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