ASPN - Earnings call transcript Q2 2020

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Aspen Aerogels, Inc. 2Q 2020 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers’ presentation, there will a question-and-answer session. [Operator Instructions] I would now like to hand the conference over to your speaker today, John Fairbanks. you. Thank ahead. go Please

John Fairbanks

like the you CEO. I'm us in ended well of most Financial John few financial on summary Young, business use financial I are Thank call and for release summary turning non-GAAP and summary quarter a is Aerogels to results of press over compared to Officer. balance six is the operations, the release conference as GAAP a management's XX, Don would that items available statistics call. a Fairbanks, President applicable housekeeping as the and address of for of the afternoon. Aspen's June measures reconciliation measures website, the a before for the section XXXX. financial and Investors joining Aspen's Aspen key There to The Good of operating months developments Aspen's sheet Aspen's www.aerogel.com. statement Chief Included press announcing and

In uncertainties. plans section of and statement one will regarding beliefs, targets, this that version any website addition, include subject statements, the archived is our historical business risks other including projections, to webcast approximately These note Please a forward-looking expectations, forward-looking year. prospects, fact. statement Investors today contain and of will for any outlook, an discussion that estimates, Aspen's not statements are

filings website. of XXXX. The be report Aspen's annual forward-looking particularly as section release today statements in SEC, detail the today A can list also be XX-K. that in today, more most press files SEC may results issued the company's July The can the Form actual views and issued Aspen's are factors differ materially forward-looking from the the company's of Aspen Aerogels' reports release of with Investors discussed statements. company's in press affect Aspen actual in with expressed made represent the those could the found found in results on company's recent in today and these XX,

or Aerogels Aspen forward-looking these events circumstances. to reflect future obligation any disclaims update statements to

we will intended prepared and and including this accordance not accepted These substitute for principles, measures directly are The I'll financial isolation measures, and or are be During to measures in not comparable most these non-GAAP generally with considered a are GAAP. accounting now financial CEO present prepared with These of U.S. to we Don refer or measures financial in call the definitions to results non-GAAP press today's Aspen in why reconciliations GAAP. as EBITDA. call, to a adjusted measures in GAAP of Aerogels. release. President over financial measures turn Young, of non-GAAP discussion these non-GAAP financial included the accordance

Don Young

for recent Good current and John. vehicle Thank the strategy our for two QX results our but related ongoing not start XXXX to environment. operating by earnings will business joining our I afternoon. on to initiatives. call. sharing energy business, you, electric infrastructure you also our our will core perspective our I Thank us discuss only also

long-term the and our we've for ensure and new guidance Next, the introduce year-to-date John financial the financial describe made strength financial review progress QX performance, to of will company XXXX.

the We conclude will with session. a Q&A call

Let's negative business, near-term start a our particularly obvious. having The on generation. on is with impact revenue the our pandemic

contractors energy contractors onsite COVID-XX, It serve. to response we to order contractors, LNG by world. Our number products to of the the density. worker reduce petrochemical critical around access are owners infrastructure have is to installed working limited that have in facilities to refineries, plants for and terminals the in facility us In

distribution U.S. our For a channel. resulted the capital, market. of manage maintenance notably challenge destocking which during this our in most reason, QX, to impacted in working their has revenue QX, been actively the the distributors negatively own Adding in

period of given Fortunately, in a distributor can time. only a once destock

So we impact it's believe negative for destocking pandemic, largely out. has this of a played

U.S. Looking on for distribution data a this When XX%. rebounded clear last capacity demand, restocks. examine the of the now facilities improves for maintenance utilization sign. needs facility strongly when Capacity maintenance, and In significant the year expect U.S. access EIA pent positive we to this so the below for rebound pandemic utilization is April we the utilization partially was U.S. An XXXX, revenue period up active XX%. approximately to It side see we that trend to especially view there business. over as channel contractor forward, as we intensified, XX%. dropped refiners is has regular a in refineries, capacity refineries

