Gevo, Inc. : Gevo Reports Fourth Quarter 2012 Financial Results

       Gevo, Inc. : Gevo Reports Fourth Quarter 2012 Financial Results

  *Reports EPS of ($0.34) including $2 million non-cash gain from the change
    in fair value of embedded derivatives contained in Gevo's convertible
    notes

  *Ended the year with cash and cash equivalents of $67 million

  *Reiterates expectation to produce isobutanol in 2013

  *Luverne, Minn. plant remains temporarily idle while being readied to
    restart after completion of process technology optimization

  *U.S. Court of Appeals for the Federal Circuit affirmed District Court's
    favorable decision

  *Received four recent patents including two patents related to the
    production of biojet fuels 

ENGLEWOOD, Colo. - March 5, 2013 - Gevo, Inc. (NASDAQ: GEVO) today announced
its financial results for the three months ended December 31, 2012.

"We are pleased with the progress we've made optimizing our technology over
the past three months and remain on-track to restart isobutanol production at
Luverne this year," said Patrick Gruber Ph.D., Chief Executive Officer of
Gevo. "After assuming the additional role of Chief Technology Officer, Chris
Ryan has done an exceptional job orienting our technology team towards
achieving our goals of producing isobutanol consistently and at commercially
viable rates. Our market development work with strategic customers such as
Coca-Cola, Toray, the United States Air Force, and Sasol is moving forward and
we look forward to turning this work into revenues as soon as possible."

Recent Highlights

Subsequent to the end of the year, the U.S. Patent and Trademark Office
(USPTO) awarded Gevo U.S. Patent No. 8,373,012 and U.S. Patent No. 8,378,160.
Both patents are related to methods of making renewable hydrocarbons and/or
jet blendstock from biomass-derived isobutanol, which is subsequently
converted into hydrocarbons that meet or exceed the requirements of ASTM for
diesel fuels, gasoline, and various aviation fuels.

In November, the USPTO awarded Gevo U.S. Patent No. 8,304,588, which covers
methods for the production of isobutanol in retrofit ethanol production
plants. The claimed technology addresses the full scope of isobutanol
production in modified, retrofit ethanol plants, from pretreatment and
fermentation to separation and purification.

These patents are in addition to U.S. Patent No. 8,273,565 and U.S. Patent No.
8,283,505, awarded in September and October and discussed in Gevo's third
quarter 2012 press release.

In November, the U.S. Court of Appeals for the Federal Circuit (Appeals Court)
upheld the U.S. District Court for the District of Delaware's decision in
which the lower court denied a motion for a preliminary injunction sought by
Butamax Advanced Biofuels LLC (Butamax). The Appeals Court affirmed the lower
court's ruling which stated that, "Gevo, Inc. raised a substantial question of
validity concerning [Butamax's] asserted patent (the '889 Patent). and
plaintiff (Butamax) does not hold a valid patent, nor would defendant (Gevo)
infringe if it did".

In January 2013, Gevo announced a stock repurchase program that authorizes the
company to repurchase up to $15,000,000 of its common stock over a one-year
period.

Financial Highlights

Revenues for the fourth quarter of 2012 were $1.9 million compared to $17.2
million in the same period in 2011. The decrease in revenues resulted from the
company suspending ethanol production at its Luverne, Minn. facility in May
2012. During the fourth quarter of 2012, the company concluded initial startup
operations for the production of isobutanol at its Luverne facility. As
previously announced, following completion of startup operations, production
was temporarily paused to allow the company to focus on optimizing specific
parts of its technology to further enhance isobutanol production rates.
Production from startup operations will be directed to initial sales, customer
testing, and future conversion into jet fuel for the U.S. Air Force (USAF).

