Danimer Scientific Inc (DNMR) 2024 Q3 法說會逐字稿

Greetings. Welcome to the Danimer Scientific 2024 third-quarter earnings call. I would now like to turn the presentation over to Mr. Blake Chamblee, the company's Investor Relations representative.

問候。歡迎參加 Danimer Scientific 2024 年第三季財報電話會議。現在，我想將演講交給公司投資者關係代表 Blake Chamblee 先生。

Thank you, operator. Good morning, everyone, and thank you for joining us today on Danimer Scientific's 2024 third-quarter earnings call. On today's call, Interim Chief Executive Officer, Rich Altice; and Chief Financial Officer, Mike Hajost will provide information about our third-quarter performance and expectations for the remainder of the year. We will not be hosting a question-and-answer session during today's call.

謝謝您，接線生。大家早安，感謝您今天參加 Danimer Scientific 2024 年第三季財報電話會議。在今天的電話會議上，臨時執行長 Rich Altice 和財務長 Mike Hajost 將提供有關我們第三季業績以及今年剩餘時間預期的資訊。今天的電話會議中我們不會舉辦問答環節。

I'd like to note the slide deck that accompanies today's discussion, which is available on the Investor Relations section of our website at danimerscientific.com. As we begin, I'll call your attention to the company's safe harbor language, which is published in our SEC filings and on slide 2 of the presentation I just referenced.

我想提一下今天討論的幻燈片，可以在我們網站 danimerscientific.com 的「投資者關係」版塊找到。首先，我想提請大家注意一下公司的安全港條款，它已發佈在我們提交給美國證券交易委員會 (SEC) 的文件中，以及我剛才提到的簡報的第二張幻燈片中。

On today's call, we may discuss forward-looking statements within the meaning of the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995 as amended. Forward-looking statements include, among other things, statements regarding future results of operations, including margins, profitability, capacity, production, customer programs, and market demand levels.

在今天的電話會議上，我們可能會討論 1995 年《私人證券訴訟改革法》（經修訂）安全港條款含義內的前瞻性陳述。前瞻性陳述包括但不限於有關未來營運績效的陳述，包括利潤率、獲利能力、產能、產量、客戶計畫和市場需求水準。

Actual results could differ materially from what is expressed or implied in our forward-looking statements. The company assumes no obligation to update any forward-looking statements to reflect events or circumstances after the date hereof, except as required by law.

實際結果可能與我們的前瞻性陳述中表達或暗示的結果有重大差異。除法律要求外，本公司不承擔更新任何前瞻性陳述以反映本文日期之後的事件或情況的義務。

Today's presentation also includes references to non-GAAP financial measures within the meaning of SEC Regulation G. We believe these non-GAAP measures have analytical value but note that they should be taken as supplementary measures of performance and not as alternative to GAAP results. We have provided reconciliations for non-GAAP financial measures to the most comparable GAAP financial measures in our earnings release and our presentation.

今天的演示也引用了美國證券交易委員會 G 條例所定義的非公認會計準則 (non-GAAP) 財務指標。我們認為這些非公認會計準則 (non-GAAP) 指標具有分析價值，但請注意，它們應被視為績效的補充指標，而不是公認會計準則 (GAAP) 結果的替代指標。我們在收益報告和簡報中提供了非 GAAP 財務指標與最具可比性的 GAAP 財務指標的對帳。

Thank you. And it's now my pleasure to turn the call over to Rich Altice, Interim Chief Executive Officer of Danimer Scientific.

謝謝。現在我很高興將電話轉給 Danimer Scientific 臨時執行長 Rich Altice。

Good morning, and thank you for joining us. Before I get into the third-quarter results, I'd like to take a moment to introduce myself to share more about the opportunity I see for Danimer. I joined Danimer's Board of Directors in April of this year after having retired from serving as President and CEO of NatureWorks, a leading global biopolymer company for five years.

早安，感謝您加入我們。在介紹第三季業績之前，我想花點時間介紹一下自己，以便更多地分享我看到的 Danimer 的機會。今年 4 月，我加入了 Danimer 董事會，此前我曾擔任全球領先的生物聚合物公司 NatureWorks 的總裁兼執行長五年。

I believe my experience provides me with a deep understanding of the industry and the critical role that biodegradable materials will play to address some of the world's most pressing environmental challenges, which are posed by petroleum-based single-use plastics.

