-- PHA-Based Product Revenue Grows 58% vs.
Prior Year --
-- Bid Awards Issued to Danimer Converter
Partners for Nodax-Based Cutlery Require Approximately 20 million
pounds of resin annually --
-- Reduced Guidance Reflects Changes in
Customer Launches and Timing of First Shipments --
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
third quarter, ended September 30, 2023.
Stephen E. Croskrey, Chairman and Chief Executive Officer of
Danimer, commented, “We are excited to announce that new business
awards associated with a large Quick Service Restaurant program for
Nodax-based biodegradable cutlery have been issued to several of
our converter partners. Total demand for our product is expected to
be approximately 20 million pounds per year at full run-rate, with
first shipments expected to begin in the second half of next year.
With these cutlery awards, we've now opened another significant
product category for our PHA-based resins, which further validates
our product in the marketplace and will continue to drive volume
across our manufacturing assets.”
Mr. Croskrey continued, “While our sales expectations for the
second half of 2023 were adversely impacted by timing delays among
several anticipated commercial programs, we believe our work with
our commercial partners on these programs is nearly complete and
look forward to products launching throughout 2024. We’re pleased
to be working with several major brands and share in their
commitment to ensuring that each launch transitioning products and
packaging from traditional petroleum-based plastics to a more
sustainable material is both seamless and an unqualified success.
While the time and resources to complete these final steps are
proving to be more extensive than we had previously anticipated,
particularly with respect to certain novel end-use applications, we
are more confident than ever that these launches will enable
enduring success. Our materials enable brands to differentiate
competitively, extend their environmental leadership roles, and
enhance their reputations for sustainability.”
Mr. Croskrey concluded, “Each product launch is generating
strong interest from and opportunity to engage with new commercial
partners seeking long-term solutions to plastic waste across
multiple product categories and industries. While we are
disappointed our near-term financial expectations were not met, we
view this as a temporary delay and retain our conviction that we
are on the right path toward filling our existing capacity and
continuing to make progress on our planned footprint expansion
strategy.”
Third Quarter 2023 Financial Highlights:
- Revenues in the third quarter grew to $10.9 million compared to
$10.4 million in the year-ago quarter. Strong growth in sales of
PHA-based products, which represented 78% of total revenue this
quarter compared to 51% in the third quarter of last year, offset
expected year-over-year declines in other areas. PLA-based resin
sales decreased by $1.8 million relative to last year as a result
of business interrupted by the Ukraine conflict. Service revenue in
the third quarter was $0.5 million as compared to $1.3 million last
year, the continuing result of the successful completion of
development work for certain customers now progressing to
commercialization.
- Gross profit in the third quarter was $(7.7) million compared
to $(4.1) million in the third quarter of 2022. Adjusted gross
profit was $(2.6) million compared to $(1.5) million in the third
quarter of last year. The reduction in adjusted gross profit
primarily reflects increased fixed production costs associated with
greater capacity.
- Third quarter net loss was $(40.2) million this year compared
to a net loss of $(94.9) million last year, primarily reflecting a
non-recurring, non-cash goodwill impairment charge of $62.7 million
in the prior year.
- Adjusted EBITDA was $(9.3) million in the third quarter of 2023
compared to $(12.9) million in the third quarter of 2022. The
ongoing improvement in adjusted EBITDA primarily reflects the
Company’s comprehensive program of expense control measures.
Capital Structure
At September 30, 2023, the Company reported a total debt balance
of $379.9 million, including approximately $45.7 million dollars of
low-interest New Markets Tax Credit loans that the Company expects
will be forgiven between 2026 and 2029. At September 30, 2023, cash
and cash equivalents and restricted cash, which is primarily held
to satisfy future interest payments, totaled $91.9 million.
Outlook
The Company’s previous full-year adjusted EBITDA guidance range
was based on expected strong second half revenue growth through new
customer product launches and associated first shipments that did
not materialize as planned. Accordingly, the Company has modified
its full-year 2023 adjusted EBITDA guidance to a range of $(40)
million to $(37) million and will look forward to finalizing a
number of expected product launches in 2024. Separately, the
Company now anticipates full-year capital expenditures in the range
of $27 million to $29 million, which is a revision toward the more
favorable end of its wider previous range.
Webcast & Conference Call
A webcast and conference call will be held today, November 14,
at 4:30 p.m. Eastern Time to review the Company’s third 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
1-888-886-7786 or 1-416-764-8658, respectively. Upon
dialing in, please request to join the Danimer Scientific Third
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, extrusion coating, 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, please visit
https://danimerscientific.com.
Forward-Looking Statements
Please note that this press release 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
September 30,
December 31,
(in thousands, except share and per share
data)
2023
2022
Assets:
Current assets:
Cash and cash equivalents
$
77,393
$
62,792
Accounts receivable, net
12,422
17,989
Other receivables, net
715
1,635
Inventories, net
26,685
32,743
Prepaid expenses and other current
assets
4,754
5,225
Contract assets, net
5,103
4,687
Total current assets
127,072
125,071
Property, plant and equipment, net
449,824
453,949
Intangible assets, net
78,660
80,941
Right-of-use assets
19,157
19,028
Leverage loans receivable
31,446
31,446
Restricted cash
14,461
1,609
Other assets
346
226
Total assets
$
720,966
$
712,270
Liabilities and Stockholders' Equity:
Current liabilities:
Accounts payable
$
3,909
$
14,977
Accrued liabilities
5,899
5,001
Deferred revenue
438
-
Current portion of lease liability
3,337
3,337
Current portion of long-term debt, net
1,184
1,972
Total current liabilities
14,767
25,287
Private warrants liability
113
212
Long-term lease liability, net
21,965
22,114
Long-term debt, net
378,687
286,398
Deferred income taxes
-
200
Other long-term liabilities
1,153
447
Total liabilities
$
416,685
$
334,658
Stockholders' equity:
Common stock, $0.0001 par value;
200,000,000 shares authorized: 102,035,267 and 101,804,454 shares
issued and outstanding at September 30, 2023 and December 31, 2022,
respectively
$
10
$
10
Additional paid-in capital
718,958
676,250
Accumulated deficit
(414,687
)
(298,648
)
Total stockholders’ equity
304,281
377,612
Total liabilities and stockholders’
equity
$
720,966
$
712,270
Danimer Scientific, Inc.
Condensed Consolidated Statements of Operations
Three Months Ended September
30,
Nine Months Ended September
30,
(in thousands, except share and per share
data)
2023
2022
2023
2022
Revenue:
Products
$
10,454
$
9,099
$
33,724
$
33,890
Services
494
1,349
2,015
4,004
Total revenue
10,948
10,448
35,739
37,894
Costs and expenses:
Cost of revenue
18,685
14,503
56,327
45,606
Selling, general and administrative
16,555
19,413
52,098
62,042
Research and development
6,883
7,947
21,667
24,469
Loss on sale of assets
64
-
234
1
Impairment of long-lived assets
-
63,491
-
63,491
Total costs and expenses
42,187
105,354
130,326
195,609
Loss from operations
(31,239
)
(94,906
)
(94,587
)
(157,715
)
Nonoperating income (expense):
Gain on remeasurement of private
warrants
132
1,607
99
8,614
Interest, net
(8,584
)
(553
)
(21,132
)
(2,197
)
Loss on loan extinguishment
-
(1,500
)
(102
)
(1,500
)
Other, net
-
240
-
324
Total nonoperating income (expense):
(8,452
)
(206
)
(21,135
)
5,241
Loss before income taxes
(39,691
)
(95,112
)
(115,722
)
(152,474
)
Income taxes
(468
)
236
(317
)
767
Net loss
$
(40,159
)
$
(94,876
)
$
(116,039
)
$
(151,707
)
Basic and diluted net loss per share
$
(0.39
)
$
(0.94
)
$
(1.14
)
$
(1.50
)
Weighted average number of shares used to
compute:
Basic and diluted net loss per share
102,025,684
101,199,195
101,953,827
100,993,068
Danimer Scientific, Inc.