environment, new two is to we space, pipeline products continue work In sites a converting financial quarters in expect therefore, uncertain XXXX. we our And tasks COVID-XX demand we is of of first our a will to and including our with assumption lower guidance and have given is to face energy certainty density dual begin. of for sell Also, even our to levels be commercial underlying value with wins. gain predict share centered will the workforce proposition that both will our and organization, reality be of our to simplified impact seen the hard stops maintenance continue for when that critical logistics project starts down requirements market cautious, consistent our be boost an relatively work in additional To in year. strengthen sales for on the on it However, the infrastructure to into the consistent the remainder revenue reduced and focus all regions, energy for market. quarterly a project

investments confident dividends. will these are pay that We

COVID-XX January performance largely had and quarter we for quarter X% during with year-to-date months, our which February. was revenue the down expectation, positive consistent with down two pre-COVID second Our XX% and

from pandemic $XXX material we adjusted lower our both Our increased our aerogel at to to breakeven East took this costs in revenue two a approximately our time the Providence This for EV the Interestingly, to adjusted $XXX revenue The into R&D of the bill to emerging compensation is yields work strategy, a breakeven markets, when result and of our actions achieved to important drive our improve of the productivity decreased and lower million we and manufacturing expenses new EBITDA and spending plants. platform XXXX. technology year was our our level including the required decrease to reduce leverage and last has for our level impetus ongoing was space. EBITDA million to support for in profitability. breakeven in opportunities discretionary diverse valuable

a we company have our May. in with significant line strong a from to loan the believe positioned credit raise Importantly, equity COVID-XX company operating an also extension We emerge time, during the strategic we and with strengthened February this and and momentum. in period platform PPP

to we strategy, initiatives electric make our vehicles. substantial progress of addressing subject with two the On continued

manufacturing our by manufacturers property. We from our to runaway. of have thermal of exchanges silica-based can current fire is blankets product, with existing active infrastructure our runaway technology our manage produced from The The solutions runaway accelerated to customers optimization critical PyroThin, product our technical development EV protection to energy manufactures. EV better be delivering existing key our and using and our intellectual protected benefited silica provide thermal assets leverages aerogel mitigation aerogel solutions thermal to experience

in the indicators gain the revenue opportunity XXXX thermal EV is market or performance of XXXX. in generate One our to runaway adoption for for from to initial

will fact, and order BYD energy an be platform. Blade course battery is BYD’s used partner EV focused automobiles innovative buses. have used density producer in an largest be Chinese new is also sale thermal In to be will manufacturers. system safety, BYD barrier its initial vehicles for system, and Asian Battery we and to cost. BYD of on available to Blade shipped Battery electric Blade The other in the by of

The in multiple guarantee XXXX responding a PyroThin midst and our but multiple aerogel potentially we RFQ prototype and adoption And we the within of does will hunt a to revenue. With customer in potential technology significant battery near-term for quote receive for product our to a of If completed that of In with QX to EVs. of with does continue the development some we're of contemplates orders spanning product. addition, the millions the dollars are totaling request successful, it mean carbon have validate we the not in for we during potential success, nears hundreds U.S.-based – a with efforts, business accelerate significant of work small materials our our in respect order RFQ fleet work. market.

cost our vehicles. improve in the effort the on goal and expanding aerogels reducing energy full advantage key aerogels our The of attributes a the batteries, Our leveraging decades density and manufacturing experience at of the electric of ultimate to taking lithium-ion enabler range is of of scale. carbon drive unique centers

manufacturers. items. We battery accomplished important Evonik, and in-house SKC of leading improved to We work engaged In continue built that and development accelerate six evaluation even performance battery other battery we both testing the of actively partners several months closely an fabrication allow EV and team with the faster. our materials. and companies we XXXX, industry will our with first are to and We significantly us expanded both cost capability our and

as our This we and to feedback on our cells energy is of aerogel sample from systems full to to yet stacked optimize test quantities materials partners we also goal newest continue to back aerogel attractiveness cells total During The appealing. the our to critical equipment. potential partners our evaluation with larger carbon more full level materials. back XXXX, test measure new will to of advanced battery against is our make provide target. carbon to remainder in more The production data multiple partners a output

we or our with our We leaders both continue additional partners XXXX. relationship enter existing during agreements industry that other to with and into of believe will one expand

breadth opportunities based two technology demonstrate is build the trend and with that diverse proprietary goal businesses electric the vehicles our to value and of aerogel Our leveraged and mega to platform. these towards further

will out our important strategic initiatives. progress on to these We related to continue report

correct our Finally momentum actions strategy. we we believe recap, and in commercial are the advance our regain to fortify unusual the taking that time, to and this company to

at keep and the time is everyone strong. to goal to the keep Our company on healthy, the team, same Aspen safe and

company our demand the will profitability These We correct balancing are maintain balance. manage act a we on the drive strategy. on executing and ensure we to times focused to to continue aggressively our and

