- Gained EPA approval and commercially launched Venerate™ bioinsecticide
- Completed installation of two 20,000 liter fermentation tanks at our Michigan facility and initiated commercial production of fermentation products
- Re-iterates guidance to at least double revenues year-over-year
DAVIS, Calif., May 13, 2014 (GLOBE NEWSWIRE) -- Marrone Bio Innovations, Inc. (Nasdaq:MBII), a provider of bio-based pest management and plant health products, today announced financial results for the first quarter March 31, 2014.
Financial Highlights for the First Quarter of 2014
- Revenues for the first quarter 2014 totaled $2.8 million, compared to $2.7 million for the first quarter of 2013, in-line with the company's expectations against the headwinds of severe weather in all of our growing regions
- Net loss of $10.2 million, compared to net loss of $10.7 million in the first quarter of 2013
"Our numerous achievements in the first quarter set the stage for our growth through the remainder of the year and beyond," said Pam Marrone, Chief Executive Officer of Marrone Bio Innovations. "We expanded our footprint both in North and South America, with Regalia® MAXX registered in six Latin American countries, and also submitted our biofumigant product MBI-601 for EPA registration. Marrone Bio Innovations is leading the shift toward sustainable and effective biological solutions as awareness and enthusiasm for the category continue to grow."
Recent Business Highlights
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Launched new product Venerate in the United States. Venerate controls a broad spectrum of pest insects and features multiple modes of action, a favorable environmental profile and holds an exemption from maximum residue level (MRL) tolerances.
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Completed construction of Phases 1A and 1B of the Michigan manufacturing facility which includes two 20,000 liter fermentation tanks and produced initial runs of Grandevo and Regalia.
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Increased penetration of Regalia and Grandevo® in California nut crops.
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Regalia enhanced the disease control program in canola. Achieved good results of Regalia against soil and foliar potato diseases and MBI-110 against late blight.
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Grandevo and Venerate field trials continue to show excellent control of a wide range of insect pests such as whiteflies, thrips, psyllids, aphids, fruit flies, stinkbugs and Lygus in fruits, nuts vegetables, and cotton in the U.S. and Europe.
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Haven™ protected yield by reducing sunburn on Merlot and table grapes in trials in Chile.
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Received registration for Regalia MAXX biofungicide in Peru. Peru is now the sixth country in Latin America to approve the use of Regalia MAXX for control of a wide variety of bacterial and fungal diseases in agricultural crops.
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Received a U.S. patent for Regalia biofungicide covering methods for increasing plant growth, root initiation and extension. The patent highlights MBI's capability to add unique intellectural property to in-licensed technology.
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Submitted Grandevo and Venerate for registration in Mexico. Our bioinsecticides together with Regalia MAXX biofungicide provide Mexican farmers a powerful crop protection tool that delivers the benefits of a bio-based product in an export-centric region.
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Submitted MBI-601 biofumigant pipeline product to the EPA for registration. MBI-601 controls parasitic nematodes and plant diseases in high value crops such as strawberries and tomatoes.
- Secured a license from Kao Corporation for use of an active ingredient in forthcoming MBI anti-transpirant product Haven and signed an agreement for access to several biopesticides from The New Zealand Institute for Plant & Food Research.
"Our commercial progress continued in the first quarter with expansion into new regions, the development of new customers and deeper penetration into our existing customer base," commented Chief Operating Officer Hector Absi. "Despite challenging weather conditions persisting across several different regions of the United States we are pleased with our progress and look forward to the upcoming planting season."
Chief Financial Officer, Jim Boyd commented, "After just two months with the company I am excited by the momentum of the company and the exciting growth opportunities that are in front of us. Everyone here is working tremendously hard to make this company the biological solutions leader in the agriculture industry."
Business Outlook
For the full year 2014 the Company continues to expect net revenues to at least double compared to the full year 2013. The company also expects to launch at least 1-2 new products in addition to its insecticide Venerate.
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 May 13, 2014. To access the conference call, dial (760) 298-5095 or (877) 303-6220 (toll-free) and enter passcode 28691286. 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 June 12, 2014. To access the replay, please dial (855) 859-2056 or (404) 537-3406 and enter passcode 28691286.
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 Form 10-K that the Company filed with the Securities and Exchange Commission on March 25, 2014.
