BioAmber Reports Second Quarter 2015 Financial Results

Aug 4, 2015

MONTREAL, Aug. 4, 2015 /CNW Telbec/ - BioAmber Inc. (NYSE: BIOA), a leader in renewable materials today announced its financial results for the quarter ending June 30, 2015. Highlights included:

  • The Sarnia plant achieved mechanical completion in June 2015
  • The final cost of the Sarnia plant is projected to be $141.5 million or $4.0 million above the high end of the estimate communicated at the onset of the project ($125 million +/- 10%)
  • The company announced commercial collaborations in two targeted industry segments; with Bayer MaterialScience for textiles and with Flokser and DuPont Tate & Lyle for synthetic leather
  • BioAmber raised $35.1 million in gross proceeds through a public offering of common stock

"Completing construction was a major milestone for the Company," said Jean-Francois Huc, BioAmber's Chief Executive Officer. "Commissioning is progressing well and we expect to be in commercial operation this quarter. We are seeing an acceleration of bio-succinic acid's use in polyurethanes, paints and coatings, with a growing number of customer product launches coinciding with our Sarnia plant coming into production" he added.

Sarnia Highlights

  • Ongoing commissioning and start up activities progressed well during the quarter, with functioning utilities throughout the plant and sterility testing successfully completed
  • An opening ceremony on August 6th 2015 is scheduled to include Ontario's Deputy Premier, other elected officials and representatives of government agencies that supported Sarnia funding
  • The plant remains on schedule to be in commercial operation in Q3 2015

Other Business Highlights

  • Bayer MaterialScience, one of the world's largest polymer companies, began commercializing a new range of polyurethanes for textiles that incorporated bio-succinic acid supplied by BioAmber
  • Flokser, a global leader in leather and suede fabrics, launched an innovative synthetic leather fabric using bio-based materials supplied by DuPont Tate & Lyle BioProducts and BioAmber.

Financial Highlights

  • Net cash burn for operating expenses continued to be below $2.0 million per month in Q2 2015, after excluding the one-time activities related to Sarnia commissioning
  • Cash on hand was $48.7 million as of June 30,2015
  • The Company completed a public offering of 3,900,000 shares of common stock at a price of $9.00 per share, raising gross proceeds of $35.1 million
  • The Company achieved its Sarnia construction milestones as validated by an independent engineer and as a result received CDN$20 million in loan proceeds from a consortium of lenders including Export Development Canada, Farm Credit Corporation and Comerica Bank

Second Quarter 2015 Financial Results

Revenues for the quarter ended June 30, 2015 decreased to $342,000 from $415,000 for the same period in 2014. The decrease was primarily due to a reduction in average selling price partially offset by an increase in volume sold.

Gross loss in the quarter ended June 30, 2015 decreased to $410,000 from $1.8 million for the same period in 2014. This was driven primarily by a $1.3 million reduction in the inventory reserves taken this quarter compared to the same period last year.

Research and development expenses for the quarter ended June 30, 2015 increased to $5.0 million from $4.3 million for the same period in 2014. The increase was primarily due to an increase in non-recurring expenses related to the commissioning and start-up of the Sarnia plant. This was partially offset by stock-option compensation expenses related to stock option cancellations in the second quarter of 2014, which did not occur in 2015.

Sales and marketing expenses for the quarter ended June 30, 2015 decreased to $1.1 million from $1.7 million for the same period in 2014. This was driven by stock-option compensation expenses related to stock option cancellations in the second quarter of 2014, which did not occur in 2015.

General and administrative expenses for the quarter ended June 30, 2015 remained stable at $3.0 million compared to $2.9 million for the same period last year.

Other operating expenses increased $1.8 million for the quarter ended June 30, 2015 as compared to the same period in 2014. The Company disclosed in May 2015 that it had terminated its license agreement with DuPont following its decision to pursue BDO commercialization with technology it licensed from JM Davey. As a result, the Company recorded a non-cash write down of the intangible asset in the amount of $1.1 million. In addition the Company had $200,000 foreign exchange loss for the quarter ended June 30, 2015 as compared to a $400,000 gain for the same period in 2014. Financial charges were stable at $3.8 million compared to $3.9 million for the same period last year.

