-- Issues Separate Release Announcing
Accepted Part 2 Application for DoE Loan Guarantee --
-- Expands Portfolio with Resins for
Protective Films, Shrink Wrap & Produce Bags --
Danimer Scientific, Inc. (NYSE: DNMR) (“Danimer” or the
“Company”), a leading next-generation bioplastics company focused
on the development and production of highly engineered
biodegradable materials, today announced financial results for its
second quarter, ended June 30, 2023.
Danimer announced, in a separate release also issued after the
close of market today, the acceptance of its Part II Application by
the U.S. Department of Energy (DOE) under the Title XVII Loan
Guarantee. The Company has been invited into the confirmatory due
diligence and term sheet negotiation process that, upon successful
completion could lead to funding from the U.S. Department of the
Treasury’s Federal Financing for construction of its greenfield
manufacturing facility in Bainbridge, Georgia.
Stephen E. Croskrey, Chairman and Chief Executive Officer of
Danimer, commented, “During the second quarter, we made progress in
a number of areas. We are very pleased to have moved into the next
phase of the financing process with the Department of Energy. We
also are excited to have launched new programs that grow and
diversify our portfolio of customers and end-use applications. We
expect to close this year with momentum in our business and a
renewed ability to keep pace with a range of future opportunities
for growth. We believe we will enter next year having demonstrated
that we are the clear leader in the fast-growing market for
responsible alternatives to petroleum-based materials.”
Mr. Croskrey continued, “We are very pleased, after more than
three years of careful development work on three new end-use
applications, to now have commercialized protective films, shrink
wrap and produce bags. We are also excited to play a key role in
the rapid commercial launch of compostable coffee-pods. This is a
very large category currently dependent on petroleum-based
materials which pending EU legislation, if passed, would prohibit
from use.”
Mr. Croskrey concluded, “We continue to push forward on other
meaningful commercial initiatives. As we await final selections for
straw and cutlery programs for customers in the quick service
restaurant space, we are making excellent progress in the
development of aqueous and extruded coatings for paper cups and for
thermoformed cup lids. We believe that our unique ability to offer
customers this combination of four key end-use applications will
make for a powerful, comprehensive and extremely valuable solution
that addresses single-use plastic waste for customers across the
food service industry.”
Second Quarter 2023 Financial Highlights:
- Revenues grew to $12.9 million in the second quarter of 2023
both compared to $12.7 million in the year-ago quarter of 2022 and
compared to first quarter 2023 revenues of $11.9 million. Growth
was entirely attributable to product revenue, which was $12.2
million in the second quarter as compared to $11.6 million in the
same period of last year, driven by stronger sales of PHA-based
resins, which increased 10% compared to prior year and 69%
sequentially, partially offset by a modest decline in PLA-based
resin sales. Service revenue were $0.7 million in the second
quarter as compared to $1.1 million in the second quarter of last
year, an expected decline that reflects the successful completion
of development work for certain customers, that has now progressed
to commercialization.
- Gross profit was $(6.6) million compared to $(2.2) million in
the second quarter of 2022. Adjusted gross profit was $(1.6)
million compared to $(0.5) million in the second quarter of 2022.
The reduction in adjusted gross profit primarily reflects increased
fixed production costs associated with greater capacity.
- Net loss for the second quarter was $(39.2) million compared
with $(30.4) million in the prior year period.
Adjusted EBITDA in the second quarter of 2023 improved to
$(10.2) million as compared to $(12.9) million in the second
quarter of 2022. As in recent previous quarters, this improvement
was attributable to a comprehensive program of expense control
measures implemented across many areas of the business.
Capital Structure
At June 30, 2023, the Company reported a total debt balance of
$377.8 million, which included the Company’s convertible senior
notes, its recent senior secured term loan and $45.7 million of
low-interest New Markets Tax Credit loans that the Company expects
will be forgiven beginning in 2026. The Company noted that,
including $14.5 million of restricted cash, effective liquidity at
the end of the second quarter was $105.2 million. The Company
remains comfortable with its liquidity position and it has the
strategic and operational flexibility required to execute its
growth strategy.
