EX-99.1 2 d171202dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

Marrone Bio Innovations, Inc. Reports 2015 Fourth Quarter and Full Year Results

Fourth Quarter Revenues Increased 74% to $1.9 million, Driven Primarily by Increased Adoption and Improved Channel Inventories

Increased Deferred Revenue Also Reflects Improved Shipping Activity and Execution Compared to Prior Year

Identifies Range of Specific Operational Objectives

March 30, 2016 — Marrone Bio Innovations, Inc. (the “Company”) (NASDAQ: MBII), a leading provider of bio-based pest management and plant health products for the agriculture, turf and ornamental and water treatment markets, today announced results for the fourth quarter and full year ended December 31, 2015.

Fourth Quarter Results

Revenues for the fourth quarter of 2015 totaled $1.9 million, compared to $1.1 million in prior year’s period. This growth reflects increased grower adoption of the Company’s products, use of the Company’s products on an expanded number of crops, new customers and improved levels of channel inventory compared to the prior year.

The Company also noted that, as compared to September 30, 2015, total net deferred revenues at December 31, 2015 grew by approximately $1.0 million. This net increase in deferred revenues reflects increased shipments to certain customers that are accounted for under the sell-through method of revenue recognition.

Dr. Pam Marrone, Chief Executive Officer, commented, “We are pleased to have seen an improvement in our business during the fourth quarter and, with many of the distractions of the past year behind us, we are excited and energized as we begin 2016. We have achieved a number of important operational objectives, including EPA approval of an improved formulation for Regalia biofungicide, our first commercial sales of Majestene bionematicide, the submission of MBI-110 biofungicide to the EPA and the expansion of our product portfolio with a distribution agreement for Isagro’s biofungicide, Bio-Tam 2.0.”

Dr. Marrone continued, “As we go forward, we are focused on a number of additional operational objectives in addition to our priority on product sales


growth. These include the launch of an improved Grandevo granule formulation, a partnership for Zequanox, the formation of a partnership for the seed treatment market, the signing of one or more row crop distribution deals, the signing of new distribution agreements in international markets and additions to our intellectual property portfolio.”

The Company’s reported net loss for the fourth quarter of 2015 was $11.0 million, compared to a loss of $16.2 million in the fourth quarter of 2014. This reflects the positive impact of restructuring activities and increased revenues, offset by certain non-operating expenses associated with its financial restatement, Audit Committee investigation and related matters. Except with respect to ongoing related litigation, the Company does not expect these expenses to continue in the future.

Recent Business Highlights

 

    January 2016 - EPA approval of our improved Regalia formulation

 

    January 2016 - first commercial sales of Majestene

 

    January 2016 - EPA submission of MBI-110

 

    January 2016 - addition of Michael Benoff to Board of Directors

 

    March 2016 - distribution agreement for Bio-Tam 2.0 with Isagro

 

    March 2016 - addition of Kathleen Merrigan to Board of Directors

 

    March 2016 - allowance of a US patent on Regalia formulations

As of December 31, 2015, the Company had $38.3 million of cash, including $18.4 million of restricted cash, on its balance sheet and approximately $57.8 million in outstanding debt, including debt due to related parties.

Full Year 2015 Results

Revenues for the year ended December 31, 2015 totaled $9.8 million compared to $9.1 million for the prior year. Similar to the fourth quarter, this growth reflects increased grower adoption of the Company’s products, use of the Company’s products on an expanded number of crops and as the year progressed, lower levels of channel inventory compared to the prior year.

The Company’s reported net loss for the year ended December 31, 2015 was $43.7 million, compared to a loss of $51.7 million in 2014. The Company noted that its full year financial performance for both years reflects non-operating expenses and certain non-recurring charges associated with its restatement, Audit Committee investigation and related matters.


Conference Call and Webcast Details

As previously announced, the Company will host a conference call today at 4:30 p.m. ET to discuss the results of the quarter, followed by a question and answer session for the investment community. A live webcast of the call can be accessed on the Marrone Bio Innovations investor relations website at investors.marronebio.com. To access the call, dial toll-free 888-481-2877 or 719-325-2315 (international). The participant passcode is 3249756.

To listen to a telephonic replay of the conference call, dial toll-free 877-870-5176 or 858-384-5517 (international) and enter passcode 3249756. The replay will be available beginning at 7:30 p.m. ET on Wednesday, March 30, 2016 and will last through 11:59 p.m. on Wednesday, April 6. The webcast will also be available for replay at investors.marronebio.com.

About Marrone Bio Innovations

Smart. Natural. Solutions.

