Metabolix, Inc. (NASDAQ:MBLX), today reported financial results for
the three months ended September 30, 2016.
“We are excited to be moving forward focusing exclusively on the
Yield10 Bioscience mission to address the challenge of global food
security,” said Oliver Peoples, Ph.D., president and chief
executive officer. “We sold and transferred our legacy biopolymer
assets to CJ CheilJedang. In addition, we completed winding down
biopolymer related activities and substantially completed the
restructuring of the business. We recently announced the Yield10
management team, and we are now directing our resources toward
breakthrough bioscience and innovation to position Yield10 as a
leader in novel crop yield trait discovery.
“During the third quarter we signed an exclusive license to
intellectual property from North Carolina State University for
advanced crop technologies related to improving carbon capture and
partitioning in plants. We also conducted our first Fast Field Test
studies to investigate a series of exploratory yield traits using
our model Camelina oilseed platform. The plants and seed have been
harvested, and data analysis for this study is currently
underway.
“Over the coming months we will be working to advance our crop
yield technologies and to move exploratory yield traits into crops
such as canola, soybean, rice and corn; evaluating data from our
Fast Field Testing platform and planning studies for the 2017
growing season; and continuing to establish collaborations. As we
progress these objectives, our goal will be to build and capture
value from Yield10’s innovations,” said Dr. Peoples.
In July 2016, Metabolix announced a strategic restructuring
under which Yield10 Bioscience has become the Company’s core
business. Yield10 Bioscience is focused on the unmet need for
enhanced global food security and is developing proprietary
technologies to enable step-change improvements in yield for major
food and feed crops. In connection with its shift in focus, the
Company is rebranding itself as Yield10 Bioscience.
THIRD QUARTER 2016 FINANCIAL OVERVIEW
The Company ended the third quarter of 2016 with $9.8 million in
unrestricted cash and cash equivalents. The Company currently
estimates that its cash on hand together with expected cash
receipts from its outstanding government research grants will be
sufficient to support its operations into the fourth quarter of
2017. This includes both the estimated cash operating cost of the
Yield10 Bioscience business as well as remaining cash restructuring
costs expected to be incurred during the period.
Continuing Operations
For the third quarter of 2016, the Company reported a net loss
from continuing operations of $1.5 million, or $0.05 per share, as
compared to a net loss from continuing operations of $2.9 million,
or $0.11 per share, for the third quarter of 2015.
Total revenue from continuing operations in the third quarter of
2016 was $0.5 million, compared to $0.3 million for the comparable
quarter in 2015. Revenue in the third quarter of 2016 was derived
solely from government grants.
In the third quarter of 2016, research and development expenses
for continuing operations were $1.6 million as compared to $1.5
million of research and development expenses in the third quarter
of 2015. The increase in 2016 was primarily due to sponsored
research related to the ongoing field testing in
Camelina.
Selling, general and administrative expenses for continuing
operations totaled $1.5 million in the third quarter of 2016, as
compared to $1.8 million of selling, general and administrative
expenses for the third quarter of 2015. The decrease in the 2016
period is primarily attributable to a decrease in employee
compensation and related benefit expenses as a result of the
Company's reduction in headcount and the elimination of its 2016
annual bonus plan.
For the first nine months of 2016, the Company reported a net
loss from continuing operations of $7.7 million, or $0.28 per
share, compared with a net loss of $9.3 million, or $0.38 per
share, for the first nine months of 2015.
Total revenue during the first nine months of 2016 was $0.8
million, compared with $1.2 million for the comparable period in
2015.
Research and development expenses were $4.8 million during the
first nine months of 2016, compared with $5.0 million for the same
period in 2015. Selling, general and administrative expenses were
$5.0 million for the nine-month period ended September 30, 2016
compared with $5.6 million for the first nine months of 2015.
The Company’s net cash used in operating activities for
continuing operations during the first nine months of 2016 was $5.5
million as compared to $8.8 million for the same period of
2015.
Discontinued Operations and Strategic
Restructuring
In connection with the shift in the business plan to crop
science and the sale of biopolymer assets, the company discontinued
the operations of its biopolymers business. Metabolix completed the
sale of its biopolymer intellectual property and certain equipment
and inventory to CJ CheilJedang Corporation (“CJ”) for a total
purchase price of $10.0 million in September 2016.
