Record revenue of $60.8
million led by PyroThin® revenues of
$32.8 million, up 160%
quarter-over-quarter
Delivered Q3 gross profit margins of 23%, a
6-percentage point improvement over the prior quarter
NORTHBOROUGH, Mass., Nov. 1, 2023
/PRNewswire/ -- Aspen Aerogels, Inc. (NYSE: ASPN) ("Aspen" or the "Company"), a technology leader
in sustainability and electrification solutions, today announced
financial results for the third quarter of 2023, and discussed
recent business developments.
Total revenue for the third quarter of 2023 was $60.8 million, compared to $36.7 million in the third quarter of last year.
Net loss was $13.1 million, compared
to a net loss of $29.6 million in the
third quarter of last year. Net loss per share was $0.19, compared to a net loss per share of
$0.75 in the third quarter of last
year.
Adjusted EBITDA for the third quarter of 2023 was $(7.3) million, compared to $(23.2) million in the third quarter of last
year. 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 Highlights
- Record quarterly Company revenues of $60.8 million
- Achieved PyroThin thermal barrier revenues of $32.8 million in Q3, up 160%
quarter-over-quarter
- Delivered Q3 gross profit margins of 23%, compared to 17% in Q2
2023 and 11% in Q1 2023
- Quarterly Adjusted EBITDA of $(7.3)
million represents a $3.5
million, or 33%, improvement quarter-over-quarter
- Ended third quarter of 2023 with cash and equivalents of
$94.6 million
"Our PyroThin product offering continues to gain commercial
traction on the basis of our clearly differentiated and proprietary
technology," commented Don Young,
Aspen's President and CEO. "Our EV
Thermal Barrier revenues increased by over 2.5X versus the prior
quarter, and we anticipate this demand growth to continue
throughout the remainder of the year and into 2024. We believe that
our recent awards keep us on track to reach our goal of six
confirmed OEM awards by the end of 2023, as we continue to
diversify our customer base."
2023 Financial Outlook
Aspen updated its 2023 full year outlook as
follows:
- Total revenue is expected to be greater than $225.0 million, as compared to the previous range
of $200.0 million and $250.0 million
- Net loss is expected to range between $62.4 million and $52.4
million, as compared to the previous range of $85.0 million and $75.0
million
- Adjusted EBITDA is expected to range between $(40.0) million and $(30.0) million, as compared to the previous
range of $(55.0) million and
$(45.0) million
- Net loss per share is expected to range between $0.90 and $0.76, as
compared to the previous range of $1.21 and $1.07
- Capital Expenditures are expected to be up to $175 million, as compared to previous range of up
to $150 million, due to increased
fabrication and assembly costs from accelerating PyroThin
demand
The Company's 2023 outlook assumes depreciation and amortization
of $15.3 million, stock-based
compensation expense of $10.4
million, interest income of $3.3
million and weighted average shares outstanding of 69.4
million for the full year.
A reconciliation of net loss to non-GAAP Adjusted EBITDA for the
2023 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."
Ricardo C. Rodriguez, Chief
Financial Officer and Treasurer noted, "Our third quarter
performance reflects a productive step forward towards the
financial results that we are working to deliver from our existing
assets and commercial arrangements."
Aspen may incur, among other
items, additional charges, realize gains or losses, incur financing
costs or interest expense, or experience other events in 2023,
including those related to the planned capacity expansion, supply
chain disruptions or further cost inflation, that could cause
actual results to vary materially from this outlook. See Special
Note Regarding Forward-Looking and Cautionary Statements below.
Conference Call and Webcast Notification
A conference
call with Aspen management to
discuss third quarter 2023 results and recent business developments
will be held at 8:30 am ET on
November 2, 2023. During the call,
management will respond to questions concerning, but not limited
to, Aspen's financial performance,
business conditions, and financial outlook. Management's discussion
and responses could contain information that has not been
previously disclosed.
