Gevo, Inc. (NASDAQ: GEVO), a renewable chemicals and advanced
biofuels company, today announced its financial results for the
third quarter ended September 30, 2011 and updated its expectations
about isobutanol commercialization progress.
“Gevo continues to move toward full scale commercialization of
renewable isobutanol. The retrofit of our facility in Luverne,
Minnesota is underway and we remain on schedule to start production
in the first half of 2012,” said Dr. Patrick Gruber, Chief
Executive Officer. “Isobutanol is a platform molecule with a wide
variety of applications. The specialty applications of isobutanol
in chemicals and fuels are well underway, with off-take agreements
in place with Sasol and Mansfield. We are focusing more attention
on larger addressable markets. We recently signed an agreement with
the U.S. Air Force to supply ‘alcohol-to-jet’ based jet fuel. This
jet fuel will be produced at our hydrocarbon demonstration plant
located at South Hampton Resources’ site near Houston, Texas. This
plant, which is nearing completion, will facilitate the development
of a variety of hydrocarbon products produced from our isobutanol,
including bio-jet, bio-gasoline, alkylates, bio-based diesel,
para-xylene, and lubricants. We are also working with the Northwest
Advanced Renewables Alliance and USDA to develop bio-jet derived
from isobutanol using a cellulosic feedstock.”
Recent Corporate Highlights
- Gevo announced that in side-by-side
performance, durability and emission testing of small engines
conducted by the Outdoor Power Equipment Institute and Briggs &
Stratton, gasoline blended with isobutanol performed better than
blends using ethanol. These third-party results support isobutanol
as a biofuel blend stock that can be used effectively in small
engines.
- Gevo amended its loan agreement with
TriplePoint Capital LLC (TriplePoint) to secure retrofit debt
capital for its Agri-Energy facility. Under the agreement, Gevo may
initially borrow up to $15 million. Upon request from Gevo and
approval from TriplePoint, the amount borrowed may be increased to
$20 million.
Additional Third Quarter Highlights
- Gevo was awarded two patents from the
United States Patent and Trademark Office (USPTO) on technologies
designed to enable the low-cost, high-yield production of bio-based
isobutanol. These patents are further evidence of Gevo’s unique
pathways to produce isobutanol.
- Gevo entered into a five-year off-take
agreement with Mansfield Oil Company (Mansfield) permitting
Mansfield to blend Gevo’s isobutanol for its own use and to be a
distributer of Gevo’s isobutanol into the petroleum market. In
combination with its previously announced off-take agreement with
Sasol Chemicals Industries Limited, Gevo has in place off-take
agreements that substantially account for projected production for
the initial two years of commercial isobutanol operations. In
addition to the off-take agreement, a Mansfield subsidiary will
provide supply chain services that include logistics management,
customer service support, invoicing and billing services.
- Gevo was awarded a contract by the
Defense Logistics Agency (DLA) to supply up to 11,000 gallons of
‘alcohol-to-jet’ (ATJ) based jet fuel to the U.S. Air Force. The
U.S. Air Force will then fully fund and conduct engine testing and
complete a feasibility flight demonstration using Gevo’s fuel and
has agreed to purchase more upon successful completion of the
testing.
- Gevo received a USDA grant as part of
the Northwest Advanced Renewables Alliance (NARA) for the
development of bio-jet fuel from woody biomass and forest product
residues, to be produced using Gevo’s isobutanol. The alliance
members include: Washington State University, Gevo, Weyerhaeuser,
Catchlight Energy (a joint venture between Chevron &
Weyerhaeuser), Oregon State University, Pennsylvania State
University and the University of Minnesota.
- Gevo appointed Gary W. Mize, partner
and owner at MR & Associates, as a director. Mr. Mize has over
35 years of experience in agribusiness and adds critical expertise
in commodities and trading to Gevo’s Board of Directors.
Financial Highlights
Revenues for the third quarter of 2011 were $17.5 million
compared to $1.5 million in the same period in 2010 as a result of
revenues from ethanol sales from its Luverne facility, which the
Company acquired in September 2010. During the ongoing isobutanol
retrofit, the Luverne facility will continue to generate revenue
from the production and sale of ethanol and related products.
