Content Detail

• Content META

  Title	Origin Materials, Inc. Reports Operating and Financial Results for Third Qu
  ID	4416004
  External ID	7302805927
  Author	Unknown
  Published Date	Nov. 14, 2024, 3:05 p.m.
  Summary	Origin Materials, Inc. (“Origin,” “Origin Materials,” or the “Company”) (Nasdaq: ORGN, ORGNW), a technology company with a mission to enable the world's transition to sustainable materials, today anno
  Tags	press-release
  URL	http://sogotradedev.websol.barchart.com/?module=topnews&storyid=29589310
  Sentiment	Negative: 0.00837    Neutral: 0.18409    Positive: 0.80754
  Relevance	0.02929

• Content Details

  Content ID	2633479
  Key	78acfbf5-b667-41f4-a7b2-e394d51e6c2a
  Content	Origin Materials, Inc. (“Origin,” “Origin Materials,” or the “Company”) (Nasdaq: ORGN, ORGNW), a technology company with a mission to enable the world's transition to sustainable materials, today announced financial results for its third quarter ended September 30, 2024. “This quarter we achieved a milestone on our journey to profitability: the successful Factory Acceptance Test of our first CapFormer System,” said Rich Riley, Co-Chief Executive Officer of Origin. “Our proprietary system for manufacturing what we believe to be the world's first and only commercially viable PET caps performed well – demonstrating over 98% manufacturing efficiency during the acceptance test. Our successful test was attended by multiple prospective customers with total cap consumption in excess of 100 billion caps per year. We are on track for commercial production by year end, at which time we will continue to engage in customer qualification as we scale our caps output. Revenue is on track to begin ramping up in the first quarter of 2025. Customer momentum is strong: Alongside our announced $100 million MOU, our PET caps are in the hands of multiple prospective customers engaged in testing and qualification, offering a strong pipeline of potential buyers who can purchase billions of caps as our systems come online throughout next year and beyond.” Company Third Quarter and Recent Business Highlights Origin Materials reported quarterly revenue of $8.2 million generated by the Company's supply chain activation program. The Company also made significant progress in commercializing its caps and closures business. We believe Origin's CapFormer System is the world's first and only commercially viable manufacturing system for PET caps, offering a breakthrough for recycling circularity and packaging performance. We revealed novel applications of thermoforming, finishing and post-processing, and other design elements, and our test validated performance specifications with over 98% manufacturing efficiency. Today we are announcing our plan to bring at least eight CapFormer Systems into production by 2025. We estimate the initial eight CapFormer Systems will produce, in total, between 8 and 12 billion caps per year when fully operational. The actual production will depend on factors such as line throughput and product mix. We expect to continue to add systems for the foreseeable future to keep pace with indicative market demand. We are engaged with multiple potential customers in PET cap qualification, and we are excited to support qualification runs for all our new prospective customers. Customer feedback has been positive and momentum continues to build alongside our announced MOU, which totals billions of PET caps and is expected to generate over $100 million in revenue during the initial two-year term, with revenue expected to begin in the first quarter of 2025, ramping significantly in 2026. As part of qualification, prospective customers have been attending Origin trials and are engaged with technical development work and the journey to commercial production. Our successful Factory Acceptance Test was attended by multiple prospective customers with total cap consumption in excess of 100 billion caps per year. For furanics and Origin's biomass conversion technology, we continue to perform development work. We expect the focus of Origin investor communication to be Origin's path to profitability, namely its caps and closures business, and we will provide investors with furanics updates as appropriate when we have substantive news to report. As previously announced, and consistent with the company's focus on becoming EBITDA positive in the first half of 2026, we are operating Origin 1, our biomass conversion plant in Sarnia, Ontario, ‘on demand' with reduced staffing. This approach preserves our ability to generate product at small volumes sufficient to explore scale-up with strategic partners while reducing our current overall cash burn. As we establish a strong economic foundation through our PET caps and closures business, we expect to be ideally situated to drive deals regarding our biomass technology and furanics platform. Results for Third Quarter 2024 Cash, cash equivalents and marketable securities were $113.4 million as of September 30, 2024. Revenue for the third quarter was $8.2 million compared to $7.1 million in the prior-year period, generated by the Company's supply chain activation program. Operating expenses for the third quarter were $32.5 million compared to $12.9 million in the prior-year period, an increase of $19.5 million consisting primarily of $15.2 million in non-cash impairment charges, a $2.4 million increase in depreciation expenses driven by Origin 1 coming online during the fourth quarter of 2023, and a $1.7 million increase in general and administrative expenses. Consistent with our focus on caps and closures and asset light furanics strategy, management has decided not to utilize the Geismar, Louisiana site, resulting in a non-cash impairment of assets charge of $12.3 million and $2.9 million for the write-down of other current assets to fair market value of purchased materials. A significant portion of costs incurred during the third quarter of 2023 were capitalized as part of the development of Origin 1, whereas the costs to operate and maintain the plant are included