Outlook
The Company noted that its second quarter and first half results
have been consistent with its expectations, and it remains
confident in its competitive position and its expectations for
growth. At the same time, given a possible shift in the timing of
certain significant new program awards and associated first
shipment delays, the Company now believes that a bias toward the
low end of its previously communicated range for 2023 full-year
Adjusted EBITDA of $(23) million to $(31) million is prudent. The
Company continues to anticipate full-year capital expenditures in
the range of $26 million to $31 million.
Webcast & Conference Call
A webcast and conference call will be held today, August 8,
2023, at 4:30 p.m. Eastern Time to review the Company’s second
quarter results, discuss recent events and conduct a question and
answer session. The live webcast of the conference call can be
accessed on the Investor Relations section of the Company’s website
at https://ir.danimerscientific.com.
For those unable to access the webcast, the conference call will
be accessible domestically or internationally, by dialing
1-888-999-3182 or 1-848-280-6330, respectively. Upon
dialing in, please request to join the Danimer Scientific Second
Quarter 2023 Earnings Conference Call. The archived webcast will be
available for replay on the Company's website after the call.
About Danimer Scientific
Danimer is a pioneer in creating more sustainable, more natural
ways to make plastic products. For more than a decade, its
renewable and sustainable biopolymers have helped create plastic
products that are biodegradable and compostable and return to
nature instead of polluting our lands and waters. Danimer’s
technology can be found in a vast array of plastic end products
that people use every day. Applications for its biopolymers include
additives, aqueous coatings, fibers, filaments, films and
injection-molded articles, among others. Danimer holds more than
480 granted patents and pending patent applications in more than 20
countries for a range of manufacturing processes and biopolymer
formulations. For more information, visit
https://danimerscientific.com.
Forward-Looking Statements
Please note that in this press release we may use words such as
“appears,” “anticipates,” “believes,” “plans,” “expects,”
“intends,” “future,” and similar expressions which constitute
forward-looking statements within the meaning of the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements include, without limitation, statements
regarding our expectations for full year 2023 capital expenditures,
Adjusted EBITDA and cash balances. Forward-looking statements are
made based on our expectations and beliefs concerning future events
impacting the Company and therefore involve a number of risks and
uncertainties. We caution that forward-looking statements are not
guarantees and that actual results could differ materially from
those expressed or implied in the forward-looking statements.
Potential risks and uncertainties that could cause the actual
results of operations or financial condition of the Company to
differ materially from those expressed or implied by
forward-looking statements in this release include, but are not
limited to, the overall level of consumer demand on our products;
general economic conditions and other factors affecting consumer
confidence, preferences, and behavior; disruption and volatility in
the global currency, capital, and credit markets; the financial
strength of the Company's customers; the Company's ability to
implement its business strategy, including, but not limited to, its
ability to expand its production facilities and plants to meet
customer demand for its products and the timing thereof; risks
relating to the uncertainty of the projected financial information
with respect to the Company; the ability of the Company to execute
and integrate acquisitions; changes in governmental regulation,
legislation or public opinion relating to our products; the
Company’s exposure to product liability or product warranty claims
and other loss contingencies; disruptions and other impacts to the
Company’s business, as a result of the COVID-19 global pandemic and
government actions and restrictive measures implemented in
response; stability of the Company’s manufacturing facilities and
suppliers, as well as consumer demand for our products, in light of
disease epidemics and health-related concerns such as the COVID-19
global pandemic; the impact on our business, operations and
financial results from the ongoing conflict in Ukraine; the impact
that global climate change trends may have on the Company and its
suppliers and customers; the Company's ability to protect patents,
trademarks and other intellectual property rights; any breaches of,
or interruptions in, our information systems; the ability of our
information technology systems or information security systems to
operate effectively, including as a result of security breaches,
viruses, hackers, malware, natural disasters, vendor business
interruptions or other causes; our ability to properly maintain,
protect, repair or upgrade our information technology systems or
information security systems, or problems with our transitioning to
upgraded or replacement systems; the impact of adverse publicity
about the Company and/or its brands, including without limitation,
through social media or in connection with brand damaging events
and/or public perception; fluctuations in the price, availability
and quality of raw materials and contracted products as well as
foreign currency fluctuations; our ability to utilize potential net
operating loss carryforwards; and changes in tax laws and
liabilities, tariffs, legal, regulatory, political and economic
risks. More information on potential factors that could affect the
Company's financial results is included from time to time in the
Company's public reports filed with the Securities and Exchange
Commission, including the Company's Annual Report on Form 10-K,
Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K.
