Global Clean Energy Holdings, Inc. Issues an Annual Update to Shareholders
02 April 2012 - 9:11PM
LONG BEACH, Calif., April 2, 2012 (GLOBE NEWSWIRE)
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To All GCEH Shareholders:
Since I began as President and Chief Executive Officer of Global
Clean Energy Holdings, Inc. ("Global") (OTCBB:GCEH), I have been
sending an annual letter to my fellow shareholders in an effort to
communicate how we are on delivering on our plan, to identify our
achievements and set-backs, and provide some insight into our plans
for the upcoming year.
On March 21st, we filed our Form 10-K annual report and I am
proud to announce that we have reported net earnings for the year
ending December 31, 2011. This is the second time in the last three
years that we have reported net earnings.
As you know, we are in a very young industry. Global is
focused on the supply of the base feedstock because it represents
more than 80% of the biofuels cost structure commanding the
majority of the profit, which provides the most long-term
opportunity for our shareholders.
With the core of our business in a relatively new area of
agriculture, we have both incredible opportunities and significant
challenges. I am confident that we can succeed with the
skilled technical and management teams that we have put in place.
While the challenges we face are not unique to farming, they are
unique to the crop we are growing. We feel Jatropha has
unparalleled promise for long-term economic, environmental and
social sustainability. We are pioneering a new path by
developing a crop which has previously not been subject to
large-scale commercialization—with a commitment to develop
new lands dedicated to non-food-based energy bio-feedstocks which
do not compete with existing farm land. While we have some of
the same risks that have faced the agricultural industry for
hundreds of years, we have new challenges in developing an entirely
new product and supply chain. The good news is that we have the
most modern advances in science and technology available to support
us. We have spent the last four years building our platform for
growth, gaining experience in planting and caring for a new tree
crop, and developing a baseline to support continued research. We
are developing and growing our business to be capable of
cultivating tens of millions of trees.
I am more confident than ever that our business model is aligned
with the enormous demand for feedstocks in the biofuels industry,
which will provide a highly-profitable business platform for our
company.
This past year we have accomplished many things. The most
significant accomplishments include:
- Revenues increased by more than 50%;
- We acquired an additional 5,557 acres in Mexico, thereby
increasing our farm acreage by more than 54%;
- We committed to developing a farm in the Dominican Republic,
which we will use as a research farm to test and research the
growth of multiple varieties of Jatropha plants in the Dominican
Republic;
- We increased our full time employees by more than 30% to 488;
- We increased our asset base by more than $5.1 million, an
increase of over 46%, while liabilities increased by less than 34%.
We plan to continue to invest in assets and expand our farming
operations;
- We reduced our general and administrative expenses by more than
21%, compared to 2010;
- We increased the amount of management and advisory services
that we provide to partners and third parties;
- We raised an additional $7.9 million in project equity and
financing;
- We improved our balance sheet by combining the removal of
legacy liabilities—resulting in a profit for fiscal year 2011 of
$271,000; and
- As part of an international bio-jet initiative that we have
been involved with for more than two years, we supplied additional
Jatropha oil to Aeropuertos y Serviceios Auxiliares, the Mexican
National Airport authority, to be converted by Honeywell's UOP
division, into bio-jet fuel for commercial jet
use.
I continue to be proud of the great social work our team is
doing by supporting local villages near our farms in Mexico. We
have a deep corporate commitment to work with the local communities
to improve the social conditions where our employees and their
families live.
Over the past year I have been asked to be an expert speaker at
a number of bio-fuels conferences—including the recent Air
Transportation Action Group (ATAG) annual meeting in Geneva
Switzerland. The common theme I heard was an unwavering commitment
to use biofuels and a general frustration with the unavailability
of feedstocks to satisfy currently existing demand. These
sentiments continue to validate my confidence in our business
roadmap. We are clearly on the right side of this business supply
chain; and if we stay committed to being "the low cost producer" in
the biofuels feedstock market, we will drive significant revenue
and profit.
I am thrilled with the progress we have made and the advances we
continue to see in the development of our supply platform. The
exceptional effort our scientific and operational teams are making
will allow us to continue with leading edge research and
development work. The ability to apply new technological advances
will help drive our business efficiencies and hasten our speed to
new development... further adding to shareholder value.
We are all keenly aware of our focus on driving long term
shareholder value. I thank you for your continued support and
confidence. Please follow us on Twitter [gceholdings@twitter]
and Facebook [gceh@facebook.com].
Sincerely,
Richard Palmer
President and Chief Executive Officer
Global Clean Energy Holdings, Inc.
This shareholder letter contains forward-looking statements
which involve risks and uncertainties, including without
limitation, those discussed in our reports on Form 10-K, 10-Q and
8-K. We undertake no obligation to publicly update or revise
any forward-looking statements, whether as a result of new
information, future events or otherwise.
CONTACT: Global Clean Energy Holdings, Inc.
Merilee Myers at mmyers@gceholdings.com
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