– Origin 2 Site Selected in Geismar, Louisiana
–
– Origin to Receive $400 Million Private
Activity Bond Volume Cap Allocation and State and Local Incentives
Worth More Than $100 Million, Subject to Finalization –
– 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 $5.6 Billion –
– Reaffirms 2022 Adjusted EBITDA Forecast Loss
of $36 Million –
Origin Materials, Inc. (“Origin,” “Origin Materials,” or the
“Company”) (Nasdaq: ORGN, ORGNW), the world’s leading carbon
negative materials company with a mission to enable the world’s
transition to sustainable materials, today announced financial
results for its fourth quarter and year ended December 31,
2021.
“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 Geismar, Louisiana
for Origin 2’s location, subject to finalization of economic
incentives, and are announcing today the selection of Hunt, Guillot
& Associates as the project’s owner’s engineer. After the close
of the fourth quarter, we were also pleased to announce new
strategic partnerships with Mitsui & Co., Ltd. and Minafin
Group, both of which will increase our exposure to a multitude of
consumer and industrial end-markets while also expanding our
international footprint in Asia and Europe. The demand for ‘net
zero’-enabling materials remains strong, and our efforts to
commercialize the business have resulted in increased offtake
agreements and capacity reservations from our customers and
partners to $5.6 billion. This has more than quintupled since our
announcement to become a public company in February 2021,” said
Rich Riley, Co-Chief Executive Officer of Origin.
Key Company Q4 Highlights
Origin Materials has increased its total signed offtake
agreements and capacity reservations to $5.6 billion from $4.2
billion in November 2021. The Company also implemented new and
expanded partnerships and customer relationships, including:
- 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 State of Louisiana,
pending finalization, is expected to award a Private Activity Bond
volume cap allocation to Origin in the amount of $400 million.
Private Activity Bonds are tax-exempt bonds authorized by state and
local governments for the financing of qualified projects with
private capital. Origin also expects to receive more than $100
million in pending state and local incentives.
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 $400 million Private
Activity Bond allocation from the State of Louisiana provides a
strong foundation for the financing of Origin 2, and, in
combination with certain 2021 Infrastructure Investment and Jobs
Act (“IIJA”) provisions, could enable the debt financing of Origin
2 using entirely tax-exempt bonds. Origin also continues to work
with leading financial institutions on other forms of traditional
private financing and federal loan programs, including through the
U.S.D.A. and Department of Energy.
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 April 2021. As previously disclosed, the key
production modules were lifted and installed in October 2021, six
months ahead of the Company’s plan announced in April 2021. In
addition, piping fabrication has begun earlier this year, nearly
six months ahead of the schedule announced in April 2021, further
de-risking the schedule.
Similarly, Origin 2 remains on track to be operational by
mid-2025. As previously announced, working with Worley Limited,
Deloitte Consulting, and Fisher International, the Company has
selected Geismar, Louisiana for the site of Origin 2, contingent
upon finalization of economic incentives. The site offers extensive
sustainable wood residue sources, exceptional waterway and rail
logistics, and proximity to potential petrochemical partners and
talent. In addition, Origin has selected Hunt, Guillot &
Associates as its owner’s engineer for Origin 2. Front end design
is underway and Origin expects detailed engineering to begin in
2023.
Results for Fourth Quarter and Full Year 2021
Cash, cash equivalents and marketable securities were $444.6
million as of December 31, 2021.
Operating expenses for the fourth quarter were $7.8 million
compared to $5.5 million in the prior-year period. Full year 2021
operating expenses were $26.9 million compared to $11.2 million in
the prior-year period.
Adjusted EBITDA loss was $6.6 million for the fourth quarter
compared to a loss of $3.8 million in the prior-year period. Full
year 2021 adjusted EBITDA loss was $20.0 million compared to $9.1
million in the prior-year period.
Net income was $5.2 million for the fourth quarter compared to a
net loss of $23.5 million in the prior-year period. Full year 2021
net income was $42.1 million compared to a net loss of $30.3
million in the prior-year period.
Shares outstanding as of December 31, 2021 were 136.8 million
excluding 4.5 million shares held by a certain stockholder that are
subject to forfeiture based on share price performance targets
previously disclosed in our filings.
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
February 24, 2022, 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 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 11:59 p.m. Eastern Time on March 10,
2022.
About Origin Materials, Inc.
Headquartered in West Sacramento, Origin Materials is the
world's leading carbon negative materials company. Origin’s mission
is to enable the world’s transition to sustainable materials. For
over a decade, Origin has developed a platform for turning the
carbon found in inexpensive, plentiful, non-food biomass such as
sustainable wood residues into useful materials while capturing
carbon in the process. Origin’s patented technology platform can
help revolutionize the production of a wide range of end products,
including clothing, textiles, plastics, packaging, car parts,
tires, carpeting, toys, and more with a ~$1 trillion addressable
market. In addition, Origin’s technology platform is expected to
provide stable pricing largely decoupled from the petroleum supply
chain, which is exposed to more volatility than supply chains based
on sustainable wood residues. Origin’s patented drop-in core
technology, economics and carbon impact are supported by a growing
list of major global customers and investors. For more information,
visit www.originmaterials.com.
Non-GAAP Financial Information
To supplement the Company’s financial results presented in
accordance with generally accepted accounting principles in the
United States ("U.S. GAAP"), the Company also uses non-GAAP
financial measures, including adjusted EBITDA, as supplemental
measures to review and assess the Company’s operating performance.
Adjusted EBITDA is defined as net income or loss adjusted for (i)
stock-based compensation expense, (ii) depreciation and
amortization, (iii) interest expense, net of capitalized interest,
(iv) change in fair value of derivative liability, (v) change in
fair value of warrants liability, (vi) change in fair value of
earnout liability, (vii) professional fees related to completed
mergers, and (viii) other income, net. 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 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 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; disruptions and other impacts to
Origin Materials’ business as a result of the COVID-19 pandemic and
other global health or economic crises; changes in customer demand;
and those factors discussed in the Quarterly Report on Form 10-Q
filed with the SEC on November 12, 2021 under the heading “Risk
Factors,” and other documents Origin Materials has filed, or will
file, with the SEC. If any of these risks materialize or our
assumptions prove incorrect, actual results could differ materially
from the results implied by these forward-looking statements. There
may be additional risks that Origin Materials presently does not
know, or that Origin Materials currently believes are immaterial,
that could also cause actual results to differ from those contained
in the forward-looking statements. In addition, forward-looking
statements reflect Origin Materials’ expectations, plans, or
forecasts of future events and views as of the date of this press
release. Origin Materials anticipates that subsequent events and
developments will cause its assessments to change. However, while
Origin Materials may elect to update these forward-looking
statements at some point in the future, Origin Materials
specifically disclaim any obligation to do so. These
forward-looking statements should not be relied upon as
representing Origin Materials’ 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.
Consolidated Balance
Sheets
(Unaudited)
(In thousands,
except share and per share data)
December 31,
2021
December 31,
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
—
Canadian Government Research and
Development Program Liability
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, $0.0001 par value,
10,000,000 shares authorized; no shares issued and outstanding as
of December 31, 2021 and December 31, 2020
—
—
Common stock, $0.0001 par value,
1,000,000,000 shares authorized; 136,801,569 and 70,266,925, issued
and outstanding as of December 31, 2021 and December 31, 2020,
respectively
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
Origin Materials, Inc.
CONSOLIDATED STATEMENTS OF
OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
(Unaudited)
Three Months Ended
December 31,
Year Ended
December 31,
(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
Origin Materials, Inc.
Consolidated Statements of
Cash Flows
(Unaudited)
Year Ended
December 31,
(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 Canadian Government Research
and Development Program
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
Origin Materials, Inc. 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 December
31,
Year ended December
31,
(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
)
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version on businesswire.com: https://www.businesswire.com/news/home/20220224005948/en/
Origin Materials Investors: ir@originmaterials.com
Media: media@originmaterials.com
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