MONTREAL, Nov. 7, 2017 /PRNewswire/ - BioAmber Inc.
(NYSE: BIOA) (TSX: BIOA) – a leader in renewable materials
today announced operational and financial results for the three
months ended September 30, 2017.
Highlights:
- Sales of bio-succinic acid were $3.3m, compared to $3.7m in Q3 2016. Nine months sales ended
September 30, 2017 were $9.5m compared to nine month sales ended
September 30, 2016 of $7.6m. An increase of 25% year over year.
- On August 1, 2017, BioAmber
entered into a definitive agreement to buy back Mitsui & Co.,
Ltd.'s entire minority equity stake in the Sarnia manufacturing joint venture. BioAmber
now owns 100% of the BioAmber Sarnia production facility.
- On August 11, 2017, BioAmber
closed an $11 million offering of
stock and warrants.
- On September 14, 2017, BioAmber
announced the appointment of Mr. Richard
Eno, as its new Chief Executive Officer.
- BioAmber has agreed to extend the pre-commercialization period
with CJCJ through to the end of 2017.
- As of October 12, 2017, BioAmber
celebrated an outstanding Safety Milestone of 5 years without a
Lost Time industrial accident. This translates to over 1,800 days
without an injury.
"I am excited to join BioAmber at this stage of
development. Our technology is proven, we have identified
numerous opportunities to drive down our variable costs, and our
customer base and application pattern continues to expand," stated
Richard Eno, BioAmber's Chief
Executive Officer. "I look forward to leading the company as we
grow our sales from Sarnia
creating a foundation for long term profitable growth."
Q3 2017 Financial Results
Revenues for the quarter ended September
30, 2017 were $3.3 million, a
decrease of 10% over the same quarter last year, mainly driven
by a decrease in succinic acid volume, slightly offset by an
increase in average selling price.
Cost of goods sold increased from $5
million to $6 million for the
three months ended September 30, 2017
compared to the three months ended September
30, 2016, driven primarily by an increase in production
volume and an increase in royalties.
General and administrative expenses increased by $0.6 million to $2.3
million for the three months ended September 30, 2017, as compared to $1.8 million for the three months ended
September 30, 2016. This is mainly
due to recruiting fees associated with the hiring of a new CEO and
an increase in legal fees. Excluding these and other non-recurring
charges, general and administrative expenses were flat compared to
last year.
Research and development expenses decreased by $0.6 million to $1.2
million for the three months ended September 30, 2017, as compared to $1.8 million for the three months ended
September 30, 2016, primarily
attributable to a reduction in the R&D efforts required to
support the Sarnia facility.
Financial charges (income), net decreased to an income of
$0.9 million for the three months
ended September 30, 2017 as compared
to a charge of $3.2 million for the
three months ended September 30,
2016. This variation of $4.1
million is mainly due to the non-cash mark-to-market
adjustment change of $3.5 million on
all outstanding warrants. It is also attributable to a
decrease in interest and end of term charges on long-term debt due
to the full repayment of the Bridging Loan in January 2017. This decrease is partially offset
by the issuance costs associated with the January 2017 and the August 2017 Warrants classified as
liabilities.
The Company recorded a net loss attributable to BioAmber Inc.
shareholders of $7.0 million, or a
loss of $0.16 per share, for the
quarter ended September 30, 2017,
compared to a net loss of $6.2
million, or a loss of $0.21
per share, for the same period last year.
The Adjusted Net Loss Attributable to BioAmber Inc. Shareholders
for the quarter ended September 30,
2017 was $9.4 million, or a
loss of $0.21 per share, compared to
an Adjusted Net Loss Attributable to BioAmber Inc. Shareholders of
$7.4 million, or a loss of
$0.26 per share, for the three months
ended September 30, 2016.
Adjusted Net Loss Attributable to BioAmber Inc. Shareholders is a
non-GAAP financial metric that excludes the impact of the change in
fair value of the IPO, Legacy, January 207 and August 2017 Warrants and grant revenue.
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.
About BioAmber
BioAmber (NYSE: BIOA, TSX: 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, which are subject to
substantial risks, uncertainties and assumptions. These statements
often include words such as "believe," "expect," "anticipate,"
"intend," "plan," "estimate," "seek," "will," "may" or similar
expressions. Although we believe that the expectations reflected in
the forward-looking statements are reasonable, we 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
we undertake 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 Annual Report on Form 10-K and
the most recent quarterly report on Form 10-Q.
