BioAmber announces record revenues for the second quarter 2017 and purchase of Mitsui equity stake in Sarnia Joint Venture

MONTREAL, Aug. 3, 2017 /CNW/ - BioAmber Inc. (NYSE: BIOA) (TSX: BIOA) today announced operational and financial results for the three months ended June 30, 2017 and the purchase and consolidation of the Mitsui & Co Ltd.'s stake in its Sarnia Joint Venture.

"We are pleased to report our second quarter 2017 results generated BioAmber's largest quarterly revenue ever. Year to date we have experienced the greatest acceleration in new customers and new applications since our Sarnia facility was commissioned. Investments in our customer base are resulting in increased sales. Our pipeline is robust and we believe provides us with a solid foundation for 2018" said Mike Hartmann, President of BioAmber Sarnia and Head of Global Sales.

BioAmber also entered into a definitive agreement to purchase Mitsui & Co., Ltd.'s ("Mitsui") entire minority equity position in the Sarnia manufacturing joint venture. Following the closing of the transaction, BioAmber Inc. will own 100% of the BioAmber Sarnia production facility. Mitsui's divestiture of their equity stake in the Sarnia joint venture follows a review of their previously announced corporate strategy. Mitsui will still continue to distribute BioAmber's bio-succinic acid in Asia and other markets. 

Given Mitsui's longstanding presence in Canada and its shareholding in BioAmber Inc., the parties negotiated terms that allowed Mitsui to achieve its corporate objectives while enabling BioAmber Inc. to assume full ownership of the Sarnia facility. 

"This transaction is a meaningful opportunity for BioAmber shareholders", said Fabrice Orecchioni, BioAmber's President and COO. "Now that the Sarnia plant is ramping up, full ownership enables BioAmber to retain 100% of projected profits and explore new opportunities with potential partners for the Sarnia facility while continuing to benefit from Mitsui's marketing and distribution capabilities, especially in Asia."

Highlights Q2 2017

  • Sales of bio-succinic acid were a quarterly record of $4.1m, a 64% increase over Q2-2016 and 94% over Q1-2017 revenues.
  • 9 new customers began buying bio-succinic acid in the second quarter. That brings the total of new customers for the first half of the year to 16.
  • Launch of BIO-SA pharmaceutical grade.
  • Operating expenses in Q2 -2017 were 29% lower than in Q1-2017.
  • Successfully negotiated buyback of Mitsui equity stake in Sarnia.

Q2 2017 Financial Results

Revenues for the quarter ended June 30, 2017 were $4.1 million, an increase of 64% over the previous quarter, mainly driven by growth in succinic acid volume sold, slightly offset by a decrease in average selling price.

Cost of goods sold increased from $3.5 million for the three months ended June 30, 2016 to $5.7 million for the three months ended June 30, 2017, primarily due to an increase in the volume sold partially offset by a reduction in production costs.

General and administrative expenses remained relatively stable at $2.9 million for the three months ended June 30, 2017, compared to $3.0 million for the three months ended June 30, 2016.

Research and development expenses and sales and marketing expenses also remained stable at $1.5 million and $0.6 million, respectively, for the three months ended June 30, 2017 compared to June 30, 2016.

Financial charges (income), net decreased to a charge of $398,000 for the three months ended June 30, 2017 compared to an income of $11.3 million for the three months ended June 30, 2016. This variation of $11.7 million is mainly due to the non-cash mark-to-market adjustment change of $11.8 million on the IPO warrants, the June 2009 Warrants, the April 2011 Warrants and the 2017 Warrants. The IPO Warrants expired by their terms in May, 2017 and are no longer outstanding.

The Company recorded a net loss attributable to BioAmber Inc. shareholders of $7.1 million, or a loss of $0.20 per share, for the quarter ended June 30, 2017, compared to a net income of $4.8 million, or an income of $0.17 per share, for the same period last year.

The Adjusted Net Loss Attributable to BioAmber Inc. Shareholders for the quarter ended June 30, 2017 was $7.3 million, or a loss of $0.20 per share, compared to an Adjusted Net Loss Attributable to BioAmber Inc. Shareholders of $7.1 million, or a loss of $0.25 per share, for the three months ended June 30, 2016.  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, Legacy and 2017 Warrants.

