| [May 10, 2012] |
 |
Codexis Reports First Quarter 2012 Results
REDWOOD CITY, Calif. --(Business Wire)--
Codexis, Inc. (NASDAQ: CDXS), a developer of cost-advantaged processes
for the production of biofuels, bio-based chemicals, and pharmaceutical
intermediates, today announced financial results for the first quarter
ended March 31, 2012.
"In the first quarter of 2012, we saw increased sales in our
pharmaceutical business and made continued progress with our development
projects and partnerships in bio-based fuels and chemicals," said Peter
Strumph, interim CEO of Codexis. "We remain focused on growing our
pharmaceutical portfolio while continuing to advance CodeXyme™ cellulase
enzymes and CodeXol™ detergent alcohols toward commercialization."
First Quarter Financial Highlights:
Revenue: For the first quarter of 2012, the company reported revenues of
$31.1 million, in line with $31.0 million from the first quarter of
2011. Product revenue in the first quarter of 2012 was $15.2 million, a
17% increase over $12.9 million in the prior year quarter, primarily
driven by increased sales of atorvastatin-related intermediates.
Collaborative research and development revenue of $14.6 million
decreased 16% from $17.5 million in the first quarter of 2011.
Operating Expenses: Research and development expenses in the first
quarter of 2012 were $16.3 million, an increase of 19% from $13.8
million for the first quarter of 2011. The increase was primarily due to
continued development of CodeXol™ detergent alcohol. Selling, general
and administrative expenses in the first quarter of 2012 were $9.4
million, an increase of 4% compared to $9.0 million in the same period
of 2011.
Net Loss: Net loss was ($7.5) million, or ($0.21) per share, based on
36.1 million weighted average common shares outstanding in the first
quarter of 2012. This compares to a net loss of ($3.5) million or
($0.10) per share during the first quarter of 2011.
Adjusted EBITDA: On a non-GAAP basis, Adjusted EBITDA was ($3.1) million
in the first quarter of 2012 compared to $1.8 million for the first
quarter of 2011. Adjusted EBITDA is calculated by adjusting net loss for
net interest expense, income taxes, depreciation, amortization, and
stock-based compensation. A reconciliation of net loss to Adjusted
EBITDA is presented below.
Cash: Cash, cash equivalents, and marketable securities at March 31,
2012 were $62.2 million, a 3% decrease compared to $63.8 million at
December 31, 2011. The company generated $0.6 million in cash from
operations in the first quarter of 2012.
Outlook
Codexis' statements with regard to its outlook are based on current
expectations. The following statements are forward looking, and actual
results could differ materially depending on market conditions and the
factors set forth under "Forward-Looking Statements" below.
For the full year 2012, Codexis forecasts revenues in line with or
exceeding 2011 results. Codexis expects 2012 Adjusted EBITDA will be
positive, and expects total cash burn to be in line with 2011 levels.
Conference Call
Codexis will hold a conference call on Thursday, May 10, 2012 at 1:30
p.m. PT (4:30 p.m. ET). The conference call dial-in numbers are US:
866-788-0541 or International: 857-350-1679, access code 54501345. A
live webcast of the call will also be available from the Investors
section of www.codexis.com.
A recording of the call will be available by calling US: 888-286-8010 or
International: 617-801-6888, access code 93747367 beginning
approximately two hours after the call, and will be available for up to
seven days. A webcast replay will also be available from the Investors
section of www.codexis.com
approximately two hours after the call, and will be available for up to
30 days.
About Codexis, Inc.
Codexis, Inc. is a developer of cost-advantaged processes for the
production of biofuels, bio-based chemicals, and pharmaceutical
intermediates. Codexis' product lines include CodeXyme™ Cellulase
Enzymes and CodeXol™ Detergent Alcohol. Partners and customers include
global leaders such as Shell, Merck and Pfizer. For more information,
see www.codexis.com.