我相信我的經驗使我對這個行業以及可生物降解材料在解決世界上一些最緊迫的環境挑戰（由石油基一次性塑膠帶來）方面將發揮的關鍵作用有了深刻的理解。

Danimer is in a unique position to address these challenges. Since joining Danimer as the interim CEO in mid-October, I've spent time personally meeting with all of our teammates across our locations. I wanted to hear directly from them and also assess our talent, technology and capabilities.

丹尼默 (Danimer) 擁有獨特的優勢來應對這些挑戰。自 10 月中旬加入 Danimer 擔任臨時執行長以來，我花了一些時間親自與我們各地的所有隊友會面。我希望直接聽取他們的意見並評估我們的人才、技術和能力。

I have met or spoken with most of our key customers and have learned a great deal about their commitment to sustainability and how they value Danimer's products to achieve those commitments. I've come away from these sessions even more convinced that Danimer Scientific has what is needed to succeed.

我已經與我們的大多數主要客戶見過面或交談過，並了解到許多關於他們對永續發展的承諾以及他們如何重視 Danimer 的產品以實現這些承諾。透過這些會議，我更加確信 Danimer Scientific 擁有成功所需的一切。

We have a talented and committed team, extraordinary technology, and an unmatched product offering. I'm excited to build on that foundation as we execute on our commercial plan, bolster our innovation, and position the company for long-term growth.

我們擁有一支才華橫溢、盡職盡責的團隊、卓越的技術和無與倫比的產品。我很高興能在此基礎上繼續推進我們的商業計劃，加強我們的創新，並為公司的長期發展做好準備。

While I remain focused on leaving Danimer on an interim basis, our search for a permanent CEO continues. The executive committee has made significant progress on its search, which includes internal and external candidates, and we have retained a nationally recognized executive search firm to support the process.

雖然我仍然專注於暫時離開 Danimer，但我們仍在繼續尋找永久的執行長。執行委員會在尋找內部和外部候選人方面取得了重大進展，我們聘請了一家全國知名的高階主管搜尋公司來支持這項進程。

Now I'd like to share an update on our third quarter, starting with some exciting commercial updates. Our significant cutlery award from a large global QSR chain continues to progress well and is in line with the end customers ramp plan. This QSR plans to completely phase out petroleum-based plastic in favor of bio-based and biodegradable plastic for single-use cutlery across all of its US-based restaurants by the end of 2025.

現在我想分享我們第三季的最新消息，首先是一些令人興奮的商業更新。我們從一家大型全球 QSR 連鎖店獲得的重要餐具獎項進展順利，並符合最終客戶的提升計畫。該快餐店計劃在 2025 年底前在其所有美國餐廳中徹底淘汰石油基塑料，轉而使用生物基和可生物降解塑料作為一次性餐具。

We are very proud to be a critical part of that initiative. All of our converter partners selected for this initiative have received initial sets of cutlery molds with additional molds currently in production.

我們非常自豪能夠成為該計劃的重要組成部分。我們為這項計劃選定的所有轉換合作夥伴都已收到初始餐具模具，並且目前正在生產其他模具。

Now as a reminder, these cutlery molds enable converters to run Nodax-based PHA resins on their existing equipment, and these molds are being funded by the end customer, reflecting their commitment to this program. At full run rate, we will supply 20 million pounds of resin for cutlery and 3 million pounds of resin for cutlery wrappers annually.

現在提醒一下，這些餐具模具使轉換器能夠在其現有設備上運行基於 Nodax 的 PHA 樹脂，並且這些模具由最終客戶資助，反映了他們對該計劃的承諾。在滿載運轉的情況下，我們每年將供應 2,000 萬磅餐具樹脂和 300 萬磅餐具包裝樹脂。

To date, we have received orders for over 250,000 pounds of cutlery and film resin and converters have already delivered cutlery to customer distribution centers. We continue to expect this award to reach full run rate in mid-2025.

到目前為止，我們已經收到超過 250,000 磅餐具和薄膜樹脂的訂單，並且轉換器已經將餐具運送到客戶配送中心。我們仍然預計該獎項將在 2025 年中期達到滿額運行率。

Additionally, I was thrilled to meet with our converter partner, Eagle Beverage and was quite impressed while touring their recently opened state-of-the-art injection molding facility. This facility is dedicated to using our Nodax-based PHA resin to manufacture of single-use forks, knives and spoons. Eagle Beverage has already begun shipping these innovative products to customers demonstrating the immediate market readiness for PHA-based cutlery.

