Pre-Announces Full Year 2023 Revenues of
$238 million; $84 million in Q4
Supplemental supply for Energy Industrial
products initiated in Q4
Potential to Deliver Over 47% YoY revenue
growth in 2024
NORTHBOROUGH, Mass., Jan. 11,
2024 /PRNewswire/ -- Aspen Aerogels, Inc. (NYSE:
ASPN) ("Aspen" or the "Company"),
a technology leader in sustainability and electrification
solutions, today announced preliminary full year 2023 revenue
results, a preliminary 2024 revenue outlook, and the initial
shipments through its supplemental aerogel supply for its Energy
Industrial business.
Preliminary Full Year 2023 Revenues Results and 2024 Baseline
Revenue Outlook
Fourth Quarter Revenues:
- Company revenues of $84 million,
up 38% quarter-over-quarter
- PyroThin thermal barrier revenues of $53
million, up 61% quarter-over-quarter
- Energy Industrial revenues of $31
million, up 11% quarter-over-quarter
- Revenue run rate enabled positive adjusted EBITDA, but
anticipating continued net loss
Full Year 2023 Revenues:
- Company revenues of $238 million,
up 32% year-over-year
- PyroThin thermal barrier revenues of $110 million, up 98% year-over-year
- Energy Industrial revenues of $128
million, up 3% year-over-year despite capacity
constraints
- 1.96X 2021's revenues, effectively meeting a target set in
early 2021 to double revenues by 2023
Current 2024 Baseline Revenue Outlook:
- Expecting revenues of $350
million with upside potential as EV production
accelerates
- Resulting in potential for over 47% year-over-year revenue
growth
Initial Shipments from Supplemental Supply
In the
fourth quarter of 2023, the company successfully delivered Energy
Industrial products to customers through its supplemental
supply.
"The successful launch of our supplemental supply provides
critical capacity that we believe will enable our Energy Industrial
business to live up to its full demand potential," commented
Don Young, Aspen's President and CEO.
"We are proud of the results that the team delivered in 2023 by
effectively doubling our revenues in two years, a goal that we've
been striving for since early 2021," continued Mr. Young. "Our
profitability profile is also vastly improved as we focus on
driving to our gross margin and adjusted EBITDA margin targets of
35% and 25%, respectively."
Ricardo C. Rodriguez, Chief
Financial Officer and Treasurer added, "There's potential for
further growth beyond our current 2024 expectations. However, we
remain cautious given the challenges that our customers face with
launching and scaling new EV nameplates."
"We believe our best hedge to this uncertainty is continuing to
optimize our cost structure, maximize the potential of our Energy
Industrial business, broaden our EV customer base, right-time
capital expenditures, and identify further operating efficiencies,"
continued Mr. Rodriguez. "We believe our December 2023 registered direct financing of
$75 million positions us to capture
additional demand upside and fully funds our near-term objectives
as we turn EBITDA positive. It is also enabling potential long-term
reductions in our cost of capital."
Aspen's preliminary 2023
results are based solely on information currently available to
management and are unaudited. This financial information does not
represent a comprehensive statement of Aspen's financial results for the fourth
quarter or full year 2023 and remains subject to the completion of
Aspen's financial closing
procedures and internal reviews. As a result, Aspen's actual results for the fourth quarter
and full year 2023 may vary materially from these preliminary
estimates.
Aspen expects to release actual
financial results for the fourth quarter on Monday, February 12, 2023, following the market
close.
With respect to the 2024 baseline revenue outlook, Aspen may experience other events in 2024,
including those related to the planned capacity expansion, supply
chain disruptions or further cost inflation, that could cause
actual results to vary materially from this baseline revenue
outlook. See Special Note Regarding Forward-Looking and Cautionary
Statements below.
Non-GAAP Financial Measures
In addition to providing
financial measurements based on generally accepted accounting
principles in the United States of
America ("GAAP"), Aspen
provides an additional financial metric that is not prepared in
accordance with GAAP ("non-GAAP"). The non-GAAP financial measure
included in this press release is Adjusted EBITDA. Management uses
this non-GAAP financial measure, in addition to GAAP financial
measures, as a measure of operating performance because the
non-GAAP financial measure does not include the impact of items
that management does not consider indicative of Aspen's core operating performance. In
addition, management uses Adjusted EBITDA (i) for planning
purposes, including the preparation of Aspen's annual operating budget, (ii) to
allocate resources to enhance the financial performance of its
business, and (iii) as a performance measure under its bonus
plan.
Management believes that this non-GAAP financial measure
reflects Aspen's ongoing business
in a manner that allows for meaningful comparisons and analysis of
trends in its business, as it excludes expenses and gains not
reflective of Aspen's ongoing
operating results or that may be infrequent and/or unusual in
nature. Management also believes that this non-GAAP financial
measures provides useful information to investors in understanding
and evaluating Aspen's operating
results and future prospects in the same manner as management and
in comparing financial results across accounting periods and to
those of peer companies. This non-GAAP measure may not be
comparable to similarly titled measures presented by other
companies.
The non-GAAP financial measure does not replace the presentation
of Aspen's GAAP financial results
and should only be used as a supplement to, not as a substitute
for, Aspen's financial results
presented in accordance with GAAP. Management strongly encourages
investors to review Aspen's
financial statements and publicly filed reports in their entirety
and not rely on any single financial measure.
About Aspen Aerogels, Inc.
