Enviva Reports 3Q 2023 Results
Glenn Nunziata Appointed Interim Chief Executive Officer
BETHESDA, Md.–(BUSINESS WIRE)–Enviva Inc. (NYSE: EVA) (“Enviva” or the “Company”) today released financial and operating results for third-quarter 2023, announced a comprehensive review of its capital structure to improve the Company’s financial position, and announced a realignment of leadership, including the appointment of Glenn Nunziata, Chief Financial Officer, as Enviva’s interim Chief Executive Officer as the Company focuses on executing a multi-faceted transformation plan.
3Q 2023 Financial and Operational Update:
- Reported a net loss of $85.2 million for third-quarter 2023, as compared to a net loss of $18.3 million for third-quarter 2022; net loss for third-quarter 2023 included $21.2 million of asset impairments, $22.1 million of interest expense on repurchase accounting, and $6.3 million of restructuring costs that were not incurred during the same period last year
- Reported adjusted EBITDA for third-quarter 2023 of $36.6 million as compared to $60.6 million for third-quarter 2022; adjusted EBITDA for third-quarter 2023 is lower than the same period last year primarily due to lower revenue from commercial activities
- Progressed operational transformation plan:
- Increased metric tons sold by approximately 14% and 10% during third-quarter 2023 as compared to third-quarter 2022 and second-quarter 2023, respectively
- Reduced delivered at port (“DAP”) costs per metric ton (“MT”) for third-quarter 2023 by $9 per MT to $152, down from $161 for second-quarter 2023 (DAP costs not adjusted for net calorific value (“NCV”))
- Realigned leadership positions to strategically focus executive resources and skill sets on highest impact initiatives to address the Company’s most important priorities
- Engaged advisors to assist Enviva with a comprehensive review of alternatives to strengthen its capital structure, augment liquidity, address contractual liabilities, and increase long-term profitability
Mr. Nunziata said, “I am deeply honored to become interim CEO of Enviva. Since joining Enviva approximately two months ago as CFO, I have devoted my full attention to analyzing our operations, performance, and financial profile. While we have a great deal of work to do, we are encouraged by the progress being made through our cost reduction and productivity initiatives. At the same time, we are actively addressing the Company’s cash flow and liquidity challenges as well as working with customers to renegotiate contracts. The decisive steps we are taking are expected to better position Enviva to continue leading the industrial biomass sector through its next leg of growth. We look forward to providing updates on our progress along the way.”
Thomas Meth, who continues as President, commented “This was a disappointing quarter as our results came in meaningfully below our expectations due primarily to weakness in commercial activities. Given the significant near-term headwinds we’re addressing, I am focused on engaging with customers to ensure that our contracts reflect the value our product provides customers and returning to a business model centered on predictable, profitable take-or-pay contracts.”
Third-Quarter 2023 Financial Results
The table below outlines reported third-quarter 2023 results as compared to third-quarter 2022:
|
$ millions, unless noted |
3Q23 |
|
3Q22 |
|
Change |
|
|
Net Revenue |
320.6 |
|
325.7 |
|
(5.1 |
) |
|
Net Loss |
(85.2 |
) |
(18.3 |
) |
(66.9 |
) |
|
Gross Margin |
14.2 |
|
31.8 |
|
(17.6 |
) |
|
Gross Margin $/Metric Ton |
9.90 |
|
25.28 |
|
(15.38 |
) |
|
Metric Tons Sold (in millions of tons) |
1.433 |
|
1.256 |
|
0.177 |
|
|
Non-GAAP Metrics |
|
|
|
|||
|
Adjusted Gross Margin* |
56.8 |
|
75.4 |
|
(18.6 |
) |
|
Adjusted Gross Margin $/Metric Ton* |
39.66 |
|
59.99 |
|
(20.33 |
) |
|
Adjusted EBITDA* |
36.6 |
|
60.6 |
|
(24.0 |
) |
|
*Adjusted gross margin, adjusted gross margin per metric ton, and adjusted EBITDA are non-GAAP financial measures. For a reconciliation of non-GAAP measures to their most directly comparable GAAP measure please see the Non-GAAP Financial Measures section below |
||||||
Net revenue for third-quarter 2023 was $320.6 million as compared to $325.7 million for third-quarter 2022, a decrease of approximately 2% year-over-year.
