TULSA, Okla., Nov. 8, 2012 (GLOBE NEWSWIRE) -- Syntroleum Corporation (Nasdaq:SYNM) a renewable and synthetic fuels technology company, today announced financial results for the nine months ended September 30, 2012.
Financial Highlights
For the nine months ended September 30, 2012, the Company reported operating income of $10.0 million resulting from total revenues of $16.4 million and operating expenses of $6.4 million. Revenues relate to engineering services provided to Dynamic Fuels and others for process design and research support, and royalties from the Dynamic Fuels commercial production of renewable fuels. The Company also recognized $9.0 million of unearned revenue related to an expired license agreement.
For the nine months ended June 30, 2012, we reported a loss from Dynamic Fuels of $5.7 million. This compares to a loss of $12.3 million for the nine months ended June 30, 2011. During the nine months ended June 30, 2012 the plant produced 26.5 million gallons of renewable fuels compared to production of 14.0 million gallons during the nine months ended June 30, 2011.
We report Dynamic Fuels on a three month lag and the loss reflected in our income statement from Dynamic Fuels represents the loss incurred for the period ending June 30, 2012. Our 10Q filing includes Dynamic Fuels financials for their nine months ended June 30, 2012.
Syntroleum's net loss was $1.0 million or $0.01 per share for the three months ended September 30, 2012 and net income of $4 million or $0.04 per share for the nine months ended September 30, 2012, compared with net losses of $4.6 million or $0.05 per share and $14.0 million or $0.16 per share for the corresponding periods in 2011.
As of September 30, 2012 Syntroleum's available cash position was $17.6 million.
Conference Call
The conference call will be held on Monday November 12, 2012, at 1:00 p.m. Central time (2:00 p.m. Eastern). A webcast of the call will be available via the Internet by accessing www.syntroleum.com. Listeners should allow a few minutes for registration into the web site. To participate in the teleconference, investors should dial 1-877-317-6789 about 10 minutes before the start time and reference the Syntroleum conference call. International callers should dial 1-412-317-6789. A replay of this conference call will be available on the web site under the Syntroleum Investor Relations tab.
For additional information see the Company's Form 10-Q for the nine months ended September 30, 2012, filed with the SEC on Thursday, November 8, 2012. The 10-Q is available through the Investor Relations section of the Company's Web site, www.syntroleum.com.
About Syntroleum
Syntroleum Corporation owns the Syntroleum® Process for Fischer-Tropsch (FT) conversion of synthesis gas derived from biomass, coal, natural gas and other carbon-based feedstocks into liquid hydrocarbons, the Synfining® Process for upgrading FT liquid hydrocarbons into middle distillate products such as synthetic diesel and jet fuels, and the Bio-Synfining® technology for converting animal fat and vegetable oil feedstocks into middle distillate products such as renewable diesel and jet fuel using inedible fats and greases as feedstock. The 50/50 venture – known as Dynamic Fuels – was formed to construct and operate multiple renewable synthetic fuels facilities, with production on the first site beginning in 2010. The Company plans to use its portfolio of technologies to develop and participate in synthetic and renewable fuel projects. For additional information, visit the Company's web site at www.syntroleum.com
The Syntroleum Corporation logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=5984
Forward Looking Statements
This document includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as well as historical facts. These forward‑looking statements may include statements relating to the Company's technologies and use thereof, operational activities of the Company, and technology test results. When used in this document, the words "anticipate," "believe," "estimate," "expect," "intend," "may," "plan," "project," "should" and similar expressions are intended to be among the statements that identify forward‑looking statements. Although we believe that the expectations reflected in these forward‑looking statements are reasonable, these kinds of statements involve risks and uncertainties. Actual results may not be consistent with these forward‑looking statements. Syntroleum undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time. Important factors that could cause actual results to differ from these forward-looking statements include the potential that debt or equity financing for anticipated plants may not be available, the schedule for development, construction and operation of proposed plants may not be met, commercial-scale plants do not achieve the same results as those demonstrated on a laboratory or pilot basis or that such plants experience technological and mechanical problems, the potential that improvements to Syntroleum's various technologies currently under development may not be successful, the impact on plant economics of operating conditions (including commodity prices), construction risks, risks associated with investments and operations in foreign countries, our dependence on strategic relationships with manufacturing and engineering companies, volatility of energy prices, the ability to implement corporate strategies, including the continued availability of adequate working capital, competition, intellectual property risks, our ability to obtain financing and other risks described in the Company's filings with the Securities and Exchange Commission.
