TULSA, Okla., Aug. 7, 2009 (GLOBE NEWSWIRE) -- Syntroleum Corporation (Nasdaq:SYNM) today announced financial results for the quarter ended June 30, 2009.
* Cash position of $16.0 million compared to a cash position of $10.1 million at December 31, 2008. * Net cash provided by operating activities was $12.6 million for the first six months of 2009 compared to net cash provided by operating activities of $1.0 million for the same period last year. * Total revenue of $21.9 million for the first half of 2009 compared to $2.5 million for the same period last year. * Total net income of $7.4 million for the first half of 2009 compared to a loss of $4.1 million. * Net income per share of $ 0.11 versus a loss of $0.07 for the six months ended June 30, 2009 and 2008, respectively. * Dynamic Fuels LLC (50/50 venture with Tyson Foods) plant, which is under construction in Geismar, Louisiana, is 54% complete and we expect to complete construction in December of 2009. The plant remains on budget.
We generated $12.6 million in cash flow from our operating activities for the six months ended June 30, 2009 compared to $1.0 million in cash flow from operations for the same period last year. Our operating activities have generated cash flows from the execution of key business transactions. Our current receivable balance is $6.5 million from current executed contracts and delivery of technology. We made a $6.0 million investment in Dynamic Fuels on April 1, 2009. Should Dynamic Fuels need the last $5 million budgeted for the project during the fourth quarter of 2009, it will be funded out of cash flow.
For additional information, see the Company's Form 10-Q for the June 30, 2009 period, which will be filed with the SEC on Monday, August 10, 2009. The 10-K is available through the Investor Relations section of the Company's Web site, www.syntroleum.com.
Conference Call
Syntroleum management plans to hold a conference call with the investment community on Monday, August 10, 2009, at 10:00 a.m. Central time (11:00 a.m. Eastern). To participate in the teleconference, investors should dial 877-261-8990 about 10 minutes before the start time and reference the Syntroleum conference call. International callers should dial 847-619-6441.
About Syntroleum
Syntroleum Corporation owns the Syntroleum(r) 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(r) Process for upgrading FT liquid hydrocarbons into middle distillate products such as synthetic diesel and jet fuels, and the Bio-Synfining(tm) 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
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 Syntroleum(r) Process, the Synfining(r) Process, our renewable fuels Bio-Synfining(tm)technology, plans to use the Company's various technologies, operational activities of the Company, commercialization of the Company's technologies, certification of Fischer-Tropsch and renewable fuels, performance and use of Syntroleum's cobalt catalyst, and performance and use of fuels derived from the Syntroleum(r) Process 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, anticipated appropriation and expenditure of federal monies does not occur, 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 energy 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.
(r) "Syntroleum" is registered as a trademark and service mark in the U.S. Patent and Trademark Office.
SYNTROLEUM CORPORATION AND SUBSIDIARIES
UNAUDITED CONSOLIDATED BALANCE SHEETS
(in thousands)
June 30, Dec. 31,
2009 2008
-------- --------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 16,035 $ 10,101
Restricted cash 1,875 --
Accounts receivable 6,474 517
Other current assets 100 272
-------- --------
Total current assets 24,484 10,890
PROPERTY AND EQUIPMENT - at cost, net 189 187
INVESTMENT IN DYNAMIC FUELS, LLC 20,317 17,486
OTHER ASSETS, net 10,258 10,275
-------- --------
$ 55,248 $ 38,838
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LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 379 $ 662
Accrued liabilities 1,555 858
Current deposits 1,875 --
Current liabilities of discontinued operations 846 1,661
-------- --------
Total current liabilities 4,655 3,181
NONCURRENT LIABILITIES OF DISCONTINUED OPERATIONS 603 --
DEFERRED REVENUE 27,127 22,613
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, 72,481 and 63,529 shares issued and
outstanding at June 30, 2009 and
December 31, 2008, respectively 725 635
