Origin Materials, Inc. Reports Financial Results for Fourth Quarter 2021
Origin Materials, Inc. (Nasdaq: ORGN, ORGNW) has selected Geismar, Louisiana for its Origin 2 facility, contingent upon finalizing state and local incentives exceeding $100 million and a $400 million Private Activity Bond allocation. The company reports a total of $5.6 billion in contracted offtake agreements, up from $4.2 billion. Although maintaining strong demand, Origin reaffirms an adjusted EBITDA loss forecast for 2022 of $36 million. Operating expenses rose to $26.9 million in 2021, contrasting with a net income of $42.1 million, driven by previous funding rounds and partnerships.
- Increased contracted offtake agreements and capacity reservations to $5.6 billion, reflecting strong customer demand.
- Selected Geismar, Louisiana for Origin 2, anticipating significant economic incentives exceeding $100 million.
- Operational timeline for Origin 1 remains on track for completion by end of 2022.
- Adjusted EBITDA forecast for 2022 indicates a loss of up to $36 million.
- Operating expenses have significantly increased to $26.9 million in 2021 from $11.2 million in 2020.
- Adjusted EBITDA loss increased to $20 million in 2021 from $9.1 million in 2020.
– Origin 2 Site Selected in
– Origin to Receive
– Origin 1 and 2 Capital Budget, Construction Timeline, and Financing On Track –
– Customer Demand is Strong and Broad Based, Increased Contracted Offtake Agreements and Capacity Reservations to
– Reaffirms 2022 Adjusted EBITDA Forecast Loss of
“I am incredibly proud of what the Origin team accomplished in 2021 and encouraged by the strong momentum that we continue to see for our industry-leading technology platform in 2022 as the world moves aggressively to a zero-carbon future. We remain well-capitalized, on budget, and on track for completion of Origin 1 by the end of 2022. Origin 2 remains on track to be operational by mid-2025. We announced that we have selected
- Partnership with Mitsui to industrialize advanced carbon-negative chemicals and materials for the automotive, chemicals, electronics, packaging, textiles, construction, and personal care industries. This partnership with Mitsui also provides Origin further access to the Japanese and international markets.
-
Partnership with
Minafin Group to industrialize high-value specialty chemicals based on Origin’s carbon-negative materials for applications in the pharmaceutical, agricultural, cosmetics and personal care, and automotive industries.
These partnerships complement Origin’s existing partnerships and customer relationships with industry leaders including Danone, Nestlé Waters, PepsiCo, Ford Motor Company, Mitsubishi Gas Chemical, Kolon Industries, PrimaLoft and Solvay.
Origin 1 and Origin 2 Financing and Construction Update
The Company maintains that the previously disclosed Origin 1 and Origin 2 capital budgets and construction timelines are on track. In addition, Origin continues to expect that the capital projects for Origin 1 and Origin 2 can be fully funded from its existing cash on hand and previously indicated traditional project financing sources. For the financing of Origin 2, the
Origin continues to consult with leading financial institutions that specialize in financing capital projects such as Origin 2. The Company is pleased to reaffirm that its financing assumptions for Origin 2 remain reasonable and achievable. The
Origin 1 remains on track for mechanical completion by the end of 2022. During the fourth quarter, the ENCON evaporator module system was placed and bolted, three months ahead of the Company's plan announced in
Similarly, Origin 2 remains on track to be operational by mid-2025. As previously announced, working with Worley Limited,
Results for Fourth Quarter and Full Year 2021
Cash, cash equivalents and marketable securities were
Operating expenses for the fourth quarter were
Adjusted EBITDA loss was
Net income was
Shares outstanding as of
Full Year 2022 Outlook
Based on current business conditions, business trends and other factors, the Company is providing the following initial guidance for Adjusted EBITDA and capital spending for fiscal year 2022:
-
Adjusted EBITDA loss of up to
$36 million -
Capital spending is expected to be up to
$155 million
For a reconciliation of a non-GAAP figure to the applicable GAAP figure please see the table captioned ‘Reconciliation of GAAP and Non-GAAP Results' set forth at the end of this press release. 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
Interested investors and other parties can listen to a webcast of the live conference call and access the Company’s fourth quarter update presentation by logging onto the Investor Relations section of the Company's website at https://investors.originmaterials.com/.
