NEW YORK, Nov. 20, 2024 /PRNewswire/ -- TerraNova Capital Equities, inc. (TerraNova), a leading financial advisory firm, is pleased to announce that its Structure Finance Group acted as sole advisor on three recent transactions:TerraNova Structured Finance Group acted as the sole advisor to Danimer Scientific, Inc. (NYSE: DNMR) on a $20 Million revolving credit facility.TerraNova is pleased to announce its role as the exclusive advisor to Danimer Scientific in securing a strategic ABL agreement with Mountai ...

Danimer Scientific, Inc. (NYSE:DNMR) Q3 2024 Earnings Conference Call November 19, 2024 10:00 AM ET Company Participants Rich Altice - Interim CEO Mike Hajost - CFO Conference Call Participants Unidentified Company Representative Thank you, operator. Good morning, everyone, and thank you for joining us today on Danimer Scientific's 2024 Third Quarter Earnings Call. On today's call, Interim Chief Executive Officer, Rich Altice; and Chief Financial Officer, Mike Hajost will provide information about our third ...

Danimer Scientific, Inc. (DNMR) came out with a quarterly loss of $0.24 per share versus the Zacks Consensus Estimate of a loss of $8. This compares to loss of $15.60 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 97%. A quarter ago, it was expected that this company would post a loss of $9.60 per share when it actually produced a loss of $7.20, delivering a surprise of 25%.Over the last four quarters, the company has surpass ...

