Marrone Bio Innovations Reports Second Quarter 2013 Financial Results

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| Source: Marrone Bio Innovations

DAVIS, Calif., Sept. 12, 2013 (GLOBE NEWSWIRE) -- Marrone Bio Innovations, Inc. (Nasdaq:MBII), a provider of bio-based pest management and plant health products, announced today financial results for the second quarter ended June 30, 2013.

Financial Highlights for the Second Quarter of 2013

  • Revenues totaled $4.5 million, an almost 200% increase over the second quarter of 2012.
  • Net loss of $1.6 million, compared to net loss of $3.9 million in the second quarter of 2012.
  • At June 30, 2013, cash and cash equivalents totaled $4.2 million. The Company subsequently received $56 million in net proceeds in connection with its initial public offering, which closed on August 7, 2013. The impact of the initial public offering is not included in the Company's financial results for the period ended June 30, 2013.

"We are pleased with our second quarter results and the recent completion of our IPO," said Pam Marrone, Chief Executive Officer of Marrone Bio Innovations. "During the quarter we saw ongoing robust demand for our environmentally responsible, bio-based products. Going forward, the demonstration of our pipeline products' efficacy in the field, newly received patents and recent additions to our team position us favorably for continued growth in 2013 and beyond. With our proprietary discovery process and rapid development platform, we believe we are well positioned to add to our broad pipeline of innovative bio-based solutions."

Recent Business Highlights

  • Completed an initial public offering of 5,462,500 shares of common stock at a public offering price of $12 per share.
  • Received U.S. Patents for two bioherbicide active ingredients.
  • Added key new staff members including Chief Science Officer Dr. Alison Stewart and Chief Patent Counsel Dr. Yuko Soneoka.
  • Received EPA approval to allow Grandevo to be sprayed when bees are actively flying.
  • Signed lease for larger headquarters facility in Davis, CA to accommodate future growth.
  • Four pipeline product candidates showed positive field trial results.

Commenting on the Company's financial results, Don Glidewell, Chief Financial Officer of Marrone Bio Innovations, added, "Our revenue growth in the second quarter underscores the increased demand for our products among our growing customer base. We will continue to seek to leverage our platform and products to penetrate new markets, segments and geographies."

Business Outlook

For the full year 2013, the Company expects revenues to approximately double compared to the full year 2012.

Conference Call Information

Marrone Bio Innovations (Nasdaq:MBII) will host an investor conference call and webcast the event beginning at 4:30 p.m. Eastern Time on September 12, 2013. To access the conference call, dial 760-298-5095 or 877-303-6220 (toll-free) and enter passcode 34004357. The webcast and replay will be available on Marrone Bio Innovations' investor relations website at http://investors.marronebio.com/. A replay of the conference call will be available within two hours of the conclusion of the conference call through September 15, 2013. To access the replay, please dial 404-537-3406 or 855-859-2056 and enter passcode 34004357.

About Marrone Bio Innovations

Marrone Bio Innovations, Inc. (Nasdaq:MBII) is a leading provider of bio-based pest management and plant health products for the agriculture, turf and ornamental, and water treatment markets. Our effective and environmentally responsible solutions help customers operate more sustainably while controlling pests, improving plant health, and increasing crop yields. We have a proprietary discovery process, a rapid development platform, and a robust pipeline of pest management and plant health product candidates. At Marrone Bio Innovations we are dedicated to pioneering better biopesticides that support a better tomorrow for users around the globe. For more information, please visit www.marronebio.com.

Forward-Looking Statements

The statements contained in this press release that are not purely historical are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements in this press release include statements regarding our expectations, beliefs, hopes, goals, intentions, initiatives or strategies, including statements relating to leveraging our platform to penetrate new markets and the results from the field trials. Because these forward-looking statements involve risks and uncertainties, there are important factors that could cause actual results to differ materially from those in the forward-looking statements, including the timing of and costs associated with the launch of products, the difficulty in predicting the timing or outcome of product research and development efforts and regulatory approvals. Additional relevant information concerning risks can be found in the in the Form S-1/A that the Company filed with the Securities and Exchange Commission on August 1, 2013.

 
Condensed Consolidated Balance Sheets
(In Thousands)
 
  JUNE 30,
2013
DECEMBER 31,
2012
  (Unaudited)  
Assets    
Current assets:    
Cash and cash equivalents $ 4,237 $ 10,006
Restricted cash 9,139
Accounts receivable 3,905 2,970
Inventories 6,928 4,872
Prepaid expenses and other current assets 1,522 478
     
Total current assets 16,592 27,465
Property, plant and equipment, net 4,766 3,528
Other assets 4,217 2,785
     
Total assets $ 25,575 $ 33,778
     
Liabilities, convertible preferred stock and stockholders' deficit    
Current liabilities:    
Accounts payable $ 4,300 $ 2,104
Accrued liabilities 2,272 3,023
Deferred revenue, current portion 324 324
Capital lease obligations, current portion 573 207
Debt, current portion 172 8,572
Preferred stock warrant liability 1,308 1,884
Common stock warrant liability 1,424 301
Convertible notes payable, current portion 18,991 22,518
     
