BioAmber Announces Third Quarter 2017 Financial Results

MONTREAL, Nov. 7, 2017 /CNW Telbec/ - BioAmber Inc.  (NYSE: BIOA) (TSX: BIOA) – a leader in renewable materials today announced operational and financial results for the three months ended September 30, 2017.

Highlights:

• Sales of bio-succinic acid were $3.3m, compared to $3.7m in Q3 2016.  Nine months sales ended September 30, 2017 were $9.5m compared to nine month sales ended September 30, 2016 of $7.6m. An increase of 25% year over year.
• On August 1, 2017, BioAmber entered into a definitive agreement to buy back Mitsui & Co., Ltd.'s entire minority equity stake in the Sarnia manufacturing joint venture. BioAmber now owns 100% of the BioAmber Sarnia production facility.
• On August 11, 2017, BioAmber closed an $11 million offering of stock and warrants.
• On September 14, 2017, BioAmber announced the appointment of Mr. Richard Eno, as its new Chief Executive Officer.
• BioAmber has agreed to extend the pre-commercialization period with CJCJ through to the end of 2017.
• As of October 12, 2017, BioAmber celebrated an outstanding Safety Milestone of 5 years without a Lost Time industrial accident. This translates to over 1,800 days without an injury.

"I am excited to join BioAmber at this stage of development.  Our technology is proven, we have identified numerous opportunities to drive down our variable costs, and our customer base and application pattern continues to expand," stated Richard Eno, BioAmber's Chief Executive Officer. "I look forward to leading the company as we grow our sales from Sarnia creating a foundation for long term profitable growth."

Q3 2017 Financial Results

Revenues for the quarter ended September 30, 2017 were $3.3 million, a decrease of 10% over the same quarter last year, mainly driven by a decrease in succinic acid volume, slightly offset by an increase in average selling price.

Cost of goods sold increased from $5 million to $6 million for the three months ended September 30, 2017 compared to the three months ended September 30, 2016, driven primarily by an increase in production volume and an increase in royalties.  

General and administrative expenses increased by $0.6 million to $2.3 million for the three months ended September 30, 2017, as compared to $1.8 million for the three months ended September 30, 2016. This is mainly due to recruiting fees associated with the hiring of a new CEO and an increase in legal fees. Excluding these and other non-recurring charges, general and administrative expenses were flat compared to last year.

Research and development expenses decreased by $0.6 million to $1.2 million for the three months ended September 30, 2017, as compared to $1.8 million for the three months ended September 30, 2016, primarily attributable to a reduction in the R&D efforts required to support the Sarnia facility.

Financial charges (income), net decreased to an income of $0.9 million for the three months ended September 30, 2017 as compared to a charge of $3.2 million for the three months ended September 30, 2016. This variation of $4.1 million is mainly due to the non-cash mark-to-market adjustment change of $3.5 million on all outstanding warrants.  It is also attributable to a decrease in interest and end of term charges on long-term debt due to the full repayment of the Bridging Loan in January 2017. This decrease is partially offset by the issuance costs associated with the January 2017 and the August 2017 Warrants classified as liabilities. 

The Company recorded a net loss attributable to BioAmber Inc. shareholders of $7.0 million, or a loss of $0.16 per share, for the quarter ended September 30, 2017, compared to a net loss of $6.2 million, or a loss of $0.21 per share, for the same period last year.

The Adjusted Net Loss Attributable to BioAmber Inc. Shareholders for the quarter ended September 30, 2017 was $9.4 million, or a loss of $0.21 per share, compared to an Adjusted Net Loss Attributable to BioAmber Inc. Shareholders of $7.4 million, or a loss of $0.26 per share, for the three months ended September 30, 2016.  Adjusted Net Loss Attributable to BioAmber Inc. Shareholders is a non-GAAP financial metric that excludes the impact of the change in fair value of the IPO, Legacy, January 207 and August 2017 Warrants and grant revenue.

Please refer to Annex A: "Non-GAAP Financial Information—Adjusted Net Loss Attributable to BioAmber Inc. Shareholders" for more information regarding this non-GAAP financial metric.

About BioAmber

BioAmber (NYSE: BIOA, TSX: BIOA) is a renewable materials company. Its innovative technology platform combines biotechnology and catalysis to convert renewable feedstock into building block materials that are used in a wide variety of everyday products including plastics, paints, textiles, food additives and personal care products.  For more information visit www.bio-amber.com

Forward-Looking Statements
This press release contains forward-looking statements, which are subject to substantial risks, uncertainties and assumptions. These statements often include words such as "believe," "expect," "anticipate," "intend," "plan," "estimate," "seek," "will," "may" or similar expressions. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that the events and circumstances reflected in the forward-looking statements will be achieved or occur and the timing of events and circumstances and actual results could differ materially from those projected in the forward- looking statements. Accordingly, you should not place undue reliance on these forward-looking statements. All such statements speak only as of the date made, and we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.   For additional disclosure regarding these and other risks faced by BioAmber, see disclosures contained in BioAmber's public filings with the SEC, including the "Risk Factors" section of BioAmber's Annual Report on Form 10-K and the most recent quarterly report on Form 10-Q.

ANNEX A:Non-GAAP Financial Information

Adjusted Net Loss Attributable to BioAmber Inc. Shareholders

BioAmber presents Adjusted Net Loss Attributable to BioAmber Inc. Shareholders as a supplemental measure of BioAmber's performance.  Adjusted Net Loss Attributable to BioAmber Inc. Shareholders is a non-GAAP financial metric that excludes, for the quarter ended September 30, 2017, the impact of the change in fair value of the IPO Warrants, Legacy Warrants, January 2017 Warrants and August 2017 Warrants. For the quarter ended September 30, 2016, it excludes the impact of the change in fair value of the IPO Warrants, Legacy Warrants, and the grant income. The above items are excluded from BioAmber's Adjusted Net Loss Attributable to BioAmber Inc. Shareholders because these items are non-cash in nature, or because the amount and timing of these items are either unpredictable or not driven by current operating results and renders comparisons with prior periods and competitors less meaningful.  BioAmber believes Adjusted Net Loss Attributable to BioAmber Inc. Shareholders is a useful measure for analysts and investors to evaluate BioAmber's future ongoing performance as this measure allows for a more meaningful comparison of BioAmber's projected cash earnings and performance with its historical results from prior periods and to the results of its competitors.  Adjusted Net Loss Attributable to BioAmber Inc. Shareholders corresponds more closely to the cash operating income generated from BioAmber's business and allows investors to gain an understanding of the factors and trends affecting the ongoing cash earnings capabilities of BioAmber's business.

Adjusted Net Loss Attributable to BioAmber Inc. Shareholders has certain limitations in that it does not take into account the impact of certain expenses to BioAmber's consolidated statements of operations.  In evaluating Adjusted Net Loss Attributable to BioAmber Inc. Shareholders, you should be aware that in the future BioAmber may incur expenses similar to the adjustments in this presentation. BioAmber's presentation of Adjusted Net Loss Attributable to BioAmber Inc. Shareholders should not be construed as an inference that BioAmber's future results will be unaffected by unusual or non-recurring items. Adjusted Net Loss Attributable to BioAmber Inc. Shareholders is not a measurement of BioAmber's financial performance under GAAP and should not be considered as an alternative to net income, operating income or any other performance measures derived in accordance with GAAP.

SOURCE BioAmber Inc.