Syntroleum Announces Third Quarter 2013 Results
November 07 2013 - 5:13PM
Syntroleum Corporation (Nasdaq:SYNM) a renewable and synthetic
fuels technology company, today announced financial results for the
nine months ended September 30, 2013.
Financial Highlights
For the nine months ended September 30, 2013, the Company
reported operating losses of $6.2 million resulting from total
revenues of $1.7 million and operating expenses of $7.9 million.
Revenues relate to engineering services provided to Dynamic Fuels
and others for process design and research support.
For the nine months ended September 30, 2013, we reported
earnings from Dynamic Fuels of $2.0 million. This compares to a
loss of $5.7 million for the nine months ended September 30,
2012.
We report Dynamic Fuels on a three month lag and the income
reflected in our income statement from Dynamic Fuels represents the
income incurred for the period ending June 30,
2013. During the nine months ended June 30, 2013,
Dynamic Fuels recognized revenue of $26.8 million from the
re-instatement of the tax credits for the production of renewable
diesel and qualified alternative fuels. Our 10Q filing
includes Dynamic Fuels financials for their nine months ended June
30, 2013.
For the nine months ended September 30, 2013, we reported income
from discontinued operations of $6.4 million related to the sale of
our two b/d pilot plant.
Syntroleum's net loss was $6.0 million or $0.60 per share for
the three months ended September 30, 2013 and net income was $3.7
million or $0.38 per share, for the nine months ended September 30,
2013. This compares to a net loss of $1.0 million or $0.11 per
share and net income of $4.0 million or $0.41 per share for the
respective corresponding periods in 2012.
As of September 30, 2013, Syntroleum's available cash position
was $16.5 million.
Conference Call
The conference call will be held on Friday, November 8, 2013, at
2:00 p.m. Central time (3:00 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 1-877-300-8521 about 10
minutes before the start time and reference the Syntroleum
conference call. International callers should dial
1-412-317-6026. 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, 2013, filed with the SEC on
Thursday, November 7, 2013. The 10-Q is available through the
Investor Relations section of the Company's Web site,
www.syntroleum.com.
About Syntroleum (Nasdaq / SYNM)
Syntroleum Corporation owns the Syntroleum® Process for
Fischer-Tropsch (FT) conversion of synthesis gas into liquid
hydrocarbons, the Synfining® Process for upgrading FT liquid
hydrocarbons into refined petroleum products, and the
Bio-Synfining® technology for converting renewable feedstocks into
drop-in fuels. For additional information, visit the
Company's web site at www.syntroleum.com.
This document may contain forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995, as
well as historical facts. These forward-looking statements include
statements relating to the Fischer-Tropsch ("FT") process,
Syntroleum ® Process, Synfining ® Process, and related technologies
including, gas-to-liquids ("GTL"), coal-to-liquids ("CTL") and
biomass-to-liquids ("BTL"), our renewable fuels Bio-Synfining ®
Technology (hereinafter "Technologies"), plants based on these
Technologies, anticipated cost and schedule to design, construct
and operate plants, expected production of fuel, obtaining required
financing for these plants and other activities, the value and
markets for products, testing, certification, characteristics and
use of plant products, the continued development of our
Technologies, use of proceeds from our equity offerings,
anticipated revenues, availability of catalyst, our support of and
relationship with our licensees, and any other forward-looking
statements including future growth, cash needs, capital
availability, operations, business plans and financial 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 are described under "Item 1A. Risk Factors" and
elsewhere in our 2012 Annual Report on Form 10K.
® "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 per share
data) |
|
|
|
|
September 30, |
December 31, |
|
2013 |
2012 |
ASSETS |
(Unaudited) |
|
CURRENT ASSETS: |
|
|
Cash and cash equivalents |
$ 16,544 |
$ 15,909 |
Restricted cash |
-- |
725 |
Accounts receivable |
88 |
134 |
Taxes receivable |
697 |
-- |
Accounts receivable from Dynamic Fuels,
LLC |
6 |
252 |
Other current assets |
71 |
237 |
Total current assets |
17,406 |
17,257 |
|
|
|
|
|
|
PROPERTY AND EQUIPMENT – at cost, net |
84 |
58 |
INVESTMENT IN AND LOANS TO DYNAMIC FUELS,
LLC |
40,365 |
38,407 |
OTHER ASSETS, net |
1,069 |
1,023 |
|
$58,924 |
$56,745 |
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY |
|
|
CURRENT LIABILITIES: |
|
|
Accounts payable |
$703 |
$312 |
Accrued employee costs |
593 |
71 |
Deposits |
-- |
725 |
Total current liabilities |
