Origin Materials, Inc. Reports Operating and Financial Results for First Quarter 2024
Origin Materials reported Q1 2024 revenue of $6.8 million, a significant increase from $1.7 million in Q1 2023. Despite this, the company recorded a net loss of $13.9 million, compared to a net income of $9.8 million in Q1 2023. The increase in operating expenses to $18.1 million was driven by higher general and administrative costs and depreciation expenses.
Origin reaffirmed its 2024 revenue guidance of $25-35 million and net cash burn of $55-65 million. Key business developments include the successful trial of PET caps and closures, partnerships with PackSys Global and IMDvista, and the acceleration of high-throughput production lines. The company also reported progress in biomass conversion technology.
Cash and equivalents stood at $146.6 million as of March 31, 2024.
- Q1 2024 revenue increased to $6.8 million from $1.7 million in Q1 2023.
- Successful trial of PET caps and closures on a commercial bottle line.
- Partnerships with PackSys Global and IMDvista.
- Acceleration of multiple high-throughput production lines.
- Reaffirmed 2024 revenue guidance of $25-35 million.
- Cash reserves of $146.6 million as of March 31, 2024.
- Net loss of $13.9 million in Q1 2024 compared to net income of $9.8 million in Q1 2023.
- Operating expenses increased to $18.1 million, up from $13 million in Q1 2023.
- Adjusted EBITDA loss was $12.9 million, higher than $9.7 million in Q1 2023.
Insights
Origin Materials' recent financial results paint a picture of a company in transition. Their revenue of $6.8 million for the first quarter marks a substantial increase from the
The reaffirmation of their 2024 revenue guidance of
The announcement highlights Origin's progress in the caps and closures market, a sector worth over
The shift to recycled PET and the successful commercial trials show commitment to sustainability, which can attract eco-conscious consumers and investors. However, the competitive landscape and scalability will be critical to watch as they bring their manufacturing systems online by Q4 2024.
Origin Materials' focus on sustainable intermediates from wood residue feedstock marks an important milestone. This aligns with their mission of creating carbon-negative materials. By converting sustainable wood residues at their Sarnia plant, they demonstrate their capability to produce versatile, eco-friendly intermediates that can replace petroleum-based products.
This development not only highlights their technological capabilities but also their potential to disrupt the traditional plastics and materials market. Their ongoing engagements with strategic partners and exploration of various scale-up scenarios reflect their proactive approach to expanding their sustainable materials platform.
– Reaffirms Pathway to Profitability Led by Caps & Closures, No Additional Equity Capital Required –
– Accelerates the Procurement of Multiple Additional High-Throughput Caps and Closures Production Lines –
– Completes Successful Capping Trial on Commercial Bottle Line Applying Origin Recycled PET Caps to Thousands of Filled Containers –
– Maintains 2024 Revenue and Net Cash Burn Guidance –
“Over the quarter, we have seen strong progress on our pathway to profitability, led by our groundbreaking PET caps and closures business,” said Rich Riley, Co-Chief Executive Officer of Origin. “We announced a few of our caps and closures manufacturing partners including PackSys Global and IMDvista, and we continued to make excellent progress with prospective and as yet unannounced customers who are excited about our revolutionary caps offering and the benefits it brings for recycling circularity and performance. In addition, today we are announcing that we have accelerated the procurement of multiple additional high-throughput commercial production lines to complement the first line, which we already ordered. We aim to bring our first manufacturing system online during the fourth quarter 2024. At full capacity, our initial systems are expected to generate between
“Apart from our caps and closures business,” Riley continued, “we continue to grow the long-term value of the Origin platform by engaging potential strategic partners around the scale-up of our biomass conversion technology, including exploring high value application development initiatives that could generate near term revenue. Last, but certainly not least, this quarter we were pleased to convert sustainable wood residues at Origin 1 into our versatile intermediates. This milestone in the scale-up of our biomass conversion technology generates valuable information to support future technology scale-up and provides an important demonstration for our customers of our technology’s performance. All of this is exciting progress for our customers and team as we continue to execute in our mission to drive the once in a planet transition to sustainable materials.”
