$84.2 million
quarterly revenue enabled gross margins of 35% and adjusted EBITDA
of $9.1 million
NORTHBOROUGH, Mass., Feb. 12,
2024 /PRNewswire/ -- Aspen Aerogels, Inc. (NYSE:
ASPN) ("Aspen" or the "Company"),
a technology leader in sustainability and electrification
solutions, today announced financial results for the fourth quarter
and full year 2023, which ended December 31,
2023, and discussed recent business developments.
Total revenue for the fourth quarter of 2023 was $84.2 million, compared to $59.6 million in the fourth quarter of 2022. Net
loss was $0.5 million, compared to a
net loss of $9.6 million in the
fourth quarter of 2022. Net loss per share was $0.01, compared to a net loss per share of
$0.20 in the fourth quarter of
2022.
Total revenue for the full year 2023 was $238.7 million, compared to $180.4 million in 2022. Net loss for the year was
$45.8 million, compared to a net loss
of $82.7 million in 2022. Net loss
per share for the year was $0.66,
compared to $2.10 in 2022.
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
- 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
- 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 on October
23rd, 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)
|
Metric
|
Initial 2023 Outlook
(2/15/2023)
|
Full Year 2023
Results
|
Improvement vs
Midpoint
|
Revenue
|
$200 to $250
|
$238.7
|
$13.7
|
Adjusted
EBITDA
|
$(60) to
$(50)
|
$(22.9)
|
$32.1
|
Net
(Loss)
|
$(102) to
$(92)
|
$(45.8)
|
$51.2
|
Net (Loss) Per
Share
|
$(1.46) to
$(1.31)
|
$(0.66)
|
$0.72
|
CAPEX
|
$350 to $400
|
$175.5
|
$199.5
|
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 in Energy 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 on December 5th, 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 in Statesboro, GA, as previously announced on
December 5th, 2023
- Completed $75 million registered
direct offering of common stock at $12.375 per share in December 2023
- In connection with General Motors' Supplier Pledge,
Aspen's sustainability performance
was re-assessed by EcoVadis and, for the second consecutive year,
Aspen was awarded a Silver Medal
rating in February 2024 for its
overall sustainability scorecard, placing Aspen in the 85th percentile of
companies assessed by EcoVadis
"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. Energy Industrial demand is strong, and the successful
launch of our supplemental supply is enabling the team to deliver
the current and growing demand," commented Don Young, Aspen's President and CEO. "We believe that
our Q4 results show that we are on the right path towards now
building a $650 million revenue
capacity business that can deliver 35% gross profit and 25%
adjusted EBITDA margins."
2024 Financial Outlook
Aspen issues its 2024 full year
outlook as follows:
- Total revenue is expected to be at least $350 million, with approximately $150 million in Energy 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 $30 million, stock-based
compensation expense of $14 million,
interest expense of $9 million and
weighted average shares outstanding of 76.5 million for the full
year.
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."
Ricardo C. Rodriguez, Chief
Financial Officer and Treasurer noted, "We're increasingly
optimistic about our EV customers' ability to ramp up production in
2024 and see meaningful upside potential to our outlook. In the
meantime, we remain focused on gearing the business for sustained
profitability that isn't dependent on outsized revenue growth. We
will continue managing our fixed cost base within clear targets,
right-timing capital investments, and increasing our focus on cash
conversion. The last quarter of 2023 gave us a glimpse of what our
asset base can deliver, and our team is energized to drive
additional scale in 2024."