The conference call can be accessed live over the phone by dialing 1-855-327-6837 (domestic) or +1-631-891-4304 (international). A telephonic replay will be available approximately two hours after the call by dialing 1-844-512-2921, or for international callers, +1-412-317-6671. The conference ID for the live call and pin number for the replay is 10018099. The replay will be available until
About
Headquartered in
Non-GAAP Financial Information
To supplement the Company’s financial results presented in accordance with generally accepted accounting principles in
Non-GAAP financial measures are not defined under
The Company mitigates these limitations by reconciling the non-GAAP financial measures to the most comparable
For more information on this non-GAAP financial measure, 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,” “potential,” “seem,” “seek,” “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 Materials’ business strategy, estimated total addressable market, access to traditional financing sources, budget and timelines to complete Origin 1 and Origin 2, ability to convert capacity reservations and offtake arrangements into revenue, commercial and operating plans, product development plans, anticipated growth and projected financial information and ability to realize the anticipated benefits of any partnerships discussed in the press release. These statements are based on various assumptions, whether or not identified in this press release, and on the current expectations of the management of
Consolidated Balance Sheets (Unaudited) |
||||||||
(In thousands, except share and per share data) |
2021 |
|
2020 |
|||||
ASSETS |
|
|
|
|||||
Current assets |
|
|
|
|||||
Cash and cash equivalents |
$ |
46,637 |
|
|
$ |
1,309 |
|
|
Restricted cash |
|
490 |
|
|
|
565 |
|
|
Marketable securities |
|
397,458 |
|
|
|
— |
|
|
Other receivables |
|
2,612 |
|
|
|
48 |
|
|
Derivative asset |
|
202 |
|
|
|
— |
|
|
Grants receivable |
|
— |
|
|
|
— |
|
|
Prepaid expenses and other current assets |
|
3,774 |
|
|
|
83 |
|
|
Total current assets |
|
451,173 |
|
|
|
2,005 |
|
|
Property, plant, and equipment, net |
|
57,185 |
|
|
|
45,104 |
|
|
Operating lease right-of-use asset |
|
1,782 |
|
|
|
— |
|
|
Intangible assets, net |
|
215 |
|
|
|
258 |
|
|
Other long-term assets |
|
62 |
|
|
|
62 |
|
|
Total assets |
$ |
510,417 |
|
|
$ |
47,429 |
|
|
|
|
|
|
|||||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|||||
Current liabilities |
|
|
|
|||||
Accounts payable |
$ |
2,451 |
|
|
$ |
2,700 |
|
|
Accrued expenses |
|
973 |
|
|
|
593 |
|
|
Operating lease liability, current |
|
280 |
|
|
|
— |
|
|
Other liabilities, current |
|
380 |
|
|
|
— |
|
|
Derivative liability |
|
103 |
|
|
|
1,239 |
|
|
Stockholder convertible notes payable |
|
— |
|
|
|
3,232 |
|
|
Total current liabilities |
|
4,187 |
|
|
|
7,764 |
|
|
|
|
|
|
|||||
PPP Loan |
|
— |
|
|
|
906 |
|
|
Earnout liability |
|
127,757 |
|
|
|
— |
|
|
|
|
6,762 |
|
|
|
6,197 |
|
|
Redeemable convertible preferred stock warrants |
|
— |
|
|
|
19,233 |
|
|
Assumed common stock warrants liability |
|
52,860 |
|
|
|
— |
|
|
Stockholder note |
|
5,189 |
|
|
|
5,189 |
|
|
Related party other liabilities, long-term |
|
5,720 |
|
|
|
5,517 |
|
|
Operating lease liability |
|
1,486 |
|
|
|
— |
|
|
Other liabilities, long-term |
|
2,946 |
|
|
|
2,500 |
|
|
Total liabilities |
$ |
206,907 |
|
|
$ |
47,306 |
|
|
|
|
|
|
|||||
STOCKHOLDERS’ EQUITY |
|
|
|
|||||
Preferred stock, |
|
— |
|
|
|
— |
|
|
Common stock, |
|
16 |
|
|
|
6 |
|
|
Additional paid-in capital |
|
361,542 |
|
|
|
98,620 |
|
|
Accumulated deficit |
|
(56,797 |
) |
|
|
(98,887 |
) |
|
Accumulated other comprehensive income (loss) |
|
(1,251 |
) |
|
|
384 |
|
|
Total stockholders’ equity |
|
303,510 |
|
|
|
123 |
|
|
Total liabilities and stockholders’ equity |
$ |
510,417 |
|
|
$ |
47,429 |
|
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (Unaudited) |
