TULSA, Okla., Nov. 7, 2013 (GLOBE NEWSWIRE) -- 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 |