– Origin 1 Commences Commercial-Scale
Production –
– Origin 2 Project Development Advances with
Increasing Interest from Strategic Partners –
– Contracted Offtake Agreements and Capacity
Reservations Exceed $10 Billion –
– Updates 2023 Revenue and Adjusted EBITDA
Outlook –
Origin Materials, Inc. (“Origin,” “Origin Materials,” or the
“Company”) (Nasdaq: ORGN, ORGNW), the world’s leading carbon
negative materials company with a mission to enable the world’s
transition to sustainable materials, today announced financial
results for its third quarter ended September 30, 2023.
This press release features multimedia. View
the full release here:
https://www.businesswire.com/news/home/20231109228162/en/
“First, I would like to extend a warm welcome to Matt Plavan,
Origin’s new CFO,” said Rich Riley, Co-Chief Executive Officer of
Origin. “I am confident Matt will be a tremendous addition to the
team. Moreover, we are thrilled to have started production at
Origin 1 in early October and are now in the process of sending CMF
and HTC to our customers and strategic partners. Our commercial
partners have responded positively to this news, and many have
already visited our plant. Their $10 billion in signed offtake
agreements and capacity reservations represent a powerful demand
pull for Origin’s products and clear validation that our
proprietary technology is important to their global sustainability
mandates. With regard to Origin 2, we continue to advance the
project with an appropriate focus on optimal funding strategies and
have been pleased that many of our strategic partners have
leaned-in and asked how they can help us bring world-scale plants
online as soon as possible. This may include co-development with
one or more of these strategic partners. We look forward to
providing more detail on less capital-intensive strategies for
building world-scale plants in our February 2024 earnings call. As
we advance Origin 2, we are at the same time implementing a
rigorous cash conservation program, balancing our need to reach
EBITDA positive with the need to maintain our forward momentum. As
such, we are prioritizing revenue-generating projects with the
greatest contribution to near-term cash and seizing opportunities
to defer research expenses or other programs targeting longer-term
results, consistent with feedback from investors, with whom we have
spent substantial time last quarter. We remain committed to
bringing our sustainable products to market while maximizing
shareholder value.”
Company Third Quarter and Recent Business Highlights
Origin Materials reported quarterly revenue of $7.1 million
generated by joint development agreements and the Company’s supply
chain activation program. Our engagements with some of the world’s
leading companies to deploy our technology platform continue to
accelerate, with world-class, well-capitalized market leaders among
prospective partners for licensing and project co-development. We
expect our customers and strategic partners to increase their
engagement with us in commercializing our technology platform as
they begin to receive materials from Origin 1 for application
development. We intend to provide more detail on these less
capital-intensive strategies for building world-scale plants in our
February 2024 earnings call. Third quarter and recent business
highlights include:
- Origin Materials Announces Commencement of Commercial-Scale
Production at Origin 1. The state-of-the-art plant scales up the
Company’s core technology platform for converting sustainable wood
residues into intermediate chemicals, including CMF, HTC, and oils
and extractives, a key milestone for advancing the Company's
strategic partnerships. Origin’s products can decarbonize and
improve the performance of a wide range of end-products, including
bio-based apparel and textiles, green tires for the automotive
industry, and bio-based, fully recyclable packaging.
- Origin Materials Announces Appointment of Matt Plavan as Chief
Financial Officer. Mr. Plavan brings sixteen years of public
company executive experience at technology-driven companies
operating in complex business environments, as well as a proven
track record of leading initiatives to fund the commercial scale up
of disruptive technologies into well-established industries.
- Origin Materials Awarded BioMADE Funding to Advance Department
of Defense Sustainability Goals. Origin Materials is one of nine
projects announced by BioMADE, totaling $18.7 million in funding,
that aim to aid in the advancement of Department of Defense supply
chain resiliency and sustainability goals, re-shore manufacturing
jobs to the United States, and enhance the domestic bioindustrial
manufacturing ecosystem.