此外，我很高興與我們的轉換合作夥伴 Eagle Beverage 會面，並在參觀他們最近開放的最先進的注塑工廠時留下了深刻的印象。該工廠致力於使用我們基於 Nodax 的 PHA 樹脂製造一次性叉子、刀子和湯匙。Eagle Beverage 已經開始向客戶運送這些創新產品，表明基於 PHA 的餐具已做好立即進入市場的準備。

Our partnership with Delta Cafes continues to progress, and we have recently completed our second commercial shipment of compostable single-use coffee pod capsule resin. These pods are in full compliance with proposed new EU regulations requiring any coffee pod sold to meet new compostability standards.

我們與 Delta Cafes 的合作持續進展，最近我們完成了第二次可堆肥一次性咖啡膠囊樹脂的商業運輸。這些咖啡包完全符合歐盟新提出的法規，要求出售的任何咖啡包都必須符合新的可堆肥性標準。

Our partnership with WinCup also continues to grow as they continue to expand their phade brand to include not just the blue straws that you are familiar with, but also cutlery cups and cup lids. Finally, we are also excited to announce that our partnership with Mars Wrigley has resulted in a soft launch of 100% compostable skittles bag, made with our Nodax PHA-based resin. These skittle bags made an appearance during a Seattle Seahawks football game in October which featured over 40,000 compostable bags.

隨著 WinCup 不斷擴大其 phade 品牌，不僅包括您熟悉的藍色吸管，還包括餐具杯和杯蓋，我們與 WinCup 的合作關係也在不斷發展。最後，我們也很高興地宣布，我們與瑪氏箭牌的合作已成功推出由我們的 Nodax PHA 基樹脂製成的 100% 可堆肥的彩虹糖袋。這些保齡球袋在 10 月西雅圖海鷹隊的一場足球比賽中亮相，比賽使用了超過 40,000 個可堆肥袋。

Now I'd like to turn to our third-quarter results and near-term developments. Our third quarter results were consistent with our expectations, considering the temporary impact of Starbucks reapportionment of their Nodax-based PHA straw business between our converting partners. This reapportionment led to significant disruptions in order patterns, which had a negative impact on our results in the third quarter.

現在我想談談我們第三季的業績和近期發展。考慮到星巴克在我們的轉換合作夥伴之間重新分配其基於 Nodax 的 PHA 吸管業務的暫時影響，我們的第三季業績與我們的預期一致。這種重新分配導致訂單模式嚴重中斷，對我們第三季的業績產生了負面影響。

We believe these headwinds are now behind us. And it is also important to reiterate that we partner closely with both converters and continue to retain 100% of the Nodax-PHA-based straw business from Starbucks. The progress we've made with our commercial partners demonstrates the significant opportunities ahead and underscore our expectations to grow the business in 2025 and beyond.

我們相信這些不利因素已經過去了。同樣需要重申的是，我們與兩家加工商密切合作，並繼續保留星巴克 100% 的 Nodax-PHA 吸管業務。我們與商業夥伴所取得的進展顯示了未來的巨大機遇，並強調了我們對 2025 年及以後業務成長的期望。

While we remain focused on executing these commercial opportunities, we are mindful of managing our indebtedness levels and near-term constraints on liquidity as we enter our significant commercial ramp up over the next 12 months. As Mike will share in further detail, we have taken actions to reduce our operating costs. And in light of our substantial leverage position, we continue to analyze a variety of transactions and mechanisms designed to reduce debt and provide additional liquidity.

雖然我們仍然專注於執行這些商業機會，但隨著我們在未來 12 個月內進入重要的商業成長階段，我們會注意管理我們的負債水準和短期流動性限制。正如 Mike 進一步分享的那樣，我們已經採取行動來降低營運成本。鑑於我們龐大的槓桿地位，我們繼續分析旨在減少債務和提供額外流動性的各種交易和機制。

I will now turn the call over to Mike Hajost, our Chief Officer, to update you on the financial results for the third quarter of 2024.

現在，我將把電話轉給我們的首席官 Mike Hajost，讓他向您通報 2024 年第三季的財務表現。

Thank you, Rich, and good morning, everyone. I'll start with our financial results on slide 4 of our presentation for those of you following along. Total revenue was $8.6 million in the third quarter, which was down from $10.9 million in the prior year quarter.

謝謝你，Rich，大家早安。為了讓大家跟著看，我將從簡報第 4 張投影片上的財務結果開始介紹。第三季總營收為 860 萬美元，低於去年同期的 1,090 萬美元。

PHA-based resin sales of $6.7 million decreased by 22% or $1.8 million in the third quarter of 2024 compared to the prior year, which was primarily driven by Starbucks reallocation of a straw resin business that Rich just mentioned. PLA-based resin sales of $1.3 million decreased compared to the prior year and is in line with our previous guidance around our go-forward PLA run rate.

2024 年第三季度，PHA 基樹脂的銷售額為 670 萬美元，與前一年相比下降了 22%，即 180 萬美元，這主要是由於 Rich 剛才提到的星巴克重新分配了秸稈樹脂業務。PLA 基樹脂的銷售額為 130 萬美元，與前一年相比有所下降，這與我們先前對未來 PLA 運行率的預期一致。

Third-quarter 2024 PHA sales represented approximately 83% of product sales. We reported a third-quarter 2024 gross loss of $7.3 million, which is in line with the prior year quarter's gross loss of $7.7 million. After adjusting for depreciation and stock-based compensation, we reported an adjusted gross loss of $2.3 million this quarter compared to an adjusted gross loss of $2.6 million in the prior year quarter.

2024 年第三季 PHA 銷售額約佔產品銷售額的 83%。我們報告 2024 年第三季毛虧損為 730 萬美元，與去年同期 770 萬美元的毛虧損持平。經折舊和股票薪酬調整後，本季調整後毛虧損為 230 萬美元，而去年同期調整後毛虧損為 260 萬美元。

R&D and SG&A expenses, excluding depreciation, amortization, stock-based compensation and certain nonrecurring items totaled $6.6 million in the third quarter of 2024 which was in line with the third quarter of last year. We continue to pursue cost savings initiatives across many areas of the business.

2024 年第三季度，研發和銷售、一般及行政費用（不包括折舊、攤提、股票薪酬和某些非經常性項目）總計 660 萬美元，與去年第三季度持平。我們將繼續在業務的眾多領域推行成本節約舉措。

Adjusted EBITDA loss was $8.9 million in the third quarter of 2024, an improvement over a loss of $9.3 million in the third quarter of 2023. Adjusted EBITDA excludes stock-based compensation, depreciation, amortization, interest and other nonrecurring items as reconciled in the appendix.

2024 年第三季調整後 EBITDA 虧損為 890 萬美元，較 2023 年第三季 930 萬美元的虧損有所改善。調整後的 EBITDA 不包括股票薪酬、折舊、攤提、利息和其他附錄中核對的非經常性項目。

Unrestricted cash and cash equivalents were $22.2 million at the end of the third quarter. Restricted cash as of September 30, 2024, was $14.1 million and is mainly held for future interest payments under our senior secured term loan.

第三季末，非限制現金和現金等價物為 2,220 萬美元。截至 2024 年 9 月 30 日，受限現金為 1,410 萬美元，主要用於支付我們優先擔保定期貸款的未來利息。

We had $4.8 million in excess availability on a revolving asset-based lending credit agreement at the end of the third quarter. Capital expenditures were $2.8 million in the current third quarter and $2.7 million in the prior-year third quarter.

截至第三季末，我們在循環資產抵押貸款信貸協議上有 480 萬美元的超額可用資金。本季資本支出為 280 萬美元，去年同期資本支出為 270 萬美元。

We ended the third quarter with a total debt balance of $387.9 million, comprised mainly of our convertible senior notes, our senior secured term loan, our revolving asset-based credit agreement and $46 million of our new market tax credit loans, which we expect will be forgiven starting in 2026.

截至第三季度，我們的總債務餘額為 3.879 億美元，主要包括可轉換優先票據、優先擔保定期貸款、循環資產信貸協議以及 4,600 萬美元的新市場稅收抵免貸款，我們預計這些貸款將從 2026 年開始免除。

As Rich noted, liquidity remains a significant focus for us as we seek to manage cash while we ramp up our sales. In order to preserve cash until these expected sales reach their full potential, we have implemented run rate cost savings in excess of $20 million since early 2022 across all areas of the business. This includes reductions in discretionary spending, reduced labor costs through employee headcount rationalization, and the temporary suspension of operations at our Danimer Catalytic Technologies business.

正如里奇所指出的，在我們尋求管理現金的同時提高銷售額，流動性仍然是我們關注的重點。為了保留現金直到這些預期銷售額充分發揮其潛力，自 2022 年初以來，我們在所有業務領域實施了超過 2,000 萬美元的營運成本節約。其中包括減少可自由支配的開支、透過合理化員工人數來降低勞動成本、以及暫停 Danimer Catalytic Technologies 業務的營運。

We have also heightened our focus on collections and accounts receivable, launched an initiative to reduce on-hand inventory levels, and optimized spending on capital projects. Additionally, continue to analyze a variety of transactions and mechanisms designed to reduce debt and provide sources of incremental liquidity.

我們也更重視收款和應收帳款，啟動了降低庫存水準的計劃，並優化了資本項目支出。此外，繼續分析旨在減少債務和提供增量流動性來源的各種交易和機制。

Such transactions will depend on prevailing market conditions, our liquidity requirements, contractual restrictions, various required consents, and other factors. These measures may not be successful, and we will continue to evaluate all available actions to address our liquidity.

此類交易將取決於當前的市場條件、我們的流動性要求、合約限制、各種所需的同意以及其他因素。這些措施可能不會成功，我們將繼續評估所有可用的措施來解決我們的流動性問題。

Let me now provide an update to our full-year 2024 guidance expectations. Our year-to-date adjusted EBITDA through the third quarter is minus $27.4 million. We expect our fourth quarter adjusted EBITDA to be between a range of minus $7 million and minus $7.5 million, resulting in a full year adjusted EBITDA total of minus $34.4 million to minus $34.9 million, which is within the previous guidance range of minus $30 million to minus $35 million.

現在，讓我更新我們對 2024 年全年的指導預期。截至第三季度，我們的年初至今調整後的 EBITDA 為負 2,740 萬美元。我們預計第四季度調整後的 EBITDA 將在負 700 萬美元至負 750 萬美元之間，導致全年調整後的 EBITDA 總額將為負 3440 萬美元至負 3490 萬美元，在之前預測的負 3000 萬美元至負 3500 萬美元範圍內。

We have managed our capital expenditures very carefully and now expect full year CapEx will be between $8 million to $9 million within the previously disclosed guidance range of $8 million to $10 million. This range will support existing commitments related to the Bainbridge greenfield facility, maintenance expenditures and other capital projects. Given ongoing efforts to analyze a variety of transactions and mechanisms designed to provide additional liquidity, the company is not providing a year-end 2024 liquidity outlook at this time.

我們非常謹慎地管理我們的資本支出，現在預計全年資本支出將在 800 萬至 900 萬美元之間，在之前披露的 800 萬至 1000 萬美元的指導範圍內。該範圍將支持與班布里奇綠地設施、維護支出和其他資本項目相關的現有承諾。鑑於持續努力分析旨在提供額外流動性的各種交易和機制，該公司目前不提供 2024 年底流動性展望。

I'll now hand the call back to Rich for his closing remarks.

現在我將把電話交還給里奇，請他作最後發言。

Thanks, Mike. Thanks to the hard work of our team, we have made considerable progress on our commercial plan and are set to grow in 2025 and beyond. We have many exciting opportunities ahead for our shareholders, customers, communities, and teammates as we play our part in addressing some of the world's most pressing environmental challenges.

謝謝，麥克。感謝我們團隊的辛勤工作，我們的商業計劃取得了長足的進展，並預計在 2025 年及以後實現成長。當我們在應對世界上一些最緊迫的環境挑戰時，我們為股東、客戶、社區和隊友提供了許多令人興奮的機會。

I'm confident that we'll be able to maintain our momentum and meet our commercial commitments while we take steps to improve our financial position. Thank you to everyone listening to today's call for your attention and your continued support.

我相信，我們將能夠保持發展勢頭並履行商業承諾，同時採取措施改善財務狀況。感謝今天聆聽呼籲的所有人，感謝你們的關注和持續支持。

That concludes today's conference call. Thank you for joining.

今天的電話會議到此結束。感謝您的加入。