Aspen may incur, among other
items, additional charges, realize gains or losses, incur financing
costs or interest expense, or experience other events in 2024,
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 fourth quarter and fiscal 2023 results and
recent business developments will be held Tuesday, February 13, 2024 at 8:30 a.m. EST. 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 "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 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. 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
2024 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 2024 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; and beliefs about the Company's pending application with
the DOE seeking a loan pursuant to the DOE LPO's ATVM. 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 continue construction of 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 and in
thousands)
|
|
|
|
|
|
December 31,
|
|
|
December 31,
|
|
|
|
2023
|
|
|
2022
|
|
|
|
(In
thousands)
|
|
Assets
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
139,723
|
|
|
$
|
281,335
|
|
Restricted
cash
|
|
|
248
|
|
|
|
1,226
|
|
Accounts receivable,
net
|
|
|
69,995
|
|
|
|
57,350
|
|
Inventories
|
|
|
39,189
|
|
|
|
22,538
|
|
Prepaid expenses and
other current assets
|
|
|
17,176
|
|
|
|
7,236
|
|
Total current
assets
|
|
|
266,331
|
|
|
|
369,685
|
|
Property, plant and
equipment, net
|
|
|
417,227
|
|
|
|
259,223
|
|
Operating lease
right-of-use assets
|
|
|
17,212
|
|
|
|
11,990
|
|
Other long-term
assets
|
|
|
2,278
|
|
|
|
2,518
|
|
Total
assets
|
|
$
|
703,048
|
|
|
$
|
643,416
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
51,094
|
|
|
$
|
54,728
|
|
Accrued
expenses
|
|
|
22,811
|
|
|
|
16,003
|
|
Deferred
revenue
|
|
|
2,316
|
|
|
|
5,846
|
|
Operating lease
liabilities
|
|
|
1,874
|
|
|
|
2,368
|
|
Total current
liabilities
|
|
|
78,095
|
|
|
|
78,945
|
|
Convertible note -
related party
|
|
|
114,992
|
|
|
|
103,580
|
|
Operating lease
liabilities long-term
|
|
|
21,906
|
|
|
|
13,456
|
|
Total
liabilities
|
|
|
214,993
|
|
|
|
195,981
|
|
Stockholders'
equity:
|
|
|
|
|
|
|
Total stockholders'
equity
|
|
|
488,055
|
|
|
|
447,435
|
|
Total liabilities and
stockholders' equity
|
|
$
|
703,048
|
|
|
$
|
643,416
|
|
ASPEN AEROGELS,
INC.
|
Consolidated
Statements of Operations
|
(Unaudited and in
thousands, except share and per share data)
|
|
|
|
Three Months
Ended
|
|
|
Year
Ended
|
|
|
|
December 31,
|
|
|
December 31,
|
|
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
|
|
|
(In thousands,
except
share and per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
84,219
|
|
|
$
|
59,611
|
|
|
$
|
238,718
|
|
|
$
|
180,364
|
|
Cost of
revenue
|
|
|
54,601
|
|
|
|
45,277
|
|
|
|
181,797
|
|
|
|
175,388
|
|
Gross
profit
|
|
|
29,618
|
|
|
|
14,334
|
|
|
|
56,921
|
|
|
|
4,976
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
|
|
4,075
|
|
|
|
4,197
|
|
|
|
16,356
|
|
|
|
16,930
|
|
Sales and
marketing
|
|
|
8,782
|
|
|
|
7,848
|
|
|
|
33,008
|
|
|
|
28,792
|
|
General and
administrative
|
|
|
15,378
|
|
|
|
11,955
|
|
|
|
56,760
|
|
|
|
38,499
|
|
Total operating
expenses
|
|
|
28,235
|
|
|
|
24,000
|
|
|
|
106,124
|
|
|
|
84,221
|
|
Loss from
operations
|
|
|
1,383
|
|
|
|
(9,666)
|
|
|
|
