New 5-year Supply Agreement with Unilever
Aligns with Company’s Transition to Food, Nutrition and Specialty
Ingredients
Solazyme, Inc. (NASDAQ:SZYM), now known as TerraVia™, a pioneer
in algae innovation and a food, nutrition and specialty ingredients
company, announced today results for the fourth quarter and full
year ended December 31, 2015.
“As announced last week, we are moving forward with a refined
focus on our food, nutrition and specialty ingredients portfolio,
and we are actively transitioning to the TerraVia™ banner,” said
Jonathan Wolfson, CEO of TerraVia™. “Today’s important announcement
with Unilever, in conjunction with the recent expansion of our
joint venture with Bunge into sustainable and healthier foods,
shows that the two companies who know us best are reaffirming and
expanding their commitments with us, representing further
validation of our products, manufacturing capabilities, cost
structure and sustainability profile. In an era when most of the
innovation taking place in food is in the reformulation,
repackaging, and marketing of existing products and ingredients, we
are different in that we have built and offer true innovation with
new, and unique ingredients based on algae, the mother of all
plants, and earth’s original superfood. As TerraVia™, we are today
uniquely positioned to bring algae into the mainstream in food,
nutrition and specialty ingredients.”
Solazyme announced separately today that it has signed a
definitive multi-year global supply agreement with Unilever. The
five-year, multi-oil supply agreement provides for Unilever to
purchase renewable algae oils for use in personal care products and
is expected to represent total revenue of more than $200 million
over the term of the agreement. The agreement follows last week’s
announcement that Solazyme is refining its business to focus on
food, nutrition and specialty ingredients, harnessing the power of
its transformational algae innovation platform. Solazyme has been
renamed “TerraVia” to reflect this focus and the journey to improve
the lives of people and the planet.
“We have streamlined our cost structure, strengthened our
capital position, and are in a good position to commercialize our
offerings in 2016 and beyond,” said Tyler Painter, COO and CFO of
TerraVia™. “We move forward as TerraVia™ with an improved financial
profile, and we believe our refined focus positions us to deliver
enhanced performance and profitability longer term.”
Financial Results
Total revenue for the fourth quarter of 2015 was $10.4 million
compared with $14.5 million in the fourth quarter of 2014. GAAP net
loss was $34.7 million for the fourth quarter of 2015, compared to
net loss of $44.9 million in the prior year period. On a non-GAAP
basis, the net loss was $26.1 million for the fourth quarter of
2015, compared with net loss of $35.5 million in the prior year
quarter. A reconciliation of GAAP to non-GAAP results is included
below.
Total revenue for 2015 was $46.1 million compared with $60.4
million in the prior year. The year over year decline in revenues
was due to expected decreases in funded program revenue and lower
product sales primarily for certain industrial applications as the
Company strategically narrowed its focus on higher value product
sales. Full year 2015 GAAP net loss was $141.4 million, compared
with a $162.1 million loss in the prior year. On a non-GAAP basis,
the net loss was $118.3 million for 2015, compared with $133.4
million in 2014.
Conference Call
Solazyme will hold a conference call for investors on March 14,
2016 at 1:30 p.m. PT (4:30 p.m. ET). Investors may access the call
by dialing 973-409-9250. A live webcast of the call will be
available from the Investor Relations section of www.solazyme.com.
A recording of the call will also be available by calling
404-537-3406; access code 60294557 beginning approximately two
hours after the call, and will be available for one week. A webcast
replay from today’s call will also be available from the Investor
Relations section of www.solazyme.com approximately two hours after
the call and will be available for up to thirty days.
About TerraVia™
TerraVia™ (formerly Solazyme®), is a next generation food,
nutrition and specialty ingredients company that harnesses the
power of algae, the mother of all plants and earth’s original
superfood. With a portfolio of breakthrough ingredients and
manufacturing, the Company is well positioned to help meet the
growing need of consumer packaged goods and established and
emerging food manufacturers to improve the nutritional profile of
foods without sacrificing taste, and to develop select consumer
brands. The Company also manufactures a range of specialty personal
care ingredients for key strategic partners. Headquartered in South
San Francisco, the Company’s mission is to create products that are
truly better for people and better for the planet. For additional
information, please visit TerraVia’s website at
www.terravia.com.
