Earns non-GAAP $0.08 and GAAP
$0.07 per Diluted Share and Generates $4.7 Million in Operating
Cash Flow
VAYA Pharma Generates Record
Net Revenues of $2.2 Million
Enzymotec Ltd. (NASDAQ:ENZY), a developer, manufacturer and
marketer of innovative bio-active lipid ingredients, today reported
financial results for the third quarter ended September 30,
2015.
Third Quarter Financial Highlights
- Third quarter net revenues (equity method) increased 30.7% to
$12.4 million, compared to the third quarter of 2014.
- Third quarter net revenues (proportionate consolidation method)
increased 24.7% to $15.0 million, compared to the third quarter of
2014.
- Third quarter adjusted EBITDA increased 55.3% to $2.7 million*,
compared to the third quarter of 2014.
- Third quarter GAAP net income increased 27.0% to $1.5 million,
or $0.07 per diluted share, compared to the third quarter of
2014.
- Third quarter non-GAAP net income increased 32.9% to $2.0
million, or $0.08 per diluted share*, compared to the third quarter
of 2014.
- Third quarter cash flows from operating activities amounted to
$4.7 million.
- The Company provides updated guidance for the full fiscal year
ending December 31, 2015.
* A reconciliation of Non-GAAP financial measures to GAAP
financial measures is set forth below.
Recent Business Highlights:
VAYA Pharma:
- Generated record VAYA Pharma sales in the third quarter.
- VAYA Pharma sales-out in the U.S., which includes IMS data and
the Company's direct sales channels, show an increase of 37% in the
third quarter of 2015, compared to the third quarter of 2014 and an
increase of 13%, compared to the second quarter of 2015.
- Expanded the VAYA Pharma U.S. sales force to 33.
- Increased traffic to VAYA Pharma's online pharmacy resulting in
higher refill rate and patient compliance.
- Dr. Arnold Mech, Head of The Mech Center Outpatient and
Research / Medical Director, Sleep Centers of Texas presented at
the AACAP 62nd Annual Meeting on a Retrospective Analysis of the
effects of Vayarin® in ADHD patients suffering from sleep
disturbances, and reported significant improvement of emotional
status and sleep quality for Vayarin® users.
- Granted U.S. patent for Vayacog® in pre-dementia.
Nutrition:
- Clinical trial results for InFat®, marketed and sold by a joint
venture with AAK, titled, "SN2 Palmitate Reduces Fatty Acid
Excretion in Chinese Formula-fed Infants: A Double-Blind Randomized
Clinical Trial" accepted for publication in the Journal of
Pediatric Gastroenterology & Nutrition. The study demonstrated
that infants fed with infant formula containing InFat® as the fat
fraction, resulted in significantly increased fatty acids
absorption.
- Granted U.S. patent for InFat® covering InFat's promoting of
intestinal development and maturation in infants.
- Presented at Supply Side West Exhibition in Las Vegas results
showing that K•Real® is the only krill oil which has been
clinically proven to improve muscle recovery after exercise.
- The U.S. Patent and Trademark Office ("USPTO") determined that
26 of 28 challenged claims in Neptune's U.S. Patent No. 8,278,351
are unpatentable. The Company has appealed the USPTO decision to
the U.S. Court of Appeals for the Federal Circuit regarding the two
remaining challenged claims. Neptune is not entitled to royalty
payments in North America unless the final outcome, following the
appeal and subject to the settlement agreement terms, is
unfavorable to Enzymotec. The final outcome of the appeal is not
expected before the second half of 2016.
- Re-examination on Neptune's patent in Australia is still
ongoing. Neptune is not entitled to royalty payments in Australia
unless the final outcome is unfavorable to Enzymotec.
- The Company expects a decision as part of the arbitration with
AAK to be rendered by no later than December 31, 2015.
