Reports Net Revenues of $14.0 Million,
Earns $0.09 Per Diluted Share (non-GAAP) and Generates $3.3 Million
in Operating Cash Flow
Enzymotec Ltd. (Nasdaq:ENZY), a developer, manufacturer and
marketer of innovative bio-active lipid ingredients and medical
foods, today reported financial results for the first quarter ended
March 31, 2016.
First Quarter 2016 Financial Highlights
- First quarter net revenues increased 23.6% and 5.3% to $14.0
million, compared to the first quarter of 2015 and the fourth
quarter of 2015, respectively.
- First quarter net revenues (utilizing the proportionate
consolidation method that is used for segment reporting) increased
19.5% and 2.4% million to $17.1 million, compared to the first
quarter of 2015 and the fourth quarter of 2015, respectively.
- First quarter gross margin increased 480 basis points and 540
basis points to 66.8%, up from 62.0% and 61.4% in the first quarter
of 2015 and the fourth quarter of 2015, respectively.
- First quarter selling and marketing expenses increased 78.2%
and 18.0% to $4.3 million, compared to the first quarter of 2015
and the fourth quarter of 2015, respectively.
- First quarter Adjusted EBITDA* increased 2.2% and 13.5% to $2.7
million, compared to the first quarter of 2015 and the fourth
quarter of 2015, respectively.
- First quarter net income increased 27.6% compared to the fourth
quarter of 2015, but decreased 16.7% to $1.4 million, or $0.06 per
diluted share, compared to the first quarter of 2015.
- First quarter non-GAAP net income* increased 35.2%, compared to
the fourth quarter of 2015, but decreased 1.5% to $2.1 million, or
$0.09 per diluted share, compared to the first quarter of
2015.
- First quarter cash flows from operating activities amounted to
$3.3 million.
- The Company reaffirms its previously issued guidance for
2016.
* A reconciliation of non-GAAP financial measures to GAAP
financial measures is set forth below.
Recent Business Highlights:
Nutrition Segment
- Granted new patent by the U.S. Patent and Trademark Office for
compositions and processes related to infant nutrition.
- Granted new patent by the Chinese Patent and Trademark office
for INFAT® uses promoting development of beneficial gut flora and
reducing infant crying duration.
- Completed pre-clinical study of InCog™, Enzymotec’s innovative
lipid composition for cognitive functioning. InCog™ was found to
significantly enhance brain development in preterm piglets.
- The nutrition division strengthened its market presence in
India with the recruitment of a regional sales manager.
- A clinical trial for INFAT® demonstrated a seventh additional
health benefit related to infants sleeping more, also at
night.
- Advanced Lipids increased digital media activities including a
new website and marketing campaign for INFAT® and launched its
Chinese social media platform.
- The International Chamber of Commerce tribunal ("ICC") rejected
AAK's request for an additional award and also awarded certain
costs to the Company in connection with this latest request by
AAK.
VAYA Pharma Segment
- Generated record VAYA Pharma sales with $3.1 million reported
in the first quarter, an increase of 48.3% and 36.0% from the first
quarter of 2015 and the fourth quarter of 2015, respectively.
- Continued expansion of VAYA Pharma's sales force to 56 people
operating in 29 states in the U.S.
“Enzymotec stands at the forefront of innovation within the
medical nutrition industry with our leading lipids technology, as
well as a wide breadth of complementary technologies, concentrating
on disease prevention, infant nutrition, and the dietary management
of diseases with medical foods. We remain committed to accelerating
the growth profile of the Company with our tailor made and
innovative solutions, and are pleased to report a quarter with
double digit revenue growth over the first quarter of 2015 as well
as both top and bottom line growth over the fourth quarter of
2015,” commented Dr. Ariel Katz, Enzymotec’s President and Chief
Executive Officer. “We continue to see expansion
opportunities in infant formula to enter new markets throughout
Asia, the Far East and South America. We have developed
several new products and highly anticipate our ability to advance
up the value chain and position the Company as a key infant formula
partner. Our PS line of products remains in high demand and
Enzymotec will look to further leverage the infrastructure in our
bioactive business by providing a more robust and diverse array of
solutions for our customers.”