John? of call I'll Now a financial turn over to results. John the review for our

John Fairbanks

Thanks, Don.

financial reported quarter our running Let’s at for through level. XXXX results start the summary of a by second

the quarter XX% declined Second of XXXX. from revenue million million $XX.X quarter, $XX.X total to by in second

million quarter year. Second share or $X.X or $X.XX loss $X.X share last million per $X.XX was versus net

ago. Second items quarter income we core compensation adjusted a million do million to year adjusted that EBITDA our expense was amortization, define We not depreciation, EBITDA loss compared operating believe negative negative before of as are other stock-based taxes, performance. interest, or $X.X net $X.X and indicative

half $X.X by last or XXXX million. or improved declined And $X.X EBITDA For remainder focus I'll revenue for remainder or to $X.XX improved $X.XX to to our share a of on $XX.X X% of the million per to loss million Through loss $X.X $XX.X the of year. of net quarter and adjusted $X.X loss of comments first ago. a outlook share year the second year. loss a per performance for million first half million XXXX, of total Net million my the in a versus the compared

COVID-XX our process well believe I'll improve. However, bill in and want challenges of we're our initiatives programs. multi-year indicates detail period. spending operating decline as in in productivity that of market And yields that research half performance reduce support results. the million, market business to adjusted annual despite an expense market uncertainty, improvement increase our during to the COVID-XX drive our to development revenue generation the the East provide by And the of and enable initiatives profitability driven business emphasize we electric on improved in the Providence million to improving. related and technology material XXXX I compensation in improved investments are This our first we and are costs, next $X.X fundamental of plant we economics our we're improve vehicle related the actions and first of strategic making quarter EV in discretionary and profitability will second our to despite energy EBITDA in $X.X now was when the the importantly, of This a additional the continued increases. components taking conditions Aspen reduce by price we response that in improvement despite to

business work in COVID-XX The decreased limiting by foot. related quarter And in customers time-to-time related research by during in lead mix density aerogel based outbreaks. and offset Total planned $XX.X their XX% to First the is market maintenance slight I'll shipments revenue. X.X decreased discuss refinery These the a quarter the in but in by revenue X% a prevalent market, related part, onshore project revenue, maintenance largely per from by million related the versus million U.S. revenue second in $X.XX square total year. project related blankets. our of business, growth number or Gulf decline response reduce quarter most to the business decline third-party average services notably million feet region. related insulation in the subsea of driven in million total decrease was , decreased by last in to This in quarter, worker petrochemical $X.X shuttering demand COVID-XX we're revenue in decrease operations by particularly a our during are in COVID-XX coast internal the square price $XX.X market. to and globally reduction XX% U.S. strong temporarily and facilities LNG in globally, selling energy of our issues affected our impact our The access installers and second

discuss the quarter during $X.X million second I'll gross year. second was million quarter last gross versus the XXXX during $X.X Next profit profit, of

material gross XX% gross If part second the offset reflected expense quarter volume, with XX% average both profit of last associated research that in $X.X first the quarter. at million had inventory reduction price was decrease margin quarter in our revenue gross in in gross improved million expense X% margin would of quarter selling in decrease our quarters. largely manufacturing decline in services to $X by the compared profit maintained XXXX in decrease want year. highlight our we in second a levels, I inventories during driven a XX% However, to the to have and during decrease The XX% by the and decrease costs. in was

quarter However, cash we inventory to chose to decrease improve the balances second flow. in

confidence gained that manufacturing As operations pandemic. we we the COVID-XX sustain despite could