Company First Quarter and Recent Business Highlights
Origin Materials reported quarterly revenue of
-
Partnership with PackSys Global, the leading packaging machine producer for plastic closure slitting machines, to produce the world’s first PET cap and closure manufacturing system. PackSys Global is a respected leader in packaging machines for the cosmetics, beverage, pharmaceutical, and packaging industries with facilities in
North America ,Europe , andAsia that has operated for over fifty years. -
Partnership with IMDvista, a global leader in high-speed testing systems, headquartered in
Switzerland with locations around the world includingthe United States ,Germany , andTaiwan with systems in use on every continent. IMDvista manufactures advanced camera systems that inspect thousands of closures per minute and which are expected to give Origin the ability to inspect billions of caps per year. - Announced our first caps and closures product, the world’s first CSD (carbonated soft drink) PET cap, the lightest of its kind ever produced at commercial scale.
- Announced the first tethered PET cap, a breakthrough in circularity, designed to improve cap collection rates for recycling.
-
We have accelerated the procurement of multiple additional high-throughput commercial production lines to complement our first line, which is already purchased. We aim to bring the first of these manufacturing systems online during the fourth quarter 2024. At full capacity following ramp-up, our initial systems are expected to generate between
and$45 million in annual revenue depending on product mix.$65 million - We achieved another technical milestone with the successful completion of a capping trial on a commercial bottling line applying Origin PET caps to thousands of filled beverage containers. We used recycled PET (rPET) with no additives used to modify the polymer.
Additional first quarter commercialization updates include:
-
We announced the successful conversion of wood residue feedstock into sustainable intermediates at Origin 1, our first commercial-scale plant. This marked an evolution from the corn starch-based production we have employed since commencement of plant operations in October of last year. We are using locally sourced, Forest Stewardship Council (FSC) controlled wood residues produced by a sawmill as a byproduct of lumber and wood flooring production. From that mill’s wood chips, shavings, and sawdust we produced our sustainable intermediates, which can be used to make a wide variety of products that normally would be made from petroleum. The plant, located in
Sarnia, Ontario, Canada , is first and foremost an asset used to support Origin market development, including customer materials testing and formulation in preparation for Origin 2 scale-up. Strategic partners remain engaged as we collaborate in market development activities. -
For Origin 2, we continue to engage customers as part of our asset light strategy for further biomass conversion technology scale up. Timelines and economic forecasts will depend on the partner and the deal structure, which can explore a range of scenarios and locations including
Geismar, Louisiana as well asAsia brownfield scenarios, with updates to be provided as we finalize those partnerships. Despite near-term macroeconomic challenges, to which the Company is adapting through less capital-intensive revenue generating initiatives, customer demand remains strong, as reflected by our total offtake agreements and capacity reservations in excess of . We continue to engage with multiple parties to explore a variety of plant designs and evaluate potential brownfield sites. We continue to perform funded joint development work including testing and optimizing various feedstocks to generate information that could influence our scale-up strategy.$10 billion
Results for First Quarter 2024
Cash, cash equivalents and marketable securities were
Revenue for the first quarter was
Operating expenses for the first quarter were
Net loss was
Adjusted EBITDA loss was
Shares outstanding as of March 31, 2024 were 146.5 million including 4.5 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
Based on current business conditions, business trends and other factors, the Company is maintaining the following guidance for 2024 revenue and net cash burn:
-
Revenue of
to$25 million .$35 million -
Net cash burn between
and$55 million .$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 May 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 first 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 1-877-300-8521 (domestic) or +1-412-317-6026 (international). A telephonic replay will be available approximately three 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 10188537. The replay will be available until 11:59 p.m. Eastern Time on May 21, 2024.
About Origin Materials, Inc.
Origin is the world's leading carbon negative materials company with a mission to enable the world’s transition to sustainable materials. Our innovative technologies include PET caps and closures that bring recycling circularity and enhanced performance to a
Non-GAAP Financial Information
To supplement the Company’s financial results presented in accordance with generally accepted accounting principles in
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
The Company mitigates these limitations by reconciling the non-GAAP financial measures to the most comparable
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.
