- Gevo to Host Conference Call Today at 4:30 p.m.
EST/2:30 MST -
Gevo, Inc. (NASDAQ:GEVO) today announced financial results for the
three months ended December 31, 2016. Key highlights for the fourth
quarter of 2016 and key subsequent events included:
- Gevo produced approximately 190,000 gallons of isobutanol
during the quarter at Gevo’s isobutanol production facility located
in Luverne, Minnesota (the “Agri-Energy Facility”).
- Cash and Cash Equivalents at February 28, 2017 were $22.6
million and the total principal face value of the debt outstanding
was $17.7 million3.
- On February 13, 2017, Gevo signed a letter of intent with HCS
Holding GmbH (HCS) to supply isooctane under an offtake agreement.
HCS is a manufacturer of specialty products and solutions in the
hydrocarbons sector, operating under such brands as Haltermann
Carless. In the first phase of the contemplated binding offtake
agreement, HCS is expected to purchase isooctane produced at Gevo’s
demonstration hydrocarbons plant located in Silsbee, Texas,
commencing in 2017. During the first phase, expected revenue would
be in the range of $2-3 million per year and would
continue until completion of Gevo’s future, large-scale commercial
hydrocarbon plant. In the second phase, HCS is expected to
purchase approximately 300,000 to 400,000 gallons of isooctane per
year under the contemplated binding offtake agreement for a period
of five years. Gevo expects to supply this isooctane from
its first large-scale commercial hydrocarbons facility, which is
likely to be built at the Agri-Energy Facility.
- On February 13, 2017, the holder of Gevo’s 10% Convertible
Senior Notes, due 2017 (the “2017 Notes”), agreed to extend the
maturity date of the 2017 Notes from March 15, 2017 to June 23,
2017 (the “2017 Notes Extension Transaction”). The terms of
the 2017 Notes Extension Transaction included, among other things,
the following: (i) an increase in the coupon on the 2017 Notes by
two percent (2%) to twelve percent (12%); and (ii) the requirement
that Gevo pay down $8 million of principal on the 2017 Notes as
follows: $2 million on each of March 13, 2017, April 13, 2017, May
12, 2017 and June 13, 2017, with an option for Gevo to prepay all
$8 million at any time in our sole discretion. In addition, as part
of the 2017 Notes Extension Transaction, Gevo agreed to pay the
holder fifteen percent (15%) of the net proceeds from its next
underwritten public offering, completed prior to June 23, 2017, to
be used to reduce the then-outstanding principal of the 2017
Notes.
- On February 17, 2017, in an underwritten offering Gevo sold
5,680,000 Series G units, with each Series G unit consisting of one
share of common stock, a Series K warrant to purchase one share of
common stock and a Series M warrant to purchase one share of common
stock. Gevo also sold 570,000 Series H units, with each Series H
unit consisting of a pre-funded Series L warrant to purchase one
share of common stock, a Series K warrant to purchase one share of
common stock and a Series M warrant to purchase one share of common
stock. The gross proceeds from this offering were approximately
$11.9 million, not including any future proceeds from the exercise
of the warrants.
- On February 23, 2017, Gevo paid down the principal balance on
the 2017 Notes with 15% of the net proceeds from the offering
referred to above, along with the $8.0 million in prepayments under
the supplemental indenture, for an aggregate total payment of $9.6
million, which reduced the principal balance on the 2017 Notes to
approximately $16.5 million.
- In December 2016 and January 2017, Gevo entered into private
exchange agreements with holders of its 7.5% convertible senior
notes due 2022 (the “ 2022 Notes”) to exchange an aggregate of $9.8
million of principal amount of 2022 Notes for an aggregate of
2,407,214 shares of common stock. These exchanges reduced the
outstanding principal amount of the 2022 Notes to $1.175
million.
Outlook for 2017
Gevo has established the following specific operational and
financial targets and milestones for 2017:
- Restructure Gevo’s balance sheet in a manner that addresses the
$17.7 million of debt represented by its outstanding convertible
notes and that allows Gevo to execute on its long-term strategy and
business development plan.
- Obtain binding supply contracts for a combination of
isobutanol and related hydrocarbon products equal to at least fifty
percent (50%) of the capacity of the expanded Agri-Energy Facility
that Gevo plans to construct (the “Agri-Energy Facility
Expansion”).