Research and development expense increased to $5.2 million in the
third quarter of 2011, from $3.6 million for the same period in
2010. Selling, general and administrative expense for the third
quarter of 2011 decreased to $7.6 million from $11.6 million for
the same period in 2010. During the third quarter of 2010, the
Company incurred $7.8 million related to the purchase of a minority
interest in Gevo Development, LLC, a subsidiary of Gevo, Inc. Other
selling, general and administrative expense related to personnel
costs, including non-cash compensation, to support
commercialization objectives and compliance activities as a public
company, as well as legal, accounting and other outside services
costs increased in the third quarter of 2011 compared to the 2010
quarter. The net loss for the third quarter of 2011 was $12.3
million compared to $17.3 million for the third quarter of
2010.
Gevo reported cash and cash equivalents on hand of $97.6 million
as of September 30, 2011.
Webcast and Conference Call Information
Patrick R. Gruber, Ph.D., Chief Executive Officer, and Mark
Smith, Chief Financial Officer, will host a conference call today
at 4:30 p.m. EDT (2:30 p.m. MDT) to review the Company’s third
quarter 2011 results, and to update expectations about its
isobutanol commercialization progress.
To participate in the conference call, please dial
1-866-770-7051 (inside the US) or 1-617-213-8064 (outside the US)
and reference the access code 28821617. The presentation will be
available via a live webcast at:
http://phx.corporate-ir.net/phoenix.zhtml?p=irol-eventDetails&c=238618&eventID=4215002.
A replay of the call will be available two hours after the
conference call ends on November 1, 2011 until Midnight EDT on
December 1, 2011. To access the replay, please dial 1-888-286-8010
(inside the US) or 1-617-801-6888 (outside the US) and reference
the access code 31592527. The archived webcast will be available
for 30 days in the Investor Relations section of Gevo’s website at
www.gevo.com.
About Gevo
Gevo is converting existing ethanol plants into biorefineries to
make renewable building block products for the chemical and fuel
industries. The company plans to convert renewable raw materials
into isobutanol and renewable hydrocarbons that can be directly
integrated on a “drop in” basis into existing chemical and fuel
products to deliver environmental and economic benefits. Gevo is
committed to a sustainable biobased economy that meets society’s
needs for plentiful food and clean air and water. For more
information, please visit www.gevo.com.
Forward-Looking Statements
Certain statements within this press release may constitute
“forward-looking statements” within the meaning of the Private
Securities Litigation Reform Act of 1995. Such statements relate to
a variety of matters, including but not limited to: the timing and
costs associated with and the availability of capital for the
Company’s scheduled retrofits of existing ethanol production
facilities, its future isobutanol production capacity, the timing
associated with bringing such capacity online, the expected
applications of isobutanol, addressable markets, and market demand,
Gevo’s ability to produce commercial quantities of isobutanol from
cellulosic feedstocks, the expected cost-competitiveness and
relative performance attributes of isobutanol and the products
derived from it, the strength of the Company’s intellectual
property position and other statements that are not purely
statements of historical fact. These forward-looking statements are
made on the basis of the current beliefs, expectations and
assumptions of our management and are subject to significant risks
and uncertainty. All such forward-looking statements speak only as
of the date they are made, and the Company assumes no obligation to
update or revise these statements, whether as a result of new
information, future events or otherwise. Although the Company
believes that the expectations reflected in these forward-looking
statements are reasonable, these statements involve many risks and
uncertainties that may cause actual results to differ materially
from what may be expressed or implied in these forward-looking
statements. For a discussion of the risks and uncertainties that
could cause actual results to differ from those expressed in these
forward-looking statements, as well as risks relating to the
business of the Company in general, see the risk disclosures in
Gevo’s Annual Report on Form 10-K for the year ended December 31,
2010, and in subsequent reports on Forms 10-Q and 8-K and other
filings made with the Securities and Exchange Commission by the
Company.
Non-GAAP Financial Information
Consolidated financial information has been presented in
accordance with GAAP as well as on a non-GAAP basis. On a non-GAAP
basis, financial measures exclude non-cash items such as
stock-based compensation. Management believes that it is useful to
supplement its GAAP financial statements with this non-GAAP
information because management uses such information internally for
its operating, budgeting and financial planning purposes. These
non-GAAP financial measures also facilitate management's internal
comparisons to Gevo’s historical performance as well as comparisons
to the operating results of other companies. In addition, Gevo
believes these non-GAAP financial measures are useful to investors
because they allow for greater transparency into the indicators
used by management as a basis for its financial and operational
decision making. Non-GAAP information is not prepared under a
comprehensive set of accounting rules and therefore, should only be
read in conjunction with financial information reported under U.S.