Metric tons sold during third-quarter 2023 were 1.433 million MT, as compared to 1.256 million MT during third-quarter 2022, representing a 14% increase in volumes year-over-year. Third-quarter 2023 volumes increased by approximately 10% as compared to second-quarter 2023, with volume uplift being driven by production improvements being implemented across Enviva’s plant fleet.
Net revenue for third-quarter 2023 was lower than third-quarter 2022 despite volumes sold being higher due to spot market wood pellet pricing in 2023 being well below 2022 pricing, with the average price for the three months and nine months ended September 30, 2023 approximately 51% and 50% lower, respectively, than the fourth quarter of 2022.
Net loss for third-quarter 2023 was $85.2 million as compared to $18.3 million for third-quarter 2022. The increase in net loss year-over-year was primarily attributable to four factors: (i) $21.2 million of asset impairment charges primarily related to shutting down a dryer line at Enviva’s Southampton, Virginia plant, (ii) higher interest expense, including $22.1 million of interest expense related to repurchase accounting, (iii) restructuring costs, inclusive of severance expenses, of $6.3 million, and (iv) higher cost of goods sold as a result of selling more volume.
Gross margin was $14.2 million for third-quarter 2023 as compared to $31.8 million for third-quarter 2022. The decrease in gross margin year-over-year was primarily driven by lower revenue per MT coupled with higher cost of goods sold given more metric tons sold in third-quarter 2023 as compared to third-quarter 2022.
Gross margin per MT for third-quarter 2023 was $9.90 as compared to $25.28 for third-quarter 2022, with the decrease year-over-year attributable to the same factors that impacted gross margin.
Adjusted gross margin for third-quarter 2023 was $56.8 million as compared to $75.4 million for third-quarter 2022. The decrease year-over-year in adjusted gross margin was primarily due to a significant reduction in pricing. During the three months ended September 30, 2022, biomass spot market prices, as well as the forward curve pricing of certain European indices, exceeded $400 per MT, representing a substantial premium to the current long-term contracted pricing of roughly $200 to $220 per MT across Enviva’s weighted average portfolio, and the Company captured some of this differential during the three months ended September 30, 2022.
Adjusted gross margin per MT for third-quarter 2023 was $39.66, as compared to $59.99 for third-quarter 2022, with the reduction primarily attributable to a 17% decrease in sales price year-over-year, partially offset by a 9% decrease in fiber procurement and plant and port operating costs.
DAP cost per MT includes expenses associated with cost of goods sold excluding port terminaling costs and shipping costs. For third-quarter 2023, DAP per MT was $152, down $9 per MT from $161 reported for second-quarter 2023. Improvement quarter-over-quarter was primarily driven by increased production coupled with lower fixed costs such as repairs and maintenance and contract labor. These DAP figures are not adjusted for NCV, which is a component of our sales price related to the energy content of the fiber used in our product. NCV typically ranges from $6 to $8 per MT in additional revenue. When DAP figures are reflected on an NCV-adjusted basis, the cost of fiber reported is typically reduced by $6 to $8 per MT.
Adjusted EBITDA for third-quarter 2023 was $36.6 million as compared to $60.6 million for third-quarter 2022. The year-over-year decrease of $24.0 million was primarily driven by the reduction in adjusted gross margin of $18.5 million coupled with higher selling, general, and administrative expenses associated with financial and legal advisors. Adjusted EBITDA for third-quarter
2023 excludes $3.8 million of cash-based employee severance expenses incurred as part of the Company’s corporate restructuring initiative.
Cash Flow & Liquidity
Enviva’s liquidity was $440.7 million as of September 30, 2023, which included $315.2 million unrestricted cash and $125.5 million cash restricted to funding a portion of the costs of the acquisition, construction, equipping, and financing of its greenfield plants in Epes, Alabama (“Epes”) and near Bond, Mississippi (“Bond”). As of September 30, 2023, the Company had drawn the full amount available under its $570.0 million senior secured revolving credit facility. As of September 30, 2023, the Company was in compliance with its covenants under the senior secured revolving credit facility. The Company’s leverage ratio, as calculated under the revolving credit facility agreement, was 5.11 times, with an interest coverage ratio of 2.56 times.