- Gevo estimates that its maximum annual isobutanol production
capacity at the Agri-Energy Facility to be currently over 1 million
gallons per year. As described below, however, Gevo expects to
produce isobutanol at levels that better match market development
sales in 2017. As such, Gevo expects to produce approximately
500,000 gallons of isobutanol during 2017.
- Achieve a cash EBITDA loss of between $18.0-$20.0
million for the fiscal year ending December 31,
2017.4
Market Development Sales and Production Strategy for
2017
Gevo believes that during 2016 it demonstrated its ability to
produce isobutanol in commercial quantities on a consistent and
repeatable basis. For 2017, Gevo’s overarching goal is to
leverage its isobutanol production of 440,000 gallons in 2016 and
its projected isobutanol production of 500,000 gallons in 2017, to
more fully develop the markets for its isobutanol and related
hydrocarbon products. Ultimately, Gevo’s primary goal is to enter
into binding supply contracts for isobutanol and related
hydrocarbon products that represent the majority of the production
volumes to be produced at the expanded Agri-Energy Facility. Gevo
believes that such contracts would underpin the economics of the
Agri-Energy Facility Expansion, which should facilitate the raising
of the capital necessary to finance the Agri-Energy Facility
Expansion, potentially at a lower cost of capital than what Gevo
has historically achieved through the issuance of common stock and
warrants in underwritten public offerings.
In addition, Gevo intends to further develop the market for
isobutanol-blended gasoline in 2017. Gevo expects to benefit from
its market development efforts in the marina market in 2016, by
increasing the number of marina outlets which carry gasoline blends
containing its isobutanol. In 2017, Gevo expects to benefit, for
the first time, from active sales efforts throughout the entire
boating season, traditionally a very seasonal market. In terms of
development for the on-road market, Gevo seeks to increase the
number of geographic regions which carry its isobutanol. In 2016,
Gevo announced that gasoline blended with its isobutanol and
marketed for use in automobiles had begun to be sold in
the Houston area through Gevo’s partner, Musket. This
marked the first time that Gevo’s isobutanol has been specifically
targeted towards on-road vehicles. In 2017, Gevo expects to expand
sales into other regions of the Southwest U.S., as well as
potentially into the Midwest and Northeast of the U.S.
In terms of isobutanol production, Gevo anticipates producing
sufficient quantities to meet customer demand in 2017 while also
providing enough inventory to support additional market and
customer development efforts in the future. As a result, Gevo’s
production goals will not be to maximize production, but rather to
align such production with its isobutanol sales efforts. Gevo’s
alcohol storage capacity is limited at its Agri-Energy Facility,
and any excess isobutanol inventory which Gevo builds up will
simply tie up some portion of its cash in working capital.
Therefore, during certain periods of 2017, Gevo may cease
isobutanol production at the Agri-Energy Facility and produce
ethanol only over such periods.
Agri-Energy Facility Expansion
Gevo believes that the current configuration of the Agri-Energy
Facility, whereby Gevo co-produces isobutanol and ethanol utilizing
one fermenter for isobutanol production and three fermenters for
ethanol production, will not enable Gevo to become profitable on a
consolidated basis. Gevo believes that the best way for it to
become profitable is to undertake the Agri-Energy Facility
Expansion, whereby Gevo would convert the Agri-Energy Facility to
the sole production of isobutanol, with some percentage of such
isobutanol volumes to be further processed into hydrocarbons such
as alcohol-to-jet fuel (“ATJ”) and isooctane. The Agri-Energy
Facility represents the best site to expand our isobutanol
production because it leverages the equipment Gevo has already
installed at the site, in particular Gevo’s GIFT® technology
system.
Gevo is currently conducting engineering work to determine the
ultimate production capacity of the Agri-Energy Facility following
the Agri-Energy Facility Expansion, as well as the capital cost
associated with the project. The binding supply contracts, which
Gevo will pursue in 2017, are expected to form the basis on which
Gevo would set the specific configuration of the plant in terms of
end product mix between isobutanol, ATJ and isooctane. Once this
preliminary engineering work is completed, which Gevo expects will
be in the second half of 2017, Gevo expects to be able to
communicate publicly the estimated scale, configuration and
projected capital cost for the Agri-Energy Facility Expansion.
