Exhibit 99.1

 

LOGO

 

  Codexis, Inc.
  200 Penobscot Drive
  Redwood City, CA 94063
  Tel: 650.421.8100
  www.codexis.com

Codexis Reports Fourth Quarter and Full Year 2011 Results

49% Annual Increase in Pharmaceutical Product Sales;

CodeXyme Cellulase Enzymes and CodeXol Detergent Alcohol Product Lines Launched

Redwood City, CA – Codexis, Inc. (NASDAQ: CDXS), a developer of industrial enzymes to enable the production of biofuels, bio-based chemicals, and pharmaceutical intermediates, today announced financial results for the fourth quarter and year ended December 31, 2011.

“In 2011, we launched our CodeXyme cellulase enzymes and CodeXol detergent alcohol product lines,” said Alan Shaw, Ph.D., President and CEO of Codexis, Inc. “In 2012 we are focused on delivering world-class CodeXyme cellulase enzymes to our development partners, piloting production of CodeXol, and delivering continued sales growth in our pharmaceuticals products and services”.

Full Year 2011 Financial Highlights:

Revenue: For fiscal 2011, the company reported revenues of $123.9 million, an increase of $16.8 million or 16% over fiscal 2010 revenue of $107.1 million. Product revenue of $49.0 million increased $16.2 million or 49% over the prior year, driven by increased sales to both generic and innovator pharmaceutical customers. Collaborative R&D revenue of $71.4 million increased $1.2 million from $70.2 million over the prior year.

Operating Expenses: Research and development expenses for fiscal 2011 were $61.0 million, compared to $52.4 million for fiscal 2010. The increase was primarily due to additional headcount and amortization related to intellectual property purchased from Maxygen, Inc. Selling, general and administrative expenses for fiscal 2011 increased to $36.9 million compared to $33.8 million for fiscal 2010, driven by higher stock compensation expense and higher compensation expense due to headcount increases.

Net Loss: Net loss was ($16.6) million, or ($0.46) per share, based on 35.7 million weighted average common shares outstanding for fiscal year 2011. This compares to a net loss of ($8.5) million.

Adjusted EBITDA: On a non-GAAP basis, Adjusted EBITDA was $4.3 million for fiscal 2011 compared to $9.9 million for fiscal 2010. Adjusted EBITDA is calculated by adjusting net loss for net interest expense, income taxes, depreciation, amortization, stock-based compensation and preferred stock warrant fair market valuation. A reconciliation of net loss to Adjusted EBITDA is presented below.

Cash: Cash, cash equivalents and marketable securities at December 31, 2011, was $63.8 million compared to $74.1 million at December 31, 2010. The company used ($0.5) million in cash from operations in fiscal 2011.

 

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Fourth Quarter 2011 Financial Highlights:

Revenue: For the fourth quarter of 2011, the company reported revenues of $33.5 million, an increase of $3.7 million or 12% over $29.8 million in the fourth quarter of 2010. Product revenue increased $6.9 million or 80% over the same time period of 2010.

Operating Expenses: Research and development expenses in the fourth quarter of 2011 were $15.5 million, compared to $13.3 million for the fourth quarter of 2010. The increase was primarily due to additional headcount for the development of CodeXol Detergent Alcohol. Selling, general and administrative expenses in the fourth quarter of 2011 increased to $9.8 million, compared to $8.6 million over the same time period of 2010, related to use of consultants, legal costs associated with intellectual property patent filing and increased costs related to SOX compliance.

Net Loss: Net loss was ($5.3) million, or ($0.15) per share, based on 36.0 million weighted average common shares outstanding in the fourth quarter of 2011. This compares to a net loss of ($0.5) million or ($0.01) per share during the fourth quarter of 2010.

Adjusted EBITDA: On a non-GAAP basis, Adjusted EBITDA decreased from $4.4 million in the fourth quarter of 2010 to ($0.2) million in the fourth quarter of 2011. Adjusted EBITDA is calculated by adjusting net loss for net interest expense, income taxes, depreciation, amortization, stock-based compensation and preferred stock warrant fair market valuation. A reconciliation of net loss to Adjusted EBITDA is presented below.