Origin 1 and Origin 2 Update
Following the close of the second quarter, the Company announced
the commencement of commercial-scale production at Origin 1,
located in Sarnia, Ontario, Canada. This achievement is a key
milestone for advancing the Company’s strategic partnerships, and
we are currently in the process of delivering materials produced at
Origin 1 to customers and strategic partners. For CMF, this
includes a specialty chemical company and a major surfactants
company. For HTC, this includes several major carbon black
companies for use in green tires and other applications. Major tire
companies, rubber companies, and specialty carbon users spanning
plastics, batteries, pigments, inks, coatings, dispersions and
other applications have expressed interest in HTC produced at
Origin 1. Plant production is expected to ramp up and feedstocks
will be varied over the coming months. Origin 1 is part batch, part
continuous, enabling the team to adjust operating parameters more
easily than if the plant were fully continuous.
With respect to Origin 2, the project continues to advance with
an appropriate focus on optimal funding strategies. The mix of
funding is evolving with increasing interest from strategic
partners. The next step for Origin 2 is a revised FEED, or
front-end engineering design package, and the Company will provide
an update when appropriate.
Results for Third Quarter 2023
Cash, cash equivalents and marketable securities were $189.5
million as of September 30, 2023.
Revenue for the third quarter was $7.1 million compared to zero
in the prior-year period, driven mostly by our supply chain
revenues.
Operating expenses for the third quarter were $12.9 million
compared to $9.7 million in the prior-year period, the difference
driven by increased general and administrative expenses.
Net income was $30.9 million for the third quarter compared to
net income of $8.3 million in the prior-year period.
Adjusted EBITDA loss was $9.5 million for the third quarter
compared to a loss of $8.4 million in the prior-year period.
Shares outstanding as of September 30, 2023 were 144.2 million
including 4.5 million shares that are subject to forfeiture based
on share price performance targets previously disclosed in our
filings.
Full Year 2023 Outlook
Based on current business conditions, business trends and other
factors, the Company is updating the following guidance for revenue
and Adjusted EBITDA for fiscal year 2023:
- Consistent with the focus on cash management, during the
quarter, the Company intentionally scaled back its supply chain
activation business because, although it has long-term strategic
value, it has low short-term margins and high working capital
requirements. Additionally, some joint development programs
expected to close in 2023 are now expected to close in 2024.
Therefore, the Company now expects 2023 revenue of $25 million to
$30 million versus $40 million to $60 million.
- From this reprioritization, we expect a beneficial impact on
EBITDA loss, improving our guidance range to $45 million to $50
million from $50 million to $60 million.
For a reconciliation of a non-GAAP figure to the applicable GAAP
figure, please see the table captioned ‘Reconciliation of GAAP and
Non-GAAP Results' set forth at the end of this press release. These
expectations do not consider, or give effect to, among other
things, unforeseen events, including changes in global economic
conditions.
Webcast and Conference Call Information
Company management will host a webcast and conference call on
November 9, 2023, at 5:00 p.m. Eastern Time, to discuss the
Company's financial results.
Interested investors and other parties can listen to a webcast
of the live conference call and access the Company’s third quarter
update presentation by logging onto the Investor Relations section
of the Company's website at
https://investors.originmaterials.com/.
The conference call can be accessed live over the phone by
dialing 1-877-550-1707 (domestic) or +1-848-488-9020
(international). A telephonic replay will be available
approximately three hours after the call by dialing 1-844-512-2921,
or for international callers, +1-412-317-6671. The conference ID
for the live call and pin number for the replay is 11154017. The
replay will be available until 11:59 p.m. Eastern Time on November
16, 2023.
About Origin Materials, Inc.
Headquartered in West Sacramento, Origin Materials is the
world's leading carbon negative materials company. Origin’s mission
is to enable the world’s transition to sustainable materials. For
over a decade, Origin has developed a platform for turning the
carbon found in inexpensive, plentiful, non-food biomass such as
sustainable wood residues into useful materials while capturing
carbon in the process. Origin’s patented technology platform can
help revolutionize the production of a wide range of end products,
including clothing, textiles, plastics, packaging, car parts,
tires, carpeting, toys, fuels, and more with a ~$1 trillion
addressable market. In addition, Origin’s technology platform is
expected to provide stable pricing largely decoupled from the
petroleum supply chain, which is exposed to more volatility than
supply chains based on sustainable wood residues. Origin’s patented
drop-in core technology, economics and carbon impact are supported
by a growing list of major global customers and investors. For more
information, visit www.originmaterials.com.
Non-GAAP Financial Information
To supplement the Company’s financial results presented in
accordance with generally accepted accounting principles in the
United States ("U.S. GAAP"), the Company also uses non-GAAP
financial measures, including Adjusted EBITDA, as supplemental
measures to review and assess the Company’s operating performance.
Adjusted EBITDA is defined as net income or loss adjusted for (i)
stock-based compensation expense, (ii) depreciation and
amortization, (iii) interest (income) expenses, (iv) change in fair
value of derivative, (v) change in fair value of warrants
liability, (vi) change in fair value of earnout liability, and
(vii) other income, net. The Company believes that these non-GAAP
financial measures provide useful information about the Company’s
operating results, enhance the overall understanding of the
Company’s past performance and future prospects and allow for
greater visibility with respect to key metrics used by the
Company’s management in its financial and operational
decision-making.
Non-GAAP financial measures are not defined under U.S. GAAP and
are not presented in accordance with U.S. GAAP. These non-GAAP
financial measures have limitations as analytical tools, and when
assessing the Company’s operating performance, investors should not
consider them in isolation. In addition, calculations of this
non-GAAP financial information may be different from calculations
used by other companies, and therefore comparability may be
limited.
The Company mitigates these limitations by reconciling the
non-GAAP financial measures to the most comparable U.S. GAAP
performance measures, all of which should be considered when
evaluating our performance.
The Company is unable to reconcile forward-looking Adjusted
EBITDA information provided in this press release to net income,
the most closely comparable U.S. GAAP financial measure, without
unreasonable efforts. The Company is currently unable to predict
with a reasonable degree of certainty the type and extent of
certain items expected to impact net income in the future but not
expected to impact forward-looking Adjusted EBITDA. These include,
among other things, stock-based compensation expense, depreciation
and amortization, interest income, and interest expense, which are
inherently unpredictable. The Company currently expects to continue
to exclude these items in future disclosures of any forward-looking
Adjusted EBITDA and may also exclude other items that may arise.
Information related to these items, which is unavailable at this
time, could have a significant impact on the Company’s U.S. GAAP
net income.
For more information on this non-GAAP financial measure, please
see the table captioned “Reconciliation of GAAP and Non-GAAP
Results” set forth at the end of this press release.
Cautionary Note on Forward-Looking Statements
This press release contains certain forward-looking statements
within the meaning of the federal securities laws. Forward-looking
statements generally are accompanied by words such as “believe,”
“may,” “will,” “estimate,” “continue,” “anticipate,” “intend,”
“expect,” “should,” “would,” “plan,” “predict,” “potential,”
“seem,” “seek,” “future,” “outlook,” and similar expressions that
predict or indicate future events or trends or that are not
statements of historical matters. These forward-looking statements
include, but are not limited to, statements regarding Origin
Materials’ business strategy, estimated total addressable market,
anticipated synergies from partnerships, ability to preserve cash
and bring sustainable products to market while maximizing
shareholder value, ability to bring world-scale plants online as
soon as possible, expectation of increased engagement of our
partners, access to financing sources, budget and timelines for
Origin 2, anticipated benefits of and demand for our potential
products and platform, ability to convert capacity reservations and
offtake agreements into revenue, commercial and operating plans,
product development plans and announcements of such plans,
anticipated growth and projected financial information and ability
to realize the anticipated benefits of any partnerships discussed
in the press release. These statements are based on various
assumptions, whether or not identified in this press release, and
on the current expectations of the management of Origin Materials
and are not predictions of actual performance. These
forward-looking statements are provided for illustrative purposes
only and are not intended to serve as, and must not be relied on
as, a guarantee, an assurance, a prediction, or a definitive
statement of fact or probability. Actual events and circumstances
are difficult or impossible to predict and will differ from
assumptions. Many actual events and circumstances are beyond the
control of Origin Materials. These forward-looking statements are
subject to a number of risks and uncertainties, including that
Origin Materials may be unable to successfully commercialize its
products; the effects of competition on Origin Materials’ business;
the uncertainty of the projected financial information with respect
to Origin; disruptions and other impacts to Origin’s business as a
result of Russia’s military intervention in Ukraine, the impact of
severe weather events, and other global health or economic crises;
changes in customer demand; and those factors discussed in the
Quarterly Report on Form 10-Q filed with the U.S. Securities and
Exchange Commission (“SEC”) on November 9, 2023, under the heading
“Risk Factors,” and other documents Origin Materials has filed, or
will file, with the SEC. If any of these risks materialize or our
assumptions prove incorrect, actual results could differ materially
from the results implied by these forward-looking statements. There
may be additional risks that Origin Materials presently does not
know, or that Origin Materials currently believes are immaterial,
that could also cause actual results to differ from those contained
in the forward-looking statements. In addition, forward-looking
statements reflect Origin Materials’ expectations, plans, or
forecasts of future events and views as of the date of this press
release. Origin Materials anticipates that subsequent events and
developments will cause its assessments to change. However, while
Origin Materials may elect to update these forward-looking
statements at some point in the future, Origin Materials
specifically disclaims any obligation to do so. These
forward-looking statements should not be relied upon as
representing Origin Materials’ assessments of any date subsequent
to the date of this press release. Accordingly, undue reliance
should not be placed upon the forward-looking statements.