Condensed Consolidated Statements of Cash Flows
Nine Months Ended
September 30,
(in thousands)
2023
2022
Cash flows from operating activities:
Net loss
$
(116,039
)
$
(151,707
)
Adjustments to reconcile net loss to net
cash used in operating activities:
Stock-based compensation
42,227
42,398
Depreciation and amortization
22,005
13,172
Amortization of debt issuance costs
6,209
1,601
Accounts receivable reserves
(1,462
)
1,205
Inventory reserves
540
609
Amortization of right-of-use assets and
lease liability
(278
)
(270
)
Loss on disposal of assets
234
1
Deferred income taxes
(199
)
(767
)
Loss on extinguishment of debt
102
1,500
Gain on remeasurement of private
warrants
(99
)
(8,614
)
Contract asset reserve
-
1,215
Impairment of long-lived assets
-
63,491
Other
941
43
Changes in operating assets and
liabilities
Accounts receivable
7,029
(1,747
)
Other receivables
555
2,724
Inventories, net
5,475
(14,271
)
Prepaid expenses and other current
assets
1,816
1,749
Contract assets
(1,244
)
(2,019
)
Other assets
(119
)
(5
)
Accounts payable
(2,061
)
(4,642
)
Accrued liabilities
1,893
(5,037
)
Other long-term liabilities
706
3
Unearned revenue and contract
liabilities
438
1,786
Net cash used in operating activities
(31,331
)
(57,582
)
Cash flows from investing activities:
Purchases of property, plant and equipment
and intangible assets
(25,722
)
(133,632
)
Proceeds from sales of property, plant and
equipment
18
55
Investment in leverage loan receivable
related to NMTC financing
-
(18,037
)
Acquisition of Novomer, net of cash
acquired
-
(14
)
Net cash used in investing activities
(25,704
)
(151,628
)
Cash flows from financing activities:
Proceeds from long-term debt
130,000
24,700
Cash paid for debt issuance costs
(33,296
)
(1,547
)
Principal payments on long-term debt
(12,437
)
(886
)
Proceeds from employee stock purchase
plan
282
526
Employee taxes related to stock-based
compensation
(61
)
-
Proceeds from exercise of stock
options
-
215
Proceeds from issuance of common stock,
net of issuance costs
-
79
Cost related to warrants
-
(55
)
Net cash provided by financing
activities
84,488
23,032
Net increase (decrease) in cash and cash
equivalents and restricted cash
27,453
(186,178
)
Cash and cash equivalents and restricted
cash-beginning of period
64,401
286,968
Cash and cash equivalents and restricted
cash-end of period
$
91,854
$
100,790
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 (Loss)
(Unaudited)
Three Months Ended September
30,
2023
2022
(in thousands)
Net loss
$
(40,159
)
$
(94,876
)
Stock-based compensation
14,324
14,305
Interest, net
8,584
553
Depreciation and amortization
7,253
4,585
Income taxes
468
(236
)
Gain on remeasurement of private
warrants
(132
)
(1,607
)
Strategic reorganization and related
382
-
Litigation and other legal related
28
375
Loss on extinguishment of debt
-
1,500
Impairment of goodwill
-
62,663
Public company transition
-
35
Other, net
-
(240
)
Adjusted EBITDA
$
(9,252
)
$
(12,943
)
Reconciliation of Adjusted
Gross Profit (Loss) to Gross Profit (Loss) (Unaudited)
Three Months Ended September
30,
2023
2022
(in thousands)
Total revenue
$
10,948
$
10,448
Cost of revenue
18,685
14,503
Gross loss
(7,737
)
(4,055
)
Depreciation
5,086
2,571
Stock-based compensation
2
22
Adjusted gross loss
$
(2,649
)
$
(1,462
)
Adjusted gross margin
-24.2
%
-14.0
%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231114713771/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