The Company recorded a net loss attributable to BioAmber Inc. shareholders of $14.0 million, or a loss of $0.58 per share for the quarter ended June 30, 2015, compared to a net loss of $14.0 million, or a loss of $0.75 per share, for the same period in 2014.

The Adjusted Net Loss Attributable to BioAmber Inc. Shareholders for the quarter ended June 30, 2015 was $9.5 million, or a loss of $0.39 per share, compared to an Adjusted Net Loss Attributable to BioAmber Inc. Shareholders of $7.5 million, or a loss of $0.40 per share, for the same period in 2014.  Adjusted Net Loss Attributable to BioAmber Inc. Shareholders is a non-GAAP financial metric that excludes, for the quarter ended June 30, 2015, the impact of the change in fair value of the warrants issued in connection with the IPO, the non-cash inventory reserve expense and the intangible asset impairment related to the termination of a technology license. The Adjusted Net Loss Attributable to BioAmber Inc. Shareholders is a non-GAAP financial metric that excludes, for the quarter ended June 30, 2014, the impact of the change in fair value of the warrants issued in connection with the IPO, the non-cash inventory reserve expense and the non-cash expense resulting from the cancellation of certain employee stock options. Please refer to Annex A: "Non-GAAP Financial Information—Adjusted Net Loss Attributable to BioAmber Inc. Shareholders" for more information regarding this non-GAAP financial metric.

Webcast and Conference Call Information

BioAmber will discuss these results on a live audio webcast, which will be available on the Internet to investors, members of the news media and the general public at 4:30 p.m. Eastern Time on August 4, 2015. To access the webcast of the conference call, go to the company's website, www.bio-amber.com. Audio of the teleconference is also available by dialing: 

North American callers:  +1 (888) 390-0546

International callers: (416) 764-8688

Teleconference replays will be available through August 11, 2015:
Domestic: 1-888-390-0541

International: 416-764-8677

Passcode: 431208 #

A replay of the webcast will also be available approximately two hours after the conclusion of the live webcast on BioAmber's website, for a period of 30 days.

About BioAmber

BioAmber (NYSE: BIOA) is a renewable materials company. Its innovative technology platform combines biotechnology and catalysis to convert renewable feedstock into building block materials that are used in a wide variety of everyday products including plastics, paints, textiles, food additives and personal care products. For more information visit www.bio-amber.com

Forward-Looking Statements

This press release contains forward-looking statements, including statements related to the projected capital costs of the Sarnia facility, the commissioning and start up schedule, the beginning of our commercial operations and future sales for our Bio-SA facility including sales to Bayer MaterialScience and Flokser. All statements other than statements of historical fact contained in this press release are forward-looking statements. These statements often include words such as "believe," "expect," "anticipate," "intend," "plan," "estimate," "seek," "will," "may" or similar expressions. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond BioAmber's control. BioAmber's actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors. Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, it cannot guarantee that the events and circumstances reflected in the forward-looking statements will be achieved or occur and the timing of events and circumstances and actual results could differ materially from those projected in the forward-looking statements. Accordingly, you should not place undue reliance on these forward-looking statements. All such statements speak only as of the date made, and the Company undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise. For additional disclosure regarding these and other risks faced by BioAmber, see disclosures contained in BioAmber's public filings with the SEC including, the "Risk Factors" section of BioAmber's most recent Annual Report on Form 10-K.

 

 

BioAmber Inc.

