||||||||||||
Net loss from continuing operations |
$ |
(0.12) |
$ |
(0.19) |
$ |
(0.50) |
$ |
(0.60) | |||||
Net loss from discontinued operations |
(0.02) |
(0.02) |
(0.05) |
(0.04) | |||||||||
Net loss per share |
$ |
(0.14) |
$ |
(0.21) |
$ |
(0.55) |
$ |
(0.64) | |||||
Number of shares used in per share calculations: |
|||||||||||||
Basic & Diluted |
56,288,099 |
34,516,051 |
42,106,699 |
34,435,129 | |||||||||
| ||||||||
CONDENSED CONSOLIDATED BALANCE SHEET | ||||||||
UNAUDITED | ||||||||
(in thousands) | ||||||||
|
| |||||||
2014 |
2013 | |||||||
Assets |
||||||||
Cash, cash equivalents |
$ |
25,486 |
$ |
7,698 | ||||
Short-term investments |
- |
11,511 | ||||||
Inventory |
844 |
1,921 | ||||||
Other current assets |
940 |
1,948 | ||||||
Assets of disposal group classified as held for sale |
292 |
2,153 | ||||||
Restricted cash |
619 |
619 | ||||||
Property and equipment, net |
516 |
793 | ||||||
Other assets |
95 |
95 | ||||||
Total assets |
$ |
28,792 |
$ |
26,738 | ||||
Liabilities and Stockholders' Equity |
||||||||
Accounts payable and accrued liabilities |
$ |
3,942 |
$ |
5,471 | ||||
Short-term deferred revenue |
305 |
669 | ||||||
Current portion of deferred rent |
- |
55 | ||||||
Other long-term liabilities |
150 |
145 | ||||||
Total liabilities |
4,397 |
6,340 | ||||||
Commitments and contingencies |
||||||||
Stockholders' Equity: |
||||||||
Preferred stock ( |
1 |
- | ||||||
Common stock ( |
851 |
346 | ||||||
Additional paid-in-capital |
319,575 |
292,661 | ||||||
Accumulated other comprehensive loss |
(212) |
(71) | ||||||
Accumulated deficit |
(295,820) |
(272,538) | ||||||
Total stockholders' equity |
24,395 |
20,398 | ||||||
Total liabilities and stockholders' equity |
$ |
28,792 |
$ |
26,738 | ||||
| ||||
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS | ||||
UNAUDITED | ||||
(in thousands) | ||||
Nine Months Ended | ||||
2014 |
2013 | |||
Cash flows from operating activities |
||||
Net loss |
$ |
(23,282) |
$ |
(21,879) |
Less: |
||||
Loss from discontinued operations |
(2,321) |
(1,527) | ||
Loss from continuing operations |
(20,961) |
(20,352) | ||
Adjustments to reconcile net loss to cash used in operating activities: |
||||
Depreciation |
430 |
737 | ||
Charge for 401(k) company common stock match |
332 |
356 | ||
Stock-based compensation |
1,912 |
2,441 | ||
Inventory impairment |
886 |
245 | ||
Changes in operating assets and liabilities: |
||||
Inventory |
191 |
(377) | ||
Accounts payable and accrued expenses |
(1,566) |
(1,171) | ||
Other operating assets and liabilities |
1,008 |
369 | ||
Deferred rent and other long-term liabilities |
(50) |
(254) | ||
Deferred revenue |
(364) |
(617) | ||
Net cash used by continuing operations for operating activities |
(18,182) |
(18,623) | ||
Net cash used by discontinued operations for operating activities |
(460) |
(1,591) | ||
Net cash used in operating activities |
(18,642) |
(20,214) | ||
Cash flows from investing activities |
||||
Purchase of property and equipment |
(153) |
(281) | ||
Change in restricted cash |
(25) | |||
Purchase of short-term investments |
(1,508) |
(15,621) | ||
Proceeds from the sale and maturity of short-term investments |
13,019 |
30,447 | ||
Net cash provided by investing activities |
11,358 |
14,520 | ||
Cash flows from financing activities |
||||
Proceeds from options exercised |
300 |
14 | ||
Proceeds from private placement offering, net of issuance costs |
24,913 |
- | ||
Net cash provided by financing activities |
25,213 |
14 | ||
Effect of exchange rate changes on cash and cash equivalents |
(141) |
(20) | ||
Net increase in cash and cash equivalents |
17,788 |
(5,700) | ||
Cash and cash equivalents at beginning of period |
7,698 |
14,572 | ||
Cash and cash equivalents at end of period |
$ |
25,486 |
$ |
8,872 |
SOURCE
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