Solazyme Reports Fourth Quarter and Fiscal Year 2011 Results
-
Continues Commercial Momentum for Algenist® and
Solazyme Roquette Nutritionals
-
Commences Operations at Peoria Plant and Solazyme Roquette
Nutritionals Commences Operations at Phase 1 Facility
-
Delivers 100 percent of Commitment for Algal Oil for the Navy Green
Strike Program Ahead of Schedule
SOUTH SAN FRANCISCO, Calif.--(BUSINESS WIRE)--
Solazyme,
Inc. (NASDAQ:SZYM), a renewable oil and bioproducts company,
announced today financial results for the fourth quarter and fiscal year
ended December 31, 2011 and recent key corporate highlights.
"In 2011, Solazyme made significant progress toward commercializing our
valuable technology platform, including launching our Algenist skincare
line and our Solazyme Roquette Nutritionals business," said Jonathan
Wolfson, CEO, Solazyme. "Recently, we commenced operations at our
manufacturing plant in Peoria, Illinois and Solazyme Roquette
Nutritionals commenced operations at its Phase 1 facility in France.
Over the past year, we delivered on all of our partner commitments,
signed MOUs and JDAs to meet the majority of our long-term feedstock
needs, and progressed on important partnerships. We believe we've set
the stage for commercial expansion in 2012 and 2013."
"Our unique technology platform is capable of rapidly prototyping new
triglyceride oils that we expect will allow our customers to develop new
and improved products and change the industrial playing field," added
Mr. Wolfson.
Financial Results
Total revenue for the fourth quarter ended December 31, 2011 was $14.9
million compared with $23.2 million in the fourth quarter of 2010. The
fourth quarter of 2010 included a $15 million license payment from
Roquette, compared with a $5 million license payment received in the
comparable quarter in 2011. Fourth quarter GAAP net loss attributable to
Solazyme, Inc. common stockholders was $15.6 million, which compares
with net income attributable to common stockholders of $2.9 million in
the prior year period. On a non-GAAP basis, the net loss attributable to
Solazyme, Inc. common stockholders was $12.2 million for the fourth
quarter of 2011, compared with net income attributable to common
stockholders of $5.9 million in the prior year quarter. A reconciliation
of GAAP to non-GAAP results is included below.
Total revenue for the fiscal year ended December 31, 2011 was $39.0
million compared with $38.0 million in the prior year. Fiscal year 2011
GAAP net loss attributable to Solazyme, Inc. common stockholders was
$54.0 million, compared with $16.4 million in the prior year. On a
non-GAAP basis, the net loss attributable to Solazyme, Inc. common
stockholders was $39.4 million for 2011, compared with $11.8 million in
2010.
"Our primary focus throughout 2012 will be on ramping our commercial
capacity," said Tyler Painter, CFO, Solazyme. "With approximately $244
million in cash, cash equivalents and marketable securities at year end,
we believe we are well positioned to execute our plans and remain on
track to achieve our commercialization targets."
Recent Business Highlights
-
Maersk tests SoladieselRD®
during 6,500 nautical mile commercial voyage. The test, which
substituted Solazyme's renewable fuel for diesel, took place aboard
the 300-meter Maersk Kalmar container vessel traveling from Northern
Europe to India over a one-month period, burning about 33,000 liters
of Solazyme's renewable advanced biofuel, SoladieselRD®.
-
Expanded Algenist skincare collection by launching Firming &
Lifting Line. The Algenist Firming & Lifting line was launched in
over 1,100 retail locations worldwide including over 300 Sephora US
and Canada stores, 580 Sephora EMEA stores and 308 Sephora inside
jcpenney stores.
-
Partnered with Dynamic Fuels to supply the U.S. Navy with the
single largest purchase of advanced biofuel in government history.
Dynamic Fuels was awarded a contract to supply the U.S. Navy with
approximately 1.7 million liters of renewable fuels and is partnering
with Solazyme to help fulfill the contract. The fuel will be used as
part of the Navy's efforts to develop a "Green Strike Group" composed
of vessels and ships powered by advanced biofuels. Solazyme delivered
100 percent of its commitment of Algal Oil to Dynamic Fuels ahead of
schedule in February 2012.