“We came a long way in 2016. On the isobutanol production
front, we brought a full production line online that enabled us to
hit our fermentation cycle times and our product quality and cost
targets. This data is critical for building out the expanded
plant and for developing appropriate pricing for sales contracts in
support of this expansion. The Silsbee hydrocarbon plant at South
Hampton Resources continues to operate well, producing market
development quantities of isooctane and ATJ. In summary, 2016
was all about making sure the isobutanol production technology
worked as it was supposed to by producing product that met
specification while meeting our lower cost targets,” said Dr.
Patrick Gruber, Gevo’s Chief Executive Officer.
Dr. Gruber continued, “2016 allowed us to better pin down the
cost side of our products and determine more clearly which markets
make sense for our isobutanol and hydrocarbon products. In
2017, our core goals relate to market development with a focus of
securing supply agreements from customers to off-take isobutanol,
ATJ and isooctane from our expanded plant in Luverne. We can
see the customer interest, and we need to translate that interest
into binding agreements to build a profitable business. We
want to know with as much certainty as possible who is going to buy
what and when, while targeting product margins to become profitable
as a company.”
Financial Highlights
Revenues for the fourth quarter of 2016 were $5.8 million
compared with $7.3 million in the same period in 2015. During the
fourth quarter of 2016, revenues derived at the Luverne plant were
$5.3 million, a decrease of approximately $1.2 million from the
same period in 2015. This was primarily a result of lower ethanol
production and distiller grain prices in the fourth quarter of 2016
versus the same period in 2015.
During the fourth quarter of 2016, hydrocarbon revenues were
$0.5 million, $0.2 million higher than the same period in 2015.
Gevo’s hydrocarbon revenues are comprised of sales of jet fuel,
isooctane and isooctene.
Gevo generated grant and other revenue of $44 thousand during
the fourth quarter of 2016, down $0.5 million as compared to the
same period in 2015, mainly as a result of Gevo’s contract with the
Northwest Advanced Renewables Alliances ending in 2016.
Cost of goods sold was $8.2 million for the three months ended
December 31, 2016, compared with $9.0 million in the same quarter
in 2015. Cost of goods sold included approximately $6.6 million
associated with the production of ethanol, isobutanol and related
products and approximately $1.6 million in depreciation
expense.
Gross loss was $2.3 million for the three months ended December
31, 2016, versus $1.7 million in the same quarter in 2015.
Research and development expense was flat during the three
months ended December 31, 2016, compared with the same quarter in
2015.
Selling, general and administrative expense decreased by $0.7
million during the three months ended December 31, 2016, compared
with the same quarter in 2015, due primarily to a decrease
of $0.8 million in salary and related expenses.
Loss from operations in the fourth quarter of 2016 was $6.5
million, compared with $6.6 million in the same quarter in
2015.
Non-GAAP cash EBITDA loss in the fourth quarter of 2016 was $4.7
million, compared with $4.2 million in the same quarter in
2015.
Interest expense in the fourth quarter of 2016 was $1.3 million,
down $0.7 million as compared to the same quarter last year.
During the three months ended December 31, 2016, there was no
change in the value of the embedded derivatives in the 2022 Notes,
as the derivatives have had no meaningful value since the third
quarter of 2014. However, Gevo did incur a non-cash gain of
$0.2 million in the quarter as a result of exchanging an aggregate
of $1.425 million principal amount of the 2022 Notes for shares of
Gevo’s common stock in December.
During the three months ended December 31, 2016, Gevo also
incurred a non-cash loss of $0.6 million during the quarter due to
the quarterly mark-to-market valuation of the 2017 Notes.
During the three months ended December 31, 2016, the estimated
fair value of the derivative warrant liability decreased by $6.0
million, resulting in a non-cash gain from a change in the fair
value of derivative warrant liability.
The net loss for the fourth quarter of 2016 was $2.3 million,
compared with $8.0 million during the same period in 2015.
The non-GAAP adjusted net loss for the fourth quarter of 2016
was $7.8 million, compared with $8.6 million during the same period
in 2015.
The cash position at December 31, 2016 was $27.9 million and the
total principal face value of the debt outstanding was $35.7
million.
Webcast and Conference Call Information
Hosting today’s conference call at 4:30 p.m. EST (2:30 p.m. MST)
will be Dr. Patrick Gruber, Chief Executive Officer, Mike Willis,
Chief Financial Officer, and Geoff Williams, General Counsel. They
will review Gevo’s financial results and provide an update on
recent corporate highlights.