“VAYA Pharma generated record revenues for the third consecutive
quarter with $3.1 million reported in the first quarter. The
productivity of the salesforce is on the upswing and should
continue to ramp up throughout the year. We believe that the
investments we are making in VAYA Pharma for research and
development and selling and marketing activities will fuel the
Company’s future growth profile,” stated Dr. Katz.
“Enzymotec remains in a financially strong position to support
its growth initiatives. Even with the investments we committed to
the business this year, our cash flow is solidly positive and our
balance sheet continues to strengthen. We had a strong first
quarter generating $3.3 million in operating cash flow and now have
$79.2 million in cash, deposits and marketable securities on our
balance sheet. As we look to deploy our cash judiciously with a
growth strategy that includes potential acquisitions that are
complementary to our business, the Company is committed to its
history of seeking prudent growth as well as our goal of creating
value for our shareholders,” concluded Dr. Katz.
First Quarter 2016 Results
For the first quarter of 2016, net revenues increased 23.6% to
$14.0 million from $11.3 million for the first quarter of 2015. For
the first quarter of 2016, based on the proportionate consolidation
method that we use for segment reporting, net revenues increased
19.5% to $17.1 million from $14.4 million for the first quarter of
2015. The increase was primarily due to an increase of $1.4
million in InFat sales (proportionate consolidation method), an
increase of $1.0 million in sales of VAYA Pharma products and
increase of $0.7 million in sales of PS products, partially offset
by decreased sales of krill products of $0.3
million.
Gross margin for the first quarter of 2016 increased 480 basis
points to 66.8% from 62.0% for the first quarter of 2015 primarily
due to a change in product mix.
Research and development expenses for the first quarter of 2016
increased 34.3% to $1.9 million from $1.4 million in the first
quarter of 2015, primarily due to an increase of $0.4 million of
expenses in respect of VAYA Pharma clinical trials.
Selling and marketing expenses for the first quarter of 2016
increased 78.2% and 18.0% to $4.3 million from $2.4 million in the
first quarter of 2015, and from $3.7 million in the fourth quarter
of 2015, respectively, primarily related to an expansion in VAYA
Pharma's sales force, infrastructure and related marketing
activities in the U.S.
General and administrative expenses for the first quarter of
2016 increased 16.6% to $1.8 million from $1.5 million in the first
quarter of 2015, primarily due to an increase in salaries and
share-based compensation expense of $0.3 million.
Adjusted EBITDA for the first quarter of 2016 increased 2.2% to
$2.74 million from $2.68 million for the first quarter of 2015. The
increase was driven by an increase in the Adjusted EBITDA of the
Nutrition segment of $1.2 million (as a result of increased
revenues and increased gross profit margin) partially offset by a
decrease in the Adjusted EBITDA of the VAYA Pharma segment of $1.1
million (as a result of increased operating expenses partially
offset by increased revenues). A reconciliation of Adjusted
EBITDA to net income is set forth below.
Net income for the first quarter of 2016 decreased to $1.4
million, or $0.06 per diluted share, from $1.7 million, or $0.08
per diluted share, for the first quarter last year. The decrease
was primarily as a result of increased selling and marketing
expenses and an increase in research and development expenses
mainly in the VAYA Pharma segment as well as an increase of $0.3
million in share-based compensation expense, partially offset by
the increase in net revenues and gross profit margin in both
segments.
Non-GAAP net income for the first quarter of 2016 totalled $2.1
million, or $0.09 per diluted share, equal to the first quarter of
2015.