The Company is unable to reconcile forward-looking net cash burn information provided in this press release to the increase or decrease in cash, cash equivalents, and restricted cash, the most closely comparable
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, anticipated 2024 revenue generation and cash burn, continued interest from and engagement with partners with respect to Origin 1 and scale-up of Origin’s biomass conversion technology, strength of customer demand, recycling circularity and performance benefits, revenue potential, , near-term revenue potential of development initiatives other than caps and closures, potential to be first to market with a commercially scalable PET cap, pace and anticipated timing of bringing caps and closures manufacturing systems online, anticipated revenue generated from the first several of such systems, estimated total addressable market, anticipated benefits of and demand for Origin’s potential products, anticipated performance of biomass conversion technology and platform, ability to convert capacity reservations and offtake agreements into revenue, commercial and operating plans, product development plans and announcements of such plans, and anticipated growth and projected financial information. These statements are based on various assumptions, whether or not identified in this press release, and on the current expectations of the management of Origin Materials and are not predictions of actual performance. 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 Materials. These forward-looking statements are subject to a number of risks and uncertainties, including that Origin Materials may be unable to successfully commercialize its products; the effects of competition on Origin Materials’ business; the uncertainty of the projected financial information with respect to Origin; disruptions and other impacts to Origin’s business as a result of Russia’s military intervention in
ORIGIN MATERIALS, INC. |
||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
||||||||
(In thousands, except share and per share data) |
March 31, 2024
|
|
December 31,
|
|||||
ASSETS |
|
|
|
|||||
Current assets |
|
|
|
|||||
Cash and cash equivalents |
$ |
75,773 |
|
|
$ |
75,502 |
|
|
Marketable securities |
|
70,857 |
|
|
|
82,761 |
|
|
Accounts receivable and unbilled receivable, net |
|
16,595 |
|
|
|
16,128 |
|
|
Other receivables |
|
4,234 |
|
|
|
3,449 |
|
|
Inventory |
|
915 |
|
|
|
912 |
|
|
Prepaid expenses and other current assets |
|
8,351 |
|
|
|
8,360 |
|
|
Total current assets |
|
176,725 |
|
|
|
187,112 |
|
|
Property, plant, and equipment, net |
|
238,184 |
|
|
|
243,118 |
|
|
Operating lease right-of-use asset |
|
4,310 |
|
|
|
4,468 |
|
|
Intangible assets, net |
|
108 |
|
|
|
121 |
|
|
Deferred tax assets |
|
1,123 |
|
|
|
1,261 |
|
|
Other long-term assets |
|
28,193 |
|
|
|
25,754 |
|
|
Total assets |
$ |
448,643 |
|
|
$ |
461,834 |
|
|
|
|
|
|
|||||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|||||
Current liabilities |
|
|
|
|||||
Accounts payable |
$ |
2,034 |
|
|
$ |
1,858 |
|
|
Accrued expenses |
|
5,361 |
|
|
|
7,689 |
|
|
Operating lease liabilities, current |
|
323 |
|
|
|
367 |
|
|
Notes payable, short-term |
|
5,303 |
|
|
|
1,730 |
|
|
Other liabilities, current |
|
973 |
|
|
|
918 |
|
|
Derivative liability |
|
26 |
|
|
|
300 |
|
|
Total current liabilities |
|
14,020 |
|
|
|
12,862 |
|
|
Earnout liability |