Following the decision to pause isobutanol production, the company considered
reverting to ethanol production during the fourth quarter of 2012 but
determined that the economics of producing and marketing ethanol at that time
would have generated greater negative cash flows compared to maintaining the
facility at idle. Consequently, the company made the decision to idle the
facility and not to revert to ethanol production during the quarter. Revenue
reported in the fourth quarter of 2012 included sales from reduction of Gevo's
corn inventory, revenue under its agreement with The Coca-Cola Company, sales
of biobased jet fuel to the USAF, and from ongoing research agreements.
Revenue in the fourth quarter of 2011 primarily related to the sale of ethanol
and related products.

Research and development expense decreased to $4.3 million in the fourth
quarter of 2012 from $5.9 million for the same period in 2011. In the fourth
quarter of 2012, the focus of Gevo's development efforts were startup
operations for the production of isobutanol at its Luverne facility and
optimization of specific parts of its isobutanol production technology to
further enhance isobutanol production rates. The decrease in research and
development spending in the fourth quarter of 2012 compared to the fourth
quarter of 2011 was due primarily to work performed at the South Hampton
Resources, Inc. facility near Houston, Texas developing a hydrocarbon pilot
plant facility which was completed in the fourth quarter of 2011. There was no
comparable expense in the fourth quarter of 2012. 

Selling, general and administrative and other expense decreased to $7.8
million in the fourth quarter of 2012 from $8.9 million for the fourth quarter
of 2011. The decrease in selling, general and administrative and other expense
in the fourth quarter of 2012 primarily reflected lower compensation expenses,
including the decision of Gevo's executive officers to waive their 2012 bonus
payments. The decrease in compensation expenses was partially offset by
increased legal-related expenses, including expenses in support of Gevo's
ongoing litigation with Butamax.

Interest expense for the fourth quarter of 2012 was $2.2 million compared to
$1.0 million in the fourth quarter of 2011. The increase resulted from
interest incurred on the company's $45 million of 7.5% convertible notes due
2022 which were issued in July 2012. The company also reported a non-cash gain
of $2 million related to changes in the fair value of embedded derivatives
contained in the convertible notes. These derivatives result from the rights
that holders of the convertible notes have upon conversion, and under certain
circumstances, will result in non-cash amounts being recorded in the company's
statement of operations in each reporting period while the convertible notes
remain outstanding.

The net loss for the fourth quarter of 2012 was $13.2 million compared to
$14.2 million for the fourth quarter of 2011.

Gevo reported cash and cash equivalents on hand of $66.7 million as of
December 31, 2012.

Subsequent to the end of the year, certain holders of the company's
convertible notes elected to convert approximately $4.2 million of those
convertible notes into common shares of the company, in accordance with the
terms of the convertible notes, thereby reducing the principal amount of
convertible debt outstanding at March 4, 2013 to $40.8 million. In total,
through March 4, 2013, Gevo has issued 1,453,698 shares of common stock at an
effective issue price of $3.68 per share in settlement of the conversions of
the convertible notes and related coupon make-whole payments.

Webcast and Conference Call Information

Hosting today's conference call at 4:30 p.m. EST (2:30 p.m. MST) will be Dr.
Gruber, Chief Executive Officer, and Mark Smith, Chief Financial Officer. They
will review the company's financial results for the three months ended
December 31, 2012 and provide an update on recent corporate highlights. 

To participate in the conference call, please dial 1-800-265-0241 (inside the
U.S.) or 1-617-847-8704 (outside the U.S.) and reference the access code
53437085. The presentation will be available via a live webcast at:

http://www.media-server.com/m/acs/c6c4c9f5cd1aa21f964665ca48e98b4f

A replay of the call will be available two hours after the conference call
ends on March 5, 2013 until Midnight EDT on April 5, 2013. To access the
replay, please dial 1-888-286-8010 (inside the U.S.) or 1-617-801-6888
(outside the US) and reference the access code 31702414. The archived webcast
will be available for 30 days in the Investor Relations section of Gevo's
website at www.gevo.com.