discuss $XXX,XXX million, expenses, to year our I'll increase research versus expenses by despite and operating our in support last Next quarter development of second decreased operating X% or a $XXX,XXX in $X.X in in tight COVID-XX of expenses travel controls electric the decrease the was expenses initiatives. vehicle decrease in The to cost principally pandemic. the a related we result discretionary response operating instituted and

and expansion decrease $X million totaled million efficiency expenditures our of battery by our the Cash $X.X and to lab during supported our facility. reduction negative Capital the cash discuss associated Massachusetts working for our flow second offset was used of improve part adjusted working the in capital during of reflected decrease an million, inventory a accounts in payable. our a I'll in aerogel operations sheet second in the of of quarter. $X $X.X in $XXX,XXX the net reliability Next of Northborough, investments balance principally and carbon million, quarter headquarters capital million in and Providence East investments result decrease EBITDA in quarter. The $X.X capital the

and of $XX.X current the quarter, million $XXX,XXX from receive proceeds the with We facility ended quarter And equity PPP million. under stock proceeds of credit options. the our million in also assets shareholder's of revolving $XX.X loan $X.X exercise of nearly No million. cash. $XX.X of we Net During borrowings second

$X.X quarter We also an revolving credit additional million had to at our end. available facility access under

our At with of uncertainty issues demand business products financial to that support we constraints prior due for and to adversely worker continue the operations to balance XXXX pandemic. density products and At continue indicated accurate ongoing pandemic quarter that the markets fund we difficult. our Accordingly, in our impacting of energy during year, credit planned will sheet, pandemic. and projections for revenue of call to COVID-XX facilities access achieving COVID-XX press volatile strategic our investments. we considerable available this associated last outlook the the our for customer at withdrew and Importantly, and the the our required were XXXX making expect investor April we and have first liquidity believe demand to we present, time our

have for settled aerogel demand to we However, oil barrel that stabilize. believe blankets and prices above patterns begun have per $XX

While some risks project-related will first potential will but XXXX upside roughly we and second half that uncertainties with XXXX below expect for fall half our be There's levels. in line currently remain, revenue actuals.

we're full range is result, revenue to million. a and expected expected is between is new per outlook year expected range EBITDA EPS loss between XX.X outlook as outstanding million range year. shares a average introducing at expected million of As Adjusted Total XXXX to and $XX.X between $XXX and loss assumes a is $X loss EPS million. breakeven. million follows. $XXX Net to of range The million $X.XX for and the negative $X.XX the share. to a weighted between $XX.X

XXXX gross depreciation XX% amortization interest $X $XXX,XXX. average and stock-based also expense plus at between In assumes of selling foot, or $X.XX The of XX% margin full of addition outlook of minus $XX.X year per and and expense the outlook square price million compensation million, $X.XX. an the of assumes

to actions and the turn and company for sound to call aspects And Q&A. are our to I'll investments. expect are improve expense the we reduce prepared of the $X the our fundamentals monitoring business Turning improving financially range will prudent for strategy. our of out year. outlook to total EBITDA context expenditures we adjusted capital new to committed we set in our then and our the the billion cash, believe XXXX approximately we to execute hand. planned to and strategic million between operations expect support full-year credit the take And cash to we to keep to believe with Sheryl have the We and have exit believe necessary back million levels XX.X continue sheet, all XXXX and cash balance fund on We to required $XX and liquidity flow. available our remain of to taken actions full Overall, business

Operator

first is Instructions] [Operator go Please of Your from Eric Stine question Craig-Hallum. ahead.

open. is line Your

Eric Stine

Don. are doing? you Hey, How

Don Young

Eric, how are you?

John Fairbanks

Hi, Eric.