|
265 |
|
|
|
1,783 |
|
|
Canadian Government Research and Development Program liability |
|
15,286 |
|
|
|
7,348 |
|
|
Common stock warrants liability |
|
692 |
|
|
|
1,341 |
|
|
Notes payable, long-term |
|
3,459 |
|
|
|
3,459 |
|
|
Operating lease liabilities |
|
4,123 |
|
|
|
4,207 |
|
|
Other liabilities, long-term |
|
2,614 |
|
|
|
8,327 |
|
|
Total liabilities |
|
40,459 |
|
|
|
39,327 |
|
|
STOCKHOLDERS’ EQUITY |
|
|
|
|||||
Preferred stock, |
|
— |
|
|
|
— |
|
|
Common stock, |
|
15 |
|
|
|
15 |
|
|
Additional paid-in capital |
|
385,718 |
|
|
|
382,854 |
|
|
Retained earnings |
|
31,657 |
|
|
|
45,570 |
|
|
Accumulated other comprehensive loss |
|
(9,206 |
) |
|
|
(5,932 |
) |
|
Total stockholders’ equity |
|
408,184 |
|
|
|
422,507 |
|
|
Total liabilities and stockholders’ equity |
$ |
448,643 |
|
|
$ |
461,834 |
|
ORIGIN MATERIALS, INC. |
||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME |
||||||||
(Unaudited) |
||||||||
|
Three Months Ended March 31, |
|||||||
(In thousands, except share and per share data) |
2024 |
|
2023 |
|||||
Revenues: |
|
|
|
|||||
Products |
$ |
6,822 |
|
|
$ |
979 |
|
|
Services |
|
3 |
|
|
|
725 |
|
|
Total revenues |
|
6,825 |
|
|
|
1,704 |
|
|
Cost of revenues (exclusive of depreciation and amortization shown separately below) |
|
6,687 |
|
|
|
960 |
|
|
Operating expenses |
|
|
|
|||||
Research and development |
|
5,819 |
|
|
|
5,075 |
|
|
General and administrative |
|
10,005 |
|
|
|
7,656 |
|
|
Depreciation and amortization |
|
2,311 |
|
|
|
288 |
|
|
Total operating expenses |
|
18,135 |
|
|
|
13,019 |
|
|
Loss from operations |
|
(17,997 |
) |
|
|
(12,275 |
) |
|
Other income (expenses) |
|
|
|
|||||
Interest income |
|
1,864 |
|
|
|
3,014 |
|
|
Interest expense |
|
(117 |
) |
|
|
— |
|
|
Gain in fair value of derivatives |
|
296 |
|
|
|
760 |
|
|
Gain in fair value of common stock warrants liability |
|
649 |
|
|
|
6,766 |
|
|
Gain in fair value of earnout liability |
|
1,518 |
|
|
|
12,872 |
|
|
Other expenses, net |
|
(8 |
) |
|
|
(1,368 |
) |
|
Total other income, net |
|
4,202 |
|
|
|
22,044 |
|
|
(Loss) income before income tax expenses |
|
(13,795 |
) |
|
|
9,769 |
|
|
Income tax expenses |
|
(118 |
) |
|
|
— |
|
|
Net (loss) income |
$ |
(13,913 |
) |
|
$ |
9,769 |
|
|
Other comprehensive (loss) income |
|
|
|
|||||
Unrealized gain on marketable securities |
$ |
570 |
|
|
$ |
1,410 |
|
|
Foreign currency translation adjustment |
|
(3,844 |
) |
|
|
120 |
|
|
Total other comprehensive (loss) income |
|
(3,274 |
) |
|
|
1,530 |
|
|
Total comprehensive (loss) income |
$ |
(17,187 |
) |
|
$ |
11,299 |
|
|
Net (loss) income per share, basic |
$ |
(0.10 |
) |
|
$ |
0.07 |
|
|
Net (loss) income per share, diluted |
$ |
(0.10 |
) |
|
$ |
0.07 |
|
|
Weighted-average common shares outstanding, basic |
|
141,828,895 |
|
|
|
138,651,062 |
|
|
Weighted-average common shares outstanding, diluted |
|
141,828,895 |
|
|
|
142,454,369 |
|
ORIGIN MATERIALS, INC. |
||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||
(Unaudited) |
||||||||
|
Three Months Ended March 31, |
|||||||
(in thousands) |
2024 |
|
2023 |
|||||
Cash flows from operating activities |
|
|
|
|||||
Net (loss) income |
$ |
(13,913 |
) |
|
$ |
9,769 |
|
|
Adjustments to reconcile net (loss) income to net cash used in operating activities: |
|
|
|
|||||
Depreciation and amortization |
|
2,311 |
|
|
|
288 |
|
|
Amortization on right-of-use asset |
|
151 |
|
|
|
157 |