About Gevo

Gevo is a leading renewable chemicals and next-generation biofuels company.
Gevo's patent-protected, capital-light business model converts existing
ethanol plants into biorefineries to make isobutanol. This versatile chemical
can be directly integrated into existing chemical and fuel products to deliver
environmental and economic benefits. Gevo started up its first commercial
isobutanol facility in Luverne, Minn. and has a marquee list of partners
including Coca-Cola, Sasol, and LANXESS, among others. Gevo is committed to a
sustainable biobased economy that meets society's needs for plentiful food and
clean air and water. For more information, visit www.gevo.com.

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 include statements that are not
purely statements of historical fact, and can sometimes be identified by our
use of terms such as "intend," "expect," "plan," "estimate," "future,"
"strive" and similar words. 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 the company undertakes no obligation to update or revise these statements,
whether as a result of new information, future events or otherwise. Although
the company 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, 2011, as amended, and in subsequent reports on
Forms 10-Q and 8-K and other filings made with the Securities and Exchange
Commission by Gevo.

Non-GAAP Financial Information

Consolidated financial information has been presented in accordance with GAAP
as well as on a non-GAAP basis. On a non-GAAP basis, financial measures
exclude non-cash items such as stock-based compensation. Management believes
that it is useful to supplement 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.

                                  #  #  #

Gevo, Inc.
Consolidated Statements of Operations Information
(Unaudited, in thousands)

                                                      Three Months Ended
                     Year Ended December 31,                December 31,
                     2012           2011            2012             2011
Revenue and cost                                                 
of goods sold
Ethanol sales    $ 19,908   $ 63,742   $    $ 16,994
and related                                        -
products, net
Grant revenue,                                                   
research and
development
program revenue   4,477   807  1,924   235
and other
revenue
 Total  24,385   64,549   1,924   17,229
revenues
                                                                
Cost of goods     32,410   60,588   2,811   15,526
sold
                                                                
Gross (loss)      (8,025)  3,961         1,703
margin                                            (887)
                                                                
Operating                                                        
expenses
Research and      19,431   19,753   4,352   5,938
development
Selling, general  43,981   28,901   7,806   8,889
and
administrative
and other
 Total  63,412   48,654   12,158   14,827
operating
expenses
                                                                
Loss from         (71,437)   (44,693)   (13,045)   (13,124)
operations
                                                                
Other income                                                     
(expense)
Interest          (6,338)  (3,577)  (2,177)  (1,036)
expense
Gain from change  17,000    2,000  
in fair value of                  -                                 -
embedded
derivatives
Other income             
                 63               56               45               -
Total other       10,725   (3,521)        (1,036)
income (expense)                                   (132)
                                                                
Net loss          (60,712)   (48,214)   (13,177)   (14,160)
                                                                
Deemed dividend                                                  
- amortization
of beneficial
conversion                                                       
feature on
Series D-1
preferred stock    (1,094)  
                 -                                 -                -
                                                                
Net loss                                                         
attributable to
Gevo, Inc.
common           $ (60,712)   $ (49,308)   $ (13,177)   $ (14,160)
stockholders
                                                                
Net loss per                                                     
share
attributable to
Gevo, Inc.
common           $ (1.86) $ (2.15) $ (0.34) $ (0.54)
stockholders -
basic and
diluted
Weighted-average                                                 
number of common
shares
outstanding -     32,619,091      22,909,916      39,300,054      26,005,744
basic and
diluted

Gevo, Inc.
Condensed Consolidated Balance Sheet Information
(Unaudited, in thousands)

                                         December31,
                             2012                       2011
Assets                                         
Current assets:                                
Cash and cash       $       $ 94,225
equivalents          66,744
Accounts               2,938
receivable           698
Inventories               3,814
                     6,659
Prepaid expenses          1,757
and other current    1,779
assets
Total current              102,734
assets               75,880
                                              
Property, plant            28,777
and equipment, net   77,093
Deposits and other        1,519
assets               3,138
Total assets        $ 156,111 $ 133,030
                                              
Liabilities                                    
Current                                        
liabilities:
Accounts payable,    $     $ 12,626
accrued liabilities  8,256
and other current
liabilities
Current portion of        3,491
secured debt, net    8,513
Total current              16,117
liabilities          16,769
Long-term portion          24,752
secured debt, net    15,445
Convertible notes,        
net                  25,554                      -
Other long-term        24
liabilities          512
Total liabilities          40,893
                     58,280
                                              
