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Origin Materials(ORGN) - 2024 Q3 - Quarterly Results
ORGNOrigin Materials(ORGN)2024-11-14 21:02

Financial Performance - Origin Materials reported quarterly revenue of 8.2millionforQ32024,anincreasefrom8.2 million for Q3 2024, an increase from 7.1 million in the prior-year period[4]. - The net loss for Q3 2024 was 36.8million,comparedtoanetincomeof36.8 million, compared to a net income of 30.9 million in the prior-year period, largely due to non-cash gains in the previous year[9]. - Adjusted EBITDA loss for Q3 2024 was 12.0million,anincreasefrom12.0 million, an increase from 9.5 million in the prior-year period, primarily due to higher general and administrative expenses[11]. - Total revenues for the three months ended September 30, 2024, were 8,202,000,anincreasefrom8,202,000, an increase from 7,140,000 in the same period of 2023, representing a growth of approximately 14.9%[27]. - Product revenues increased to 8,202,000forthethreemonthsendedSeptember30,2024,comparedto8,202,000 for the three months ended September 30, 2024, compared to 6,358,000 in the prior year, reflecting a growth of about 29%[27]. - The company reported a net loss of 36,763,000forthethreemonthsendedSeptember30,2024,comparedtoanetincomeof36,763,000 for the three months ended September 30, 2024, compared to a net income of 30,931,000 in the same period of 2023[27]. - Net loss for the nine months ended September 30, 2024, was 70,175thousand,comparedtoanetincomeof70,175 thousand, compared to a net income of 34,236 thousand for the same period in 2023[28]. - Adjusted EBITDA for the nine months ended September 30, 2024, was (37,767)thousand,comparedto(37,767) thousand, compared to (30,870) thousand for the same period in 2023[29]. Cash and Assets - Cash, cash equivalents, and marketable securities totaled 113.4millionasofSeptember30,2024[7].−Totalcurrentassetsdecreasedto113.4 million as of September 30, 2024[7]. - Total current assets decreased to 141,393,000 as of September 30, 2024, down from 187,112,000attheendof2023,adeclineofapproximately24.4187,112,000 at the end of 2023, a decline of approximately 24.4%[26]. - The company’s cash and cash equivalents decreased to 56,396,000 as of September 30, 2024, down from 75,502,000attheendof2023,areductionofapproximately25.375,502,000 at the end of 2023, a reduction of approximately 25.3%[26]. - Cash and cash equivalents at the end of the period were 56,396 thousand, down from 66,106thousandattheendofSeptember30,2023[28].OperatingExpenses−Operatingexpensessurgedto66,106 thousand at the end of September 30, 2023[28]. Operating Expenses - Operating expenses surged to 32,466,000 for the three months ended September 30, 2024, compared to 12,946,000intheprioryear,markinganincreaseofapproximately15012,946,000 in the prior year, marking an increase of approximately 150%[27]. - Research and development expenses were 5,127,000 for the three months ended September 30, 2024, compared to 4,927,000inthesameperiodof2023,indicatingariseofabout44,927,000 in the same period of 2023, indicating a rise of about 4%[27]. - The company reported an impairment of assets amounting to 15,170,000 for the three months ended September 30, 2024[27]. - Impairment of assets recorded for the nine months ended September 30, 2024, amounted to 15,170thousand,withnoimpairmentreportedintheprioryear[29].FutureOutlook−Thecompanymaintainsits2024revenueguidanceof15,170 thousand, with no impairment reported in the prior year[29]. Future Outlook - The company maintains its 2024 revenue guidance of 25 million to 35millionandnetcashburnguidanceof35 million and net cash burn guidance of 55 million to 65million[13].−OriginplanstohaveeightormoreCapFormerSystemsoperationalbytheendof2025,whichisanticipatedtomeetthestrongmarketdemandforPETcaps[3].−Thecompanyisfocusingonitscapsandclosuresbusinesstoachieveprofitabilitywhileoperatingitsbiomassconversionplantonareducedscaletomanagecashburn[6].ProductDevelopment−Thecompanyachievedover9865 million[13]. - Origin plans to have eight or more CapFormer Systems operational by the end of 2025, which is anticipated to meet the strong market demand for PET caps[3]. - The company is focusing on its caps and closures business to achieve profitability while operating its biomass conversion plant on a reduced scale to manage cash burn[6]. Product Development - The company achieved over 98% manufacturing efficiency during the Factory Acceptance Test of its first CapFormer System, which is expected to enable positive EBITDA by the first half of 2026[2][3]. - Origin's PET caps are currently being tested by multiple prospective customers with a total cap consumption exceeding 100 billion caps per year[2]. - Origin's CapFormer System represents a breakthrough in recycling circularity and packaging performance within a ~65 billion market[16]. Market Activity - Net cash used in operating activities for the nine months ended September 30, 2024, was 45,123thousand,slightlyimprovedfrom45,123 thousand, slightly improved from 46,447 thousand in the prior year[28]. - Net cash provided by investing activities for the nine months ended September 30, 2024, was 19,458thousand,comparedto19,458 thousand, compared to 4,450 thousand in the same period of 2023[28]. - The company reported a realized loss on marketable securities of 359thousandfortheninemonthsendedSeptember30,2024,comparedtoagainof359 thousand for the nine months ended September 30, 2024, compared to a gain of (1,706) thousand in the prior year[28]. - The company recorded a change in fair value of common stock warrants liability of 2,913thousandfortheninemonthsendedSeptember30,2024,comparedtoalossof2,913 thousand for the nine months ended September 30, 2024, compared to a loss of (27,438) thousand in the same period of 2023[28].