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Amyris, Inc. (AMRS) SEC Filing 8-K Material Event for the period ending Friday, May 8, 2020

Amyris, Inc.

CIK: 1365916 Ticker: AMRS

image01.jpg      
FOR IMMEDIATE RELEASE

Investor Contact       
Peter DeNardo  
Amyris, Inc.
+1 (510) 597-5592  
denardo@amryis.com

AMYRIS, INC. REPORTS
FIRST QUARTER 2020 RESULTS

Sales Revenue Doubled Versus Prior Year Quarter

Strong Gross Margin And Earnings Growth From Improved Sales Mix And Lower Costs

Significantly Improved Balance Sheet From Reduced Debt


EMERYVILLE, CA – May 8, 2020 – Amyris, Inc. (Nasdaq: AMRS), a leading synthetic biotechnology company in Clean Health and Beauty markets through its consumer brands and a top supplier of sustainable and natural ingredients, today announced financial results for its first quarter ended March 31, 2020.

Keeping our people, partners and communities safe and healthy while benefiting from strong product demand has been our number one priority during these unprecedented times with COVID-19.

Management Comments
“COVID-19 has dominated all of our lives with a significant impact both from a health and economic perspective. Keeping our people, our partners and our communities safe and healthy while delivering on very strong product demand from consumers has been our number one priority. This meant that we had to adjust our ways of working across our supply chain, innovation center and offices. Our people have been amazing, and we have continued to deliver on our commitments to our customers,” said John Melo, President and Chief Executive Officer. “We play a critical role in helping those who have been impacted by the pandemic. This includes rapidly launching a new hand sanitizer of which we have donated over 20,000 units to frontline healthcare workers. Also, we supply key ingredients for household cleaning and personal care products and are exploring how our science can be further utilized to fight the virus.”

Continued Melo, “We are pleased with our first quarter results for what is typically our lowest sales quarter of the year due to seasonality. We have seen limited impact to our business performance from COVID-19. During the month of April we delivered our best single month of consumer product sales. We are experiencing significant demand for our ingredients into cleaning products and personal care products. We are encouraged by the growth in our top and bottom-line performance and see continued opportunity with our strong portfolio of branded consumer products and functional ingredients. Our focus on higher margin product sales and reducing unit costs by adapting our supply chain are



delivering strong results. At our current performance we expect to achieve positive operating cash performance by the fourth quarter of this year. We remain committed to our current guidance and will update our view on the year as we get more visibility.”

Q1 Financial Highlights
Performance was in line with expectations with Sales Revenue of $29 million up 103% versus the prior year quarter with strong growth seen in Consumer & Ingredients product sales
Gross Margin as a percentage of sales improved to 63% which compares to -33% in Q1 2019 and 56% for the full year 2019. Year-over-year margin growth delivered a $23 million improvement and was driven by improved sales mix from higher consumer brand sales and lower unit cost
Adjusted EBITDA of -$27 million improved $19 million versus the same quarter last year driven by the aforementioned margin improvements
GAAP Net Income of -$87 million was down $23 million. EBITDA improvements of $19 million were offset by non-cash debt related adjustments of $37 million.
Adjusted Net Income of -$44 million improved $15 million versus prior year.
Diluted EPS improved $0.26 or 32% to -$0.56
Adjusted Diluted EPS improved $0.47 or 63% to -$0.28 per share
Debt principal was reduced by $88 million or 30% during the quarter from $297 million to $209 million

Strategic Priorities
At the start of 2020 we set out four strategic priorities to focus our execution on accelerated growth and a clear path to profitability and sustained cash generation

High growth consumer brands: build on our Clean Beauty market leadership and double sales year over year. Extend offering of clean and safe ingredients and products
Scientific and commercial collaboration: Execute on R&D collaboration programs to scale 3-4 new molecules yearly. Establish market leadership in sustainable Health and Wellness markets
Supply chain optimization: Deliver lower unit costs targeting gross margins >60 of sales. Drive agile and robust supply network to support sales growth
Improved balance sheet, earnings and cash flow: Reduced balance sheet leverage. Be fully funded to deliver growth. Deliver on path to sustained cash generation from operational performance