1,296 |
1,108 |
|
|
|
NONCURRENT LIABILITIES OF DISCONTINUED
OPERATIONS |
-- |
603 |
DEFERRED REVENUE |
14,023 |
15,612 |
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, 9,936 and 9,829 shares issued and outstanding at
September 30, 2013 and December 31, 2012, respectively |
99 |
98 |
Additional paid-in capital |
400,230 |
399,788 |
Accumulated deficit |
(356,724) |
(360,464) |
Total stockholders' equity |
43,605 |
39,422 |
|
$58,924 |
$56,745 |
|
|
|
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, |
|
2013 |
2012 |
2013 |
2012 |
REVENUES: |
|
|
|
|
Technology |
$ -- |
$ 3,150 |
$ 100 |
$ 9,450 |
Technical services |
349 |
516 |
1,111 |
1,470 |
Technical services from Dynamic Fuels,
LLC |
24 |
372 |
469 |
4,803 |
Royalties from Dynamic Fuels, LLC plant
production |
-- |
304 |
-- |
679 |
Total revenues |
373 |
4,342 |
1,680 |
16,402 |
|
|
|
|
|
COSTS AND EXPENSES: |
|
|
|
|
Engineering |
601 |
710 |
1,720 |
1,900 |
Depreciation and amortization |
44 |
42 |
131 |
143 |
General, administrative and other
(including non-cash equity compensation of $30 and $61 for the
three months ended September 30, 2013 and 2012, respectively, and
$443 and $476 for the nine months ended September 30, 2013 and
2012, respectively.) |
2,211 |
1,553 |
6,040 |
4,345 |
|
|
|
|
|
OPERATING INCOME (LOSS) |
(2,483) |
2,037 |
(6,211) |
10,014 |
|
|
|
|
|
INTEREST INCOME |
2 |
4 |
7 |
18 |
EQUITY IN EARNINGS (LOSS) OF DYNAMIC FUELS,
LLC |
(3,252) |
(2,752) |
1,957 |
(5,737) |
OTHER INCOME |
1 |
1 |
7 |
5 |
FOREIGN CURRENCY EXCHANGE |
(267) |
(327) |
1,589 |
(304) |
|
|
|
|
|
INCOME (LOSS) FROM CONTINUING
OPERATIONS |
(5,999) |
(1,037) |
(2,651) |
3,996 |
|
|
|
|
|
INCOME (LOSS) FROM DISCONTINUED
OPERATIONS |
-- |
(9) |
6,391 |
(28) |
|
|
|
|
|
NET INCOME (LOSS) |
$ (5,999) |
$ (1,046) |
$ 3,740 |
$ 3,968 |
|
|
|
|
|
BASIC NET INCOME (LOSS) PER SHARE: |
|
|
|
|
Income (loss) from continuing
operations |
$ (0.60) |
$ (0.11) |
$ (0.26) |
$ 0.41 |
Income from discontinued
operations |
-- |
-- |
0.64 |
-- |
Net income (loss) |
$ (0.60) |
$ (0.11) |
$ 0.38 |
$ 0.41 |
|
|
|
|
|
DILUTED NET INCOME (LOSS) PER SHARE: |
|
|
|
|
Income (loss) from continuing
operations |
$ (0.60) |
$ (0.11) |
$ (0.26) |
$ 0.40 |
Income from discontinued
operations |
-- |
-- |
0.64 |
-- |
Net income (loss) |
$ (0.60) |
$ (0.11) |
$ 0.38 |
$ 0.40 |
|
|
|
|
|
WEIGHTED AVERAGE COMMON SHARES
OUTSTANDING: |
|
|
|
|
Basic |
9,936 |
9,825 |
9,928 |
9,838 |
Diluted |
9,936 |
9,825 |
9,928 |
9,949 |
SYNTROLEUM CORPORATION
AND SUBSIDIARIES |
UNAUDITED CONSOLIDATED
STATEMENTS OF CASH FLOWS |
(in thousands) |
|
|
For the Nine
Months Ended September 30, |
|
2013 |
2012 |
CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
Net income |
$ 3,740 |
$ 3,968 |
Income (loss) from discontinued
operations |
6,391 |
(28) |
Net income (loss) from continuing
operations |
(2,651) |
3,996 |
Adjustments to reconcile net loss to net cash
provided by (used in) operating activities: |
|
|
Depreciation and amortization |
131 |
143 |
Foreign currency exchange |
(1,589) |
304 |
Non-cash compensation expense |
443 |
476 |
Non-cash (income) loss in equity method
investee |
(1,957) |
5,737 |
Non-cash technical services revenue from
Dynamic Fuels, LLC |
-- |
(3,714) |
Changes in assets and liabilities: |
|
|
Accounts receivable |
46 |
(86) |
Accounts receivable from Dynamic Fuels,
LLC |
246 |
(509) |
Other assets |
13 |
208 |
Accounts payable |
391 |
141 |
Accrued employee costs |
522 |
457 |
Deferred revenue |
-- |
(9,000) |
Net cash used in continuing
operations |
(4,405) |
(1,847) |
Net cash used in discontinued
operations |
(10) |
(28) |
Net cash used in operating
activities |
(4,415) |
(1,875) |
|
|
|
CASH FLOWS FROM INVESTING ACTIVITIES: |
|
|
Purchase of property and equipment |
(50) |
(11) |
Investment in and loans to Dynamic Fuels,
LLC, net |
(698) |
(3,000) |
Net cash used in continuing
operations |
(748) |
(3,011) |
Net cash provided by discontinued
operations |
5,798 |
-- |
Net cash provided by (used in) investing
activities |
5,050 |
(3,011) |
|
|
|
CASH FLOWS FROM FINANCING ACTIVITIES: |
|
|
Proceeds from sale of common stock,
warrants and option exercises |
-- |
63 |
Purchase and retirement of restricted
stock |
-- |
(199) |
Net cash provided by financing
activities |
-- |
(136) |
|
|
|
NET CHANGE IN CASH AND CASH EQUIVALENTS |
635 |
(5,022) |
CASH AND CASH EQUIVALENTS, beginning of
period |
15,909 |
22,601 |
CASH AND CASH EQUIVALENTS, end of period |
$ 16,544 |
$ 17,579 |
|
|
|
NON-CASH INVESTING ACTIVITIES: |
|
|
Common stock warrants |
$ -- |
$ 166 |
Accounts receivable reduction in Dynamic
Fuels, LLC working capital loan |
$ 697 |
$ -- |
Investment in and Loans to Dynamic Fuels,
LLC |
$ -- |
$
2,896 |
CONTACT: Ron Stinebaugh
Syntroleum Corporation
(281) 224-9862
www.syntroleum.com
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