Gevo Reports Fourth Quarter 2015 Financial Results
Gevo Restarts Production of Isobutanol in
-
- Reports EPS of
($0.44) for the fourth quarter - Ended the fourth quarter with cash and cash equivalents of
$17.0 million - Reports revenue of
$7.3 million for the quarter - Reports non-GAAP cash EBITDA loss* of
$4.2 million for the quarter
Gevo restarted the production of isobutanol at its production facility inLuverne, Minnesota following the completion of capital projects designed to decrease the cost of production for isobutanol by bringing “in-house” parts of the process that have previously been done by third parties.Gevo continues to target isobutanol production levels atLuverne in the range of 750,000 to 1 million gallons in 2016, and a decrease in the variable cost of isobutanol production atLuverne to a range of$3.00-$3.50 /gallon**, enabling isobutanol to be produced at a positive contribution margin, based on an expected average selling price for isobutanol of between$3.50-$4.50 /gallon.- On
March 28, 2016 ,Gevo announced that ASTM International Committee D02 on Petroleum Products,Liquid Fuels , and Lubricants and Subcommittee D02.J on Aviation Fuel passed a concurrent ballot this week approving the revision of ASTM D7566 (Standard Specification for Aviation Turbine Fuel Containing Synthesized Hydrocarbons) to include alcohol to jet synthetic paraffinic kerosene (ATJ-SPK) derived from renewable isobutanol (the “D02.J Ballot”). The D02.J Ballot passed two levels ofASTM technical scrutiny: subcommittee and main committee ballot and is in the final stages of Society Review. TheASTM process is substantially complete as it relates to the approval of the D02.J Ballot. In order to fully complete the process, theASTM still needs to close the Society Review, perform a final ballot tally, and publish the revision of ASTM D7566 (Standard Specification for Aviation Turbine Fuel Containing Synthesized Hydrocarbons) on its website. It is expected that these final actions will be completed by theASTM in early April. Gevo entered into a license agreement and joint development agreement with Porta Hnos. S.A. (Porta) to construct multiple isobutanol plants inArgentina using corn as a feedstock, the first of which is expected to be wholly owned by Porta and is anticipated to begin producing isobutanol in 2017. The first plant is expected to have a production capacity of up to five million gallons of isobutanol per year. Once the plant is operational,Gevo expects to generate revenues from this licensing arrangement, through royalties, sales and marketing fees, and other revenue streams such as yeast sales. The production capacity of any additional plants is still to be determined.
“We are very pleased to have restarted the production of isobutanol at
* - ‘non-GAAP cash EBITDA loss’ is calculated by adding back depreciation and non-cash stock compensation to GAAP Loss From Operations
** - Assumes corn price of
Financial Highlights
Revenues for the fourth quarter of 2015 were
During the fourth quarter of 2015, hydrocarbon revenues were
Cost of goods sold decreased by
Gross loss was
Research and development expense decreased by
Selling, general and administrative expense decreased by
Loss from operations in the fourth quarter of 2015 was
Cash EBITDA loss in the fourth quarter of 2015 was
Interest expense in the fourth quarter of 2015 was
During the three months ended
During the three months ended
One holder exchanged
The net loss for the fourth quarter of 2015 was
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About
Forward-Looking Statements
Certain statements in this press release may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to a variety of matters, including, without limitation, statements related to the ability of
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 depreciation and 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,
Reverse Stock Split
On
Condensed Consolidated Statements of Operations Information
