Origin Materials, Inc. Reports Financial Results for Second Quarter 2021
– Successfully Completed Public Listing in June, Resulting in Cash and Cash Equivalent Balance of
– Reaffirming Origin 1 and 2 Capital Budget, Production Timeline and Financing –
– Increased Contracted Offtake Agreements and Capacity Reservations to
“I am incredibly proud of what the Origin team has accomplished so far in 2021, continuing our mission to enable the world’s transition to sustainable materials. We have taken significant steps to commercialize the business by broadening our customer base beyond CPG into apparel, automotive and industrial end-markets, while also substantially increasing customer demand, strengthening the leadership team, and making significant capital available to the business through the combination of
Key Company Highlights
-
Launched Net Zero Automotive program withFord Motor Company (NYSE: F) focused on industrializing new materials to drive decarbonization in the automotive industry. - Partnership with Mitsubishi Gas Chemical to industrialize advanced carbon negative chemicals and materials for applications in the automotive, medical, food, information and communication, energy, and infrastructure sectors.
- Partnership with Solvay to develop advanced carbon negative materials for the automotive industry.
-
Strategic alliance with PrimaLoftto develop carbon negative insulating fiber for outdoor gear, bedding and apparel. PrimaLoft’s iconic brand partners include Patagonia,
Stone Island ,L.L. Bean , Lululemon, adidas and Nike. - Partnership with Packaging Mattersto advance carbon negative packaging solutions, building on an existing 10-year supply agreement.
- Partnership with AECI Much Asphalt to develop low-carbon asphalt.
- Partnership with AECI Sans Technical Fiberto develop carbon negative materials for apparel and automotive applications.
-
Strategic alliance with
Palantir Technologies (NYSE: PLTR) to accelerate the world’s transition to net zero carbon with a focus on decarbonizing the global materials supply chain.
Origin 1 and Origin 2 Financing and Construction Update
As part of our ongoing project construction review, including construction costs and timeline to account for the recent increase in inflation and supply chain disruption, the Company reaffirms the capital budget for the construction of Origin 1 and Origin 2, and is confirming its previously disclosed start of production timelines. Based on preliminary feedback from leading financial institutions that have expertise in financing similarly sized capital projects, the Company reaffirms its expectations that the capital projects for Origin 1 and Origin 2 can be fully funded from its existing cash on hand and previously indicated traditional project financing sources.
Origin has selected Worley, one of the world’s leading engineering organizations as its engineering partner for both Origin 1 and front-end engineering partner for Origin 2.
The Company continues to expect the construction of Origin 1 to be completed before the end of 2022, with commissioning and production at the plant beginning immediately thereafter. Origin is pleased to be working with leading capital projects partners
Origin continues to expect the construction of Origin 2 will be complete by the middle of 2025. Further, the Company anticipates it will select the Owner’s Engineer and site by the end of 2021, that Origin 2’s Front End Loading (FEL)1 and FEL2 project development stages will be completed in the middle of 2022, and that a construction contract will be issued before the end of Q1 2023. The Company is working with Worley,
Results for Second Quarter 2021
Cash, cash equivalents and marketable securities were
Operating expenses for the second quarter were
Adjusted EBITDA loss was
Net income was
Shares outstanding as of
Full Year 2021 Outlook
Based on current business conditions, business trends and other factors, the Company expects to be within its previously provided guidance:
-
Adjusted EBITDA loss of up to
$25 million -
Capital spending of up to
$111 million
For a reconciliation of a non-GAAP figure to the applicable GAAP figure please see the table captioned ‘Reconciliation of GAAP and Non-GAAP Results' set forth at the end of this press release. These expectations do not consider, or give effect to, among other things, unforeseen events, including changes in global economic conditions.
Webcast and Conference Call Information
Company management will host a webcast and conference call on
Interested investors and other parties can listen to a webcast of the live conference call and access the Company’s first quarter update presentation by logging onto the Investor Relations section of the Company's website at https://investors.originmaterials.com/.