Marrone Bio Innovations, Inc. (MBII) aims to lead the movement to a more sustainable world through the discovery, development and promotion of biological products for pest management and plant health. Our effective and environmentally responsible solutions help customers operate more sustainably while controlling pests, improving plant health, and increasing crop yields. We have four products for agriculture on the market (Regalia, Grandevo®, Venerate® and Majestene®), 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

This press release contains forward-looking statements that involve substantial risks and uncertainties. All statements, other than statements of historical facts, included in this press release regarding strategy, future operations and plans, including assumptions underlying such statements, are forward-looking statements, and should not be relied upon as representing the Company’s views as of any subsequent date. Examples of such statements include statements regarding the Company’s operational objectives, including product launches, new partnership and distribution agreements and addition to the Company’s intellectual property portfolio, ongoing litigation and any future expenses related to the Company’s financial restatement and Audit Committee investigation. Such forward-looking statements are based on


information available to the Company as of the date of this release and involve a number of risks and uncertainties, some beyond the Company’s control, that could cause actual results to differ materially from those anticipated by these forward-looking statements, including any difficulty in developing, manufacturing, marketing or selling the Company’s products, any failure to maintain and further establish relationships with distributors, competition in the market for pest management products, lack of understanding of bio-based pest management products by customers and growers, adverse decisions by regulatory agencies, and the impact of negative publicity and perceptions around the company’s financial restatement. Additional information that could lead to material changes in the Company’s performance is contained in its filings with the SEC. The Company is under no obligation to, and expressly disclaims any responsibility to, update or alter forward-looking statements contained in this release, whether as a result of new information, future events or otherwise.


MARRONE BIO INNOVATIONS, INC.

Consolidated Balance Sheets

(In Thousands, Except Par Value)

 

     DECEMBER 31,  
     2015     2014  

Assets

    

Current assets:

    

Cash and cash equivalents

   $ 19,838      $ 35,324   

Restricted cash for debt covenants, current portion

     1,856        1,856   

Accounts receivable

     2,347        1,787   

Inventories, net

     9,064        12,644   

Deferred cost of product revenues, including deferred cost of product revenues to related parties of $79 and $333 as of December 31, 2015 and 2014, respectively

     1,596        1,797   

Prepaid expenses and other current assets

     1,315        1,315   
  

 

 

   

 

 

 

Total current assets

     36,016        54,723   

Property, plant and equipment, net

     18,445        20,166   

Restricted cash for debt covenants, less current portion

     16,560        1,560   

Other assets

     746        733   
  

 

 

   

 

 

 

Total assets

     71,767        77,182   
  

 

 

   

 

 

 

Liabilities and stockholders’ equity

    

Current liabilities:

    

Accounts payable

   $ 2,007      $ 5,841   

Accrued liabilities

     5,689        6,321   

Accrued interest due to related parties

     1,175        —    

Deferred revenue, current portion

     2,919        2,861   

Deferred revenue from related parties

     168        660   

Customer refund liabilities

     —         1,044   

Capital lease obligations, current portion

     647        1,839   

Debt, current portion

     267        12,636   
  

 

 

   

 

 

 

Total current liabilities

     12,872        31,202   

Deferred revenue, less current portion

     2,021        2,050   

Capital lease obligations, less current portion

     18        185   

Debt, less current portion

     21,776        9,667   

Debt due to related parties

     35,788        —    

Other liabilities

     1,314        847   
  

 

 

   

 

 

 

Total liabilities

     73,789        43,951   

Stockholders’ equity:

    

Preferred stock

     —         —    

Common stock

     —         —    

Additional paid in capital

     201,554        193,079   

Accumulated deficit

     (203,576     (159,848
  

 

 

   

 

 

 

Total stockholders’ equity (deficit)

     (2,022     33,231   
  

 

 

   

 

 

 

Total liabilities and stockholders’ equity

   $ 71,767      $ 77,182   
  

 

 

   

 

 

 


MARRONE BIO INNOVATIONS, INC.

