Achieves profitability on more than doubling of revenue
JUPITER, Fla., Aug. 13, 2012 /PRNewswire/ -- Dyadic International, Inc. ("Dyadic") (OTC Pink: DYAI), a global biotechnology company focused on the discovery, development, manufacture and sale of enzymes and other proteins for the bioenergy, bio-based chemicals, biopharmaceutical and industrial enzyme industries, today announced financial results for the second quarter and six months ended June 30, 2012.
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Dyadic's President and Chief Executive Officer, Mark Emalfarb, stated, "I am very pleased with the progress we have made in reporting a profit for the second quarter and first half of 2012 which ranks among the best results in the company's history. Equally gratifying is that these results were driven by significant revenue increases in all of Dyadic's business segments highlighted by the expansion of our license agreement with Abengoa Bioenergy as well as double-digit increases in our industrial enzyme and research and development businesses. Our research and development team in The Netherlands continues to enhance Dyadic's technologies and products as recently demonstrated by comparative tests of our AlternaFuel® CMAX3™ which equaled or exceeded the performance of other leading enzymes on the market in converting biomass into fermentable sugars. We are working diligently to build on these results by continuing to demonstrate Dyadic's capabilities to engineer robust fungal strains that produce high quality, cost-efficient enzymes and other proteins at commercial scale for multiple industry applications."
Second Quarter Highlights
- Total revenue for the quarter more than doubled over the same period last year fueled by growth in all operating segments:
- Greater than four-fold increase in license fee revenue
- 19% increase in the sale of industrial enzymes
- 18% increase in research and development revenue
- Gross profit for the quarter increased more than three-fold over the same period last year
- Net income for the quarter was $0.13 per basic share and $0.12 per diluted share as compared to a loss of $0.02 per basic and diluted share for the same period last year
- Recognized a fee of $5.5 million for the expansion of Dyadic's non-exclusive license agreement with Abengoa Bioenergy New Technologies, Inc. ("Abengoa") to use Dyadic's C1 platform technology to develop, manufacture and sell enzymes to convert biomass into sugars for the production of fuels, chemicals and/or power
- Demonstrated productivity results of Dyadic's AlternaFuel® CMAX3™ which equaled or exceeded the performance of other industry-leading enzymes in converting biomass into fermentable sugars for the production of biofuels and bio-based chemicals
- Joined a multidisciplinary research consortium funded by the European Community's Seventh Framework Programme (FP7) to conduct a three year research project coordinated by Procter & Gamble Technical Centres Limited which will employ environmentally-friendly technologies to convert the renewable agricultural waste stream, lignin, into high value sustainable commercial products such as adhesives, detergents and cosmetics
Financial Results
Total revenue for the second quarter ended June 30, 2012 increased to $7.8 million compared to $3.0 million for the second quarter ended June 30, 2011. Total revenue for the six months ended June 30, 2012 increased to $10.4 million compared to $5.3 million for the six months ended June 30, 2011. The increases in total revenue for the three and six month periods ended June 30, 2012 as compared to the same periods ended June 30, 2011 were due to increases in license fee revenue, product related revenue and research and development revenue.
License fee revenue for the three and six months ended June 30, 2012 increased to $5.5 million compared to $1.0 million for the same periods last year. The increases in license fee revenue for the three and six month periods ended June 30, 2012 compared to the same periods ended June 30, 2011 were due to a $5.5 million license fee recognized in the second quarter of 2012 from Abengoa for the expansion of its license rights pursuant to an amended and restated license agreement entered into between Dyadic and Abengoa in April 2012.
Net product related revenue for the second quarter ended June 30, 2012 increased 19% to $2.0 million compared to $1.6 million for the second quarter ended June 30, 2011. Net product related revenue for the six months ended June 30, 2012 increased 7% to $3.7 million from $3.5 million for the same period a year ago.
Research and development revenue for the second quarter ended June 30, 2012 increased 18% to $381,000 compared to $323,000 for the second quarter ended June 30, 2011. Research and development revenue for the six months ended June 30, 2012 increased 43% to $1.2 million compared to $814,000 for the six months ended June 30, 2011.