"Enzymotec's nutrition business provides the anchor of support
for the Company as we expand our reach directly to the consumer in
VAYA Pharma and explore the opportunities we see in clinical
nutrition. We remain focused on our strategy to advance up the
value chain as we position the Company's industry-leading lipids
technology as the core foundation to our customers' product
offerings and derive the benefits from that leading position. We
look forward to exploiting market opportunities to leverage our
technology and value-added innovation engine. I believe Enzymotec
is well-positioned, and has the financial strength, to execute our
strategy and drive these advancements and our anticipated growth"
commented Dr. Ariel Katz, Enzymotec's President and Chief Executive
Officer.
"The Company continued to experience a recovery in all of its
divisions in the third quarter when compared to 2014. This came
about despite a temporary capacity constraint due to an organic
expansion in our plant for our krill oil and PS products, as well
as a shift in certain deliveries of InFat from this quarter to the
fourth quarter. With respect to InFat, certain significant Chinese
InFat customers have reported that they are carrying lower
inventory levels. We believe this has impacted our third quarter
results and this trend may remain in place at least over the short
term and may adversely impact our fourth quarter sales. We continue
to believe that the competitive landscape in infant formula will
force innovation by the multinational players which in turn will
fuel our growth. While the krill oil market remains challenging, we
have shown that we have been able to compete on the basis of our
higher quality product and better cost structure," stated Dr.
Katz.
"In VAYA Pharma, we are beginning to see the returns from the
investments this year. The contribution from the expanded sales
force has started to ramp in the second half of the year, as we had
expected. In addition to an increase in scripts, we have also
continued to shift business to our online pharmacy, which improves
patient compliance and refill rates as well as our margin
contribution. We anticipate continued success as we focus on the
value that VAYA Pharma products can bring directly to the
consumer," concluded Dr. Katz.
Third Quarter 2015 Results
For the third quarter of 2015, based on the proportionate
consolidation method, net revenues increased 24.7% to $15.0
million, from $12.0 million for the third quarter of 2014. Based on
the equity method of accounting, net revenues increased 30.7% to
$12.4 million, from $9.5 million for the third quarter last year.
The increase was primarily due to an increase of $1.4 million in
krill oil sales, an increase of $0.9 million in InFat sales
(proportionate consolidation method), and an increase of $0.7
million in sales of VAYA Pharma products.
Gross margin (equity method) for the third quarter of 2015
decreased 240 basis points to 60.1%, from 62.4% for the third
quarter of 2014 primarily due to change in product mix.
Selling and marketing expenses for the third quarter of 2015
increased 27.7% to $2.7 million, from $2.1 million for the third
quarter of 2014, primarily as a result of an increase of $0.7
million related to an expansion in VAYA Pharma's sales force and
infrastructure.
General and administrative expenses for the third quarter of
2015 increased to $1.8 million, from $1.5 million for the third
quarter of 2014, primarily due to an increase in headcount and
share-based compensation expenses of $0.2 million.
Adjusted EBITDA for the third quarter of 2015 increased 55.3% to
$2.7 million, from $1.8 million for the third quarter of 2014. A
reconciliation of adjusted EBITDA to GAAP net income is set forth
below.
Net income for the third quarter of 2015 increased to $1.5
million, or $0.07 per diluted share, from $1.2 million, or $0.05
per diluted share, for the third quarter last year.
Non-GAAP net income increased to $2.0 million, or $0.08 per
diluted share, from $1.5 million, or $0.06 per diluted share for
the third quarter of 2014. A reconciliation of non-GAAP net income
to GAAP net income is set forth below.
Cash flows from operating activities for the third quarter of
2015 increased by $6.2 million to $4.7 million, from negative cash
flows of $1.5 million for the third quarter of 2014.