BioAmber
Inc.
|
|
|
|
Consolidated
Statements of Operations
|
|
|
|
(unaudited, in
thousands, except for per share data)
|
|
|
|
|
|
|
Three Months
Ended
September
30,
|
|
|
|
2017
|
|
2016
|
|
|
|
$
|
|
$
|
|
|
|
|
|
|
Product
sales
|
3,301
|
|
3,661
|
|
|
|
|
Cost of goods sold
excluding depreciation and amortization
|
5,980
|
|
5,035
|
|
Operating
expenses
|
|
|
|
|
|
General and
administrative
|
2,321
|
|
1,767
|
|
|
Research and
development, net
|
1,187
|
|
1,773
|
|
|
Sales and
marketing
|
458
|
|
479
|
|
|
Depreciation of
property and equipment and amortization of intangible
assets
|
1,328
|
|
1,208
|
|
|
Foreign exchange loss
(gain)
|
103
|
|
(29)
|
Operating
expenses
|
5,397
|
|
5,198
|
|
|
|
|
|
|
|
Operating
loss
|
(8,076)
|
|
(6,572)
|
|
Amortization of debt
discounts
|
702
|
|
1,038
|
|
Financial charges
(income), net
|
(924)
|
|
3,190
|
|
Grant
income
|
—
|
|
(4,047)
|
|
Other income,
net
|
—
|
|
(34)
|
Loss before income
taxes
|
(7,854)
|
|
(6,719)
|
Income
taxes
|
(21)
|
|
—
|
Net loss
|
(7,833)
|
|
(6,719)
|
|
Net loss attributable
to:
|
|
|
|
|
|
BioAmber Inc.
shareholders
|
(7,050)
|
|
(6,158)
|
|
|
Non-controlling
interest
|
(783)
|
|
(561)
|
|
|
|
(7,833)
|
|
(6,719)
|
|
|
|
|
|
|
Basic net loss per
share attributable to BioAmber Inc. shareholders
|
(0.16)
|
|
(0.21)
|
Weighted-average
number of common shares outstanding - basic
|
45,274
|
|
28,811
|
BioAmber
Inc.
|
|
|
|
Consolidated
Balance Sheet Information
|
|
|
|
(unaudited, in
thousands)
|
|
|
|
|
|
As of
September 30,
2017
|
|
As of
December 31,
2016
|
|
$
|
|
$
|
Assets
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
10,228
|
|
16,160
|
Accounts
receivable
|
2,536
|
|
987
|
Inventories
|
6,214
|
|
4,498
|
Prepaid expenses and
other current assets
|
1,349
|
|
880
|
Restricted
cash
|
—
|
|
8,897
|
|
Total current
assets
|
20,327
|
|
31,422
|
Property and
equipment, net
|
127,813
|
|
121,628
|
Investment in cost
and equity method investment
|
447
|
|
447
|
Intangible assets
including goodwill
|
6,603
|
|
6,752
|
Restricted
cash
|
301
|
|
558
|
Deferred financing
costs
|
24
|
|
524
|
|
Total
assets
|
155,515
|
|
161,331
|
|
|
|
|
|
Liabilities
|
|
|
|
Current
Liabilities:
|
|
|
|
Accounts payable and
accrued liabilities
|
6,845
|
|
6,022
|
Income taxes
payable
|
190
|
|
115
|
Deferred
revenue
|
—
|
|
1,372
|
Warrants financial
liability
|
—
|
|
14,497
|
Short-term portion of
long term debt
|
11,789
|
|
23,299
|
|
Total current
liabilities
|
18,824
|
|
45,305
|
Long-term
debt
|
25,409
|
|
29,032
|
Warrants financial
liability
|
4,253
|
|
740
|
Other long-term
liabilities
|
241
|
|
247
|
|
Total
liabilities
|
48,727
|
|
75,324
|
Redeemable
non-controlling interest
|
—
|
|
37,516
|
Shareholders'
Equity
|
106,788
|
|
48,491
|
Total Liabilities
and Shareholders' Equity
|
155,515
|
|
161,331
|
BioAmber
Inc.
