Danimer Scientific, Inc. (NYSE:DNMR) Q3 2023 Earnings Call Transcript November 14, 2023 4:30 PM ET

Company Participants

James Palczynski - IR

Steve Croskrey - Chairman and CEO

Mike Hajost - CFO

Conference Call Participants

Jon Tanwanteng - CGS Securities

Thomas Boyes - TD Cowen

Charles Neivert - Piper Sandler

Kevin Estok - Jefferies

Operator

Greetings. Welcome to the Danimer Scientific 2023 Third Quarter Earnings Call. At this time all lines are in listen-only mode. Following the presentation, we will conduct a question-and-answer session. [Operator Instructions] Please be advised that this call is being recorded today November 14, 2023.

I would now like to turn the presentation over to Mr. James Palczynski, the company's investor relations representative.

James Palczynski

Thank you, operator. Good afternoon to everyone and thank you for joining us today for Danimer Scientific's 2023 Third Quarter Earnings Call. Leading the call today is Steve Croskrey, Chairman and Chief Executive Officer, and Mike Hajost, Chief Financial Officer. I'd like to note that there is a slide deck that accompanies today's discussion, which is available on the investor relations section of our website at danimerscientific.com.

As we begin, I'll call your attention to the company's safe harbor language, which is published in our SEC filings, and on Slide 2 of the presentation I just referenced. On today's call, we may discuss forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 as amended. Forward-looking statements include, among other things, statements regarding future results of operations including margins, profitability, capacity, production, customer programs, and market demand levels. Actual results could differ materially from what is expressed or implied in our forward-looking statements. The company assumes no obligation to update any forward-looking statements to reflect events or circumstances after the date here around, except as required by law.

Today's presentation also includes references to non-GAAP financial measures within the meaning of SEC Regulation G. We believe these non-GAAP measures have analytical value, but note that they should be taken as supplementary measures of performance and not as alternatives to GAAP results. We have provided reconciliations for non-GAAP financial measures to the most comparable GAAP financial measures in our earnings release and our presentation.

Thank you, and it's now my pleasure to turn the call over to Steve Croskrey, Chairman and Chief Executive Officer, Danimer Scientific.

Steve Croskrey

Good afternoon, and thank you for joining us. We recently received notification that a very large quick service restaurant program for biodegradable cutlery specifying our Nodax-based resins has now been awarded. We have anticipated this notification for some time. Five of our converter partners have each been granted awards and will participate in that program. We will supply each of them with the resin they need and in total the program will require us to deliver approximately 20 million pounds annually. We expect to begin making first shipments in the second half of next year and for the program to hit full run rate as we approach the midpoint of 2025.