In the third quarter of 2016, the Company undertook a strategic
restructuring of its operations to focus on the Yield10 Bioscience
business. The Company announced a plan to reduce staffing levels to
approximately 20 employees, a target level the Company is on track
to meet in the fourth quarter of 2016. The Company currently
expects that its annual net cash usage rate, excluding
restructuring costs, will be approximately $5.0 to $6.0
million for operating the Yield10 Bioscience business.
In connection with the wind down of the biopolymer operations,
Metabolix also ceased pilot production of biopolymer materials and
reached agreements with the owner-operators of its biopolymer pilot
production facilities regarding the termination of these services.
The Company made cash payments of approximately $0.8 million,
issued 275,000 shares of Company common stock, and transferred
certain biopolymer-related production equipment in the third
quarter related to these agreements and other restructuring
activities. Remaining cash restructuring costs associated with the
Company’s strategic restructuring are estimated at approximately
$2.5 million, including amounts accrued as of September 30, 2016,
and are expected to be paid out through May 2018.
Conference Call Information
Metabolix management will host a conference call today at 4:30
p.m. (ET) to discuss third quarter results. The Company also will
provide an update on the business and answer questions from the
investor community. A live webcast of the call with slides can be
accessed through the Company's website at
http://www.metabolix.com in the investor relations section. To
participate in the call, dial toll-free 877-709-8150 or
201-689-8354 (international).
To listen to a telephonic replay of the conference call, dial
toll-free 877-660-6853 or 201-612-7415 (international) and enter
pass code 13648037. The replay will be available for 14 days. In
addition, the webcast will be archived on the Company's website in
the investor relations section.
About Metabolix
Metabolix, Inc. has wound down its legacy PHA biopolymer
business and is becoming Yield10 Bioscience. Yield10 is leveraging
Metabolix’s extensive track record of innovation based around
optimizing the flow of carbon intermediates in living systems with
a focus on developing disruptive technologies for step-change
improvements in food and feed crop yield. Yield10 is working on new
approaches to improve fundamental elements of plant metabolism
through enhanced photosynthetic efficiency and directed carbon
deposition to seed. Yield10 is advancing the development of several
yield traits in crops such as Camelina, canola, soybean and corn.
The Company is based in Woburn, MA.
For more information, visit www.metabolix.com.
(MBLX-E)
For more information on Yield10 Bioscience, visit Yield10.
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 statements, including,
without limitation, expectations regarding Yield10’s research and
development, collaborations, intellectual property and value
creation as well as the Company’s restructuring costs, cash
position, cash forecasts and headcount forecasts, 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 Metabolix's
filings with the Securities and Exchange Commission. Metabolix
assumes no obligation to update any forward-looking information
contained in this press release or with respect to the
announcements described herein.
(FINANCIAL TABLES FOLLOW)
|
METABOLIX, INC. |
CONDENSED CONSOLIDATED STATEMENT OF
OPERATIONS |
UNAUDITED |
(in thousands, except share and per share
data) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
September 30, |
|