During the first quarter we made strong progress on each of our strategic priorities:
Consumer brands sales more than doubled; mostly driven by Biossance, our Clean Beauty brand
Launched a new Pipette branded hand sanitizer product responding to COVID-19 needs. We donated first production batches to front-line healthcare workers
Collaboration revenue grew by more than 150%
Gross Margin grew to 63%
Expanded supply and fulfillment network to respond to continued consumer brand growth
Reduced and simplified debt. Delivered much improved earnings both in absolute terms and per diluted share





Q1 2020 Results
Variance $ and Variance % in the following tables and comments may not foot due to rounding

$ Millions except EPS
Quarter 120202019Variance $Variance %
Sales Revenue291415103%
Gross Margin63%(33%)--+9650bps
Net Income(87)(64)(23)(36%)
Adj. Net Income(44)(59)1525%
EBITDA(30)(49)1838%
Adj. EBITDA(27)(45)1941%
Diluted EPS(0.56)(0.82)0.2632%
Adj. Diluted EPS(0.28)(0.76)0.4763%
Sales Revenue improved by 103% due to a 92% improvement in Consumer & Ingredients and 158% growth in Collaboration & Grants
Gross Margin as a percentage of sales improved to 63%, and delivered a $23 million improvement driven by a combination of higher margins from consumer brand sales and lower unit costs in ingredients
GAAP Net Income of -$87 million was down $23 million impacted by non-cash adjustments and fair value assessments in debt instruments of $37 million. Adjusted Net Income of -$44 million improved $15 million versus prior year driven by operational improvements from sales mix and lower unit costs
Operating expenses of $44 million were up 5% due to investments in marketing and sales, partly offset by lower R&D expense
Adjusted EBITDA of -$27 million improved $19 million versus the same quarter last year primarily driven by margin improvements
Adjusted Diluted EPS improved $0.47 or 63% to -$0.28 per share

Q1 2020 Category Sales Revenue
Variance $ and Variance % in the following tables and comments may not foot due to rounding.

Quarter 12020 $ Millions2019 $ MillionsVariance $Variance %
Vol/MixPriceOtherTotal
Consumer & Ingredients2312110--1192%
Collaboration & Grants62----44158%
Total Sales2914110415103%
Note: Consumer & Ingredients sales is the total of Renewable Products and Licenses and Royalties

Consumer & Ingredients (C&I) sales grew 92% year over year (price +3%, volume/mix +89%) with growth seen in both direct-to-consumer branded products (+233%) and business-to-business ingredients (+50%). Excluding a $4 million one-off value share C&I sales were up 56%
Collaboration & Grants were up 158% year over year due to higher revenue from several strategic partnership programs





Full Year 2020 Outlook
Our current Sales Revenue guidance is maintained albeit that COVID-19 presents uncertainties to which we do not have full visibility.

Full year Sales Revenue is expected to grow approximately 44% versus 2019 GAAP sales of $153 million. 2020 recurring sales are expected to grow approximately 80% versus 2019 recurring sales of $104 million.

Full Year
2019
$ Millions
         2020
Growth %
Phasing
H1H2
Total GAAP Sales153~44%30%70%
Total Recurring Sales104~80%35%65%

Gross Margin is expected to operate at greater than 60% of sales due to improved sales mix and lower unit costs. Based on sales revenue guidance, Adjusted EBITDA is expected to turn positive during Q4 of this year.

FINANCIAL RESULTS AND NON-GAAP INFORMATION

To supplement our financial results and guidance presented on a GAAP basis, we use non-GAAP measures that we believe are helpful in understanding our results. These non-GAAP measures are among the factors management uses in planning and forecasting future periods. These non-GAAP financial measures also facilitate management’s internal comparisons to Amyris’s historical performance as well as comparisons to the operating results of other companies. Management believes these non-GAAP financial measures are useful to investors because they allow for greater transparency into the indicators used by management to understand, manage, and evaluate our business and make operating decisions. Our non-GAAP financial measures include the following:

Non-GAAP net income (loss) is calculated as GAAP net income/loss excluding stock-based compensation expense, gains or losses from change in fair value of debt, gains and losses from changes in the fair value of derivatives, losses on debt extinguishment, and losses allocated to participating securities.