Forward-Looking Statements
This press release contains forward-looking statements relating to
Codexis' forecast for 2012 revenue, Adjusted EBITDA and total cash burn,
and Codexis' ability to deliver sales growth in its pharmaceutical
products and services in 2012. You should not place undue reliance on
these forward-looking statements because they involve known and unknown
risks, uncertainties and other factors that are, in some cases, beyond
our control and that could materially affect actual results. Factors
that could materially affect actual results include the risks that our
operating results may fluctuate in the future and that we are dependent
on a limited number of products and customers in our pharmaceutical
business. Additional factors that could materially affect actual results
can be found in Codexis' Annual Report on Form 10-K filed with the
Securities and Exchange Commission on March 5, 2012, including under the
caption "Risk Factors." Codexis expressly disclaims any intent or
obligation to update these forward-looking statements, except as
required by law.
|
|
|
Codexis, Inc.
|
|
Condensed Consolidated Statements of Operations
|
|
(Unaudited)
|
|
(In Thousands, Except Per Share Amounts)
|
|
|
|
|
|
Three Months Ending
|
|
|
|
|
|
March 31,
|
|
|
|
|
|
|
2012
|
|
|
|
2011
|
|
|
% change
|
|
|
Revenues:
|
|
|
|
|
|
|
|
Product
|
|
$
|
15,167
|
|
|
$
|
12,932
|
|
|
17
|
%
|
|
Collaborative research and development
|
|
|
14,612
|
|
|
|
17,486
|
|
|
-16
|
%
|
|
Government grants
|
|
|
1,357
|
|
|
|
616
|
|
|
120
|
%
|
|
|
|
|
|
|
|
|
|
Total revenues
|
|
|
31,136
|
|
|
|
31,034
|
|
|
0
|
%
|
|
|
|
|
|
|
|
|
|
Costs and operating expenses:
|
|
|
|
|
|
|
|
Cost of product revenues
|
|
|
12,642
|
|
|
|
11,650
|
|
|
9
|
%
|
|
Gross margin $
|
|
|
2,525
|
|
|
|
1,282
|
|
|
97
|
%
|
|
Gross margin %
|
|
|
17
|
%
|
|
|
10
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Research and development
|
|
|
16,349
|
|
|
|
13,750
|
|
|
19
|
%
|
|
Selling, general and administrative
|
|
|
9,395
|
|
|
|
9,013
|
|
|
4
|
%
|
|
|
|
|
|
|
|
|
|
Total costs and operating expenses
|
|
|
38,386
|
|
|
|
34,413
|
|
|
12
|
%
|
|
|
|
|
|
|
|
|
|
Loss from operations
|
|
|
(7,250
|
)
|
|
|
(3,379
|
)
|
|
115
|
%
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
|
75
|
|
|
|
49
|
|
|
53
|
%
|
|
Interest expense and other, net
|
|
|
(118
|
)
|
|
|
17
|
|
|
nm
|
|
|
|
|
|
|
|
|
|
Loss before provision for income taxes
|
|
|
(7,293
|
)
|
|
|
(3,313
|
)
|
|
120
|
%
|
|
|
|
|
|
|
|
|
|
Provision for income taxes
|
|
|
197
|
|
|
|
158
|
|
|
25
|
%
|
|
Net loss
|
|
$
|
(7,490
|
)
|
|
$
|
(3,471
|
)
|
|
116
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per share of common stock, basic and diluted
|
|
$
|
(0.21
|
)
|
|
$
|
(0.10
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares used in computing net loss per share
of common stock, basic and diluted
|
|
|
36,057
|
|
|
|
35,116
|
|
|
|
|
|
|
Codexis, Inc.
