Metabolix Announces Third Quarter 2015 Financial Results
"Throughout 2015, we have been executing a strategic transformation of the Company with a focus on our Mirel® specialty biopolymers business," said
"During the quarter, we completed more than 15 customer trials across our target application spaces of PVC processing aids and property modifiers, PLA modification, functional biodegradation and paper coating. Based on this progress, we expect to see additional customer conversions in the fourth quarter of 2015 and early 2016.
"We are continuing to demonstrate to customers the unique benefits our a-PHA materials provide as performance additives in PVC applications. For instance, in flexible PVC flooring applications, we recently completed a series of trials with customers who are approaching initial commercial sales. In one of these projects, our a-PHA is in the late stages of qualification by a major U.S. flooring company for incorporation into the backing of a sustainable flooring product. Another customer in a different vinyl flooring application is completing their evaluation of our a-PHA material. We believe these opportunities have initial sales potential that is significant in the context of our expanded pilot capacity and have long term potential for translation to additional opportunities in PVC flooring. More broadly, we think the value proposition for a-PHA in flexible PVC applications is compelling, and we expect to work with additional customers in this space in 2016.
"We are also working with customers interested in achieving better performance with PLA biopolymers. We see an opportunity developing and are beginning to focus on a-PHA-modified PLA in sustainable, biobased and compostable packaging applications. In addition to conducting trials in film, we recently began working with customers interested in a-PHA-modified PLA for thermoformed transparent ‘clamshells' used in food service and consumer goods packaging. Recent trials of a-PHA-modified PLA in packaging and non-wovens look promising, and we remain focused on customer conversions in this space driven by the benefits of a-PHA modifiers for PLA.
"During the quarter, Kolar Filtration conducted trials with our denitrification pellets for water treatment applications. Based on the successful completion of the trials as well as a vision for expanding the market for PHA-based denitrification, we signed a global, exclusive distribution agreement with Kolar to market and promote Metabolix PHA-based denitrification pellets for water treatment applications. Our agreement with Kolar streamlines the process for compounding and supplying finished product to established customers focused on ornamental and hobby aquaria, and we expect Kolar to expand the use of PHA-based denitrification into larger scale applications including fresh water ponds, hatcheries and commercial aqua farming.
"We also launched Yield10 Bioscience in the third quarter as a new vehicle for commercializing technologies derived from the extraordinary scientific effort we have directed toward optimizing plant systems. We have seen encouraging early results in model plant systems that we think are transferable to and hold promise for significant yield improvements in commercial food and feed crops. We are reaching out to potential collaborators and investors and are working to secure dedicated funding for Yield10 Bioscience to continue with the development and commercialization of these exciting technologies.
"Securing capital remains a priority for the execution of our business plan. In October, we entered into a
"2015 has been a transformative year for Metabolix. We look forward to 2016 as a building year, during which we expect to lay groundwork for establishing our commercial scale specialty biopolymers business. We are pleased with the progress made in 2015, and are excited to delve into a more commercial scale focused set of priorities for 2016," said Shaulson.
THIRD QUARTER 2015 FINANCIAL OVERVIEW
The Company's net cash used in operating activities during the third quarter of 2015 was
On
Continuing Operations:
For the third quarter of 2015, the Company reported a net loss from continuing operations of
Total revenue from continuing operations in the third quarter of 2015 was
In the third quarter of 2015, research and development expenses for continuing operations were
The Company's net cash used in operating activities for continuing operations during the third quarter of 2015 was
For the first nine
months of 2015, the Company reported a net loss from continuing operations of
Total revenue during the first nine months of 2015 was
Research and development expenses were
The Company's net cash used by continuing operations for operating activities during the first nine months of 2015 was
Discontinued Operations:
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 pilot and commercial scale PHA biopolymer manufacturing; expected market demand and commercialization plans for the Company's PHA biopolymer products; business plans and funding for the crop science program; expected future financial results and cash requirements; plans for obtaining additional funding; 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)
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS | ||||||||||||||||
UNAUDITED | ||||||||||||||||
(in thousands, except share and per share data) | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Revenue: | ||||||||||||||||
Product revenue | $ | 209 | $ | 115 | $ | 394 | $ | 428 | ||||||||
Grant revenue | 327 | 390 | 1,249 | 1,301 | ||||||||||||
License fee and royalty revenue | 173 | 127 | 455 | 215 | ||||||||||||
Total revenue | 709 | 632 | 2,098 | 1,944 | ||||||||||||
Costs and expenses: | ||||||||||||||||
Cost of product revenue | 347 | 786 | 521 | 1,372 | ||||||||||||