As previously disclosed, during the three months ended December 31, 2022, the Company entered into agreements with a customer to purchase approximately 1.8 million MT of wood pellets between 2023 and 2025 (the “new purchase agreements”). The new purchase agreements were priced at market prices in effect at the time of the agreements. At that time, we entered into additional wood pellet sales contracts that, together with the existing sales contracts, totaled approximately 2.8 million MT with deliveries between 2022 and 2026 (these new sales contracts, together with the new purchase agreements, the “Q4 2022 Transactions”). As detailed further in Enviva’s quarterly report for third-quarter 2023 on Form 10-Q filed today with U.S. Securities and Exchange Commission, the Q4 2022 Transactions have had a significant negative impact on the Company’s profitability, cash flows, and liquidity due to the negative current spread between the sale and purchase prices of the agreements and the anticipated loss on resale of those volumes within an unfavorable pricing environment in the wood pellet spot market. Absent a significant and near-term increase in wood pellet market pricing, we expect the Q4 2022 Transactions will continue to have a negative impact on our profitability, cash flows, and liquidity through 2025. In addition, as a result of operational challenges experienced at the Company’s plants during the first and second quarters of 2023 and a wood pellet market dynamic that has largely held market prices at levels unsupportive of creating margin through spot purchases or spot sales, the Company anticipates that, absent a cure, it may be in breach of certain of its covenants under its senior secured credit facility as early as the reporting date for the measurement period ending December 31, 2023. These conditions and events in the aggregate raise substantial doubt regarding the Company’s ability to continue as a going concern.
The Company is evaluating a number of potential alternatives to maintain its compliance with the covenants and restrictions under the senior secured credit facility and to alleviate the adverse liquidity impact of the Q4 2022 Transactions, including:
- Negotiating with the existing customer to restructure or renegotiate the terms of the Q4 2022 Transactions, or to seek other alternatives to mitigate the potential impact of the Q4 2022 Transactions on the Company’s liquidity
- Renegotiating the terms of existing customer contracts to improve Enviva’s profitability and to better protect against future inflation and other cost risks; Enviva is prioritizing high-quality, long-term contracted relationships with the intention of returning to a business model of primary cash flow generation from predictable, profitable take-or-pay contracts
- Continuing to advance cost-reduction and productivity initiatives designed to improve the financial and operating performance of the Company’s fully contracted assets
- Engaging with Lazard, Alvarez & Marsal, and Vinson & Elkins LLP in a comprehensive review of alternatives to enhance Enviva’s capital structure (including debt maturities in 2026), augment liquidity, address contractual liabilities, and increase long-term profitability
Full-Year 2023 Outlook
Due to the liquidity factors and comprehensive review outlined above, together with lower commercial activity in the third quarter of 2023 and the first part of the fourth quarter of 2023, the Company is withdrawing previous sales price per MT, net loss, adjusted EBITDA, and total capital expenditures guidance for 2023 and future years. Enviva generally experiences an uptick in biomass consumption in the fourth quarter of each year as winter heating demand coupled with seasonal impacts to the amount of solar and wind energy available to power grids drives higher commercial value and allows the Company to capitalize on increased wood pellet demand and higher spot prices. This dynamic, which was particularly pronounced in the fourth quarter of 2022, has not materialized to date in 2023. The Company is therefore expecting a significantly lower sales price per MT in the fourth quarter of 2023.
As a result, the Company is expecting a significantly higher net loss, lower sales price per MT, and lower adjusted EBITDA for full-year 2023 as compared to full-year 2022, and from what was included in our prior guidance. Additionally, Enviva anticipates that fourth-quarter 2023 results, excluding any impacts from the Q4 2022 Transactions, could potentially be weaker than results for third-quarter 2023, as higher spot prices have not materialized and the Company expects to incur higher sales, general, and administrative expenses associated with the engagement of financial and legal advisors in connection with the comprehensive review described above.
