Aspen Aerogels, Inc. Reports Fourth Quarter and Fiscal Year 2023 Financial Results and Recent Business Highlights
Total revenue for the fourth quarter of 2023 was
Total revenue for the full year 2023 was
Fourth Quarter 2023 Financial Highlights
-
Record Company revenues of$84.2 million , up 39% quarter-over-quarter (QoQ) and 41% year-over-year (YoY)- Thermal Barriers:
$52.9 million of revenue, up 61% QoQ and 110% YoY Energy Industrial :$31.3 million of revenue, up 12% QoQ and supply constrained to a 9% YoY reduction
- Thermal Barriers:
- Delivered gross margins of 35%, a twelve-percentage point improvement QoQ
- Adjusted EBITDA of
$9.1 million , a$16.4 million improvement QoQ and$13.6 million improvement YoY - Operating Income of
$1.4 million , a$16.0 million improvement QoQ and$11.0 million improvement YoY - Net loss of
$0.5 million , a$12.6 million improvement QoQ and$9.1 million improvement YoY
Full Year 2023 Financial Highlights
- Total revenue of
$238.7 million , up by 32% YoY and 1.96X versus 2021 revenues- Thermal Barriers:
$110.1 million of revenue, up 98% YoY Energy Industrial : Supply constrained to$128.6 million of revenue, up 3% YoY
- Thermal Barriers:
- Delivered gross margins of 24%, a twenty-one-percentage point improvement over 2022, with a quarterly progression from 11% in Q1 to 17% in Q2, 23% in Q3, and 35% in Q4
- Adjusted EBITDA of
$(22.9) million , a$37.7 million YoY improvement and a$12.1 million improvement from midpoint of the outlook range of$(30.0) million to$(40.0) million provided onOctober 23 rd, 2023 - Net loss of
$45.8 million , a$36.9 million improvement YoY - Capital expenditures of
$175.5 million , a$2.5 million reduction versus 2022 - Ended the year with cash and equivalents of
$139.7 million - Initial 2023 outlook comparison:
($ in millions, except per share amounts) |
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Metric |
Initial 2023 Outlook (2/15/2023) |
Full Year 2023 Results |
Improvement vs Midpoint |
Revenue |
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Adjusted EBITDA |
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Net (Loss) |
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Net (Loss) Per Share |
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CAPEX |
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A reconciliation of net loss to non-GAAP Adjusted EBITDA is provided in the financial schedules that are part of this press release. An explanation of this non-GAAP financial measure is also included below under the heading "Non-GAAP Financial Measures."
Recent Business Developments
- Successfully delivered
$3.1 million inEnergy Industrial products to customers through its supplemental supply in the fourth quarter of 2023 - PyroThin vehicle platform award from
The Automotive Cells Company ("ACC"), a battery cell joint venture between Stellantis N.V., Saft-Total Energies, and Mercedes-Benz, to supply the Stellantis STLA Medium vehicle platform with an expected start of production in 2025, as previously announced onDecember 5 th, 2023 - Invited into the formal due diligence and term sheet negotiation phase by the
U.S. Department of Energy ("DOE ") Loan Programs Office ("LPO") in connection with the company's pending application seeking a loan pursuant to the DOE LPO's Advanced Technology Vehicles Manufacturing Loan Program for the construction of our planned Second Aerogel Plant inStatesboro, GA , as previously announced onDecember 5 th, 2023 - Completed
$75 million registered direct offering of common stock at$12.375 per share inDecember 2023 - In connection with General Motors' Supplier Pledge,
Aspen's sustainability performance was re-assessed byEcoVadis and, for the second consecutive year,Aspen was awarded aSilver Medal rating inFebruary 2024 for its overall sustainability scorecard, placingAspen in the 85th percentile of companies assessed byEcoVadis
"Our team has effectively delivered on the main execution milestones that we targeted for 2023 while building a company that can rapidly scale to profitability. We believe that further diversifying our EV Thermal Barrier customer base will drive our growth beyond 2024 and validate our recent investments in this segment.