Shareholders and other interested parties may call +1 (833)
470-1428 (domestic) or +1 (929) 526-1599 (international) and
reference conference ID "607116" 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 Aspen's website, www.aerogel.com.
Following the live event, an archived version of the webcast
will be available on Aspen's
website for convenient on-demand replay for at least a year. A copy
of this press release is posted in the Investors section on
Aspen's website.
Non-GAAP Financial Measures
In addition to providing
financial measurements based on generally accepted accounting
principles in the United States of
America ("GAAP"), Aspen
provides an additional financial metric that is not prepared in
accordance with GAAP ("non-GAAP"). The non-GAAP financial measure
included in this press release is Adjusted EBITDA. Management uses
this non-GAAP financial measure, in addition to GAAP financial
measures, as a measure of operating performance because the
non-GAAP financial measure does not include the impact of items
that management does not consider indicative of Aspen's core operating performance. In
addition, management uses Adjusted EBITDA (i) for planning
purposes, including the preparation of Aspen's annual operating budget, (ii) to
allocate resources to enhance the financial performance of its
business, and (iii) as a performance measure under its bonus
plan.
Management believes that this non-GAAP financial measure
reflects Aspen's ongoing business
in a manner that allows for meaningful comparisons and analysis of
trends in its business, as it excludes expenses and gains not
reflective of Aspen's ongoing
operating results or that may be infrequent and/or unusual in
nature. Management also believes that this non-GAAP financial
measures provides useful information to investors in understanding
and evaluating Aspen's operating
results and future prospects in the same manner as management and
in comparing financial results across accounting periods and to
those of peer companies. This non-GAAP measure may not be
comparable to similarly titled measures presented by other
companies.
The non-GAAP financial measure does not replace the presentation
of Aspen's GAAP financial results
and should only be used as a supplement to, not as a substitute
for, Aspen's financial results
presented in accordance with GAAP. In this press release,
Aspen has provided a
reconciliation of Adjusted EBITDA to net loss, the most directly
comparable GAAP financial measure. Management strongly encourages
investors to review Aspen's
financial statements and publicly filed reports in their entirety
and not rely on any single financial measure.
About Aspen Aerogels, Inc.
Aspen is a technology leader in sustainability
and electrification solutions. The Company's aerogel technology
enables its customers and partners to achieve their own objectives
around the global megatrends of resource efficiency, e-mobility and
clean energy. Aspen's PyroThin®
products enable solutions to thermal runaway challenges within the
electric vehicle ("EV") market. Aspen Battery Materials, the
Company's carbon aerogel initiative, seeks to increase the
performance of lithium-ion battery cells to enable EV manufacturers
to extend the driving range and reduce the cost of EVs.
Aspen's Spaceloft® products
provide building owners with industry-leading energy efficiency and
fire safety. The Company's Cryogel® and Pyrogel® products are
valued by the world's largest energy infrastructure companies.
Aspen's strategy is to partner
with world-class industry leaders to leverage its Aerogel
Technology Platform® into additional high-value markets.
Headquartered in Northborough,
Mass., Aspen manufactures
its products at its East Providence,
R.I. facilities. For more information, please visit
www.aerogel.com.
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 Aspen's
2023 financial outlook. These statements are not historical facts
but rather are based on Aspen's
current expectations, estimates and projections regarding
Aspen's business, operations and
other factors relating thereto, including with respect to
Aspen's 2023 financial outlook.