All forward-looking statements included in this press release are
based upon information available to the Company as of the date of
this press release, and speak only as of the date hereof. We assume
no obligation to update any forward-looking statements to reflect
events or circumstances after the date of this press release.
Danimer Scientific, Inc.
Condensed Consolidated Balance Sheets
June 30,
December 31,
(in thousands, except share and per share
data)
2023
2022
Assets:
Current assets:
Cash and cash equivalents
$
90,771
$
62,792
Accounts receivable, net
12,998
17,989
Other receivables, net
1,481
1,635
Inventories, net
29,866
32,743
Prepaid expenses and other current
assets
5,441
5,225
Contract assets, net
4,818
4,687
Total current assets
145,375
125,071
Property, plant and equipment, net
454,136
453,949
Intangible assets, net
79,332
80,941
Right-of-use assets
19,153
19,028
Leverage loans receivable
31,446
31,446
Restricted cash
14,467
1,609
Other assets
344
226
Total assets
$
744,253
$
712,270
Liabilities and Stockholders' Equity:
Current liabilities:
Accounts payable
$
3,558
$
14,977
Accrued liabilities
4,985
5,001
Deferred revenue
875
-
Current portion of lease liability
3,337
3,337
Current portion of long-term debt, net
1,847
1,972
Total current liabilities
14,602
25,287
Private warrants liability
245
212
Long-term lease liability, net
22,001
22,114
Long-term debt, net
375,994
286,398
Deferred income taxes
44
200
Other long-term liabilities
1,083
447
Total liabilities
$
413,969
$
334,658
Stockholders' equity:
Common stock, $0.0001 par value;
200,000,000 shares authorized: 101,938,376 and 101,804,454 shares
issued and outstanding at June 30, 2023 and December 31, 2022,
respectively
$
10
$
10
Additional paid-in capital
704,802
676,250
Accumulated deficit
(374,528
)
(298,648
)
Total stockholders’ equity
330,284
377,612
Total liabilities and stockholders’
equity
$
744,253
$
712,270
Danimer Scientific, Inc.
Condensed Consolidated Statements of Operations
Three Months Ended June
30,
Six Months Ended June
30,
(in thousands, except share and per share
data)
2023
2022
2023
2022
Revenue:
Products
$
12,174
$
11,575
$
23,270
$
24,791
Services
691
1,128
1,521
2,655
Total revenue
12,865
12,703
24,791
27,446
Costs and expenses:
Cost of revenue
19,433
14,934
37,642
30,999
Selling, general and administrative
16,844
20,975
35,543
43,211
Research and development
7,709
8,913
14,784
16,044
Loss on sale of assets
-
1
170
1
Total costs and expenses
43,986
44,823
88,139
90,255
Loss from operations
(31,121
)
(32,120
)
(63,348
)
(62,809
)
Nonoperating income (expense):
Gain (loss) on remeasurement of private
warrants
1,083
2,012
(33
)
7,007
Interest, net
(9,162
)
(652
)
(12,548
)
(1,644
)
Loss on loan extinguishment
(102
)
-
(102
)
-
Other, net
-
75
-
84
Total nonoperating income (expense):
(8,181
)
1,435
(12,683
)
5,447
Loss before income taxes
(39,302
)
(30,685
)
(76,031
)
(57,362
)
Income taxes
61
240
151
531
Net loss
$
(39,241
)
$
(30,445
)
$
(75,880
)
$
(56,831
)
Basic and diluted net loss per share
$
(0.38
)
$
(0.30
)
$
(0.74
)
$
(0.56
)
Weighted average number of shares used to
compute:
Basic and diluted net loss per share
101,938,376
101,047,650
101,917,585
100,888,185
Danimer Scientific, Inc.
