Aspen Aerogels, Inc. Reports Third Quarter 2022 Financial Results and Recent Business Developments

NORTHBOROUGH, Mass., Oct. 26, 2022 /PRNewswire/ — Aspen Aerogels, Inc. (NYSE: ASPN) (“Aspen” or the “Firm”), a know-how chief in sustainability and electrification options, in the present day introduced monetary outcomes for the third quarter of 2022, which ended September 30, 2022, and mentioned latest enterprise developments.

Whole income for the third quarter of 2022 was $36.7 million, in comparison with $30.4 million within the third quarter final yr. Third quarter web loss was $29.6 million, in comparison with a web lack of $7.8 million within the third quarter of 2021. Web loss per share for the third quarter was $0.75, in comparison with $0.24 within the third quarter final yr.

Adjusted EBITDA for the third quarter of 2022 was $(23.2) million, in comparison with $(7.8) million within the third quarter of 2021. A reconciliation of non-GAAP adjusted EBITDA to web loss is offered within the monetary schedules which can be a part of this press launch. An evidence of this non-GAAP monetary measure can also be included under beneath the heading “Non-GAAP Monetary Measures.”

Third Quarter Highlights

• Whole income grew 21% year-over-year
• Generated $12.0 million of PyroThin^® thermal barrier income
• Power Industrial revenues of $24.8 million
• Ended third quarter with money of $102.4 million

“We noticed document PyroThin thermal barrier income in Q3, though it was lower than we anticipated on the outset of the quarter. We all know that automotive OEMs can be impacted occasionally by provide chain challenges that might affect their progress ramps in any given interval. We imagine each our EV and Power Industrial companies proceed to offer a positive backdrop for us to achieve our 2023 income goal of $240 million and our 2025 income goal of $720 million,” famous Donald R. Younger, President and CEO. “Our technique to finance our progress plan has continued to concentrate on strategic buyers who know our firm and the markets we serve. We imagine {that a} strategic investor because the centerpiece of a financing will add validation to our enterprise technique and strengthen our stability sheet. We imagine we now have made appreciable progress and anticipate that we’ll shut a spherical of financing within the close to time period.”

2022 Monetary Outlook

Aspen updates its 2022 full yr outlook as follows:

• Whole income is predicted to be roughly $180.0 million
• Web loss is predicted to vary between $82.3 million and $86.8 million
• Adjusted EBITDA is predicted to vary between $(57.5) million and $(62.0) million
• Web loss per share is predicted to vary between $2.35 and $2.22

The Firm’s 2022 outlook assumes depreciation and amortization of $9.7 million, stock-based compensation expense of $8.3 million, curiosity expense of $6.8 million and weighted common shares excellent of 37.0 million for the complete yr.

Ricardo C. Rodriguez, Chief Monetary Officer and Treasurer, added, “We imagine that the fourth quarter presents the chance to ship document revenues on an improved price construction. As we glance ahead, it’s time to understand the advantages of the investments we now have made in individuals, programs and processes.”

A reconciliation of non-GAAP adjusted EBITDA to web loss for the 2022 monetary outlook is offered within the monetary schedules which can be a part of this press launch. An evidence of this non-GAAP monetary measure can also be included under beneath the heading “Non-GAAP Monetary Measures.”

Aspen Aerogels could incur, amongst different objects, further fees, understand positive factors or losses, incur financing prices or curiosity expense, or expertise different occasions in 2022, together with these associated to the deliberate capability enlargement, provide chain disruptions or additional price inflation, that might trigger precise outcomes to fluctuate materially from this outlook.

Convention Name and Webcast Notification

A convention name with Aspen administration to debate third quarter 2022 outcomes and up to date enterprise developments can be held at 8:30 am ET on October 27, 2022. Throughout the name, administration will reply to questions regarding, however not restricted to, Aspen’s monetary efficiency, enterprise circumstances, and monetary outlook. Administration’s dialogue and responses might include info that has not been beforehand disclosed.

Shareholders and different events could name 844-200-6205 (home) or +1 929-526-1599 (worldwide) and reference convention ID 252601 a couple of minutes earlier than 8:30 a.m. ET on Thursday, October 27, 2022. As well as, the convention name and an accompanying slide presentation can be accessible reside as a listen-only webcast hosted on the Buyers part of Aspen’s web site at www.aerogel.com.

Following the reside occasion, an archived model of the webcast can be accessible on Aspen’s web site for handy on-demand replay for at the least a yr. A replica of this press launch is posted within the Buyers part on Aspen’s web site.

Non-GAAP Monetary Measures

Along with offering monetary measurements based mostly on usually accepted accounting ideas in the USA of America (“GAAP”), Aspen gives further monetary metrics that aren’t ready in accordance with GAAP (“non-GAAP”). The non-GAAP monetary measure included on this press launch is adjusted EBITDA. Administration makes use of non-GAAP monetary measures, along with GAAP monetary measures, as a measure of working efficiency as a result of the non-GAAP monetary measures don’t embody the impression of things that administration doesn’t think about indicative of Aspen’s core working efficiency. As well as, administration makes use of adjusted EBITDA (i) for planning functions, together with the preparation of Aspen’s annual working funds, (ii) to allocate sources to reinforce the monetary efficiency of its enterprise, and (iii) as a efficiency measure beneath its bonus plan.