| MARRONE BIO INNOVATIONS, INC. | ||
| Condensed Consolidated Balance Sheets | ||
| (In Thousands) | ||
|
MARCH 31, 2014 |
DECEMBER 31, 2013 |
|
| (Unaudited) | ||
| Assets | ||
| Current assets: | ||
| Cash and cash equivalents | $ 21,298 | $ 24,455 |
| Short-term investments | 2,664 | 13,677 |
| Accounts receivable | 7,231 | 6,215 |
| Accounts receivable from related parties | 1,230 | 903 |
| Inventories, net | 12,837 | 11,666 |
| Prepaid expenses and other current assets | 1,765 | 1,737 |
| Total current assets | 47,025 | 58,653 |
| Property, plant and equipment, net | 15,795 | 9,420 |
| Other assets | 639 | 806 |
| Total assets | $ 63,459 | $ 68,879 |
| Liabilities and stockholders' equity | ||
| Current liabilities: | ||
| Accounts payable | $ 8,563 | $ 4,460 |
| Accrued liabilities | 3,040 | 4,380 |
| Deferred revenue, current portion | 1,017 | 1,209 |
| Deferred revenue from related parties, current portion | 31 | 131 |
| Capital lease obligations, current portion | 1,680 | 1,401 |
| Debt, current portion | 123 | 157 |
| Total current liabilities | 14,454 | 11,738 |
| Deferred revenue, less current portion | 695 | 744 |
| Deferred revenue from related parties, less current portion | 404 | 628 |
| Capital lease obligations, less current portion | 1,059 | 1,134 |
| Debt, less current portion | 12,312 | 12,280 |
| Other liabilities | 574 | 571 |
| Total liabilities | 29,498 | 27,095 |
| Commitments and contingencies | ||
| Stockholders' equity: | ||
| Preferred stock | — | — |
| Common stock | — | — |
| Additional paid in capital | 149,643 | 147,220 |
| Accumulated deficit | (115,682) | (105,436) |
| Total stockholders' equity | 33,961 | 41,784 |
| Total liabilities and stockholders' equity | $ 63,459 | $ 68,879 |
| MARRONE BIO INNOVATIONS, INC. | ||
| Condensed Consolidated Statements of Operations | ||
| (In Thousands, Except Per Share Amount) | ||
| (Unaudited) | ||
|
THREE MONTHS ENDED MARCH 31 |
||
| 2014 | 2013 | |
| Revenues: | ||
| Product | $ 2,097 | $ 2,373 |
| License | 45 | 48 |
| Related party | 648 | 309 |
| Total revenues | 2,790 | 2,730 |
| Cost of product revenues, including cost of product revenues to related parties of $192 and $194 for the three months ended March 31, 2014 and 2013, respectively | 1,652 | 1,795 |
| Gross profit | 1,138 | 935 |
| Operating expenses: | ||
| Research, development and patent | 4,282 | 3,283 |
| Selling, general and administrative | 6,330 | 2,847 |
| Total operating expenses | 10,612 | 6,130 |
| Loss from operations | (9,474) | (5,195) |
| Other income (expense): | ||
| Interest income | 10 | 1 |
| Interest expense | (773) | (1,985) |
| Change in estimated fair value of financial instruments | -- | (3,563) |
| Other expense, net | (9) | (7) |
| Total other expense, net | (772) | (5,554) |
| Loss before income taxes | (10,246) | (10,749) |
| Income taxes | -- | -- |
| Net loss | $ (10,246) | $ (10,749) |
| Net loss per common share: | ||
| Basic and diluted | $ (0.52) | $ (8.48) |
| Weighted-average shares outstanding used in computing net loss per common share: | ||
| Basic and diluted | 19,518 | 1,268 |
| MARRONE BIO INNOVATIONS, INC. | ||
| Condensed Consolidated Statements of Cash Flows | ||
| (In Thousands) | ||
| (Unaudited) | ||
|
THREE MONTHS ENDED MARCH 31 |
||
| 2014 | 2013 | |
| Cash flows from operating activities | ||
| Net loss | $ (10,246) | $ (10,749) |
| Adjustments to reconcile net loss to net cash used in operating activities: | ||
| Depreciation and amortization | 488 | 184 |
| Share-based compensation | 1,522 | 249 |
| Non-cash interest expense | 248 | 1,467 |
| Change in estimated fair value of financial instruments | -- | 3,563 |
| Amortization of investment securities premiums/discounts, net | 9 | -- |
| Net changes in operating assets and liabilities: | ||
| Accounts receivable | (1,016) | 59 |
| Accounts receivable from related parties | (327) | (132) |
| Inventories | (1,171) | (495) |
| Prepaid expenses and other assets | (224) | (558) |
| Accounts payable | 2,737 | 138 |
| Accrued and other liabilities | (1,337) | (1,320) |
| Deferred revenue | (241) | (48) |
| Deferred revenue from related parties | (324) | (33) |
| Net cash used in operating activities | (9,882) | (7,675) |
| Cash flows from investing activities | ||
| Purchases of property, plant and equipment | (5,044) | (432) |
| Purchase of short-term investments | (49) | -- |
| Maturities of short-term investments | 11,053 | -- |
| Net cash provided by (used in) investing activities | 5,960 | (432) |
| Cash flows from financing activities | ||
| Repayment of debt | (67) | (9,224) |
| Repayment of capital leases | (69) | (25) |
| Change in restricted cash | -- | 9,139 |
| Proceeds from exercise of stock options | 851 | 2 |
| Proceeds from exercise of common stock warrants | 50 | -- |
| Net cash provided by (used in) financing activities | 765 | (108) |
| Net decrease in cash and cash equivalents | (3,157) | (8,215) |
| Cash and cash equivalents, beginning of year | 24,455 | 10,006 |
| Cash and cash equivalents, end of period | $ 21,298 | $ 1,791 |
| Supplemental disclosure of cash flow information | ||
| Cash paid for interest, net of capitalized interest of $469 and $113 for the three months ended March 31, 2014 and 2013, respectively | $ 525 | $ 518 |
| Supplemental disclosure of non-cash investing and financing activities | ||
| Property, plant and equipment included in accounts payable and accrued liabilities | $ 2,040 | $ -- |
| Equipment acquired under capital leases | $ 453 | $ 77 |
| Interest added to the principal of convertible notes | $ -- | $ 628 |