Research and development | 4,088 | 4,088 | 12,332 | 13,280 | ||||||||||||
Selling, general, and administrative | 2,156 | 2,472 | 7,086 | 8,269 | ||||||||||||
Total costs and expenses | 6,591 | 7,346 | 19,939 | 22,921 | ||||||||||||
Loss from continuing operations | (5,882 | ) | (6,714 | ) | (17,841 | ) | (20,977 | ) | ||||||||
Other income (expense): | ||||||||||||||||
Interest income, net | 1 | 4 | 3 | 6 | ||||||||||||
Other income (expense), net | 33 | 2 | 74 | 10 | ||||||||||||
Total other income (expense), net | 34 | 6 | 77 | 16 | ||||||||||||
Net loss from continuing operations | (5,848 | ) | (6,708 | ) | (17,764 | ) | (20,961 | ) | ||||||||
Discontinued operations: | ||||||||||||||||
Loss from discontinued operations | — | (294 | ) | — | (1,430 | ) | ||||||||||
Loss from write down of assets held for sale | — | (891 | ) | — | (891 | ) | ||||||||||
Total loss from discontinued operations | — | (1,185 | ) | — | (2,321 | ) | ||||||||||
Net loss | $ | (5,848 | ) | $ | (7,893 | ) | $ | (17,764 | ) | $ | (23,282 | ) | ||||
Basic and diluted net loss per share: | ||||||||||||||||
Net loss from continuing operations | $ | (0.22 | ) | $ | (0.71 | ) | $ | (0.73 | ) | $ | (2.99 | ) | ||||
Net loss from discontinued operations | — | (0.13 | ) | — | (0.33 | ) | ||||||||||
Net loss per share | $ | (0.22 | ) | $ | (0.84 | ) | $ | (0.73 | ) | $ | (3.32 | ) | ||||
Number of shares used in per share calculations: | ||||||||||||||||
Basic & Diluted | 26,979,598 | 9,381,316 | 24,234,043 | 7,017,749 |
CONDENSED CONSOLIDATED BALANCE SHEET | ||||||||
UNAUDITED | ||||||||
(in thousands) | ||||||||
2015 | 2014 | |||||||
Assets | ||||||||
Current Assets: | ||||||||
Cash and cash equivalents | $ | 17,894 | $ | 20,046 | ||||
Accounts receivable | 276 | 45 | ||||||
Due from related parties | 147 | 112 | ||||||
Unbilled receivables | 288 | 420 | ||||||
Inventory | 375 | 586 | ||||||
Prepaid expenses and other current assets | 1,443 | 756 | ||||||
Total current assets | 20,423 | 21,965 | ||||||
Restricted cash | 619 | 619 | ||||||
Property and equipment, net | 908 | 456 | ||||||
Other assets | 170 | 95 | ||||||
Total assets | $ | 22,120 | $ | 23,135 | ||||
Liabilities and Stockholders' Equity | ||||||||
Current Liabilities: | ||||||||
Accounts payable | $ | 448 | $ | 333 | ||||
Accrued expenses | 3,590 | 3,709 | ||||||
Deferred revenue | 154 | 147 | ||||||
Total current liabilities | 4,192 | 4,189 | ||||||
Other long-term liabilities | 150 | 150 | ||||||
Total liabilities | 4,342 | 4,339 | ||||||
Commitments and contingencies | ||||||||
Stockholders' Equity: | ||||||||
Preferred stock ( | — | — | ||||||
Common stock ( | 270 | 225 | ||||||
Additional paid-in capital | 337,416 | 320,707 | ||||||
Accumulated other comprehensive loss | (72 | ) | (64 | ) | ||||
Accumulated deficit | (319,836 | ) | (302,072 | ) | ||||
Total stockholders' equity | 17,778 | 18,796 | ||||||
Total liabilities and stockholders' equity | $ | 22,120 | $ | 23,135 |
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS | ||||||||
UNAUDITED | ||||||||
(in thousands) | ||||||||
Nine Months Ended | ||||||||
2015 | 2014 | |||||||
Cash flows from operating activities | ||||||||
Net loss | $ | (17,764 | ) | $ | (23,282 | ) | ||
Less: | ||||||||
Loss from discontinued operation | — | (2,321 | ) | |||||
Loss from continuing operations | (17,764 | ) | (20,961 | ) | ||||
Adjustments to reconcile net loss to cash used in operating activities: | ||||||||
Depreciation | 167 | 430 | ||||||
Charge for 401(k) company common stock match | 291 | 332 | ||||||
Stock-based compensation | 1,483 | 1,912 | ||||||
Inventory impairment | 202 | 886 | ||||||
Gain on sale of property and equipment | (33 | ) | — | |||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivables | (231 | ) | 769 | |||||
Due from related party | (35 | ) | (49 | ) | ||||
Unbilled receivables | 132 | 34 | ||||||
Inventory | 9 | 191 | ||||||
Prepaid expenses and other assets | (687 | ) | 254 | |||||
Accounts payable | 48 | (211 | ) | |||||
Accrued expenses | 18 | (1,355 | ) | |||||
Deferred rent and other long-term liabilities | — | (50 | ) | |||||
Deferred revenue | 7 | (364 | ) | |||||
Net cash used by continuing operations for operating activities | (16,393 | ) | (18,182 | ) | ||||
Net cash used by discontinued operations for operating activities | — | (460 | ) | |||||
Net cash used in operating activities | (16,393 | ) | (18,642 | ) | ||||
Cash flows from investing activities | ||||||||
Purchase of property and equipment | (498 | ) | (153 | ) | ||||
Proceeds from sale of equipment | 40 | — | ||||||
Purchase of short-term investments | — | (1,508 | ) | |||||
Proceeds from the sale and maturity of short-term investments | — | 13,019 | ||||||
Net cash (used by) provided by investing activities | (458 | ) | 11,358 | |||||
Cash flows from financing activities | ||||||||
Proceeds from options exercised | — | 300 | ||||||
Proceeds from private placement offerings, net of issuance costs | 14,703 | 24,913 | ||||||
Net cash provided by financing activities | 14,703 | 25,213 | ||||||
Effect of exchange rate changes on cash and cash equivalents | (4 | ) | (141 | ) | ||||
Net (decrease) increase in cash and cash equivalents | (2,152 | ) | 17,788 | |||||
Cash and cash equivalents at beginning of period | 20,046 | 7,698 | ||||||
Cash and cash equivalents at end of period | $ | 17,894 | $ | 25,486 | ||||
Supplemental disclosure of non-cash information: | ||||||||
Purchase of property and equipment included in accounts payable and accrued expenses | $ | 128 | $ | — | ||||
Offering costs included in accrued expenses | $ | 75 | $ | — | ||||
Restricted stock units issued to settle incentive compensation obligation | $ | 305 | $ | — |
Metabolix Inquiries:Source:Lynne H. Brum , (617) 682-4693, LBrum@metabolix.com
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