||||||||||||||||
|
Three Months Ended
|
|
Year Ended
|
|||||||||||||
(In thousands, except share and per share data) |
2021 |
|
2020 |
|
2021 |
|
2020 |
|||||||||
Operating Expenses |
|
|
|
|
|
|
|
|||||||||
Research and development |
$ |
3,519 |
|
|
$ |
825 |
|
|
$ |
9,124 |
|
|
$ |
4,138 |
|
|
General and administrative |
|
4,055 |
|
|
|
4,523 |
|
|
|
17,265 |
|
|
|
6,563 |
|
|
Depreciation and amortization |
|
181 |
|
|
|
174 |
|
|
|
544 |
|
|
|
479 |
|
|
Total operating expenses and loss from operations |
|
7,755 |
|
|
|
5,522 |
|
|
|
26,933 |
|
|
|
11,180 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Other (income) expenses |
|
|
|
|
|
|
|
|||||||||
Interest income |
|
(1,413 |
) |
|
|
— |
|
|
|
(1,413 |
) |
|
|
— |
|
|
Interest expense, net of capitalized interest |
|
(1 |
) |
|
|
174 |
|
|
|
2,838 |
|
|
|
341 |
|
|
Change in fair value of derivatives |
|
(100 |
) |
|
|
1,036 |
|
|
|
1,326 |
|
|
|
1,088 |
|
|
Change in fair value of warrants liability |
|
(2,838 |
) |
|
|
17,370 |
|
|
|
4,525 |
|
|
|
18,498 |
|
|
Change in fair value of earnout liability |
|
(8,480 |
) |
|
|
— |
|
|
|
(75,488 |
) |
|
|
— |
|
|
Other income, net |
|
(160 |
) |
|
|
(568 |
) |
|
|
(811 |
) |
|
|
(805 |
) |
|
Total other (income) expenses, net |
|
(12,992 |
) |
|
|
18,012 |
|
|
|
(69,023 |
) |
|
|
19,122 |
|
|
Net income (loss) |
$ |
5,237 |
|
|
$ |
(23,534 |
) |
|
$ |
42,090 |
|
|
$ |
(30,302 |
) |
|
|
|
|
|
|
|
|
|
|||||||||
Other comprehensive income (loss) |
|
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|||||||||
Unrealized (loss) on marketable securities |
|
(1,712 |
) |
|
|
— |
|
|
|
(1,712 |
) |
|
|
— |
|
|
Foreign currency translation adjustment, net of tax |
|
53 |
|
|
|
1,804 |
|
|
|
77 |
|
|
|
794 |
|
|
Total comprehensive income (loss) |
|
3,578 |
|
|
|
(21,730 |
) |
|
|
40,455 |
|
|
|
(29,508 |
) |
|
Net income (loss) per share, basic |
$ |
0.04 |
|
|
$ |
(0.38 |
) |
|
$ |
0.42 |
|
|
$ |
(0.48 |
) |
|
Net income (loss) per share, diluted |
$ |
0.04 |
|
|
$ |
(0.38 |
) |
|
$ |
0.40 |
|
|
$ |
(0.48 |
) |
|
Weighted-average common shares outstanding, basic |
|
136,762,136 |
|
|
|
62,545,275 |
|
|
|
101,221,781 |
|
|
|
62,544,933 |
|
|
Weighted-average common shares outstanding, diluted |
|
142,066,042 |
|
|
|
62,545,275 |
|
|
|
106,237,754 |
|
|
|
62,544,933 |
|
|
|
|
|
|
|
|
|
|
Consolidated Statements of Cash Flows (Unaudited) |
||||||||
|
Year Ended
|
|||||||
(in thousands) |
2021 |
|
2020 |
|||||
Cash flows from operating activities |
|
|
|
|||||
Net income (loss) |
$ |
42,090 |
|
|
$ |
(30,302 |
) |
|
Adjustments to reconcile net loss to net cash from operating activities: |
|
|
|
|||||
Depreciation and amortization |
|
544 |
|
|
|
479 |
|
|
Amortization on right-of-use asset |
|
280 |
|
|
|
— |
|
|
Stock-based compensation |
|
5,767 |
|
|
|
1,630 |
|
|
Amortization of debt issuance costs |
|
14 |
|
|
|
90 |
|
|
Accretion of debt discount |
|
2,211 |
|
|
|
101 |
|
|
Change in fair value of derivative liability |
|
1,326 |
|
|
|
1,088 |
|
|
Change in fair value of warrants liability |
|
4,525 |
|
|
|
18,498 |
|
|
Change in fair value of earnout liability |
|
(75,488 |
) |
|
|
— |
|
|
Payments on operating lease liabilities |
|
(295 |
) |
|
|
— |
|
|
Changes in operating assets and liabilities: |
|
|
|
|||||
Other receivables |
|
(2,563 |
) |
|
|
1,007 |
|
|
Grants receivable |
|
— |
|
|
|
87 |
|
|
Prepaid expenses and other current assets |
|
(3,652 |
) |
|
|
53 |
|
|
Increase in other liabilities, current |
|
380 |
|
|
|
— |
|
|
Accounts payable |
|
(395 |
) |
|
|
1,203 |
|
|
Accrued expenses |
|
3,010 |
|
|
|
349 |
|
|
Related party payable |
|
203 |
|
|
|
256 |
|
|
Net cash used in operating activities |
|
(22,043 |
) |
|
|
(5,461 |
) |
|
Cash flows from investing activities |
|
|
|
|||||
Purchases of property, plant, and equipment, net of grants |
|
(12,268 |
) |
|
|
(1,786 |
) |
|