Below is segment information for the three months ended March
31, 2016 and 2015:
|
|
|
Three Months Ended March 31,
2016 |
|
|
Nutrition Segment |
|
VAYA Pharma Segment |
|
Total Segment Results of
Operations |
|
Elimination(1) |
|
Consolidated Results of
Operations |
|
|
U.S. dollars in thousands |
|
|
|
Net
revenues |
|
$ |
14,022 |
|
|
$ |
|
3,124 |
|
|
$ |
17,146 |
|
$ |
|
(3,180 |
) |
|
$ |
13,966 |
|
|
|
|
Cost
of revenues(2) |
|
|
7,138 |
|
|
|
|
541 |
|
|
|
7,679 |
|
|
|
(3,083 |
) |
|
|
4,596 |
|
|
|
|
Gross
profit(2) |
|
|
6,884 |
|
|
|
|
2,583 |
|
|
|
9,467 |
|
|
|
(97 |
) |
|
|
9,370 |
|
|
|
|
Operating expenses(2) |
|
|
3,292 |
|
|
|
|
4,082 |
|
|
|
7,374 |
|
|
|
— |
|
|
|
7,374 |
|
|
|
|
Depreciation and amortization |
|
|
567 |
|
|
|
|
81 |
|
|
|
648 |
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA(3) |
|
$ |
4,159 |
|
|
$ |
|
(1,418 |
) |
|
$ |
2,741 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
2015 |
|
|
Nutrition Segment |
|
VAYA Pharma Segment |
|
Total Segment Results of
Operations |
|
Elimination(1) |
|
Consolidated Results of
Operations |
|
|
U.S. dollars in thousands |
|
|
|
Net
revenues |
|
$ |
12,246 |
|
|
$ |
|
2,107 |
|
|
|
$ |
14,353 |
|
|
$ |
|
(3,054 |
) |
|
$ |
11,299 |
|
|
|
|
Cost
of revenues(2) |
|
|
6,798 |
|
|
|
|
414 |
|
|
|
|
7,212 |
|
|
|
|
(2,945 |
) |
|
|
4,267 |
|
|
|
|
Gross
profit(2) |
|
|
5,448 |
|
|
|
|
1,693 |
|
|
|
|
7,141 |
|
|
|
|
(109 |
) |
|
|
7,032 |
|
|
|
|
Operating expenses(2) |
|
|
2,928 |
|
|
|
|
2,065 |
|
|
|
|
4,993 |
|
|
|
|
— |
|
|
|
4,993 |
|
|
|
|
Depreciation and amortization |
|
|
487 |
|
|
|
|
48 |
|
|
|
|
535 |
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA(3) |
|
$ |
3,007 |
|
|
$ |
|
(324 |
) |
|
|
$ |
2,683 |
|
|
|
|
|
|
|
|
|
|
|
|
____________________(1) Represents the change from proportionate
consolidation to the equity method of accounting.(2) Includes
depreciation and amortization, but excludes share-based
compensation expense.(3) Adjusted EBITDA is a non-GAAP financial
measure. For a definition and a reconciliation of Adjusted
EBITDA to our net income, see “Non-GAAP Financial Measures”
below.
Joint Venture Accounting
The Company accounts for the results of operation
of Advanced Lipids AB (Advanced Lipids), the Company's 50%-owned
joint venture, utilizing the equity method of accounting as
required by U.S. GAAP. We recognize two sources of
income from the JV arrangement. First, we recognize revenue
for the enzymes sold by us to AAK upon the sale of the final InFat
product by AL to its customers. Accordingly, the revenues
recognized from the arrangement are the amounts the Company charges
to its joint venture partner, or the Company's direct costs of
production plus an agreed-upon margin defined in the joint venture
agreement. For the three-month periods ended March 31, 2016 and
2015, sales of enzymes to the joint venture partner amounted to
$4.2 million and $2.9 million, respectively. Second, we also
record our share of Advanced Lipids profits under the equity method
of accounting. The Advanced Lipids profits that are shared
between us and AAK are the profits that Advanced Lipids earns for
its distribution activity.