Gross profit for the second quarter ended June 30, 2012 increased to $6.0 million compared to $1.3 million for the second quarter ended June 30, 2011. Gross profit for the six months ended June 30, 2012 increased to $6.7 million compared to $2.1 million from the same period a year ago.
Total expenses for the second quarter ended June 30, 2012 decreased 8% to $1.8 million compared to $1.9 million for the same period last year. Total expenses for the six months ended June 30, 2012 decreased 23% to $3.1 million compared to $4.1 million for the same period a year ago. The decreases in total expenses were due to a reduction in litigation-related costs from the same period a year ago and Dyadic's continued focus on improving cost controls and operational efficiencies.
Interest expense for the three and six months ended June 30, 2012 increased 53% to $174,000 and $348,000, respectively, compared to the same periods last year. These increases were due to an additional $3.0 million of convertible debt raised in the second half of 2011.
Net income for the second quarter ended June 30, 2012 was $4.0 million, or $0.13 per basic and $0.12 per diluted share, compared to a net loss of $736,000, or a net loss of $0.02 per basic and diluted share for the second quarter ended June 30, 2011. Net income for the six months ended June 30, 2012 was $3.2 million, or $0.10 per basic and $0.09 per diluted share, compared to a net loss of $2.2 million, or a net loss of $0.07 per basic and diluted share, for the six months ended June 30, 2011.
At June 30, 2012, cash and cash equivalents were $2.3 million compared to $3.7 million at December 31, 2011. The license fee of $5.5 million from Abengoa referenced above is payable in three installments over the next twelve months. The first installment of $2.0 million is due in October 2012.
On April 12, 2012, Dyadic extended the maturity dates of its $8.4 million in outstanding debt to January 1, 2014. All other provisions of the outstanding debt remained unchanged.
The financial information contained in this press release should be read in conjunction with the financial statements and related footnotes which have been posted on the OTC market website at www.otcmarkets.com/stock/DYAI/financials and on Dyadic's website at http://dyadic.com/investorinfo/financials/.
Conference Call
Dyadic will host a conference call at 5:00 p.m. Eastern Time today to discuss its 2012 second quarter financial results.
In order to participate in the conference call, please use the following dial-in numbers and confirmation code:
- From the United States or Canada: 888-812-8522
- From other countries: 913-312-0980
- Passcode: 4245750
A replay of the conference call will be available on Dyadic's website at www.dyadic.com shortly after the live event.
About Dyadic
Dyadic International, Inc. is a global biotechnology company that uses its patented and proprietary technologies to conduct research, development and commercial activities for the discovery, development, manufacture and sale of enzymes and other proteins for the bioenergy, bio-based chemicals, biopharmaceutical and industrial enzyme industries.
Dyadic trades on the OTC Pink tier of the OTC market. Investors can find real-time quotes, market information and financial reports for Dyadic on the OTC market website (www.otcmarkets.com/stock/DYAI/quote).
Cautionary Statement for Forward-Looking Statements
Certain statements contained in this press release are forward-looking statements. These forward-looking statements involve risks and uncertainties that could cause Dyadic's actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Except as required by law, Dyadic expressly disclaims any intent or obligation to update any forward-looking statements.
