Gevo Reports Second Quarter 2013 Financial Results

Gevo Reports Second Quarter 2013 Financial Results

  *Reports EPS of ($0.35) including $2.0 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 $41 million
  *Net cash used of $13.5 million in second quarter of 2013
  *Resumed commercial production of isobutanol at Luverne, Minn. plant in
    June
  *Expanded production to second production train at Luverne, Minn. plant in
    July
  *Supplied the U.S. Coast Guard with finished fuel blended with 16%
    renewable isobutanol

ENGLEWOOD, Colo., Aug. 6, 2013 (GLOBE NEWSWIRE) -- Gevo, Inc. (Nasdaq:GEVO)
today announced its financial results for the three months ended June 30, 2013
and provided an update on recent corporate highlights.

"Resuming production of isobutanol at our Luverne plant and being able to see
firsthand the processing advantages from the use of our proprietary Gevo
Integrated Fermentation Technology^® (GIFT^®) system are the most significant
events of the second quarter," said Patrick Gruber Ph.D., chief executive
officer of Gevo. "I am pleased to report that our initial single train
production runs have shown that our GIFT^® systems work well and that we can
manage microbial contamination at the plant. We've brought up another
million-liter fermenter and GIFT^® system that serves to further validate our
technology and plant know-how. We plan to bring the final fermenters and
GIFT^® system online at Luverne in the second half of 2013, testing run rates
with all the fermenters and GIFT^® systems, then settling into an ongoing
production mode, and ramping up production and sales over the balance of 2013
and into 2014. The task at hand is to bring the whole plant up and begin
supplying customers on a reliable basis."

Recent Highlights

On June 18, 2013, Gevo announced that it resumed commercial production of
isobutanol at its Luverne, Minn. plant in single production train mode. In its
initial production, the company successfully used its proprietary GIFT^®
system, an important step toward further validation of the company's
technology. Gevo plans to bring all of its fermenters and GIFT^® systems
online in the second half of 2013, testing run rates, then ramping up
production and sales in 2014.

On August 1, 2013, Gevo announced that it had increased commercial production
of isobutanol at its Luverne facility by bringing online a second production
train utilizing its proprietary GIFT^® system. By bringing online a second
million-liter fermenter and GIFT^® system at its facility in Luverne, Gevo has
significantly increased its current isobutanol production capacity following
the initial resumption of production in June 2013.

In June the company supplied the U.S. Coast Guard Research & Development
Center (USCG) through its contractor Science Applications International
Corporation with finished fuel blended with 16% renewable isobutanol. The USCG
R&D Center is using the Gevo-blended fuel as part of a 12-month, long-term
operational study on marine engines that began during June 2013. The testing
is being performed under a Cooperative Research and Development Agreement
(CRADA) between the USCG, Honda, and Mercury and will focus on two of the
Coast Guard's platform boats – 38-foot Special Purpose Craft -Training Boat &
25-foot Response Boat - Small. The USCG completed a 3 month round of testing
in Florida earlier this year under the CRADA with Honda engines running on
fuel supplied by Gevo which contained 16.1% renewable isobutanol.

On July 26, 2013, Judge Robinson of the U.S. District Court for the District
of Delaware granted a motion by Butamax Advanced Biofuels, LLC (Butamax) for
summary judgment of non-infringement of U.S. Patent No. 8,017,375 (the '375
Patent) and U.S. Patent No. 8,017,376 (the '376 Patent), granted in part and
denied in part Butamax's motion for summary judgment of invalidity of the '375
Patent and the '376 Patent, denied a motion by Gevo for summary judgment of
validity of the '376 Patent, and denied Butamax's motion to exclude expert
testimony on the '376 Patent. This court ruling is not material to the
business of the company and is not material to any of the company's other
pending litigation cases with Butamax.

On May 10, 2013, Gevo, announced that it had agreed to temporarily dismiss its
lawsuit against Butamax and E. I. du Pont de Nemours and Company (DuPont) for
infringing one of Gevo's three GIFT^® patents, U.S. Patent No. 8,101,808 (the
'808 Patent). Gevo maintains all of its other lawsuits against Butamax and
DuPont for infringing Gevo's biocatalyst technology. The company decided to
dismiss the '808 Patent lawsuit, for now, in part because Butamax doesn't have
a commercial plant that infringes the '808 Patent and, according to DuPont,
they will not have a commercial plant by the time of the trial.

Financial Highlights

Revenues for the second quarter of 2013 were $1.9 million compared to $7.0
million in the same period in 2012. During the second quarter of 2013, the
company focused on activities that culminated in the resumption of startup
isobutanol production announced in June 2013. The decrease in revenues
resulted from the company ceasing ethanol production at its Luverne facility
in May 2012. Revenue reported in the second quarter of 2013 included proceeds
of $0.9 million from further reduction of Gevo's corn inventory, sales of
biobased jet fuel to the U.S. Air Force (USAF) of $0.3 million, revenue under
its agreement with The Coca-Cola Company, and revenue from ongoing research
agreements. Revenue in the second quarter of 2012 primarily related to the
sale of ethanol and related products.

