Amyris Reports Another Strong Quarter of Recurring Revenue Growth

EMERYVILLE, Calif., March 12, 2020 /PRNewswire/ -- Amyris, Inc. (Nasdaq: AMRS), a global science and technology leader of pure, sustainable ingredients for the Health & Wellness and Clean Beauty markets, today announced preliminary unaudited financial results for the fourth quarter and fiscal year ended December 31, 2019.

"We delivered very strong top line revenue following our transition to higher margin, recurring product revenue," said John Melo, President and CEO of Amyris. "Today, we have a business model that combines a rapidly growing ingredients business with three, fast-growing Amyris consumer brands: Biossance skin care, Pipette baby care and our Purecane sweetener. This business model is underpinned by the leading Synthetic Biology platform and a portfolio of molecules that are delivering industry-leading growth in Clean Beauty and Health and Wellness markets. We have developed and commercially scaled more molecules from clean fermentation than any other company."

Continued Melo, "At a time when the world needs it most, Amyris provides a secure supply of sustainably-sourced products. We are making significant progress in reducing our production and operating costs and expect the combination of cost reduction actions that are well under way along with our continued strong growth to improve our adjusted EBITDA by about $100 million over 2019. Our consumer business is experiencing the fastest growth in our history during the first quarter and is expected to represent over $90 million in gross sales for 2020. Biossance.com is on track for over 300% growth in the first quarter after a record 2019. We are focused on keeping our people, customers and partners healthy during this unpredictable period facing the world."

Fourth Quarter 2019 Financial Results

• GAAP total revenue of $40.5 million, compared with $16.4 million for the fourth quarter of 2018.
• Products revenue for the quarter was $18.5 million compared with $12.1 million for the same period a year ago. Product associated royalties were $10.7 million for the quarter compared with $0.1 million for the fourth quarter of 2018.
• Grants and collaborations revenue was $11.4 million for the quarter compared with $4.2 million for the year-ago period.
• Sales, general and administrative expenses were $34.1 million for the fourth quarter of 2019 compared with $26.1 million for the year-ago period, primarily reflecting increased spending to support consumer products.
• Research and development expenses of $15.4 million for the quarter declined from $18.8 million reported for the fourth of 2018 resulting from reduced consulting expenses, lab supplies and equipment rental costs.
• GAAP net loss attributable to Amyris common stockholders for the quarter was $77.4 million, or $0.65 per basic and $0.70 per diluted share, compared with a GAAP net loss attributable to Amyris common stockholders for the fourth quarter of 2018 of $48.6 million, or $0.65 per basic and diluted share.
• Non-GAAP net loss for the quarter was $45.0 million, or $0.38 per basic share.  This compared with a non-GAAP net loss of $56.6 million, or $0.76 per basic share for the fourth quarter of 2018.

Year Ended December 31, 2019

• GAAP revenue for the year ended December 31, 2019 was $152.6 million, compared with $63.6 million for the same period of 2018.
• Product revenue was $59.9 million, up substantially from $33.6 million for the prior year period. Product associated royalties revenue was $54.0 million compared with $7.7 million for the prior year.
• GAAP net loss attributable to Amyris common stockholders for 2019 was $270.4 million, or $2.67 per basic share and $2.72 per diluted share.  This compared to a net loss of $223.1 million, or $3.69 per basic and diluted share for 2018.
• Non-GAAP net loss was $169.2 million, or $1.67 per basic share, compared to a non-GAAP net loss for 2018 of $171.0 million, or $2.83 per basic share.

Fiscal Year 2020 Goals

• Manage business toward reduced cash burn and further address capital structure and debt simplification while ensuring adequate cash available to invest in growth
• Focus on recurring revenue growth of 100% year over year while improving operating cash flow by over $100 million through the following actions:
• Increased product revenue coupled with lower manufacturing costs by moving more production to Brotas with lower cost manufacturing agreement
• Anticipated higher collaborations, licenses and royalties revenue
• Lower operating expenses due to non-recurring expense associated with accounting issues and compliance in 2019, operating expense management and positive change in our equipment leases.

