Current Board Member and Former CEO of NatureWorks to Lead Company While Board Continues Search Process for Permanent CEO
Company Provides Preliminary Third Quarter 2024 PHA Results
BAINBRIDGE, Ga., October 15, 2024--(BUSINESS WIRE)--Danimer Scientific, Inc. (NYSE: DNMR) ("Danimer" or the "Company"), a leading, next-generation biotechnology company focused on the production of biodegradable materials, today announced that Richard Altice, a current Danimer director and former President and Chief Executive Officer of NatureWorks, has been named Interim Chief Executive Officer, effective immediately. Mr. Altice succeeds Stephen Croskrey, who previously announced his intention to retire after more than eight years as CEO. In addition to his ongoing role as a director, Mr. Croskrey has agreed to serve as a Special Advisor until the end of the year to further support this transition. Richard Hendrix will continue to lead the Board as Chairman.
As previously announced, the Board has formed an Executive Committee charged with leading the search process for a permanent CEO, along with oversight of strategy and shareholder engagement during the transition period. The Executive Committee has made significant progress on its search, which includes internal and external candidates, and has retained a nationally recognized executive search firm to support the process. In connection with today’s announcement, Mr. Altice will replace Mr. Croskrey on the Executive Committee, which also includes directors Mr. Hendrix, John Amboian, and David Moody.
"Having served as a CEO within the biomaterials industry, Rich provides a wealth of experience and deep sector expertise," said Mr. Hendrix. "His understanding of our business and industry, along with a proven track record of generating revenue growth and profitability, has been invaluable to our Board over the past six months. Under Rich’s leadership, I am confident that Danimer is in excellent hands while the Board continues its search for a permanent CEO."
Mr. Hendrix continued, "On behalf of the Board, I also want to thank Steve for his many contributions to Danimer throughout his tenure. His leadership has been instrumental in scaling and commercializing the business and positioning Danimer for future success. We look forward to Steve’s continued support as Special Advisor and director."
"I am honored to take on the role of Interim CEO and support Danimer’s critical mission of creating biodegradable materials that address some of the world's most pressing environmental challenges," said Mr. Altice. "We have a talented team and an unmatched offering, and I’m excited to build on that foundation as we execute on our commercial plan, bolster our innovation, and position the company for long-term growth. I’d like to thank Rick, Steve and the rest of the Board for their vote of confidence and continued partnership through this transition."
"It has been a privilege to lead Danimer Scientific and work alongside such a dedicated and passionate team to develop, produce and commercialize our innovative technology," said Mr. Croskrey. "I am proud of what we have accomplished together and believe Danimer is poised for substantial growth and success. While I decided that it’s the right time for me to retire as CEO, I remain focused on supporting Danimer as we seek to capitalize on the opportunities ahead and play our part in solving the urgent problem of plastic pollution."
Third Quarter Preliminary PHA Results
The Company provided preliminary third quarter 2024 financial results for its PHA business. Third quarter PHA revenue of $6.7 million increased by $0.8 million compared to the second quarter of 2024 driven by overall growth in the legacy business and shipments made in support of the previously disclosed 20-million-pound cutlery award in the quick service restaurant sector.
The Company maintains its forecast that annualized PHA revenues will more than triple by the end of the second quarter of 2025, based solely on demand from existing customer relationships and their indicated volumes, including the aforementioned cutlery award, which remains on track.
The Company will release its third quarter 2024 financial results after the market closes on November 14, 2024. A webcast and conference call will be held that same day at 4:30 p.m. Eastern Time to review the Company’s third quarter results, discuss recent events and conduct a question-and-answer session.
