Financial Results Announcement - The company announced its financial results for the fourth quarter and fiscal year ending February 27, 2025[7]. - A press release detailing the financial results was issued, which is attached as Exhibit 99.1[7]. - An investor presentation was scheduled for February 27, 2025, and is included as Exhibit 99.2[8]. Company Classification and Compliance - The company is listed on The Nasdaq Stock Market under the trading symbol PCT[5]. - The company has not elected to use the extended transition period for complying with new financial accounting standards[6]. - The company is classified as an emerging growth company[6]. Strategic Focus and Future Plans - The financial results include key metrics that will be elaborated in the investor presentation[8]. - The company is focused on enhancing its market position through strategic initiatives[8]. - The financial condition and operational results will be discussed in detail during the investor presentation[8]. - The company aims to provide insights into future growth strategies and market expansion plans[8].

Company Overview - PureCycle Technologies, headquartered in Orlando, FL, was founded in 2015 and specializes in plastics recycling [1] - The company has commercialized a technology that converts polypropylene (PP) waste, classified as number 5 plastic, into a sustainable product [1] Investment Perspective - The investment philosophy emphasizes the importance of compounding, dividend reinvesting, and patient investing through various market conditions to achieve wealth creation [1] - The approach combines steady investment in high-quality assets with opportunities in high-risk/high-reward sectors, underappreciated turnaround plays, and transformative technologies [1] - The company aims to invest in industries that contribute positively to the world [1]

Production Capacity and Facilities - PCT's Ironton Facility is expected to have a UPR resin capacity of approximately 107 million pounds per year when fully operational, with pellet production commencing later in 2023 [202]. - The Augusta Facility is projected to have a total UPR resin production capacity of approximately 1 billion pounds per year, with each purification line expected to produce about 130 million pounds annually [205]. - PCT has invested approximately $95.9 million for pre-construction engineering and long-lead equipment for the Augusta Facility, with a commitment to create 82 full-time jobs and invest at least $440 million by December 31, 2026 [206]. - The company plans to build Feed PreP facilities near feed sources to optimize supply chain economics, with operations commencing in Denver, Pennsylvania in October 2024 [213]. - Future expansion plans include a joint venture with Mitsui & Co. Ltd. in Japan and a potential new location in South Korea for production capabilities [220]. Financial Performance - PCT's revenue through the first nine months of 2024 has been immaterial, with no significant operational volumes or revenue generation yet achieved [221]. - Total operating costs for the three months ended September 30, 2024, were $31.298 million, a decrease of 1% from $31.603 million in the same period of 2023 [226]. - Research and development expenses for the nine months ended September 30, 2024, were $4.940 million, showing no significant change from $4.917 million in 2023 [226]. - Selling, general, and administrative expenses increased by 15% for the nine months ended September 30, 2024, totaling $44.883 million compared to $39.063 million in 2023 [226]. - Interest expense rose by 158% for the nine months ended September 30, 2024, amounting to $41.676 million, up from $16.183 million in 2023 [226]. - The net loss for the three months ended September 30, 2024, was $90.639 million, a significant increase from a net income of $8.530 million in the same period of 2023 [226]. Cash Flow and Financing - As of September 30, 2024, the company had $83.7 million in cash and cash equivalents, an increase from $73.4 million as of December 31, 2023 [238]. - The company entered into subscription agreements on September 11, 2024, raising approximately $90 million through a private placement of Series A Preferred Stock, Common Stock, and Series C Warrants [235]. - Net cash used in operating activities increased by $51.7 million to $112.985 million for the nine months ending September 30, 2024, compared to $61.330 million in the same period of 2023, representing an 84% increase [248]. - Cash provided by investing activities increased by $69.9 million, with capital expenditure payments decreasing by $108.7 million for the nine months ending September 30, 2024 [250]. - Net cash used in financing activities increased by $383.7 million, primarily due to $253.2 million paid to purchase outstanding Revenue Bonds and a decrease of $225.2 million in proceeds from debt [251]. - Cash and cash equivalents at the end of the period decreased to $93.653 million from $384.139 million, a decline of 76% [248]. - Higher interest payments on debt amounted to $31.1 million, including $17.7 million for green convertible notes and $5.9 million for Revenue Bonds [249]. - Cash payments related to operating expenses increased by $22.1 million, driven by higher operational site costs and legal fees [249]. - As of September 30, 2024, there were $117.6 million of outstanding Revenue Bonds that the company intends to re-market [257]. - The company renewed a surety bond increasing the amount from $25.0 million to $45.9 million, later decreased to $8.1 million [273]. - The Revolving Credit Facility was increased from $150.0 million to $200.0 million on March 1, 2024 [266]. - The company entered into a $40.0 million term loan facility on May 8, 2023, maturing on December 31, 2025 [269]. Operational Challenges - The company has experienced intermittent mechanical challenges during the commissioning process, impacting the ability to produce consistent, high-quality UPR resin [204]. - The company is currently addressing mechanical challenges at the Ironton Facility to improve production consistency and volume [240]. - The company has not yet reached significant continuous operational volumes, focusing on customer sampling and qualifications to drive future sales [239]. Market and Regulatory Developments - PCT's "Feedstock+" pricing model effectively passes on the cost of feedstock and reduces operating margin volatility, linking feedstock prices to market indices [211]. - The FDA has granted PCT a Letter of No Objection for its UPR resin, allowing it to be used in contact with all food types under specified conditions, expanding its market potential [217]. - PCT is pursuing various structures for project financing for the Augusta Facility due to challenging market conditions, which may affect its business and financial condition [210]. Future Capital Requirements - Future capital requirements will depend on various factors, including the construction schedule of the Augusta Facility and the need for additional financing [245].