For purposes of segment reporting, we account for
the arrangement with AAK and the results of operations of Advanced
Lipids using the proportionate consolidation method. Under the
proportionate consolidation method, we recognize our proportionate
share (50%) of the revenues of Advanced Lipids and record our
proportionate share (50%) of the overall joint venture’s costs of
production and other operating expenses in our income
statement. The financial information included in the tables
above under the heading "Nutrition segment" includes, inter alia,
the results of operations of Advanced Lipids, using the
proportionate consolidation method.
Balance Sheet and Liquidity
Data
As of March 31, 2016, we had $79.2 million in cash
and cash equivalents, short-term bank deposits and short-term and
long-term marketable securities (compared to $76.4 million as of
December 31, 2015), $27.8 million in other working capital items
and no debt (compared to $28.2 million as of December 31,
2015).
Guidance for 2016
For the full fiscal year 2016, the Company
reaffirms the following guidance ranges:
- Net revenues of between $56 million and $64 million
- Net revenues, based on the proportionate consolidation method
that is used for segment reporting, of between $68 million and $78
million
- Non-GAAP net income* of between $6 million and $7 million
- Non-GAAP diluted earnings per share (EPS)* of between $0.25 and
$0.30
* Non-GAAP net income represents net income
excluding (i) share-based compensation expense and (ii) other
unusual income or expenses. Non-GAAP diluted EPS is diluted EPS,
based on Non-GAAP net income. For a reconciliation of non-GAAP
financial measures to GAAP financial measures, see “Non-GAAP
Financial Measures” below.
Conference Call Details
Enzymotec will host a conference call today at 8:30
a.m. EDT to discuss the financial results for the first quarter of
2016. Listeners in North America may dial +1-877-359-9508 and
international listeners may dial +1-224-357-2393 along with
confirmation code 4029515 to access the live call. The call will
also be broadcast live over the Internet, hosted in the Investors
section of Enzymotec's website at
http://edge.media-server.com/m/p/vx4zfxag and will be archived
online within one hour of its completion.
Forward Looking Statements
This release may contain forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933, as
amended, Section 21E of the Securities Exchange Act of 1934, as
amended and the safe harbor provisions of the U.S. Private
Securities Litigation Reform Act of 1995, that are based on our
management’s beliefs and assumptions and on information currently
available to our management. Forward-looking statements include all
statements that are not historical facts and can be identified by
terms such as “anticipates,” “believes,” “could,” “seeks,”
“estimates,” “expects,” “intends,” “may,” “plans,” “potential,”
“predicts,” “projects,” “should,” “will,” “would” or similar
expressions that convey uncertainty of future events or outcomes
and the negatives of those terms. Forward-looking statements
include information concerning our possible or assumed future
results of operations, business strategies, financing plans,
competitive position, industry environment, potential growth
opportunities, potential market opportunities and the effects of
competition. Such statements involve a number of known
and unknown risks and uncertainties that could cause our future
results, performance or achievements to differ significantly from
the results, performance or achievements expressed or implied by
such forward-looking statements. Some of the important factors that
could cause or contribute to such differences include the
following: a high proportion of the sales of the InFat product is
to our customers who then use it in their infant formula products
sold to end users in China and therefore our revenues are subject
to the effects of Chinese market trends and competition from
locally produced products that are not subject to import taxes;
growth in the Chinese economy has moderated and this slowdown and
related volatility could adversely impact demand for our products
in China; we are subject to a degree of customer concentration and
our customers do not enter into long-term purchase commitments with
us; the demand for products based on omega-3, and, in particular,
premium products such as krill oil, has declined in the past and
may continue to decline, which, together with a significant
increase in capacity by competing manufacturers, may continue to
cause intense competition and price pressures; Chinese regulations
relating to infant formula are under re-examination, and any
regulatory changes affecting the ability of our customers to market
infant nutrition products containing InFat could adversely affect
our business; we rely on our Swedish joint venture partner to
manufacture InFat; a significant portion of the sales of our InFat
product is to a single company and if this company were to suffer
financially or reduce its use of InFat our business could be
materially adversely affected; our offering of products as "medical
foods" in the United States may be challenged by regulatory
authorities; our product development cycle is lengthy and