Adjusted diluted EPS is calculated by dividing Non-GAAP net income (loss) by the weighted average shares, basic and diluted outstanding for the period.

Non-GAAP Gross Margin (Gross Margin) is calculated as GAAP revenues divided by GAAP cost of products sold excluding excess capacity, depreciation and amortization and other costs/provisions.

EBITDA is calculated as GAAP net loss less losses allocated to participating securities, interest, tax provision, depreciation and amortization.

Adjusted EBITDA is calculated as EBITDA less stock-based compensation expense, gains or losses from change in fair value of debt, gains and losses from changes in the fair value of derivatives, losses on debt extinguishment and other expense, net.

Non-GAAP financial information is not prepared under a comprehensive set of accounting rules, and therefore, should only be read in conjunction with financial information reported under U.S. GAAP in



order to understand Amyris’s operating performance. A reconciliation of the non-GAAP financial measures presented in this release to the most directly comparable GAAP financial measure, is provided in the tables attached to this press release.

Conference Call
Amyris will host its first quarter 2020 conference call today May 8, 2020 at 9:00 am ET (6:00 am PT) to discuss its financial results. Those who wish to listen to the conference call should dial into (888) 390-3967 (U.S. and International) and ask to be joined to the Amyris, Inc. call. A live webcast of the call will be available online on the Amyris website. To listen via live webcast, please visit: http://investors.amyris.com.

If you are unable to listen to the live call, the webcast will be archived on the Company’s website. A replay of the webcast will be available on the Investor Relations section of the company's website approximately two hours after the conclusion of the call. Additional information on Amyris’ first quarter 2020 results can also be found on the Company’s website.

About Amyris
Amyris (Nasdaq: AMRS) is a science and technology leader in the research, development and production of sustainable ingredients for the Clean Health & Beauty and Flavors & Fragrances markets. Amyris uses an impressive array of exclusive technologies, including state-of-the-art machine learning, robotics and artificial intelligence. Our ingredients are included in over 3,000 products from the world's top brands, reaching more than 200 million consumers. Amyris is proud to own three consumer brands - all built around its No Compromise® promise of clean ingredients: Biossance™ clean beauty skincare, Pipette™ clean baby skincare and Purecane™, a zero-calorie sweetener naturally derived from sugarcane. For more information, please visit www.amyris.com.

Forward-Looking Statements
This release contains forward-looking statements, and any statements other than statements of historical fact could be deemed to be forward-looking statements. These forward-looking statements include, among other things, statements regarding future events, such as expected revenue, including product and royalty revenues, recurring revenue, EBITDA, gross profit and operating expenses in 2020 and beyond, including related growth rates, anticipated growth for Amyris’s Clean Beauty business, expected production volume, delivery and cost reduction in 2020, and expectations regarding Amyris’s financial and operational results and ability to achieve its business plan in 2020 and beyond, including the potential utilization of its science in remedies against COVID-19. These statements are based on management's current expectations and actual results and future events may differ materially due to risks and uncertainties, including risks related to Amyris's liquidity and ability to fund operating and capital expenses, risks related to its financing activities, risks related to potential delays or failures in development, production and commercialization of products, risks related to Amyris's reliance on third parties, and other risks detailed from time to time in filings Amyris makes with the Securities and Exchange Commission, including Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Amyris disclaims any obligation to update information contained in these forward-looking statements, whether as a result of new information, future events, or otherwise.

Amyris, the Amyris logo, No Compromise, Biossance, Pipette, and Purecane are trademarks or registered trademarks of Amyris, Inc. in the U.S. and/or other countries.