In terms of total capital expenditures, the Company is being extremely vigilant with cash management while navigating through leverage and liquidity headwinds. Enviva remains focused on investing in the construction of Epes and the development of Bond, as well as maintaining the health of its current fleet of plants for optimal production. The Company believes the cash flow contribution of its greenfield plants is important to its path forward, and therefore intends to maintain momentum in a disciplined way; however, it will continually re-evaluate all material capital expenditures.
Greenfield Construction and Operations Update
Construction of Epes is progressing well, and the Company continues to expect that the facility will be operational in mid-2024. Approximately 40% of the total investment has been made to date, with the remaining investment scheduled throughout the next seven quarters.
Enviva is evaluating a potential deferral of up to 12 months related to the construction of Bond in light of ongoing liquidity management initiatives.
In connection with a broader effort to eliminate operational inefficiencies, during the third quarter of 2023, the Company determined that the Southampton plant operated most cost effectively with a single dryer line. Therefore, it permanently shut down the second, underperforming dryer line and as a result, it recognized an impairment expense of $21.2 million in the three and nine months ended September 30, 2023.
Leadership Realignment
Enviva’s board of directors has appointed Glenn Nunziata as interim CEO in addition to his role as CFO, succeeding Thomas Meth, who has served as CEO since November 2022. Mr. Meth will remain President and, given his deep history contracting Enviva’s business, will focus his time on renegotiating existing customer contracts with the intent of improving Enviva’s profitability and returning the business to one that generates the majority of its cash flow from predictable, profitable take-or-pay contracts.
Mr. Nunziata will focus primarily on strengthening the Company’s balance sheet by partnering with advisors to execute strategic and operational initiatives that ensure sufficient capital to fund ongoing operations, meet financial covenants, and advance greenfield projects. Mr. Nunziata will also oversee all aspects of Enviva’s day-to-day operations.
Mark Coscio, Enviva’s Chief Development Officer, will assume the role of Chief Operating Officer, and will continue to lead the Company’s growth projects while taking on responsibility for plant and port operations.
These leadership changes are effective as of November 9, 2023.
Third-Quarter 2023 Earnings Call Details
Enviva will host a webcast and conference call on Thursday, November 9, 2023 at 8:30 a.m. Eastern Time to discuss third-quarter results and the Company’s operations and outlook. The conference call number for North American participation is +1 (877) 883-0383, and for international callers is +1 (412) 902-6506. The passcode is 4600445. Alternatively, the call can be accessed online through a webcast link provided on Enviva’s Events & Presentations website page, located at ir.envivabiomass.com.
About Enviva
Enviva Inc. (NYSE: EVA) is the world’s largest producer of industrial wood pellets, a renewable and sustainable energy source produced by aggregating a natural resource, wood fiber, and processing it into a transportable form, wood pellets. Enviva owns and operates ten plants with an expected annual production of approximately 5.0 million metric tons in Virginia, North Carolina, South Carolina, Georgia, Florida, and Mississippi, and is constructing its 11th plant in Epes, Alabama. Additionally, Enviva is planning construction of its 12th plant, near Bond, Mississippi. Enviva sells most of its wood pellets through long-term, take-or-pay off-take contracts with customers located primarily in the United Kingdom, the European Union, and Japan, helping to accelerate the energy transition and to defossilize hard-to-abate sectors like steel, cement, lime, chemicals, and aviation. Enviva exports its wood pellets to global markets through its deep-water marine terminals at the Port of Chesapeake, Virginia, the Port of Wilmington, North Carolina, and the Port of Pascagoula, Mississippi, and from third-party deep-water marine terminals in Savannah, Georgia, Mobile, Alabama, and Panama City, Florida.
To learn more about Enviva, please visit our website at www.envivabiomass.com. Follow Enviva on social media @Enviva.