uncertain, and our development or commercialization efforts for our
products may be unsuccessful; our inventories include sensitive
compounds which may face spoilage or obsolescence; potential future
acquisitions of companies or technologies may require management’s
time and attention, disrupt our business and not yield the returns
expected; variations in the cost of raw materials for the
production of InFat may have a material adverse effect on our
business; we are dependent on a single facility that houses the
majority of our operations; we anticipate that the markets in which
we operate will become more competitive and we may be unable to
compete effectively; we may have to pay royalties with respect to
sales of our krill oil products in the United States or Australia
and any infringement of intellectual property of others could also
require us to pay royalties; unfavorable publicity or consumer
perception of our products, the supplements that contain them as
ingredients and any similar products distributed by other companies
could have a material adverse effect on our reputation, the demand
for our products and our business; we depend on third parties to
obtain raw materials, in particular krill, necessary for the
production of our products; we are generally reliant upon third
parties for the distribution or commercialization of our products;
we may not be able to maintain or increase market acceptance for
our products; we are subject to risks relating to the operation and
expansion of our production or processing facilities and
capabilities; disruption to our IT system could adversely affect
our reputation and have a material adverse impact on our business
and results of operations; we are not able to predict the results
of clinical trials, which may prove unsuccessful or be delayed by
certain factors; our ability to obtain krill may be affected
by conservation regulation or initiatives; we could be subject to
product liability lawsuits, which could result in costly and
time-consuming litigation and significant liabilities; and other
factors discussed under the heading "Risk Factors" in our annual
report on Form 20-F for the year ended December 31, 2015 filed with
the Securities and Exchange Commission on March 3, 2016.
You should not put undue reliance on any
forward-looking statements. Although we believe that the
expectations reflected in the forward-looking statements are
reasonable, we cannot guarantee that future results, levels of
activity, performance and events and circumstances reflected in the
forward-looking statements will be achieved or will occur. These
forward-looking statements are made only as of the date hereof, and
the Company undertakes no obligation to update or revise the
forward-looking statements, whether as a result of new information,
future events or otherwise.
About Enzymotec Ltd.
Enzymotec is a leading global supplier of specialty
lipid-based products and solutions. The Company develops,
manufactures and markets innovative bio-active lipid ingredients,
as well as final products, based on sophisticated processes and
technologies.
Non-GAAP Financial Measures
Adjusted EBITDA and non-GAAP net income are metrics
used by management to measure operating performance. Adjusted
EBITDA represents net income excluding (i) financial expenses, net,
(ii) taxes on income, (ii) depreciation and amortization, (iv)
share-based compensation expense, and (v) other unusual income or
expenses, and after giving effect to the change from the equity
method of accounting for our joint venture to the proportionate
consolidation method. Non-GAAP net income represents net
income, excluding (i) share-based compensation expense, and (ii)
other unusual income or expenses.
The Company presents Adjusted EBITDA as a
supplemental performance measure because it believes it facilitates
operating performance comparisons from period to period and company
to company by backing out potential differences caused by
variations in capital structures (affecting interest expenses,
net), changes in foreign exchange rates that impact financial asset
and liabilities denominated in currencies other than our functional
currency (affecting financial expenses, net), tax positions (such
as the impact on periods or companies of changes in effective tax
rates) and the age and book depreciation of fixed assets (affecting
relative depreciation expense). In addition, both Adjusted
EBITDA and non-GAAP net income exclude the non-cash impact of
share-based compensation and a number of unusual items that the
Company does not believe reflect the underlying performance of our
business. Because Adjusted EBITDA and Non-GAAP net income
facilitate internal comparisons of operating performance on a more
consistent basis, the Company also uses adjusted EBITDA and
non-GAAP net income in measuring our performance relative to that
of our competitors. Adjusted EBITDA and non-GAAP net income
are not measures of our financial performance under GAAP and should
not be considered as alternatives to net income, operating income
or any other performance measures derived in accordance with GAAP
or as alternatives to cash flow from operating activities as
measures of the Company's profitability or liquidity.
