DAVIS, Calif., Nov. 7, 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 third quarter ended September 30, 2013.
Financial Highlights for the Third Quarter of 2013
- Revenues totaled $1.3 million, representing growth of 82%, with growth year to date of 102%. Additional product sales of $770 thousand were delivered to customers with extended payment terms and recorded as deferred revenues.
- Net loss of $6.1 million, compared to net loss of $13.8 million in the third quarter of 2012.
- At September 30, 2013, cash and cash equivalents and short-term investments totaled $53.5 million.
"We made excellent progress in the third quarter expanding adoption and further commercializing our innovative bio-based products into the broader agricultural and water treatment markets," said Pam Marrone, Chief Executive Officer of Marrone Bio Innovations. "We signed MOUs with two new EU distributors and are working to formalize agreements that we believe would provide a solid foundation for international growth, and the positive results for our Regalia® Rx launch in the midwest combined with several other encouraging field trials during the quarter underscores the efficacy and wide-reaching applicability of both our commercial products as well as our pipeline candidates."
Recent Business Highlights
- Signed Memorandums of Understanding (MOU) with two European distributors including DeSangosse in France and CBC/Intrachem in Italy.
- Successfully demonstrated the value of Regalia Rx on corn and soybeans for enhanced plant health and increased yield.
- Demonstrated positive field results for existing and pipeline products against soybean cyst nematodes, corn rootworm and key pests in fruits and vegetables.
- Received California registration for Zequanox and also commenced commercial treatment programs with Ontario Power Generation and Oklahoma Gas & Electric. Also commenced a large-scale demo at Hoover Dam.
"Our third quarter results are consistent with the typical seasonal trends for our third quarter," said Don Glidewell, Chief Financial Officer of Marrone Bio Innovations. "Additionally, our recent IPO has allowed us to begin offering extended payment terms which are typical in the agricultural industry. We sold $770 thousand dollars of products under these terms in the third quarter and will recognize the revenue from these sales during the appropriate future period."
Business Outlook
For the full year 2013 the Company expects net revenues to more than double compared to the full year 2012, including expected deferred revenues.
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 November 7, 2013. To access the conference call, dial 760-298-5095 or 877-303-6220 (toll-free) and enter passcode 74608978. 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 November 10, 2013. To access the replay, please dial 404-537-3406 or 855-859-2056 and enter passcode 74608978.
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 10-Q that the Company filed with the Securities and Exchange Commission on September 13, 2013.
| Condensed Consolidated Balance Sheets | ||
| (In Thousands, Except Par Value) | ||
| SEPTEMBER 30, | DECEMBER 31, | |
| 2013 | 2012 | |
| (Unaudited) | ||
| Assets | ||
| Current assets: | ||
| Cash and cash equivalents | $40,775 | $10,006 |
| Restricted cash | — | 9,139 |
| Short-term investments | 12,684 | — |
| Accounts receivable | 2,050 | 2,970 |
| Inventories | 10,754 | 4,872 |
| Prepaid expenses and other current assets | 2,357 | 478 |
| Total current assets | 68,620 | 27,465 |
| Property, plant and equipment, net | 5,726 | 3,528 |
| Other assets | 1,057 | 2,785 |
| Total assets | $75,403 | $33,778 |
| Liabilities, convertible preferred stock and stockholders' equity (deficit) | ||
| Current liabilities: | ||
| Accounts payable | $5,125 | $2,104 |
| Accrued liabilities | 2,973 | 3,023 |
| Deferred revenue, current portion | 1,094 | 324 |
| Capital lease obligations, current portion | 782 | 207 |
| Debt, current portion | 177 | 8,572 |
| Preferred stock warrant liability | — | 1,884 |
| Common stock warrant liability | — | 301 |
| Convertible notes payable, current portion | — | 22,518 |
| Total current liabilities | 10,151 | 38,933 |
| Deferred revenue, less current portion | 1,453 | 1,696 |
| Capital lease obligations, less current portion | 538 | 195 |
| Debt, less current portion | 12,261 | 7,766 |
| Convertible notes payable, less current portion | — | 19,342 |
| Other liabilities | 569 | 481 |
| Total liabilities | 24,972 | 68,413 |
| Commitments and contingencies | ||
| Preferred stock | — | — |
| Convertible preferred stock—Series A | — | 3,747 |
| Convertible preferred stock—Series B | — | 10,758 |
| Convertible preferred stock—Series C | — | 25,107 |
| Stockholders' deficit: | ||
| Common stock | — | — |
| Additional paid-in capital | 145,876 | 1,322 |
| Accumulated deficit | (95,445) | (75,569) |
| Total stockholders' equity (deficit) | 50,431 | (74,247) |