###
Financial Tables Follow



Amyris, Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands)
March 31, 2020December 31, 2019
Assets  
Current assets:
Cash and cash equivalents$ 2,607$ 270
Restricted cash399469
Accounts receivable, net18,42616,322
Accounts receivable - related party, net6,7693,868
Contract assets9,3558,485
Inventories31,06327,770
Deferred cost of products sold - related party3,5353,677
Prepaid expenses and other current assets12,82312,750
Total current assets84,97773,611
Property, plant and equipment, net26,91228,930
Contract assets, noncurrent - related party1,2031,203
Deferred cost of products sold, noncurrent - related party12,81512,815
Restricted cash, noncurrent960960
Recoverable taxes from Brazilian government entities6,7267,676
Right-of-use assets under financing leases, net12,14312,863
Right-of-use assets under operating leases, net12,39113,203
Other assets9,1809,705
Total assets$ 167,307$ 160,966
Liabilities, Mezzanine Equity and Stockholders' Deficit  
Current liabilities:
Accounts payable$ 48,936$ 51,234
Accrued and other current liabilities40,94336,655
Financing lease liabilities3,5103,465
Operating lease liabilities4,7474,625
Contract liabilities3,2261,353
Debt, current portion64,45345,313
Related party debt, current portion14,17518,492
Total current liabilities179,990161,137
Long-term debt, net of current portion24,15348,452
Related party debt, net of current portion97,227149,515
Financing lease liabilities, net of current portion3,2554,166
Operating lease liabilities, net of current portion13,72815,037
Derivative liabilities7,7489,803
Other noncurrent liabilities17,33523,024
Total liabilities343,436411,134
Commitments and contingencies
Mezzanine equity:
Contingently redeemable common stock5,0005,000
Stockholders’ deficit:
Preferred stock--
Common stock1612
Additional paid-in capital1,708,0961,543,668
Accumulated other comprehensive loss(46,353)(43,804)
Accumulated deficit(1,843,497)(1,755,653)
Total Amyris, Inc. stockholders’ deficit(181,738)(255,777)
Noncontrolling interest609609
Total liabilities, mezzanine equity and stockholders' deficit$ 167,307$ 160,966



Amyris, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended March 31,
(In thousands, except shares and per share amounts)20202019
Revenue:
Renewable products (includes related party revenue of $49 and $2, respectively)$ 17,854$ 11,884
Licenses and royalties (includes related party revenue of $3,750 and ($380), respectively)5,161118
Grants and collaborations (includes related party revenue of $3,018 and $396, respectively)6,1152,372
Total revenue (includes related party revenue of $6,817 and $18, respectively)29,13014,374
Cost and operating expenses:
Cost of products sold11,79017,707
Research and development(1)
17,12617,839
Sales, general and administrative(1)
32,01428,253
Total cost and operating expenses60,93063,799
Loss from operations(31,800)(49,425)
Other income (expense):  
Interest expense(15,002)(12,534)
Gain (loss) from change in fair value of derivative instruments3,282(2,039)
Loss from change in fair value of debt(16,503)(2,130)
Loss upon extinguishment of debt(27,319)-
Other expense, net(411)(115)
Total other expense, net(55,953)(16,818)
Loss before income taxes(87,753)(66,243)
Provision for income taxes(91)-
Net loss attributable to Amyris, Inc.(87,844)(66,243)
Less loss allocated to participating securities1,0872,430
Net loss attributable to Amyris, Inc. common stockholders$ (86,757)$ (63,813)
  
Loss per share attributable to common stockholders, basic and diluted$ (0.56)$ (0.82)
Weighted-average shares of common stock outstanding used in computing loss per share of common stock, basic and diluted155,065,63577,512,059
(1) Includes stock-based compensation expense as follows:
Research and development$ 1,065$ 663
Sales, general and administrative2,4392,789
$ 3,504$ 3,452



Amyris, Inc.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION
(Unaudited)
Three Months Ended March 31,
(In thousands, except per share data)20202019
Net loss attributable to Amyris, Inc. common stockholders (GAAP)$ (86,757)$ (63,813)
Non-GAAP adjustments:
Stock-based compensation expense3,5043,452
(Gain) loss from change in fair value of derivative instruments(3,282)2,039
Loss from change in fair value of debt16,5032,130
Loss upon extinguishment of debt27,319-
Loss allocated to participating securities(1,087)(2,430)
Net loss attributable to Amyris, Inc. common stockholders (non-GAAP)$ (43,800)$ (58,622)
Weighted-average shares outstanding
Shares outstanding, basic and diluted155,065,63577,512,059
Net loss per share attributable to Amyris, Inc. common stockholders - Basic and Diluted (GAAP)$ (0.56)$ (0.82)
Non-GAAP adjustments:
Stock-based compensation expense0.020.04
(Gain) loss from change in fair value of derivative instruments(0.02)0.03
Loss from change in fair value of debt0.110.03
Loss upon extinguishment of debt0.18-
Loss allocated to participating securities(0.01)(0.03)
Adjusted Diluted EPS (non-GAAP)(1)
$ (0.28)$ (0.76)
(1) Amounts may not sum due to rounding.
Three Months Ended March 31,
(In thousands)20202019
Net loss attributable to Amyris, Inc. common stockholders (GAAP)$ (86,757)$ (63,813)
Non-GAAP adjustments:
Interest expense15,00212,534
Provision for income taxes91-
Depreciation and amortization1,720848
Loss allocated to participating securities(1,087)(2,430)
EBITDA(71,031)(52,861)
(Gain) loss from change in fair value of derivative instruments(3,282)2,039
Loss from change in fair value of debt16,5032,130
Loss upon extinguishment of debt27,319-
Other expense, net411115
Stock-based compensation expense3,5043,452
Adjusted EBITDA$ (26,576)$ (45,125)