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 public at 8:30 a.m. Eastern Time on August 3rd, 2017. 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:  +1 (416) 764-8688

Teleconference replays will be available through August, 10, 2017: Domestic: +1-888-390-0541

International: +1 416-764-8677   Passcode:  297963 #. 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.

About BioAmber

BioAmber (NYSE: BIOA; TSX: 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.

Forward-Looking Statements

This press release contains forward-looking statements which are subject to substantial risks, uncertainties and assumptions.  These statements often include words such as "believe," "expect," "anticipate," "intend," "plan," "estimate," "seek," "will," "may" or similar expressions. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that the events and circumstances reflected in the forward-looking statements will be achieved or occur and the timing of events and circumstances and actual results could differ materially from those projected in the forward- looking statements.  Accordingly, you should not place undue reliance on these forward-looking statements. All such statements speak only as of the date made, and we undertake no obligation to update or revise publicly any forward-looking statements, whether because of new information, future events or otherwise.  For additional disclosure regarding these and other risks faced by BioAmber, see disclosures contained in BioAmber's public filings with the SEC including, the "Risk Factors" section of BioAmber's most recent Annual Report on Form 10-K and the recent quarterly reports on Form 10-Q.


 

BioAmber Inc.




Consolidated Statements of Operations




(unaudited, in thousands)





Three Months Ended June 30,


2017


2016





Product sales

$ 4,122


$ 2,521

Cost of goods sold excluding depreciation and amortization

5,731


3,481

Operating expenses




General and administrative

2,907


2,985

Research and development, net

1,549


1,523

Sales and marketing

561


584

Depreciation of property and equipment and amortization of intangible assets

1,214


1,238

Foreign exchange (income) loss

(38)


25


Operating expenses

6,193


6,355





Operating loss

(7,802)


(7,315)


Amortization of debt discounts

649


839


Financial charges (income), net

398


(11,296)


Other expense (income), net


197


(Loss) income before income taxes

(8,849)


2,945

Income taxes

58


12

Net (loss) income

(8,907)


2,933

Net (loss) income attributable to:





BioAmber Inc. shareholders

(7,138)


4,811


Non-controlling interest

(1,769)


(1,878)


(8,907)


2,933





Basic net (loss) income per share attributable to BioAmber Inc. shareholders

(0.20)


0.17

Weighted-average of common shares outstanding -  basic

36,398


28,782

 

BioAmber Inc.




Consolidated Balance Sheet Information




(unaudited, in thousands)





As of
June 30, 2017


As of
December 31,
2016

Assets

$


$

Current assets:




Cash and cash equivalents

5,735


16,160

Accounts receivable

3,742


987

Inventories

4,866


4,498

Prepaid expenses and other current assets

1,259


880

Restricted cash


8,897


Total current assets

15,602


31,422

Property and equipment, net

123,773


121,628

Investment in cost and equity method investment

447


447

Intangible assets including goodwill

6,649


6,752

Restricted cash

578


558

Deferred financing costs

524


524


Total assets

147,573


161,331





Liabilities




Current Liabilities:




Accounts payable and accrued liabilities

5,943


6,022

Income taxes payable

203


115

Deferred revenue


1,372

Warrants financial liability


14,497

Short-term portion of long term debt

4,266


23,299


Total current liabilities

10,412


45,305

Long-term debt

30,928


29,032

Warrants financial liability

1,469


740

Other long term liabilities

239


247


Total liabilities

43,048


75,324

Redeemable non-controlling interest

35,501


37,516

Shareholders' Equity

69,024


48,491

Total Liabilities and Shareholders' Equity

147,573


161,331

 


BioAmber Inc.