2011 Highlights
-
Solazyme successfully developed multiple tailored oils customized for
specific market areas.
-
Solazyme signed MOUs and JDAs that, coupled with the Bunge Joint
Venture Framework Agreement, cover approximately 90% of its feedstock
needs to reach its 2015 manufacturing targets.
-
Solazyme successfully demonstrated its fuels in a commercial airline
flight, Genentech's bus fleet, cars, helicopters, a commercial cargo
ship and a wide variety of naval vessels.
-
Solazyme delivered over 407,000 liters of finished in-spec fuel to the
U.S. Navy and is currently working on two additional active programs
to deliver fuel to the U.S. Navy.
-
Solazyme Roquette Nutritionals introduced its first wave of products,
completed the Phase I facility in France and is building out the Phase
II facility.
-
Solazyme entered into a Joint Development Agreement funded by Bunge
Limited, and signed a Joint Venture Framework Agreement with Bunge
that sets forth the key terms for the anticipated JV to build a
100,000 MT renewable oils plant in Brazil.
-
Solazyme signed a new agreement expanding its Unilever partnership
into tailored food oils, including a non-binding multi-year offtake
agreement.
-
Solazyme signed a Joint Development Agreement and non-binding,
multi-year offtake agreement with Dow.
-
Solazyme signed a non-binding, multi-year offtake agreement with
United Airlines.
-
Solazyme launched its commercial skincare brand, Algenist, in March
and currently has distribution in over 1,100 stores with leading
partners such as Sephora, QVC and Space NK.
-
Solazyme purchased a fermentation facility in Peoria, Illinois in May,
is converting it into a commercial and development facility, and
successfully began operations in less than seven months.
-
Solazyme significantly bolstered its financials, raising approximately
$216 million in gross proceeds from its initial public offering and
ended the year with approximately $244 million in cash, cash
equivalents and marketable securities.
Conference Call
Solazyme will hold a conference call for investors on Feb. 21, 2012 at
1:30 p.m. PT (4:30 p.m. ET). Investors may access the call by dialing
973-409-9250. A live webcast of the call will be available from the
Investor Relations section of www.solazyme.com.
A recording of the call will also be available by calling 404-537-3406;
access code 48899250 beginning approximately two hours after the call,
and will be available for one week. A webcast replay from today's call
will also be available from the Investor Relations section of www.solazyme.com
approximately two hours after the call and will be available for up to
thirty days.
About Solazyme, Inc.
Solazyme, Inc. is a renewable oil and bioproducts company that
transforms a range of low-cost plant-based sugars into high-value oils.
Headquartered in South San Francisco, Solazyme's renewable products can
replace or enhance oils derived from the world's three existing sources
— petroleum, plants and animal fats. Initially, Solazyme is focused on
commercializing its products into three target markets: (1) chemicals
and fuels, (2) nutrition and (3) skin and personal care. For more
information, please visit our website: http://www.solazyme.com
Solazyme®, the Solazyme logo and other trademarks or service names are
the trademarks of Solazyme, Inc.
Non-GAAP Financial Measures
This press release includes the following financial measures defined as
"non-GAAP financial measures" by the Securities and Exchange Commission:
non-GAAP net loss and non-GAAP net loss per share. These measures may be
different from non-GAAP financial measures used by other companies. The
presentation of this financial information, which is not prepared under
any comprehensive set of accounting rules or principles, is not intended
to be considered in isolation or as a substitute for the financial
information prepared and presented in accordance with generally accepted
accounting principles. For a reconciliation of these non-GAAP financial
measures to the nearest comparable GAAP measures, see "Reconciliation of
GAAP to Non-GAAP Net-Loss Per Share" included in the tables to this
press release.
These non-GAAP measures are provided to enhance investors' overall
understanding of Solazyme's current financial performance and Solazyme's
prospects for the future. Specifically, Solazyme believes the non-GAAP
measures provide useful information to both management and investors by
excluding certain expenses that may not be indicative of its core
operating results and business outlook.
For its internal budgeting process, Solazyme's management uses financial
measures that do not include stock-based compensation expense or special
one-time expenses such as non-cash losses due to warrant revaluations.
In addition to the corresponding GAAP measures, Solazyme's management
also uses the foregoing non-GAAP measures in reviewing the financial
results of Solazyme. Solazyme excludes stock-based compensation expenses
and special non-cash one-time charges from its non-GAAP measures
primarily because they are non-cash expenses that management does not
believe are reflective of ongoing operating results.
Forward Looking Statements
This press release contains certain forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995
about Solazyme, including statements that involve risks and
uncertainties concerning: the commercialization plans and
commercialization timetable for its tailored oils and applications
thereof; product revenue growth in 2012; the future market demand for
its tailored oils; the timetable of its manufacturing scale-up and the
volume of oils that may be produced from such scale-up; the ability of
its feedstock agreements to support its tailored oil production capacity
requirements; the ability of its customers to develop new products using
its oils; the timetable for commercial expansion; its entry into new
markets and partnerships; its ability to execute on its plans and
achieve commercialization targets; and the timetable for completion of
the production plant in Brazil; the timetable for production at the
Phase 1 facility. When used in this press release, the words "will",
"expects", "intends" and other similar expressions and any other
statements that are not historical facts are intended to identify those
assertions as forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. Any such statement may
be influenced by a variety of factors, many of which are beyond the
control of Solazyme, that could cause actual outcomes and results to be
materially different from those projected, described, expressed or
implied in this press release due to a number of risks and
uncertainties. Potential risks and uncertainties include, among others:
Solazyme's limited operating history; its limited history in
commercializing products; implementation risk in deploying new
technologies; its limited experience in constructing and operating
commercial manufacturing facilities; delays related to construction,
facilitization or start-up of production facilities; its access to
adequate supply of feedstock on favorable terms; its ability to enter
into and maintain strategic collaborations; its ability to obtain
requisite regulatory approvals; and its access, on favorable terms, to
any required financing. Accordingly, no assurances can be given that any
of the events anticipated by the forward-looking statements will
transpire or occur, or if any of them do so, what impact they will have
on the results of operations or financial condition of Solazyme.
In addition, please refer to the documents that Solazyme, Inc. files
with the Securities and Exchange Commission, including its Quarterly
Report on Form 10-Q for the quarter ended September 30, 2011 for a
discussion of these and other risks. You are cautioned not to place
undue reliance on forward-looking statements, which speak only as of the
date of this press release. Solazyme is not under any duty to update any
of the information in this press release.
|
SOLAZYME, INC.
|
|
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
Three and twelve months ended December 31, 2011 and 2010
|
|
In thousands, except per share amounts
|
|
|
|
Three Months Ended December 31,
|
|
Year Ended December 31,
|
|
|
|
|
2011
|
|
|
|
2010
|
|
|
|
2011
|
|
|
|
2010
|
|
|
Revenues
|
|
(Unaudited)
|
|
(Unaudited)
|
|
Research and development programs
|
|
$
|
8,251
|
|
|
$
|
8,170
|
|
|
$
|
26,793
|
|
|
$
|
22,970
|
|
|
Product revenue
|
|
|
1,638
|
|
|
|
-
|
|
|
|
7,173
|
|
|
|
-
|
|
|
License fees
|
|
|
5,000
|
|
|
|
15,000
|
|
|
|
5,000
|
|
|
|
15,000
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues
|
|
|
14,889
|
|
|
|
23,170
|
|
|
|
38,966
|
|
|
|
37,970
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses (1)
|
|
|
|
|
|
|
|
|
|
Cost of product revenue
|
|
|
828
|
|
|
|
-
|
|
|
|
2,420
|
|
|
|
-
|
|
|
Research and development
|
|
|
16,921
|
|
|
|
12,386
|
|
|
|
45,613
|
|
|
|
34,227
|
|
|
Sales, general and administrative
|
|
|
12,835
|
|
|
|
6,007
|
|
|
|
41,426
|
|
|
|
17,422
|
|
|
Total operating expenses
|
|
|
30,584
|
|
|
|
18,393
|
|
|
|
89,459
|
|
|
|
51,649
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from operations
|
|
|
(15,695
|
)
|
|
|
4,777
|
|
|
|
(50,493
|
)
|
|
|
(13,679
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense)
|
|
|
|
|
|
|
|
|
|
Net interest and other income
|
|
|
114
|
|
|
|
142
|
|
|
|
229
|
|
|
|
37
|
|
|
Loss from change in fair value of warrant liability
|
|
|
-
|
|
|
|
(2,000
|
)
|
|
|
(3,637
|
)
|
|
|
(2,638
|
)
|
|
Total other income (expense)
|
|
|
114
|
|
|
|
(1,858
|
)
|
|
|
(3,408
|
)
|
|
|
(2,601
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
|
(15,581
|
)
|
|
|
2,919
|
|
|
|
(53,901
|
)
|
|
|
(16,280
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Accretion on redeemable convertible preferred stock
|
|
|
-
|
|
|
|
(37
|
)
|
|
|
(60
|
)
|
|
|
(140
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to Solazyme, Inc. common
stockholders
|
|
$
|
(15,581
|
)
|
|
$
|
2,882
|
|
|
$
|
(53,961
|
)
|
|
$
|
(16,420
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per share attributable to Solazyme, Inc. common
stockholders:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
(0.26
|
)
|
|
$
|
0.24
|
|
|
$
|
(1.35
|
)
|
|
$
|
(1.42
|
)
|
|
Diluted
|
|
$
|
(0.26
|
)
|
|
$
|
0.06
|
|
|
$
|
(1.35
|
)
|
|
$
|
(1.42
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in computing earnings (loss) per share:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
59,703
|
|
|
|
11,895
|
|
|
|
39,934
|
|
|
|
11,540
|
|
|
Diluted
|
|
|
59,703
|
|
|
|
49,126
|
|
|
|
39,934
|
|
|
|
11,540
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP to non-GAAP basic net earnings (loss) per
share:
|
|
Three Months Ended December 31,
|
|
Year Ended December 31,
|
|
In thousands, except per share amounts
|
|
|
2011
|
|
|
|
2010
|
|
|
|
2011
|
|
|
|
2010
|
|
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
Net income (loss) attributable to Solazyme, Inc. common stockholders
|
|
$
|
(15,581
|
)
|
|
$
|
2,882
|
|
|
$
|
(53,961
|
)
|
|
$
|
(16,420
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Loss from change in fair value of warrant liability
|
|
|
-
|
|
|
|
2,000
|
|
|
|
3,637
|
|
|
|
2,638
|
|
|
(1) Operating expenses include stock-based compensation expense as
follows:
|
|
|
|
|
|
|
|
|
|
Research and development
|
|
|
846
|
|
|
|
227
|
|
|
|
2,413
|
|
|
|
509
|
|
|
Sales, general and administrative
|
|
|
2,502
|
|
|
|
770
|
|
|
|
8,510
|
|
|
|
1,443
|
|
|
Total stock-based compensation expense
|
|
|
3,348
|
|
|
|
997
|
|
|
|
10,923
|
|
|
|
1,952
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to Solazyme, Inc. common
stockholders (non-GAAP)
|
|
$
|
(12,233
|
)
|
|
$
|
5,879
|
|
|
$
|
(39,401
|
)
|
|
$
|
(11,830
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings (loss) per share attributable to Solazyme, Inc.
common stockholders (GAAP)
|
|
$
|
(0.26
|
)
|
|
$
|
0.24
|
|
|
$
|
(1.35
|
)
|
|
$
|
(1.42
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Loss from change in fair value of warrant liability
|
|
|
-
|
|
|
|
0.17
|
|
|
|
0.09
|
|
|
|
0.22
|
|
|
Stock-based compensation expense
|
|
|
0.06
|
|
|
|
0.08
|
|
|
|
0.27
|
|
|
|
0.17
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings (loss) per share attributable to Solazyme,Inc.
common stockholders (non-GAAP)
|
|
$
|
(0.20
|
)
|
|
$
|
0.49
|
|
|
$
|
(0.99
|
)
|
|
$
|
(1.03
|
)
|
|
Diluted earnings (loss) per share attributable to Solazyme,Inc.
common stockholders (non-GAAP)
|
|
$
|
(0.20
|
)
|
|
$
|
0.12
|
|
|
$
|
(0.99
|
)
|
|
$
|
(1.03
|
)
|
|
SOLAZYME, INC.