Group 1 - The conference call is focused on PureCycle Technologies' corporate developments for Q3 2024 [4] - Key participants in the call include the CEO, CFO, and Director of Communications [3] - The presentation is available on the company's investor website [4] Group 2 - The call includes forward-looking statements based on management's beliefs and current information [4] - The company acknowledges that statements are subject to known and unknown risks and uncertainties [5]

Financial Data and Key Metrics Changes - The third quarter was the strongest production quarter ever, with production growing more than 200% quarter-over-quarter [14][25] - Operating cash expenses totaled $23.5 million for Q3, down from nearly $35 million in the previous quarter [42][92] - The company raised over $105 million in net proceeds from capital raising efforts, supporting ongoing operations and growth [13] Business Line Data and Key Metrics Changes - The compounding strategy is operational, producing approximately $400,000 per week of sellable product [11] - The company achieved significant advancements in feedstock operations, including the startup of the Denver, Pennsylvania plastic sort facility, which has a nameplate capacity of approximately 22,000 pounds per hour [19][20] - The PP concentration has increased from less than 85% to 95% and is expected to reach 97% in Q4, improving plant yield and efficiency [22] Market Data and Key Metrics Changes - Global polypropylene demand exceeds 187 billion pounds and is expected to grow at 3% to 4% per year, with demand for recycled products also increasing due to brand commitments [30][31] - The demand for recycled material is projected to grow to approximately 60 billion pounds by 2030 [31] Company Strategy and Development Direction - The company is focused on scaling commercial aspects of the business, with ongoing trials for compounded and PureCycle stand-alone pellets [12][41] - The strategy includes proving product capabilities across multiple applications, including fiber, film, injection molding, and automotive [34][41] - The company aims to build a strong commercial foundation for future projects, with revenue expected to ramp up significantly in 2025 [41] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving nameplate capacity targets over time and emphasized the importance of establishing a commercial lane [10][46] - Positive initial commercial feedback has been received, indicating strong margins and attractive economics for the business [25] - The future outlook is bright, with significant interest from large companies recognizing the need for sustainable solutions [42] Other Important Information - The company is pursuing financing for additional capacity in Augusta and Antwerp [13] - The Denver sort facility is expected to lower feedstock costs and build stability into operations [20] Q&A Session Summary Question: How are the production milestones looking in early Q4? - Management expressed high confidence in their ability to reproduce results and ramp up production to meet commercial demand [45][46] Question: Should we expect meaningful revenue levels in 2025? - Management indicated that while specific revenue projections for 2025 were not provided, there are solid signs for commercial progress [47][51] Question: What is the status of the production line in Ohio? - Management reported that the Ironton facility is in a great place, with improvements in CP2 removal and higher quality feed [78][80] Question: What is the expected timeline for the Augusta facility? - Management indicated a timeline of six to ten quarters for the Augusta facility, with a consistent message of a two-line operation [85][91]

Third Quarter 2024 Corporate Update November 7, 2024 Confidential Information. Do Not Distribute. 11 Confidential Information. Do Not Distribute. TM Forward-Looking Statements This press release contains forward-looking statements, including statements about the continued expansion of PureCycle's business plan, the expected time of commercial sales, the commercialization of Ironton operations, the expected increase in production of the Ironton operations, the planned compounding operations, the sourcing of ...