Words such as "may," "will," "could," "would," "should,"
"anticipate," "predict," "potential," "continue," "expects,"
"intends," "plans," "projects," "believes," "estimates," "outlook,"
"assumes," "targets," "opportunity," and similar expressions are
used to identify these forward-looking statements. Such
forward-looking statements include statements regarding, among
other things, Aspen's expectations
about capacity, revenue, revenue capacity, backlog, costs,
expenses, profitability, cash flow, gross profit, gross margin,
operating margin, net loss, Adjusted EBITDA, Adjusted EBITDA margin
and related decreases, improvements, timing, variability or trends;
beliefs about higher than expected demand from the EV market and
how it may enable a path to profitability, expectations about
improvement in ability to absorb fixed costs and reduction of
conversion costs as a percentage of sales and the same leading to
target revenue capacity and gross margins and Adjusted EBITDA
margins; Aspen's expectations
regarding the planned second manufacturing plant in Georgia ("Plant II"), the extended
construction and commissioning timeframe for Plant II, Aspen's efforts to manage the construction of
Plant II to align with our expectations of demand from EV
customers, and the use of contract manufacturers to meet demand
from Energy Industrial customers; beliefs about the general
strength, weakness or health of Aspen's business; acceleration in demand;
beliefs about current or future trends in the energy, energy
infrastructure, chemical and refinery, LNG, sustainable building
materials, EV thermal barrier, EV battery materials or other
markets and the impact of these trends on Aspen's business; beliefs about the strength,
effectiveness, productivity, costs, profitability or other
fundamentals of Aspen's business;
beliefs about the role of Aspen's
technology and opportunities in the electric vehicle market;
beliefs about Aspen's ability to
provide and deliver products and services to electric vehicle
customers; beliefs about content per vehicle, revenue, costs,
expenses, profitability, investments or cash flow associated with
Aspen's electric vehicle
opportunities, including the EV thermal barrier business; beliefs
about revenue growth and profitability; beliefs about the
performance of PyroThin® including its ability to
mitigate the propagation of thermal runaway in electric vehicles;
beliefs about Aspen's ability to
expand the market for PyroThin®, to achieve design wins,
to commence shipments of production parts, and to become an
industry standard solution for thermal runaway management; beliefs
about Aspen's thermal barrier
design, prototype, quoting and assembly activities; and
expectations about the cost of the capital projects, including
Plant II. All such forward-looking statements are based on
management's present expectations and are subject to certain
factors, risks and uncertainties that may cause actual results,
outcome of events, timing and performance to differ materially from
those expressed or implied by such statements. These risks and
uncertainties include, but are not limited to, the following:
inability to execute the growth plan, inability to complete
construction and commissioning the Plant II and to do so at a cost
consistent with Aspen's estimates
and aligned with Aspen's
expectations of demand from our EV customers; the right of EV
thermal barrier customers to cancel contracts with Aspen at any time and without penalty; any
costs, expenses, or investments incurred by Aspen in excess of projections used to develop
pricing under the contracts with EV thermal barrier customers;
Aspen's inability to create
customer or market opportunities for, including
PyroThin®; any other battery performance and safety
products, battery materials or for other new products developed
from Aspen's aerogel technology;
any disruption or inability to achieve expected capacity levels in
any of the three existing production lines in East Providence, RI or the Mexico assembly facility or at any contract
manufacturer; any failure to enforce any of Aspen's patents; the general economic
conditions and cyclical demands in the markets that Aspen serves; and the other risk factors
discussed under the heading "Risk Factors" in Aspen's Annual Report on Form 10-K for the
year ended December 31, 2022 and
filed with the Securities and Exchange Commission ("SEC") on
March 16, 2023, as well as any
updates to those risk factors filed from time to time in
Aspen's subsequent periodic and
current reports filed with the SEC. All statements contained in
this press release are made only as of the date of this press
release. Aspen does not intend to
update this information unless required by law.
ASPEN AEROGELS,
INC.
