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AMYRIS, INC. REPORTS FIRST QUARTER 2022 FINANCIAL RESULTS

AMRS
  • Record consumer revenue of $34.6 million increased 121% compared to Q1 2021
  • Barra Bonita commissioning on track to commence ingredients production in Q2

EMERYVILLE, Calif., May 10, 2022 /PRNewswire/ -- Amyris, Inc. (Nasdaq: AMRS), a leading synthetic biotechnology company accelerating the world's transition to sustainable consumption through its Lab-to-MarketTM technology platform, today announced financial results for the first quarter ended March 31, 2022.

"We continued to advance our growth roadmap, delivering 75% core revenue growth and growing consumer revenue by 121% versus the prior year quarter to a new record of $35 million. Technology access revenue grew 33% year-over-year to $23 million in the quarter. We experienced strong demand for our consumer and ingredients products, an estimated $7 million more than we had capacity to deliver, particularly in ingredients due to reliance on third party manufacturing. We began commissioning our strategic fermentation plant in Barra Bonita, Brazil keeping us on track to start commercial production in the second quarter. This investment is critical to meet demand, reduce our reliance on costly third-party ingredients manufacturing and the delivery of substantial margin improvement starting this year," said John Melo, President and Chief Executive Officer.

"Demand is very robust for our high-performance and environmentally responsible consumer products. During the first quarter, we completed the acquisitions of MenoLabs, a science-backed menopause-focused women's wellness brand, and EcoFabulous, our new Gen Z brand, with MenoLabs contributing new revenue in the first quarter. We remain on track to launch EcoFabulous and Stripes, a menopause brand in partnership with Naomi Watts, in the third quarter of this year. These three brands, along with JVNTM clean haircare and Rose Inc.TM clean color cosmetics, are expected to deliver significant new revenue in the quarters ahead," Melo continued.

"Over the past 12 months, we have been focused on incubating, acquiring and investing in our consumer portfolio, which has paved the way for our current rate of consumer growth. We have built the leading portfolio of consumer brands in the categories we serve. We are now transitioning our focus to execution, efficiency and portfolio management," stated Melo. "We plan to further optimize our portfolio and are in discussions for the licensing of marketing rights of two ingredients which we expect can deliver over $250 million of proceeds by the end of this year, evidencing the quality and depth of our technology-driven asset base. Our products address the needs of over 300 million consumers globally while reducing reliance on unsustainable and environmentally harmful ingredients. The world is becoming powered by Amyris' technology as we all seek ways to address global supply chain volatility, ingredient and product safety, and personal health and wellness."

Business and Operational Highlights

Core revenue comprises consumer and technology access revenue. Technology access includes ingredient product revenue, R&D collaboration, and technology licenses. Core revenue excludes strategic transactions and other one-off items.

Consumer

  • Record consumer revenue of $34.6 million increased 121% compared to Q1 2021 primarily due to solid year-over-year growth of Amyris' legacy brands, as well as strong contribution from new brands, led by JVN and Rose, Inc.
  • 57% of Q1 2022 consumer revenue was direct-to-consumer (DTC) from Amyris ecommerce, while 43% originated from retail (in-store and online sales). Around 90% of revenue originated from North America. Consumer retail traffic is back strong and above expectations, and we are expanding internationally. We expect both factors to drive additional growth in the second quarter and beyond.
  • Amyris brands continued to gain traction with large omnichannel distributors and major retailers. In addition to recently taking to shelves in Walgreens, PipetteTM recently entered Walgreens and is also expanding its presence in Target stores and Walmart during 2022 representing an additional 10,000 new selling points. OLIKATM clean wellness products experienced increased revenues following its recent launch in Walmart.

Technology Access

  • Q1 2022 technology access sales growth of 33% was due to growth in demand for Flavors & Fragrances (F&F) and Sweetener ingredients, and a $8.8 million earnout related to the strategic DSM F&F transaction completed in Q1 2021, partly offset by third party contract manufacturing capacity constraints for the production of squalane and hemisqualane.
  • Ingredients demand growth is driven by a shift to sustainably sourced ingredients, away from crude oil supply sources. Current third-party capacity constraints are expected to be alleviated by Amyris' strategic investment in its large-scale fermentation plant in Barra Bonita, Brazil which Amyris began commissioning during Q2 2022. A video demonstrating the progress and scale of this project is available on Amyris' YouTube channel.