Research and development expense was $5.8 million in the second quarter of
2013, compared to $4.7 million in the comparable period in 2012. During the
second quarter of 2013, Gevo's development efforts were focused on startup
operations for the production of isobutanol at its Luverne facility as well as
optimization of specific parts of its isobutanol production technology to
further enhance isobutanol production rates. The increase in research and
development expense in the second quarter of 2013, when compared to the
comparable quarter in 2012, also included Gevo's investment in bio-para-xylene
processing equipment at the Silsbee demonstration plant near Houston, Texas,
and delivery of bio-jet fuel to the USAF. 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 second quarter of 2013 was produced at the Silsbee
facility.

Selling, general and administrative expense decreased to $6.3 million in the
second quarter of 2013 from $9.5 million for the second quarter of 2012. The
decrease in selling, general and administrative expense in the second quarter
of 2013 reflected lower compensation expenses, including cost saving benefits
resulting from actions taken during 2012 to focus Gevo's operations.

Interest expense for the second quarter of 2013 was $2.3 million compared to
$0.5 million in the second quarter of 2012. The increase resulted from
interest incurred on the company's 7.5% convertible notes due 2022 which were
issued in July 2012, including $1.1 million for non-cash charges for
amortization of debt discounts recorded at the time of issuance of the
convertible notes.

The company reported a non-cash gain of $2.0 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. Also related
to the convertible debt, the company reported a loss of $1.1 million for the
early extinguishment of convertible debt. During the second quarter of 2013,
holders of $8.9 million of convertible notes opted to convert their note
holdings into shares of Gevo common stock. Upon conversion, these holders
received a total of 2,979,022 shares of common stock, including 1,561,698
shares of common stock issued upon conversion of the convertible notes and an
aggregate of 1,417,324 shares of common stock issued in satisfaction of
make-whole payments. Since the beginning of 2013, holders of $18.1 million of
convertible notes have opted to convert their note holdings into shares of
Gevo common stock receiving an aggregate of 6,137,383 shares upon conversion
and in settlement of make-whole payments. The effective issue price in full
settlement of the convertible notes converted during the six months ended June
3, 2013 was $3.75 per share.

The net loss for the second quarter of 2013 was $15.2 million compared to
$16.2 million for the second quarter of 2012.

Gevo reported cash and cash equivalents on hand of $40.6 million as of June
30, 2013.

Webcast and Conference Call Information

Hosting today's conference call at 4:30 p.m. EDT (2:30 p.m. MDT) 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 June
30, 2013 and provide an update on recent corporate highlights.

To participate in the conference call, please dial 1 (800) 446-1671 (inside
the U.S.) or 1 (847) 413-3362 (outside the U.S.) and reference the access code
35263353. The presentation will be available via a live webcast at:
http://edge.media-server.com/m/p/mzm54h79/lan/en.

A replay of the call will be available two hours after the conference call
ends on August 6, 2013 until Midnight EDT on September 5, 2013. To access the
replay, please dial 1-888-843-7419 (inside the U.S.) or 1-630-652-3042
(outside the U.S.) and reference the access code 35263353#. 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 bio-refineries to make isobutanol. This versatile chemical
can be directly integrated into existing chemical and fuel products to deliver
environmental and economic benefits. Gevo has executed initial
commercial-scale production runs at its isobutanol facility in Luverne, Minn.,
constructed in conjunction with ICM, a leading provider of proprietary ethanol
process technology, and has a marquee list of partners including The Coca-Cola
Company, Sasol Chemical Industries, and LANXESS, Inc., an affiliate of LANXESS
Corporation, among others. Gevo is committed to a sustainable bio-based
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, 2012,
as amended, and in subsequent reports on Form 8-K and other filings made with
the SEC 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     Six Months Ended
                              June 30,                June 30,
                              2013        2012        2013        2012
Revenue and cost of goods sold                                  
Ethanol sales and related      $--      $5,650    $--      $19,908
products, net
Grant revenue, research and                                     
development program revenue    1,859      1,377      5,402      1,991
and corn sales
Total revenues                1,859      7,027      5,402      21,899
                                                               
Cost of goods sold             3,616      8,510      8,119      23,520
                                                               
Gross loss                     (1,757)    (1,483)    (2,717)    (1,621)
                                                               
Operating expenses                                              
Research and development       5,828      4,723      10,804     9,678
Selling, general and           6,279      9,540      13,229     22,667
administrative
Total operating expenses      12,107     14,263     24,033     32,345
                                                               
Loss from operations           (13,864)   (15,746)   (26,750)   (33,966)
                                                               
