------- ------- Cash flows from investing activities: Purchases of property, plant and equipment and intangible assets (1,970) (16,400) ------- ------- Net cash used in investing activities (1,970) (16,400) ------- ------- Cash flows from financing activities: Proceeds from issuance of common warrants, net of issuance costs 8,883 - Proceeds from issuance of common stock, net of issuance costs 4,650 - Principal payments on long-term debt (606) (5,494) Proceeds from employee stock purchase plan 118 129 Employee taxes related to stock-based compensation (8) (61) Proceeds from long-term debt - 130,000 Cash paid for debt issuance costs - (33,035) ------- ------- Net cash provided by financing activities 13,037 91,539 ------- ------- Net (decrease) increase in cash and cash equivalents and restricted cash (1,924) 69,274 ------- ------- Cash and cash equivalents and restricted cash-beginning of period 73,504 64,401 ------- ------- Cash and cash equivalents and restricted cash-end of period $ 71,580 $133,675 ======= =======
Non-GAAP Financial Measures
This press release includes the non-GAAP financial measures "Adjusted EBITDA", "Adjusted gross profit" and "Adjusted gross margin". Danimer management views these metrics as a useful way to look at the performance of its operations between periods and to exclude decisions on capital investment and financing that might otherwise impact the review of profitability of the business based on present market conditions.
Adjusted EBITDA is defined as net income or loss plus net interest expense, income taxes, depreciation and amortization, as adjusted to add back certain charges or gains that Danimer may record each period such as remeasurement of private warrants, stock-based compensation expense, as well as non-recurring charges such as (i) asset disposal gains or losses as well as other significant gains or losses such as debt extinguishments and impairment of goodwill; (ii) legal settlements; or (iii) other discrete non-recurring items. Danimer believes these items are not considered an indicator of ongoing performance. Adjusted EBITDA is not a measure of performance defined in accordance with GAAP. The measure is used as a supplement to GAAP results in evaluating certain aspects of Danimer's business, as described below.
Adjusted gross profit is defined as gross profit plus depreciation, stock-based compensation and other nonrecurring items.
Adjusted gross margin is defined as adjusted gross profit divided by total revenue.
Danimer believes that each of Adjusted EBITDA, Adjusted gross profit and Adjusted gross margin is useful to investors in evaluating the Company's performance because each measure considers the performance of the Company's operations, excluding decisions made with respect to capital investment, financing and other non-recurring charges as outlined in the preceding paragraph. Danimer believes these non-GAAP metrics offer additional financial information that, when coupled with the GAAP results and the reconciliation to GAAP results, provides a more complete understanding of its results of operations and the factors and trends affecting its business.
Adjusted EBITDA, Adjusted gross profit and Adjusted gross margin should not be considered as an alternative to net income or loss as an indicator of its performance or as alternatives to any other measure prescribed by GAAP as there are limitations to using such non-GAAP measures. Although Danimer believes that Adjusted EBITDA, Adjusted gross profit and Adjusted gross margin may enhance an evaluation of its operating performance based on recent revenue generation and product/overhead cost control because it excludes the impact of prior decisions made about capital investment, financing and other expenses, (i) other companies in Danimer's industry may define Adjusted EBITDA, Adjusted gross profit and Adjusted gross margin differently than Danimer does and, as a result, they may not be comparable to similarly titled measures used by other companies in its industry, and (ii) Adjusted EBITDA, Adjusted gross profit and Adjusted gross margin exclude certain financial information that some may consider important in evaluating Danimer's performance.
Danimer compensates for these limitations by providing disclosure of the differences between Adjusted EBITDA, Adjusted gross profit and Adjusted gross margin and GAAP results, including providing a reconciliation to GAAP results, to enable investors to perform their own analysis of Danimer's operating results. Because GAAP financial measures on a forward-looking basis are not accessible, and reconciling information is not available without unreasonable effort, reconciliations to GAAP financial measures are not provided for forward-looking non-GAAP measures. For the same reasons, the Company is unable to address the probable significance of the unavailable information, which could be material to future results.
Danimer Scientific, Inc. Reconciliation of Adjusted EBITDA to Net Loss (Unaudited) Three Months Ended March 31, -------------------------------------- 2024 2023 ---------- --- --------- (in thousands) Net loss $ (27,263) $ (36,639) Interest, net 8,838 3,386 Depreciation and amortization 7,531 7,579 Stock-based compensation 966 14,943 Transaction and other related 867 - Litigation and other legal related 321 57 Strategic reorganization and related 176 - (Gain) loss on remeasurement of warrants (99) 1,116 Income taxes 2 (90) Loss on extinguishment of royalty agreement - 549 Loss on sale of assets - 247 ---------- --- --------- Adjusted EBITDA $ (8,661) $ (8,852) ---------- --------- Reconciliation of Adjusted Gross Profit to Gross Profit (Unaudited) Three Months Ended March 31, -------------------------------------- 2024 2023 ---------- --- --------- (in thousands) Total revenue $ 10,224 $ 11,926 Cost of revenue 16,535 18,209 ---------- --- --------- Gross profit (6,311) (6,283) Depreciation 5,147 5,213 Loss on sale of assets - 77 Stock-based compensation 3 2 ---------- --- --------- Adjusted gross profit $ (1,161) $ (991) ========== ========= Adjusted gross margin -11.4% -8.3% ========== =========
View source version on businesswire.com: https://www.businesswire.com/news/home/20240507485028/en/
CONTACT: Investors
Blake Chamblee
Phone: 770-337-6570
ir@danimer.com
Media
Richard Ivey
Phone: 229-254-7688
rivey@danimer.com
(END) Dow Jones Newswires
May 07, 2024 16:01 ET (20:01 GMT)
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