Consolidated Statements of Cash Flows




(unaudited, in thousands)









Six Months ended June 30,


2017


2016


$


$

Operating Activities






Net loss

(10,284)


(9,603)




Adjustments to reconcile net loss to cash:







Stock-based compensation

3,307


1,778




Depreciation and amortization

2,449


2,392




Loss on disposals of property and equipment

32


177




Amortization of debt discounts

1,242


1,440




Other long-term liabilities

(11)


(9)




Financial charges (income), net

(9,966)


(9,346)




Gain on debt extinguishment

(746)





Changes in operating assets and liabilities

(4,788)


(12,504)


Net cash used in operating activities

(18,765)


(25,675)





Investing activities






Acquisition of property and equipment and intangible asset, net of disposals

(426)


(364)


Net cash used in investing activities

(426)


(364)





Financing activities






Deferred financing costs


(571)



Repayment of long-term debt

(18,931)


(4,840)



Net proceeds from issuance of common shares

27,573


11,859



Proceeds from issuance of shares by a subsidiary


17,726


Net cash provided by financing activities

8,642


24,174

Foreign exchange impact on cash

124


434

Decrease in cash and cash equivalents

(10,425)


(1,431)

Cash and cash equivalents, beginning of period

16,160


6,974

Cash and cash equivalents, end of period

5,735


5,543

 

ANNEX A: Non-GAAP Financial Information

Adjusted Net Loss Attributable to BioAmber Inc. Shareholders

BioAmber presents Adjusted Net Loss Attributable to BioAmber Inc. Shareholders as a supplemental measure of BioAmber's performance.  Adjusted Net Loss Attributable to BioAmber Inc. Shareholders is a non-GAAP financial metric that excludes, for the quarter ended June 30, 2017 and 2016, the impact of the change in fair value of the IPO, Legacy Warrants and 2017 Warrants. The above items are excluded from BioAmber's Adjusted Net Loss Attributable to BioAmber Inc. Shareholders because these items are non-cash in nature, or because the amount and timing of these items are either unpredictable or not driven by current operating results and renders comparisons with prior periods and competitors less meaningful.  BioAmber believes Adjusted Net Loss Attributable to BioAmber Inc. Shareholders is a useful measure for analysts and investors to evaluate BioAmber's future ongoing performance as this measure allows for a more meaningful comparison of BioAmber's projected cash earnings and performance with its historical results from prior periods and to the results of its competitors.  Adjusted Net Loss Attributable to BioAmber Inc. Shareholders corresponds more closely to the cash operating income generated from BioAmber's business and allows investors to gain an understanding of the factors and trends affecting the ongoing cash earnings capabilities of BioAmber's business.

Adjusted Net Loss Attributable to BioAmber Inc. Shareholders has certain limitations in that it does not take into account the impact of certain expenses to BioAmber's consolidated statements of operations.  In evaluating Adjusted Net Loss Attributable to BioAmber Inc. Shareholders, you should be aware that in the future BioAmber may incur expenses similar to the adjustments in this presentation. BioAmber's presentation of Adjusted Net Loss Attributable to BioAmber Inc. Shareholders should not be construed as an inference that BioAmber's future results will be unaffected by unusual or non-recurring items. Adjusted Net Loss Attributable to BioAmber Inc. Shareholders is not a measurement of BioAmber's financial performance under GAAP and should not be considered as an alternative to net income, operating income or any other performance measures derived in accordance with GAAP.

 

BioAmber Inc.




Non-GAAP Financial Information




(unaudited, in thousands, except for share data)





Three Months ended
June 30,


2017


2016


$


$

Net (loss) income attributable to BioAmber Inc.  Shareholders

(7,138)


4,811

Adjustment:




Warrants revaluation (income) expense

(141)


(11,943)

Adjusted net loss attributable to BioAmber Inc. shareholders

(7,279)


(7,132)





Adjusted net loss per share attributable to BioAmber Inc. shareholders - basic

(0.20)


(0.25)





Weighted-average of common shares outstanding- basic

36,398


28,782

 

SOURCE BioAmber Inc.

For further information: BioAmber Investor Contact: Roy McDowall, Sr. VP Communication & Strategy, 514-844-8000 Ext. 260, roy.mcdowall@bio-amber.com

RELATED LINKS
http://www.bio-amber.com/

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890