Total                      92,137
stockholders'        97,831
equity
Total liabilities   $ 156,111 $ 133,030
and stockholders'
equity

Gevo, Inc.
Condensed Consolidated Cash Flow Information
(Unaudited, in thousands)

                                                 Three Months Ended
                  Year Ended December 31,              December 31,
                 2012          2011            2012            2011
Operating                                                   
Activities
Net loss        $      $ (48,214)    $ (13,177)   $ (14,160)
                (60,712)
Adjustments to                                              
reconcile net
loss to net
cash
used in                                                     
operating
activities:
Non-cash             12,536     2,734   5,016
expenses        13,554
Gain from                                                   
change in fair
value of
embedded                (2,000) 
derivatives     (17,000)    -                                  -
Changes from         2,067    (8,303)  1,293
working capital (3,900)
Net cash used         (33,611)    (20,746)   (7,851)
in operating    (68,058)
activities
                                                           
Investing                                                   
Activities
Acquisitions of                                             
property, plant
and equipment         (8,015)    (1,496)  (4,435)
                (52,432)
Other            (18)  
                (607)                          -               (58)
Net cash used         (8,033)    (1,496)  (4,493)
in investing    (53,039)
activities
                                                           
Financing                                                   
Activities
Proceeds from      10,000      10,000
issuance of     5,000                          -
secured debt
Proceeds from                                               
issuance of
convertible
debt,
net of                 
discounts       42,300      -                  -               -
Proceeds from        114,704      
issuance of     61,875                         -               -
common stock
Payments on           (1,897)    (3,139)  (495)
secured debt    (10,406)
Other financing      (2,212)    128  (541)
activates       (5,153)
Net cash             120,595      (3,011)  8,964
provided by     93,616
(used in)
financing                                                   
activities
                                                           
Net (decrease)                                              
increase in
cash and
and cash              78,951     (25,253)   (3,380)
equivalents    (27,481)
                                                           
Cash and cash                                               
equivalents
Beginning of         15,274     91,997    97,605
period          94,225
Ending of       $     $ 94,225     $ 66,744   $ 94,225
period          66,744

Gevo, Inc.
Non-GAAP Financial Information
(Unaudited, in thousands)

                                               Three Months Ended
               Year Ended December 31,               December 31,
                2012         2011           2012              2011
Gevo                                                      
Development,
LLC /
Agri-Energy,
LLC
(Loss) income $        $      $        $
from          (12,600)      1,462          (2,056)           1,181
operations
Depreciation              
and           2,113         2,061          532               518
amortization
Non-cash         
stock-based   216           85             52                45
compensation
Non-GAAP      $        $      $        $
(loss) income (10,271)      3,608          (1,472)           1,744
from
operations
                                                         
Gevo, Inc.                                                
Loss from     $        $         $         $
operations    (58,837)      (46,155)       (10,989)          (14,305)
Depreciation              
and           1,200         2,539          244               710
amortization
Non-cash                  
stock-based   7,763         6,741          937               1,884
compensation
Non-GAAP loss $        $         $        $
from          (49,874)      (36,875)       (9,808)           (11,711)
operations
                                                         
Gevo                                                      
Consolidated
Loss from     $        $         $         $
operations    (71,437)      (44,693)       (13,045)          (13,124)
Depreciation              
and           3,313         4,600          776               1,228
amortization
Non-cash                  
stock-based   7,979         6,826          989               1,929
compensation
Non-GAAP loss $        $         $         $
from          (60,145)      (33,267)       (11,280)          (9,967)
operations

                                     ###

Media Contact:
Steve Halsey
Gibbs & Soell for Gevo
T: (212) 697-2600
shalsey@gibbs-soell.com

Investor Contact:
Chelsea DeLong
PR & Marketing Coordinator
T: (303) 858-8358
cdelong@gevo.com

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