NYSE$DNMRQ

Danimer Scientific Inc. · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Reported a revenue increase driven by PHA production scale-up and R&D projects, while facing gross profit decline due to elevated fixed-cost absorption.

Danimer Scientific announced Q2 2021 results with a 22% increase in revenue to $14.5 million driven by PHA production and increased R&D revenue. Net income was $39.2 million, including a $58.7 million non-cash gain from warrant remeasurement. The company completed the acquisition of Novomer in August, expecting it to reduce capital expenditures and enhance product offerings.

  • Revenues increased 22% to $14.5 million, driven by PHA production scale-up.
  • PHA-based products expanded to 29% of total revenue, compared to 7% in Q2 2020.
  • Net income was $39.2 million, including a $58.7 million non-cash gain from warrant remeasurement.
  • Acquisition of Novomer completed in August, expected to reduce capital expenditures and enhance product offerings.

Headline financials

Total Revenue

$14.5M

Previous: $11.9M+21.9%
EPS (adj)

-$0.64

Previous: -$0.12-433.3%
Capital Expenditures

$28M

Previous: $3.74M+649.2%
Free Cash Flow

-$36.4M

Previous: $1.81M-2110.9%
Net Income

$39.2M

Previous: -$1.8M+2280.4%
Operating Income

-$21.1M

Previous: -$1.52M-1291.2%
Gross Profit

$2.01M

Previous: $3.43M-41.4%
Cash & Equivalents

$416M

Previous: $1.68M+24717.7%
Total Assets

$646M

Previous: $202M+220.0%
Stock-Based Comp

$14M

Previous: $155K+8952.3%

Revenue & EPS history

Danimer Scientific · Revenue · Quarterly

$14.5M

Q2 2021+21.9%vs Q2 2020
Beat estimate in 3 of 15 quarters(20%)
ActualEstimate

Revenue by segment

Danimer Scientific · $14.5M total across 2 segments · Q2 2021

  • Products
    $11.3M
  • Services
    $3.18M

Forward guidance

Danimer Scientific expects to continue accelerating investments in headcount and technology, including Novomer, to support production capacity expansion and sales growth. Improved operating rates from the Kentucky debottlenecking are expected to contribute to Adjusted EBITDA and cash flow in 2021, with second-half results weighted towards Q4. Full-year capital expenditures are projected to be between $125 million and $150 million, including post-acquisition investments in Novomer.

Tailwinds

  • Improved operating rates from Kentucky debottlenecking to contribute to Adjusted EBITDA and cash flow.
  • Expected acceleration of investments in headcount and technology to support growth.
  • Second-half results expected to be weighted towards the fourth quarter.
  • Continued planning for state-of-the-art PHA greenfield facility in Bainbridge, Georgia.
  • Construction of the Kentucky plant expansion continues on schedule.

Headwinds

  • Unspecified risks and uncertainties that could affect the company's financial results.
  • Overall level of consumer demand on its products.
  • General economic conditions and other factors affecting consumer confidence, preferences, and behavior.
  • Disruptions and other impacts to the company’s business, as a result of the COVID-19 global pandemic
  • Fluctuations in the price, availability and quality of raw materials and contracted products as well as foreign currency fluctuations

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 11 quarterly earnings reports

Historical avg

+1.1%

Avg return

Earnings day

+2.4%

Avg return

5 days after

-19.1%

Avg return

30 days after

58%

11 / 19 earnings

Positive

+26.3%

Q1 2023

Best reaction

-29.0%

Q3 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2024+0.0%+0.0%+0.0%
Q3 2024-29.0%-36.3%-69.3%
Q2 2024-0.9%-7.1%-27.9%
Q1 2024-3.7%-1.9%-28.2%
Q4 2023+2.0%-10.7%-38.0%
Q3 2023+2.0%-2.8%-16.7%
Q2 2023-6.4%-14.2%-24.4%
Q1 2023+26.3%+27.0%+3.1%
Q4 2022+9.3%+28.2%+17.1%
Q3 2022+3.7%+23.2%-14.9%
Q2 2022+4.3%+21.3%-11.2%
Q1 2022-3.6%
Q4 2021+21.1%
Q3 2021-18.0%
Q2 2021-2.9%
Q1 2021+12.0%
Q4 2020+2.5%
Q2 2020+2.5%
Q3 2020+0.3%
Q1 2020
Q4 2019
Q3 2019
Q2 2019
Q1 2019

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