ORIGIN MATERIALS, INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(In thousands, except share and per share
data)
September 30, 2023
(Unaudited)
December 31, 2022
ASSETS
Current assets
Cash and cash equivalents
$
66,106
$
107,858
Restricted cash
—
490
Marketable securities
123,430
215,464
Accounts receivable
10,625
—
Other receivables
1,852
4,346
Inventory
821
—
Derivative asset
277
—
Prepaid expenses and other current
assets
6,041
3,341
Total current assets
209,152
331,499
Property, plant, and equipment, net
234,117
154,183
Operating lease right-of-use asset
4,610
2,779
Intangible assets, net
129
160
Other long-term assets
23,033
5,079
Total assets
$
471,041
$
493,700
LIABILITIES AND STOCKHOLDERS’
EQUITY
Current liabilities
Accounts payable
$
4,991
$
10,384
Accrued expenses
7,071
8,414
Operating lease liability, current
404
619
Deferred income
1,374
—
Other liabilities, current
2,896
51
Derivative liability
—
344
Total current liabilities
16,736
19,812
Earnout liability
3,629
42,533
Canadian Government Research and
Development Program liability
7,169
7,185
Assumed common stock warrants
liability
3,434
30,872
Notes payable
3,459
5,847
Operating lease liability
4,270
2,249
Other liabilities, long-term
8,257
8,297
Total liabilities
$
46,954
$
116,795
STOCKHOLDERS’ EQUITY
Preferred stock, $0.0001 par value,
10,000,000 shares authorized; no shares issued and outstanding as
of September 30, 2023 and December 31, 2022
—
—
Common stock, $0.0001 par value,
1,000,000,000 shares authorized; 144,198,529 and 143,034,225,
issued and outstanding as of September 30, 2023 and December 31,
2022, respectively (including 4,500,000 Sponsor Vesting Shares)
14
14
Additional paid-in capital
380,295
371,072
Retained earnings
56,008
21,772
Accumulated other comprehensive loss
(12,230
)
(15,953
)
Total stockholders’ equity
424,087
376,905
Total liabilities and stockholders’
equity
$
471,041
$
493,700
ORIGIN MATERIALS, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
(Unaudited)
Three months ended September
30,
Nine months ended September
30,
(In thousands, except share and per share
data)
2023
2022
2023
2022
Revenues
$
7,140
$
—
$
15,742
$
—
Cost of revenues (exclusive of
depreciation and amortization shown separately below)
6,340
—
14,114
—
Operating expenses
Research and development
4,927
3,732
15,398
8,717
General and administrative
7,633
5,834
23,908
16,769
Depreciation and amortization
386
180
1,021
488
Total operating expenses
12,946
9,746
40,327
25,974
Loss from operations
(12,146
)
(9,746
)
(38,699
)
(25,974
)
Other income (expenses)
Interest income (expenses)
(1,130
)
2,309
4,308
6,077
Gain in fair value of derivatives
126
1,129
620
1,725
Gain (loss) in fair value of warrants
liability
22,815
(1,419
)
27,438
15,610
Gain in fair value of earnout
liability
18,757
15,147
39,137
63,561
Other income, net
2,603
879
1,655
1,577
Total other income, net
43,171
18,045
73,158
88,550
Net income before income tax expenses
31,025
8,299
34,459
62,576
Income tax expenses
(94
)
—
(223
)
—
Net income
$
30,931
$
8,299
$
34,236
$
62,576
Other comprehensive income (loss)
Unrealized gain (loss) on marketable
securities, net of tax
$
1,593
$
(1,403
)
$
4,507
$
(10,783
)
Foreign currency translation adjustment,
net of tax
(4,176
)
(7,253
)
(784
)
(8,061
)
Total comprehensive income (loss)
$
28,348
$
(357
)
$
37,959
$
43,732
Net income per share, basic
$
0.22
$
0.06
$
0.25
$
0.46