GAAP when understanding Gevo’s operating performance. A
reconciliation between GAAP and non-GAAP financial information is
provided in the financial statement tables below.
Gevo, Inc. Consolidated
Statements of Operations Information (Unaudited)
Three Months Ended Three Months Ended September
30, 2011 September 30, 2010 Total revenues $ 17,506,000
$ 1,496,000 Cost of Goods Sold (16,232,000 ) (856,000
) Gross Margin 1,274,000 640,000
Operating Expenses: Research and development (5,211,000 )
(3,554,000 ) Selling, general and administrative (7,587,000
) (11,601,000 ) Total operating expenses (12,798,000
) (15,155,000 ) Loss from operations (11,524,000 )
(14,515,000 ) Other (Expense) Income: Interest
expense (798,000 ) (779,000 ) Interest and other income 17,000
38,000 Loss from change in fair value of warrant liabilities
— (2,052,000 ) Other expense—net (781,000 )
(2,793,000 ) Net Loss (12,305,000 )
(17,308,000 ) Deemed dividend—amortization of beneficial conversion
feature — (989,000 ) Net loss attributable to
Gevo, Inc. common stockholders $ (12,305,000 ) $ (18,297,000 )
Net loss per share attributable to Gevo, Inc. common
stockholders—basic and diluted $ (0.48 ) $ (15.87 )
Weighted-average number of common shares outstanding—basic and
diluted 25,870,060 1,152,839
Non-GAAP Financial Information
Three Months Three Months Ended
Ended September 30, 2011 September 30, 2010
Gevo Development / Agri-Energy Gain (Loss) from operations $
882,000 $ (1,139,000 ) Depreciation and amortization 517,000 38,000
Non-cash stock-based compensation 40,000 —
Non-GAAP income (loss) from operations $ 1,439,000 $
(1,101,000 ) Gevo, Inc. Loss from operations $ (12,406,000 )
$ (13,376,000 ) Depreciation and amortization 679,000 596,000
Non-cash stock-based compensation 1,775,000
7,359,000 Non-GAAP loss from operations $ (9,952,000 ) $
(5,421,000 ) Gevo Consolidated Loss from operations $
(11,524,000 ) $ (14,515,000 ) Depreciation and amortization
1,196,000 634,000 Non-cash stock-based compensation
1,815,000 7,359,000 Non-GAAP loss from
operations $ (8,513,000 ) $ (6,522,000 )
Gevo, Inc. Condensed Consolidated Balance Sheet
Information (Unaudited) September 30, 2011
December 31, 2010 Assets Current assets: Cash and
cash equivalents $ 97,605,000 $ 15,274,000 Accounts receivable
2,749,000 2,830,000 Inventories 4,974,000 3,765,000 Prepaid
expenses, derivative asset, margin deposit and other current assets
2,657,000 2,025,000 Total current
assets 107,985,000 23,894,000 Property, plant and
equipment—net 24,372,000 23,465,000 Deferred offering costs -
3,152,000 Debt issue costs 692,000 929,000 Deposits and other
assets 130,000 169,000 Total assets $
133,179,000 $ 51,609,000
Liabilities and
Stockholders’ Equity Current liabilities: Accounts payable and
accrued expenses $ 10,219,000 $ 7,903,000 Current portion of
secured long-term debt 1,747,000 1,785,000 Derivative liability -
405,000 Fair value of warrant liabilities -
2,034,000 Total current liabilities 11,966,000 12,127,000
Secured long-term debt, less current portion 17,671,000
18,647,000 Other liabilities 247,000 876,000
Total liabilities 29,884,000 31,650,000
Stockholders’ equity Convertible preferred stock -
146,000 Common stock 260,000 12,000 Additional paid-in capital
223,510,000 105,128,000 Deficit accumulated during development
stage (120,475,000 ) (85,327,000 ) Total
stockholders’ equity 103,295,000 19,959,000
Total liabilities and stockholders’ equity $ 133,179,000
$ 51,609,000
Gevo (NASDAQ:GEVO)
Historical Stock Chart
From Jun 2024 to Jul 2024
Gevo (NASDAQ:GEVO)
Historical Stock Chart
From Jul 2023 to Jul 2024