September 30, |
|
|
2016 |
|
2015 |
|
2016 |
|
2015 |
Revenue: |
|
|
|
|
|
|
|
Grant
revenue |
$ |
473 |
|
|
$ |
327 |
|
|
$ |
818 |
|
|
$ |
1,249 |
|
|
Total revenue |
473 |
|
|
327 |
|
|
818 |
|
|
1,249 |
|
|
|
|
|
|
|
|
|
|
Expenses: |
|
|
|
|
|
|
|
Research
and development |
1,570 |
|
|
1,447 |
|
|
4,751 |
|
|
5,034 |
|
Selling,
general, and administrative |
1,530 |
|
|
1,769 |
|
|
4,951 |
|
|
5,582 |
|
|
Total expenses |
3,100 |
|
|
3,216 |
|
|
9,702 |
|
|
10,616 |
|
|
Loss from continuing
operations |
(2,627 |
) |
|
(2,889 |
) |
|
(8,884 |
) |
|
(9,367 |
) |
|
|
|
|
|
|
|
|
|
|
Other income (expense),
net |
(8 |
) |
|
1 |
|
|
(4 |
) |
|
44 |
|
|
Net loss from
continuing operations before tax benefit |
(2,635 |
) |
|
(2,888 |
) |
|
(8,888 |
) |
|
(9,323 |
) |
|
Income tax benefit |
1,147 |
|
|
— |
|
|
1,147 |
|
|
— |
|
|
Net loss from
continuing operations |
(1,488 |
) |
|
(2,888 |
) |
|
(7,741 |
) |
|
(9,323 |
) |
|
|
|
|
|
|
|
|
|
Discontinued operations |
|
|
|
|
|
|
|
|
Income (loss) from
discontinued operations |
6,876 |
|
|
(2,960 |
) |
|
3,433 |
|
|
(8,441 |
) |
|
Income tax expense |
(1,364 |
) |
|
— |
|
|
(1,364 |
) |
|
— |
|
|
Total income (loss)
from discontinued operations |
5,512 |
|
|
(2,960 |
) |
|
2,069 |
|
|
(8,441 |
) |
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
$ |
4,024 |
|
|
$ |
(5,848 |
) |
|
$ |
(5,672 |
) |
|
$ |
(17,764 |
) |
|
|
|
|
|
|
|
|
|
Basic and
diluted net loss per share: |
|
|
|
|
|
|
|
|
Net loss from
continuing operations |
$ |
(0.05 |
) |
|
$ |
(0.11 |
) |
|
$ |
(0.28 |
) |
|
$ |
(0.38 |
) |
|
Net income (loss) from
discontinued operations |
0.19 |
|
|
(0.11 |
) |
|
0.07 |
|
|
(0.35 |
) |
|
Net income (loss) per
share |
$ |
0.14 |
|
|
$ |
(0.22 |
) |
|
$ |
(0.21 |
) |
|
$ |
(0.73 |
) |
|
|
|
|
|
|
|
|
|
Number of
shares used in per share calculations: |
|
|
|
|
|
|
|
|
Basic &
Diluted |
27,869,133 |
|
|
26,979,598 |
|
|
27,652,090 |
|
|
24,234,043 |
|
|
METABOLIX, INC. |
CONDENSED CONSOLIDATED BALANCE
SHEET |
UNAUDITED |
(in thousands) |
|
|
|
|
|
|
|
September 30, |
|
December 31, |
|
|
2016 |
|
2015 |
Assets |
|
|
|
|
Current Assets: |
|
|
|
|
Cash and cash equivalents |
$ |
9,782 |
|
|
$ |
12,269 |
|
|
Accounts receivable |
198 |
|
|
238 |
|
|
Due from related parties |
1 |
|
|
146 |
|
|
Unbilled receivables |
347 |
|
|
150 |
|
|
Inventory |
— |
|
|
51 |
|
|
Prepaid expenses and other current
assets |
252 |
|
|
1,668 |
|
|
Short-term restricted cash |
— |
|
|
494 |
|
|
Assets of disposal group classified
as held for sale |
— |
|
|
328 |
|
|
Total current assets |
10,580 |
|
|
15,344 |
|
|
Restricted cash |
432 |
|
|
125 |
|
|
Property and equipment,
net |
1,796 |
|
|
105 |
|
|
Other assets |
717 |
|
|
714 |
|
|
Other assets of
disposal group classified as held for sale |
— |
|
|
800 |
|
|
Total assets |
$ |
13,525 |
|
|
$ |
17,088 |
|
|
|
|
|
|
Liabilities and Stockholders' Equity |
|
|
|
|
Current
Liabilities: |
|
|
|
|
Accounts payable |
$ |
229 |
|
|
$ |
120 |
|
|
Accrued expenses |
2,749 |
|
|
3,513 |
|
|
Short-term deferred revenue |
— |
|
|
277 |
|
|
Total current liabilities |
2,978 |
|
|
3,910 |
|
|
Other long-term liabilities |
1,969 |
|
|
150 |
|
|
Total liabilities |
4,947 |
|
|
4,060 |
|
|
|
|
|
|
Stockholders’ Equity: |
|
|
|
|
Preferred stock ($0.01 par value
per share); 5,000,000 shares authorized; no shares issued or
outstanding |
— |
|
|
— |
|
|
Common stock ($0.01 par value per
share); 250,000,000 shares authorized at September 30, 2016
and December 31, 2015; 28,119,260 and 27,331,435 shares issued and
outstanding at September 30, 2016 and December 31, 2015,
respectively |
281 |
|
|
273 |
|
|
Additional paid-in