|
|
Condensed Consolidated Balance Sheets
|
|
(Unaudited)
|
|
(In Thousands)
|
|
|
|
|
|
March 31,
|
|
|
December 31,
|
|
|
|
|
2012
|
|
|
|
|
2011
|
|
|
Assets
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
26,604
|
|
|
|
$
|
25,762
|
|
|
Marketable securities
|
|
|
26,679
|
|
|
|
|
27,720
|
|
|
Accounts receivable, net
|
|
|
18,548
|
|
|
|
|
18,917
|
|
|
Inventories
|
|
|
4,814
|
|
|
|
|
4,488
|
|
|
Prepaid expenses and other current assets
|
|
|
4,063
|
|
|
|
|
2,345
|
|
|
Total current assets
|
|
|
80,708
|
|
|
|
|
79,232
|
|
|
|
|
|
|
|
|
|
Restricted cash
|
|
|
1,511
|
|
|
|
|
1,511
|
|
|
Non-current marketable securities
|
|
|
8,867
|
|
|
|
|
10,348
|
|
|
Property and equipment, net
|
|
|
24,001
|
|
|
|
|
24,176
|
|
|
Intangible assets, net
|
|
|
15,526
|
|
|
|
|
16,442
|
|
|
Goodwill
|
|
|
3,241
|
|
|
|
|
3,241
|
|
|
Other non-current assets
|
|
|
747
|
|
|
|
|
972
|
|
|
Total assets
|
|
$
|
134,601
|
|
|
|
$
|
135,922
|
|
|
|
|
|
|
|
|
|
Liabilities and stockholders' equity
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
Accounts payable
|
|
$
|
8,978
|
|
|
|
$
|
10,364
|
|
|
Accrued compensation
|
|
|
4,387
|
|
|
|
|
6,785
|
|
|
Other accrued liabilities
|
|
|
10,813
|
|
|
|
|
7,354
|
|
|
Deferred revenues
|
|
|
9,070
|
|
|
|
|
3,789
|
|
|
Total current liabilities
|
|
|
33,248
|
|
|
|
|
28,292
|
|
|
|
|
|
|
|
|
|
Deferred revenues, net of current portion
|
|
|
1,439
|
|
|
|
|
1,485
|
|
|
Other long-term liabilities
|
|
|
3,649
|
|
|
|
|
3,455
|
|
|
Total liabilities
|
|
|
38,336
|
|
|
|
|
33,232
|
|
|
|
|
|
|
|
|
|
Stockholders' equity:
|
|
|
|
|
|
|
Common stock
|
|
|
4
|
|
|
|
|
4
|
|
|
Additional paid-in capital
|
|
|
288,991
|
|
|
|
|
287,792
|
|
|
Accumulated other comprehensive income (loss)
|
|
|
(541
|
)
|
|
|
|
(407
|
)
|
|
Accumulated deficit
|
|
|
(192,189
|
)
|
|
|
|
(184,699
|
)
|
|
Total stockholders' equity
|
|
|
96,265
|
|
|
|
|
102,690
|
|
|
Total liabilities and stockholders' equity
|
|
$
|
134,601
|
|
|
|
$
|
135,922
|
|
|
|
|
Codexis, Inc.
|
|
Condensed Consolidated Statements of Cash Flow
|
|
(Unaudited)
|
|
(In Thousands)
|
|
|
|
|
|
Three Months Ending
|
|
|
|
March 31,
|
|
|
|
|
2012
|
|
|
|
2011
|
|
|
Operating activities:
|
|
|
|
|
|
Net loss
|
|
$
|
(7,490
|
)
|
|
$
|
(3,471
|
)
|
|
Adjustments to reconcile net loss to net cash provided by operating
activities:
|
|
|
|
|
|
Amortization of intangible assets
|
|
|
916
|
|
|
|
941
|
|
|
Depreciation and amortization of property and equipment
|
|
|
2,203
|
|
|
|
1,895
|
|
|
Loss on disposal of property and equipment
|
|
|
79
|
|
|
|
-
|
|
|
Gain from extinguishment of asset retirement obligation
|
|
|
-
|
|
|
|
(124
|
)
|
|
Stock-based compensation
|
|
|
1,169
|
|
|
|
2,307
|
|
|
Accretion of asset retirement obligation
|
|
|
7
|
|
|
|
17
|
|
|
Amortization of premium / accretion of discount on marketable
securities
|
|
|
156
|
|
|
|
(3
|
)
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
Accounts receivable
|
|
|
370
|
|
|
|
4,011
|
|
|
Inventories
|
|
|
(325
|
)
|
|
|
(407
|
)
|
|
Prepaid expenses and other current assets
|
|
|
(1,748
|
)
|
|
|
(971
|
)
|
|
Other assets
|
|
|
160
|
|
|
|
(48
|
)
|
|
Accounts payable
|
|
|
(1,386
|
)
|
|
|
1,037
|
|
|
Accrued compensation
|
|
|
(2,399
|
)
|
|
|
(4,324
|
)
|
|
Other accrued liabilities
|
|
|
3,646
|
|
|
|
2,570
|
|
|
Deferred revenues
|
|
|
5,235
|
|
|
|
3,856
|
|
|
Net cash provided by operating activities
|
|
|
593
|
|
|
|
7,286
|
|
|
|
|
|
|
|
|
Investing activities:
|
|
|
|
|
|