Total current liabilities 29,364 38,933
Deferred revenue, less current portion 1,534 1,696
Capital lease obligations, less current portion 357 195
Debt, less current portion 12,265 7,766
Convertible notes payable, less current portion 29,243 19,342
Other liabilities 614 481
Total liabilities 73,377 68,413
Commitments and contingencies    
Convertible preferred stock—Series A 3,747 3,747
Convertible preferred stock—Series B 10,758 10,758
Convertible preferred stock—Series C 25,107 25,107
Stockholders' deficit:    
Common stock
Additional paid-in capital 1,921 1,322
Accumulated deficit (89,335) (75,569)
     
Total stockholders' deficit (87,414) (74,247)
     
Total liabilities, convertible preferred stock and stockholders' deficit $ 25,575 $ 33,778
     
 
Condensed Consolidated Statements of Operations
(In Thousands, Except Per Share Amount)
(Unaudited)
 
  THREE MONTHS ENDED
JUNE 30
SIX MONTHS ENDED
JUNE 30
  2013 2012 2013 2012
Revenues:        
Product $ 4,419  $ 1,421 $ 7,068  $ 3,377
License 81 88 162 131
         
Total revenues 4,500 1,509 7,230 3,508
Cost of product revenues 3,398 684 5,193 1,544
         
Gross profit 1,102 825 2,037 1,964
Operating expenses:        
Research and development 3,941 2,415 7,224 5,148
Selling, general and administrative 3,107 2,166 5,954 4,488
         
Total operating expenses 7,048 4,581 13,178 9,636
         
Loss from operations (5,946) (3,756) (11,141) (7,672)
Other income (expense):        
Interest income 4 1 6
Interest expense (2,285) (601) (4,270) (657)
Change in estimated fair value of financial instruments 6,550 435 2,987 420
Gain on extinguishment of debt 49 49
Other (expense) income, net (7) 6 (14) 7
         
Total other income (expense), net 4,307 (156) (1,247) (224)
         
Loss before income taxes (1,639) (3,912) (12,388) (7,896)
Income taxes
         
Net loss (1,639) (3,912) (12,388) (7,896)
Deemed dividend on convertible notes (1,378) (1,378) (1,253)
         
Net loss attributable to common stockholders $ (3,017) $ (3,912) $ (13,766) $ (9,149)
         
Net loss per common share:        
Basic and diluted $ (2.36) $ (3.13) $ (10.81) $ (7.33)
         
Weighted-average shares outstanding used in computing net loss per common share:        
Basic and diluted 1,277 1,251 1,273 1,249
         
 
 
Condensed Consolidated Statements of Cash Flows
(In Thousands)
(Unaudited)
 
  SIX MONTHS ENDED
JUNE 30
  2013 2012
Cash flows from operating activities    
Net loss $ (12,388)  $ (7,896)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation and amortization 356 288
Share-based compensation 588 381
Noncash interest expense 3,404 296
Change in estimated fair value of financial instruments (2,987) (420)
Gain on extinguishment of debt (49)
Net changes in operating assets and liabilities:    
Accounts receivable (935) (613)
Inventories (2,056) (1,442)
Prepaid expenses and other current assets (560) 130
Other assets (1,073) (1,503)
Accounts payable 2,196 885
Accrued liabilities (751) (190)
Deferred revenue (162) 869
Other liabilities 8 (10)
     
Net cash used in operating activities (14,409) (9,225)
Cash flows from investing activities    
Purchases of property, plant and equipment (1,338) (358)
Purchase of short-term investments (1,338)
Maturities of short-term investments 2,000
     
Net cash (used in) provided by investing activities (1,338) 304
Cash flows from financing activities    
Proceeds from issuance of convertible notes payable 6,529 8,075
Proceeds from issuance of debt 3,700 9,875
Proceeds from line of credit 500
Repayment of line of credit (500)
Repayment of debt (9,303) (276)
Repayment of capital leases (98) (91)
Change in restricted cash 9,139
Proceeds from exercise of stock options 11 13
     
Net cash provided by financing activities 9,978 17,596
     
Net (decrease) increase in cash and cash equivalents (5,769) 8,675
Cash and cash equivalents, beginning of year 10,006 2,215
     
Cash and cash equivalents, end of period $ 4,237 $ 10,890
     
Supplemental disclosure of cash flow information    
Cash paid for interest, net of capitalized interest of $279 and $0 for six months ended June 30, 2013 and 2012, respectively. $ 866 $ 361
     
Supplemental disclosure of noncash investing and financing activities    
Interest added to the principal of convertible notes $ 1,299 $ —
     
Equipment acquired under capital leases $ 256 $ 10
     

Source: Marrone Bio Innovations

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