Consolidated Statements of Operations

(In Thousands, Except Par Value)

 

     THREE MONTHS
ENDED

DECEMBER 31,
    YEAR ENDED
DECEMBER 31,
 
     2015     2014     2015     2014  
     (Unaudited)              

Revenues:

        

Product

   $ 1,816      $ 938      $ 8,976      $ 7,750   

License

     84        71        333        232   

Related party

     13        89        492        1,154   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total revenues

     1,913        1,098        9,801        9,136   

Cost of product revenues (1)

     1,924        1,432        9,256        9,438   
  

 

 

   

 

 

   

 

 

   

 

 

 

Gross profit

     (11     (334     545        (302

Operating expenses:

        

Research, development and patent

     3,308        5,903        13,500        19,281   

Selling, general and administrative

     5,887        9,312        26,502        28,950   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     9,195        15,215        40,002        48,231   
  

 

 

   

 

 

   

 

 

   

 

 

 

Loss from operations

     (9,206     (15,549     (39,457     (48,533

Other income (expense):

        

Interest income

     22        17        51        59   

Interest expense

     (749     (669     (2,764     (2,907

Interest expense to related parties

     (1,098     —          (1,599     —     

Other (expense) income, net

     1        (32     41        (278
  

 

 

   

 

 

   

 

 

   

 

 

 

Total other expense, net

     (1,824     (684     (4,271     (3,126
  

 

 

   

 

 

   

 

 

   

 

 

 

Loss before income taxes

     (11,030     (16,233     (43,728     (51,659

Income taxes

     —          —          —          —     
  

 

 

   

 

 

   

 

 

   

 

 

 

Net loss

   $ (11,030   $ (16,233   $ (43,728   $ (51,659
  

 

 

   

 

 

   

 

 

   

 

 

 

Basic and diluted net loss per common share

   $ (0.45   $ (0.66   $ (1.79   $ (2.32
  

 

 

   

 

 

   

 

 

   

 

 

 

Basic and diluted weighted-average shares outstanding used in computing net loss per common share

     24,484        24,464        24,469        22,314   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

(1)  Includes $6, $40, $254 and $561 in cost of product revenues to related parties for the quarters ended December 31, 2015 and 2014 and the years ended December 31, 2015 and 2014, respectively.


MARRONE BIO INNOVATIONS, INC.

Consolidated Statements of Cash Flows

(In Thousands)

 

    

YEAR ENDED

DECEMBER 31,

 
     2015     2014  

Cash flows from operating activities

    

Net loss

   $ (43,728   $ (51,659

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

    

Depreciation and amortization

     3,510        2,581   

Loss (gain) on disposal of equipment

     (39     243   

Share-based compensation

     3,811        4,555   

Non-cash interest expense

     803        780   

Amortization of investment securities premiums/discounts, net

     —         10   

Net changes in operating assets and liabilities:

    

Accounts receivable

     (560     1,997   

Accounts receivable from related parties

     —         903   

Inventories

     3,580        73   

Prepaid expenses and other assets

     142        (309

Deferred cost of product revenues

     201        1,064   

Accounts payable

     (3,486     1,667   

Accrued and other liabilities

     (76     1,895   

Accrued interest due to related parties

     1,175        —    

Deferred revenue

     29        (108

Deferred revenue from related parties

     (492     (671

Customer refund liabilities

     (1,044     1,044   
  

 

 

   

 

 

 

Net cash used in operating activities

     (36,174     (35,935

Cash flows from investing activities

    

Purchases of property, plant and equipment

     (1,653     (13,002

Proceeds from sale of equipment

     7        6   

Purchase of short-term investments

     —         (49

Maturities of short-term investments

     —         13,716   
  

 

 

   

 

 

 

Net cash provided by (used in) investing activities

     (1,646     671   

Cash flows from financing activities

    

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

     —         39,949   

Proceeds from issuance of debt, net of financing costs

     —         9,696   

Proceeds from issuance of debt due to related parties, net of financing costs

     39,698        —    

Proceeds from line of credit

     —         4,687   

Repayment of line of credit

     —         (4,687

Repayment of debt

     (435     (378

Repayment of capital leases

     (1,983     (1,073

Change in restricted cash

     (15,000     (3,416

Proceeds from exercise of stock options

     54        1,305   

Proceeds from exercise of common stock warrants

     —         50   
  

 

 

   

 

 

 

Net cash provided by financing activities

     22,334        46,133   

Net increase (decrease) in cash and cash equivalents

     (15,486     10,869   

Cash and cash equivalents, beginning of year

     35,324        24,455   
  

 

 

   

 

 

 

Cash and cash equivalents, end of year

   $ 19,838      $ 35,324   
  

 

 

   

 

 

 

Supplemental disclosure of cash flow information

    

Cash paid for interest, net of capitalized interest of $4 and $668 for the years ended December 31, 2015 and 2014, respectively

   $ 2,297      $ 2,102   
  

 

 

   

 

 

 

Supplemental disclosure of non-cash investing and financing activities

    

Property, plant and equipment included in accounts payable and accrued liabilities

   $ 499      $ 204   
  

 

 

   

 

 

 

Equipment acquired under capital leases

   $ 787      $ 834   
  

 

 

   

 

 

 

Equipment acquired in association with operating lease

   $ —       $ 285