Consolidated Statements of Operations

(unaudited, in thousands, except for shares)

             
     

Three Months Ended
June 30,

     

2015

   

2014

     

$

   

$

Product sales

   

342

   

415

Cost of goods sold

   

752

   

2,251

Gross loss

   

(410)

   

(1,836)

             

Operating expenses

           
 

Research and development

   

4,960

   

4,259

 

Sales and marketing

   

1,124

   

1,737

 

General and administrative

   

2,964

   

2,865

 

Depreciation and amortization

   

93

   

60

 

Impairment loss

   

1,141

   

 

Foreign exchange loss (gain)

   

202

   

(379)

Operating Expenses

   

10,484

   

8,542

Operating loss

   

10,894

   

10,378

             

Amortization of deferred financing costs

   

92

   

72

Financial charges (income), net

   

3,829

   

3,871

Other expense (income),net

   

   

(185)

Loss before income taxes

   

14,815

   

14,136

Income taxes

   

11

   

9

Net Loss

   

14,826

   

14,145

             

Net Loss attributable to:

           
   

BioAmber Inc. shareholders

   

14,026

   

13,992

   

Non-controlling interest

   

800

   

153

     

14,826

   

14,145

Net Loss per share attributable to

           
   

BioAmber Inc. shareholders - basic

 

$

0.58

 

$

0.75

             

Weighted-average common shares

           
   

outstanding- basic

   

24,283

   

18,575

 

 

BioAmber Inc.

Consolidated Balance Sheet Information

(unaudited, in thousands)

         
   

As of
June 30,
2015

 

As of
December 31,
2014

Assets

 

$

 

$

Current assets:

       

Cash

 

48,665

 

51,043

Accounts receivable

 

407

 

477

Inventories

 

1,312

 

1,802

Prepaid expenses and other current assets

 

4,346

 

3,770

 

Total current assets

 

54,730

 

57,092

Property and equipment, net

 

126,963

 

88,665

Investment in equity method and cost investments

 

448

 

35

Intangible assets including goodwill

 

5,938

 

4,957

Restricted cash

 

607

 

647

Deferred financing costs

 

1,387

 

1,044

 

Total assets

 

190,073

 

152,440

         

Liabilities

       

Current Liabilities:

       

Accounts payable and accrued liabilities

 

17,171

 

17,443

Income taxes payable

 

204

 

204

Deferred grants

 

5,163

 

2,275

Short-term portion of long term debt

 

12,025

 

2,978

 

Total current liabilities

 

34,563

 

22,900

Long-term debt

 

46,187

 

34,653

Warrants financial liability

 

15,776

 

13,040

Other long term liabilities

 

459

 

128

   

Total liabilities

 

96,985

 

70,721

Redeemable non-controlling interest

 

25,359

 

24,190

Shareholders' Equity

 

67,729

 

57,529

Total Liabilities and Shareholders' Equity

 

190,073

 

152,440

 

BioAmber Inc.

Consolidated Statements of Cash Flows

(unaudited, in thousands)

         
   

Six Months ended

June 30,

   

2015

 

2014

   

$

 

$

Operating Activities

       

Net Loss

 

(23,794)

 

(34,097)

 

Adjustments to reconcile net loss to cash:

       
   

Stock-based compensation

 

3,013

 

4,522

   

Depreciation and amortization

 

165

 

120

   

Warrant revaluation

 

2,736

 

14,640

   

Accretion of end of term charge on long-term debt

 

344

 

474

   

Amortization of deferred financing costs

 

158

 

145

   

Impairment loss

 

1,141

 

   

Change in working capital

 

642

 

6,223

   

Other

 

24

 

22

Net cash used in operating activities

 

(15,571)

 

(7,951)

         

Investing Activities

       
 

Acquisition of property and equipment

 

(52,433)

 

(32,728)

Change in restricted cash

 

 

(678)

 

Investment in equity method and cost investments

 

(413)

 

675

 

Net cash used in investing activity

 

(52,846)

 

(32,731)

       

Financing Activities

       

Deferred financing costs

 

(490)

 

(561)

Issuance of long-term debt

 

21,967

 

2,191

Government grants

 

7,947

 

792

Net proceeds from issuance of shares

 

37,416

 

8,265

 

Net cash provided by financing activities

 

66,840

 

10,687

Foreign exchange impact on cash

 