Adjusted EBITDA and non-GAAP net income have
limitations as an analytical tool, and you should not consider it
in isolation or as a substitute for analysis of the company's
results as reported under U.S. GAAP as the excluded items may have
significant effects on the Company's operating results and
financial condition. When evaluating the Company's performance, you
should consider Adjusted EBITDA alongside other financial
performance measures, including cash flow metrics, operating
income, net income, and the Company's other U.S. GAAP results.
The following table presents a reconciliation of
Adjusted EBITDA to net income for each of the periods
indicated:
|
|
|
|
|
Three Months Ended March
31, |
|
2016 |
|
2015 |
|
|
U.S. dollars in thousands |
Reconciliation of adjusted EBITDA to net
income: |
|
|
|
Adjusted
EBITDA |
|
$ |
2,741 |
|
|
$ |
2,683 |
|
Accounting for joint venture |
|
|
(97 |
) |
|
|
(109 |
) |
Depreciation and amortization |
|
|
(648 |
) |
|
|
(535 |
) |
Share-based compensation expense |
|
|
(647 |
) |
|
|
(388 |
) |
Operating income |
|
|
1,349 |
|
|
|
1,651 |
|
Financial income – net |
|
|
(154 |
) |
|
|
(99 |
) |
Income
before taxes on income |
|
|
1,503 |
|
|
|
1,750 |
|
Taxes on
income |
|
|
(126 |
) |
|
|
(94 |
) |
Share in
profits of equity investee |
|
|
71 |
|
|
|
83 |
|
Net
income |
|
$ |
1,448 |
|
|
$ |
1,739 |
|
|
|
|
|
|
Three Months Ended March
31, |
|
|
2016 |
|
|
|
2015 |
|
|
|
U.S.
dollars in thousands |
Reconciliation of Non-GAAP net income to GAAP net
income: |
|
|
|
Non-GAAP net income |
|
$ |
2,095 |
|
|
$ |
2,127 |
|
Share-based compensation
expenses |
|
|
(647 |
) |
|
|
(388 |
) |
Net income |
|
$ |
1,448 |
|
|
$ |
1,739 |
|
|
ENZYMOTEC LTD. |
CONDENSED CONSOLIDATED UNAUDITED STATEMENTS OF
OPERATIONS AND COMPREHENSIVE INCOME |
|
|
|
Three
Months Ended March 31, |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
U.S.
dollars in thousands (except per share data) |
NET REVENUES |
|
$ |
13,966 |
|
|
$ |
11,299 |
|
COST OF REVENUES * |
|
|
(4,636 |
) |
|
|
4,297 |
|
GROSS PROFIT |
|
|
9,330 |
|
|
|
7,002 |
|
OPERATING EXPENSES: |
|
|
|
|
|
|
|
|
Research and development – net
* |
|
|
1,899 |
|
|
|
1,414 |
|
Selling and marketing * |
|
|
4,317 |
|
|
|
2,423 |
|
General and administrative * |
|
|
1,765 |
|
|
|
1,514 |
|
Total operating expenses |
|
|
7,981 |
|
|
|
5,351 |
|
OPERATING INCOME |
|
|
1,349 |
|
|
|
1,651 |
|
FINANCIAL INCOME – net |
|
|
154 |
|
|
|
99 |
|
INCOME BEFORE TAXES ON INCOME |
|
|
1,503 |
|
|
|
1,750 |
|
TAXES ON INCOME |
|
|
(126 |
) |
|
|
(94 |
) |
SHARE IN PROFITS OF EQUITY INVESTEE |
|
|
71 |
|
|
|
83 |
|
NET INCOME |
|
$ |
1,448 |
|
|
$ |
1,739 |
|
OTHER COMPREHENSIVE INCOME: |
|
|
|
|
|
|
|
|
Currency translation
adjustments |
|
$ |
67 |
|
|
$ |
(128 |
) |
Unrealized loss on marketable
securities |
|
|
156 |
|
|
|
118 |
|
Cash flow hedge |
|
|
(67 |
) |
|
|
634 |
|