Financial Results - The company issued a press release on November 7, 2024, detailing its financial results and operational updates[4] - The presentation to investors included key financial metrics and strategic initiatives for future growth[5] Stock Information - The company is listed on The Nasdaq Stock Market under the symbol PCT for common stock[2]

Group 1: Market Sentiment and Short Interest - Understanding bearish sentiment around stocks can be enhanced by analyzing short interest, which indicates how much investors are betting against a stock [1] - Stocks with high short interest that are trading near their 52-week highs suggest that short sellers have not yet profited significantly, indicating potential for future gains if the stock price declines [2] - High short interest combined with a stock price near its 52-week high may signal overvaluation, making long positions risky [3] Group 2: Company Analysis - PureCycle Technologies - PureCycle Technologies (PCT) has seen a stock price increase of nearly 250% in 2024, currently trading just 10% below its 52-week high, with a high short interest of 27% [3][4] - The company focuses on recycling polypropylene (PP), a plastic that is not effectively recycled by traditional methods, aiming to sell recycled PP to manufacturers [4] - Despite its eco-friendly technology, PureCycle is valued at over $2 billion with essentially $0 in revenue, raising concerns about its profitability compared to established firms in the recycling industry [5][6] Group 3: Company Analysis - NuScale Power - NuScale Power (SMR) has experienced a stock price increase of over 550% in 2024, trading just 1% below its 52-week high, with a high short interest of 23% [7] - The company is developing small modular reactors (SMRs) to meet increasing electricity demand, particularly from data centers that prefer nuclear energy for its reliability [8] - Despite the theoretical appeal of SMRs, none are currently operational in the US, raising questions about their commercial viability [8] Group 4: Company Analysis - Trupanion - Trupanion (TRUP), a pet insurance provider, has seen a stock price increase of 79% in 2024, with a short interest of 25% and trading just 2% below its 52-week high [9] - The company has hundreds of millions in quarterly revenue and is nearly profitable on a non-adjusted basis, which is a positive sign compared to its peers [10][11] - However, Trupanion is one of only five U.S.-traded insurance stocks worth over $1 billion that reported a net loss in the last 12 months, raising concerns about its profitability in a growing industry [11]

Core Viewpoint - PureCycle Technologies is experiencing significant stock price growth, up over 250% this year, attracting investor attention and analyst ratings, including an overweight rating from Cantor Fitzgerald with a price target of $14 [1][5] Company Overview - PureCycle Technologies focuses on recycling polypropylene (PP) into ultra-pure recycled (UPR) resin, which can be used to create new plastic products [1] - The company aims to address the low recycling rate of PP, which is approximately 3%, compared to 15% for polyethylene terephthalate (PET) [2] Recycling Technology - PureCycle employs a solvent dissolution method for recycling, which is more effective for PP than traditional mechanical recycling, allowing for the removal of impurities and maintaining material integrity [3][4] - The solvent dissolution process is energy-efficient but remains costly [4] Financial Situation - Currently, PureCycle has no revenue and is working to scale its processing operations to achieve a target of 107 million pounds of annual production at its Ironton facility [5] - The company reported a significant cash burn, averaging -$38 million from operations over the last three quarters, and plans to raise $90 million through equity issuance [6] Market Challenges - Despite its innovative approach, the company faces challenges in the recycling industry, as evidenced by the struggles of larger competitors like Indorama Ventures to maintain profitability [7] - Analysts currently hold a "Hold" rating on PureCycle, indicating caution in the investment outlook [8]

PureCycle Technologies, Inc. (NASDAQ:PCT) Q2 2024 Earnings Conference Call August 8, 2024 10:00 AM ET Company Participants Christian Bruey - Director of Corporate Communications Dustin Olson - CEO Jaime Vasquez - CFO Conference Call Participants Hassan Ahmed - Alembic Global Advisors Eric Stine - Craig-Hallum Capital Markets Brian Butler - Stifel Thomas Boyes - TD Cowen Gerard Sweeney - ROTH Capital Operator Good day, and thank you for standing by. Welcome to the PureCycle Technologies Second Quarter 2024 C ...