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) Unaudited financial statements reveal significant declines in cash and equity, ongoing net losses, and substantial doubt about going concern [Condensed Consolidated Financial Statements](index=3&type=section&id=Condensed%20Consolidated%20Financial%20Statements) The financial statements show a deteriorating position with reduced cash, declining revenues, and increased cash used in operations Condensed Consolidated Balance Sheet Data (in thousands) | Account | Sep 30, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $22,187 | $59,170 | | Total current assets | $69,872 | $108,038 | | Total assets | $643,770 | $698,131 | | Total current liabilities | $21,332 | $15,723 | | Total liabilities | $432,177 | $420,111 | | Total stockholders' equity | $211,593 | $278,020 | Condensed Consolidated Statements of Operations (in thousands, except per share data) | Metric | Q3 2024 | Q3 2023 | Nine Months 2024 | Nine Months 2023 | | :--- | :--- | :--- | :--- | :--- | | Total revenue | $8,630 | $10,948 | $26,482 | $35,739 | | Loss from operations | $(18,821) | $(31,239) | $(56,672) | $(94,587) | | Net loss | $(21,839) | $(40,159) | $(71,763) | $(116,039) | | Basic and diluted net loss per share | $(0.18) | $(0.39) | $(0.63) | $(1.14) | Condensed Consolidated Statements of Cash Flows (in thousands) | Cash Flow Activity | Nine Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2023 | | :--- | :--- | :--- | | Net cash used in operating activities | $(46,460) | $(31,331) | | Net cash used in investing activities | $(6,319) | $(25,704) | | Net cash provided by financing activities | $15,578 | $84,488 | | Net (decrease) increase in cash | $(37,201) | $27,453 | [Notes to Condensed Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes reveal substantial doubt about going concern, details on debt, business suspension, and a post-period reverse stock split - The company has concluded that **substantial doubt** exists regarding its ability to continue as a going concern for at least one year from the filing date due to a history of negative cash flows and a current lack of financial resources[21](index=21&type=chunk) - In July 2024, the company temporarily **suspended its Danimer Catalytic Technologies business** to conserve capital, following a reduction in force and pending CEO retirement[20](index=20&type=chunk) - Construction of the new Greenfield Facility in Georgia **remains paused**, requiring additional financing for completion, with existing investment at risk of impairment[25](index=25&type=chunk) - As of September 30, 2024, the company retired **$8.1 million** of Convertible Notes by allowing holders to exercise Dividend Warrants, resulting in a **$6.8 million gain** on debt extinguishment[35](index=35&type=chunk)[39](index=39&type=chunk) - A major class action lawsuit against the company was **dismissed**, and the dismissal was **affirmed on appeal** in September 2024, leading to voluntary dismissal of three related shareholder derivative lawsuits[84](index=84&type=chunk) - On November 12, 2024, the company effected a **1-for-40 reverse stock split**, which is not reflected in the report's share and per-share data[85](index=85&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=23&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses deteriorating financial condition, reiterating going concern doubt, with declining revenue and constrained liquidity [Results of Operations](index=27&type=section&id=Results%20of%20Operations) Q3 2024 revenue declined 21% due to lower PHA sales, while net loss improved primarily from reduced stock-based compensation Q3 2024 vs Q3 2023 Performance (in thousands) | Metric | Q3 2024 | Q3 2023 | Change | | :--- | :--- | :--- | :--- | | Total Revenue | $8,630 | $10,948 | $(2,318) | | PHA-based Product Sales | $6,600 | $8,400 | $(1,800) | | Gross Profit | $(7,315) | $(7,737) | $422 | | Net Loss | $(21,839) | $(40,159) | $18,320 | Nine Months 2024 vs 2023 Performance (in thousands) | Metric | Nine Months 2024 | Nine Months 2023 | Change | | :--- | :--- | :--- | :--- | | Total Revenue | $26,482 | $35,739 | $(9,257) | | PHA-based Product Sales | $20,700 | $21,900 | $(1,200) | | Gross Profit | $(20,529) | $(20,588) | $59 | | Net Loss | $(71,763) | $(116,039) | $44,276 | - The **improvement in net loss** for both periods was primarily driven by **significant decreases in selling, general, and administrative expenses**, related to **lower stock-based compensation** for executive awards fully amortized in December 2023[108](index=108&type=chunk)[112](index=112&type=chunk) [Liquidity and Capital Resources](index=29&type=section&id=Liquidity%20and%20Capital%20Resources) Liquidity is critical, with insufficient cash to fund operations, raising going concern doubt and risking debt default upon 10-K filing - The company forecasts it will likely **not have adequate liquidity** to fund operations and meet financial obligations in the near term, and **substantial doubt** exists about its ability to continue as a going concern[119](index=119&type=chunk) - A filing of an Annual Report on Form 10-K containing a 'going concern' disclosure would constitute an **event of default** under the Senior Secured Term Loan, which could cause **cross-default and acceleration** of substantially all of the company's debt[119](index=119&type=chunk)[123](index=123&type=chunk) - The company is **analyzing transactions to reduce debt and/or provide liquidity**, including restructuring, additional financing, or asset sales, but these may not be successful or favorable to shareholders[119](index=119&type=chunk) - **Cash used in operating activities increased to $46.5 million** for the nine months ended September 30, 2024, from $31.3 million in the prior year period, primarily due to working capital changes and higher interest payments[125](index=125&type=chunk)[126](index=126&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=32&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is commodity price volatility, particularly for raw materials like canola oil, impacting margins - The company is exposed to **commodity price risk**, especially for raw materials like **canola oil**, whose prices can be volatile due to factors like the war in Ukraine[130](index=130&type=chunk)[131](index=131&type=chunk) [Controls and Procedures](index=32&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective, with no material changes to internal controls during the quarter - Management concluded that as of the end of the period, the company's disclosure controls and procedures were **effective**[133](index=133&type=chunk) - There were **no changes in internal control** over financial reporting during the quarter that have materially affected, or are reasonably likely to materially affect, internal controls[135](index=135&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=33&type=section&id=Item%201.%20Legal%20Proceedings) Positive legal developments include dismissal of a class action lawsuit and subsequent voluntary dismissal of derivative suits - A consolidated class action lawsuit was **dismissed with prejudice**, and the dismissal was **affirmed on appeal** on September 27, 2024[84](index=84&type=chunk) - Three shareholder derivative lawsuits were **voluntarily dismissed** by the plaintiffs following the dismissal of the class action suit[84](index=84&type=chunk) [Risk Factors](index=33&type=section&id=Item%201A.%20Risk%20Factors) New risk factors emphasize going concern doubt, potential debt servicing issues, and NYSE delisting risk triggering cross-defaults - A new risk factor explicitly states that the company's negative cash flows and lack of financial resources raise **substantial doubt about its ability to continue as a going concern**[138](index=138&type=chunk) - The company may **not be able to access needed liquidity** to service its debt, which could **force restructuring, bankruptcy, or liquidation** of assets at values below their carrying amounts[140](index=140&type=chunk) - There is a **risk of being delisted from the NYSE** for failing to meet continued listing standards, which would constitute a 'Fundamental Change' under Convertible Notes, potentially **triggering cross-defaults on other debt**[140](index=140&type=chunk)[142](index=142&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=35&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities during the period [Other Information](index=35&type=section&id=Item%205.%20Other%20Information) No director or officer adopted or terminated a Rule 10b5-1 trading arrangement during the third quarter of 2024 - **No director or officer adopted or terminated** a Rule 10b5-1 trading arrangement during the quarter[142](index=142&type=chunk) [Exhibits](index=35&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the quarterly report, including corporate documents, officer certifications, and XBRL data files

Danimer Scientific Announces Third Quarter 2024 Results --Additional Resin Orders and Deliveries Continue to Support 20-Million Pound Cutlery Award –- -- 100% Compostable Skittles® Bag Made with Nodax® PHA Featured at NFL Game -- BAINBRIDGE, GA – November 19, 2024 – Danimer Scientific, Inc. (NYSE: DNMR) ("Danimer" or the "Company"), a leading next generation bioplastics company focused on the development and production of biodegradable materials, announced today financial results for its third quarter ended ...