Condensed
Consolidated Balance Sheets
(Unaudited)
|
|
|
|
September 30,
|
|
|
December 31,
|
|
|
|
2023
|
|
|
2022
|
|
|
|
(In
thousands)
|
|
Assets
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
94,643
|
|
|
$
|
281,335
|
|
Restricted
cash
|
|
|
320
|
|
|
|
1,226
|
|
Accounts receivable,
net
|
|
|
54,413
|
|
|
|
57,350
|
|
Inventories
|
|
|
34,421
|
|
|
|
22,538
|
|
Prepaid expenses and
other current assets
|
|
|
16,568
|
|
|
|
7,236
|
|
Total current
assets
|
|
|
200,365
|
|
|
|
369,685
|
|
Property, plant and
equipment, net
|
|
|
385,026
|
|
|
|
259,223
|
|
Operating lease
right-of-use assets
|
|
|
17,400
|
|
|
|
11,990
|
|
Other long-term
assets
|
|
|
2,355
|
|
|
|
2,518
|
|
Total
assets
|
|
$
|
605,146
|
|
|
$
|
643,416
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
37,115
|
|
|
$
|
54,728
|
|
Accrued
expenses
|
|
|
16,694
|
|
|
|
16,003
|
|
Deferred
revenue
|
|
|
5,463
|
|
|
|
5,846
|
|
Operating lease
liabilities
|
|
|
1,986
|
|
|
|
2,368
|
|
Total current
liabilities
|
|
|
61,258
|
|
|
|
78,945
|
|
Convertible note -
related party
|
|
|
112,088
|
|
|
|
103,580
|
|
Operating lease
liabilities long-term
|
|
|
21,987
|
|
|
|
13,456
|
|
Total
liabilities
|
|
|
195,333
|
|
|
|
195,981
|
|
Stockholders'
equity:
|
|
|
|
|
|
|
Total stockholders'
equity
|
|
|
409,813
|
|
|
|
447,435
|
|
Total liabilities and
stockholders' equity
|
|
$
|
605,146
|
|
|
$
|
643,416
|
|
ASPEN AEROGELS,
INC.
Consolidated
Statements of Operations
(Unaudited)
|
|
|
|
Three Months
Ended
|
|
|
Nine Months
Ended
|
|
|
|
September 30,
|
|
|
September 30,
|
|
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
|
|
|
(In thousands,
except
share and per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
60,755
|
|
|
$
|
36,706
|
|
|
$
|
154,499
|
|
|
$
|
120,753
|
|
Cost of
revenue
|
|
|
46,945
|
|
|
|
43,065
|
|
|
|
127,196
|
|
|
|
130,111
|
|
Gross profit
(loss)
|
|
|
13,810
|
|
|
|
(6,359)
|
|
|
|
27,303
|
|
|
|
(9,358)
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
|
|
4,218
|
|
|
|
4,694
|
|
|
|
12,281
|
|
|
|
12,733
|
|
Sales and
marketing
|
|
|
8,386
|
|
|
|
7,293
|
|
|
|
24,226
|
|
|
|
20,944
|
|
General and
administrative
|
|
|
15,840
|
|
|
|
9,963
|
|
|
|
41,382
|
|
|
|
26,544
|
|
Total operating
expenses
|
|
|
28,444
|
|
|
|
21,950
|
|
|
|
77,889
|
|
|
|
60,221
|
|
Loss from
operations
|
|
|
(14,634)
|
|
|
|
(28,309)
|
|
|
|
(50,586)
|
|
|
|
(69,579)
|
|
Other income
(expense)
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense,
convertible note - related party
|
|
|
(1,938)
|
|
|
|
(1,734)
|
|
|
|
(2,424)
|
|
|
|
(4,103)
|
|
Interest income,
net
|
|
|
1,313
|
|
|
|
448
|
|
|
|
5,532
|
|
|
|
553
|
|
Income from Employee
Retention Credits
|
|
|
2,186
|
|
|
|
-
|
|
|
|
2,186
|
|
|
|
-
|
|
Total other income
(expense), net
|
|
|
1,561
|
|
|
|
(1,286)
|
|
|
|
5,294
|
|
|
|
(3,550)
|
|
Net loss
|
|
$
|
(13,073)
|
|
|
$
|
(29,595)
|
|
|
$
|
(45,292)
|
|
|
$
|
(73,129)
|
|
Net loss per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
$
|
(0.19)
|
|
|
$
|
(0.75)
|
|
|
$
|
(0.65)
|
|
|
$
|
(2.03)
|
|
Weighted-average common
shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
|
69,317,805
|
|
|
|
39,533,695
|
|
|
|
69,243,843
|
|
|
|
36,047,879
|
|
Analysis of Cash
Flow
|
The following table
summarizes our cash flows for the periods indicated.