Purchases of marketable securities |
|
(2,448,316 |
) |
|
|
— |
|
|
Sales of marketable securities |
|
2,024,089 |
|
|
|
— |
|
|
Maturities of marketable securities |
|
25,058 |
|
|
|
— |
|
|
Capitalized interest on plant construction |
|
(201 |
) |
|
|
(268 |
) |
|
Net cash used in investing activities |
|
(411,638 |
) |
|
|
(2,054 |
) |
|
Cash flows from financing activities |
|
|
|
|||||
Proceeds from stockholders' notes payable, net of debt issuance costs |
|
11,707 |
|
|
|
3,166 |
|
|
Payment of short-term debt |
|
(906 |
) |
|
|
— |
|
|
Proceeds from |
|
543 |
|
|
|
2,662 |
|
|
Issuance of common stock |
|
74 |
|
|
|
1 |
|
|
Business combination, net of issuance costs paid |
|
467,530 |
|
|
|
— |
|
|
Net cash provided by financing activities |
|
478,948 |
|
|
|
5,829 |
|
|
Effects of foreign exchange rate changes on the balance of cash and cash equivalents, and restricted cash held in foreign currencies |
|
(14 |
) |
|
|
(52 |
) |
|
Net increase (decrease) in cash and cash equivalents, and restricted cash |
|
45,253 |
|
|
|
(1,738 |
) |
|
Cash and cash equivalents, and restricted cash, beginning of the period |
|
1,874 |
|
|
|
3,612 |
|
|
Cash and cash equivalents, and restricted cash, end of the period |
$ |
47,127 |
|
|
$ |
1,874 |
|
|
|
|
|
|
Reconciliation of GAAP and Non-GAAP Results
We believe that the presentation of Adjusted Earnings before Interest, Taxes, Depreciation, and Amortization (Adjusted EBITDA) is appropriate to provide additional information to investors about our operating profitability adjusted for certain non-cash items, non-routine items that we do not expect to continue at the same level in the future, as well as other items that are not core to our operations. Further, we believe Adjusted EBITDA provides a meaningful measure of operating profitability because we use it for evaluating our business performance, making budgeting decisions, and comparing our performance against that of other peer companies using similar measures.
We define Adjusted EBITDA as net income or loss adjusted for (i) stock-based compensation expense, (ii) depreciation and amortization, (iii) interest income, (iv) interest expense, net of capitalized interest, (v) change in fair value of derivative liabilities, (vi) change in fair value of warrants liability, (vii) change in fair value of earnout liability, (viii) professional fees related to completed mergers, and (ix) other income, net.
|
|
Three months ended |
|
Year ended |
||||||||||||
(in thousands) |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||
Net income (loss) |
|
$ |
5,237 |
|
|
$ |
(23,534 |
) |
|
$ |
42,090 |
|
|
$ |
(30,302 |
) |
Stock based compensation |
|
|
959 |
|
|
|
1,552 |
|
|
|
5,767 |
|
|
|
1,630 |
|
Depreciation and amortization |
|
|
181 |
|
|
|
174 |
|
|
|
544 |
|
|
|
479 |
|
Interest income |
|
|
(1,413 |
) |
|
|
— |
|
|
|
(1,413 |
) |
|
|
— |
|
Interest expense, net of capitalized interest |
|
|
(1 |
) |
|
|
175 |
|
|
|
2,838 |
|
|
|
341 |
|
Change in fair value of derivative liabilities |
|
|
(100 |
) |
|
|
1,036 |
|
|
|
1,326 |
|
|
|
1,088 |
|
Change in fair value of warrants liability |
|
|
(2,838 |
) |
|
|
17,370 |
|
|
|
4,525 |
|
|
|
18,498 |
|
Change in fair value of earnout liability |
|
|
(8,480 |
) |
|
|
— |
|
|
|
(75,488 |
) |
|
|
— |
|
Professional fees related to completed mergers |
|
|
— |
|
|
|
— |
|
|
|
640 |
|
|
|
— |
|
Other income, net |
|
|
(160 |
) |
|
|
(568 |
) |
|
|
(811 |
) |
|
|
(805 |
) |
Adjusted EBITDA |
|
$ |
(6,615 |
) |
|
$ |
(3,796 |
) |
|
$ |
(19,982 |
) |
|
$ |
(9,071 |
) |
|
|
|
|
|
|
|
|
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20220224005948/en/
Investors:
ir@originmaterials.com
Media:
media@originmaterials.com
Source:
FAQ
What are the latest developments for Origin Materials in 2022?
What was Origin Materials' adjusted EBITDA forecast for 2022?
How much have Origin's contracted offtake agreements increased recently?