TOTAL COMPREHENSIVE INCOME |
|
$ |
1,604 |
|
|
$ |
2,363 |
|
EARNINGS PER SHARE: |
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.06 |
|
|
$ |
0.08 |
|
Diluted |
|
$ |
0.06 |
|
|
$ |
0.08 |
|
WEIGHTED AVERAGE NUMBER OF ORDINARY SHARES: |
|
|
|
|
|
|
|
|
USED IN COMPUTATION OF EARNINGS PER SHARE: |
|
|
|
|
|
|
|
|
Basic |
|
|
22,671,302 |
|
|
|
22,379,987 |
|
Diluted |
|
|
22,356,939 |
|
|
|
23,056,663 |
|
|
* The above items are inclusive of the following
share-based compensation expense:
|
|
|
|
|
|
|
|
|
Cost of revenues |
|
$ |
40 |
|
|
$ |
30 |
|
Research and development - net |
|
|
99 |
|
|
|
56 |
|
Selling and marketing |
|
|
213 |
|
|
|
97 |
|
General and administrative |
|
|
295 |
|
|
|
205 |
|
|
|
$ |
647 |
|
|
$ |
388 |
|
|
ENZYMOTEC LTD. |
CONDENSED CONSOLIDATED UNAUDITED BALANCE
SHEETS |
|
|
|
March 31 |
|
|
|
December 31 |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
U.S.
dollars in thousands |
A s s e t s |
|
|
|
CURRENT ASSETS: |
|
|
|
Cash and cash equivalents |
|
$ |
12,035 |
|
|
$ |
21,987 |
|
Short-term bank deposits and
marketable securities |
|
|
29,717 |
|
|
|
23,051 |
|
Accounts receivable: |
|
|
|
Trade |
|
|
13,205 |
|
|
|
14,956 |
|
Other |
|
|
2,882 |
|
|
|
2,358 |
|
Inventories |
|
|
22,833 |
|
|
|
21,815 |
|
Total current assets |
|
|
80,672 |
|
|
|
84,167 |
|
NON-CURRENT ASSETS: |
|
|
|
|
|
|
|
|
Investment in equity investee |
|
|
1,635 |
|
|
|
1,499 |
|
Marketable securities |
|
|
37,488 |
|
|
|
31,360 |
|
Intangibles, long-term deposits and
other |
|
|
1,068 |
|
|
|
1,116 |
|
Funds in respect of retirement
benefits obligation |
|
|
1,145 |
|
|
|
1,076 |
|
Total non-current assets |
|
|
41,336 |
|
|
|
35,051 |
|
PROPERTY, PLANT AND EQUIPMENT: |
|
|
|
|
|
|
|
|
Cost |
|
|
41,232 |
|
|
|
40,796 |
|
L e s s - accumulated depreciation
and amortization |
|
|
11,708 |
|
|
|
11,088 |
|
|
|
|
29,524 |
|
|
|
29,708 |
|
Total assets |
|
$ |
151,532 |
|
|
$ |
148,926 |
|
|
|
|
|
|
|
|
|
|
Liabilities and shareholders' equity |
|
|
|
CURRENT LIABILITIES: |
|
|
|
Accounts payable and accruals: |
|
|
|
Trade |
|
$ |
6,028 |
|
|
$ |
5,529 |
|
Other |
|
|
5,095 |
|
|
|
5,427 |
|
Total current liabilities |
|
|
11,123 |
|
|
|
10,956 |
|
LONG-TERM LIABILITY - |
|
|
|
Retirement benefits obligation |
|
|
1,420 |
|
|
|
1,253 |
|
Total liabilities |
|
|
12,543 |
|
|
|
12,209 |
|
SHAREHOLDERS' EQUITY: |
|
|
|
|
|
|
|
|
Ordinary shares |
|
|
58 |
|
|
|
58 |
|
Additional paid-in capital |
|
|
124,911 |
|
|
|
124,243 |
|
Accumulated other comprehensive
loss |
|
|
(315 |
) |
|
|
(471 |
) |
Retained earnings |
|
|
14,335 |
|
|
|
12,887 |
|
Total shareholders' equity |
|
|
138,989 |
|
|
|
136,717 |
|
Total liabilities and shareholders'
equity |
|
$ |
151,532 |
|
|
$ |
148,926 |
|
|
ENZYMOTEC LTD. |
CONDENSED CONSOLIDATED UNAUDITED STATEMENTS OF CASH
FLOWS |
|
|
|
Three
Months Ended March 31 |
|
|
2016 |
2015 |
|
|
U.S.