2024 Financial Outlook
- Total revenue is expected to be at least
$350 million , with approximately$150 million inEnergy Industrial revenues, and$200 million in Thermal Barrier revenues - Adjusted EBITDA is expected to be at least
$30 million - Net loss is expected to be under
$23 million - Net loss per share is expected to be under
$0.30 - Capital Expenditures, excluding investments in Plant II, are expected to be
$50 million - Capital Expenditures for Plant II in the first half of 2024 are expected to be
$30 million , with an additional$15 million for the second half of 2024, assuming continued construction right-timing
The Company's 2024 outlook assumes depreciation and amortization of
A reconciliation of net loss to non-GAAP Adjusted EBITDA for the 2024 financial outlook is provided in the financial schedules that are part of this press release. An explanation of this non-GAAP financial measure is also included below under the heading "Non-GAAP Financial Measures."
Conference Call and Webcast Notification
A conference call with
Shareholders and other interested parties may call +1 (833) 470-1428 (domestic) or +1 (929) 526-1599 (international) and reference conference ID "939782" to participate in the conference call. In addition, the conference call and an accompanying slide presentation will be available live as a listen-only webcast hosted at the Investors section of
Following the live event, an archived version of the webcast will be available on
Non-GAAP Financial Measures
In addition to providing financial measurements based on generally accepted accounting principles in
Management believes that this non-GAAP financial measure reflects
The non-GAAP financial measure does not replace the presentation of
About
Special Note Regarding Forward-Looking and Cautionary Statements
This press release and any related discussion contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties that could cause actual results to be materially different from historical results or from any future results expressed or implied by such forward-looking statements, including statements relating to
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Condensed Consolidated Balance Sheets |
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(Unaudited and in thousands) |
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2023 |
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2022 |
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(In thousands) |
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Assets |
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Current assets: |
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Cash and cash equivalents |
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$ |
139,723 |
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$ |
281,335 |
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Restricted cash |
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248 |
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1,226 |
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Accounts receivable, net |
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69,995 |
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57,350 |
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Inventories |
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39,189 |
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22,538 |
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Prepaid expenses and other current assets |
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17,176 |
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7,236 |
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Total current assets |
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266,331 |
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369,685 |
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Property, plant and equipment, net |
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417,227 |
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259,223 |
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Operating lease right-of-use assets |
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17,212 |
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11,990 |
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Other long-term assets |
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2,278 |
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2,518 |
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Total assets |
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$ |
703,048 |
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$ |
643,416 |
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Liabilities and Stockholders' Equity |
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Current liabilities: |
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Accounts payable |
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$ |
51,094 |
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$ |
54,728 |
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Accrued expenses |
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22,811 |
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16,003 |
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Deferred revenue |
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2,316 |
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5,846 |
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Operating lease liabilities |
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1,874 |
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2,368 |
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Total current liabilities |
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78,095 |
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78,945 |
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Convertible note - related party |
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114,992 |
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103,580 |
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Operating lease liabilities long-term |
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21,906 |
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13,456 |
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Total liabilities |
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214,993 |
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195,981 |
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Stockholders' equity: |
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Total stockholders' equity |
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488,055 |
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447,435 |
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Total liabilities and stockholders' equity |
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$ |
703,048 |
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$ |
643,416 |
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Consolidated Statements of Operations |
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(Unaudited and in thousands, except share and per share data) |
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Three Months Ended |
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Year Ended |
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2023 |
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2022 |
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2023 |
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2022 |
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(In thousands, except |
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Revenue |
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$ |
84,219 |
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$ |
59,611 |
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$ |
238,718 |
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$ |
180,364 |
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Cost of revenue |
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54,601 |
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45,277 |
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181,797 |
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175,388 |
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Gross profit |
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29,618 |
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14,334 |
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56,921 |
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4,976 |
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Operating expenses: |
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Research and development |
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4,075 |
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4,197 |
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16,356 |
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16,930 |
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Sales and marketing |
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8,782 |
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7,848 |
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33,008 |
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28,792 |
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General and administrative |
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15,378 |
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11,955 |
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56,760 |
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38,499 |
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Total operating expenses |
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28,235 |
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24,000 |
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106,124 |
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84,221 |
