EX-99.1 2 d624444dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

 

LOGO

Marrone Bio Innovations Reports Third Quarter 2013 Financial Results

DAVIS, Calif., November 7, 2013 — Marrone Bio Innovations, Inc. (NASDAQ: MBII), a provider of bio-based pest management and plant health products, announced today financial results for the third quarter ended September 30, 2013.

Financial Highlights for the Third Quarter of 2013

 

    Revenues totaled $1.3 million, representing growth of 82%, with growth year to date of 102%. Additional product sales of $770 thousand were delivered to customers with extended payment terms and recorded as deferred revenues.

 

    Net loss of $6.1 million, compared to net loss of $13.8 million in the third quarter of 2012.

 

    At September 30, 2013, cash and cash equivalents and short-term investments totaled $53.5 million.

“We made excellent progress in the third quarter expanding adoption and further commercializing our innovative bio-based products into the broader agricultural and water treatment markets,” said Pam Marrone, Chief Executive Officer of Marrone Bio Innovations. “We signed MOUs with two new EU distributors and are working to formalize agreements that we believe would provide a solid foundation for international growth, and the positive results for our Regalia® Rx launch in the midwest combined with several other encouraging field trials during the quarter underscores the efficacy and wide-reaching applicability of both our commercial products as well as our pipeline candidates.”

Recent Business Highlights

 

    Signed Memorandums of Understanding (MOU) with two European distributors including DeSangosse in France and CBC/Intrachem in Italy.

 

    Successfully demonstrated the value of Regalia Rx on corn and soybeans for enhanced plant health and increased yield.

 

    Demonstrated positive field results for existing and pipeline products against soybean cyst nematodes, corn rootworm and key pests in fruits and vegetables.


    Received California registration for Zequanox and also commenced commercial treatment programs with Ontario Power Generation and Oklahoma Gas & Electric. Also commenced a large-scale demo at Hoover Dam.

“Our third quarter results are consistent with the typical seasonal trends for our third quarter,” said Don Glidewell, Chief Financial Officer of Marrone Bio Innovations. “Additionally, our recent IPO has allowed us to begin offering extended payment terms which are typical in the agricultural industry. We sold $770 thousand dollars of products under these terms in the third quarter and will recognize the revenue from these sales during the appropriate future period.”

Business Outlook

For the full year 2013 the Company expects net revenues to more than double compared to the full year 2012, including expected deferred revenues.

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 November 7, 2013. To access the conference call, dial 760-298-5095 or 877-303-6220 (toll-free) and enter passcode 74608978. 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 November 10, 2013. To access the replay, please dial 404-537-3406 or 855-859-2056 and enter passcode 74608978.

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 in the Form 10-Q that the Company filed with the Securities and Exchange Commission on September 13, 2013.


Condensed Consolidated Balance Sheets

(In Thousands, Except Par Value)

 

     SEPTEMBER 30,
2013
    DECEMBER 31,
2012
 
     (Unaudited)        

Assets

    

Current assets:

    

Cash and cash equivalents

   $ 40,775      $ 10,006   

Restricted cash

     —          9,139   

Short-term investments

     12,684        —     

Accounts receivable

     2,050        2,970   

Inventories

     10,754        4,872   

Prepaid expenses and other current assets

     2,357        478   
  

 

 

   

 

 

 

Total current assets

     68,620        27,465   

Property, plant and equipment, net

     5,726        3,528   

Other assets

     1,057        2,785   
  

 

 

   

 

 

 

Total assets

   $ 75,403      $ 33,778   
  

 

 

   

 

 

 

Liabilities, convertible preferred stock and stockholders’ equity (deficit)

    

Current liabilities:

    

Accounts payable

   $ 5,125      $ 2,104   

Accrued liabilities

     2,973        3,023   

Deferred revenue, current portion

     1,094        324   

Capital lease obligations, current portion

     782        207   

Debt, current portion

     177        8,572   

Preferred stock warrant liability

     —          1,884   

Common stock warrant liability

     —          301   

Convertible notes payable, current portion

     —          22,518   
  

 

 

   

 

 

 

Total current liabilities

     10,151        38,933   

Deferred revenue, less current portion

     1,453        1,696   

Capital lease obligations, less current portion

     538        195   

Debt, less current portion

     12,261        7,766   

Convertible notes payable, less current portion

     —          19,342   

Other liabilities

     569        481   
  

 

 

   

 

 

 

Total liabilities

     24,972        68,413   

Commitments and contingencies

    

Preferred stock

     —          —     

Convertible preferred stock—Series A

     —          3,747   

Convertible preferred stock—Series B

     —          10,758   

Convertible preferred stock—Series C

     —          25,107   

Stockholders’ deficit:

    

Common stock

     —          —     

Additional paid-in capital

     145,876        1,322   

Accumulated deficit

     (95,445     (75,569
  

 

 

   

 

 

 

Total stockholders’ equity (deficit)

     50,431        (74,247
  

 

 

   

 

 

 

Total liabilities, convertible preferred stock and stockholders’ equity (deficit)

   $ 75,403      $ 33,778   
  

 

 

   

 

 

 


Condensed Consolidated Statements of Operations

(In Thousands, Except Per Share Amount)

(Unaudited)

 

     THREE MONTHS ENDED
SEPTEMBER 30
    NINE MONTHS ENDED
SEPTEMBER 30
 
     2013     2012     2013     2012  

Revenues:

        

Product

   $ 1,265      $ 662      $ 8,333      $ 4,039   

License

     81        76        243        207   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total revenues