|
|
Stock-based compensation |
|
2,781 |
|
|
|
2,246 |
|
|
Realized loss on marketable securities |
|
51 |
|
|
|
775 |
|
|
Amortization of premium and discount of marketable securities, net |
|
(5 |
) |
|
|
— |
|
|
Change in fair value of derivative |
|
(296 |
) |
|
|
(760 |
) |
|
Change in fair value of common stock warrants liability |
|
(649 |
) |
|
|
(6,766 |
) |
|
Change in fair value of earnout liability |
|
(1,518 |
) |
|
|
(12,872 |
) |
|
Deferred tax benefits |
|
111 |
|
|
|
— |
|
|
Changes in operating assets and liabilities: |
|
|
|
|||||
Accounts receivable and other receivables |
|
(1,252 |
) |
|
|
(3,577 |
) |
|
Inventory |
|
(3 |
) |
|
|
(328 |
) |
|
Prepaid expenses and other current assets |
|
31 |
|
|
|
(550 |
) |
|
Other long-term assets |
|
(2,438 |
) |
|
|
(7,913 |
) |
|
Accounts payable |
|
580 |
|
|
|
(110 |
) |
|
Accrued expenses |
|
(1,951 |
) |
|
|
117 |
|
|
Operating lease liability |
|
(122 |
) |
|
|
(175 |
) |
|
Other liabilities, current |
|
(590 |
) |
|
|
680 |
|
|
Other liabilities, long-term |
|
(14 |
) |
|
|
(48 |
) |
|
Net cash used in operating activities |
|
(16,735 |
) |
|
|
(19,067 |
) |
|
Cash flows from investing activities |
|
|
|
|||||
Purchases of property, plant, and equipment |
|
(1,939 |
) |
|
|
(40,963 |
) |
|
Purchases of marketable securities |
|
(443,475 |
) |
|
|
(1,028,600 |
) |
|
Sales of marketable securities |
|
441,432 |
|
|
|
1,000,712 |
|
|
Maturities of marketable securities |
|
13,317 |
|
|
|
67,021 |
|
|
Net cash provided by (used in) investing activities |
|
9,335 |
|
|
|
(1,830 |
) |
|
Cash flows from financing activities |
|
|
|
|||||
Payment of notes payable short-term |
|
(1,532 |
) |
|
|
— |
|
|
Proceeds from Canadian Government Research and Development Program |
|
8,097 |
|
|
|
10 |
|
|
Proceeds from exercise of stock options |
|
83 |
|
|
|
23 |
|
|
Net cash provided by financing activities |
|
6,648 |
|
|
|
33 |
|
|
Effects of foreign exchange rate changes on the balance of cash and cash equivalents, and restricted cash held in foreign currencies |
|
1,023 |
|
|
|
(40 |
) |
|
Net increase (decrease) in cash and cash equivalents, and restricted cash |
|
271 |
|
|
|
(20,904 |
) |
|
Cash and cash equivalents, and restricted cash, beginning of the period |
|
75,502 |
|
|
|
108,348 |
|
|
Cash and cash equivalents, and restricted cash, end of the period |
$ |
75,773 |
|
|
$ |
87,444 |
|
Origin Materials, Inc. |
||||||||
Reconciliation of GAAP and Non-GAAP Results |
||||||||
|
Three months ended March 31, |
|||||||
(in thousands) |
2024 |
|
2023 |
|||||
Net (loss) income |
$ |
(13,913 |
) |
|
$ |
9,769 |
|
|
Stock-based compensation |
|
2,781 |
|
|
|
2,246 |
|
|
Depreciation and amortization |
|
2,311 |
|
|
|
288 |
|
|
Interest income |
|
(1,864 |
) |
|
|
(3,014 |
) |
|
Interest expense |
|
117 |
|
|
|
— |
|
|
Gain in fair value of derivatives |
|
(296 |
) |
|
|
(760 |
) |
|
Gain in fair value of common stock warrants liability |
|
(649 |
) |
|
|
(6,766 |
) |
|
Gain in fair value of earnout liability |
|
(1,518 |
) |
|
|
(12,872 |
) |
|
Other expenses, net |
|
8 |
|
|
|
1,368 |
|
|
Income tax expenses |
|
118 |
|
|
|
— |
|
|
Adjusted EBITDA |
$ |
(12,905 |
) |
|
$ |
(9,741 |
) |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240514990904/en/
Origin Materials
Investors:
ir@originmaterials.com
Media:
media@originmaterials.com
Source: Origin Materials, Inc.
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