Administration believes that these non-GAAP monetary measures replicate Aspen’s ongoing enterprise in a fashion that enables for significant comparisons and evaluation of developments in its enterprise, as they exclude bills and positive factors not reflective of Aspen’s ongoing working outcomes or which may be rare and/or uncommon in nature. Administration additionally believes that these non-GAAP monetary measures present helpful info to buyers in understanding and evaluating Aspen’s working outcomes and future prospects in the identical method as administration and in evaluating monetary outcomes throughout accounting durations and to these of peer corporations. These non-GAAP measures will not be akin to equally titled measures introduced by different corporations.

The non-GAAP monetary measures don’t substitute the presentation of Aspen’s GAAP monetary outcomes and may solely be used as a complement to, not as an alternative choice to, Aspen’s monetary outcomes introduced in accordance with GAAP. On this press launch, Aspen has offered a reconciliation of adjusted EBITDA to web loss, essentially the most straight comparable GAAP monetary measure. Administration strongly encourages buyers to assessment Aspen’s monetary statements and publicly filed stories of their entirety and never depend on any single monetary measure.

About Aspen Aerogels, Inc.

Aspen is a know-how chief in sustainability and electrification options. The Firm’s aerogel know-how permits its prospects and companions to attain their very own targets across the world megatrends of useful resource effectivity, e-mobility and clear power. Aspen’s PyroThin® merchandise allow options to thermal runaway challenges inside the electrical car (“EV”) market. Aspen Battery Supplies, the Firm’s carbon aerogel initiative, seeks to extend the efficiency of lithium-ion battery cells to allow EV producers to increase the driving vary and scale back the price of EVs. Aspen’s Spaceloft® merchandise present constructing homeowners with industry-leading power effectivity and hearth security. The Firm’s Cryogel® and Pyrogel® merchandise are valued by the world’s largest power infrastructure corporations. Aspen’s technique is to associate with world-class {industry} leaders to leverage its Aerogel Expertise Platform™ into further high-value markets. Headquartered in Northborough, Mass., Aspen manufactures its merchandise at its East Windfall, R.I. amenities. For extra info, please go to www.aerogel.com.