Below is segment information for the three months ended
September 30, 2015 and 2014 (unaudited):
|
Three Months
Ended September 30, 2015 |
|
Nutrition
Segment |
VAYA Pharma
Segment |
Total Segment Results of
Operations |
Elimination(1) |
Consolidated Results of
Operations |
|
U.S. dollars in
thousands |
|
|
|
|
|
|
Net revenues |
$ 12,781 |
$ 2,226 |
$ 15,007 |
$ (2,579) |
$ 12,428 |
Cost of revenues(2) |
7,064 |
341 |
7,405 |
(2,467) |
4,938 |
Gross profit(2) |
5,717 |
1,885 |
7,602 |
(112) |
7,490 |
Operating expenses(2) |
3,094 |
2,381 |
5,475 |
|
5,475 |
Depreciation and amortization |
546 |
54 |
600 |
|
|
Adjusted EBITDA(3) |
$ 3,169 |
$ (442) |
$ 2,727 |
|
|
|
|
|
Three Months
Ended September 30, 2014 |
|
Nutrition
Segment |
VAYA Pharma
Segment |
Total Segment Results of
Operations |
Elimination(1) |
Consolidated Results of
Operations |
|
U.S. dollars in
thousands |
|
|
|
|
|
|
Net revenues |
$ 10,519 |
$ 1,519 |
$ 12,038 |
$ (2,526) |
$ 9,512 |
Cost of revenues(2) |
5,633 |
347 |
5,980 |
(2,426) |
3,554 |
Gross profit(2) |
4,886 |
1,172 |
6,058 |
(100) |
5,958 |
Operating expenses(2) |
3,267 |
1,560 |
4,827 |
— |
4,827 |
Depreciation and amortization |
486 |
39 |
525 |
|
|
Adjusted EBITDA(3) |
$ 2,105 |
$ (349) |
$ 1,756 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Represents the change from
proportionate consolidation to the equity method of
accounting. |
(2) Includes depreciation and
amortization, but excludes share-based compensation expense. |
(3) Adjusted EBITDA is a non-GAAP
financial measure. For a definition and a reconciliation of
adjusted EBITDA to our GAAP net income, see "Non-GAAP Financial
Measures" below. |
Nine Months Results
For the nine months ended September 30, 2015, based on the
proportionate consolidation method, net revenues decreased 2.9% to
$45.9 million from $47.3 million for the same period a year ago.
For the nine months ended September 30, 2015, based on the
equity method of accounting, net revenues increased 2.2% to $37.1
million from $36.3 million for the same period a year ago. The
decrease in net revenues based on the proportionate consolidation
method was primarily due to a decrease of $2.7 million in InFat
sales and $1.0 million in krill sales, partially offset by
increased sales of VAYA Pharma products of $1.9 million and
increased sales of PS products of $0.5 million.
For the nine months ended September 30, 2015, gross margin
(equity method) increased 100 basis points to 61.9% from 60.9% for
the same period a year ago, primarily due to change in product
mix.
For the nine months ended September 30, 2015, selling and
marketing expenses increased 24.0% to $7.8 million, from $6.3
million for the same period a year ago, primarily as a result of an
increase of $1.5m related to expanding VAYA Pharma's sales force
and infrastructure.
For the nine months ended September 30, 2015, net income
decreased 17.3% to $5.5 million (or $0.24 per diluted share) from
$6.7 million (or $0.29 per diluted share) for the same period a
year ago.
For the nine months ended September 30, 2015, non-GAAP net
income decreased 11.4% to $6.8 million, or $0.29 per diluted share,
from $7.6 million, or $0.33 per diluted share for the same period a
year ago. A reconciliation of non-GAAP net income to GAAP net
income is set forth below.
For the nine months ended September 30, 2015, adjusted
EBITDA decreased 11.7% to $8.3 million, from $9.4 million for the
same period in the prior year. The reconciliation of adjusted
EBITDA to GAAP net income is set forth below.
For the nine months ended September 30, 2015, cash flow
from operating activities increased by $9.1 million to $9.8
million, from $0.8 million for the same period in the prior
year.