Investors might want to bet on Danimer Scientific, Inc. (DNMR) , as it has been recently upgraded to a Zacks Rank #2 (Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change. A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years. The p ...

Financial Data and Key Metrics - Total revenue for Q2 2024 was $7.6 million, down from $12.9 million in the prior year quarter [19] - PHA-based resin sales decreased by 30% or $2.5 million to $5.9 million in Q2 2024, primarily due to Starbucks reallocation of straw resin business [19] - PLA-based resin sales decreased by $2.4 million to $1.4 million compared to the prior year, impacted by the Ukraine conflict [19] - Adjusted EBITDA loss improved to $9.9 million in Q2 2024 from $10.2 million in Q2 2023 [21] - Unrestricted cash and cash equivalents stood at $40.3 million at the end of Q2 2024, down from $59.2 million at the end of 2023 [21] Business Line Data and Key Metrics - PHA revenues accounted for 81% of product revenue in Q2 2024, up from 69% in the prior year quarter [12] - The company expects PHA revenues to triple by the end of Q2 2025 based on existing customer demand [23] - The company is working with 6 of the top 8 QSRs in terms of annual volume of single-use plastic products [9] Market Data and Key Metrics - The company is advancing the commercialization of compostable cups using PHA resins, representing a market opportunity of over 250 million pounds of petroleum-based plastics annually [14] - A large QSR is trialing Nodax-based biodegradable straws in several states, with a larger commercial launch expected in late 2024 or early 2025 [13] Company Strategy and Industry Competition - The company is the only producer of PHA at commercial scale with independently validated biodegradable resins [7] - The company is focused on scaling up its business, with plans to achieve full capacity utilization of its Kentucky facility and explore tolling partnerships and licensing agreements [8] - The company expects to achieve positive EBITDA in Q2 2025 and exit 2025 at a run rate approaching $15 million of EBITDA annually [8] Management Commentary on Operating Environment and Future Outlook - The company faced challenges such as the COVID-19 pandemic, the Ukraine conflict, hyperinflation, and lawsuits but remains intact and continues to grow [7] - The company is confident in achieving increased revenues during 2024 and beyond, driven by commercialization efforts and R&D trials [24] - The company expects to manage liquidity and reduce costs, with $7 million in annualized savings implemented in Q2 2024 [15] Other Important Information - The company launched a warrant dividend program, resulting in the retirement of $6.1 million in debt [17][24] - The company is in the final stages of the DOE loans program [18] - The company expects to end 2024 with liquidity in the range of $15 million to $20 million [23] Q&A Session Summary Question: Sources of reduced EBITDA guidance - The reduction in EBITDA guidance is primarily due to the Starbucks inventory adjustment [26] Question: Savings from halting catalytic operations - Halting catalytic operations saves the company $1.5 million annually, and the operations can be restarted if needed [27] Question: Tolling and licensing arrangements - The company is exploring tolling and licensing arrangements to bridge potential capacity gaps between Kentucky and future greenfield projects [28][29][30] Question: Update on DOE loan timing - The company is focused on finalizing the DOE loan process before the end of the year [32]

Danimer Scientific, Inc. (DNMR) came out with a quarterly loss of $0.18 per share versus the Zacks Consensus Estimate of a loss of $0.24. This compares to loss of $0.38 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 25%. A quarter ago, it was expected that this company would post a loss of $0.30 per share when it actually produced a loss of $0.26, delivering a surprise of 13.33%. Over the last four quarters, the company has ...