Amyris, Inc.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION, CONTINUED
(Unaudited)
Three Months Ended March 31,
(In thousands)20202019
Revenue (GAAP and non-GAAP)$ 29,130$ 14,374
Cost of products sold (GAAP)$ 11,790$ 17,707
Other costs/provisions(815)2,008
Excess capacity(66)(441)
Depreciation and amortization(233)(136)
Cost of products sold (non-GAAP)$ 10,676$ 19,138
Adjusted gross profit (non-GAAP)$ 18,454$ (4,764)
Gross margin %63%-33%
Research and development expense (GAAP)$ 17,126$ 17,839
Stock-based compensation expense(1,065)(663)
Depreciation and amortization(1,225)(434)
Research and development expense (non-GAAP)$ 14,836$ 16,742
Sales, general and administrative expense (GAAP)$ 32,014$ 28,253
Stock-based compensation expense(2,439)(2,789)
Depreciation and amortization(262)(278)
Sales, general and administrative expense (non-GAAP)$ 29,313$ 25,186



 
 UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
 
 ____________________
 
FORM 8-K
 
Current Report Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934

____________________


Date of report (Date of earliest event reported): May 8, 2020
 
Amyris, Inc.
(Exact name of registrant as specified in its charter)
 ____________________

Delaware001-3488555-0856151
(State or other jurisdiction
of incorporation)
(Commission File Number)
(I.R.S. Employer
Identification No.)
 
5885 Hollis Street, Suite 100, Emeryville, CA94608
(Address of principal executive offices)(Zip Code)
 
(510) 450-0761
(Registrant’s telephone number, including area code)
Not applicable
(Former name or former address, if changed since last report.)
  
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligations of the registrant under any of the following provisions (see General Instruction A.2 below):
oWritten communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
oSoliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
oPre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
oPre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbol(s)
Name of each exchange on which registered
Common Stock, $0.0001 par value per share
AMRS
The Nasdaq Stock Market



Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2). Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

 



Item 2.02     Results of Operations and Financial Condition.

On May 8, 2020, Amyris, Inc. (the Company) issued a press release announcing the Company’s financial results for its fiscal quarter ended March 31, 2020. A copy of this press release, entitled “Amyris, Inc. Reports First Quarter 2020 Results”, is furnished as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.

Item 9.01    Financial Statements and Exhibits.

(d)    Exhibits

The following exhibit is furnished herewith:

Exhibit Number Description

The information in this report, including the exhibit hereto, shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liability of that section, nor shall it be deemed incorporated by reference into any filing of the Company, whether made before or after the date hereof, regardless of any general incorporation language in such filing, unless expressly incorporated by specific reference in such filing.



SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
AMYRIS, INC.
Date: May 8, 2020By:/s/ Han Kieftenbeld
Han Kieftenbeld
Chief Financial Officer
 
 

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Amyris, Inc. provided additional information to their SEC Filing as exhibits

Ticker: AMRS
CIK: 1365916
Form Type: 8-K Corporate News
Accession Number: 0001365916-20-000069
Submitted to the SEC: Fri May 08 2020 8:48:00 AM EST
Accepted by the SEC: Fri May 08 2020
Period: Friday, May 8, 2020
Industry: Industrial Organic Chemicals
Events:
  1. Earnings Release
  2. Financial Exhibit

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