(Unaudited, in thousands, except share and per share amounts)
Three Months Ended | ||||||||||||
Year Ended December 31, | December 31, | |||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||
Revenue and cost of goods sold | ||||||||||||
Ethanol sales and related products, net | $ | 27,125 | $ | 23,549 | $ | 6,521 | $ | 8,830 | ||||
Hydrocarbon revenue | 1,694 | 3,949 | 245 | $ | 523 | |||||||
Grant and other revenue | 1,318 | 768 | 531 | 148 | ||||||||
Total revenues | 30,137 | 28,266 | 7,297 | 9,501 | ||||||||
Cost of goods sold | 38,762 | 35,582 | 9,001 | 10,873 | ||||||||
Gross loss | (8,625 | ) | (7,316 | ) | (1,704 | ) | (1,372 | ) | ||||
Operating expenses | ||||||||||||
Research and development expense | 6,610 | 14,120 | 1,596 | 2,706 | ||||||||
Selling, general and administrative expense | 16,692 | 18,341 | 3,286 | 4,833 | ||||||||
Total operating expenses | 23,302 | 32,461 | 4,882 | 7,539 | ||||||||
Loss from operations | (31,927 | ) | (39,777 | ) | (6,586 | ) | (8,911 | ) | ||||
Other income (expense) | ||||||||||||
Interest expense | (8,243 | ) | (8,255 | ) | (2,057 | ) | (2,028 | ) | ||||
Interest expense - debt issuance costs | - | (3,769 | ) | - | (3 | ) | ||||||
Gain (loss) on extinguishment of debt | 232 | - | (53 | ) | - | |||||||
Gain on extinguishment of warrant liability | 1,775 | - | - | |||||||||
Gain from change in fair value of embedded derivative of the 2022 Notes | - | 3,470 | - | - | ||||||||
Gain (loss) from change in fair value of derivative warrant liability | 577 | 6,530 | 2,938 | (242 | ) | |||||||
Gain from change in fair value of 2017 Notes | 3,895 | 648 | 313 | 104 | ||||||||
Loss on issuance of equity | (2,523 | ) | - | (2,523 | ) | |||||||
Other income | 20 | 8 | 6 | 1 | ||||||||
Total other expense | (4,267 | ) | (1,368 | ) | (1,376 | ) | (2,168 | ) | ||||
Net loss | $ | (36,194 | ) | $ | (41,145 | ) | $ | (7,962 | ) | $ | (11,079 | ) |
Net loss per share - basic and diluted | $ | (2.58 | ) | $ | (7.67 | ) | $ | (0.44 | ) | $ | (1.68 | ) |
Weighted-average number of common shares | ||||||||||||
outstanding - basic and diluted | 14,025,048 | 5,366,162 | 17,954,451 | 6,577,828 | ||||||||
Condensed Consolidated Balance Sheet Information
(Unaudited, in thousands)
December 31, | ||||||
2015 | 2014 | |||||
Assets | ||||||
Current assets: | ||||||
Cash and cash equivalents | $ | 17,031 | $ | 6,359 | ||
Accounts receivable | 1,391 | 2,361 | ||||
Inventories | 3,487 | 4,292 | ||||
Prepaid expenses and other current assets | 731 | 732 | ||||
Total current assets | 22,640 | 13,744 | ||||
Property, plant and equipment, net | 76,777 | 81,240 | ||||
Deposits and other assets | 3,711 | 3,944 | ||||
Total assets | $ | 103,128 | $ | 98,928 | ||
Liabilities | ||||||
Current liabilities: | ||||||
Accounts payable, accrued liabilities and other current liabilities | $ | 7,476 | $ | 8,623 | ||
Derivative warrant liability | 10,493 | 3,114 | ||||
Current portion of secured debt, net | 332 | 288 | ||||
Total current liabilities | 18,301 | 12,025 | ||||
Long-term portion secured debt, net | 153 | 485 | ||||
2017 notes recorded at fair value | 21,565 | 25,460 | ||||
2022 notes, net | 14,636 | 13,679 | ||||
Other long-term liabilities | 147 | 315 | ||||
Total liabilities | 54,802 | 51,964 | ||||
Total stockholders’ equity | 48,326 | 46,964 | ||||
Total liabilities and stockholders' equity | $ | 103,128 | $ | 98,928 | ||
Condensed Consolidated Cash Flow Information
(Unaudited, in thousands)
Three Months Ended | ||||||||||||
Year Ended December 31, | December 31, | |||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||
Operating Activities | ||||||||||||
Net loss | $ | (36,194 | ) | $ | (41,145 | ) | $ | (7,962 | ) | $ | (11,079 | ) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||||||
(Gain) loss from change in fair value of derivative warrant liability | (577 | ) | (6,530 | ) | $ | (2,938 | ) | 242 | ||||
Gain from change in fair value of embedded derivative of the 2022 Notes | - | (3,470 | ) | - | - | |||||||
