Danimer Scientific Inc. · Q3 2021 earnings

Briefing

Reported a 4% increase in revenue driven by PHA product sales and progress on key strategic objectives.

Danimer Scientific reported a 4% increase in revenue to $13.4 million, driven by a 10% growth in product revenue and a significant increase in PHA-based product sales. The company experienced a gross profit loss of $(0.2) million, while net income reached $7.8 million due to a non-cash gain from warrant remeasurement. Adjusted EBITDA was a loss of $7.4 million.

• Revenues increased 4% to $13.4 million compared to Q3 2020, driven by 10% growth in product revenue.
• PHA-based product sales grew over 180% year-over-year, accounting for 32% of total revenue compared to 12% in Q3 2020.
• Net income of $7.8 million included a $28.4 million non-cash gain related to the remeasurement of the Company’s private warrants.
• Adjusted EBITDA was a loss of $7.4 million compared to a loss of $0.5 million in the third quarter of 2020.

Headline financials

Revenue & EPS history

The company expects to continue accelerating investments in headcount, inclusive of Novomer, to build out the operational platform and infrastructure needed to support its production capacity expansion and sales growth objectives. The company continues to expect that improved operating rates will contribute to Adjusted EBITDA and cash flow from operations. Based on the timing of customer product launches, the company continues to expect its second half 2021 revenue to be weighted towards the fourth quarter. The company now expects full year capital expenditures to be in the range of $200 million to $210 million mainly due to the accelerated groundbreaking of the company’s greenfield facility in Bainbridge, Georgia, as well as phase II construction moving faster than previously anticipated.