To participate in the conference call, please dial 1 (888)
771-4371 (inside the U.S.) or 1 (847) 585-4405 (outside the U.S.)
and reference the access code 44557047. A replay of the call and
webcast will be available two hours after the conference call ends
on March 29, 2017. To access the replay, please dial 1-888-843-7419
(inside the US) or 1-630-652-3042 (outside the US) and
reference the access code 44557047. The archived webcast will be
available in the Investor Relations section of Gevo's website at
www.gevo.com.
About Gevo
Gevo is a leading renewable technology, chemical products, and
next generation biofuels company. Gevo has developed proprietary
technology that uses a combination of synthetic biology, metabolic
engineering, chemistry and chemical engineering to focus primarily
on the production of isobutanol, as well as related products from
renewable feedstocks. Gevo’s strategy is to commercialize biobased
alternatives to petroleum-based products to allow for the
optimization of fermentation facilities’ assets, with the ultimate
goal of maximizing cash flows from the operation of those assets.
Gevo produces isobutanol, ethanol and high-value animal feed at its
fermentation plant in Luverne, Minnesota. Gevo has also developed
technology to produce hydrocarbon products from renewable alcohols.
Gevo currently operates a biorefinery in Silsbee, Texas, in
collaboration with South Hampton Resources Inc., to produce
renewable jet fuel, octane, and ingredients for plastics like
polyester. Gevo has a marquee list of partners including The
Coca-Cola Company, Toray Industries Inc. and Total SA, among
others. Gevo is committed to a sustainable bio-based economy that
meets society’s needs for plentiful food and clean air and
water.
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 Gevo to develop
markets for its products, Gevo’s ability to enter into binding
offtake, sales or supply agreements for its products, Gevo’s
ability to produce isobutanol or related hydrocarbon products at
its Luverne, Minnesota production facility, Gevo’s ability to
finance the Agri-Energy Facility Expansion, Gevo’s ability to
achieve its 2017 operational and financial targets and milestones,
Gevo’s ability to secure new customer relationships across core
markets, and other statements that are not purely statements of
historical fact. These forward-looking statements are made on
the basis of the current beliefs, expectations and assumptions of
the management of Gevo and are subject to significant risks and
uncertainty. Investors are cautioned not to place undue reliance on
any such forward-looking statements. All such forward-looking
statements speak only as of the date they are made, and Gevo
undertakes no obligation to update or revise these statements,
whether as a result of new information, future events or otherwise.
Although Gevo believes that the expectations reflected in these
forward-looking statements are reasonable, these statements involve
many risks and uncertainties that may cause actual results to
differ materially from what may be expressed or implied in these
forward-looking statements. For a further discussion of risks and
uncertainties that could cause actual results to differ from those
expressed in these forward-looking statements, as well as risks
relating to the business of Gevo in general, see the risk
disclosures in the Annual Report on Form 10-K of Gevo for the year
ended December 31, 2016, and in subsequent reports on Forms 10-Q
and 8-K and other filings made with the U.S. Securities and
Exchange Commission by Gevo.
Non-GAAP Financial Information
This press release contains financial measures that do not
comply with U.S. generally accepted accounting principles (GAAP),
including non-GAAP cash EBITDA loss and non-GAAP adjusted net loss
per share. On a non-GAAP basis, non-GAAP cash EBITDA excludes
non-cash items such as depreciation and stock-based compensation.
On a non-GAAP basis, non-GAAP adjusted net loss per share excludes
non-cash gains and/or losses recognized in the quarter due to the
changes in the fair value of certain of Gevo’s financial
instruments, such as warrants, convertible debt and embedded
derivatives. Management believes these measures are useful to
supplements to 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, Gevo
believes these non-GAAP financial measures are useful to investors
because they allow for greater transparency into the indicators
used by management as a basis for its financial and operational
decision making. Non-GAAP information is not prepared under a
comprehensive set of accounting rules and therefore, should only be
read in conjunction with financial information reported under U.S.
GAAP when understanding Gevo’s operating performance. A
reconciliation between GAAP and non-GAAP financial information is
provided in the financial statement tables below.