The conference call can be accessed live over the phone by dialing 1-855-327-6838 (domestic) or +1-604-235-2082 (international). A telephonic replay will be available approximately two hours after the call by dialing 1-844-512-2921, or for international callers, +1-412-317-6671. The conference ID for the live call and pin number for the replay is 10015909. The replay will be available until
About
Headquartered in
Non-GAAP Financial Information
To supplement the Company’s financial results presented in accordance with
Non-GAAP financial measures are not defined under
The Company mitigates these limitations by reconciling the non-GAAP financial measures to the most comparable
For more information on this non-GAAP financial measure, please see the table captioned “Reconciliation of GAAP and Non-GAAP Results” set forth at the end of this press release.
Forward-Looking Statements
This press release contains certain forward-looking statements within the meaning of the federal securities laws. Forward-looking statements generally are accompanied by words such as “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” “should,” “would,” “plan,” “predict,” “potential,” “seem,” “seek,” “future,” “outlook,” and similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements include, but are not limited to, statements regarding Origin Materials’ business strategy, access to traditional financing sources, budget and timelines to complete Origin 1 and Origin 2, commercial and operating plans and product development plans. These statements are based on various assumptions, whether or not identified in this press release, and on the current expectations of the management of
Condensed Consolidated Balance Sheets |
|||||
|
|
|
|
|
|
(In thousands, except share and per share data) |
|
(Unaudited) |
|
|
2020 |
ASSETS |
|
|
|
|
|
Current assets |
|
|
|
|
|
Cash and cash equivalents |
$ |
470,312 |
|
$ |
1,309 |
Restricted cash |
|
565 |
|
|
565 |
Other receivables |
|
160 |
|
|
48 |
Grants receivable |
|
17 |
|
|
— |
Prepaid expenses and other current assets |
|
214 |
|
|
144 |
Total current assets |
|
471,268 |
|
|
2,066 |
Property, plant, and equipment, net |
|
48,854 |
|
|
45,104 |
Intangible assets, net |
|
242 |
|
|
258 |
Total assets |
$ |
520,364 |
|
$ |
47,428 |
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|||||
Current liabilities |
|
|
|
|
|
Accounts payable |
$ |
966 |
|
$ |
2,700 |
Accrued expenses |
|
861 |
|
|
593 |
Derivative liability |
|
— |
|
|
1,239 |
Stockholder convertible notes payable |
|
— |
|
|
3,232 |
Total current liabilities |
|
1,827 |
|
|
7,764 |
|
|
|
|
|
|
PPP Loan |
|
— |
|
|
906 |
Earnout liability |
|
157,585 |
|
|
— |
|
|
6,370 |
|
|
6,197 |
Redeemable convertible preferred stock warrants |
|
— |
|
|
19,233 |
Assumed common stock warrants liability |
|
69,180 |
|
|
— |
Stockholder note |
|
5,189 |
|
|
5,189 |
Related party other liabilities, long-term |
|
5,615 |
|
|
5,517 |
Other liabilities, long-term |
|
3,109 |
|
|
2,500 |
Total liabilities |
|
248,875 |
|
|
47,306 |
|
|
|
|
|
|
Commitments and contingencies (See Note 18) |
|
|
|
|
|
|
|
|
|
|
|
STOCKHOLDERS’ EQUITY |
|
|
|
|
|
Preferred stock, |
|
— |
|
|
— |
Common stock, |
|
13 |
|
|
6 |
Additional paid-in capital |
|
359,928 |
|
|
98,620 |
Accumulated deficit |
|
(89,928) |
|
|
(98,888) |
Accumulated other comprehensive income |
|
1,476 |
|
|
384 |
Total stockholders’ equity |
|
271,489 |
|
|
122 |
Total liabilities, redeemable convertible preferred stock and stockholders' deficit |
$ |
520,364 |
|
$ |
47,428 |