Below is segment information for the nine months ended
September 30, 2015 and 2014 (unaudited):
|
Nine Months Ended
September 30, 2015 |
|
Nutrition
Segment |
VAYA Pharma
Segment |
Total Segment Results of
Operations |
Elimination(1) |
Consolidated Results of
Operations |
|
U.S. dollars in
thousands |
|
|
|
|
|
|
Net revenues |
$ 39,710 |
$ 6,174 |
$ 45,884 |
$ (8,762) |
$ 37,122 |
Cost of revenues(2) |
21,712 |
1,126 |
22,838 |
(8,403) |
14,435 |
Gross profit(2) |
17,998 |
5,048 |
23,046 |
(359) |
22,687 |
Operating expenses(2) |
9,538 |
6,895 |
16,433 |
(3) |
16,430 |
Depreciation and amortization |
1,538 |
142 |
1,680 |
|
|
Adjusted EBITDA(4) |
$ 9,998 |
$ (1,705) |
$ 8,293 |
|
|
|
|
|
Nine Months Ended
September 30, 2014 |
|
Nutrition
Segment |
VAYA Pharma
Segment |
Total Segment Results of
Operations |
Elimination(1) |
Consolidated Results of
Operations |
|
U.S. dollars in
thousands |
|
|
|
|
|
|
Net revenues |
$ 42,982 |
$ 4,281 |
$ 47,263 |
$ (10,943) |
$ 36,320 |
Cost of revenues(2) |
23,216 |
1,084 |
24,300 |
(10,489) |
13,811 |
Gross profit(2) |
19,766 |
3,197 |
22,963 |
(454) |
22,509 |
Operating expenses(3) |
10,138 |
5,212 |
15,350 |
— |
15,350 |
Depreciation and amortization |
1,629 |
152 |
1,781 |
|
|
Adjusted EBITDA(4) |
$ 11,257 |
$ (1,863) |
$ 9,394 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Represents the change
from proportionate consolidation to the equity method of
accounting. |
(2) Includes depreciation
and amortization, but excludes share-based compensation
expense. |
(3) Includes depreciation
and amortization, but excludes share-based compensation expense and
secondary offering related expenses. |
(4) Adjusted EBITDA is a
non-GAAP financial measure. For a definition and a
reconciliation of adjusted EBITDA to our net income, see "Non-GAAP
Financial Measures" below. |
Joint Venture Accounting
Under U.S. GAAP, the Company is required to account for the
results of operation of Advanced Lipids AB (Advanced Lipids), the
Company's 50%-owned joint venture, using the equity method of
accounting, meaning that the Company recognizes its share in the
net results of Advanced Lipids as a share of profits of an equity
investee. Accordingly, the revenues recognized from the arrangement
are the amounts the Company charges to its joint venture partner,
or the Company's direct costs of production plus its share of the
joint venture's profits. For the three-month periods ended
September 30, 2015 and 2014, sales of the Company through this
joint collaboration amounted to $3.4 million and $2.6 million,
respectively. For the nine-month periods ended September 30, 2015
and 2014, sales of the Company through this joint collaboration
amounted to $10.1 million and $10.6 million, respectively.
To provide investors with a better understanding of the
Company's performance and for purposes of segment reporting under
U.S. GAAP, which requires presentation on the same basis provided
to and utilized by management to analyse the relevant segment's
results of operations, the Company accounts for the results of
operations of Advanced Lipids using the proportionate consolidation
method. The financial information included in the tables above
under the heading "Nutrition segment" includes, inter alia, the
results of operations of Advanced Lipids, using the proportionate
consolidation method. Under the proportionate consolidation method,
the Company recognizes its proportionate share of the gross
revenues of Advanced Lipids and records its proportionate share of
the joint venture's costs of production in its statement of
operations.
Balance Sheet and Liquidity Data
As of September 30, 2015, we had $75.8 million in cash and cash
equivalents, short-term bank deposits and short-term and long-term
marketable securities, $27.8 million in other working capital items
and no debt.