Financial Statements
|
ENVIVA INC. AND SUBSIDIARIES Condensed Consolidated Balance Sheets (In thousands, except par value and number of shares) |
|||||||
|
|
September 30, 2023 |
|
December 31, 2022 |
||||
|
|
(Unaudited) |
|
|
||||
|
Assets |
|
|
|
||||
|
Current assets: |
|
|
|
||||
|
Cash and cash equivalents |
$ |
315,202 |
|
|
$ |
3,417 |
|
|
Accounts receivable |
|
200,199 |
|
|
|
169,847 |
|
|
Other accounts receivable |
|
12,574 |
|
|
|
8,950 |
|
|
Inventories |
|
192,361 |
|
|
|
158,884 |
|
|
Short-term customer assets |
|
25,742 |
|
|
|
21,546 |
|
|
Prepaid expenses and other current assets |
|
12,369 |
|
|
|
7,695 |
|
|
Total current assets |
|
758,447 |
|
|
|
370,339 |
|
|
Property, plant, and equipment, net |
|
1,663,386 |
|
|
|
1,584,875 |
|
|
Operating lease right-of-use assets |
|
96,079 |
|
|
|
102,623 |
|
|
Goodwill |
|
103,928 |
|
|
|
103,928 |
|
|
Long-term restricted cash |
|
125,475 |
|
|
|
247,660 |
|
|
Long-term customer assets |
|
106,030 |
|
|
|
118,496 |
|
|
Other long-term assets |
|
40,236 |
|
|
|
23,519 |
|
|
Total assets |
$ |
2,893,581 |
|
|
$ |
2,551,440 |
|
|
Liabilities and Shareholders’ Equity |
|
|
|
||||
|
Current liabilities: |
|
|
|
||||
|
Accounts payable |
$ |
47,747 |
|
|
$ |
37,456 |
|
|
Accrued and other current liabilities |
|
155,606 |
|
|
|
146,497 |
|
|
Customer liabilities |
|
32,478 |
|
|
|
75,230 |
|
|
Current portion of interest payable |
|
17,347 |
|
|
|
32,754 |
|
|
Current portion of long-term debt and finance lease obligations |
|
16,336 |
|
|
|
20,993 |
|
|
Deferred revenue |
|
54,120 |
|
|
|
32,840 |
|
|
Financial liability pursuant to repurchase accounting |
|
212,119 |
|
|
|
111,913 |
|
|
Total current liabilities |
|
535,753 |
|
|
|
457,683 |
|
|
Long-term debt and finance lease obligations |
|
1,806,091 |
|
|
|
1,571,766 |
|
|
Long-term operating lease liabilities |
|
108,301 |
|
|
|
115,294 |
|
|
Deferred tax liabilities, net |
|
2,106 |
|
|
|
2,107 |
|
|
Long-term deferred revenue |
|
114,962 |
|
|
|
41,728 |
|
|
Other long-term liabilities |
|
64,050 |
|
|
|
76,106 |
|
|
Total liabilities |
|
2,631,263 |
|
|
|
2,264,684 |
|
|
Commitments and contingencies |
|
|
|
||||
|
Shareholders’ equity: |
|
|
|
||||
|
Preferred stock, $0.001 par value, 100,000,000 shares authorized, none issued and outstanding as of September 30, 2023 and December 31, 2022, respectively |
|
— |
|
|
|
— |
|
|
Common stock, $0.001 par value, 600,000,000 shares authorized, 74,496,537 and 66,966,092 issued and outstanding as of September 30, 2023 and December 31, 2022, respectively |
|
74 |
|
|
|
67 |
|
|
Additional paid-in capital |
|
735,882 |
|
|
|
502,554 |
|
|
Accumulated deficit |
|
(426,245 |
) |
|
|
(168,307 |
) |
|
Accumulated other comprehensive income |
|
219 |
|
|
|
197 |
|
|
Total Enviva Inc.’s shareholders’ equity |
|
309,930 |
|
|
|
334,511 |
|
|
Noncontrolling interests |
|
(47,612 |
) |
|
|
(47,755 |
) |
|
Total shareholders’ equity |
|
262,318 |
|
|
|
