Danimer Scientific Reports Second Quarter 2024 Financial Results
Intellectia.AI Updated: 1970-01-01
Danimer Scientific Reports Second Quarter 2024 Financial Results
Danimer Scientific, Inc. (NYSE: DNMR) ("Danimer" or the "Company"), a leading next-generation bioplastics company, announced financial results for its second quarter ended June 30, 2024.
Key Financial Metrics
| Metric | Q2 2024 | Q2 2023 | YoY Change | Consensus Estimate |
|---|---|---|---|---|
| Total Revenue | $7.6 million | $12.9 million | -41.1% | $9.27 million |
| Gross Profit | $(6.9) million | $(6.6) million | ||
| Adjusted Gross Profit | $(1.8) million | $(1.6) million | ||
| Adjusted EBITDA | $(9.9) million | $(10.2) million |
The company's financial performance was impacted significantly year-over-year due to the reapportionment of Starbucks' straw business and the loss of orders related to the conflict in Ukraine. This caused a dramatic decline in revenue and gross profit figures.
Segment Revenue Performance
| Segment | Q2 2024 | Q2 2023 | YoY Change |
|---|---|---|---|
| PHA Revenue | $5.9 million | $8.4 million | -29.8% |
| PLA Revenue | $1.4 million | $3.8 million | -63.2% |
PHA revenue saw a decline partly due to the Starbucks business reassignment, while PLA revenue was heavily impacted by the geopolitical situation in Ukraine.
Operational Highlights
| Operational Metric | Current |
|---|---|
| Total Debt Outstanding | $393.9 million |
| Borrowed Against ABL | $5.2 million |
| Convertible Notes Retired | $6.1 million |
Comments from Company Officers
Stephen E. Croskrey, Chief Executive Officer of Danimer, noted that: - The impact of Starbucks' business reapportionment is expected to lessen in Q3. - The 20-million-pound cutlery award is progressing, with four commercial orders already received. - The pro-rata warrant dividend transaction has opened new avenues for balance sheet deleveraging and strengthening capital structure.
Dividends or Share Repurchase Program
A pro-rata warrant dividend transaction was recently completed, providing potential for deleveraging the balance sheet.
Forward Guidance
The company has updated its annual guidance as follows: - Full-year Adjusted EBITDA is expected to be between $(30) million to $(35) million. - Full-year capital expenditures remain in the range of $8 million to $10 million. - Year-end liquidity will be in the range of $15 million to $20 million. - Forecasted that annualized PHA revenues will more than triple by the end of Q2 2025.
Stock Price Movement
Following the earnings release, Danimer's stock price experienced a notable increase of 8.94%.
Danimer's second quarter results display a challenging but stabilizing scenario amidst operational headwinds, with forward-looking measures indicating a pathway towards long-term growth and balance sheet improvement.