Guidance for 2015
For the full fiscal year 2015, the Company provides the
following updates to guidance:
- Net revenues, based on the equity method of accounting, of
between $50 million and $52 million
- Net revenues, based on the proportionate consolidation method,
of between $62 million and $64 million
- Non-GAAP net income of between $8.3 million and $9.3
million
- Non-GAAP diluted earnings per share (EPS) of between $0.36 and
$0.40
Non-GAAP net income represents net income excluding (i)
share-based compensation expense and (ii) other unusual income or
expenses. Non-GAAP diluted EPS is diluted EPS, based on Non-GAAP
net income.
Conference Call Details
Enzymotec will host a conference call today, November 11, 2015,
at 8:30 a.m. ET to discuss the financial results for the third
quarter of 2015. Listeners in North America may dial
+1-877-359-9508 and international listeners may dial
+1-224-357-2393 along with confirmation code 68587231 to access the
live call. The call will also be broadcast live over the Internet,
hosted in the Investors section of Enzymotec's website at
http://edge.media-server.com/m/p/8pq5hbsy and will be archived
online within one hour of its completion through November 18,
2015.
Forward Looking Statements
This release may contain forward-looking statements, which
express the current beliefs and expectations of Company management.
Such statements involve a number of known and unknown risks and
uncertainties that could cause our future results, performance or
achievements to differ significantly from the results, performance
or achievements expressed or implied by such forward-looking
statements. Important factors that could cause or contribute to
such differences include the following risks: A high proportion of
the sales of the InFat product is sold to end users in China and to
a single company; Growth in the Chinese economy has moderated and
this slowdown and related volatility could adversely impact demand
in China for our products; The demand for products based on Omega-3
and in particular, premium products, such as krill oil, has
declined and may continue to decline following a significant
increase in manufacturing capacity by manufacturers of these
products, resulting in intense competition and price pressure; Our
offering of products as "medical foods" in the United States may be
challenged by regulatory authorities; We rely on our Swedish joint
venture partner to manufacture InFat and certain matters related to
the joint venture are the subject of disagreement in an arbitration
proceeding; We are subject to a degree of customer concentration
and our customers do not enter into long-term purchase commitments
with us; We depend on third parties to obtain raw materials, in
particular krill, necessary for the production of our products; We
are dependent on a single facility that houses the majority of our
operations; We may have to pay royalties with respect to sales of
our krill oil products in the United States or Australia and any
infringement of intellectual property of others could also require
us to pay royalties; Potential future acquisitions of companies or
technologies may distract our management, may disrupt our business
and may not yield the returns expected; We anticipate that the
markets in which we participate will become more competitive and we
may be unable to compete effectively; We may not be able to
successfully expand our production or processing capabilities; Our
ability to obtain krill may be affected by conservation regulation
or initiatives; Our product development cycle is lengthy and
uncertain, and our development or commercialization efforts for our
products may be unsuccessful; and other factors discussed under the
heading "Risk Factors" in the Company's Form 20-F filed with the
Securities and Exchange Commission on March 2, 2015.
Forward-looking statements in this release are made pursuant to the
safe harbor provisions contained in the Private Securities
Litigation Reform Act of 1995. These forward-looking statements are
made only as of the date hereof, and the Company undertakes no
obligation to update or revise the forward-looking statements,
whether as a result of new information, future events or
otherwise.
About Enzymotec Ltd.
Enzymotec is a leading global supplier of specialty lipid-based
products and solutions. The Company develops, manufactures and
markets innovative bio-active lipid ingredients, as well as final
products, based on sophisticated processes and
technologies.