Reverse Stock Split
On December 21, 2016, our Board of Directors approved a reverse
split of our common stock, par value $0.01, at a ratio of
one-for-twenty. This reverse stock split became
effective on January 5, 2017 and, unless otherwise indicated, all
share amounts, per share data, share prices, exercise prices and
conversion rates set forth in this press release and the
accompanying consolidated financial statements have, where
applicable, been adjusted to reflect this reverse stock split.
1 Adjusted Net Loss Per Share is calculated by adding back
non-cash gains and/or losses recognized in the quarter due to the
changes in the fair value of certain of our financial instruments,
such as warrants, convertible debt and embedded derivatives; a
reconciliation of Adjusted Net Loss Per Share to GAAP net loss per
share is provided in the financial statement tables following this
release.
2 Cash EBITDA loss is calculated by adding back
depreciation and non-cash stock compensation to GAAP loss from
operations; a reconciliation of cash EBITDA Loss to GAAP loss from
operations is provided in the financial statement tables following
this release.
3 Cash and Cash Equivalents is unaudited and preliminary,
and does not present all information necessary for an understanding
of our financial condition as of February 28, 2017.
4 A reconciliation of projected cash EBITDA Loss to
projected GAAP loss from operations for the year ending December
31, 2017 is provided in the financial statement tables following
this release.
Gevo, Inc. Condensed Consolidated
Statements of Operations Information(Unaudited, in
thousands, except share and per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Year Ended December 31, |
|
December 31, |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
Revenue and
cost of goods sold |
|
|
|
|
|
|
|
|
|
|
Ethanol
sales and related products, net |
|
$ |
24,613 |
|
|
$ |
27,125 |
|
|
$ |
5,325 |
|
|
$ |
6,521 |
|
Hydrocarbon revenue |
|
|
1,929 |
|
|
|
1,694 |
|
|
|
467 |
|
|
|
245 |
|
Grant and
other revenue |
|
|
671 |
|
|
|
1,318 |
|
|
|
44 |
|
|
|
531 |
|
Total revenues |
|
|
27,213 |
|
|
|
30,137 |
|
|
|
5,836 |
|
|
|
7,297 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
goods sold |
|
|
37,017 |
|
|
|
38,762 |
|
|
|
8,156 |
|
|
|
9,001 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
loss |
|
|
(9,804 |
) |
|
|
(8,625 |
) |
|
|
(2,320 |
) |
|
|
(1,704 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research
and development expense |
|
|
5,216 |
|
|
|
6,610 |
|
|
|
1,546 |
|
|
|
1,596 |
|
Selling,
general and administrative expense |
|
|
8,965 |
|
|
|
16,692 |
|
|
|
2,627 |
|
|
|
3,286 |
|
Total operating expenses |
|
|
14,181 |
|
|
|
23,302 |
|
|
|
4,173 |
|
|
|
4,882 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from
operations |
|
|
(23,985 |
) |
|
|
(31,927 |
) |
|
|
(6,493 |
) |
|
|
(6,586 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense |
|
|
(7,837 |
) |
|
|
(8,243 |
) |
|
|
(1,342 |
) |
|
|
(2,057 |
) |
Gain
(loss) on extinguishment of debt |
|
|
(763 |
) |
|
|
232 |
|
|
|
157 |
|
|
|
(53 |
) |
Gain on
extinguishment of warrant liability |