Q1 2022 Sales Revenue


Three Months
Ended March 31,

(In millions)

2022

2021

YoY%

Consumer

$34.6

$ 15.7

121%





Ingredients (excl. one offs)

10.8

12.5

-14%

R&D & Other servicess (excl one offs)

3.5

4.9

-29%

Technology Licenses

8.9

0.0

-

Technology Access

23.2

17.4

33%





Core

57.7

33.1

75%

Strategic Transactions/One-Off Items1

0.0

143.8

-100%





Reported Total

$57.7

$176.9

-67%





1Strategic Transactions/One-Off Items includes $143.6m DSM F&F transaction (Q1 2021) and $0.2m discontinued ingredients value share (Q1 2021)

Q1 2022 Financial Highlights

  • Core revenue of $57.7 million increased 75% compared to Q1 2021 revenue of $33.1 million. Q1 2022 core revenue included record consumer revenue of $34.6 million, or 121% versus the prior year quarter, and technology access revenue of $23.2 million, or 33% versus the prior year quarter.
  • Total revenue of $57.7 million decreased 67% versus the prior year quarter as Q1 2021 revenue included one-off $143.8 million revenue principally related to the strategic DSM F&F transaction.
  • Non-GAAP core gross margin of $26.8 million, or 46% of revenue, increased from $17.0 million, or 51% of revenue in Q1 2021. Q1 2022 reflects lower gross margin as a percentage of revenue due to a change in consumer brand and channel mix, higher ingredients input costs due to unfavorable contract manufacturing economics, and lower R&D collaboration revenue.
  • Cash operating expense of $117.1 million increased by $63.5 million compared to Q1 2021 due to an increase of $46.1 million in selling expense, $3.5 million in R&D expense, and $14.0 million in G&A. The increases were primarily driven by a combination of increased headcount (both organic and from acquisitions), brand investments in paid media and advertising, growth-driven consumer order fulfillment and shipping expense, increased activity at Barra Bonita ahead of commissioning, and comparatively low prior year travel expense due to COVID-19.
  • Adjusted EBITDA of -$107.5 million decreased $66.2 million, excluding the $143.8 million from the Q1 2021 strategic transaction, primarily due to higher operating expense, freight costs, including significant air shipping, and lower ingredients product gross margins, partly offset by increased consumer margin contribution.
  • GAAP net income/loss was significantly influenced by non-cash mark-to-market adjustments related to changes in the fair value of debt and derivatives. GAAP net loss of $107.3 million, or $0.34 per share, compared to a loss of $289.2 million, or $1.08 per share, in Q1 2021. Adjusted net loss of $115.2 million, or $0.37 per share, compared to adjusted net income of $94.5 million, or $0.35 per share in Q1 2021.
  • Cash at the end of Q1 2022 was $288 million, compared to $144 million at the end of Q1 2021, and $483 million at the end of 2021.

2022 Financial Outlook
Based on current consumer revenue performance, along with the launch of new brands and new in-house ingredients capacity from Barra Bonita taking full effect in the second half of the year, Amyris is reiterating its full year 2022 financial outlook and expects to be on the higher end of the stated range, including the following:

  • Consumer revenue is expected to grow more than 150% year-over-year.
  • Technology Access revenue is estimated to grow around 40% year-over-year. This growth includes an estimated $39 million from a 3-year earnout related to the DSM F&F transaction.

Conference Call
Amyris will host a conference call today at 9:00 am ET (6:00 am PT) to discuss its Q1 2022 financial results and provide a business and financial update.

Live audio webcast/conference call:

Webcast: please visit http://investors.amyris.com.
U.S. Dial-In Number: (844) 850-0551. International Dial-In Number: (412) 902-4203.

Please connect to the website or dial in to the conference call 15 minutes prior to the start of the call to avoid connection delays. If a participant will be listen-only, they are encouraged to listen via the webcast on Amyris' investor page.

A replay of the webcast will be available on the Investor Relations section of Amyris' website.

FINANCIAL RESULTS AND NON-GAAP INFORMATION

To supplement our financial results and guidance presented in accordance with U.S. generally accepted accounting principles (GAAP), we use certain non-GAAP financial measures that we believe are helpful in understanding our financial results. These non-GAAP financial 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' historical performance as well as comparisons to the operating results of other companies. Management believes these non-GAAP financial measures, when considered together with financial information prepared in accordance with GAAP, can enhance investors' and analysts' abilities to meaningfully compare our results from period to period, identify operating trends in our business, and track and model our financial performance. In addition, our management believes that these non-GAAP financial measures allow for greater transparency into the indicators used by management to understand and evaluate our business and make operating decisions.

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 GAAP in order to understand Amyris' 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.