Non-GAAP Financial Measures
Adjusted EBITDA and non-GAAP net income are metrics used by
management to measure operating performance. Adjusted EBITDA
represents net income excluding (i) financial expenses, net, (ii)
taxes on income, (ii) depreciation and amortization, (iv)
share-based compensation expense, and (v) other unusual income or
expenses, and after giving effect to the change from the equity
method of accounting for our joint venture to the proportionate
consolidation method. Non-GAAP net income represents net
income, excluding (i) share-based compensation expense, and (ii)
other unusual income or expenses.
The Company presents adjusted EBITDA as a supplemental
performance measure because it believes it facilitates operating
performance comparisons from period to period and company to
company by backing out potential differences caused by variations
in capital structures (affecting interest expenses, net), changes
in foreign exchange rates that impact financial asset and
liabilities denominated in currencies other than our functional
currency (affecting financial expenses, net), tax positions (such
as the impact on periods or companies of changes in effective tax
rates) and the age and book depreciation of fixed assets (affecting
relative depreciation expense). In addition, both adjusted
EBITDA and non-GAAP net income exclude the non-cash impact of
share-based compensation and a number of unusual items that the
Company does not believe reflect the underlying performance of our
business. Because adjusted EBITDA and Non-GAAP net income
facilitate internal comparisons of operating performance on a more
consistent basis, the Company also uses adjusted EBITDA and
non-GAAP net income in measuring our performance relative to that
of our competitors. Adjusted EBITDA and non-GAAP net income
are not measures of our financial performance under GAAP and should
not be considered as alternatives to net income, operating income
or any other performance measures derived in accordance with GAAP
or as alternatives to cash flow from operating activities as
measures of the Company's profitability or liquidity.
Adjusted EBITDA and non-GAAP net income have limitations as an
analytical tool, and you should not consider it in isolation or as
a substitute for analysis of the Company's results as reported
under U.S. GAAP as the excluded items may have significant effects
on the Company's operating results and financial condition. When
evaluating the Company's performance, you should consider adjusted
EBITDA alongside other financial performance measures, including
cash flow metrics, operating income, net income, and the Company's
other U.S. GAAP results.
The following table presents a reconciliation of adjusted EBITDA
to net income for each of the periods indicated
(unaudited):
|
|
|
|
Three Months
Ended September 30, |
Nine Months Ended
September 30, |
|
2015 |
2014 |
2015 |
2014 |
|
U.S. dollars in
thousands |
Reconciliation of adjusted EBITDA to
net
income: |
|
|
|
|
Adjusted EBITDA |
$2,727 |
$1,756 |
$8,293 |
$9,394 |
Accounting for joint venture |
(112) |
(100) |
(356) |
(454) |
Depreciation and amortization |
(600) |
(525) |
(1,680) |
(1,781) |
Secondary offering related expenses |
-- |
-- |
-- |
(393) |
Share-based compensation expenses |