|
|
|
|
|
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (Unaudited) |
||||||||||||
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|
Three Months Ended |
|
Six Months Ended |
||||||||
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|
|
|
|
||||||||
(In thousands, except share and per share data) |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||
Operating Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
Research and development |
|
$ |
2,339 |
|
$ |
904 |
|
$ |
3,648 |
|
$ |
2,122 |
General and administrative |
|
|
4,219 |
|
|
703 |
|
|
8,167 |
|
|
1,302 |
Depreciation and amortization |
|
|
121 |
|
|
100 |
|
|
236 |
|
|
204 |
Total operating expenses and loss from operations |
|
|
6,679 |
|
|
1,707 |
|
|
12,051 |
|
|
3,628 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Other (income) expenses |
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net of capitalized interest |
|
|
2,560 |
|
|
50 |
|
|
2,839 |
|
|
113 |
Change in fair value of derivative liability |
|
|
1,035 |
|
|
(12) |
|
|
1,426 |
|
|
(15) |
Change in fair value of warrants liability |
|
|
(27,265) |
|
|
105 |
|
|
20,844 |
|
|
105 |
Change in fair value of earnout liability |
|
|
(45,497) |
|
|
— |
|
|
(45,497) |
|
|
— |
Other income, net |
|
|
(43) |
|
|
(157) |
|
|
(623) |
|
|
(168) |
Total other (income) expenses, net |
|
|
(69,210) |
|
|
(14) |
|
|
(21,011) |
|
|
35 |
Net income (loss) |
|
|
62,531 |
|
|
(1,693) |
|
|
8,960 |
|
|
(3,663) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income (loss) |
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency translation adjustment, net of tax |
|
|
626 |
|
|
5,803 |
|
|
1,092 |
|
|
2,603 |
Total comprehensive income (loss) |
|
|
63,157 |
|
|
4,110 |
|
|
10,052 |
|
|
(1,060) |
Net income (loss) per share, basic |
|
$ |
0.93 |
|
$ |
(0.03) |
|
$ |
0.14 |
|
$ |
(0.06) |
Net income (loss) per share, diluted |
|
$ |
0.63 |
|
$ |
(0.03) |
|
$ |
0.13 |
|
$ |
(0.06) |
Weighted-average common shares outstanding, basic |
|
|
67,548,052 |
|
|
62,545,293 |
|
|
65,098,310 |
|
|
62,544,604 |
Weighted-average common shares outstanding, diluted |
|
|
78,628,591 |
|
|
62,545,293 |
|
|
70,794,743 |
|
|
62,544,604 |
Consolidated Statements of Cash Flows (Unaudited) |
||||||||
|
|
Six Months Ended
|
|
|||||
(in thousands) |
|
2021 |
|
|
2020 |
|
|
|
Cash flows from operating activities |
|
|
|
|
|
|
|
|
Net income (loss) |
$ |
8,960 |
|
$ |
(3,663) |
|
|
|
Adjustments to reconcile net loss to net cash from operating activities: |
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
236 |
|
|
204 |
|
|
|
Stock-based compensation |
|
4,172 |
|
|
18 |
|
|
|
Amortization of debt issuance costs |
|
14 |
|
|
130 |
|
|
|
Accretion of debt discount |
|
2,211 |
|
|
40 |
|
|
|
Change in fair value of derivative liability |
|
1,426 |
|
|
(15) |
|
|
|
Change in fair value of warrants liability |
|
20,844 |
|
|
105 |
|
|
|
Change in fair value of earnout liability |
|
(45,497) |
|
|
— |
|
|
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
Other receivables |
|
(112) |
|
|
960 |
|
|
|
Grants receivable |
|
(17) |
|
|
4 |
|
|
|
Prepaid expenses and other current assets |
|
(29) |
|
|
86 |
|
|
|
Accounts payable |
|
(1,880) |
|
|
(536) |
|
|
|
Accrued expenses |
|
2,899 |
|
|
396 |
|
|
|
Related party payable |
|
98 |
|
|
— |
|
|
|
Net cash used in operating activities |
|
(6,675) |
|
|
(2,271) |
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities |
|
|
|
|
|
|
|
|
Purchases of property, plant, and equipment, net of grants |
|
(2,703) |
|
|
(1,267) |
|
|
|