Other income (expense)                                          
Interest expense              (2,312)    (450)      (5,588)    (1,537)
Gain from change in fair value 2,023      --         693        --
of embedded derivative
Loss on extinguishment of debt (1,112)    --         (2,038)    --
Other income                  43         19         91         19
Total other expense            (1,358)    (431)      (6,842)    (1,518)
                                                               
Net loss                       $(15,222) $(16,177) $(33,592) $(35,484)
                                                               
Net loss per share                                              
attributable to Gevo, Inc.
common stockholders - basic    $(0.35)   $(0.62)   $(0.80)   $(1.35)
and diluted
Weighted-average number of                                      
common shares
outstanding - basic and        43,371,992 26,242,940 42,191,018 26,299,746
diluted

                                                           
Gevo, Inc.
Condensed Consolidated Balance Sheet Information
(Unaudited, in thousands)
                                                           
                                              June 30, 2013 December 31, 2012
Assets                                                      
Current assets:                                             
Cash and cash equivalents                      $40,588     $66,744
Accounts receivable                            498          698
Inventories                                    3,431        6,659
Prepaid expenses and other current assets      1,529        1,779
Total current assets                           46,046       75,880
                                                           
Property, plant and equipment, net             77,994       77,093
Deposits and other assets                      2,439        3,138
Total assets                                   $126,479    $156,111
                                                           
Liabilities                                                 
Current liabilities:                                        
Accounts payable, accrued liabilities and      $10,216     $8,256
other current liabilities
Current portion of secured debt, net           10,063       8,513
Total current liabilities                      20,279       16,769
Long-term portion secured debt, net            10,217       15,445
Convertible notes, net                         15,929       25,554
Other long-term liabilities                    413          512
Total liabilities                              46,838       58,280
                                                           
Total stockholders' equity                     79,641       97,831
Total liabilities and stockholders' equity     $126,479    $156,111

                                                               
Gevo, Inc.
Condensed Consolidated Cash Flow Information
(Unaudited, in thousands)
                                                               
                              Three Months Ended     Six Months Ended
                              June 30,                June 30,
                              2013        2012        2013        2012
Operating Activities                                            
Net loss                       $(15,222) $(16,177) $(33,592) $(35,484)
Adjustments to reconcile net                                    
loss to net cash
used in operating activities:                                   
Non-cash expenses              2,912      3,042      7,003      8,141
Gain from change in fair value                                  
of
embedded derivative            (2,023)    --         (693)      --
Loss on extinguishment of debt 1,112      --         2,038      --
Changes from working capital   3,040      5,605      6,057      2,916
Net cash used in operating     (10,181)   (7,530)    (19,187)   (24,427)
activities
                                                               
Investing Activities                                            
Acquisitions of property,                                       
plant
and equipment, net             (761)      (26,457)   (2,758)    (34,502)
Other                         --         (598)      --         (647)
Net cash used in investing     (761)      (27,055)   (2,758)    (35,149)
activities
                                                               
Financing Activities                                            
Proceeds from issuance of      --         --         --         5,000
secured debt, net
Proceeds from issuance of      9          525        9          664
common stock, net
Payments on secured debt       (2,502)    (730)      (4,141)    (1,241)
Other financing activates      (79)       (230)      (79)       (470)
Net cash (used in) provided by (2,572)    (435)      (4,211)    3,953
financing activities                                            
                                                               
Net decrease in cash and                                        
and cash equivalents          (13,514)   (35,020)   (26,156)   (55,623)
                                                               
Cash and cash equivalents                                       
Beginning of period            54,102     73,622     66,744     94,225
Ending of period               $40,588   $38,602   $40,588   $38,602

                                                               
Gevo, Inc.
Non-GAAP Financial Information
(Unaudited, in thousands)
                                                               
                              Three Months Ended     Six Months Ended
                              June 30,                June 30,
                              2013        2012        2013        2012
Gevo Development, LLC /                                         
Agri-Energy, LLC
Loss from operations           $(2,960)  $(3,134)  $(5,433)  $(4,143)
Depreciation and amortization  534        528        1,067      1,050
Non-cash stock-based           46         51         50         102
compensation
Non-GAAP loss from operations  $(2,380)  $(2,555)  $(4,316)  $(2,991)
                                                               
Gevo, Inc.                                                      
Loss from operations           $(10,904) $(12,612) $(21,317) $(29,823)
Depreciation and amortization  311        323        627        589
Non-cash stock-based           993        1,290      2,076      5,358
compensation
Non-GAAP loss from operations  $(9,600)  $(10,999) $(18,614) $(23,876)
                                                               
Gevo Consolidated                                               
Loss from operations           $(13,864) $(15,746) $(26,750) $(33,966)
Depreciation and amortization  845        851        1,694      1,639
Non-cash stock-based           1,039      1,341      2,126      5,460
compensation
Non-GAAP loss from operations  $(11,980) $(13,554) $(22,930) $(26,867)

CONTACT: 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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