|
DYADIC INTERNATIONAL, INC. AND SUBSIDIARIES |
||||||||
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||||
|
Six Months Ended June 30, |
Three Months Ended June 30, |
|||||||
|
2012 |
2011 |
2012 |
2011 |
|||||
|
Revenue: |
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
||||
|
Product Related Revenue, Net |
$ |
3,704,846 |
$ |
3,452,554 |
$ |
1,965,465 |
$ |
1,647,346 |
|
License Fee Revenue |
5,500,000 |
1,017,000 |
5,500,000 |
1,017,000 |
||||
|
Research and Development Revenue |
1,164,520 |
814,102 |
380,939 |
322,793 |
||||
|
Total Revenue |
10,369,366 |
5,283,656 |
7,846,404 |
2,987,139 |
||||
|
Cost of Goods Sold: |
3,629,039 |
3,213,153 |
1,862,912 |
1,684,827 |
||||
|
Gross Profit |
6,740,327 |
2,070,503 |
5,983,492 |
1,302,312 |
||||
|
Expenses: |
||||||||
|
General and Administrative |
2,256,914 |
3,012,337 |
1,275,542 |
1,327,746 |
||||
|
Sales and Marketing |
358,818 |
536,453 |
129,681 |
268,719 |
||||
|
Research and Development |
464,419 |
622,117 |
268,107 |
318,114 |
||||
|
Foreign Currency Exchange Loss (Gain), Net |
61,579 |
(81,344) |
103,298 |
12,690 |
||||
|
Total Expenses |
3,141,730 |
4,089,563 |
1,776,628 |
1,927,269 |
||||
|
Income (Loss) from Operations |
3,598,597 |
(2,019,060) |
4,206,864 |
(624,957) |
||||
|
Other Income (Expense) |
||||||||
|
Interest Income |
2,754 |
6,675 |
1,269 |
2,484 |
||||
|
Interest Expense |
(347,719) |
(226,737) |
(173,563) |
(113,731) |
||||
|
Total Other Income (Expense) |
(344,965) |
(220,062) |
(172,294) |
(111,247) |
||||
|
Income (Loss) Before Provision for Income Taxes |
3,253,632 |
(2,239,122) |
4,034,570 |
(736,204) |
||||
|
Provision for Income Taxes |
(65,000) |
- |
(65,000) |
- |
||||
|
Net Income (Loss) |
$ |
3,188,632 |
$ |
(2,239,122) |
$ |
3,969,570 |
$ |
(736,204) |
|
Net Income (Loss) per Common Share |
||||||||
|
Basic |
$ |
0.10 |
$ |
(0.07) |
$ |
0.13 |
$ |
(0.02) |
|
Diluted |
$ |
0.09 |
$ |
(0.07) |
$ |
0.12 |
$ |
(0.02) |
|
Weighted Average Common Shares Used in Calculating Net Income (Loss) Per Share: |
||||||||
|
Basic |
31,562,375 |
31,265,054 |
31,609,349 |
31,271,269 |
||||
|
Diluted |
33,776,053 |
31,265,054 |
33,793,937 |
31,271,269 |
||||
|
DYADIC INTERNATIONAL, INC. AND SUBSIDIARIES |
|||||||
|
CONDENSED CONSOLIDATED BALANCE SHEETS |
|||||||
|
June 30, 2012 |
December 31, 2011 |
||||||
|
ASSETS |
(unaudited) |
||||||
|
Current Assets: |
|||||||
|
Cash and Cash Equivalents |
$ |
2,262,569 |
$ |
3,691,755 |
|||
|
Restricted Cash |
210,138 |
214,376 |
|||||
|
Accounts Receivable, Net |
1,531,989 |
1,774,773 |
|||||
|
License Fee Receivable |
5,500,000 |
- |
|||||
|
Inventory, Net |
3,104,778 |
3,276,382 |
|||||
|
Prepaid Expenses and Other Current Assets |
292,400 |
280,812 |
|||||
|
Total Current Assets |
12,901,874 |
9,238,098 |
|||||
|
Fixed Assets, Net |
452,763 |
552,221 |
|||||
|
Intangible Assets, Net |
507,246 |
497,385 |
|||||
|
Other Assets |
16,173 |
16,173 |
|||||
|
$ |
13,878,056 |
$ |
10,303,877 |
||||
|
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) |
|||||||
|
Current Liabilities: |
|||||||
|
Accounts Payable |
$ |
1,486,045 |
$ |
2,065,708 |
|||
|
Accrued Expenses |
393,614 |
437,719 |
|||||
|
Accrued Interest Payable |
173,365 |
173,496 |
|||||
|
