Gevo, Inc. announced its financial results for the three months ended September 30, 2013 and provided an update on recent corporate highlights.
Highlights:
- Reports EPS of ($0.34) including $1.6 million non-cash gain from the change in fair value of embedded derivatives contained in Gevo's convertible notes
- Ended the quarter with cash and cash equivalents of $25.7 million
- Net cash used of $14.9 million in third quarter of 2013
- Commissioning Luverne on corn mash for fully integrated production
- Producing isobutanol as we work through commissioning in Q4 2013 and plan to start steady production in Q1 2014
- Signed supply agreement with U.S. Navy for bio-jet fuel
- Began commercial licensing business; signed licensing LOI with IGPC Ethanol
- Opened biorefinery for fully renewable paraxylene and started production
Financial Highlights
Revenues for the third quarter of 2013 were $1.1 million compared to $0.6 million in the same period in 2012. Revenues in the third quarter included proceeds from sales of biobased jet fuel to the U.S. Air Force (USAF) of $0.4 million, revenue under Gevo's agreement with The Coca-Cola Company, and revenue from ongoing research agreements.
Research and development expense was $5.5 million in the third quarter of 2013, compared to $5.4 million in the comparable period in 2012. During the third quarter of 2013, Gevo's development efforts were focused on startup operations for the production of isobutanol at its Luverne facility, optimization of specific parts of its isobutanol production technology to further enhance isobutanol production rates, investment in bio-para-xylene processing equipment at the Silsbee demonstration plant and delivery of bio-jet fuel to the USAF.
Research and development expense increased $1.3 million in the third quarter of 2013, when compared to the comparable quarter in 2012, as a result of the Company's investment in bio-para-xylene processing equipment, and delivery of bio-jet fuel to the USAF.
This increase was partially offset by decreases in compensation-related costs, consulting and lab supply costs. Funding used in the development of the bio-para-xylene facility was received from Toray Industries, Inc. under a definitive agreement previously announced in 2012. The bio-jet fuel delivered to the USAF in the third quarter of 2013 was produced at the Silsbee facility.
Selling, general and administrative expense decreased to $6.7 million in the third quarter of 2013 from $13.5 million for the third quarter of 2012. The decrease in selling, general and administrative expense in the third quarter of 2013 reflected lower compensation and operating expenses, including cost saving benefits resulting from actions taken during 2012 to focus Gevo's operations as well as lower litigation-related costs.