® "Syntroleum", "Synfining", and "Bio-Synfining" are registered as trademarks and service marks in the U.S. Patent and Trademark Office.
| SYNTROLEUM CORPORATION AND SUBSIDIARIES | ||
| CONSOLIDATED BALANCE SHEETS | ||
| (in thousands, except share and per share) | ||
|
September 30, 2012 |
December 31, 2011 |
|
| ASSETS | (Unaudited) | |
| CURRENT ASSETS: | ||
| Cash and cash equivalents | $ 17,579 | $ 22,601 |
| Restricted cash | 1,054 | 1,189 |
| Accounts receivable | 211 | 125 |
| Accounts receivable from Dynamic Fuels, LLC | 237 | -- |
| Other current assets | 39 | 277 |
| Total current assets | 19,120 | 24,192 |
| ACCOUNTS RECEIVABLE FROM DYNAMIC FUELS, LLC | -- | 2,624 |
| PROPERTY AND EQUIPMENT – at cost, net | 60 | 86 |
| INVESTMENT IN AND LOANS TO DYNAMIC FUELS, LLC | 42,682 | 38,643 |
| OTHER ASSETS, net | 1,031 | 1,106 |
| $ 62,893 | $ 66,651 | |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||
| CURRENT LIABILITIES: | ||
| Accounts payable | $ 361 | $ 220 |
| Accrued employee costs | 744 | 288 |
| Deposits | 1,054 | 1,189 |
| Total current liabilities | 2,159 | 1,697 |
| NONCURRENT LIABILITIES OF DISCONTINUED OPERATIONS | 603 | 603 |
| DEFERRED REVENUE | 15,671 | 24,366 |
| COMMITMENTS AND CONTINGENCIES | -- | -- |
| STOCKHOLDERS' EQUITY: | ||
| Preferred stock, $0.01 par value, 5,000 shares authorized, no shares issued | -- | -- |
| Common stock, $0.01 par value, 150,000 shares authorized, 98,243 and 97,948 shares issued and outstanding at September 30, 2012 and December 31, 2011, respectively | 982 | 979 |
| Additional paid-in capital | 398,873 | 398,369 |
| Accumulated deficit | (355,395) | (359,363) |
| Total stockholders' equity | 44,460 | 39,985 |
| $ 62,893 | $ 66,651 | |
| SYNTROLEUM CORPORATION AND SUBSIDIARIES | ||||
| UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||
| (in thousands, except per share data) | ||||
| For the Three months Ended September 30, | For the Nine Months Ended September 30, | |||
| 2012 | 2011 | 2012 | 2011 | |
| REVENUES: | ||||
| Technology | $ 3,150 | $ 150 | $ 9,450 | $ 450 |
| Technical services | 516 | 430 | 1,470 | 1,314 |
| Technical services from Dynamic Fuels, LLC | 372 | 286 | 4,803 | 800 |
| Royalties from Dynamic Fuels, LLC plant production | 304 | 310 | 679 | 649 |
| Total revenues | 4,342 | 1,176 | 16,402 | 3,213 |
| COSTS AND EXPENSES: | ||||
| Engineering | 710 | 562 | 1,900 | 1,706 |
| Depreciation and amortization | 42 | 49 | 143 | 148 |
| General, administrative and other (including non-cash equity compensation of $61 and $69 for the three months ended September 30, 2012 and 2011, respectively, and $476 and $528 for the nine months ended September 30, 2012 and 2011, respectively.) | 1,553 | 1,017 | 4,345 | 3,612 |
| OPERATING INCOME (LOSS) | 2,037 | (452) | 10,014 | (2,253) |
| INTEREST INCOME | 4 | 4 | 18 | 10 |
| EQUITY IN LOSS OF DYNAMIC FUELS, LLC | (2,752) | (5,348) | (5,737) | (12,286) |
| OTHER INCOME | 1 | 2 | 5 | 6 |
| FOREIGN CURRENCY EXCHANGE | (327) | 1,206 | (304) | 558 |