|
|
|
|
Consolidated
Statements of Cash Flows
|
|
|
|
(unaudited, in
thousands)
|
|
|
|
|
|
|
Nine Months
ended
September 30,
|
|
|
|
2017
|
|
2016
|
|
|
|
$
|
|
$
|
Operating
Activities
|
|
|
|
|
Net loss
|
(18,117)
|
|
(16,322)
|
|
|
Adjustments to
reconcile net loss to cash:
|
|
|
|
|
|
Stock-based
compensation
|
4,118
|
|
2,686
|
|
|
Depreciation and
amortization
|
3,778
|
|
3,600
|
|
|
Loss on disposals of
property and equipment
|
32
|
|
133
|
|
|
Amortization of debt
discounts
|
1,944
|
|
2,478
|
|
|
Other long-term
liabilities
|
(25)
|
|
(17)
|
|
|
Financial charges
(income), net
|
(12,345)
|
|
(8,103)
|
|
|
Gain on debt
extinguishment
|
(746)
|
|
—
|
|
|
Grant
income
|
—
|
|
(4,047)
|
|
|
Write-off of deferred financing
costs
|
500
|
|
—
|
|
|
Changes in operating
assets and liabilities
|
(3,676)
|
|
(13,509)
|
|
Net cash used in
operating activities
|
(24,537)
|
|
(33,101)
|
|
|
|
|
|
|
Investing
activities
|
|
|
|
|
|
Acquisition of
property and equipment and intangible asset, net of
disposals
|
(722)
|
|
(540)
|
|
Net cash used in
investing activities
|
(722)
|
|
(540)
|
|
|
|
|
|
|
Financing
activities
|
|
|
|
|
|
Deferred financing
costs
|
(81)
|
|
(1,369)
|
|
|
Issuance of long-term
debt
|
—
|
|
26,929
|
|
|
Repayment of
long-term debt
|
(19,009)
|
|
(14,081)
|
|
|
Government
grants
|
—
|
|
1,108
|
|
|
Net proceeds from
issuance of common shares
|
38,145
|
|
11,918
|
|
|
Proceeds from
issuance of shares by a subsidiary
|
—
|
|
17,726
|
|
Net cash provided
provided by financing activities
|
19,055
|
|
42,231
|
Foreign exchange
impact on cash
|
272
|
|
376
|
(Decrease) Increase
in cash and cash equivalents
|
(5,932)
|
|
8,966
|
Cash and cash
equivalents, beginning of period
|
16,160
|
|
6,974
|
Cash and cash
equivalents, end of period
|
10,228
|
|
15,940
|
ANNEX A: Non-GAAP Financial Information
Adjusted Net Loss Attributable to BioAmber Inc.
Shareholders
BioAmber presents Adjusted Net Loss Attributable to BioAmber
Inc. Shareholders as a supplemental measure of BioAmber's
performance. Adjusted Net Loss Attributable to BioAmber Inc.
Shareholders is a non-GAAP financial metric that excludes, for the
quarter ended September 30, 2017, the
impact of the change in fair value of the IPO Warrants, Legacy
Warrants, January 2017 Warrants and
August 2017 Warrants. For the quarter
ended September 30, 2016, it excludes
the impact of the change in fair value of the IPO Warrants, Legacy
Warrants, and the grant income. 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, except for per share data)
|
|
|
|
|
|
|
|
Three Months
Ended
September 30,
|
|
|
|
2017
|
|
2016
|
|
|
|
$
|
|
$
|
Net loss attributable
to BioAmber Inc. Shareholders
|
|
(7,050)
|
|
(6,158)
|
Adjustment:
|
|
|
|
|
|
Warrants revaluation
(income) expense
|
|
(2,379)
|
|
1,108
|
|
Grant
income
|
|
—
|
|
(2,396)
|
Adjusted net loss
attributable to BioAmber Inc. shareholders
|
|
(9,429)
|
|
(7,446)
|
|
|
|
|
|
|
Adjusted net loss per
share attributable to BioAmber
Inc. shareholders - basic
|
|
(0.21)
|
|
(0.26)
|
|
|
|
|
|
Weighted-average
number of common shares outstanding- basic
|
|
45,274
|
|
28,811
|
SOURCE BioAmber Inc.