(420) |
(261) |
(1,218) |
(534) |
Operating income |
1,595 |
870 |
5,039 |
6,232 |
Financial expenses (income) - net |
7 |
(458) |
(519) |
(448) |
Income before taxes on income |
1,588 |
1,328 |
5,558 |
6,680 |
Taxes on income |
(121) |
(189) |
(285) |
(332) |
Share in profits of equity investee |
78 |
78 |
275 |
360 |
GAAP net income |
$1,545 |
$1,217 |
$5,548 |
$6,708 |
|
Three Months
Ended September 30, |
Nine Months Ended
September 30, |
|
2015 |
2014 |
2015 |
2014 |
|
U.S. dollars in
thousands |
Reconciliation of Non-GAAP net income
to GAAP net income: |
|
|
|
|
Non-GAAP net income |
$1,965 |
$1,478 |
$6,766 |
$7,635 |
Secondary offering related expenses |
-- |
-- |
-- |
(393) |
Share-based compensation expenses |
(420) |
(261) |
(1,218) |
(534) |
GAAP net income |
$1,545 |
$1,217 |
$5,548 |
$6,708 |
|
|
ENZYMOTEC LTD.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND
COMPREHENSIVE INCOME (Unaudited) |
|
|
Three Months
Ended September 30, |
Nine Months Ended
September 30, |
|
2015 |
2014 |
2015 |
2014 |
|
U.S. dollars in
thousands |
(except per share
data) |
NET REVENUES |
$12,428 |
$9,512 |
$37,122 |
$36,320 |
COST OF REVENUES * |
4,963 |
3,573 |
14,519 |
13,836 |
GROSS PROFIT |
7,465 |
5,939 |
22,603 |
22,484 |
OPERATING EXPENSES: |
|
|
|
|
Research and development – net * |
1,463 |
1,451 |
4,352 |
4,504 |
Selling and marketing * |
2,654 |
2,078 |
7,765 |
6,260 |
General and administrative * |
1,753 |
1,540 |
5,447 |
5,488 |
Total operating expenses |
5,870 |
5,069 |
17,564 |
16,252 |
OPERATING INCOME |
1,595 |
870 |
5,039 |
6,232 |
FINANCIAL EXPENSES (INCOME)
– net |
7 |
(458) |
(519) |
(448) |
INCOME BEFORE TAXES ON
INCOME |
1,588 |
1,328 |
5,558 |
6,680 |
TAXES ON INCOME |
(121) |
(189) |
(285) |
(332) |
SHARE IN PROFITS OF EQUITY
INVESTEE |
78 |
78 |
275 |
360 |
NET INCOME |
$1,545 |
$1,217 |
$5,548 |
$6,708 |
OTHER COMPREHENSIVE INCOME
(LOSS): |
|
|
|
|
Currency translation adjustments |
$ (17) |
$ (89) |
$ (87) |
$ (133) |
Unrealized gain (loss) on marketable
securities |
7 |
(158) |
21 |
(158) |
Cash flow hedge |
(219) |
238 |
(12) |
337 |
Total comprehensive income |
$1,316 |
$1,208 |
$5,470 |
$6,754 |
EARNINGS PER SHARE: |
|
|
|
|
Basic |
$0.07 |
$0.06 |
$0.25 |
$0.31 |
Diluted |
$0.07 |
$0.05 |
$0.24 |
$0.29 |
WEIGHTED AVERAGE NUMBER OF ORDINARY
SHARES: |
|
|
|
|
Basic |
22,542,144 |
21,977,064 |
22,462,054 |
21,956,427 |
Diluted |
23,289,075 |
23,132,357 |
23,247,187 |
23,419,346 |
|
|
|
|
|
|
|
|
|
|
*The above items are inclusive of the
following share-based compensation expense: |
|
|
|
|
Cost of revenues |
$25 |
$19 |
$84 |
$25 |
Research and development - net |
68 |
38 |
192 |
46 |
Selling and marketing |
90 |
55 |
274 |
67 |
General and administrative |
237 |
149 |
668 |
396 |
|
$420 |
$261 |
$1,218 |
$534 |
|
|
ENZYMOTEC LTD.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited) |
|
|
|
|
September
30, |
December 31, |
|
2015 |
2014 |
|
U.S. dollars in
thousands |
Assets |
|
|
CURRENT ASSETS: |
|
|
Cash and cash equivalents |
$ 26,197 |
$ 10,315 |
Short-term bank deposits and marketable
securities |
18,176 |
21,913 |
Accounts receivable: |
|
|
Trade |
11,940 |
13,433 |
Other |
4,180 |
3,110 |
Inventories |
21,535 |
21,572 |
Total current assets |
82,028 |
70,343 |
NON-CURRENT ASSETS: |
|
|