286,756 |
|
|
Total liabilities and shareholders’ equity |
$ |
2,893,581 |
|
|
$ |
2,551,440 |
|
|
ENVIVA INC. AND SUBSIDIARIES Condensed Consolidated Statements of Operations (In thousands) (Unaudited) |
|||||||||||||||
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||||||
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
Product sales |
$ |
306,949 |
|
|
$ |
322,978 |
|
|
$ |
855,347 |
|
|
$ |
847,505 |
|
|
Other revenue |
|
13,688 |
|
|
|
2,682 |
|
|
|
36,277 |
|
|
|
7,458 |
|
|
Net revenue |
|
320,637 |
|
|
|
325,660 |
|
|
|
891,624 |
|
|
|
854,963 |
|
|
Operating costs and expenses: |
|
|
|
|
|
|
|
||||||||
|
Cost of goods sold, excluding items below |
|
268,221 |
|
|
|
257,542 |
|
|
|
781,579 |
|
|
|
718,854 |
|
|
Impairment of assets |
|
21,220 |
|
|
|
— |
|
|
|
21,220 |
|
|
|
— |
|
|
Loss on disposal of assets |
|
4,384 |
|
|
|
4,035 |
|
|
|
11,190 |
|
|
|
7,218 |
|
|
Selling, general, administrative, and development expenses |
|
27,582 |
|
|
|
30,407 |
|
|
|
80,523 |
|
|
|
91,802 |
|
|
Restructuring inclusive of related severance expenses |
|
6,257 |
|
|
|
— |
|
|
|
19,842 |
|
|
|
— |
|
|
Depreciation and amortization |
|
36,405 |
|
|
|
34,930 |
|
|
|
101,044 |
|
|
|
86,322 |
|
|
Total operating costs and expenses |
|
364,069 |
|
|
|
326,914 |
|
|
|
1,015,398 |
|
|
|
904,196 |
|
|
Loss from operations |
|
(43,432 |
) |
|
|
(1,254 |
) |
|
|
(123,774 |
) |
|
|
(49,233 |
) |
|
Other (expense) income: |
|
|
|
|
|
|
|
||||||||
|
Interest expense |
|
(21,620 |
) |
|
|
(18,704 |
) |
|
|
(62,285 |
) |
|
|
(42,633 |
) |
|
Interest expense on repurchase accounting |
|
(22,143 |
) |
|
|
— |
|
|
|
(74,074 |
) |
|
|
— |
|
|
Total interest expense |
|
(43,763 |
) |
|
|
(18,704 |
) |
|
|
(136,359 |
) |
|
|
(42,633 |
) |
|
Other income, net |
|
2,190 |
|
|
|
1,671 |
|
|
|
2,516 |
|
|
|
944 |
|
|
Total other expense, net |
|
(41,573 |
) |
|
|
(17,033 |
) |
|
|
(133,843 |
) |
|
|
(41,689 |
) |
|
Net loss before income taxes |
|
(85,005 |
) |
|
|
(18,287 |
) |
|
|
(257,617 |
) |
|
|
(90,922 |
) |
|
Income tax expense |
|
155 |
|
|
|
12 |
|
|
|
178 |
|
|
|
26 |
|
|
Net loss |
|
(85,160 |
) |
|
|
(18,299 |
) |
|
|
(257,795 |
) |
|
|
(90,948 |
) |
|
Less net (income) loss attributable to noncontrolling interests |
|
(35 |
) |
|
|
43 |
|
|
|
(143 |
) |
|
|
48 |
|
|
Net loss attributable to Enviva Inc. |
$ |
(85,195 |
) |
|
$ |
(18,256 |
) |
|
$ |
(257,938 |
) |
|
$ |
(90,900 |
) |
|
ENVIVA INC. AND SUBSIDIARIES Condensed Consolidated Statements of Cash Flows (In thousands) (Unaudited) |
|||||||
|
|
Nine Months Ended September 30, |
||||||
|
|
|
2023 |
|
|
|
2022 |
|
|
Cash flows from operating activities: |
|
|
|
||||
|
Net loss |
$ |
(257,795 |
) |
|
$ |
(90,948 |
) |
|
Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
|
||||
|
Depreciation and amortization |
|
102,292 |
|
|
|
86,322 |
|
|
Interest expense pursuant to repurchase accounting |
|
74,074 |
|
|
|
— |
|
|
Amortization of debt issuance costs, debt premium, and original issue discounts |