Additional paid-in capital 352,681 350,325
Accumulated deficit (330,543) (337,916)
-------- --------
Total stockholders' equity 22,863 13,044
-------- --------
$ 55,248 $ 38,838
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SYNTROLEUM CORPORATION AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
For the For the
Three months Ended Six Months Ended
June 30, June 30,
------------------ ------------------
2009 2008 2009 2008
-------- -------- -------- --------
REVENUES:
Technology revenue $ 150 $ -- $ 19,203 $ --
Technical services revenue 1,447 752 2,459 1,659
Other revenues 97 135 222 790
-------- -------- -------- --------
Total revenues 1,694 887 21,884 2,449
-------- -------- -------- --------
COSTS AND EXPENSES:
Engineering 676 1,353 2,206 2,328
Depreciation, depletion and
amortization 94 139 188 303
General, administrative and
other (including non-cash
equity compensation of $615
and $341 for the three months
ended June 30, 2009 and 2008,
respectively, and $3,011 and
$734 for the six months ended
June 30, 2009 and 2008,
respectively.) 2,017 2,076 7,237 4,081
-------- -------- -------- --------
OPERATING INCOME (LOSS) (1,093) (2,681) 12,253 (4,263)
INVESTMENT AND INTEREST INCOME 29 202 63 389
LOSS FROM DYNAMIC INVESTMENT (898) (297) (3,169) (457)
OTHER EXPENSE, net 3 7 8 14
FOREIGN CURRENCY EXCHANGE (1,820) (656) (1,712) (1,273)
-------- -------- -------- --------
INCOME (LOSS) FROM CONTINUING
OPERATIONS BEFORE INCOME TAXES (3,779) (3,425) 7,443 (5,590)
INCOME TAXES -- -- -- --
-------- -------- -------- --------
INCOME (LOSS) FROM CONTINUING
OPERATIONS (3,779) (3,425) 7,443 (5,590)
-------- -------- -------- --------
INCOME (LOSS) FROM
DISCONTINUED OPERATIONS (31) 1,533 (70) 1,467
-------- -------- -------- --------
NET INCOME (LOSS) $ (3,810) $ (1,892) $ 7,373 $ (4,123)
======== ======== ======== ========
BASIC NET INCOME (LOSS)
PER SHARE:
Income (loss) from continuing
operations $ (0.05) $ (0.05) $ 0.11 $ (0.09)
Income (loss) from
discontinued operations $ 0.00 $ 0.02 $ 0.00 $ 0.02
-------- -------- -------- --------
Net income (loss) $ (0.05) $ (0.03) $ 0.11 $ (0.07)
======== ======== ======== ========
DILUTED NET INCOME (LOSS) FROM
CONTINUING OPERATIONS
PER SHARE: $ (0.05) $ (0.03) $ 0.11 $ (0.07)
======== ======== ======== ========
WEIGHTED AVERAGE COMMON SHARES
OUTSTANDING:
Basic 70,119 61,933 69,971 62,610
======== ======== ======== ========
Diluted 70,119 61,933 72,410 62,610
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SYNTROLEUM CORPORATION AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
For the Six Months
Ended June 30,
------------------
2009 2008
-------- --------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $ 7,373 $ (4,123)
Income (loss) from discontinued operations (70) 1,467
-------- --------
Income (loss) from continuing operations 7,443 (5,590)
Adjustments to reconcile net income (loss) to net
cash provided by (used in) operating activities:
Depreciation, depletion and amortization 188 303
Foreign currency exchange 1,712 1,272
Non-cash compensation expense 3,011 734
Other -- --
Non-cash interest costs on long-term debt -- --
Non-cash loss in equity method investee 3,169 456
Changes in assets and liabilities:
Accounts and notes receivable (5,957) 177
Changes in trading securities -- --
Other assets 104 134
Accounts payable (283) 105
Accrued liabilities and other 697 600
Deferred revenue 2,803 3,074
-------- --------
Net cash provided by continuing operations 12,887 1,265
Net cash used in discontinued operations (285) (217)
-------- --------
Net cash provided by operating activities 12,602 1,048
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment (104) (36)
Investment in Dynamic Fuels, LLC (6,000) --
-------- --------
Net cash (used in) continuing operations (6,104) (36)
Net cash provided by discontinued operations -- 8,670
-------- --------
Net cash (used in) provided by
investing activities (6,104) 8,634
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from sale of common stock, warrants
and option exercises 381 --
Repurchase of stock option awards (945) --
-------- --------
Net cash used in financing activities (564) --
-------- --------
NET CHANGE IN CASH AND CASH EQUIVALENTS 5,934 9,682
CASH AND CASH EQUIVALENTS, beginning of period 10,101 18,405
-------- --------
CASH AND CASH EQUIVALENTS, end of period $ 16,035 $ 28,087
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