     1,346        738        8,576        4,246   

Cost of product revenues

     1,077        521        6,270        2,065   
  

 

 

   

 

 

   

 

 

   

 

 

 

Gross profit

     269        217        2,306        2,181   

Operating expenses:

        

Research and development

     4,454        3,350        11,678        8,498   

Selling, general and administrative

     4,493        2,617        10,447        7,105   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     8,947        5,967        22,125        15,603   
  

 

 

   

 

 

   

 

 

   

 

 

 

Loss from operations

     (8,678     (5,750     (19,819     (13,422

Other income (expense):

        

Interest income

     24        10        25        16   

Interest expense

     (1,119     (593     (5,389     (1,250

Change in estimated fair value of financial instruments

     3,730        (7,473     6,717        (7,053

Gain on extinguishment of debt

     —          —          49        —     

Other (expense) income, net

     (67     4        (81     11   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total other income (expense), net

     2,568        (8,052     1,321        (8,276
  

 

 

   

 

 

   

 

 

   

 

 

 

Loss before income taxes

     (6,110     (13,802     (18,498     (21,698

Income taxes

     —          —          —          —     
  

 

 

   

 

 

   

 

 

   

 

 

 

Net loss

     (6,110     (13,802     (18,498     (21,698

Deemed dividend on convertible notes

     —          —          (1,378     (1,253
  

 

 

   

 

 

   

 

 

   

 

 

 

Net loss attributable to common stockholders

   $ (6,110   $ (13,802   $ (19,876   $ (22,951
  

 

 

   

 

 

   

 

 

   

 

 

 

Net loss per common share:

        

Basic

   $ (0.47   $ (10.94   $ (3.83   $ (18.32
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted

   $ (0.53   $ (10.94   $ (3.86   $ (18.32
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted-average shares outstanding used in computing net loss per common share:

        

Basic

     12,888        1,262        5,187        1,253   
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted

     14,017        1,262        5,229        1,253   
  

 

 

   

 

 

   

 

 

   

 

 

 

 


Condensed Consolidated Statements of Cash Flows

(In Thousands)

(Unaudited)

 

     NINE MONTHS ENDED
SEPTEMBER 30
 
     2013     2012  

Cash flows from operating activities

    

Net loss

   $ (18,498   $ (21,698

Adjustments to reconcile net loss to net cash used in operating activities:

    

Depreciation and amortization

     594        447   

Loss on disposal of equipment

     47        —     

Share-based compensation

     1,125        466   

Noncash interest expense

     4,068        546   

Change in estimated fair value of financial instruments

     (6,717     7,053   

Gain on extinguishment of debt

     (49     —     

Amortization of investment securities premiums/discounts, net

     4        —     

Net changes in operating assets and liabilities:

    

Accounts receivable

     920        (52

Inventories

     (5,882     (2,362

Prepaid expenses and other current assets

     (1,413     (52

Other assets

     1,922        (1,784

Accounts payable

     3,021        1,485   

Accrued liabilities

     (50     (157

Deferred revenue

     527        792   

Other liabilities

     (37     (15
  

 

 

   

 

 

 

Net cash used in operating activities

     (20,418     (15,331

Cash flows from investing activities

    

Purchases of property, plant and equipment

     (2,238     (2,149

Proceeds from sale of equipment

     16        —     

Purchase of short-term investments

     (12,688     —     

Maturities of short-term investments

     —          2,000   
  

 

 

   

 

 

 

Net cash used in investing activities

     (14,910     (149

Cash flows from financing activities

    

Proceeds from initial public offering, net of offering costs and underwriter commissions

     56,105        —     

Proceeds from issuance of convertible notes payable

     6,529        8,075   

Proceeds from issuance of debt

     3,700        9,875   

Proceeds from line of credit

     —          500   

Repayment of line of credit

     —          (500

Repayment of debt

     (9,367     (708

Repayment of capital leases

     (162     (122

Proceeds from secured borrowing

     2,880        —     

Reductions in secured borrowing

     (2,880     —     

Change in restricted cash

     9,139        —     

Proceeds from exercise of stock options

     81        22   

Proceeds from exercise of preferred stock warrants

     47        —     

Proceeds from exercise of common stock warrants

     25        —     
  

 

 

   

 

 

 

Net cash provided by financing activities

     66,097        17,142   
  

 

 

   

 

 

 

Net increase in cash and cash equivalents

     30,769        1,662   

Cash and cash equivalents, beginning of year

     10,006        2,215   
  

 

 

   

 

 

 

Cash and cash equivalents, end of period

   $ 40,775      $ 3,877   
  

 

 

   

 

 

 

Supplemental disclosure of cash flow information

    

Cash paid for interest, net of capitalized interest of $450 and $43 for the nine months ended September 30, 2013 and 2012, respectively.

   $ 1,321      $ 703   
  

 

 

   

 

 

 

Supplemental disclosure of noncash investing and financing activities

    

Equipment acquired under capital leases

   $ 617      $ 102   
  

 

 

   

 

 

 

Interest added to the principal of convertible notes

   $ 1,623      $  —     
  

 

 

   

 

 

 

Reclassification of warrants from liabilities to equity

   $ 2,669      $  —     
  

 

 

   

 

 

 

Conversion of convertible notes to common stock

   $ 44,890      $  —     
  

 

 

   

 

 

 

Conversion of preferred stock to common stock

   $ 39,659      $  —     
  

 

 

   

 

 

 


Source: Marrone Bio Innovations

Investor Contact

The Blueshirt Group

David Niederman

+1-415-489-2189

ir@marronebio.com