Income Taxes Payable |
65,000 |
- |
|||||
|
Note Payable to Stockholder |
- |
1,424,941 |
|||||
|
Deferred Research and Development Obligation |
308,640 |
- |
|||||
|
Total Current Liabilities |
2,426,664 |
4,101,864 |
|||||
|
Note Payable to Stockholder |
1,424,941 |
- |
|||||
|
Convertible Subordinated Debt |
7,000,000 |
7,000,000 |
|||||
|
10,851,605 |
11,101,864 |
||||||
|
COMMITMENTS AND CONTINGENCIES |
|||||||
|
Stockholders' Equity (Deficit): |
|||||||
|
Preferred Stock, $.0001 Par Value: |
|||||||
|
Authorized Shares – 5,000,000; None Issued and Outstanding |
- |
- |
|||||
|
Common Stock, $.001 par value, |
|||||||
|
Authorized Shares – 100,000,000; Issued and Outstanding – 31,648,120 and 31,448,745, Respectively |
31,648 |
31,449 |
|||||
|
Additional Paid-in Capital |
79,247,943 |
78,608,586 |
|||||
|
Stock to be Issued |
- |
3,750 |
|||||
|
Accumulated Deficit |
(76,253,140) |
(79,441,772) |
|||||
|
3,026,451 |
(797,987) |
||||||
|
$ |
13,878,056 |
$ |
10,303,877 |
||||
|
DYADIC INTERNATIONAL, INC. AND SUBSIDIARIES |
|||||
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||
|
Six Months Ended June 30, |
|||||
|
2012 |
2011 |
||||
|
(Unaudited) |
(Unaudited) |
||||
|
Operating Activities |
|||||
|
Net Income (Loss) |
$ |
3,188,632 |
$ |
(2,239,122) |
|
|
Adjustments to Reconcile Net Income (Loss) to Net Cash (Used in) Operating Activities: |
|||||
|
Depreciation and Amortization of Fixed Assets |
108,726 |
138,151 |
|||
|
Amortization of Intangible and Other Assets |
24,457 |
15,402 |
|||
|
Reserve (Recovery) of Doubtful Accounts |
117,000 |
(50,011) |
|||
|
Reserve (Recovery) of Inventory Reserve |
140,000 |
(75,389) |
|||
|
Compensation Expense on Stock Option Grants |
600,881 |
658,684 |
|||
|
Stock to be Issued for Financial Services |
(3,750) |
- |
|||
|
Changes in Operating Assets and Liabilities: |
|||||
|
Accounts Receivable |
125,784 |
(300,506) |
|||
|
License Fee Receivable |
(5,500,000) |
- |
|||
|
Inventory |
31,604 |
(258,972) |
|||
|
Prepaid Expenses and Other Current Assets |
(11,588) |
(86,844) |
|||
|
Accounts Payable |
(579,663) |
484,003 |
|||
|
Accrued Expenses |
(44,105) |
223,249 |
|||
|
Accrued Interest Payable |
(131) |
(32,700) |
|||
|
Income Taxes Payable |
65,000 |
- |
|||
|
Deferred Research and Development Obligation |
308,636 |
150,369 |
|||
|
Net Cash (Used In) Operating Activities |
(1,428,517) |
(1,373,686) |
|||
|
Investing Activities |
|||||
|
Purchases of Fixed Assets |
(9,265) |
(76,919) |
|||
|
Cost of Patents |
(34,318) |
(67,985) |
|||
|
Restricted Cash |
4,238 |
(23,370) |
|||
|
Net Cash (Used In) Investing Activities |
(39,345) |
(168,274) |
|||
|
Financing Activities |
|||||
|
Proceeds from Stock Warrant Exercises |
- |
15,000 |
|||
|
Proceeds from Stock Option Exercises |
38,676 |
34,369 |
|||
|
Net Cash Provided by Financing Activities |
38,676 |
49,369 |
|||
|
Net (Decrease) in Cash and Cash Equivalents |
(1,429,186) |
(1,492,591) |
|||
|
Cash and Cash Equivalents at Beginning of Period |
3,691,755 |
4,535,279 |
|||
|
Cash and Cash Equivalents at End of Period |
$ |
2,262,569 |
$ |
3,042,688 |
|
|
Supplemental Cash Flow Information: |
|||||
|
Cash Paid for Interest |
$ |
173,349 |
$ |
259,437 |
|
SOURCE Dyadic International, Inc.