Condensed Consolidated Statements of Cash Flows
Six Months Ended
June 30,
(in thousands)
2023
2022
Cash flows from operating activities:
Net loss
$
(75,880
)
$
(56,831
)
Adjustments to reconcile net loss to net
cash used in operating activities:
Stock-based compensation
27,974
27,983
Depreciation and amortization
14,752
8,588
Amortization of debt issuance costs
3,485
1,152
Accounts receivable reserves
(948
)
826
Inventory reserves
464
597
Amortization of right-of-use assets and
lease liability
(237
)
(173
)
Loss on disposal of assets
170
1
Deferred income taxes
(155
)
(531
)
(Gain) loss on remeasurement of private
warrants
33
(7,007
)
Contract asset reserve
-
1,216
Other
1,046
45
Changes in operating assets and
liabilities
Accounts receivable
5,939
(2,166
)
Other receivables
38
2,692
Inventories, net
2,383
(10,838
)
Prepaid expenses and other current
assets
1,130
1,434
Contract assets
(959
)
(1,540
)
Other assets
(120
)
(5
)
Accounts payable
(2,377
)
(2,693
)
Accrued liabilities
600
(2,220
)
Other long-term liabilities
636
-
Unearned revenue and contract
liabilities
875
2,077
Net cash used in operating activities
(21,151
)
(37,393
)
Cash flows from investing activities:
Purchases of property, plant and equipment
and intangible assets
(23,041
)
(108,850
)
Acquisition of Novomer, net of cash
acquired
-
(14
)
Proceeds from sales of property, plant and
equipment
-
55
Net cash used in investing activities
(23,041
)
(108,809
)
Cash flows from financing activities:
Proceeds from long-term debt
130,000
-
Cash paid for debt issuance costs
(33,295
)
(279
)
Principal payments on long-term debt
(11,744
)
(88
)
Proceeds from employee stock purchase
plan
129
296
Proceeds from exercise of stock
options
-
197
Employee taxes related to stock-based
compensation
(61
)
-
Cost related to warrants
-
(55
)
Net cash provided by financing
activities
85,029
71
Net increase (decrease) in cash and cash
equivalents and restricted cash
40,837
(146,131
)
Cash and cash equivalents and restricted
cash-beginning of period
64,401
286,968
Cash and cash equivalents and restricted
cash-end of period
$
105,238
$
140,837
Non-GAAP Financial Measures
This press release includes the non-GAAP financial measures
“Adjusted EBITDA”, “Adjusted gross profit” and "Adjusted gross
margin". Danimer management views these metrics as a useful way to
look at the performance of its operations between periods and to
exclude decisions on capital investment and financing that might
otherwise impact the review of profitability of the business based
on present market conditions.
Adjusted EBITDA is defined as net income or loss plus net
interest expense, income taxes, depreciation and amortization, as
adjusted to add back certain charges or gains that Danimer may
record each period such as remeasurement of private warrants,
stock-based compensation expense, as well as non-recurring charges
such as (i) asset disposal gains or losses as well as other
significant gains or losses such as debt extinguishments and
impairment of goodwill; (ii) legal settlements; or (iii) other
discrete non-recurring items. Danimer believes these items are not
considered an indicator of ongoing performance. Adjusted EBITDA is
not a measure of performance defined in accordance with GAAP. The
measure is used as a supplement to GAAP results in evaluating
certain aspects of Danimer’s business, as described below.