|
1,944 |
|
|
|
2,055 |
|
|
Impairment of assets and loss on disposal of assets |
|
32,626 |
|
|
|
7,218 |
|
|
Deferred taxes |
|
178 |
|
|
|
— |
|
|
Non-cash equity-based compensation and other expense |
|
39,759 |
|
|
|
30,222 |
|
|
Fair value changes in derivatives |
|
1,312 |
|
|
|
4,673 |
|
|
Unrealized loss (gain) on foreign currency transactions, net |
|
43 |
|
|
|
(208 |
) |
|
Change in operating assets and liabilities: |
|
|
|
||||
|
Accounts and other receivables |
|
(31,228 |
) |
|
|
(9,654 |
) |
|
Prepaid expenses and other current and long-term assets |
|
5,000 |
|
|
|
(32,564 |
) |
|
Inventories |
|
(781 |
) |
|
|
(24,609 |
) |
|
Finished goods subject to repurchase accounting |
|
(30,267 |
) |
|
|
— |
|
|
Derivatives |
|
1,391 |
|
|
|
(3,983 |
) |
|
Accounts payable, accrued liabilities, and other current liabilities |
|
(21,854 |
) |
|
|
4,144 |
|
|
Deferred revenue |
|
94,514 |
|
|
|
(180 |
) |
|
Accrued interest |
|
(15,407 |
) |
|
|
(9,045 |
) |
|
Other long-term liabilities |
|
(21,398 |
) |
|
|
(15,953 |
) |
|
Net cash used in operating activities |
|
(25,597 |
) |
|
|
(51,552 |
) |
|
Cash flows from investing activities: |
|
|
|
||||
|
Purchases of property, plant, and equipment |
|
(212,529 |
) |
|
|
(162,449 |
) |
|
Payment for acquisition of a business |
|
— |
|
|
|
(5,000 |
) |
|
Net cash used in investing activities |
|
(212,529 |
) |
|
|
(167,449 |
) |
|
Cash flows from financing activities: |
|
|
|
||||
|
Principal proceeds on senior secured revolving credit facility, net |
|
132,546 |
|
|
|
1,000 |
|
|
Proceeds from debt issuance |
|
102,900 |
|
|
|
278,571 |
|
|
Proceeds from capital contribution of New Market Tax Credit financing |
|
— |
|
|
|
12,307 |
|
|
Principal payments on other long-term debt and finance lease obligations |
|
(20,309 |
) |
|
|
(28,134 |
) |
|
Cash paid related to debt issuance costs and deferred offering costs |
|
(1,769 |
) |
|
|
(5,376 |
) |
|
Support Payments received |
|
9,821 |
|
|
|
14,018 |
|
|
Proceeds from sale of finished goods subject to repurchase accounting, net |
|
30,505 |
|
|
|
— |
|
|
Proceeds from issuance of Series A Preferred Stock, net, which was converted into common stock |
|
247,900 |
|
|
|
— |
|
|
Proceeds from issuance of Enviva Inc. common shares, net |
|
— |
|
|
|
332,970 |
|
|
Cash dividends |
|
(57,104 |
) |
|
|
(158,356 |
) |
|
Payment for withholding tax associated with Long-Term Incentive Plan vesting |
|
(16,764 |
) |
|
|
(16,812 |
) |
|
Net cash provided by financing activities |
|
427,726 |
|
|
|
430,188 |
|
|
Net increase in cash, cash equivalents, and restricted cash |
|
189,600 |
|
|
|
211,187 |
|
|
Cash, cash equivalents, and restricted cash, beginning of period |
|
251,077 |
|
|
|
18,518 |
|
|
Cash, cash equivalents, and restricted cash, end of period |
$ |
440,677 |
|
|
$ |
229,705 |
|
Contacts
Kate Walsh
Senior Vice President, Investor Relations & Corporate Communications