|
|
(918 |
) |
|
|
1,775 |
|
|
|
- |
|
|
|
- |
|
Gain
(loss) from change in fair value of derivative warrant
liability |
|
|
1,783 |
|
|
|
577 |
|
|
|
5,954 |
|
|
|
2,938 |
|
Gain from
change in fair value of 2017 Notes |
|
|
(4,204 |
) |
|
|
3,895 |
|
|
|
(574 |
) |
|
|
313 |
|
Loss on issuance of equity |
|
|
(1,519 |
) |
|
|
(2,523 |
) |
|
|
- |
|
|
|
(2,523 |
) |
Other
income |
|
|
215 |
|
|
|
20 |
|
|
|
9 |
|
|
|
6 |
|
Total
other expense |
|
|
(13,243 |
) |
|
|
(4,267 |
) |
|
|
4,204 |
|
|
|
(1,376 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(37,228 |
) |
|
$ |
(36,194 |
) |
|
$ |
(2,289 |
) |
|
$ |
(7,962 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per share -
basic and diluted |
|
$ |
(9.68 |
) |
|
$ |
(51.61 |
) |
|
$ |
(0.33 |
) |
|
$ |
(8.87 |
) |
Weighted-average number
of common shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
outstanding - basic and diluted |
|
|
3,847,421 |
|
|
|
701,252 |
|
|
|
6,840,316 |
|
|
|
897,723 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gevo, Inc. Condensed Consolidated
Balance Sheet Information(Unaudited, in
thousands)
|
|
|
|
|
|
December
31, |
|
|
|
2016 |
|
2015 |
|
Assets |
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
Cash and
cash equivalents |
|
$ |
27,888 |
|
$ |
17,031 |
|
Accounts
receivable |
|
|
1,122 |
|
|
1,391 |
|
Inventories |
|
|
3,458 |
|
|
3,487 |
|
Prepaid
expenses and other current assets |
|
|
850 |
|
|
731 |
|
Total
current assets |
|
|
33,318 |
|
|
22,640 |
|
|
|
|
|
|
Property, plant and
equipment, net |
|
|
75,592 |
|
|
76,777 |
|
Deposits and other
assets |
|
|
3,414 |
|
|
3,414 |
|
Total
assets |
|
$ |
112,324 |
|
$ |
102,831 |
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
Current
liabilities: |
|
|
|
|
Accounts
payable, accrued liabilities and other current liabilities |
|
$ |
6,193 |
|
$ |
7,476 |
|
Current
Portion of 2017 Notes recorded at fair value |
|
|
25,769 |
|
|
- |
|
Derivative warrant liability |
|
|
2,698 |
|
|
10,493 |
|
Current
portion of secured debt, net |
|
|
- |
|
|
330 |
|
Total
current liabilities |
|
|
34,660 |
|
|
18,299 |
|
Long-term portion
secured debt, net |
|
|
- |
|
|
153 |
|
2017 notes recorded at
fair value |
|
|
- |
|
|
21,565 |
|
2022
notes, net |
|
|
8,221 |
|
|
14,341 |
|
Other long-term
liabilities |
|
|
179 |
|
|
147 |
|
Total
liabilities |
|
|
43,060 |
|
|
54,505 |
|
|
|
|
|
|
|
|
|
Total stockholders’ equity |
|
|
69,264 |
|
|
48,326 |
|
Total
liabilities and stockholders' equity |
|
$ |
112,324 |
|
$ |
102,831 |
|
|
|
|
|
|
|
|
|
Gevo, Inc. Condensed Consolidated Cash
Flow Information(Unaudited, in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Year Ended December 31, |
|
December 31, |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
Operating
Activities |
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(37,228 |
) |
|
$ |
(36,194 |
) |
|
$ |
(2,290 |
) |
|
$ |
(7,962 |
) |
Adjustments to
reconcile net loss to net cash used in operating activities: |
|
|
|
|
|
|
|
|
(Gain)
from the change in fair value of derivative warrant liability |
|
|
(1,783 |
) |
|
|
(577 |
) |
|
|
(5,953 |
) |
|
|
(2,938 |
