BioAmber Inc. Reports Second Quarter 2016 Financial Results

MONTREAL, Aug. 9, 2016 /PRNewswire/ - BioAmber Inc. (NYSE: BIOA), a leader in renewable materials, today announced operational and financial results for the three months ending June 30, 2016.

"BioAmber continues to meet ramp-up expectations at its Sarnia plant. We have made excellent progress in the plant's reliability and performance, while continuing to increase production levels and drive down unit costs," said Jean-Francois Huc, BioAmber's Chief Executive Officer. "Second quarter sales were on track, generating a 73% increase in sales over Q1, while Q2 operations improved throughout the quarter, culminating in a June uptime rate of over 80%. The team is now entrenching its operating routines as our Sarnia facility moves towards full production levels," he added.

Operational Highlights

• Sales of bio-succinic acid in the quarter were $2.5 million, an increase of 73% over the previous quarter and an increase of 637% compared to the same period last year
• The cost per ton of bio-succinic acid sold continued to decrease, with a 30% reduction relative to the previous quarter, and Sarnia variable costs were lowered to the Company's 2016 target
• Sarnia achieved an uptime rate of over 80% in the month of June 2016, having increased steadily during the second quarter
• Less than 7% of total bio-succinic acid produced in Sarnia during the second quarter was off-spec, compared to 37% of bio-succinic acid production that was off spec in the previous quarter
• Finished product inventory increased to 1,200 metric tons at the end of the second quarter
• The Company did not have a lost time injury during the quarter and has not had a lost-time injury dating back to the beginning of construction in Sarnia.

Financial Highlights

• Cash on hand was $5.5 million as of June 30^th, 2016, compared to cash on hand of $6.9 million on December 31, 2015
• After the end of the quarter the Company closed on an additional $7.6 million from the previously disclosed BDC Capital loan
• Gross loss in the second quarter was reduced by 40% compared to the previous quarter

Q2 2016 Financial Results

Revenues for the quarter ended June 30, 2016 were $2.5 million, an increase of 73% over the previous quarter. The increase in revenue was entirely attributed to volume growth, with no material change in the average selling price.

Gross loss for the quarter ended June 30, 2016 was $1.0 million, compared to $410,000 for the same period last year and $1.6 million for the previous quarter. The decrease in gross loss relative to the previous quarter was due to the greater volume of succinic acid produced and sold, improvements in operational efficiency and a reduction in the quantity of off-spec product produced.

Research and development expenses for the quarter ended June 30, 2016 decreased to $1.5 million from $5.0 million for the same period last year. The higher costs recorded last year were the result of certain commissioning and start-up costs incurred in the quarter and recorded as research and development expenses. There was also a reduction in research costs in Q2 2016 relative to Q2 2015 due to the fact that the technology is now operating in a commercial facility.

Sales and marketing expenses for the quarter ended June 30, 2016 decreased to $584,000 from $1.1 million for the same period last year. This was driven by a decrease in stock-option compensation expenses due to stock-options granted in 2016 with a lower fair value and a decrease in salaries and benefits in the first quarter of 2016.

General and administrative expenses for the quarter ended June 30, 2016 were unchanged at $3.0 million, compared to the same period last year.

Depreciation of property and equipment and amortization of intangible asset expense increased to $1.2 million for the quarter ended June 30, 2016 from $93,000 for the same period last year. This increase was due to the depreciation of Sarnia facility assets following the beginning of production.

For the quarter ended June 30, 2016, the Company incurred net financial income of $11.3 million, compared to a charge of $3.8 million for the same period last year. There was a financial charge of $662,000 resulting from interest expense on long-term loans, which was offset by a non-cash gain of $11.9 million related to changes in the fair market value of the warrants issued in connection with the Company's initial public offering (IPO Warrants) and warrants issued in 2009 and 2011 (Legacy Warrants).

The Company recorded a net income attributable to BioAmber Inc. shareholders of $4.8 million, or an income of $0.17 per share for the quarter ended June 30, 2016, compared to a net loss of $14.0 million, or a loss of $0.58 per share for the same period last year.

The Adjusted Net Loss Attributable to BioAmber Inc. Shareholders for the quarter ended June 30, 2016 was $7.1 million, or a loss of $0.25 per share, compared to an Adjusted Net Loss Attributable to BioAmber Inc. Shareholders of $9.5 million, or a loss of $0.39 per share for the same period last year. Adjusted Net Loss Attributable to BioAmber Inc. Shareholders is a non-GAAP financial metric that excludes, for the quarter ended June 30, 2016, the impact of the change in fair value of the IPO and Legacy Warrants. The Adjusted Net Loss Attributable to BioAmber Inc. Shareholders excludes, for the quarter ended June 30, 2015, the impact of the change in fair value of the IPO and Legacy warrants, the non-cash inventory reserve expense and the intangible asset impairment related to DuPont technology.

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

Webcast and Conference Call Information

BioAmber will discuss these results on a live audio webcast, which will be available on the Internet to investors, members of the news media and the general public at 4:30 p.m. Eastern Time on August 9, 2016. To access the webcast of the conference call, go to the company's website, www.bio-amber.com. Audio of the teleconference is also available by dialing:

North American callers: +1 (888) 390-0546 International callers: (416) 764-8688

Teleconference replays will be available through August 16, 2016: Domestic: 1-888-390-0541 International: 416-764-8677 Passcode: 138284# A replay of the webcast will also be available approximately two hours after the conclusion of the live webcast on BioAmber's website, for a period of 30 days.

About BioAmber

BioAmber (NYSE: 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, including statements related to the beginning of our commercial operations and the ramping-up of our sales for our Sarnia Bio-SA facility.

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