Gain from change in fair value of 2017 Notes | (3,895 | ) | (648 | ) | (313 | ) | (104 | ) | ||||
Stock-based compensation | 2,647 | 2,860 | 694 | 498 | ||||||||
Depreciation and amortization | 6,573 | 4,880 | 1,676 | 1,666 | ||||||||
Non-cash interest expense | 3,772 | 7,860 | 1,032 | 1,486 | ||||||||
(Gain) loss on extinguishment of debt | (232 | ) | - | 53 | - | |||||||
Gain on extinguishment of warrant liability | (1,775 | ) | - | - | - | |||||||
Loss from change in fair value of derivatives | - | - | - | - | ||||||||
Loss on issuance of equity | 2,523 | - | 2,523 | - | ||||||||
Other non-cash expenses | (7 | ) | 66 | (7 | ) | 66 | ||||||
Changes in operating assets and liabilities: | - | - | ||||||||||
Accounts receivable | 970 | -1003 | (257 | ) | (318 | ) | ||||||
Inventories | 805 | (711 | ) | (784 | ) | (265 | ) | |||||
Prepaid expenses and other current assets | 1 | 431 | (113 | ) | 129 | |||||||
Accounts payable, accrued expenses, and long-term liabilities | (2,771 | ) | (1,580 | ) | (752 | ) | 1,295 | |||||
Net cash used in operating activities | $ | (28,160 | ) | $ | (38,990 | ) | (7,148 | ) | (6,384 | ) | ||
Investing Activities | ||||||||||||
Acquisitions of property, plant and equipment | (1,464 | ) | (4,894 | ) | (1,193 | ) | (341 | ) | ||||
Restricted certificate of deposit | - | (2,611 | ) | - | - | |||||||
Proceeds from sales tax refund for property, plant and equipment | 144 | - | - | - | ||||||||
Net cash used in investing activities | (1,320 | ) | (7,505 | ) | (1,193 | ) | (341 | ) | ||||
Financing Activities | ||||||||||||
Payments on secured debt | (318 | ) | (9,824 | ) | (82 | ) | (104 | ) | ||||
Debt and equity offering costs | (3,519 | ) | (5,873 | ) | (734 | ) | (822 | ) | ||||
Proceeds from issuance of common stock upon exercise of stock options and employee stock purchase plan | 3 | 19 | - | - | ||||||||
Proceeds from issuance of common stock and common stock warrants | 33,820 | 18,000 | 9,970 | - | ||||||||
Proceeds from the exercise of warrants | 10,166 | - | 15 | - | ||||||||
Proceeds from issuance of convertible debt, net | - | 25,907 | - | - | ||||||||
Net cash provided by financing activities | 40,152 | 28,229 | 9,169 | (926 | ) | |||||||
Net increase (decrease) in cash and cash equivalents | 10,672 | (18,266 | ) | 828 | (7,651 | ) | ||||||
Cash and cash equivalents | ||||||||||||
Beginning of period | 6,359 | 24,625 | 16,203 | 14,010 | ||||||||
Ending of period | 17,031 | 6,359 | 17,031 | 6,359 | ||||||||
Non-GAAP Financial Information
(Unaudited, in thousands)
Year Ended | Three Months Ended | |||||||||||
December 31, | December 31, | |||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||
Gevo Development, LLC / Agri-Energy, LLC | ||||||||||||
Loss from operations | $ | (12,204 | ) | $ | (13,210 | ) | $ | (2,636 | ) | $ | (2,310 | ) |
Depreciation and amortization | 5,717 | 3,943 | 1,429 | 1,445 | ||||||||
Non-cash stock-based compensation | 43 | 79 | 14 | 5 | ||||||||
Non-GAAP cash EBITDA loss | $ | (6,444 | ) | $ | (9,188 | ) | $ | (1,193 | ) | $ | (860 | ) |
Gevo, Inc. | ||||||||||||
Loss from operations | $ | (19,723 | ) | $ | (26,567 | ) | $ | (3,950 | ) | $ | (6,601 | ) |
Depreciation and amortization | 856 | 937 | 247 | 221 | ||||||||
Non-cash stock-based compensation | 2,604 | 2,781 | 680 | 493 | ||||||||
Non-GAAP cash EBITDA loss | $ | (16,263 | ) | $ | (22,849 | ) | $ | (3,023 | ) | $ | (5,887 | ) |
Gevo Consolidated | ||||||||||||
Loss from operations | $ | (31,927 | ) | $ | (39,777 | ) | $ | (6,586 | ) | $ | (8,911 | ) |
Depreciation and amortization | 6,573 | 4,880 | 1,676 | 1,666 | ||||||||
Non-cash stock-based compensation | 2,647 | 2,860 | 694 | 498 | ||||||||
Non-GAAP cash EBITDA loss | $ | (22,707 | ) | $ | (32,037 | ) | $ | (4,216 | ) | $ | (6,747 | ) |
Media ContactDavid Rodewald The David James Agency, LLC +1 805-494-9508 gevo@davidjamesagency.com Investor ContactShawn M. Severson The Blueshirt Group +1 415-489-2918 shawn@blueshirtgroup.com