Adjusted gross profit is defined as gross profit plus
depreciation, stock-based compensation and nonrecurring items.
Adjusted gross margin is defined as adjusted gross profit
divided by total revenue.
Danimer believes that each of Adjusted EBITDA, Adjusted gross
profit and Adjusted gross margin is useful to investors in
evaluating the Company’s performance because each measure considers
the performance of the Company’s operations, excluding decisions
made with respect to capital investment, financing and other
non-recurring charges as outlined in the preceding paragraph.
Danimer believes these non-GAAP metrics offer additional financial
information that, when coupled with the GAAP results and the
reconciliation to GAAP results, provides a more complete
understanding of its results of operations and the factors and
trends affecting its business.
Adjusted EBITDA, Adjusted gross profit and Adjusted gross margin
should not be considered as an alternative to net income or loss as
an indicator of its performance or as alternatives to any other
measure prescribed by GAAP as there are limitations to using such
non-GAAP measures. Although Danimer believes that Adjusted EBITDA,
Adjusted gross profit and Adjusted gross margin may enhance an
evaluation of its operating performance based on recent revenue
generation and product/overhead cost control because it excludes
the impact of prior decisions made about capital investment,
financing and other expenses, (i) other companies in Danimer’s
industry may define Adjusted EBITDA, Adjusted gross profit and
Adjusted gross margin differently than Danimer does and, as a
result, they may not be comparable to similarly titled measures
used by other companies in its industry, and (ii) Adjusted EBITDA,
Adjusted gross profit and Adjusted gross margin exclude certain
financial information that some may consider important in
evaluating Danimer’s performance.
Danimer compensates for these limitations by providing
disclosure of the differences between Adjusted EBITDA, Adjusted
gross profit and Adjusted gross margin and GAAP results, including
providing a reconciliation to GAAP results, to enable investors to
perform their own analysis of Danimer’s operating results. Because
GAAP financial measures on a forward-looking basis are not
accessible, and reconciling information is not available without
unreasonable effort, reconciliations to GAAP financial measures are
not provided for forward-looking non-GAAP measures. For the same
reasons, the Company is unable to address the probable significance
of the unavailable information, which could be material to future
results.
Danimer Scientific, Inc.
Reconciliation of Adjusted EBITDA to Net Income (Unaudited)
Three Months Ended June
30,
2023
2022
(in thousands)
Net income (loss)
$
(39,241
)
$
(30,445
)
Stock-based compensation
13,666
14,546
Interest, net
9,162
652
Depreciation and amortization
7,173
4,328
(Gain) loss on remeasurement of private
warrants
(1,083
)
(2,012
)
Loss on extinguishment of debt
102
-
Income taxes
(61
)
(240
)
Litigation and other legal related
37
801
Strategic reorganization and related
28
-
Inventory reserve
-
(520
)
Loss on sale of assets
-
1
Public company transition
-
96
Other, net
-
(75
)
Adjusted EBITDA
$
(10,217
)
$
(12,868
)
Reconciliation of Adjusted
Gross Profit to Gross Profit (Unaudited)
Three Months Ended June
30,
2023
2022
(in thousands)
Total revenue
$
12,865
$
12,703
Cost of revenue
19,433
14,934
Gross profit (loss)
(6,568
)
(2,231
)
Depreciation
4,934
2,289
Stock-based compensation
2
10
Inventory reserve
-
(520
)
Adjusted gross profit (loss)
$
(1,632
)
$
(452
)
Adjusted gross margin
-12.7
%
-3.6
%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230808209544/en/
Investors James Palczynski Phone: 415-876-8429
ir@danimer.com
Media Anthony Priwer apriwer@daltonagency.com Phone:
615-515-4891
Danimer Scientific (NYSE:DNMR)
過去 株価チャート
から 5 2024 まで 6 2024
Danimer Scientific (NYSE:DNMR)
過去 株価チャート
から 6 2023 まで 6 2024