FINANCIAL RESULTS AND NON-GAAP INFORMATION

To supplement our financial results and guidance presented on a GAAP basis, we use non-GAAP measures that we believe are helpful in understanding our results. These non-GAAP measures are among the factors management uses in planning and forecasting future periods. These non-GAAP financial measures also facilitate management's internal comparisons to Amyris's historical performance as well as comparisons to the operating results of other companies. Management believes these non-GAAP financial measures are useful to investors because they allow for greater transparency into the indicators used by management to understand, manage, and evaluate our business and make operating decisions. Our non-GAAP financial measures include the following:

Non-GAAP net income (loss) is calculated as GAAP net income/loss excluding impairment, stock-based compensation expense, gains or losses on divestiture, gains and losses from changes in the fair value of derivatives, losses on debt extinguishment, depreciation and amortization, deemed dividends, and losses allocated to participating securities.

Non-GAAP financial information is not prepared under a comprehensive set of accounting rules, and therefore, should only be read in conjunction with financial information reported under U.S. GAAP in order to understand Amyris's operating performance. A reconciliation of the non-GAAP financial measures presented in this release, including non-GAAP net loss, to the most directly comparable GAAP financial measure, is provided in the tables attached to this press release.

QUARTERLY CONFERENCE CALL TODAY

Amyris will discuss these results and provide a business update in a conference call scheduled for 4:30 p.m. ET (1:30 p.m. PT) today. Investors may access the call by dialing (877) 870-4263. Participants should ask to be joined to the Amyris, Inc. call.

A live audio webcast of this conference call and accompanying presentation is also available by visiting the investor relations section of the company's website at http://investors.amyris.com. A replay of the webcast will be available at the investor relations section of the company's website approximately two hours after the conclusion of the call.

About Amyris

Amyris, Inc. (Nasdaq:AMRS) is a science and technology leader in the research, development and production of sustainable ingredients for the Health & Wellness, Clean Beauty and Flavors & Fragrances markets.  Amyris applies its exclusive, advanced technology, including state-of-the-art machine learning, robotics and artificial intelligence to engineer yeast, that when combined with sugarcane syrup through fermentation, is converted to highly pure molecules for specialty ingredients. Amyris manufactures sustainably-sourced ingredients at industrial scale for B2B partners and further distribution to more than 3,000 of the world's top brands, reaching more than 200 million consumers. Amyris stands by its No Compromise® promise that everything it makes is sustainably sourced, performs better, costs less, has higher purity and is better for people and the planet than products made less sustainably. Amyris is proud to own three consumer brands - all built around clean ingredients with No Compromise®.  They are Biossance™ clean beauty skincare, Pipette™ clean baby skincare and Purecane™, a zero-calorie sweetener that is naturally derived from sugarcane. More information about the company is available at www.amyris.com

Forward-Looking Statements

This release contains forward-looking statements, and any statements other than statements of historical fact could be deemed to be forward-looking statements. These forward-looking statements include, among other things, statements regarding future events, such as expected revenue, EBITDA, and expenses for 2019 and beyond, the anticipated development and commercialization of the company's cannabinoid products, including the timing thereof and potential product revenue and royalties related thereto, future cash burn and developments with the company's capitalization structure. These statements are based on management's current expectations and actual results and future events may differ materially due to risks and uncertainties, including risks related to Amyris's liquidity and ability to fund operating and capital expenses, risks related to potential delays or failures in development, production and commercialization of products, risks related to Amyris's reliance on third parties, and other risks detailed from time to time in filings Amyris makes with the Securities and Exchange Commission, including Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Amyris disclaims any obligation to update information contained in these forward-looking statements, whether as a result of new information, future events, or otherwise.

Amyris, the Amyris logo, No Compromise, Biossance, Pipette, and Purecane are trademarks or registered trademarks of Amyris, Inc. in the U.S. and/or other countries.

-Financial Tables Attached-

SOURCE Amyris, Inc.