Increase in restricted cash
|
|
|
-
|
|
|
|
(46
|
)
|
|
Purchase of property and equipment
|
|
|
(2,107
|
)
|
|
|
(891
|
)
|
|
Purchase of marketable securities
|
|
|
(8,926
|
)
|
|
|
(27,104
|
)
|
|
Proceeds from sale of marketable securities
|
|
|
5,000
|
|
|
|
-
|
|
|
Proceeds from maturities of marketable securities
|
|
|
6,024
|
|
|
|
-
|
|
|
Net cash used in investing activities
|
|
|
(9
|
)
|
|
|
(28,041
|
)
|
|
|
|
|
|
|
|
Financing activities:
|
|
|
|
|
|
Proceeds from exercises of stock options
|
|
|
94
|
|
|
|
1,485
|
|
|
Net cash provided by financing activities
|
|
|
94
|
|
|
|
1,485
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash and cash equivalents
|
|
|
164
|
|
|
|
26
|
|
|
|
|
|
|
|
|
Net increase (decrease) in cash and cash equivalents
|
|
|
842
|
|
|
|
(19,244
|
)
|
|
Cash and cash equivalents:
|
|
|
|
|
|
Beginning of the period
|
|
|
25,762
|
|
|
|
72,396
|
|
|
End of the period
|
|
|
26,604
|
|
|
|
53,152
|
|
|
|
|
|
|
|
|
Marketable securities at the end of period
|
|
|
35,546
|
|
|
|
28,836
|
|
|
|
|
|
|
|
|
Cash, cash equivalents and marketable securities
|
|
$
|
62,150
|
|
|
$
|
81,988
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP to Non-GAAP Financial Information
In this press release, in addition to GAAP financial results, we present
Adjusted EBITDA because we believe it assists investors and analysts in
comparing our performance across reporting periods on a consistent basis
by excluding items that we do not believe are indicative of our core
operating performance. In addition, we use Adjusted EBITDA to evaluate
the effectiveness of our business strategies.
A reconciliation of GAAP net loss to Adjusted EBITDA is included in the
table below.
|
|
|
Codexis, Inc.
|
|
Reconciliation of GAAP Net Loss to Adjusted EBITDA
|
|
(Unaudited)
|
|
(In Thousands)
|
|
|
|
|
|
Three Months Ending
|
|
|
|
March 31,
|
|
Calculation of Adjusted EBITDA
|
|
|
2012
|
|
|
|
2011
|
|
|
Net loss
|
|
$
|
(7,490
|
)
|
|
$
|
(3,471
|
)
|
|
Adjustments:
|
|
|
|
|
|
Minus: Interest income
|
|
|
(75
|
)
|
|
|
(49
|
)
|
|
Plus: Income taxes
|
|
|
197
|
|
|
|
158
|
|
|
Plus: Depreciation and amortization
|
|
|
3,119
|
|
|
|
2,836
|
|
|
Plus: Stock-based compensation
|
|
|
1,169
|
|
|
|
2,286
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
|
|
$
|
(3,080
|
)
|
|
$
|
1,760
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA has limitations as an analytical tool. Some of these
limitations are:
-
Adjusted EBITDA does not reflect our cash expenditures, or future
requirements, for capital expenditures or contractual commitments;
-
Adjusted EBITDA does not reflect changes in, or cash requirements for,
our working capital needs;
-
Although depreciation and amortization are non-cash charges, the
assets being depreciated and amortized will often have to be replaced
in the future, and Adjusted EBITDA does not reflect any cash
requirements for such replacements; and
-
Non-cash compensation is and will remain a key element of our overall
long-term incentive compensation package, although we exclude it as an
expense when evaluating our ongoing operating performance for a
particular period.
Because of these limitations, Adjusted EBITDA should not be considered
in isolation or as a substitute for performance measures calculated in
accordance with GAAP. We compensate for these limitations by relying
primarily on our GAAP results and using Adjusted EBITDA only
supplementally.
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