Financial Performance - Total revenue for Q2 2024 was $7,628,000, a decrease of 40.5% compared to $12,865,000 in Q2 2023[6] - Net loss for Q2 2024 was $22,661,000, compared to a net loss of $39,241,000 in Q2 2023, representing a 42.0% improvement[6] - Gross profit for Q2 2024 was a loss of $6.903 million, with a gross profit percentage of -90.5% compared to -51.1% in Q2 2023[89] - Operating expenses for Q2 2024 totaled $12.426 million, down from $24.553 million in Q2 2023, reflecting a reduction of $12.127 million[89] - Total revenue for 2024 was $17,852,000, a decrease of $6,939,000 (approximately 27.9%) compared to $24,791,000 in 2023[96] - Gross profit for 2024 was $(13,214,000), with a gross profit percentage of -74.0%, down from -51.8% in 2023[96] - Operating expenses decreased by $25,860,000 (approximately 51.2%) to $24,637,000 in 2024 from $50,497,000 in 2023[96] - Net loss for 2024 was $(49,924,000), an improvement of $25,956,000 compared to $(75,880,000) in 2023[96] Assets and Liabilities - Total current assets decreased to $86,874,000 as of June 30, 2024, down from $108,038,000 at December 31, 2023, a decline of 19.6%[5] - Total liabilities increased to $432,512,000 as of June 30, 2024, compared to $420,111,000 at December 31, 2023, an increase of 2.0%[5] - Total assets decreased to $666,540,000 as of June 30, 2024, down from $698,131,000 at December 31, 2023, a decline of 4.5%[5] - Total long-term debt increased from $381,436,000 as of December 31, 2023, to $386,910,000 as of June 30, 2024, an increase of 1.2%[31] Cash Flow and Liquidity - Cash and cash equivalents decreased to $40,254,000 as of June 30, 2024, down from $59,170,000 at December 31, 2023, a decline of 31.9%[5] - Cash used in operating activities increased to $31.96 million in Q2 2024 from $21.15 million in Q2 2023, indicating a 51.5% rise in cash outflow[9] - The company has $40.3 million in unrestricted cash resources and $27.4 million in working capital as of June 30, 2024, sufficient to meet liquidity requirements for over one year[13] - Net cash provided by financing activities was $16,648,000 in 2024, a decrease from $85,029,000 in 2023[110] Revenue Breakdown - Domestic revenue for the three months ended June 30, 2024, was $7.403 million, down from $12.520 million in the same period of 2023[53] - PHA-based product sales in Q2 2024 were $5.9 million, a decrease of $2.5 million or 30% year-over-year, representing 81% of product revenues[89] - PLA-based product sales in Q2 2024 were $1.4 million, down $2.4 million compared to the prior year quarter, impacted by the Ukraine conflict[89] - PHA-based product sales for the six-month period ended June 30, 2024, increased by 4.9% to $14.1 million, representing 82% of product revenues[95] - PLA-based product sales for the six-month period ended June 30, 2024, decreased by $6.7 million to $3.1 million, also affected by the Ukraine conflict[95] Strategic Actions and Future Outlook - The company temporarily suspended its Danimer Catalytic Technologies business to conserve capital, with expectations of additional charges in Q3 2024[12] - The company anticipates spending between $140 million to $220 million on a commercial Rinnovo plant, with a total production capacity expected to reach approximately 330 million pounds[88] - The Greenfield Facility in Bainbridge, Georgia, has a planned annual production capacity of approximately 125 million pounds, with total estimated costs ranging from $515 million to $665 million[88] - The company is focusing on expanding its PHA-based resin products in response to increasing demand for non-petroleum-based plastics[14] - The company anticipates that ramping up PHA sales and production will take time, impacting short-term revenue generation[14] Stock and Legal Matters - The company was notified by NYSE Regulation on May 21, 2024, that it was not in compliance with the NYSE's continued listing criteria due to an average closing price of its Common Stock being less than $1.00 over a 30-day period[118] - The company is subject to a 180-day cure period to address the non-compliance, which may require a reverse-stock split pending stockholder approval[118] - The company faced multiple class action lawsuits related to alleged violations of federal securities laws, with a court granting a motion to dismiss on September 30, 2023[77] - The company is subject to various legal proceedings, with no losses accrued as of June 30, 2024, due to the inability to estimate the likelihood or amount of loss[78]

Danimer Scientific Announces Second Quarter 2024 Results --Additional Resin Orders to Support 20-Million Pound Cutlery Award –- -- Company Forecasting Annualized PHA Revenues to More Than Triple by End of Q2 2025 -- -- Pro-Rata Warrant Dividend Transaction Provides Balance Sheet Deleveraging Opportunity -- BAINBRIDGE, GA – August 8, 2024 – Danimer Scientific, Inc. (NYSE: DNMR) ("Danimer" or the "Company"), a leading next generation bioplastics company focused on the development and production of biodegradab ...