Aspen is a technology leader in sustainability
and electrification solutions. The Company's aerogel technology
enables its customers and partners to achieve their own objectives
around the global megatrends of resource efficiency, e-mobility and
clean energy. Aspen's PyroThin®
products enable solutions to thermal runaway challenges within the
electric vehicle ("EV") market. Aspen Battery Materials, the
Company's carbon aerogel initiative, seeks to increase the
performance of lithium-ion battery cells to enable EV manufacturers
to extend the driving range and reduce the cost of EVs.
Aspen's Spaceloft® products
provide building owners with industry-leading energy efficiency and
fire safety. The Company's Cryogel® and Pyrogel® products are
valued by the world's largest energy infrastructure companies.
Aspen's strategy is to partner
with world-class industry leaders to leverage its Aerogel
Technology Platform® into additional high-value markets.
Headquartered in Northborough,
Mass., Aspen manufactures
its products at its East Providence,
R.I. facilities.
Special Note Regarding Forward-Looking and Cautionary
Statements
This press release and any related discussion
contains "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995 that involve risks
and uncertainties that could cause actual results to be materially
different from historical results or from any future results
expressed or implied by such forward-looking statements, including
statements relating to Aspen's
2024 financial outlook. These statements are not historical facts
but rather are based on Aspen's
current expectations, estimates and projections regarding
Aspen's business, operations and
other factors relating thereto, including with respect to
Aspen's 2024 financial outlook.
Words such as "may," "will," "could," "would," "should,"
"anticipate," "predict," "potential," "continue," "expects,"
"intends," "plans," "projects," "believes," "estimates," "outlook,"
"assumes," "targets," "opportunity," and similar expressions are
used to identify these forward-looking statements. Such
forward-looking statements include statements regarding, among
other things, Aspen's expectations
about capacity, revenue, revenue capacity, backlog, costs,
expenses, profitability, cash flow, gross profit, gross margin,
operating margin, net loss, Adjusted EBITDA, Adjusted EBITDA margin
and related decreases, improvements, timing, variability or trends;
beliefs about higher than expected demand from the EV market and
how it may enable a path to profitability, expectations about
improvement in ability to absorb fixed costs and reduction of
conversion costs as a percentage of sales and the same leading to
target revenue capacity and gross margins and Adjusted EBITDA
margins; Aspen's expectations
regarding the planned second manufacturing plant in Georgia ("Plant II"), the extended
construction and commissioning timeframe for Plant II, Aspen's efforts to manage the construction of
Plant II to align with our expectations of demand from EV
customers, and the use of supplemental supply sources to meet
demand from Energy Industrial customers; beliefs about the general
strength, weakness or health of Aspen's business; acceleration in demand;
beliefs about current or future trends in the energy, energy
infrastructure, chemical and refinery, LNG, sustainable building
materials, EV thermal barrier, EV battery materials or other
markets and the impact of these trends on Aspen's business; beliefs about the strength,
effectiveness, productivity, costs, profitability or other
fundamentals of Aspen's business;
beliefs about the role of Aspen's
technology and opportunities in the electric vehicle market;
beliefs about Aspen's ability to
provide and deliver products and services to electric vehicle
customers; beliefs about content per vehicle, revenue, costs,
expenses, profitability, investments or cash flow associated with
Aspen's electric vehicle
opportunities, including the EV thermal barrier business; beliefs
about revenue growth and profitability; beliefs about the
performance of PyroThin® including its ability to mitigate the
propagation of thermal runaway in electric vehicles; beliefs about
Aspen's ability to expand the
market for PyroThin®, to achieve design wins, to commence shipments
of production parts, and to become an industry standard solution
for thermal runaway management; beliefs about Aspen's thermal barrier design, prototype,
quoting and assembly activities; and expectations about the cost of
the capital projects, including Plant II. All such forward-looking
statements are based on management's present expectations and are
subject to certain factors, risks and uncertainties that may cause
actual results, outcome of events, timing and performance to differ
materially from those expressed or implied by such statements.
These risks and uncertainties include, but are not limited to, the
following: inability to execute the growth plan, inability to
complete construction and commissioning the Plant II and to do so
at a cost consistent with Aspen's
estimates and aligned with Aspen's
expectations of demand from our EV customers; the right of EV
thermal barrier customers to cancel contracts with Aspen at any time and without penalty; any
costs, expenses, or investments incurred by Aspen in excess of projections used to develop
pricing under the contracts with EV thermal barrier customers;
Aspen's inability to create
customer or market opportunities for, including PyroThin®; any
other battery performance and safety products, battery materials or
for other new products developed from Aspen's aerogel technology; any disruption or
inability to achieve expected capacity levels in any of the three
existing production lines in East
Providence, RI or the Mexico assembly facility or at any
supplemental supply source; any failure to enforce any of
Aspen's patents; the general
economic conditions and cyclical demands in the markets that
Aspen serves; and the other risk
factors discussed under the heading "Risk Factors" in Aspen's Annual Report on Form 10-K for the
year ended December 31, 2022 and
filed with the Securities and Exchange Commission ("SEC") on
March 16, 2023, as well as any
updates to those risk factors filed from time to time in
Aspen's subsequent periodic and
current reports filed with the SEC. All statements contained in
this press release are made only as of the date of this press
release. Aspen does not intend to
update this information unless required by law.
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SOURCE Aspen Aerogels, Inc.