Our Non-GAAP financial measures include the following:

Non-GAAP Gross Margin (Gross Margin) is calculated as GAAP revenue less non-GAAP cost of products sold divided by GAAP revenue. Non-GAAP cost of products sold excludes other costs/provisions, inventory lower of cost or net realizable value adjustments, excess capacity, manufacturing capacity fee adjustments, stock-based compensation expense, depreciation and amortization.

Non-GAAP Cash Operating Expense is calculated as GAAP Operating Expense minus non-cash stock-based compensation, depreciation and amortization, non-recurring transaction and acquisition expense, contract credit loss reserve, and R&D performance agreement termination.

EBITDA is calculated as GAAP net income (loss) less interest, expense, income tax expense, depreciation and amortization expense, deemed dividends to preferred stockholders, and loss allocated to participating securities.

Adjusted EBITDA is calculated as EBITDA less income attributable to noncontrolling interest, gain/loss from change in fair value of derivatives, gain/loss from changes in the fair value of debt, loss upon debt extinguishment, other income/expense, loss from investment in affiliate, inventory lower of cost or net realizable value adjustments, non-recurring transaction and acquisition expense, stock-based compensation expense, R&D performance agreement termination, manufacturing capacity fee adjustment and contract asset credit loss reserve.

Adjusted net income (loss) is calculated as GAAP net income/loss excluding stock-based compensation expense, gain/loss from change in fair value of derivatives, gain/ loss from changes in the fair value of debt, losses upon debt extinguishment, income/loss attributable to noncontrolling interest, loss allocated to participating securities, inventory lower of cost or net realizable value adjustments, R&D performance agreement termination, manufacturing capacity fee adjustments, non-recurring transaction and acquisition expense, other income/expense, and gain/loss from investment in affiliate.

Adjusted EPS is calculated by dividing adjusted net income (loss) by the weighted average shares, basic outstanding for the period.

About Amyris
Amyris (Nasdaq: AMRS) is a leading synthetic biotechnology company, transitioning the Clean Health & Beauty and Flavors & Fragrances markets to sustainable ingredients through fermentation and the company's proprietary Lab-to-MarketTM technology platform. This Amyris platform leverages state-of-the-art machine learning, robotics and artificial intelligence, enabling the company to rapidly bring new innovation to market at commercial scale. Amyris ingredients are included in over 20,000 products from the world's top brands, reaching more than 300 million consumers. Amyris also owns and operates a family of consumer brands that is constantly evolving to meet the growing demand for sustainable, effective and accessible products. For more information, please visit http://www.amyris.com.

Amyris, the Amyris logo, Biossance, JVN, Lab-to-Market, OLIKA, Pipette, Purecane, and Rose Inc. are trademarks or registered trademarks of Amyris, Inc. or its subsidiaries in the U.S. and/or other countries.

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 Amyris' financial outlook for 2022; Amyris' 2022 goals and future milestones, including planned launches of new brands, the completion of its Barra Bonita plant, planned expansion of retail store and distribution arrangements, and the timing thereof; Amyris' expectations regarding the benefits of its investments in its Barra Bonita plant, including improvements in gross margin and mitigation of third party capacity constraints; Amyris' expectations regarding revenue contribution of its consumer brands during 2022; and Amyris' plans to further optimize its portfolio and potentially license marketing rights of two ingredients which could deliver over $250 million of proceeds by year end. 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' liquidity and ability to fund operating and capital expenses, risks related to its financing activities, risks related to potential delays or failures in completing and integrating planned acquisitions, risks related to potential delays or failures in development, regulatory approval, launch, production and commercialization of products, risks related to the COVID-19 pandemic and any other geopolitical events, including Russia's invasion of Ukraine, resulting in global economic, financial and supply chain disruptions that may negatively impact Amyris' business operations and financial results or cause market volatility, risks related to Amyris' reliance on third parties particularly in the supply chain, 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.

Financial Tables Follow

Amyris, Inc.



CONDENSED CONSOLIDATED BALANCE SHEETS






(In thousands

March 31, 2022

December 31, 2021

Assets



Current assets:



Cash and cash equivalents

$ 287,886

$ 483,462

Restricted cash

174

199

Accounts receivable, net

37,400

37,074

Accounts receivable - related party, net

7,279

5,667

Contract assets

3,883

4,227

Contract assets - related party

8,816

-

Inventories

82,296

75,070

Prepaid expenses and other current assets

43,202

33,513

Total current assets

470,936

639,212

Property, plant and equipment, net

125,264

72,835

Restricted cash, noncurrent

4,651

4,651

Recoverable taxes from Brazilian government entities

22,572

16,740

Right-of-use assets under financing leases, net

457

7,342

Right-of-use assets under operating leases, net

58,937

32,428

Goodwill

136,005

131,259

Intangible assets, net

56,094

39,265

Other assets

23,534

10,566

Total assets

$ 898,450

$ 954,298

Liabilities, Mezzanine Equity and Stockholders' Deficit



Current liabilities:



Accounts payable

$ 88,292

$ 79,666

Accrued and other current liabilities

80,554

71,457

Financing lease liabilities

12

140

Operating lease liabilities

8,120

7,689

Contract liabilities

1,554

2,530

Debt, current portion

1,055

896

Related party debt, current portion

86,630

107,427

Total current liabilities

266,217

269,805

Long-term debt, net of current portion

672,005

309,061

Financing lease liabilities, net of current portion

58

61

Operating lease liabilities, net of current portion

37,059

19,829

Derivative liabilities

5,247

7,062

Acquisition-related contingent consideration

40,251

64,762

Other noncurrent liabilities

3,490

4,510

Total liabilities

1,024,327

675,090

Commitments and contingencies



Mezzanine equity:



Contingently redeemable common stock

5,000

5,000

Redeemable noncontrolling interest

31,437

28,520

Stockholders' (deficit) equity:



Common stock

32

31

Additional paid-in capital

2,337,634

2,656,838

Accumulated other comprehensive loss

(37,483)

(52,769)

Accumulated deficit

(2,458,973)

(2,357,661)

Total Amyris, Inc. stockholders' (deficit) equity

(158,790)

246,439

Noncontrolling interest

(3,524)

(751)

Total stockholders' (deficit) equity

(162,314)

245,688

Total liabilities, mezzanine equity and stockholders' (deficit) equity

$ 898,450

$ 954,298

Amyris, Inc.



CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)




Three Months Ended March 31,

(In thousands, except shares and per share amounts)

2022

2021

Revenue:



Renewable products

$ 43,465

$ 28,179

Licenses and royalties

9,313

143,800

Collaborations, grants and other

4,931

4,880

Total revenue

57,709

176,859

Cost and operating expenses:



Cost of products sold(1)

48,995

22,659

Research and development(1)

26,358

23,332

Sales, general and administrative(1)

106,916

37,922

Total cost and operating expenses

182,269

83,913

(Loss) income from operations

(124,560)

92,946

Other income (expense):



Interest expense

(5,263)

(5,813)

Gain (loss) from change in fair value of derivative instruments

1,815

(22,745)

Gain (loss) from change in fair value of debt

20,796

(326,785)

Loss upon extinguishment of debt

-

(27,313)

Other expense, net

(3,052)

(678)

Total other income (expense), net

14,296

(383,334)

Loss before income taxes and loss from investment in affiliate

(110,264)

(290,388)

Provision for income taxes

820

(55)

(Loss) gain from investment in affiliate

(789)

392

Net loss

(110,233)

(290,051)

Less: loss (income) attributable to noncontrolling interest

2,928

(1,200)

Net loss attributable to Amyris, Inc.

(107,305)

(291,251)

Less: loss allocated to participating securities

-

2,099

Net loss attributable to Amyris, Inc. common stockholders, basic

$ (107,305)

$ (289,152)




Weighted-average shares of common stock outstanding used in computing income (loss) per share of common stock, basic

312,896,452

267,733,555

Loss per share attributable to common stockholders, basic

$ (0.34)

$ (1.08)




Weighted-average shares of common stock outstanding used in computing loss per share of common stock, diluted

323,711,682

267,733,555

Loss per share attributable to common stockholders, diluted

$ (0.37)

$ (1.08)




(1) Includes stock-based compensation expense as follows:



Cost of products sold

$ 78

$ 63

Research and development

1,617

1,062

Sales, general and administrative

9,893

3,156


$ 11,588

$ 4,281

Amyris, Inc.



RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION
(Unaudited)




Three Months Ended March 31,

(In thousands, except per share data)

2022

2021

Net loss attributable to Amyris, Inc. common stockholders - Basic (GAAP)

$ (107,305)

$ (289,152)

Non-GAAP adjustments:



Loss allocated to participating securities

-

(2,099)

Manufacturing capacity fee adjustment

1,412

1,482

Inventory lower-of-cost-or-net realizable value adjustment

(966)

(161)

R&D Performance Agreement termination

-

1,850

Hand sanitizer write-off

(94)

-

M&A transaction legal expense

1,835

-

Stock-based compensation expense

11,588

4,281

(Gain) loss from change in fair value of derivative instruments

(1,815)

22,745

(Gain) loss from change in fair value of debt

(20,796)