) |
Loss/(Gain) from the change in fair value of 2017 Notes |
|
|
4,204 |
|
|
|
(3,895 |
) |
|
|
575 |
|
|
|
(313 |
) |
Loss/(Gain) on exchange or conversion of debt |
|
|
763 |
|
|
|
(232 |
) |
|
|
(157 |
) |
|
|
53 |
|
Loss/(Gain) on extinguishment of warrant liability |
|
|
918 |
|
|
|
(1,775 |
) |
|
|
- |
|
|
|
- |
|
Loss on
issuance of equity |
|
|
1,519 |
|
|
|
2,523 |
|
|
|
- |
|
|
|
2,523 |
|
Stock-based compensation |
|
|
886 |
|
|
|
2,647 |
|
|
|
77 |
|
|
|
694 |
|
Depreciation and amortization |
|
|
6,747 |
|
|
|
6,573 |
|
|
|
1,709 |
|
|
|
1,676 |
|
Non-cash
interest expense |
|
|
3,977 |
|
|
|
3,772 |
|
|
|
637 |
|
|
|
1,032 |
|
Other
non-cash expenses |
|
|
(1 |
) |
|
|
(7 |
) |
|
|
(3 |
) |
|
|
(7 |
) |
Changes in operating
assets and liabilities: |
|
|
|
|
|
|
|
|
Accounts
receivable |
|
|
269 |
|
|
|
970 |
|
|
|
(43 |
) |
|
|
(257 |
) |
Inventories |
|
|
29 |
|
|
|
805 |
|
|
|
(255 |
) |
|
|
(784 |
) |
Prepaid
expenses and other current assets |
|
|
(119 |
) |
|
|
1 |
|
|
|
(6 |
) |
|
|
(113 |
) |
Accounts
payable, accrued expenses, and long-term liabilities |
|
|
(697 |
) |
|
|
(2,771 |
) |
|
|
1,398 |
|
|
|
(752 |
) |
Net cash
used in operating activities |
|
$ |
(20,516 |
) |
|
$ |
(28,160 |
) |
|
$ |
(4,311 |
) |
|
$ |
(7,148 |
) |
|
|
|
|
|
|
|
|
|
Investing
Activities |
|
|
|
|
|
|
|
|
Acquisitions of property, plant and equipment |
|
|
(5,938 |
) |
|
|
(1,464 |
) |
|
|
(418 |
) |
|
|
(1,193 |
) |
Restricted certificate of deposit |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Proceeds
from sales tax refund for property, plant and equipment |
|
|
- |
|
|
|
144 |
|
|
|
- |
|
|
|
- |
|
Net cash
used in investing activities |
|
|
(5,938 |
) |
|
|
(1,320 |
) |
|
|
(418 |
) |
|
|
(1,193 |
) |
|
|
|
|
|
|
|
|
|
Financing
Activities |
|
|
|
|
|
|
|
|
Payments
on secured debt |
|
|
(504 |
) |
|
|
(318 |
) |
|
|
- |
|
|
|
(82 |
) |
Debt and
equity offering costs |
|
|
(3,144 |
) |
|
|
(3,519 |
) |
|
|
151 |
|
|
|
(734 |
) |
Proceeds
from issuance of common stock upon exercise of stock options
and employee stock purchase plan |
|
|
- |
|
|
|
3 |
|
|
|
- |
|
|
|
Proceeds
from issuance of common stock and common stock warrants |
|
|
28,661 |
|
|
|
33,820 |
|
|
|
- |
|
|
|
9,970 |
|
Proceeds
from issuance of convertible debt, net |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
Proceeds
from the exercise of warrants |
|
|
12,298 |
|
|
|
10,166 |
|
|
|
1,403 |
|
|
|
15 |
|
Net cash
provided by financing activities |
|
|
37,311 |
|
|
|
40,152 |
|
|
|
1,554 |
|
|
|
9,169 |
|
|
|
|
|
|
|
|
|
|
Net increase (decrease)
in cash and cash equivalents |
|
|
10,857 |
|
|
|
10,672 |
|
|
|
(3,175 |
) |
|
|
828 |
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents |
|
|
|
|
|
|
|
|
Beginning
of year |
|
|
17,031 |
|
|
|
6,359 |
|
|
|
31,063 |
|
|
|
16,203 |
|
Ending of
year |
|
|
27,888 |
|
|
|
17,031 |
|
|
|
27,888 |
|
|
|
17,031 |
|
Gevo, Inc. Reconciliation of GAAP to
Non-GAAP Financial Information(Unaudited, in
thousands)
|
|
|
|
|
|
|
Year Ended |
|
Three Months
Ended |
|
|
December 31, |
|
December 31, |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