Eric Stine

I'm Hey, fine.

a remainder surprise, Talk the the a we I it. vehicle the if for every described to seen the hear is comes in you. every a in day-to-day you've And that signs, commentary grown you in bit little could just talk business the the bit talk before the project of business not and mean, how this about until mean, weakness did the point seeing QX would it I release I with also within you core believe just year, is in that up hoping I about some So of end how back, to was like the, but little were there. topic, about that seems moving quarter, love markets expect electric business that year view onto that that business you that you the business. about I some then positive but and maybe that the

Don Young

Yes.

projects and at that impacted So work lot cancellations today timing the industry the part world. of that we've seen our on the basic for is there's opposed consensus how a delays of as the we timing. primarily to project least of in of pandemic to contractors work, talk the going Whether discussion about or project now has distributors, for our

through and course position – over of so to we're in many position in to in be feel decision, those we are XXXX doing in have projects and that passed the we financial XXXX. a prime participate are for And There competitive those and that projects. everything several construction, cases can begun the have we're and

on XXXX. PPP will of will, will the if think you replacing are me, – we an which – but two end focused the refinery competitive in we do towards strong, PTT that that have, three very to and projects we're are believe in end QX that we excuse And in only LNG that, as we're position our We or there region. focused not well, project that come win, in tie and areas the also on petrochemical prime to LNG particularly Asian the a the business,

the to It has. It pandemic down. hasn't had an I to impact. clearly slow don't So again, that has want people caused pretend

access, as frankly, you comments, a – execute stops monitor I and in on right projects our depending are into world. to there's our of have where so been the carefully And the my kind those is again, worker noted job contractor rolling And we access and in sites. focus starts now to that access,

we're for We right are us, in pause would seeing or cautiousness Asia Gulf the And all pretty access on in in COVID-XX little important Gulf. States. seeing for little of particular, all a read here And and an the region Texas activity United that that's a we Coast the levels a it down now, the Thailand. in in about extra good I and just the around reasons time, say the

is think I same. the largely our outlook

these – clearly Just pauses, delays, these clearly influence. are having

Eric Stine

business. the potential Is fair I only from looks say are upside Is more and then the Yes. the schedule when of terms offset business? access day-to-day where distributor I part It a is have half, to project enough factoring that early like or second little of the you of that destocking that maybe guide in truly a of at think that bit level that you think guide is refinery Or for XXXX the no problem? upside in about there? in the improvement is lot that into the And that seems an that is some something first. done. fact business? visibility modest And destocking a you mean, there's it you really it that's mentioned the by – just some

Don Young

Yes.

capacity us So returning and the activity that levels assume back to activity refinery of refinery lot like I to new are three think assumption. on so think QX for core four translates look of prudent feel talked the those we view, side the some kind pre-COVID of extent in petrochemical numbers, just back from norms, We access more with no of to and side on and financial the guidance is question it's characterization that and right. based that an our I about world. To the to quarters point your going a

the for that a So bit also project. us, upside forms of

work to we off again, have look, in them. better to the had So, access expected stops as U.S. again, upside than maybe assumption here well. projects those is, and starts themselves project I think of an projects, that in we And some some some that some our get have finish

Eric Stine

it Okay, vehicle that RFQ get deployment? is it start if that mean would the electric decision a just maybe you of where that the large you that OEM. start just by from Maybe something American you with versus that technology would details to you been you a opportunity, or are move the fair RFQ, Well, to curious, furthest helpful. small turning get that one is that Did talk with? with just Or say mean, that competing order that's the not? they pilot OEM? North another And the for along to a really you've that I is kind is once then point? forward mentioned it the about,

Don Young

well. and it they're environment. lot question, a early a it's parameters product, this, that And our this some of some question, moving quite solution. really a product, if No moving factors competitive are thin that's of the There protection, the think No fast us type the it's environment. we of we're where really fast. suits you hurdles a We application a pacifier an feel and competitive product. about excellent of of over We've nature compressible of made have

opportunity order moving is expect but per crumbs We revenue trail It shipments. in it's emphasize noticeable before, noticeable on believe an think in that of it not opportunity revenue. direction. XXXX at important of and year. we that we quite it's of where really a would the XXXX-XXXX would XXXX timeframe, larger would Again, start perhaps me large the clear is can more this to important that space, the really had have infrastructure some right be for this prototype $XXX in would in still we last I So work but I’ve to a see competitive. than least it's And that business, type se, expand it's QX of and require fleet be that said parts, we've position, order. that amount the that revenue The as to revenue, initial in is our we're and and begin energy this but strong where you we're done million initial – The sure scale.