|
|
|
|
Three Months
Ended
|
|
|
|
March 31,
2023
|
|
|
June 30,
2023
|
|
|
September 30,
2023
|
|
|
|
($ in
thousands)
|
|
Net cash provided by
(used in):
|
|
|
|
|
|
|
|
|
|
Operating
activities
|
|
$
|
(24,651)
|
|
|
$
|
(7,680)
|
|
|
$
|
(7,502)
|
|
Investing
activities
|
|
|
(49,378)
|
|
|
|
(66,012)
|
|
|
|
(32,279)
|
|
Financing
activities
|
|
|
(364)
|
|
|
|
142
|
|
|
|
126
|
|
Net (decrease) increase
in cash
|
|
|
(74,393)
|
|
|
|
(73,550)
|
|
|
|
(39,655)
|
|
Cash, cash equivalents
and restricted cash at beginning of period
|
|
|
282,561
|
|
|
|
208,168
|
|
|
|
134,618
|
|
Cash, cash equivalents
and restricted cash at end of period
|
|
$
|
208,168
|
|
|
$
|
134,618
|
|
|
$
|
94,963
|
|
Square Foot
Operating Metric
|
The following chart
sets forth Energy Industrial product shipments in square feet
associated with recognized revenue.
|
|
|
|
Three Months
Ended
|
|
|
Nine Months
Ended
|
|
|
|
September 30,
|
|
|
September 30,
|
|
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
|
|
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Energy Industrial
product shipments in square feet
|
|
|
5,909
|
|
|
|
6,711
|
|
|
|
22,337
|
|
|
|
24,074
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 Net loss to Adjusted EBITDA
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 nine
months ended September 30, 2023 and 2022:
|
|
|
|
Three Months
Ended
|
|
|
Nine Months
Ended
|
|
|
|
September 30,
|
|
|
September 30,
|
|
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
|
|
|
(In
thousands)
|
|
Net loss
|
|
$
|
(13,073)
|
|
|
$
|
(29,595)
|
|
|
$
|
(45,292)
|
|
|
$
|
(73,129)
|
|
Depreciation and
amortization
|
|
|
4,550
|
|
|
|
2,531
|
|
|
|
10,757
|
|
|
|
6,692
|
|
Stock-based
compensation
|
|
|
2,789
|
|
|
|
2,590
|
|
|
|
7,766
|
|
|
|
6,713
|
|
Other (income)
expense
|
|
|
(1,561)
|
|
|
|
1,286
|
|
|
|
(5,294)
|
|
|
|
3,550
|
|
Adjusted
EBITDA
|
|
$
|
(7,295)
|
|
|
$
|
(23,188)
|
|
|
$
|
(32,063)
|
|
|
$
|
(56,174)
|
|
For the 2023 full year
financial outlook:
|
|
|
|
Year
Ending
|
|
|
|
December 31,
2023
|
|
|
|
Low
|
|
|
High
|
|
|
|
(In
thousands)
|
|
Net loss
|
|
$
|
(62,400)
|
|
|
$
|
(52,400)
|
|
Depreciation and
amortization
|
|
|
15,300
|
|
|
|
15,300
|
|
Stock-based
compensation
|
|
|
10,400
|
|
|
|
10,400
|
|
Other (income)
expense
|
|
|
(3,300)
|
|
|
|
(3,300)
|
|
Adjusted
EBITDA
|
|
$
|
(40,000)
|
|
|
$
|
(30,000)
|
|
View original
content:https://www.prnewswire.com/news-releases/aspen-aerogels-inc-reports-third-quarter-2023-financial-results-and-recent-business-highlights-301974512.html
SOURCE Aspen Aerogels, Inc.