Investment in equity investee |
1,340 |
1,152 |
Marketable securities |
31,414 |
35,287 |
Intangibles, long-term deposits and
other |
1,142 |
1,200 |
Funds in respect of retirement benefits
obligation |
1,049 |
994 |
Total non-current assets |
34,945 |
38,633 |
PROPERTY, PLANT AND
EQUIPMENT: |
|
|
Cost |
40,117 |
38,237 |
Less - accumulated depreciation and
amortization |
10,524 |
8,963 |
|
29,593 |
29,274 |
Total assets |
$146,566 |
$ 138,250 |
|
|
|
Liabilities and shareholders'
equity |
|
|
CURRENT LIABILITIES: |
|
|
Accounts payable and accruals: |
|
|
Trade |
$4,833 |
$ 5,259 |
Other |
5,005 |
3,569 |
Total current liabilities |
9,838 |
8,828 |
LONG-TERM LIABILITY -- |
|
|
Retirement benefits obligation |
1,233 |
1,150 |
Total liabilities |
11,071 |
9,978 |
SHAREHOLDERS' EQUITY: |
|
|
Ordinary shares |
58 |
57 |
Additional paid-in capital |
123,827 |
122,075 |
Accumulated other comprehensive loss |
(142) |
(64) |
Retained earnings |
11,752 |
6,204 |
Total shareholders' equity |
135,495 |
128,272 |
Total liabilities and shareholders'
equity |
$146,566 |
$ 138,250 |
|
|
ENZYMOTEC LTD.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited) |
|
|
|
|
Nine Months Ended
September 30, |
|
2015 |
2014 |
|
U.S. dollars in
thousands |
|
|
|
CASH FLOWS FROM OPERATING
ACTIVITIES: |
|
|
Net income |
$5,548 |
$ 6,708 |
Adjustments required to reflect cash
flows from operations: |
|
|
Depreciation and amortization |
1,680 |
1,781 |
Change in inventories |
37 |
(9,939) |
Change in accounts receivable and
other |
432 |
5,663 |
Change in accounts payable and
accruals |
1,286 |
(3,351) |
Share in profits of equity investee |
(275) |
(360) |
Share-based compensation expense |
1,218 |
534 |
Change in other non-current assets |
(256) |
(75) |
Change in retirement benefits
obligation |
139 |
(210) |
Loss on sale of property, plant and
equipment |
16 |
|
Net cash provided by operating
activities |
9,825 |
751 |
CASH FLOWS FROM INVESTING
ACTIVITIES: |
|
|
Purchase of property, plant and equipment
and intangible asset |
(2,218) |
(5,352) |
Long-term deposits |
(25) |
(34) |
Change in bank deposits, net |
7,523 |
(20,009) |
Investment in marketable securities |
(5,147) |
(37,285) |
Investment in equity investee |
|
(92) |
Proceeds from sale of marketable
securities |
5,489 |
|
Proceeds from sale of property, plant and
equipment |
11 |
|
Change in funds in respect of retirement
benefits obligation |
(111) |
123 |
Net cash provided by (used in) investing
activities |
5,522 |
(62,649) |
CASH FLOWS FROM FINANCING
ACTIVITIES: |
|
|
Repayment of long-term bank loan |
|
(4,200) |
Exercise of stock option by
employees |
535 |
1,076 |
Issuance costs |
|
(78) |
Net cash provided by (used in) financing
activities |
535 |
(3,202) |
NET CHANGE IN CASH AND CASH
EQUIVALENTS |
15,882 |
(65,100) |
BALANCE OF CASH AND CASH
EQUIVALENTS |
|
|
AT BEGINNING OF
PERIOD |
10,315 |
74,430 |
BALANCE OF CASH AND CASH
EQUIVALENTS |
|
|
AT END OF PERIOD |
$26,197 |
$9,330 |
CONTACT: Company Contact
Enzymotec Ltd.
Oren Bryan
Chief Financial Officer
Phone: +972747177177
ir@enzymotec.com
Investor Relations Contact (U.S.)
The Ruth Group
Tram Bui / Lee Roth
Phone: 646-536-7035 / 7012
tbui@theruthgroup.com
lroth@theruthgroup.com
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