(49,203)
|
|
|
|
(79,245)
|
|
Other income
(expense)
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense,
convertible note - related party
|
|
|
(2,904)
|
|
|
|
(1,007)
|
|
|
|
(5,328)
|
|
|
|
(5,110)
|
|
Interest income,
net
|
|
|
1,002
|
|
|
|
1,064
|
|
|
|
6,534
|
|
|
|
1,617
|
|
Income from Employee
Retention Credits
|
|
|
-
|
|
|
|
-
|
|
|
|
2,186
|
|
|
|
-
|
|
Total other income
(expense), net
|
|
|
(1,902)
|
|
|
|
57
|
|
|
|
3,392
|
|
|
|
(3,493)
|
|
Net loss
|
|
$
|
(519)
|
|
|
$
|
(9,609)
|
|
|
$
|
(45,811)
|
|
|
$
|
(82,738)
|
|
Net loss per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
$
|
(0.01)
|
|
|
$
|
(0.20)
|
|
|
$
|
(0.66)
|
|
|
$
|
(2.10)
|
|
Weighted-average common
shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
|
70,018,243
|
|
|
|
49,200,713
|
|
|
|
69,439,034
|
|
|
|
39,363,114
|
|
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
|
|
|
December 31,
2023
|
|
|
|
(In
thousands)
|
|
Net cash provided by
(used in):
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
activities
|
|
$
|
(24,651)
|
|
|
$
|
(7,680)
|
|
|
$
|
(7,502)
|
|
|
$
|
(2,779)
|
|
Investing
activities
|
|
|
(49,378)
|
|
|
|
(66,012)
|
|
|
|
(32,279)
|
|
|
|
(27,786)
|
|
Financing
activities
|
|
|
(364)
|
|
|
|
142
|
|
|
|
126
|
|
|
|
75,573
|
|
Net (decrease) increase
in cash
|
|
|
(74,393)
|
|
|
|
(73,550)
|
|
|
|
(39,655)
|
|
|
|
45,008
|
|
Cash, cash equivalents
and restricted cash at beginning of period
|
|
|
282,561
|
|
|
|
208,168
|
|
|
|
134,618
|
|
|
|
94,963
|
|
Cash, cash equivalents
and restricted cash at end of period
|
|
$
|
208,168
|
|
|
$
|
134,618
|
|
|
$
|
94,963
|
|
|
$
|
139,971
|
|
Square Foot Operating Metric
The following chart sets forth Energy Industrial product
shipments in square feet associated with recognized revenue.
|
|
Three Months
Ended
|
|
|
Year
Ended
|
|
|
|
December 31,
|
|
|
December 31,
|
|
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
|
|
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Energy Industrial
product shipments in square feet
|
|
|
6,055
|
|
|
|
8,824
|
|
|
|
28,392
|
|
|
|
32,589
|
|
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 December 31, 2023 and 2022:
|
|
Three Months
Ended
|
|
|
Year
Ended
|
|
|
|
December 31,
|
|
|
December 31,
|
|
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
|
|
|
(In
thousands)
|
|
Net loss
|
|
$
|
(519)
|
|
|
$
|
(9,609)
|
|
|
$
|
(45,811)
|
|
|
$
|
(82,738)
|
|
Depreciation and
amortization
|
|
|
4,561
|
|
|
|
2,530
|
|
|
|
15,318
|
|
|
|
9,222
|
|
Stock-based
compensation
|
|
|
3,188
|
|
|
|
2,672
|
|
|
|
10,954
|
|
|
|
9,385
|
|
Other (income)
expense
|
|
|
1,902
|
|
|
|
(57)
|
|
|
|
(3,392)
|
|
|
|
3,493
|
|
Adjusted
EBITDA
|
|
$
|
9,132
|
|
|
$
|
(4,464)
|
|
|
$
|
(22,931)
|
|
|
$
|
(60,638)
|
|
For the 2024 full year financial outlook:
|
|
Year
Ending
|
|
|
|
December 31,
2024
|
|
|
|
Baseline
|
|
|
|
(In
thousands)
|
|
Net loss
|
|
$
|
(23,000)
|
|
Depreciation and
amortization
|
|
|
30,000
|
|
Stock-based
compensation
|
|
|
14,000
|
|
Other (income)
expense
|
|
|
9,000
|
|
Adjusted
EBITDA
|
|
$
|
30,000
|
|
View original
content:https://www.prnewswire.com/news-releases/aspen-aerogels-inc-reports-fourth-quarter-and-fiscal-year-2023-financial-results-and-recent-business-highlights-302059916.html
SOURCE Aspen Aerogels, Inc.