| INCOME (LOSS) FROM CONTINUING OPERATIONS | (1,037) | (4,588) | 3,996 | (13,965) |
| LOSS FROM DISCONTINUED OPERATIONS | (9) | (9) | (28) | (17) |
| NET INCOME (LOSS) | $ (1,046) | $ (4,597) | $ 3,968 | $ (13,982) |
| BASIC AND DILUTED NET INCOME (LOSS) PER SHARE: | ||||
| Income (loss) from continuing operations | $ (0.01) | $ (0.05) | $ 0.04 | $ (0.16) |
| Income (loss) from discontinued operations | 0.00 | 0.00 | 0.00 | 0.00 |
| Net income (loss) | $ (0.01) | $ (0.05) | $ 0.04 | $ (0.16) |
| WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: | ||||
| Basic | 98,254 | 91,843 | 98,377 | 87,020 |
| Diluted | 98,676 | 91,843 | 99,489 | 87,020 |
| SYNTROLEUM CORPORATION AND SUBSIDIARIES | ||||
| UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||
| (in thousands) | ||||
| For the Nine Months Ended September 30, | ||||
| 2012 | 2011 | |||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||
| Net income (loss) | $ 3,968 | $ (13,982) | ||
| Loss from discontinued operations | (28) | (17) | ||
| Net income (loss) from continuing operations | 3,996 | (13,965) | ||
| Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||||
| Depreciation and amortization | 143 | 148 | ||
| Foreign currency exchange | 304 | (558) | ||
| Non-cash compensation expense | 476 | 528 | ||
| Non-cash loss in equity method investee | 5,737 | 12,286 | ||
| Non-cash technical services revenue from Dynamic Fuels, LLC | (3,714) | -- | ||
| Changes in assets and liabilities: | ||||
| Accounts receivable | (86) | 451 | ||
| Accounts receivable from Dynamic Fuels, LLC | (509) | (1,449) | ||
| Other assets | 208 | (30) | ||
| Accounts payable | 141 | (979) | ||
| Accrued liabilities and other | 457 | 467 | ||
| Deferred revenue | (9,000) | -- | ||
| Net cash used in continuing operations | (1,847) | (3,101) | ||
| Net cash used in discontinued operations | (28) | (18) | ||
| Net cash used in operating activities | (1,875) | (3,119) | ||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||
| Purchase of property and equipment | (11) | (37) | ||
| Investment in and loans to Dynamic Fuels, LLC | (3,000) | (4,500) | ||
| Net cash used in investing activities | (3,011) | (4,537) | ||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||
| Proceeds from sale of common stock, warrants and option exercises | 63 | 35 | ||
| Purchase and retirement of restricted stock | (199) | -- | ||
| Proceeds from sales of common stock | -- | 23,538 | ||
| Net cash provided by (used in) financing activities | (136) | 23,573 | ||
| NET CHANGE IN CASH AND CASH EQUIVALENTS | (5,022) | 15,917 | ||
| CASH AND CASH EQUIVALENTS, beginning of period | 22,601 | 12,513 | ||
| CASH AND CASH EQUIVALENTS, end of period | $ 17,579 | $ 28,430 | ||
| Supplemental disclosure of cash flow information | ||||
| NON-CASH INVESTING AND FINANCING ACTIVITIES: | ||||
| Common stock warrants | $ 166 | $ -- | ||
| AR contributed as Investment in Dynamic Fuels, LLC | $ 2,896 | $ -- | ||