| Total liabilities, convertible preferred stock and stockholders' equity (deficit) | $75,403 | $33,778 |
| Condensed Consolidated Statements of Operations | ||||
| (In Thousands, Except Per Share Amount) | ||||
| (Unaudited) | ||||
| THREE MONTHS ENDED | NINE MONTHS ENDED | |||
| SEPTEMBER 30, 2013 | SEPTEMBER 30, 2013 | |||
| 2013 | 2012 | 2013 | 2012 | |
| Revenues: | ||||
| Product | $1,265 | $662 | $8,333 | $4,039 |
| License | 81 | 76 | 243 | 207 |
| Total revenues | 1,346 | 738 | 8,576 | 4,246 |
| Cost of product revenues | 1,077 | 521 | 6,270 | 2,065 |
| Gross profit | 269 | 217 | 2,306 | 2,181 |
| Operating expenses: | ||||
| Research and development | 4,454 | 3,350 | 11,678 | 8,498 |
| Selling, general and administrative | 4,493 | 2,617 | 10,447 | 7,105 |
| Total operating expenses | 8,947 | 5,967 | 22,125 | 15,603 |
| Loss from operations | (8,678) | (5,750) | (19,819) | (13,422) |
| Other income (expense): | ||||
| Interest income | 24 | 10 | 25 | 16 |
| Interest expense | (1,119) | (593) | (5,389) | (1,250) |
| Change in estimated fair value of financial instruments | 3,730 | (7,473) | 6,717 | (7,053) |
| Gain on extinguishment of debt | — | — | 49 | — |
| Other (expense) income, net | (67) | 4 | (81) | 11 |
| Total other income (expense), net | 2,568 | (8,052) | 1,321 | (8,276) |
| Loss before income taxes | (6,110) | (13,802) | (18,498) | (21,698) |
| Income taxes | — | — | — | — |
| Net loss | (6,110) | (13,802) | (18,498) | (21,698) |
| Deemed dividend on convertible notes | — | — | (1,378) | (1,253) |
| Net loss attributable to common stockholders | $ (6,110) | $ (13,802) | $ (19,876) | $ (22,951) |
| Net loss per common share: | ||||
| Basic | $ (0.47) | $ (10.94) | $ (3.83) | $ (18.32) |
| Diluted | $ (0.53) | $ (10.94) | $ (3.86) | $ (18.32) |
| Weighted-average shares outstanding used in computing net loss per common share: | ||||
| Basic | 12,888 | 1,262 | 5,187 | 1,253 |
| Diluted | 14,017 | 1,262 | 5,229 | 1,253 |
| Condensed Consolidated Statements of Cash Flows | ||
| (In Thousands) | ||
| (Unaudited) | ||
| NINE MONTHS ENDED | ||
| SEPTEMBER 30, 2013 | ||
| 2013 | 2012 | |
| Cash flows from operating activities | ||
| Net loss | $ (18,498) | $ (21,698) |
| Adjustments to reconcile net loss to net cash used in operating activities: | ||
| Depreciation and amortization | 594 | 447 |
| Loss on disposal of equipment | 47 | — |
| Share-based compensation | 1,125 | 466 |
| Noncash interest expense | 4,068 | 546 |
| Change in estimated fair value of financial instruments | (6,717) | 7,053 |
| Gain on extinguishment of debt | (49) | — |
| Amortization of investment securities premiums/discounts, net | 4 | — |
| Net changes in operating assets and liabilities: | ||
| Accounts receivable | 920 | (52) |
| Inventories | (5,882) | (2,362) |
| Prepaid expenses and other current assets | (1,413) | (52) |
| Other assets | 1,922 | (1,784) |
| Accounts payable | 3,021 | 1,485 |
| Accrued liabilities | (50) | (157) |
| Deferred revenue | 527 | 792 |
| Other liabilities | (37) | (15) |
| Net cash used in operating activities | (20,418) | (15,331) |
| Cash flows from investing activities | ||
| Purchases of property, plant and equipment | (2,238) | (2,149) |
| Proceeds from sale of equipment | 16 | — |
| Purchase of short-term investments | (12,688) | — |
| Maturities of short-term investments | — | 2,000 |
| Net cash used in investing activities | (14,910) | (149) |
| Cash flows from financing activities | ||
| Proceeds from initial public offering, net of offering costs and underwriter commissions | 56,105 | — |
| 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 | (9,367) | (708) |
| Repayment of capital leases | (162) | (122) |
| Proceeds from secured borrowing | 2,880 | — |
| Reductions in secured borrowing | (2,880) | — |
| Change in restricted cash | 9,139 | — |
| Proceeds from exercise of stock options | 81 | 22 |
| Proceeds from exercise of preferred stock warrants | 47 | — |
| Proceeds from exercise of common stock warrants | 25 | — |
| Net cash provided by financing activities | 66,097 | 17,142 |
| Net increase in cash and cash equivalents | 30,769 | 1,662 |
| Cash and cash equivalents, beginning of year | 10,006 | 2,215 |
| Cash and cash equivalents, end of period | $40,775 | $3,877 |
| Supplemental disclosure of cash flow information | ||
| Cash paid for interest, net of capitalized interest of $450 and $43 for the nine months ended September 30, 2013 and 2012, respectively. | $1,321 | $703 |
| Supplemental disclosure of noncash investing and financing activities | ||
| Equipment acquired under capital leases | $617 | $102 |
| Interest added to the principal of convertible notes | $1,623 | $ — |
| Reclassification of warrants from liabilities to equity | $2,669 | $ — |
| Conversion of convertible notes to common stock | $44,890 | $ — |
| Conversion of preferred stock to common stock | $39,659 | $ — |