Aspen Aerogels(US:ASPN)2021-08-03 16:00Financial Performance - Revenue for the six months ended June 30, 2021, was $59.8 million, an increase of $6.7 million, or 13%, from $53.1 million for the same period in 2020[118]. - Net loss for the six months ended June 30, 2021, was $12.9 million, with a net loss per share of $0.46, compared to a net loss of $8.9 million and a net loss per share of $0.34 for the same period in 2020[118]. - Total revenue increased by $7.1 million, or 29%, to $31.7 million for the three months ended June 30, 2021, compared to $24.6 million in the same period in 2020[150]. - The net loss for the three months ended June 30, 2021, was $(6.67) million, compared to $(5.70) million for the same period in 2020[129]. - Total revenue increased by $6.7 million, or 13%, to $59.8 million for the six months ended June 30, 2021, primarily due to an increase in product revenue[171]. Product and Revenue Details - Product revenue accounted for 99% of total revenue, amounting to $31.49 million, while research services revenue was $180,000, representing 1%[150]. - Product shipments increased by 2,553 thousand square feet, or 35%, to 9,870 thousand square feet for the three months ended June 30, 2021, compared to 7,317 thousand square feet in the prior year[151]. - Product revenue increased by $7.0 million, or 28%, to $31.5 million for the three months ended June 30, 2021, driven by growth in the petrochemical and refinery markets, particularly in the United States[152]. - Product shipments increased by 2.6 million square feet, or 35%, to 9.9 million square feet for the three months ended June 30, 2021, contributing an additional $8.6 million to product revenue[153]. - Product revenue was nearly 100% of total revenue for the six months ended June 30, 2021, with research services revenue accounting for less than 1%[173]. Costs and Expenses - Total cost of revenue increased by $5.3 million, or 24%, to $27.1 million for the three months ended June 30, 2021, mainly due to a $2.5 million increase in material costs and a $2.8 million increase in manufacturing expenses[156]. - Gross profit increased by $1.7 million, or 61%, to $4.6 million for the three months ended June 30, 2021, with gross profit as a percentage of total revenue rising to 14%[159]. - Total cost of revenue for the six months ended June 30, 2021 increased by $7.0 million, or 16%, to $51.2 million, primarily due to increased product costs[171]. - Product cost of revenue increased by $7.0 million, or 16%, to $51.2 million for the six months ended June 30, 2021, driven by a $4.3 million increase in material costs and a $2.7 million increase in manufacturing expenses[174]. - Gross profit decreased by $0.3 million, or 3%, to $8.5 million for the six months ended June 30, 2021, with gross profit as a percentage of total revenue decreasing to 14% from 17% in the comparable period[177][178]. Research and Development - The company plans to hire additional personnel and incur capital expenditures to expand manufacturing capacity and enhance R&D resources for new products[104]. - Research and development expenses are anticipated to increase in both absolute dollars and as a percentage of revenue in 2021 as the company invests in new aerogel technologies[142]. - Research and development expenses increased by $0.7 million, or 16%, to $5.0 million for the six months ended June 30, 2021, maintaining 8% of total revenue[178]. Strategic Partnerships and Market Focus - The company is engaged in a strategic partnership with BASF, which includes a supply agreement with potential prepayments of up to $22.0 million[110]. - The company has entered into contracts with a major U.S. automotive OEM to supply thermal barriers for electric vehicle battery systems, with agreements extending to 2034[109]. - The company is actively developing PyroThin thermal barriers for lithium-ion batteries, aimed at enhancing safety and driving range for electric vehicles[103]. - The company projects growth in total revenue in 2021 due to increased demand in the petrochemical and refinery market and growth in the European building materials market[130]. - The company plans to increase investment in the electric vehicle market and aerogel technology, expecting a decrease in Adjusted EBITDA and an increase in net loss compared to 2020[131]. Cash and Financing Activities - As of June 30, 2021, the company had $102.3 million in cash and cash equivalents, which is expected to support current operating requirements and research activities[191]. - The company sold an additional 899,981 shares of common stock at an average price of $21.32, receiving net proceeds of $18.6 million during the six months ended June 30, 2021[189]. - The company completed a Private Placement on June 29, 2021, receiving net proceeds of $73.6 million after deducting fees and offering expenses of $1.4 million[189][192]. - Net cash provided by financing activities for the six months ended June 30, 2021, totaled $90.2 million, consisting of $73.6 million from a Private Placement and $18.6 million from an ATM offering program[201]. - The company had unrestricted cash and cash equivalents of $102.3 million as of June 30, 2021, held for working capital and capital expansion purposes[211]. Operational Insights - The company has not encountered significant disruptions to its supply chain or ability to deliver to customers during the COVID-19 pandemic[119]. - The company has operated its East Providence facility since 2008 and is planning a significant expansion of aerogel capacity prior to the end of 2023[108]. - The company has decided to cease efforts to secure additional funded research contracts to focus on improving profitability and developing new products[107]. - The company intends to extend or replace its revolving credit facility before its maturity date of April 28, 2022[213]. - The company has not engaged in any off-balance sheet activities since inception[203].