Solazyme®, TerraVia™, the Solazyme logo and other trademarks or
service names are the trademarks of Solazyme, Inc.
Non-GAAP Financial Measures
This press release includes the following financial measure
defined as a “non-GAAP financial measure” by the Securities and
Exchange Commission: non-GAAP net loss and non-GAAP net loss per
share. These measures may be different from non-GAAP financial
measures used by other companies. The presentation of this
financial information, which is not prepared under any
comprehensive set of accounting rules or principles, is not
intended to be considered in isolation or as a substitute for the
financial information prepared and presented in accordance with
generally accepted accounting principles. For a reconciliation of
these non-GAAP financial measures to the nearest comparable GAAP
measure, see “Reconciliation of GAAP to Non-GAAP Net Loss and Net
Loss per Share” included in the tables to this press release.
These non-GAAP measures are provided to enhance investors’
overall understanding of Solazyme’s current financial performance
and Solazyme’s prospects for the future. Specifically, Solazyme
believes these non-GAAP measures provide useful information to both
management and investors by excluding certain expenses that may not
be indicative of its core operating results and business
outlook.
For its internal budgeting process, Solazyme’s management uses
financial measures that do not include stock-based compensation
expense, restructuring charges or special expenses such as non-cash
gains or losses related to derivative liabilities and warrant
revaluations. In addition to the corresponding GAAP measure,
Solazyme’s management also uses the foregoing non-GAAP measures in
reviewing the financial results of Solazyme. Solazyme excludes
stock-based compensation expenses and special non-cash charges from
its non-GAAP measures primarily because they are non-cash expenses
that management does not believe are reflective of ongoing
operating results.
Forward Looking Statements
This press release contains certain forward-looking statements
within the meaning of the Private Securities Litigation Reform Act
of 1995 about Solazyme, including statements that involve risks and
uncertainties concerning: its strategic, product, commercialization
and production plans; its transition of corporate identity; meeting
commercialization and technology targets; aggregate value of future
revenue; the timing and ramp-up of sales; successful product trials
and market acceptance and adoption of its products; its ability to
close its strategic financing; and Solazyme’s ability to maintain
its relationships with its partners. When used in this press
release, the words “will”, “expects”, “intends” and other similar
expressions and any other statements that are not historical facts
are intended to identify those assertions as forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. Any such statement may be influenced by a
variety of factors, many of which are beyond the control of
Solazyme, that could cause actual outcomes and results to be
materially different from those projected, described, expressed or
implied in this press release due to a number of risks and
uncertainties. Potential risks and uncertainties include, among
others: Solazyme’s limited operating history; its limited history
in manufacturing and commercializing products; its ability to
successfully transition its corporate identity; production
management risks; implementation risk in deploying new
technologies; its limited experience in constructing, ramping up
and operating commercial manufacturing facilities; its ability to
successfully develop and commercialize products; its ability to
sell its products at a profit; delays related to ramp-up and
optimization of production facilities; availability of consistent,
reliable power and steam; its ability to manage costs; its ability
to enter into and maintain strategic collaborations; successful
product trials by its customers and market acceptance and adoption
of its products by end-users; its ability to obtain requisite
regulatory approvals; and its access, on favorable terms, to any
required financing. Accordingly, no assurances can be given that
any of the events anticipated by the forward-looking statements
will transpire or occur, or if any of them do so, what impact they
will have on the results of operations or financial condition of
Solazyme.
In addition, please refer to the documents that Solazyme, Inc.
files with the Securities and Exchange Commission, including its
Quarterly Reports on Form 10-Q and Annual Report on Form 10-K, as
updated from time to time, for a discussion of these and other
risks. You are cautioned not to place undue reliance on
forward-looking statements, which speak only as of the date of this
press release. Solazyme is not under any duty to update any of the
information in this press release.