dollars in thousands |
|
|
|
|
CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
Net Income |
|
$ |
1,448 |
|
|
$ |
1,739 |
|
Adjustments required to reflect
cash flows from operations: |
|
|
|
Depreciation and amortization |
|
|
648 |
|
|
|
535 |
|
Share in profits of equity
investee |
|
|
(71 |
) |
|
|
(83 |
) |
Share-based compensation
expense |
|
|
647 |
|
|
|
388 |
|
Loss from sale of property, plant
and equipment |
|
|
|
3 |
|
Change in inventories |
|
|
(1,018 |
) |
|
|
(392 |
) |
Change in accounts receivable and
other |
|
|
1,182 |
|
|
|
(525 |
) |
Change in accounts payable and
accruals |
|
|
414 |
|
|
|
1,543 |
|
Change in other non-current
assets |
|
|
(32 |
) |
|
|
(91 |
) |
Change in retirement benefits
obligation |
|
|
126 |
|
|
|
31 |
|
Net cash provided by operating
activities |
|
|
3,344 |
|
|
|
3,148 |
|
CASH FLOWS FROM INVESTING ACTIVITIES: |
|
|
|
|
|
|
|
|
Purchase of property, plant and
equipment |
|
|
(683 |
) |
|
|
(818 |
) |
Investment in bank deposits and
marketable securities |
|
|
(18,339 |
) |
|
|
(2,023 |
) |
Long-term deposits |
|
|
21 |
|
|
|
1 |
|
Proceeds from sale of property,
plant and equipment |
|
|
|
5 |
|
Proceeds from sale of marketable
securities |
|
|
5,712 |
|
|
|
1,939 |
|
Change in funds in respect of
retirement benefits obligation |
|
|
(28 |
) |
|
|
(28 |
) |
Net cash used in investing
activities |
|
|
(13,317 |
) |
|
|
(924 |
) |
CASH FLOWS FROM FINANCING ACTIVITIES: |
|
|
|
Exercise of options by
employees |
|
|
21 |
|
|
|
57 |
|
Net cash provided by financing
activities |
|
|
21 |
|
|
|
57 |
|
NET
CHANGE IN CASH AND CASH EQUIVALENTS |
|
|
(9,952 |
) |
|
|
2,281 |
|
BALANCE OF CASH AND CASH EQUIVALENTS |
|
|
|
AT BEGINNING OF
PERIOD |
|
|
21,987 |
|
|
|
10,315 |
|
BALANCE OF CASH AND CASH EQUIVALENTS |
|
|
|
|
|
|
|
|
AT END OF
PERIOD |
|
$ |
12,035 |
|
|
$ |
12,596 |
|
|
|
Company Contact
Enzymotec Ltd.
Oren Bryan
Chief Financial Officer
Phone: +972747177177
ir@enzymotec.com
Investor Relations Contact (U.S.)
The Ruth Group
Tram Bui / Lee Roth
Phone: 646-536-7035 / 7012
tbui@theruthgroup.com
lroth@theruthgroup.com
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