(801)

 

571

Decrease in cash

 

(2,378)

 

(29,424)

Cash, beginning of period

 

51,043

 

83,728

Cash, end of period

 

48,665

 

54,304

 

ANNEX A: Non-GAAP Financial Information

Adjusted Net Loss Attributable to BioAmber Inc. Shareholders

The Adjusted Net Loss Attributable to BioAmber Inc. Shareholders for quarter ended June 30, 2015 was $9.5 million, or a loss of $0.39 per share, compared to an Adjusted Net Loss Attributable to BioAmber Inc. Shareholders of $7.5 million, or a loss of $0.40 per share, for the same period in 2014.  Adjusted Net Loss Attributable to BioAmber Inc. Shareholders is a non-GAAP financial metric that excludes, for the quarter ended June 30, 2015, the impact of the change in fair value of the warrants issued in connection with the IPO, the non-cash inventory reserve expense and the intangible asset impairment related to DuPont technology. The Adjusted Net Loss Attributable to BioAmber Inc. Shareholders is a non-GAAP financial metric that excludes, for the quarter ended June 30, 2014, the impact of the change in fair value of the warrants issued in connection with the IPO, the non-cash inventory reserve expense and the non-cash expense resulting from the cancellation of certain employee stock options.

BioAmber presents Adjusted Net Loss Attributable to BioAmber Inc. Shareholders as a supplemental measure of BioAmber's performance. The above items are excluded from BioAmber's Adjusted Net Loss Attributable to BioAmber Inc. Shareholders because these items are non-cash in nature, or because the amount and timing of these items are either unpredictable or not driven by current operating results and renders comparisons with prior periods and competitors less meaningful.  BioAmber believes Adjusted Net Loss Attributable to BioAmber Inc. Shareholders is a useful measure for analysts and investors to evaluate BioAmber's future ongoing performance as this measure allows for a more meaningful comparison of BioAmber's projected cash earnings and performance with its historical results from prior periods and to the results of its competitors.  Adjusted Net Loss Attributable to BioAmber Inc. Shareholders corresponds more closely to the cash operating income generated from BioAmber's business and allows investors to gain an understanding of the factors and trends affecting the ongoing cash earnings capabilities of BioAmber's business.

Adjusted Net Loss Attributable to BioAmber Inc. Shareholders has certain limitations in that it does not take into account the impact of certain expenses to BioAmber's consolidated statements of operations.  In evaluating Adjusted Net Loss Attributable to BioAmber Inc. Shareholders, you should be aware that in the future BioAmber may incur expenses similar to the adjustments in this presentation. BioAmber's presentation of Adjusted Net Loss Attributable to BioAmber Inc. Shareholders should not be construed as an inference that BioAmber's future results will be unaffected by unusual or non-recurring items. Adjusted Net Loss Attributable to BioAmber Inc. Shareholders is not a measurement of BioAmber's financial performance under GAAP and should not be considered as an alternative to net income, operating income or any other performance measures derived in accordance with GAAP.

 

BioAmber Inc.

Non-GAAP Financial Information

(unaudited, in thousands)

       
 

Three Months Ended 
June 30,

 

2015

 

2014

 

$

 

$

Net loss attributable to BioAmber Inc.  Shareholders

14,026

 

13,993

Deduct:

     
 

Warrants revaluation

3,056

 

3,040

 

Intangible impairment

1,141

 

 

Inventory reserve

300

 

1,635

 

Additional charge for cancellation of stock options

 

1,853

Adjusted Net Loss attributable to

     
 

BioAmber Inc. shareholders

9,529

 

7,465

       

Adjusted net loss per share attributable to

     
 

BioAmber Inc. shareholders - basic

0.39

 

0.40

       

Weighted-average of common shares

     
 

outstanding- basic

24,283

 

18,575

 

SOURCE BioAmber Inc.

For further information: BioAmber Investor Contact: Mike Hartmann, Executive Vice President, 514-844-8000 Ext. 120


print email rss