in general and administrative expenses in 2024. Adjusted EBITDA loss was $12.0 million for the third quarter compared to $9.5 million in the prior-year period. The $2.5 million increase is primarily due to higher general and administrative expenses. Shares outstanding as of September 30, 2024 were 145.9 million including 3.0 million shares that are subject to forfeiture based on share price performance targets previously disclosed in our filings. For a reconciliation of non-GAAP figures to the applicable GAAP figures, please see the table captioned ‘Reconciliation of GAAP and Non-GAAP Results' set forth at the end of this press release. Full Year 2024 Outlook Revenue of $25 million to $35 million. Net cash burn between $55 million and $65 million. These expectations do not consider, or give effect to, among other things, unforeseen events, including changes in global economic conditions. Webcast and Conference Call Information Company management will host a webcast and conference call on November 14, 2024, at 5:00 p.m. Eastern Time, to discuss the Company's financial results. Interested investors and other parties can listen to a webcast of the live conference call and access the Company's quarterly update presentation by logging onto the Investor Relations section of the Company's website at The Company believes that these non-GAAP financial measures provide useful information about the Company's operating results, enhance the overall understanding of the Company's past performance and future prospects and allow for greater visibility with respect to key metrics used by the Company's management in its financial and operational decision-making. Non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. These non-GAAP financial measures have limitations as analytical tools, and when assessing the Company's operating performance, investors should not consider them in isolation. In addition, calculations of this non-GAAP financial information may be different from calculations used by other companies, and therefore comparability may be limited. The Company mitigates these limitations by reconciling the non-GAAP financial measures to the most comparable U.S. GAAP performance measures, all of which should be considered when evaluating our performance. For more information on Adjusted EBITDA, please see the table captioned “Reconciliation of GAAP and Non-GAAP Results” set forth at the end of this press release. Cautionary Note on Forward-Looking Statements This press release contains certain forward-looking statements within the meaning of the federal securities laws. Forward-looking statements generally are accompanied by words such as “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” “should,” “would,” “plan,” “predict,” “project,” “potential,” “seem,” “seek,” “target,” “future,” “outlook,” and similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements include, but are not limited to, statements regarding Origin's business strategy, anticipated 2024 revenue generation and cash burn, anticipated customer demand, recycling circularity and performance benefits of the caps and closures, revenue potential, near-term revenue potential of caps and closures, including anticipated caps revenue ramp-up to begin in the first quarter of 2025, the projection that Origin will achieve positive EBITDA results by the first half of 2026, the estimated output of Origin's CapFormer Systems, pace and anticipated timing of bringing caps and closures manufacturing systems online, anticipated revenue generated from such systems, estimated total addressable market, anticipated benefits of and demand for Origin's potential products, ability to convert the MOU and other potential customer interest into revenue, commercial and operating plans, product development plans and announcements of such plans, and anticipated growth and projected financial information. From time to time, the Company discloses approximate levels of customer demand based on information received from current and potential customers as to amounts of product they wish to purchase at a certain price over a certain term in the future. The Company does not discount such indications of customer demand by the likelihood of their conversion to actual revenue or the time until such conversion. Some customers may overstate the amount of product they wish to purchase and one should not assume that demand figures disclosed by the Company will necessarily translate into comparable levels of revenue. The forward-looking statements are based on various assumptions, whether or not identified in this press release, and on the current plans, objectives, estimates, expectations, and intentions of the management of Origin and are not predictions of actual performance and inherently involve significant risks and uncertainties. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as, and must not be relied on as, a guarantee, an assurance, a prediction, or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions. Many actual events and circumstances are beyond the control of Origin. These forward-looking statements are subject to a number of risks and uncertainties including, but not limited to, the fact that Origin may be unable to successfully commercialize its products; the effects of competition on Origin's business; the uncertainty of the projected financial information with respect to Origin; disruptions and other impacts to Origin's business. Other factors that could adversely affect the Company's operations include those discussed in Origin's Quarterly Report on Form 10-Q filed with the U.S. Securities and Exchange Commission (“SEC”) on November 14, 2024 under the heading “Risk Factors,” and other documents Origin has filed, or will file, with the SEC. These filings, when available, are available on the investor relations section of our website at investors.originmaterials.com and on the SEC's website at . If any of these risks materialize or Origin's assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. There may be additional risks of which Origin does not presently know, or that Origin currently believes are immaterial, that could also cause actual results to differ from those contained in the forward-looking statements. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. Origin undertakes no obligation to revise or publicly release the results of any revision to these forward-looking statements, except as required under applicable law. These forward-looking statements should not be relied upon as representing Origin's assessments of any date subsequent to the date of this press release. Accordingly, undue reliance should not be placed upon the forward-looking statements. ORIGIN MATERIALS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except share and per share data) September 30, 2024 (Unaudited) December 31, ASSETS Current assets Cash and cash equivalents Marketable securities Accounts receivable and unbilled receivable, net of allowance for credit losses of $730 and $0, respectively Other receivables Inventory Prepaid expenses and other current assets Total current assets Property, plant, and equipment, net Operating lease right-of-use asset Intangible assets, net Deferred tax assets Other long-term assets Total assets LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Accounts payable Accrued expenses Operating lease liabilities, current Notes payable, short-term Other liabilities, current Derivative liability Total current liabilities Earnout liability Canadian Government Research and Development Program liability Common stock warrants liability Notes payable, long-term Operating lease liabilities Other liabilities, long-term Total liabilities STOCKHOLDERS' EQUITY Preferred stock, $0.0001 par value, 10,000,000 shares authorized; no shares issued and outstanding as of September 30, 2024 and December 31, 2023 — — Common stock, $0.0001 par value, 1,000,000,000 shares authorized; 145,886,615 and 145,706,531, issued and outstanding as of September 30, 2024 and December 31, 2023, respectively (including 3,000,000 and 4,500,000, respectively, of Sponsor Vesting Shares) Additional paid-in capital (Accumulated deficit) retained earnings Accumulated other comprehensive loss Total stockholders' equity Total liabilities and stockholders' equity ORIGIN MATERIALS, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME (Unaudited) Three Months Ended September 30, Nine Months Ended September 30, (In thousands, except share and per share data) Revenues: Products Services — Total revenues Cost of revenues (exclusive of depreciation and amortization shown separately below) Operating expenses Research and development General and administrative Depreciation and amortization Impairment of assets — — Total operating expenses Loss from operations Other income (expenses) Investment income (expenses), net Interest expenses — — (Loss) gain in fair value of derivatives (Loss) gain in fair value of common stock warrants liability (Loss) gain in fair value of earnout liability Other (expenses) income, net Total other (expenses) income, net (Loss) income before income tax expenses Income tax expenses Net (loss) income Other comprehensive income (loss) Unrealized gain on marketable securities Foreign currency translation adjustment Total other comprehensive income (loss) Total comprehensive (loss) income Net (loss) income per share, basic Net (loss) income per share, diluted Weighted-average common shares outstanding, basic Weighted-average common shares outstanding, diluted ORIGIN MATERIALS, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) Nine Months Ended September 30, (in thousands) Cash flows from operating activities Net (loss) income Adjustments to reconcile net (loss) income to net cash used in operating activities: Depreciation and amortization Provision for credit losses — Amortization on right-of-use asset Stock-based compensation Loss (gain), net on disposal of property, plant, and equipment — Loss on reserves — Impairment of assets — Realized loss (gain) on marketable securities Amortization of premium and discount of marketable securities, net Change in fair value of derivative Change in fair value of common stock warrants liability Change in fair value of earnout liability Deferred tax benefit — Changes in operating assets and liabilities: Accounts receivable and other receivables Inventory Prepaid expenses and other current assets Other long-term assets Accounts payable Accrued expenses Operating lease liability Deferred income — Other liabilities, current Other liabilities, long-term — Net cash used in operating activities Cash flows from investing activities Purchases of property, plant, and equipment Purchases of marketable securities Sales of marketable securities Maturities of marketable securities Net cash provided by investing activities Cash flows from financing activities Payment of notes payable — Proceeds from Canadian Government Research and Development Program — Proceeds from exercise of stock options Net cash provided by financing activities Effects of foreign exchange rate changes on the balance of cash and cash equivalents, and restricted cash held in foreign currencies Net decrease in cash and cash equivalents, and restricted cash Cash and cash equivalents, and restricted cash, beginning of the period Cash and cash equivalents, and restricted cash, end of the period Origin Materials, Inc. Reconciliation of GAAP and Non-GAAP Results Three Months Ended September 30, Nine Months Ended September 30, (in thousands) Net (loss) income Stock-based compensation Depreciation and amortization Impairment of assets — — Investment (income) expenses, net Interest expenses — — Loss (gain) in fair value of derivatives Loss (gain) in fair value of common stock warrants liability Loss (gain) in fair value of earnout liability Other expenses (income), net Income tax expenses — — Adjusted EBITDA View source version on businesswire.com:
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  Data Source Name	Quantexa News (#5)
  Data Source Type	news
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