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Loss from operations |
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1,383 |
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(9,666) |
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(49,203) |
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(79,245) |
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Other income (expense) |
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Interest expense, convertible note - related party |
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(2,904) |
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(1,007) |
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(5,328) |
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(5,110) |
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Interest income, net |
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1,002 |
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1,064 |
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6,534 |
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1,617 |
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Income from Employee Retention Credits |
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- |
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- |
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2,186 |
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- |
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Total other income (expense), net |
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(1,902) |
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57 |
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3,392 |
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(3,493) |
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Net loss |
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$ |
(519) |
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$ |
(9,609) |
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$ |
(45,811) |
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$ |
(82,738) |
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Net loss per share: |
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Basic and diluted |
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$ |
(0.01) |
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$ |
(0.20) |
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$ |
(0.66) |
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$ |
(2.10) |
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Weighted-average common shares outstanding: |
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Basic and diluted |
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70,018,243 |
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49,200,713 |
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69,439,034 |
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39,363,114 |
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Analysis of Cash Flow
The following table summarizes our cash flows for the periods indicated.
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Three Months Ended |
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(In thousands) |
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Net cash provided by (used in): |
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Operating activities |
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$ |
(24,651) |
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$ |
(7,680) |
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$ |
(7,502) |
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$ |
(2,779) |
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Investing activities |
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(49,378) |
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(66,012) |
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(32,279) |
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(27,786) |
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Financing activities |
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(364) |
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142 |
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126 |
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75,573 |
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Net (decrease) increase in cash |
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(74,393) |
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(73,550) |
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(39,655) |
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45,008 |
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Cash, cash equivalents and restricted cash at beginning of period |
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282,561 |
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208,168 |
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134,618 |
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94,963 |
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Cash, cash equivalents and restricted cash at end of period |
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$ |
208,168 |
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$ |
134,618 |
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$ |
94,963 |
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$ |
139,971 |
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Square Foot Operating Metric
The following chart sets forth
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Three Months Ended |
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Year Ended |
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2023 |
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2022 |
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2023 |
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2022 |
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(In thousands) |
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6,055 |
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8,824 |
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28,392 |
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32,589 |
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Reconciliation of Non-GAAP Financial Measures
The following tables present a reconciliation of the non-GAAP financial measure included in this press release to the most directly comparable GAAP measure:
Reconciliation of Adjusted EBITDA to Net loss
We define Adjusted EBITDA as net income (loss) before interest expense, taxes, depreciation, amortization, stock-based compensation expense and other items, which occur from time to time and which we do not believe are indicative of our core operating performance.
For the three and twelve months ended
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Three Months Ended |
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Year Ended |
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2023 |
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2022 |
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2023 |
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2022 |
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(In thousands) |
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Net loss |
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$ |
(519) |
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$ |
(9,609) |
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$ |
(45,811) |
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$ |
(82,738) |
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Depreciation and amortization |
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4,561 |
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2,530 |
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15,318 |
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9,222 |
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Stock-based compensation |
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3,188 |
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2,672 |
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10,954 |
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9,385 |
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Other (income) expense |
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1,902 |
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(57) |
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(3,392) |
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3,493 |
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Adjusted EBITDA |
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$ |
9,132 |
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$ |
(4,464) |
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$ |
(22,931) |
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$ |
(60,638) |
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For the 2024 full year financial outlook:
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Year Ending |
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Baseline |
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(In thousands) |
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Net loss |
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$ |
(23,000) |
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Depreciation and amortization |
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30,000 |
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Stock-based compensation |
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14,000 |
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Other (income) expense |
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9,000 |
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Adjusted EBITDA |
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$ |
30,000 |
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