assets (239) 1,816
Contract assets (759) (1,244)
Other assets 76 (119)
Accounts payable (638) (2,061)
Accrued liabilities 1,588 1,893
Other long-term liabilities 217 706
Unearned revenue and contract
liabilities (85) 438
------- --------
Net cash used in operating
activities (46,460) (31,331)
------- --------
Cash flows from investing activities:
Purchases of property, plant and
equipment and intangible assets (7,486) (25,722)
Proceeds from disposals of property,
plant and equipment 1,167 18
------- --------
Net cash used in investing
activities (6,319) (25,704)
------- --------
Cash flows from financing activities:
Proceeds from issuance of warrants, net
of issuance costs 8,888 -
Proceeds from issuance of common stock,
net of issuance costs 4,517 -
Proceeds from long-term debt 20,716 130,000
Principal payments on long-term debt (17,594) (12,437)
Cash paid for debt issuance costs (1,097) (33,296)
Proceeds from employee stock purchase
plan 176 282
Employee taxes related to stock-based
compensation (28) (61)
------- --------
Net cash provided by financing
activities 15,578 84,488
------- --------
Net (decrease) increase in cash
and cash equivalents and
restricted cash (37,201) 27,453
------- --------
Cash and cash equivalents and restricted
cash-beginning of period 73,504 64,401
------- --------
Cash and cash equivalents and restricted
cash-end of period $ 36,303 $ 91,854
======= ========
Non-GAAP Financial Measures
This press release includes the non-GAAP financial measures "Adjusted EBITDA", "Adjusted gross profit" and "Adjusted gross margin". Danimer management views these metrics as a useful way to look at the performance of its operations between periods and to exclude decisions on capital investment and financing that might otherwise impact the review of profitability of the business based on present market conditions.
Adjusted EBITDA is defined as net income or loss plus net interest expense, income taxes, depreciation and amortization, as adjusted to add back certain charges or gains that Danimer may record each period such as remeasurement of warrants, stock-based compensation expense, as well as non-recurring charges such as (i) asset disposal gains or losses as well as other significant gains or losses such as debt extinguishments and impairment of goodwill; (ii) legal settlements; or (iii) other discrete non-recurring items. Danimer believes these items are not considered an indicator of ongoing performance. Adjusted EBITDA is not a measure of performance defined in accordance with GAAP. The measure is used as a supplement to GAAP results in evaluating certain aspects of Danimer's business, as described below.
Adjusted gross profit is defined as gross profit plus depreciation, stock-based compensation and other nonrecurring items.
Adjusted gross margin is defined as adjusted gross profit divided by total revenue.
Danimer believes that each of Adjusted EBITDA, Adjusted gross profit and Adjusted gross margin is useful to investors in evaluating the Company's performance because each measure considers the performance of the Company's operations, excluding decisions made with respect to capital investment, financing and other non-recurring charges as outlined in the preceding paragraph. Danimer believes these non-GAAP metrics offer additional financial information that, when coupled with the GAAP results and the reconciliation to GAAP results, provides a more complete understanding of its results of operations and the factors and trends affecting its business.
Adjusted EBITDA, Adjusted gross profit and Adjusted gross margin should not be considered as an alternative to net income or loss as an indicator of its performance or as alternatives to any other measure prescribed by GAAP as there are limitations to using such non-GAAP measures. Although Danimer believes that Adjusted EBITDA, Adjusted gross profit and Adjusted gross margin may enhance an evaluation of its operating performance based on recent revenue generation and product/overhead cost control because it excludes the impact of prior decisions made about capital investment, financing and other expenses, (i) other companies in Danimer's industry may define Adjusted EBITDA, Adjusted gross profit and Adjusted gross margin differently than Danimer does and, as a result, they may not be comparable to similarly titled measures used by other companies in its industry, and (ii) Adjusted EBITDA, Adjusted gross profit and Adjusted gross margin exclude certain financial information that some may consider important in evaluating Danimer's performance.
Danimer compensates for these limitations by providing disclosure of the differences between Adjusted EBITDA, Adjusted gross profit and Adjusted gross margin and GAAP results, including providing a reconciliation to GAAP results, to enable investors to perform their own analysis of Danimer's operating results. Because GAAP financial measures on a forward-looking basis are not accessible, and reconciling information is not available without unreasonable effort, reconciliations to GAAP financial measures are not provided for forward-looking non-GAAP measures. For the same reasons, the Company is unable to address the probable significance of the unavailable information, which could be material to future results.
Danimer Scientific, Inc.
Reconciliation of Adjusted EBITDA to Net Loss (Unaudited)
Three Months Ended September 30,
----------------------------------------
2024 2023
---------------------- ----------------
(in thousands)
Net loss $ (21,839) $ (40,159)
Interest, net 9,631 8,584
Depreciation and
amortization 7,376 7,253
(Gain) loss on loan
extinguishment (6,821) -
Transaction and other
related 1,197 -
Stock-based compensation 744 14,324
Strategic reorganization
and related 522 382
Loss (gain) on
remeasurement of warrants 206 (132)
Litigation and other legal
related 101 28
Income taxes 2 468
---- ----------- --- ---------- ---
Adjusted EBITDA $ (8,881) $ (9,252)
---- ----------- ----------
Reconciliation of Adjusted Gross Profit to Gross Profit (Unaudited)
Three Months Ended September 30,
----------------------------------------
2024 2023
---------------------- ----------------
(in thousands)
Total revenue $ 8,630 $ 10,948
Cost of revenue 15,945 18,685
---- ----------- --- ---------- ---
Gross profit (7,315) (7,737)
Depreciation 5,049 5,086
Stock-based compensation 3 2
---- ----------- --- ---------- ---
Adjusted gross profit $ (2,263) $ (2,649)
==== =========== ==========
Adjusted gross margin (26.2%) (24.2%)
==== =========== ==========
View source version on businesswire.com: https://www.businesswire.com/news/home/20241119474813/en/
CONTACT: Investor Relations and Media
Blake Chamblee
Phone: 770-337-6570
ir@danimer.com
(END) Dow Jones Newswires
November 19, 2024 08:30 ET (13:30 GMT)
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