Solazyme reports fourth quarter and full year 2013 results

By Solazyme Inc. | February 27, 2014

Solazyme Inc., a renewable oil and bioproducts company, has announced results for the fourth quarter and full year ended Dec. 31, 2013.

"2013 was a year of great progress for Solazyme as we readied our first major capacity projects, signed new commercial supply agreements, added important joint development partners, and further expanded our portfolio of Tailored oils," said Jonathan Wolfson, CEO of Solazyme. "In the first half of 2014, we are focused on successfully executing Solazyme's entry into broad commercial operations. We have begun shipping multiple products from the Clinton/Galva, Iowa facilities and are deep into commissioning in Brazil as we complete the first-of-its-kind 100,000 MT Solazyme Bunge Renewable Oils (SB Oils) facility at Moema. In these early days we are focused on generating consistent and reliable production for our partners, ahead of accelerating our production ramp later this year."

Total revenue for the fourth quarter ended Dec. 31 was $11.3 million compared with $8.4 million in the fourth quarter of 2012. Fourth quarter GAAP net loss was $33.3 million, which compares with net loss of $24.6 million in the prior year period. On a non-GAAP basis, the net loss was $27.4 million for the fourth quarter of 2013, compared with net loss of $21.5 million in the prior year quarter. A reconciliation of GAAP to non-GAAP results is included below.

Total revenue for the year ended December 31, 2013 was $39.8 million compared with $44.1 million in the prior year. Full year revenue, excluding government funded program revenue, was $39.5 million compared with $29.7 million in the prior year. Full year 2013 GAAP net loss was $116.4 million, compared with $83.1 million in the prior year. On a non-GAAP basis, the net loss was $88.6 million for 2013, compared with $70.0 million in 2012.

"Solazyme's 2013 results included 21 percent growth in our most commercially mature business, as our Algenist skin care line expanded its product offerings and geographic footprint. We also delivered on all of our joint development milestones for our partners," said Tyler Painter, chief financial offier of Solazyme. "We anticipate continued growth in these revenue streams in 2014 and look forward to growing product revenues from commercial supply of our products later this year as we ramp commercial production. In the meantime, Solazyme remains in a healthy financial position as we complete our first plants and prepare to broadly scale operations."

2013 Highlights

Laid Foundation for Commercial Manufacturing in 2014: In 2013, Solazyme completed construction of the 20,000 MT Archer-Daniels-Midland Company facility in Clinton, Iowa and the downstream companion facility operated by American Natural Products in Galva, Iowa and neared completion of the 100,000 MT SB Oils facility in Brazil, setting the stage for the commercial operations that commenced at theClinton/Galva facilities in early 2014, as well as the commissioning that is currently underway at the SB Oils facility in Brazil.

Production of Food Ingredients: Rapidly mobilized in the second half of 2013 to successfully manufacture both Whole Algal Flour ingredients at the Peoria facility.

Research Partnerships Continue to Flourish: In 2013, Solazyme announced a partnership with Mitsui & Co. Ltd. to develop a new suite of Tailored™ oils and is ahead of schedule with both of the first two oils under this agreement. Solazyme also signed a joint development agreement with AkzoNobel and extended its key JDA agreements with Bunge Limited and Unilever.

Commercial Supply Agreements Signed: Solazyme announced a 10,000 MT supply agreement with its long-term partner Unilever in the third quarter of 2013 and signed agreements with other customers, including fabric lubricant leader Goulston Technologies Inc. and metalworking lubricant distributor Koda Distribution Group, positioning its Tailored™ oils across multiple markets.

Development of New Tailored Oils: Solazyme continued to expand its technology platform through the development of multiple high value oils including its myristic, oleic, erucic, capric and caprylic Tailored oils.

Solid Algenist Sales Growth: Solazyme continued to grow its Algenist skincare brand, which now boasts 21 SKUs and was recently launched in China. Algenist revenues totaled $19.9 million in 2013, a 21 percent increase versus 2012. The Algenist brand also won the 2014 Marie Claire Prix d'Excellence de la Beauté in France. Algenist was unanimously selected by the judging panel.