Net cash used in investing activities |
|
(2,703) |
|
|
(1,267) |
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities |
|
|
|
|
|
|
|
|
Proceeds from notes payable, net of debt issuance costs |
|
11,707 |
|
|
906 |
|
|
|
Payment of short-term debt |
|
(906) |
|
|
— |
|
|
|
Proceeds from |
|
173 |
|
|
1,055 |
|
|
|
Issuance of common stock |
|
55 |
|
|
1 |
|
|
|
Business combination, net of issuance costs paid |
|
467,530 |
|
|
— |
|
|
|
Net cash provided by financing activities |
|
478,559 |
|
|
1,962 |
|
|
|
|
|
|
|
|
|
|
|
|
Effects of foreign exchange rate changes on the balance of cash and cash equivalents, and restricted cash held in foreign currencies |
|
(178) |
|
|
184 |
|
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in cash and cash equivalents, and restricted cash |
|
469,003 |
|
|
(1,392) |
|
|
|
Cash and cash equivalents, and restricted cash, beginning of the period |
|
1,874 |
|
|
3,612 |
|
|
|
Cash and cash equivalents, and restricted cash, end of the period |
$ |
470,877 |
|
$ |
2,220 |
|
|
|
Supplemental disclosure of cash flow information |
|
|
|
|
|
|
|
|
Conversion of stockholder convertible notes payable to common stock |
$ |
20,493 |
|
$ |
— |
|
|
|
Reclassification of redeemable convertible preferred stock warrants to common stock |
$ |
54,267 |
|
$ |
— |
|
|
|
Reclassification of contingently issued equity to liability |
$ |
209,380 |
|
$ |
— |
|
|
|
Net assets assumed from business combination |
$ |
83,330 |
|
$ |
— |
|
|
|
Debt discount related to derivative liability |
$ |
2,196 |
|
$ |
— |
|
|
|
Business combination transaction costs, accrued but not paid |
$ |
748 |
|
$ |
— |
|
|
|
Reconciliation of GAAP and Non-GAAP Results
We believe that the presentation of Adjusted Earnings before Interest, Taxes, Depreciation, and Amortization (Adjusted EBITDA) is appropriate to provide additional information to investors about our operating profitability adjusted for certain non-cash items, non-routine items that we do not expect to continue at the same level in the future, as well as other items that are not core to our operations. Further, we believe Adjusted EBITDA provides a meaningful measure of operating profitability because we use it for evaluating our business performance, making budgeting decisions, and comparing our performance against that of other peer companies using similar measures.
We define Adjusted EBITDA as net income or loss adjusted for (i) stock-based compensation expense, (ii) depreciation and amortization, (iii) interest expense, net of capitalized interest, (iv) change in fair value of derivative liability, (v) change in fair value of warrants liability, (vi) change in fair value of earnout liability, and (vii) other income, net.
Three Months Ended |
Six Months Ended |
||||||||||
2021 |
|
2020 |
|
2021 |
|
2020 |
|||||
Net Income (loss) |
|
|
|
|
|||||||
Stock based compensation |
3,545 |
9 |
4,172 |
18 |
|||||||
Depreciation and amortization |
121 |
100 |
236 |
204 |
|||||||
Interest expense, net of capitalized interest |
2,560 |
|
50 |
|
2,839 |
|
113 |
|
|||
Change in fair value of derivative liability |
1,035 |
(12) |
1,426 |
(15) |
|||||||
Change in fair value of warrants liability |
(27,265) |
105 |
20,844 |
105 |
|||||||
Change in fair value of earnout liability |
(45,497) |
- |
(45,497) |
- |
|||||||
Other Income, net |
(42) |
|
(157) |
|
(624) |
|
(168) |
|
|||
Adjusted EBITDA |
|
|
|
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20210812005838/en/
Investors:
ir@originmaterials.com
Media:
media@originmaterials.com
Source: