Danimer Scientific (DNMR) Misses Q4 EPS by 25c on Revenues of $12.02M

Danimer Scientific (NYSE: DNMR) reported Q4 EPS of ($0.26), $0.25 worse than the analyst estimate of ($0.01). Revenue for the quarter came in at $12.02 million, versus $8.73 million reported last year.

“I am pleased with our numerous accomplishments during 2020,” commented Stephen E. Croskrey, Chief Executive Officer of Danimer. “We ended the year with an exceptionally strong customer base, a commercial-scale bioplastic technology platform that we believe is unrivaled, and the financial flexibility to move the business forward. Our team overcame logistical challenges related to the pandemic and achieved strong 2020 results. In addition, we were thrilled to become a public company through the completion of our merger with Live Oak in December 2020. This strategic combination provided us with significant financial resources to service our multinational blue chip customers and fuel our capacity expansion objectives. We believe the breadth of opportunities available to us is immense and we are committed to growing our business to build long-term shareholder value.

“As we look forward, our focus will be to further position Danimer for long-term sustainable growth,” added Mr. Croskrey. “We are experiencing intense demand for our Nodax™ PHA technology, which is translating into long-term commitments for our products. Our facility expansions and recently announced planned doubling of our greenfield capacity will further extend the reach of our biodegradable (and compostable) products and help our customers achieve their ESG commitments to reduce plastic waste. In order to capture this remarkable market opportunity, we are utilizing our resources to not only scale our production capacity but also to invest near-term in our operational infrastructure. I look forward to building on our high growth trajectory as we execute our strategy and continue our fight against one of the world’s biggest environmental problems – plastic waste and pollution.”

Business Outlook

As blue chip multinational customers continue to introduce more sustainable alternatives to straws, consumable containers, and flexible packaging, among other products, Danimer has experienced intense demand and accelerating growth for its marine degradable PHA products, the highest standard of biodegradability, which offer a better beginning-of-life and end-of-life cycle solution than any of today’s traditional plastics. Increasing PHA production availability from the completed Phase I capacity expansion at the Kentucky facility is expected to support a significant ramp up in revenue for 2021. The Company expects Adjusted EBITDA and cash flow from operations to benefit in 2021 from operational efficiencies as the Kentucky facility increases utilization levels, with a partial offset from accelerated investments in headcount and technology to build out the public company infrastructure and operational platform needed to support the planned transformational expansion of the production facility network. For the full year 2021, the Company anticipates capital expenditures to be in the range of $100 million to $125 million, primarily to invest in the planned capacity expansions to meet the expected current and long-term demand from its growing customer base.

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