|
|
|
|
|
|
Consolidated Balance Sheets
|
|
December 31,
|
|
December 31,
|
|
In thousands
|
|
|
2011
|
|
|
|
2010
|
|
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
Current assets
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
28,780
|
|
|
$
|
32,497
|
|
|
Marketable securities
|
|
|
214,944
|
|
|
|
49,533
|
|
|
Accounts receivable
|
|
|
4,029
|
|
|
|
670
|
|
|
Unbilled revenue
|
|
|
3,889
|
|
|
|
3,467
|
|
|
Inventories
|
|
|
3,129
|
|
|
|
-
|
|
|
Prepaids and other current assets
|
|
|
4,122
|
|
|
|
1,816
|
|
|
|
|
|
|
|
|
Total current assets
|
|
|
258,893
|
|
|
|
87,983
|
|
|
|
|
|
|
|
|
Property, plant and equipment - net
|
|
|
25,985
|
|
|
|
5,693
|
|
|
Other assets
|
|
|
346
|
|
|
|
308
|
|
|
|
|
|
|
|
|
Total assets
|
|
$
|
285,224
|
|
|
$
|
93,984
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities, redeemable convertible
preferred stock and stockholders' equity (deficit)
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
Accounts payable
|
|
$
|
11,525
|
|
|
$
|
6,137
|
|
|
Accrued liabilities
|
|
|
9,288
|
|
|
|
4,320
|
|
|
Current portion of long-term debt
|
|
|
5,289
|
|
|
|
50
|
|
|
Deferred revenue
|
|
|
3,014
|
|
|
|
1,363
|
|
|
Preferred stock warrant liability
|
|
|
-
|
|
|
|
2,961
|
|
|
Other current liabilities
|
|
|
96
|
|
|
|
-
|
|
|
|
|
|
|
|
|
Total current liabilities
|
|
|
29,212
|
|
|
|
14,831
|
|
|
|
|
|
|
|
|
Other liabilities
|
|
|
491
|
|
|
|
728
|
|
|
|
|
|
|
|
|
Long-term debt
|
|
|
14,963
|
|
|
|
179
|
|
|
|
|
|
|
|
|
Total liabilities
|
|
|
44,666
|
|
|
|
15,738
|
|
|
|
|
|
|
|
|
Commitments and contingencies
|
|
|
|
|
|
|
|
|
|
|
|
Redeemable convertible preferred stock
|
|
|
|
|
|
Preferred stock - Series A
|
|
|
-
|
|
|
|
2,991
|
|
|
Preferred stock - Series B
|
|
|
-
|
|
|
|
8,645
|
|
|
Preferred stock - Series C
|
|
|
-
|
|
|
|
56,943
|
|
|
Preferred stock - Series D
|
|
|
-
|
|
|
|
59,734
|
|
|
|
|
|
|
|
|
Total redeemable convertible preferred stock
|
|
|
-
|
|
|
|
128,313
|
|
|
|
|
|
|
|
|
Stockholders' equity (deficit)
|
|
|
|
|
|
Common stock
|
|
|
60
|
|
|
|
12
|
|
|
Additional paid-in capital
|
|
|
348,083
|
|
|
|
4,393
|
|
|
Notes receivable from stockholders
|
|
|
-
|
|
|
|
(1,597
|
)
|
|
Accumulated other comprehensive loss
|
|
|
(789
|
)
|
|
|
(40
|
)
|
|
Accumulated deficit
|
|
|
(106,796
|
)
|
|
|
(52,835
|
)
|
|
|
|
|
|
|
|
Total stockholders' equity (deficit)
|
|
|
240,558
|
|
|
|
(50,067
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities, redeemable convertible preferred stock and
stockholders' equity (deficit)
|
|
$
|
285,224
|
|
|
$
|
93,984
|
|
Solazyme, Inc.
Corporate Communications:
Genet Garamendi
press@solazyme.com
or
The
Blueshirt Group
Chris Danne, 415-217-7722
chris@theblueshirtgroup.com
Maria
Riley, 415-217-7722
maria@theblueshirtgroup.com
Source: Solazyme, Inc.
News Provided by Acquire Media
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