Cash: Cash, cash equivalents and marketable securities at December 31, 2011 was $63.8 million compared to $70.6 million at September 30, 2011. The company used ($2.9) million in cash from operations in the fourth quarter.

Outlook

Codexis’ statements with regard to its outlook are based on current expectations. The following statements are forward looking, and actual results could differ materially depending on market conditions and the factors set forth under “Forward-Looking Statements” below.

For the full year 2012, Codexis forecasts revenues in line with or exceeding 2011 results. Codexis expects 2012 Adjusted EBITDA will be positive.

Conference Call

Codexis will hold a conference call for investors on February 7, 2012 at 1:30 p.m. PT (4:30 p.m. ET). The conference call dial-in numbers are US: 866-788-0541 or International: 857-350-1679,

 

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access code 54501345. A live webcast of the call will also be available from the Investor Relations section of www.codexis.com. A recording of the call will be available by calling US: 888-286-8010 or International: 617-801-6888, access code 84268524 beginning approximately two hours after the call, and will be available for up to thirty days. A webcast replay from today’s call will also be available from the Investor Relations section of www.codexis.com approximately two hours after the call and will be available for up to thirty days.

About Codexis, Inc.

Codexis is an industrial biotechnology company developing enzymes for the production of high value sustainable chemicals, clean fuels, cost effective pharmaceutical processes and renewable bioindustrial ingredients to make industry more efficient, productive and profitable. Partners and customers include global leaders such as Shell, Merck and Pfizer. For more information, see www.codexis.com.

Forward-Looking Statements

This press release contains forward-looking statements relating to Codexis’ forecast for 2012 revenue and Adjusted EBITDA, and Codexis’ ability to deliver CodeXyme cellulase enzymes to its development partners in 2012, pilot production of CodeXol in 2012, and deliver sales growth in its pharmaceuticals products and services in 2012. You should not place undue reliance on these forward-looking statements because they involve known and unknown risks, uncertainties and other factors that are, in some cases, beyond our control and that could materially affect actual results. Factors that could materially affect actual results include the risks that our operating results may fluctuate in the future, that we have a history of net losses and that we may be unable to successfully commercialize our technology in biofuels. Additional factors that could materially affect actual results can be found in Codexis’ Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on November 7, 2011, including under the caption “Risk Factors.” Codexis expressly disclaims any intent or obligation to update these forward-looking statements, except as required by law.

 

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Codexis, Inc.

Condensed Consolidated Statements of Operations

(Unaudited)

(In Thousands, Except Per Share Amounts)

 

     Three Months Ended           Year Ended        
     December 31,           December 31,        
     2011     2010     % change     2011     2010     % change  

Revenues:

            

Product

   $ 15,493      $ 8,586        80   $ 49,021      $ 32,835        49

Collaborative research and development

     17,296        20,746        -17     71,368        70,196        2

Government grants

     705        479        47     3,476        4,073        -15
  

 

 

   

 

 

     

 

 

   

 

 

   

Total revenues

     33,494        29,811        12     123,865        107,104        16
  

 

 

   

 

 

     

 

 

   

 

 

   

Costs and operating expenses:

            

Cost of product revenues

     13,067        8,126        61     41,781        27,982        49

Gross margin $

     2,426        460        427     7,240        4,853        49

Gross margin %

     16     5       15     15  

Research and development

     15,548        13,349        16     61,049        52,405        16

Selling, general and administrative

     9,782        8,649        13     36,942        33,841        9
  

 

 

   

 

 

     

 

 

   

 

 

   

Total costs and operating expenses

     38,397        30,124        27     139,772        114,228        22
  

 

 

   

 

 

     

 

 

   

 

 

   

Loss from operations

     (4,903     (313     1466     (15,907     (7,124     123

Interest income

     77        31        148     273        166        64

Interest expense and other, net

     (297     (153     94     (675     (1,199     -44
  

 

 

   

 

 

     

 

 

   

 

 

   

Loss before provision for income taxes

     (5,123     (435     1078     (16,309     (8,157     100

Provision for income taxes

     174        60        190     241        384        -37
  

 

 

   

 

 

     

 

 

   

 

 

   

Net loss

   $ (5,297   $ (495     970   $ (16,550   $ (8,541     94
  

 

 

   

 

 

     

 

 

   

 

 

   

Net loss per share of common stock, basic and diluted

   $ (0.15   $ (0.01     $ (0.46   $ (0.35  
  

 

 

   

 

 

     

 

 

   

 

 

   

Weighted average common shares used in computing net loss per share of common stock, basic and diluted

     35,965        34,452          35,674        24,594     
  

 

 

   

 

 

     

 

 

   

 

 

   

 

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Codexis, Inc.

Condensed Consolidated Balance Sheets

(Unaudited)

(In Thousands)

 

     December 31,
2011
    December 31,
2010
 

Assets

    

Current assets:

    

Cash and cash equivalents

   $ 25,762      $ 72,396   

Marketable securities

     27,720        —     

Accounts receivable, net

     18,917        15,333   

Inventories

     4,488        2,817   

Prepaid expenses and other current assets

     2,345        1,646   
  

 

 

   

 

 

 

Total current assets

     79,232        92,192   

Restricted cash

     1,511        1,466   

Non-current marketable securities

     10,348        1,650   

Property and equipment, net

     24,176        21,452   

Intangible assets, net

     16,442        20,158   

Goodwill

     3,241        3,241   

Other non-current assets

     972        1,141   
  

 

 

   

 

 

 

Total assets

   $ 135,922      $ 141,300   
  

 

 

   

 

 

 

Liabilities and stockholders’ equity

    

Current liabilities:

    

Accounts payable

   $ 10,364      $ 9,208   

Accrued compensation

     6,785        8,107   

Other accrued liabilities

     7,354        5,630   

Deferred revenues

     3,789        4,539   
  

 

 

   

 

 

 

Total current liabilities

     28,292        27,484   

Deferred revenues, net of current portion

     1,485        5,074   

Other long-term liabilities

     3,455        1,381   
  

 

 

   

 

 

 

Total liabilities

     33,232        33,939   

Stockholders’ equity:

    

Common stock

     4        4   

Additional paid-in capital

     287,792        275,540   

Accumulated other comprehensive income (loss)

     (407     (34

Accumulated deficit

     (184,699     (168,149
  

 

 

   

 

 

 

Total stockholders’ equity

     102,690        107,361   
  

 

 

   

 

 

 

Total liabilities and stockholders’ equity

   $ 135,922      $ 141,300   
  

 

 

   

 

 

 

 

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Codexis, Inc.

Condensed Consolidated Statements of Cash Flow

(Unaudited)

(In Thousands)

 

     Year Ended
December 31,
 
     2011     2010  

Operating activities:

    

Net loss

   $ (16,550   $ (8,541

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

    

Amortization of intangible assets

     3,716        1,063   

Depreciation and amortization of property and equipment

     7,755        7,246   

Revaluation of redeemable convertible preferred stock warrant liability

     —          677   

Loss (gain) on disposal of property and equipment

     49        148   

Gain from extinguishment of asset retirement obligation

     (124     —     

Extinguishment of royalty payable

     —          461   

Stock-based compensation

     9,431        8,737   

Accretion of asset retirement obligation

     39        146   

Amortization of debt discount

     —          26   

Accretion (amortization) of premium/discount on marketable securities

     771        511   

Changes in operating assets and liabilities:

    

Accounts receivable

     (3,583     (8,087

Inventories

     (1,671     98   

Prepaid expenses and other current assets

     (682     13   

Other assets

     513        2,814   

Accounts payable

     1,156        (2,105

Accrued compensation

     (1,322     1,589   

Other accrued liabilities

     4,351        (6,048

Deferred revenues

     (4,339     (15,131
  

 

 

   

 

 

 

Net cash used in operating activities

     (490     (16,383
  

 

 

   

 

 

 

Investing activities:

    

Increase in restricted cash

     (45     (735

Purchase of property and equipment

     (10,736     (6,990

Purchase of marketable securities

     (52,564     (49,051

Purchase of Maxygen patent portfolio

       (20,705

Proceeds from sale of marketable securities

     6,037        1,605   

Proceeds from maturities of marketable securities

     8,500        70,695   

Proceeds from disposal of property and equipment

       15   
  

 

 

   

 

 

 

Net cash used in investing activities

     (48,808     (5,166
  

 

 

   

 

 

 

Financing activities:

    

Principal payments on financing obligations

     —          (8,026

Payments in preparation for initial public offering

     —          (3,870

Proceeds from issuance of common stock on IPO, net of underwriting discounts

     —          72,541   

Proceeds from exercises of stock options

     2,579        1,594   
  

 

 

   

 

 

 

Net cash provided by financing activities

     2,579        62,239   
  

 

 

   

 

 

 

Effect of exchange rate changes on cash and cash equivalents

     85        (79
  

 

 

   

 

 

 

Net increase in cash and cash equivalents

     (46,634     40,611   

Cash and cash equivalents:

    

Beginning of the period

     72,396        31,785   
  

 

 

   

 

 

 

End of the period

     25,762        72,396   

Marketable securities at the end of period

     38,068        1,650   
  

 

 

   

 

 

 

Cash, cash equivalents and marketable securities

   $ 63,830      $ 74,046   
  

 

 

   

 

 

 

Reclassification of preferred stock warrant from liability to additional paid-in capital

     $ 2,686   
    

 

 

 

Conversion of preferred stock to common stock and additional paid-in capital

     $ 179,672   
    

 

 

 

 

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Reconciliation of GAAP to Non-GAAP Financial Information

In this press release, in addition to GAAP financial results, we present Adjusted EBITDA because we believe it assists investors and analysts in comparing our performance across reporting periods on a consistent basis by excluding items that we do not believe are indicative of our core operating performance. In addition, we use Adjusted EBITDA to evaluate the effectiveness of our business strategies.

A reconciliation of GAAP net loss to Adjusted EBITDA is included in the table below.

Codexis, Inc.

Reconciliation of GAAP Net Loss to Adjusted EBITDA

(Unaudited)

(In Thousands)

 

     Three Months Ended
December 31,
    Year Ended
December 31,
 

Calculation of Adjusted EBITDA

   2011     2010     2011     2010  

Net loss

   $ (5,297   $ (495   $ (16,550   $ (8,541

Adjustments:

        

Minus: Interest income

     (77     (31     (273     (166

Plus: Interest expense

     —          5        —          529   

Plus: Income taxes

     174        60        241        384   

Plus: Depreciation and amortization

     3,006        2,609        11,471        8,309   

Plus: Stock-based compensation

     2,038        2,271        9,431        8,737   

Plus: Preferred stock warrant fair market valuation adjustment

     —          —          —          677   
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

   $ (156   $ 4,419      $ 4,320      $ 9,929   
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA has limitations as an analytical tool. Some of these limitations are:

 

   

Adjusted EBITDA does not reflect our cash expenditures, or future requirements, for capital expenditures or contractual commitments;

 

   

Adjusted EBITDA does not reflect changes in, or cash requirements for, our working capital needs;

 

   

Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and Adjusted EBITDA does not reflect any cash requirements for such replacements; and

 

   

Non-cash compensation is and will remain a key element of our overall long-term incentive compensation package, although we exclude it as an expense when evaluating our ongoing operating performance for a particular period.

Because of these limitations, Adjusted EBITDA should not be considered in isolation or as a substitute for performance measures calculated in accordance with GAAP. We compensate for these limitations by relying primarily on our GAAP results and using Adjusted EBITDA only supplementally.

Contacts:

Investors: Jay Sarwar, ir@codexis.com, 650-421-8331

Media: Lyn Christenson, lyn.christenson@codexis.com, 650-421-8144 or Saskia Sidenfaden, ssidenfaden@mww.com, 212-827-3771.

 

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