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Sep 30, 2021
Danimer Scientific Q3 2021 Earnings Report
Reported a 4% increase in revenue driven by PHA product sales and progress on key strategic objectives.
Key Takeaways
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.
Revenue by Segment
Forward Guidance
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.
Positive Outlook
- Continued acceleration of investments in headcount to support expansion.
- Improved operating rates expected to contribute to Adjusted EBITDA and cash flow.
- Second half 2021 revenue expected to be weighted towards the fourth quarter.
- Full year capital expenditures expected to be in the range of $200 million to $210 million.
- Kentucky plant expansion is progressing ahead of schedule, and phase II is expected to come online in the second quarter of 2022.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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