Gevo Development, LLC /
Agri-Energy, LLC |
|
|
|
|
|
|
|
|
Loss from
operations |
|
$ |
(12,940 |
) |
|
$ |
(12,204 |
) |
|
$ |
(3,044 |
) |
|
$ |
(2,636 |
) |
Depreciation and amortization |
|
|
6,009 |
|
|
|
5,717 |
|
|
|
1,557 |
|
|
|
1,429 |
|
Non-cash
stock-based compensation |
|
|
11 |
|
|
|
43 |
|
|
|
- |
|
|
|
14 |
|
Non-GAAP cash EBITDA
loss |
|
$ |
(6,920 |
) |
|
$ |
(6,444 |
) |
|
$ |
(1,487 |
) |
|
$ |
(1,193 |
) |
|
|
|
|
|
|
|
|
|
Gevo, Inc. |
|
|
|
|
|
|
|
|
Loss from
operations |
|
$ |
(11,045 |
) |
|
$ |
(19,723 |
) |
|
$ |
(3,449 |
) |
|
$ |
(3,950 |
) |
Depreciation and amortization |
|
|
738 |
|
|
|
856 |
|
|
|
152 |
|
|
|
247 |
|
Non-cash
stock-based compensation |
|
|
875 |
|
|
|
2,604 |
|
|
|
77 |
|
|
|
680 |
|
Non-GAAP cash EBITDA
loss |
|
$ |
(9,432 |
) |
|
$ |
(16,263 |
) |
|
$ |
(3,220 |
) |
|
$ |
(3,023 |
) |
|
|
|
|
|
|
|
|
|
Gevo Consolidated |
|
|
|
|
|
|
|
|
Loss from
operations |
|
$ |
(23,985 |
) |
|
$ |
(31,927 |
) |
|
$ |
(6,493 |
) |
|
$ |
(6,586 |
) |
Depreciation and amortization |
|
|
6,747 |
|
|
|
6,573 |
|
|
|
1,709 |
|
|
|
1,676 |
|
Non-cash
stock-based compensation |
|
|
886 |
|
|
|
2,647 |
|
|
|
77 |
|
|
|
694 |
|
Non-GAAP cash EBITDA
loss |
|
$ |
(16,352 |
) |
|
$ |
(22,707 |
) |
|
$ |
(4,707 |
) |
|
$ |
(4,216 |
) |
|
|
|
|
|
|
|
|
|
Non-GAAP
Adjusted Net Loss: |
|
|
|
|
|
|
|
|
Gevo Consolidated |
|
|
|
|
|
|
|
|
Net Loss |
|
$ |
(37,228 |
) |
|
$ |
(36,194 |
) |
|
$ |
(2,289 |
) |
|
$ |
(7,962 |
) |
(Loss)/Gain on exchange
or conversion of debt |
|
|
(763 |
) |
|
|
232 |
|
|
|
157 |
|
|
|
(53 |
) |
(Loss)/Gain on
extinguishment of warrant liability |
|
|
(918 |
) |
|
|
1,775 |
|
|
|
- |
|
|
|
- |
|
(Loss)/Gain from change
in fair value of the 2017 Notes |
|
|
(4,204 |
) |
|
|
3,895 |
|
|
|
(574 |
) |
|
|
313 |
|
(Loss)/Gain from change
in fair value of derivative warrant liability |
|
|
1,783 |
|
|
|
577 |
|
|
|
5,954 |
|
|
|
2,938 |
|
Loss on issuance of
equity |
|
|
(1,519 |
) |
|
|
(2,523 |
) |
|
|
- |
|
|
|
(2,523 |
) |
Non-GAAP Net Loss |
|
$ |
(31,607 |
) |
|
$ |
(40,150 |
) |
|
$ |
(7,826 |
) |
|
$ |
(8,637 |
) |
Weighted-average number
of common shares outstanding - basic and diluted |
|
|
3,847,421 |
|
|
|
701,252 |
|
|
|
6,840,316 |
|
|
|
897,723 |
|
Non-GAAP Adjusted Net
loss per share - basic and diluted |
|
$ |
(8.22 |
) |
|
$ |
(57.25 |
) |
|
$ |
(1.14 |
) |
|
$ |
(9.62 |
) |
|
|
|
|
|
|
|
|
|
Gevo, Inc. Reconciliation of GAAP to
Non-GAAP Financial Information(Unaudited, in
thousands)
|
|
|
|
|
Year Ended |
|
|
December 31, 2017 |
Projected Non-GAAP Cash EBITDA Loss |
|
Estimated Range |
|
|
|
Gevo Consolidated |
|
|
Loss from
operations |
|
$
(24,000) - (28,000) |
Depreciation and amortization |
|
5,500
- 7,000 |
Non-cash
stock-based compensation |
|
500 - 1,000 |
Non-GAAP cash EBITDA
loss |
|
$ (18,000) - (20,000) |
|
|
|
Media Contact
David Rodewald
The David James Agency, LLC
+1 805-494-9508
gevo@davidjamesagency.com
Investor Contact
Shawn M. Severson
EnergyTech Investor, LLC
+1 415-233-7094
gevo@energytechinvestor.com
@ShawnEnergyTech
www.energytechinvestor.com
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