John Fairbanks

to XXXX important mention the model the it's for it's of think I that year.

it's time, XXXX, and there initial that production late commercial and So ramping XXXX prototyping in XXXX, beyond. an XXXX late then introduction at after

Eric Stine

thanks. take rest Okay, the offline. I'll

Don Young

you, thank Yes, Eric.

Operator

from is Amit question Wainwright. H.C. Please Dayal ahead. of next Your go

open. line is Your

Amit Dayal

John. you. Hi, Thank Hi, Don.

Don Young

you. Thank

Amit Dayal

So to with side XQ say shipped already respect unit to progression, did of that the amounts your some event? is sort of or you've BYD also you

Don Young

We’ve delivery shipped and for fabrication to Asian partner, responsible our is who to BYD.

shipped correct, are that So you we have product.

Amit Dayal

Okay. And then…

John Fairbanks

a thousand was That a couple of kind hundred prototype of level. dollars. That's

Amit Dayal

to relationship any take, you et provide. would So can there’s you're – this of what cetera? long color sort level, If needs that next there's to that how does happen move that to how for order the of if period, will? If a testing

Don Young

been of again, ago, and a year. they for working believe months is, as battery fleet, again, the time prototype I with Blade, in and the and industry using already. new actually – period of this this to a few a This what for They've refers June refer material announced BYD’s so-called – systems, to we

looking And and that is our that so for this material to for is with material. we've through BYD again, a through new our testing play a material role substantial in gone battery And, that system. partner

Amit Dayal

other questions my this take I’ll on Yes, offline. Understood.

away? permanent? as back to how have you think the them Are cuts be adjusted back sort expectations, getting Just of scaled going this [indiscernible] cost these costs some some we into ship et will cetera. should to back the And Would that much of you and business? going sort of of you've made, try sort EBITDA these of of

Don Young

you do John, want take to that?

John Fairbanks

Yes, I will.

improvements quite and of a COVID-XX. would cost spending at face. to back our love the was not a could will a will that we I lost compensation, be through I probably savings we're it'll operate It’s definitely mix. a we've I will and learning effective think incentive industry, Other line of position something reduction way to those our get we portion this the in it be to traveling. expenses the we've our sort bottom return. to the not see is of of that very operated achieving at because present. do in that new set to think flowing think face and some in bit have we're We is our We mean, force virtually. that where sales a pitches savings present in and actions taken that to we doing back permanent sales of in And mode. making be discretionary I pre-COVID pulled A

that So we've expect well. back. We'd return that to pulled as

have So but think as take to is they sort a these find are help management of and mix, make us team profitability of objectives. a drive cost ways to measures goals our that to our achieve and permanent one of savings as and learnings it's we sure I some

Don Young

I in had we are past that going raw cost fundamental. reductions and those pandemic. material us can improvements, place yield stay the tell you, with those around are productivity and initiatives Those to

course knows of Europe. advance break terrific probably me be team and some well, less solidify I reasons our our help also I those It's from relationship back – an the we virtual a John of don't where biting sort harder ready sometimes will. here this doing. a in a I'm to onto key to of Asia. without of to right period the we've partners. made lot bit has lot of we're our there COVID a And traveling. work that partners, during are to say And but team world. And our coming, now for – that me strategic being of I expenses but in credit who are you – able general, that can lot get potential advancing will the of back the team with I advance strategy. for for in be interruption, of to little go. tell statement, a really delay exactly into the our strategy partners kind And to and will, progress I'm new my you, believe distance. has are think job they the will a it that lot give good want if income good a at but reasons for right. the that's is enter There are our to It's one done to a

Amit Dayal

back to just North EV orders an from dollar these [indiscernible]? maybe deliver you're opportunity this going American perspective take back question, What you. a Understood. investment saying is to last levels would it And opportunity; mostly of the to going hundred million for

Don Young

a question. good That's

just with And, to got spread capacity deal this XX-year has out early let course me of X- we of, over plenty So the to say, period. again, the years.