SOLAZYME, INC. CONDENSED CONSOLIDATED STATEMENTS
OF OPERATIONS In thousands, except per share amounts
(UNAUDITED)
Three Months Ended December
31,
Year Ended December 31, 2015 2014
2015 2014
Revenues
Product revenues $ 7,039 $ 9,353 $ 33,300 $
37,346 Research and development programs 3,348
5,149 12,831
23,045 Total revenues
10,387
14,502 46,131 60,391
Costs and
operating expenses
Cost of product revenue 4,578 6,154 18,179 20,612 Research and
development 9,586 18,210 48,094 81,680 Sales, general and
administrative 18,888 22,139 80,733 90,266 Restructuring charges
4,581 3,514
4,953 3,514 Total costs and operating
expenses
37,633 50,017 151,959 196,072
Loss from operations
(27,246
) (35,515 ) (105,828 )
(135,681 )
Other income
(expense)
Interest and other income (expense), net (3,323 ) (3,205 ) (13,231
) (12,167 ) Loss from equity method investments (4,098 ) (7,724 )
(22,389 ) (23,037 ) Gain from change in fair value of warrant
liability - - - 688 Gain (loss) from change in fair value of
derivative liabilities (26 ) 1,578
1 8,056 Total
other income (expense), net
(7,447 ) (9,351
) (35,619 ) (26,460 )
Net loss $ (34,693
) $ (44,866 ) $
(141,447 ) $ (162,141 )
Net loss per share - basic and diluted $
(0.43 ) $ (0.57 )
$ (1.76 ) $ (2.14
)
Weighted average number of common
shares used in netloss per share computation - basic and
diluted
80,600 79,330 80,165 75,879
SOLAZYME, INC. RECONCILIATION OF GAAP TO NON-GAAP
NET LOSS AND NET LOSS PER SHARE In thousands, except per share
amounts (UNAUDITED)
Three Months
Ended December 31, Year Ended December 31,
2015 2014
2015 2014
GAAP Net loss $ (34,693 ) $ (44,866 ) $
(141,447 ) $ (162,141 ) Gain from change in fair value of
warrant liability - - - (688 ) (Gain) loss from change in fair
value of derivative liabilities 26 (1,578 ) (1 ) (8,056 )
Operating expenses includes costs as
follows:
Research and development 967 1,736 4,562 7,407 Sales, general and
administrative 2,405 5,120
11,122 18,142
Total stock-based compensation expense 3,372 6,856 15,684 25,549
Litigation settlement, net of insurance reimbursement - (8 ) -
4,499 Restructuring charges 4,581 3,514 4,953 3,514
Other income (expense) includes costs as
follows:
Amortization of debt discount and issuance costs 654 612 2,554
2,206 Debt conversion expense -
- - 1,766
Non-GAAP Net loss $ (26,060 )
$ (35,470 ) $
(118,257 ) $ (133,351 )
GAAP Net loss per share - basic and diluted $ (0.43 ) $
(0.57 ) $ (1.76 ) $ (2.14 ) Gain from change in fair value
of warrant liability - - - (0.01 ) (Gain) loss from change in fair
value of derivative liabilities - (0.02 ) - (0.11 ) Stock-based
compensation expense 0.04 0.09 0.19 0.34 Litigation settlement, net
of insurance reimbursement - - - 0.06 Restructuring charges 0.06
0.04 0.06 0.05 Amortization of debt discount and issuance costs
0.01 0.01 0.03 0.03 Debt conversion expense -
- - 0.02
Non-GAAP Net loss per share - basic and diluted
$ (0.32 ) $ (0.45
) $ (1.48 ) $
(1.76 ) SOLAZYME, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS In thousands
(UNAUDITED)
December 31, December 31, 2015 2014
Assets
Current
assets
Cash, cash equivalents and marketable securities $ 97,975 $
207,308 Other current assets 20,969
26,619
Total current assets 118,944
233,927 Property, plant and equipment - net 26,344 36,080
Investment in Solazyme Bunge JV 35,910 40,934 Other assets
1,225 1,648
Total assets
$ 182,423 $
312,589
Liabilities and
stockholders' equity
Current
liabilities
Current portion of long-term debt $ - $ 6 Other current liabilities
25,330 23,448
Total current
liabilities 25,330 23,454 Other liabilities 1,102
2,668 Long-term debt 202,466
200,091
Total liabilities 228,898
226,213 Total stockholders'
(deficit) equity (46,475 )
86,376 Total liabilities and stockholders'
(deficit) equity $ 182,423 $
312,589
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Solazyme, Inc.Corporate Communications:Genet
Garamendiinfo@terravia.compress@solazyme.comorJM Strategic
Communications GroupJeff Majtyka,
646-776-0886jeff@jmscgroup.com