Codexis, Inc. (CDXS) Q2 2012 Results Earnings Call August 09, 2012 4:30 PM ET Executives John Nicols – President and CEO Mark Ho – Interim Controller and Senior Director, Accounting Doug Sheehy – General Counsel Analysts Edward Westlake – Credit Suisse Ben Kallo – Robert W. Baird Weston Twigg – Pacific Crest Securities Pavel Molchanov – Raymond James Michael Klein – Sidoti & Company Mike Ritzenthaler – Piper Jaffray Presentation Operator
These forward-looking statements are based on assumptions and are subject to risks and uncertainties that could cause actual results to differ significantly from those projected. Given these risks and uncertainties, you should not place undue reliance on these forward-looking statements. Please refer to our Form 10-Q filed with the Securities and Exchange Commission today, August 9, 2012, for some of the important risk factors that could cause actual results to differ materially from the forward-looking statements made on this call. Except as is required by law, we disclaim any obligation to publicly update or revise any forward-looking statements to reflect events or circumstances that occur after this call.During today's call, we will discuss certain non-GAAP financial measures for comparison purposes only. The non-GAAP amount of adjusted EBITDA is calculated by adding depreciation, amortization, net interest expense, income taxes, warrant-related costs and stock compensation to our net loss. This non-GAAP measure is an addition to, not a substitute for or superior to measures of financial performance prepared in accordance with GAAP. Please refer to our press release today for a reconciliation of non-GAAP financial measures to GAAP. Now, I would like to introduce John Nicols. John Nicols Thank you for joining our second quarter 2012 results conference call and good afternoon. To begin, let me start by saying how excited I am to be here with you for my first quarterly earnings call as leader of this great company Codexis. As you all know, I recently joined after a 22-year career with Albemarle Corporation, one of the world's most successful specialty chemical companies with roughly $3 billion in annual revenue. At Albemarle, I held several leadership roles; each one driving significant sustained value creation and importantly those successes were delivered with business models as well as in markets that are highly applicable to building shareholder value here at Codexis.
In my most recent role as the head of Albemarle's Catalysts division, a $1 billion plus business with the large majority of its sales serving existing and emerging global energy markets, the hallmarks of growth were successful market penetration of multiple new innovative catalysts, the establishment of new global manufacturing beachheads and partnerships and the near doubling of profit margins through value-based pricing and operational cost efficiencies.In my prior role as head of Albemarle's Fine Chemicals division, I led a strategic redirection of that portfolio that turned around prior profit declines. Key to that turnaround success was intensifying focus and building up capabilities to serve the highly competitive needs of pharmaceutical and other fine chemical industries clients. I think you can see that these are all highly relevant experiences to apply her at Codexis. When Codexis' Board of Directors approached me for the CEO position earlier this year, I was once again drawn to the opportunity to create value at a dramatic scale. My ensuing due diligence uncovered a number of near term challenges confronting the company, but it also uncovered a best-in-class platform in directed evolution and established competitively advantaged pharmaceutical products and services business, real step-out commercial potentials to serve emerging fuels and chemicals markets and a healthy debt free balance sheet. I saw an opportunity to lead an R&D focused company into a new phase of commercial execution and impart an efficient profit-driven culture throughout the organization. Codexis presents me with the opportunity to deliver substantial long-term value creation and that prospect ignites my primary passions and motivations. Since starting here in mid June, I've been delighted by the embrace of the company's employees and key partner base in my efforts to gain people insights into the company's situation and prospects. Read the rest of this transcript for free on seekingalpha.com