Particular Observe Relating to Ahead-Trying and Cautionary Statements

This press launch and any associated dialogue incorporates “forward-looking statements” inside the that means of the Personal Securities Litigation Reform Act of 1995 that contain dangers and uncertainties that might trigger precise outcomes to be materially completely different from historic outcomes or from any future outcomes expressed or implied by such forward-looking statements, together with statements referring to Aspen’s 2022 monetary outlook. These statements usually are not historic information however fairly are based mostly on Aspen’s present expectations, estimates and projections concerning Aspen’s enterprise, operations and different components relating thereto, together with with respect to Aspen’s 2022 monetary outlook. Phrases akin to “could,” “will,” “might,” “would,” “ought to,” “anticipate,” “predict,” “potential,” “proceed,” “expects,” “intends,” “plans,” “tasks,” “believes,” “estimates,” “outlook,” “assumes,” “targets,” “alternative,” and comparable expressions are used to determine these forward-looking statements. Such forward-looking statements embody statements concerning, amongst different issues, Aspen’s expectations about capability, income, backlog, prices, bills, profitability, money movement, gross revenue, gross margin, working margin, web loss, adjusted EBITDA, adjusted EBITDA margin and associated decreases, enhancements, timing, variability or developments; beliefs about increased than anticipated demand from automotive unique tools producer (“OEM”) prospects and the way they might allow path to profitability, expectations about enchancment in capability to soak up fastened prices and discount of conversion prices as a proportion of gross sales and the identical main to focus on gross margins; beliefs concerning the normal power, weak spot or well being of Aspen’s enterprise; acceleration in demand; demand improve from OEM prospects for the rest of 2022, power industrial demand ebook acceleration for the rest of 2022, degree of penetration in electrical car (“EV”) market, progress in power industrial markets; beliefs about present or future developments within the power, power infrastructure, chemical and refinery, liquified pure fuel (“LNG”), sustainable constructing supplies, EV thermal barrier, EV battery supplies or different markets and the impression of those developments on Aspen’s enterprise; beliefs concerning the power, effectiveness, productiveness, prices, profitability or different fundamentals of Aspen’s enterprise; beliefs concerning the function of Aspen’s know-how and alternatives within the EV market; beliefs about Aspen’s capability to offer and ship services and products to EV prospects; beliefs about content material per car, income, prices, bills, profitability, investments or money movement related to Aspen’s EV alternatives, together with the EV thermal barrier enterprise; beliefs about income progress and profitability; beliefs concerning the efficiency of PyroThin® together with its capability to mitigate the propagation of thermal runaway in EVs; beliefs about Aspen’s capability to broaden the marketplace for PyroThin, to attain design wins, to begin shipments of manufacturing components, and to change into an {industry} commonplace resolution for thermal runaway administration; beliefs about Aspen’s thermal barrier design, prototype, quoting and meeting actions; expectations about the price of the capital tasks, together with Plant II, expectations concerning the timing of commissioning of Section I of Plant II; beliefs about our Mexico components fabrication facility and its operations, capability to well timed meet demand, the expansion in thermal barrier demand to match the components fabrication operation and vice versa; capability to shift operations from East Windfall, RI to Mexico in a well timed method. All such forward-looking statements are based mostly on administration’s current expectations and are topic to sure components, dangers and uncertainties which will trigger precise outcomes, consequence of occasions, timing and efficiency to vary materially from these expressed or implied by such statements. These dangers and uncertainties embody, however usually are not restricted to, the next: incapability to execute the expansion plan via 2025, incapability to finish development and commissioning of Section I of Plant II fairly inside funds in a well timed method, or in any respect, incapability to handle provide chain disruptions to keep away from undue delay or impression on operations or development of Plant II and Mexico fabrication facility, incapability to create new product, partnership and market alternatives; any sustained downturn within the power industrial costs; any sustained downturn within the power, power infrastructure, chemical and refinery, LNG, sustainable constructing supplies, EV thermal barrier, EV battery supplies or different markets as a result of coronavirus pandemic, COVID-19 or some other issue; any failure to maintain project-based demand within the subsea, LNG, on-shore or different markets; decrease demand than anticipated from OEM prospects, particularly through the the rest of 2022; the contractual proper of automotive OEM prospects to cancel contracts with Aspen at any time and with out penalty; any prices, bills, or investments incurred by Aspen in extra of projections used to develop pricing beneath the contracts with automotive OEM prospects; any failure of Aspen or PyroThin to satisfy contractual specs and necessities beneath contracts with automotive OEM prospects; Aspen’s incapability to create buyer or market alternatives for any of its merchandise, together with PyroThin, some other battery efficiency and security merchandise, battery supplies or different new merchandise developed from Aspen’s aerogel know-how; any disruption or incapability to attain anticipated capability ranges in any of our three current manufacturing strains in East Windfall, RI or the Mexico fabrication facility, together with as a result of coronavirus pandemic, COVID-19 or some other issue; any incapability to broaden manufacturing capability in a second manufacturing facility in Bulloch County, Georgia or at some other location; any incapability to ascertain or well timed set up thermal barrier meeting operations in Mexico or some other location; the failure to obtain all relevant regulatory or different approvals required to function, preserve or broaden any of Aspen’s amenities; any failure to attain demand for Aspen’s merchandise; any failure to attain anticipated worth will increase or common promoting costs for Aspen’s merchandise; any important improve in the price of uncooked supplies, utilities or some other manufacturing consumable; shortages of uncooked supplies, utilities or some other manufacturing consumable as a result of coronavirus pandemic, COVID-19 or some other issue; the failure to generate ample working money movement or to acquire important further capital to pursue Aspen’s technique; any failure to well timed increase ample capital to fund numerous capital tasks; the failure of Aspen’s merchandise to change into broadly adopted; the competitors Aspen faces in its enterprise; any failure to implement any of Aspen’s patents or different mental property rights on a worldwide foundation; any failure to guard or broaden Aspen’s Aerogel Expertise Platform™; any future discovering of invalidity of any of Aspen’s patents in any jurisdiction; any failure to generate ample working money movement or to acquire ample further capital to proceed to pursue Aspen’s new enterprise initiatives, know-how growth, or patent enforcement technique; any failure of Aspen’s merchandise to satisfy relevant specs and different efficiency, security, technical and supply necessities; the final financial circumstances and cyclical calls for within the markets that Aspen serves; the financial, operational and geopolitical dangers related to gross sales and enlargement of operations in international international locations, together with Mexico; the lack of any direct buyer, together with distributors, contractors and automotive OEMs; compliance with relevant well being and security legal guidelines and laws; the upkeep and growth of distribution channels; and the opposite threat components mentioned beneath the heading “Threat Components” in our Annual Report on Type 10-Ok for the yr ended December 31, 2021 and filed with the Securities and Change Fee (“SEC”) on March 1, 2022, in addition to any updates to these threat components filed occasionally in our subsequent periodic and present stories filed with the SEC. All statements contained on this press launch are made solely as of the date of this press launch. Aspen doesn’t intend to replace this info except required by regulation.

Sq. Foot Working Metric

The next chart units forth Power Industrial product shipments in sq. ft related to acknowledged income.

Reconciliation of Non-GAAP Monetary Measures

The next tables current a reconciliation of the non-GAAP monetary measure included on this press launch to essentially the most straight comparable GAAP measure:

Reconciliation of Adjusted EBITDA to Web Loss

We outline adjusted EBITDA as web earnings (loss) earlier than curiosity expense, taxes, depreciation, amortization, stock-based compensation expense and different objects, which happen occasionally and which we don’t imagine are indicative of our core working efficiency.

For the three and 9 months ended September 30, 2022 and 2021:

For the 2022 full yr monetary outlook:

SOURCE Aspen Aerogels, Inc.