What happened
Shares of Origin Materials (ORGN +0.07%) briefly popped by as much as 11% today after the company reported second-quarter earnings. As of 12:25 p.m. EDT, the stock had given back some of those gains but was still up 5%.
So what
Origin Materials, which recently completed its merger with a special-purpose acquisition company (SPAC), is still pre-revenue and did not generate any sales. Operating expenses were $6.7 million, but the company recorded net income of $62.5 million due to the change in fair value of warrants and earnout liabilities.
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"We have taken significant steps to commercialize the business by broadening our customer base beyond [consumer packaged goods] into apparel, automotive and industrial end-markets, while also substantially increasing customer demand, strengthening the leadership team, and making significant capital available to the business through the combination of Artius Acquisition, Inc. with Origin," CEO Rich Riley said in a release. "Importantly, we remain on track for the start of production for Origin 1 and Origin 2."
Now what
Origin Materials said that total demand has grown to $3.5 billion, up from $1.9 billion from the company's analyst day in April. The Origin 1 facility is on schedule to be completed by the end of 2022, and the money that Origin Materials received from the SPAC deal will fund construction. Origin 2 is on track to be finished by mid-2025.
The company reaffirmed its outlook for fiscal 2021, which calls for an adjusted EBITDA loss of $25 million and capital expenditures of up to $111 million.