Net income per share, diluted
$
0.22
$
0.06
$
0.24
$
0.44
Weighted-average common shares
outstanding, basic
139,806,045
138,061,829
139,374,106
137,348,180
Weighted-average common shares
outstanding, diluted
142,703,550
142,197,014
142,872,174
142,134,560
ORIGIN MATERIALS, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(Unaudited)
Nine months ended September
30,
(in thousands)
2023
2022
Cash flows from operating
activities
Net income
$
34,236
$
62,576
Adjustments to reconcile net income to net
cash from operating activities:
Depreciation and amortization
1,055
488
Amortization on right-of-use asset
458
423
Stock-based compensation
7,031
3,719
Realized gain of marketable securities
(1,706
)
—
Amortization premium and discount of
marketable securities, net
3,701
—
Change in fair value of derivatives
(620
)
(1,725
)
Change in fair value of common stock
warrants liability
(27,438
)
(15,610
)
Change in fair value of earnout
liability
(39,137
)
(63,561
)
Change in fair value of incremental
acquisition fee accrual
—
(35
)
Changes in operating assets and
liabilities:
Receivables
(8,130
)
(926
)
Inventory
(821
)
—
Prepaid expenses and other current
assets
(2,703
)
(1,464
)
Other long-term assets
(17,954
)
(5,019
)
Accounts payable
2,819
5,195
Accrued expenses
1,707
4,380
Operating lease liability
(529
)
(338
)
Deferred income
1,374
—
Other liabilities, current
2,846
2,214
Other liabilities, long-term
(2,636
)
221
Net cash used in operating
activities
(46,447
)
(9,462
)
Cash flows from investing
activities
Purchases of property, plant, and
equipment, net of grants
(90,113
)
(57,825
)
Purchases of marketable securities
(3,092,218
)
(2,584,027
)
Sales of marketable securities
3,057,700
2,587,649
Maturities of marketable securities
129,081
124,319
Capitalized interest on plant
construction
—
(133
)
Net cash provided by investing
activities
4,450
69,983
Cash flows from financing
activities
Proceeds from exercise of stock
options
145
371
Net cash provided by financing
activities
145
371
Effects of foreign exchange rate changes
on the balance of cash and cash equivalents, and restricted cash
held in foreign currencies
(390
)
(4,549
)
Net (decrease) increase in cash and
cash equivalents, and restricted cash
(42,242
)
56,343
Cash and cash equivalents, and
restricted cash, beginning of the period
108,348
47,127
Cash and cash equivalents, and
restricted cash, end of the period
$
66,106
$
103,470
Origin Materials, Inc.
Reconciliation of GAAP and
Non-GAAP Results
Three months ended September
30,
Nine months ended September
30,
(in thousands)
2023
2022
2023
2022
Net income
$
30,931
$
8,299
$
34,236
$
62,576
Stock based compensation
2,380
1,146
7,031
3,719
Depreciation and amortization
386
180
1,021
488
Interest (income) expenses
1,130
(2,309
)
(4,308
)
(6,077
)
Gain in fair value of derivatives
(126
)
(1,129
)
(620
)
(1,725
)
(Gain) loss in fair value of warrants
liability
(22,815
)
1,419
(27,438
)
(15,610
)
Gain in fair value of earnout
liability
(18,757
)
(15,147
)
(39,137
)
(63,561
)
Other income, net
(2,603
)
(879
)
(1,655
)
(1,577
)
Adjusted EBITDA
$
(9,474
)
$
(8,420
)
$
(30,870
)
$
(21,767
)
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231109228162/en/
Origin Materials Investors: ir@originmaterials.com
Media: media@originmaterials.com
Origin Materials (NASDAQ:ORGN)
過去 株価チャート
から 4 2024 まで 5 2024
Origin Materials (NASDAQ:ORGN)
過去 株価チャート
から 5 2023 まで 5 2024