capital |
339,803 |
|
|
338,580 |
|
|
Accumulated other
comprehensive loss |
(81 |
) |
|
(72 |
) |
|
Accumulated
deficit |
(331,425 |
) |
|
(325,753 |
) |
|
Total stockholders’ equity |
8,578 |
|
|
13,028 |
|
|
Total liabilities and stockholders’
equity |
$ |
13,525 |
|
|
$ |
17,088 |
|
|
METABOLIX, INC. |
CONDENSED CONSOLIDATED STATEMENT OF CASH
FLOWS |
UNAUDITED |
(in thousands) |
|
|
Nine Months Ended September 30, |
|
|
2016 |
|
2015 |
|
Cash flows from
operating activities |
|
|
|
|
|
Net loss |
|
$ |
(5,672 |
) |
|
$ |
(17,764 |
) |
|
Less: |
|
|
|
|
|
Income [loss] from
discontinued operations |
|
2,069 |
|
|
(8,441 |
) |
|
Loss from continuing
operations |
|
(7,741 |
) |
|
(9,323 |
) |
|
Adjustments to
reconcile net loss to cash used in operating activities: |
|
|
|
|
|
Depreciation |
|
120 |
|
|
94 |
|
|
Charge for
401(k) company common stock match |
|
141 |
|
|
141 |
|
|
Stock-based
compensation |
|
943 |
|
|
1,005 |
|
|
Gain on sale of
property and equipment |
|
12 |
|
|
— |
|
|
Changes in operating
assets and liabilities: |
|
|
|
|
|
Accounts receivables |
|
40 |
|
|
(231 |
) |
|
Due from related party |
|
145 |
|
|
(35 |
) |
|
Unbilled receivables |
|
(197 |
) |
|
132 |
|
|
Inventory |
|
51 |
|
|
(3 |
) |
|
Prepaid expenses and other
assets |
|
1,413 |
|
|
(687 |
) |
|
Accounts payable |
|
108 |
|
|
48 |
|
|
Accrued expenses |
|
(885 |
) |
|
18 |
|
|
Deferred rent and other long-term
liabilities |
|
655 |
|
|
— |
|
|
Deferred revenue |
|
(41 |
) |
|
7 |
|
|
Taxes paid related to net share
settlement upon vesting of stock awards |
|
(273 |
) |
|
— |
|
|
Net cash used by continuing
operations for operating activities |
|
(5,509 |
) |
|
(8,834 |
) |
|
Net cash used by discontinued
operations for operating activities |
|
(6,752 |
) |
|
(7,559 |
) |
|
Net cash used in operating
activities |
|
(12,261 |
) |
|
(16,393 |
) |
|
|
|
|
|
|
|
Cash flows from
investing activities |
|
|
|
|
|
Purchase of property
and equipment |
|
(511 |
) |
|
(20 |
) |
|
Change in restricted
cash |
|
187 |
|
|
— |
|
|
Net cash used by continuing
operations for investing activities |
|
(324 |
) |
|
(20 |
) |
|
Net cash provided (used) by
discontinued operations for investing activities |
|
10,107 |
|
|
(438 |
) |
|
Net cash provided (used) by
provided investing activities |
|
9,783 |
|
|
(458 |
) |
|
|
|
|
|
|
|
Cash flows from
financing activities |
|
|
|
|
|
Proceeds from private
placement offering, net of issuance costs |
|
— |
|
|
14,703 |
|
|
Net cash provided by continuing
operations for financing activities |
|
— |
|
|
14,703 |
|
|
|
|
|
|
|
|
Effect of exchange rate
changes on cash and cash equivalents |
|
(9 |
) |
|
(4 |
) |
|
|
|
|
|
|
|
Net decrease in cash
and cash equivalents |
|
(2,487 |
) |
|
(2,152 |
) |
|
Cash and cash
equivalents at beginning of period |
|
12,269 |
|
|
20,046 |
|
|
Cash and cash
equivalents at end of period |
|
$ |
9,782 |
|
|
$ |
17,894 |
|
|
Supplemental disclosure
of non-cash information: |
|
|
|
|
|
Purchase of property
and equipment included in accounts payable and accrued
expenses |
|
$ |
— |
|
|
$ |
128 |
|
|
Restricted stock units
issued to settle incentive compensation obligation |
|
$ |
— |
|
|
$ |
305 |
|
|
Lease incentive paid by
lessor |
|
$ |
1,332 |
|
|
$ |
— |
|
|
Transfer of equipment
to settle contractual liability |
|
$ |
111 |
|
|
$ |
— |
|
|
Issuance of common
stock to settle contractual liability |
|
$ |
85 |
|
|
$ |
— |
|
|
Private placement
offering costs included in accounts payable and accrued
expenses |
|
$ |
— |
|
|
$ |
75 |
|
|
Metabolix Contact:
Lynne H. Brum, 617-682-4693, LBrum@metabolix.com
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