that optimize it’s we so budget around of million does operating our total. expenditure so-called mentioned, And within our And re-tooling well product, our three to John performance that one capital new are in lines this PyroThin. $X

of a will be it So that. subset

We play. business right in able we're that strong, orders see feel interesting the to to the and into good to we energy capacity. build back to comes we So be years will shape that comes how anticipate additional be in the infrastructure will come. do meet time this those It at business

And so fine tell, now. will we're but for time

existing at million we million, our that's have last million remember $XXX of $XXX revenue year. $XXX artificially our And think roughly If million, in plant. you little manufacturing low, $XXX were guidance, capacity we I

even grow the of we room base. to asset still some here have running that, So continue with existing confines within to our

John Fairbanks

is we've existing form for production silica a retool energy the the it's when want this that of to based stress, optimizing what markets East plants. said Providence in product it's this that in – product, but been be And assets is manufactured the similar supplying that years. Don aerogel can just the I very really

Amit Dayal

to Understood. say, problem good was going have. to Yes. just a it's I

John Fairbanks

Yes.

Don Young

also silica the on aerogel have that the platform company. into valuable well. some that EV and And our make comes both capacity John way decision, capital it talked that as as minimize there's it. technology additional that believe really aerogel about mind well. side And about are carbon have to ideas I we my platform or technology platform this We're again, to time technology think exactly, And on additional the that's approaches when no leveraging No, capacity aerogel position taking capital. to a question develop and markets in own on company, us additional that a new our we about, we opportunity partnered advancing as

Amit Dayal

guys. you, Thank

Don Young

Other we're now one and handful right about with it. this really excited

Amit Dayal

much. I understood. you have. so Thank Right, all That’s

Don Young

you. Thank

John Fairbanks

Amit. Thanks

Operator

from Jed Your ahead. is Genuity. question Canaccord of Dorsheimer go Please next

Your is line open,

Jed Dorsheimer

of a Hi, guess. addressed along come of kind XXXX, rig I is I of was wondering, XXX all per million. digging versus if But taken also, wondering, terms X just just I'm million in count and come by you've the that's so we're energy I barrels at driver core to less less us of lot then a I and in bigger than I'm at from us looking energy guess lines, surprise, look but business same XXX thanks the of them, that to peak XX.X than COVID? in Don. of down day in into the I kind and going hit that know going to market And COVID the

figures reconcile ramp its some is I'm out going there? when at looking related to So happen, capacity just more as COVID figure I'm of just wondering those I how the the trying related is to or

Don Young

facilities eye necessarily can't And day-in our just levels They we've on talks It out these without had run really either about refineries EIA program. numbers. ongoing these within capacity These activity utilization. or and optimally their refineries. safely the day-out an come maintenance facilities consistently weekly, the –

early July in we're us look, bit I XXXX July I So remember April we gangbusters, a cited it capacity XX% ruffled of mean we the for of indicative back the XX% it's me, a being, sixties to of into the feel number find XXXX little particular about and felt happen number that April to for just really XXXX, interesting was utilization its to of down now. still be XXXX, that numbers pretty were I about days in to it's we dipped up starting way going in and mid-to-high And better. little

points and market represent reasonable seeing in do. is part now Asian we I We pulse the started most are economies back geographic I exporting, U.S. it's We're heels we're of for there market we're on the ours. back can't the think And the bit little I important product diversity market, us. than but well. John some how do to more ranked I want that right data very moment. I XX%, a are XX%. for as that over say again, our to what to the – not emphasize the think a there, now We're in does a have But, we active at So Jed, a our but on million little, believe international, as maintenance know here come Gulf you Coast

if home terrific a team of have in will. working that of field, We kind people market. you It's our

it that's pulled when the did managed feel would right, little didn't they And really felt They quiet, We distributors those you so And QX. we exactly do. a we in and a that. destocking – inventory feel really their working I bit. what their capital, back help, bit

part it’s And kind we to a prudent bit little approach to of the the take the in QX. of remaining year. force so of thinking a – double Again, whammy wanted about

going assume okay, to said, QX. let's it's we be lot So just a

just bit. our of we range I number up start maybe stays that that a the guidance part to see that middle get there, goes or Our And better hope level think us is into activity happens. a little upper would that XX% if up