Richard Altice Biography
Richard N. Altice has been a member of Danimer’s board of directors since April 2024. He most recently retired from NatureWorks, the world’s leading developer and manufacturer of biopolymers (polylactic acid), where he was President and CEO for five years. During his tenure as President and CEO, Mr. Altice led NatureWorks to significant revenue growth and profitability, leading to an expansion of its second manufacturing facility in Nahkon Sawan, Thailand. Prior to NatureWorks, Mr. Altice was the Senior Vice President and President of PolyOne’s Designed Structures and Solutions, a polymer and plastics converting and food packaging business, formerly knowns as Spartech. Mr. Altice led the turnaround of the business and subsequent divestiture to Arsenal Capital Partners in 2017. Additionally, Mr. Altice was Vice President of Hexion’s Global Specialty Epoxy resin business and was formerly the President of Solutia’s, Technical Specialties division, responsible for the global rubber chemicals and specialty fluids businesses, including Therminol heat transfer fluid and Skydrol aviation hydraulic fluid. Mr. Altice graduated from the Missouri University of Science and Technology with a Bachelor of Science in Chemical Engineering.
About Danimer Scientific
Danimer is a pioneer in creating more sustainable, more natural ways to make bio-plastic products. For more than a decade, its renewable and sustainable biopolymers have helped create bio-plastic products that are biodegradable and compostable and return to nature instead of polluting our lands and waters.
Danimer’s technology can be used to replace a vast array of plastic end products that people use every day. Applications for its biopolymers include additives, aqueous coatings, fibers, filaments, films and injection-molded articles, among others. Danimer holds more than 480 granted patents and pending patent applications in more than 20 countries for a range of manufacturing processes and biopolymer formulations. For more information, visit www.DanimerScientific.com.
Forward‐Looking Statements
Please note that in this press release we may use words such as "appears," "anticipates," "believes," "plans," "expects," "intends," "future," and similar expressions which constitute forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, without limitation, statements regarding our expectations for the third quarter and full year 2024 capital expenditures, Adjusted EBITDA and liquidity, and statements regarding expected third quarter and PHA revenue growth. Forward-looking statements are made based on our expectations and beliefs concerning future events impacting the Company and therefore involve a number of risks and uncertainties. We caution that forward-looking statements are not guarantees and that actual results could differ materially from those expressed or implied in the forward-looking statements. Potential risks and uncertainties that could cause the actual results of operations or financial condition of the Company to differ materially from those expressed or implied by forward-looking statements in this release include, but are not limited to, our ability to attract and retain a new Chief Executive Officer; the overall level of consumer demand on our products; general economic conditions and other factors affecting consumer confidence, preferences, and behavior; disruption and volatility in the global currency, capital, and credit markets; the financial strength of the Company's customers; the Company's ability to implement its business strategy, including, but not limited to, its ability to expand its production facilities and plants to meet customer demand for its products and the timing thereof; risks relating to the uncertainty of the projected financial information with respect to the Company; the ability of the Company to execute and integrate acquisitions; changes in governmental regulation, legislation or public opinion relating to our products; the Company’s exposure to product liability or product warranty claims and other loss contingencies; the outcomes of any litigation matters, including appeals therefrom, if any; the impact on our business, operations and financial results from the ongoing conflicts in Ukraine and the Middle East; the impact that global climate change trends may have on the Company and its suppliers and customers; the Company's ability to protect patents, trademarks and other intellectual property rights; any breaches of, or interruptions in, our information systems; the ability of our information technology systems or information security systems to operate effectively, including as a result of security breaches, viruses, hackers, malware, natural disasters, vendor business interruptions or other causes; our ability to properly maintain, protect, repair or upgrade our information technology systems or information security systems, or problems with our transitioning to upgraded or replacement systems; the impact of adverse publicity about the Company and/or its brands, including without limitation, through social media or in connection with brand damaging events and/or public perception; fluctuations in the price, availability and quality of raw materials and contracted products as well as foreign currency fluctuations; our ability to utilize potential net operating loss carryforwards; and changes in tax laws and liabilities, tariffs, legal, regulatory, political and economic risks. More information on potential factors that could affect the Company's financial results is included from time to time in the Company's public reports filed with the Securities and Exchange Commission, including the Company's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K. All forward-looking statements included in this press release are based upon information available to the Company as of the date of this press release and speak only as of the date hereof. We assume no obligation to update any forward-looking statements to reflect events or circumstances after the date of this press release.