326,785

(Gain) loss upon extinguishment of debt

-

27,313

Income (loss) attributable to noncontrolling interest

(2,928)

1,200

Other expense, net, and loss (gain) from investment in affiliate, net

3,841

286

Net (loss) income attributable to Amyris, Inc. common stockholders (non-GAAP)

$ (115,228)

$ 94,530




Weighted-average shares outstanding



Weighted-average shares of common stock outstanding used in computing loss per share attributable to Amyris, Inc. common stockholders, basic (GAAP and non-GAAP)

312,896,452

267,733,555




Earnings (loss) per share attributable to Amyris, Inc. common stockholders - Basic (GAAP)

$ (0.34)

$ (1.08)

Non-GAAP adjustments:



Loss allocated to participating securities

-

(0.01)

Manufacturing capacity fee adjustment

0.00

0.01

Inventory lower-of-cost-or-net realizable value adjustment

(0.00)

(0.00)

R&D Performance Agreement termination

-

0.01

Hand sanitizer write-off

(0.00)

-

M&A transaction legal expense

0.01

-

Stock-based compensation expense

0.04

0.02

(Gain) loss from change in fair value of derivative instruments

(0.01)

0.08

(Gain) loss from change in fair value of debt

(0.07)

1.22

(Gain) loss upon extinguishment of debt

-

0.10

Income (loss) attributable to noncontrolling interest

(0.01)

0.00

Other expense, net, and loss (gain) from investment in affiliate, net

0.01

0.00

Loss per share attributable to Amyris, Inc. common stockholders (non-GAAP)(1)

$ (0.37)

$ 0.35

(1) Amounts may not sum due to rounding.

-

-


Three Months Ended March 31,

ADJUSTED EBITDA

2022

2021

GAAP net loss attributable to Amyris, Inc. common stockholders - Basic

$ (107,305)

$ (289,152)

Interest expense

5,263

5,813

Income taxes

(820)

55

Depreciation and amortization

3,292

2,114

Loss allocated to participating securities

-

(2,099)

EBITDA

(99,570)

(283,269)

Manufacturing capacity fee adjustment

1,412

1,482

Inventory lower-of-cost-or-net realizable value adjustment

(966)

(161)

Hand sanitizer write-off

(94)

-

R&D Performance Agreement termination

-

1,850

M&A transaction legal expense

1,835

-

Stock-based compensation expense

11,588

4,281

(Gain) loss from change in fair value of derivative instruments and debt, (gain) loss upon extinguishment of debt, other (income) expense, and (gain) loss from investment in affiliate

(18,770)

377,129

(Loss) income attributable to noncontrolling interest

(2,928)

1,200

Adjusted EBITDA

$ (107,493)

$ 102,512

Amyris, Inc.



RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION
(Unaudited)




Three Months Ended March 31,

(In thousands)

2022

2021

Revenue (GAAP and non-GAAP)



Renewable products

$ 43,465

$ 28,179

Licenses and royalties

9,313

143,800

Collaborations, grants and other

4,931

4,880

Revenue (GAAP and non-GAAP)

$ 57,709

$ 176,859




Cost of products sold (GAAP)

$ 48,995

$ 22,659

Other costs and provisions

(16,523)

(4,473)

Manufacturing capacity fee adjustment

(1,412)

(1,482)

Hand sanitizer write-off

94

-

Excess capacity

(663)

(205)

Inventory lower-of-cost-or-net realizable value adjustment

966

161

Stock-based compensation expense

(78)

(63)

Depreciation and amortization

(490)

(514)

Cost of products sold (non-GAAP)

$ 30,889

$ 16,083




Adjusted gross profit (non-GAAP)

$ 26,820

$ 160,776

Gross margin %

46%

91%




Research and development expense (GAAP)

$ 26,358

$ 23,332

Stock-based compensation expense

(1,617)

(1,062)

Depreciation and amortization

(1,482)

(1,321)

R&D performance agreement termination

-

(1,850)

Research and development expense (non-GAAP)

$ 23,259

$ 19,099




Sales, general and administrative expense (GAAP)

$ 106,916

$ 37,922

Stock-based compensation expense

(9,893)

(3,156)

Depreciation and amortization

(1,320)

(279)

M&A transaction legal expense

(1,835)

-

Sales, general and administrative expense (non-GAAP)

$ 93,868

$ 34,487




Cash operating expense

$ 117,127

$ 53,586

Cision View original content:https://www.prnewswire.com/news-releases/amyris-inc-reports-first-quarter-2022-financial-results-301543427.html

SOURCE Amyris, Inc.

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