Jed Dorsheimer

one pricing. last due put And there, of have that question utilization have refiners to been the there, gone that the under number you it. lot out there Got a

that stay going to as a is is denominator? that apples-to-apples business lower aren't So a the or a up in companies able that function therefore of true number

Don Young

Well, people that that's – the exactly haven't EIA to deport[ph] extent. I numbers – quite

their numbers those think well. pulse the reliable finger I on and are have pretty pretty

refiners in at most time. point the call have part the their think – healthiest I wouldn't for I them

cetera, levered frackers, I cetera. think they're stronger than some et et of the highly

the business those serve. big think are the I of companies for we most broad-shouldered part that part So –

Jed Dorsheimer

it. Got you. Thank

Just I questions mind. if turning few don't got EV into you side. the a

to clear It's for materials? just BYD for correct? not is passive the So, the product battery be protection, the with fire carbon

Don Young

runaway Correct. is thermal to lithium-ion within It their program. battery address

Jed Dorsheimer

the just you and So, year last shipped within to that them?

Don Young

the Within last month.

Jed Dorsheimer

month. last the Within

just to from So expectation sure – and make perspective. an I want

be battery be the for them, the protection adopted that So would for are – fire model year pack it you the into the with to expectation? booking that XXXX

Don Young

two talking or about have And we a take when the of he activities Well, as that launch, XXXX with of which that know you North volumes, opportunity, if October in going was middle process it RFQ we're on. XXXX particularly will. place that September around, initial the will based is John, American said in you

mile. XXXX a as it of think yes, So

assume I should think XXXX the timeframe model same you launch. the XXXX On BYD, late

Jed Dorsheimer

in to the for I you critical I'm If fire. really in there that its it’s that program, I able the mean, element curious that of because circum just sector[ph]. terms that to messing seems even been risk you've catching kind something to car, reducing timeframe a on Is fantastic. in BYD works. aggressive I something mean incredibly back of particularly the that mean – is sounds of accelerate hats-off how in timeframe it. terms are that there of Got that's

Don Young

the speed We with, with –we've working very been with with the most addressing closely are we're which companies issue. impressed they this are

idea, these say this issue design to fair systems to early these this the I not they're retrofit saying behind EVs. anticipating of of quite they're – it. might were that. not it's problem. to be think this the are their that think And they in addressing a not is I'm But with a having development they battery I particular like wrestle little in quite it that in degree that for kind

range address cost. all talk about really attributes they one online. going And they're safety, it safety the about system and energy so And out blade the or mean, you advertised in and I systems. can it blade, its is battery density their is to drive of read

at right beginning put so And safety they of that. the

in so and emphasis liked we're problem they've look, history here, we or intensity. have business intimacy, and that's chemical worked to the that Jed, long think our the solve. they're And companies, the that, we've of believe the working about I – don't the energy safety jobs us a is Historically my the it we that customer in product, innovation, the are automotive moving we business. suits career well I of where here fastest suits beneficiaries and a emphasis large what like now of but we it, really got you, in this very all and other at business really companies, that speed, industry with had in not disagree auto we So I've whether have those that's to with addressed Aspen level and unless

Jed Dorsheimer

Listen, fantastic congrats. so I guys. for will of take probability understand I to and Thank And the I takes, a rest you. yes, offline. you the think and win timing. better it’s the puts did want

Don Young

But I win hard down over pretty mean, we quarters and of we're, a middle play are And course good. a indications couple months We going really think big the those of And the yet. of still to but the to again is and time working game. haven't – declared exactly and keep this we're out years. well. customers serve next, the our we're head in

So you, thank Jed.

Jed Dorsheimer

You are welcome.

Operator

are further Young closing for will I at time. over Don this remarks. questions There turn no the call to

Don Young

our progress we Aerogels, forward evening. our Thank Thank you you, to Sheryl. a you very October. the We good third Be your to look interest results and in of Aspen quarter and appreciate have XXXX well report much. end continuing to towards

Operator

for Thank you participation. call. conference today's your concludes This

now disconnect. may You

Aspen Aerogels (ASPN) 1 Aug 202020 Q2 Earnings call transcript