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Jun 30, 2020
Aspen Aerogels Q2 2020 Earnings Report
Reported a decrease in revenue due to subsea project slowdown and COVID-19 impacts, while making progress in the electric vehicle market.
Key Takeaways
Aspen Aerogels reported a 17% decrease in revenue for Q2 2020 compared to the previous year, primarily due to reduced subsea project work and the impact of COVID-19 on the maintenance business. Despite the revenue decline, the company saw year-over-year growth in on-shore project work, driven by strong demand in the LNG market. Aspen is making strides in leveraging its aerogel technology platform within the electric vehicle market.
Second quarter revenue decreased by 17% year-over-year due to subsea project slowdown and COVID-19 impacts.
Experienced year-over-year growth in on-shore project work, driven by LNG market demand.
Made progress in electric vehicle market initiatives, including cost and performance milestones with SKC Co., Ltd.
Received an initial order for silica aerogel blankets for thermal runaway mitigation from a major Asian electric vehicle producer.
Forward Guidance
Aspen issues a new 2020 full year outlook as follows:
Positive Outlook
- Total revenue is expected to range between $104 million and $110 million
- Adjusted EBITDA is expected to range between $(3.0) million and $0.0 million
- Aspen’s new 2020 outlook assumes depreciation and amortization of $10.5 million
- Aspen’s new 2020 outlook assumes stock-based compensation expense of $4.0 million
- Aspen’s new 2020 outlook assumes interest and other expense of $0.2 million, and weighted average shares outstanding of 26.3 million for the full year.
Challenges Ahead
- Net loss is expected to range between $17.7 million and $14.7 million
- Net loss per share is expected to range between $0.67 and $0.55
- Anticipate that contractor access issues at energy facilities will continue to reduce demand for our products during the COVID-19 pandemic.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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