-- PHA Revenue Up 11% Year-Over-Year in
Fourth Quarter of 2023 --
-- Previously Announced Cutlery Award Poised
to Expand --
-- PHA Revenue Increase of Approximately 60%
Year-Over-Year Expected in First Quarter 2024 --
-- Expects to Become Adjusted EBITDA
Positive in Early 2025 --
-- Announces Date for Fourth Quarter and
Full Year 2023 Earnings Call --
Danimer Scientific, Inc. (NYSE: DNMR) (“Danimer” or the
“Company”), a leading next generation bioplastics company focused
on the development and production of biodegradable materials, today
announced preliminary results for its fourth quarter and full year,
ended December 31, 2023.
Stephen E. Croskrey, Chairman and Chief Executive Officer of
Danimer, commented, “We are pleased that we continued our trend of
year-over-year PHA revenue growth in the fourth quarter. We expect
this growth to accelerate in 2024 with increased volumes from our
existing customer base as well as the addition of significant
volumes from new customers throughout the year. We expect this to
start with our first commercial shipment to Delta Cafés this week
and we further expect our first quarter 2024 PHA sales to exceed
our first quarter 2023 PHA sales by approximately 60%. Our
previously announced 20-million-pound cutlery award which will
serve a large global quick-service restaurant (“QSR”) chain is in
the first stages of scale up, and we expect it to reach full run
rate in the second quarter of 2025 while also providing an
opportunity to grow geographically and into other related product
categories with the end-customer.”
Mr. Croskrey continued, “The expected demand growth for our PHA
based products allows us to confirm our projected profitability
timeline for our Kentucky operation and the Company in total. We
expect our Kentucky facility, on a stand-alone basis, to become
Adjusted EBITDA positive when shipments require plant capacity
utilization of just over 30 percent. We expect the Company as a
whole will become Adjusted EBITDA positive when our Kentucky
facility reaches 70 to 80 percent capacity utilization near the
start of 2025.”
The results reported in this press release are preliminary and
unaudited. Danimer’s financial closing procedures for the fourth
quarter and year ended December 31, 2023 are not yet complete and
it is possible that the final results may differ from the
preliminary results set forth below.
Preliminary Fourth Quarter 2023 Results:
- Preliminary total revenue was $10.9 million for the fourth
quarter of 2023 compared to revenue of $15.3 million for the fourth
quarter of 2022. While PHA revenue increased by $0.9 million in the
quarter as compared with the prior year quarter, loss of shipments
to customers affected by the conflict in Ukraine reduced the
quarter-over-quarter PLA revenue by $4.9 million, leading to a net
reduction in product revenue of $4.0 million.
- Preliminary Adjusted EBITDA was $(10.7) million for the fourth
quarter of 2023 compared to $(8.6) million for the fourth quarter
of 2022.
Preliminary Full Year 2023 Results and Ending Cash
Balance:
- Preliminary total revenue was $46.7 million for the full year
of 2023 compared to $53.2 million in the prior year. As noted for
the fourth quarter, the conflict in Ukraine was the primary driver
of the $6.1 million decrease in the full year PLA revenue compared
to 2022. This more than offset the increase in PHA revenue in 2023
of $1.8 million as compared to the prior year. Service revenue of
$2.5 million in 2023 was down compared to $4.8 million in the prior
year as the Company completed several long-term funded R&D
projects in the prior year and are moving to commercialize those
investments.
- Preliminary Adjusted EBITDA was $(39.0) million for the full
year of 2023 compared to $(45.0) million for the full year of 2022.
The year over year improvement in Adjusted EBITDA primarily
reflects the Company’s comprehensive program of expense control
measures.
- Unrestricted cash and cash equivalents at December 31, 2023 was
$59.2 million, which does not include $14.3 million of restricted
cash that is mainly held for future interest payments under the
Company’s existing $130 million Senior Secured Term Loan.
Webcast and Conference Call
The Company will host a webcast and conference call on Thursday,
March 28, 2024, at 4:30 p.m. Eastern time to review fourth quarter
and full-year 2023 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 Fourth 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 the Company’s estimated preliminary fourth quarter and
full-year 2023 results and our expectations for our future and
operational performance. 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.
Non-GAAP Financial Measures
This press release includes the non-GAAP financial measure
“Adjusted EBITDA”. Danimer management views this metric 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.
Danimer believes that Adjusted EBITDA is useful to investors in
evaluating the Company’s performance because this 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 this non-GAAP metric offers 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 should not be considered as an alternative to
net income or loss as an indicator of its performance or as an
alternative to any other measure prescribed by GAAP as there are
limitations to using such non-GAAP measures. Although Danimer
believes that Adjusted EBITDA 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 differently than Danimer does and, as a result, it
may not be comparable to a similarly titled measure used by other
companies in its industry, and (ii) Adjusted EBITDA excludes
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 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.
Preliminary Reconciliation of
Adjusted EBITDA to Net Loss (Unaudited)
Three Months Ended December 31, Twelve Months
Ended December 31,
2023
2022
2023
2022
(in thousands)
Net loss
$
(39,434
)
$
(28,051
)
$
(155,473
)
$
(179,758
)
Stock-based compensation
12,906
14,218
55,839
56,768
Interest, net
8,509
(474
)
29,641
1,723
Depreciation and amortization
7,372
7,281
29,377
20,453
Gain on remeasurement of private warrants
(108
)
(752
)
(207
)
(9,366
)
Income taxes
2
(43
)
319
(810
)
Litigation and other legal related
84
146
207
2,082
Inventory reserve
-
(495
)
-
-
Loss on extinguishment of royalty agreement
-
-
549
-
Strategic reorganization and related
-
-
410
-
Loss on sale of assets
-
-
246
1
Loss on loan extinguishment
-
-
102
1,500
Impairment of goodwill
-
-
-
62,663
Public company transition costs
-
-
-
481
Other, net
-
(399
)
-
(723
)
Adjusted EBITDA
$
(10,669
)
$
(8,569
)
$
(38,990
)
$
(44,986
)
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240320700063/en/
Investors Blake Chamblee Phone: 770-337-6570
ir@danimer.com Media Richard Ivey Phone: 229-254-7688
rivey@danimer.com
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