BioAmber Inc. (NYSE:BIOA), a leader in renewable materials, today announced financial and operational results for the three months ending September 30, 2016.
|•||Q3 2016 Sales of bio-succinic acid were $3.7 million, an increase of 45% over the previous quarter|
|•||The unit cost of bio-succinic acid continues to improve with Q3 2016 reporting a further 12% reduction vs Q2 2016|
|•||The Sarnia plant operations continue to improve with fermentation yields, plant uptime and percentage of ‘on-spec’ products all increasing in Q3 vs Q2 2016|
|•||Cash on hand was $15.9 million as of September 30th, 2016, compared to cash on hand of $5.5 million as of June 30th, 2016|
|•||Jean-Francois Huc, BioAmber’s Chief Executive Officer stated: “We have continued to validate our production process at a commercial scale with our biotechnology, as measured by fermentation performance, achieving operating targets since inception. Our purification process has also improved every quarter since we started up Sarnia, while our plant uptime and percentage of on-spec product continue to meet target levels.” He added, “We will steadily increase our throughput towards full capacity and focus on further efficiency gains throughout our production process.”|
Q3 2016 Financial Results
Revenues for the quarter ended September 30, 2016 were $3.7 million. The 45% increase relative to the previous quarter was driven by an increase in the quantity of bio-succinic acid sold.
Cost of goods sold for the quarter ended September 30, 2016 was $5.0 million. The cost of goods per unit sold decreased by 12% in Q3 2016 relative to the previous quarter, as a result of the greater volume of succinic acid sold and improved operating performance, including higher yields, higher plant uptime and higher percentage of on-spec product in Q3 2016, relative to the previous quarter.
Research and development expenses for the quarter ended September 30, 2016 were $1.8 million, significantly lower than the $6.0 million incurred in the same period last year. The lower R&D expenses were the result of two factors. First, certain non-recurring Sarnia commissioning and start-up costs incurred in Q3 2015 were recorded as research and development expenses. Second, the Company has streamlined its R&D efforts over the past year, given that Sarnia is operational.
Sales and marketing expenses for the quarter ended September 30, 2016 were $479,000, down from the $921,000 incurred in the same period last year. This was due to the expanded commercial role that Mitsui assumed in 2016, particularly in Asia, which allowed the Company to reduce the size of its global commercial team. As a result, there has been a decrease in sales and marketing salaries, benefits and associated costs, including stock-based compensation and travel expenses.
General and administrative expenses for the quarter ended September 30, 2016 were $1.8 million, down from $2.2 million for the same period last year. This was the result of the Company’s efforts to reduce headcount at the corporate level, which resulted in a decrease in salaries & benefits, recruitment costs and stock-based compensation expense. These efforts were partially offset by an increase in Sarnia headcount as the facility transitioned from construction to production.
Depreciation of property and equipment and amortization of intangible asset expense were $1.2 million for the quarter ended September 30, 2016, up significantly from $123,000 for the same period last year. This increase was due to the depreciation of Sarnia facility assets following the beginning of production in Q4 2015.
For the quarter ended September 30, 2016, the Company incurred a net financial charge of $3.2 million, compared to a financial gain of $1.6 million for the same period last year. This $4.7 million variation was mainly due to a non-cash mark-to-market adjustment change of $3.4 million on the warrants that were issued at the time of the initial public offering (IPO Warrants), as well as an adjustment on warrants issued in June 2009 and April 2011 (Legacy Warrants). It was also due to an increase in the end of term charge of $602,000 and to interest and other charges of $600,000 in connection with the repayment of the outstanding Tennenbaum loan in September 2016.
The Company recorded a net loss attributable to BioAmber Inc. shareholders of $6.2 million, or a loss of $0.21 per share for the quarter ended September 30, 2016, compared to a net loss of $7.0 million, or a loss of $0.27 per share for the same period last year.
The Adjusted Net Loss Attributable to BioAmber Inc. Shareholders for the quarter ended September 30, 2016 was $7.4 million, or a loss of $0.26 per share, compared to an Adjusted Net Loss Attributable to BioAmber Inc. Shareholders of $9.4 million, or a loss of $0.36 per share for the same period last year. Adjusted Net Loss Attributable to BioAmber Inc. Shareholders is a non-GAAP financial metric that excludes the impact of the change in fair value of the IPO and Legacy Warrants and the grant income from Sustainable Development Technology Canada (SDTC).
Please refer to Annex A: “Non-GAAP Financial Information—Adjusted Net Loss Attributable to BioAmber Inc. Shareholders” for more information regarding this non-GAAP financial metric.
Webcast and Conference Call Information
BioAmber will discuss these results on a live audio webcast, which will be available on the Internet to investors, members of the news media and the general public at 4:30 p.m. Eastern Time on November 3, 2016. To access the webcast of the conference call, go to the company’s website, www.bio-amber.com. Audio of the teleconference is also available by dialing:
North American callers: +1 (888) 390-0546 International callers: (416) 764-8688
Teleconference replays will be available through November 10, 2016: Domestic: 1-888-390-0541
International: 416-764-8677 Passcode: 534811# A replay of the webcast will also be available approximately two hours after the conclusion of the live webcast on BioAmber’s website, for a period of 30 days.
BioAmber (NYSE:BIOA) is a renewable materials company. Its innovative technology platform combines biotechnology and catalysis to convert renewable feedstock into building block materials that are used in a wide variety of everyday products including plastics, paints, textiles, food additives and personal care products. For more information visit www.bio-amber.com