Recent Corporate Highlights
- Share repurchases: Gevo began utilizing its previously announced stock repurchase program. Through
May 2, 2024 , we repurchased approximately 5.5 million shares of our common stock for approximately$3.7 million , which leaves approximately$21.3 million available under the stock repurchase program. Under the stock repurchase program, we may repurchase shares from time to time in the open market or through privately negotiated transactions. The timing, volume and nature of future stock repurchases, if any, will be in our sole discretion and will be dependent on market conditions, applicable securities laws, and other factors. - Net-Zero 1 projected spend revised: Our previously projected spend of
$125.0 –$175.0 million on our Net-Zero 1 project (“NZ1”) fromJanuary 2024 until the financial close of NZ1 has been reduced to$90.0 –$125.0 million , as a result of identifying costs that can be incurred during the construction phase when the project is expected to be fully funded. Of that amount, approximately$17.1 million was spent in the first quarter of 2024. The expected timing of financial close remains unchanged, and the timing is not expected to impact the total project spend. Renewable Natural Gas (“RNG”): In the first quarter of 2024, stand-aloneU.S. GAAP loss from operations was$0.2 million for the RNG project, and the project generated a positive, stand-alone non-GAAP cash EBITDA1 of approximately$1.2 million with annualized production of 89.0% of the 400,000 MMBtu per year of RNG capacity.- Verity: In the first quarter of 2024, we continued increasing the customer base at the farm/field level, growing prospects with downstream low-CI fuel consumers and we initiated the first privately sponsored grower program for a biofuel client in the Midwest. In addition, we signed a letter of intent with a provider of heavy-duty vehicle engines to develop carbon-counting solutions to demonstrate the client’s improved environmental performance.
- Ethanol-to-Olefins (“ETO”): We believe ETO will enable drop-in, low-carbon polypropylene, polyethylene and similar chemical products whose market size for low-carbon solutions is
$400.0 –$500.0 billion . We also believe ETO will reduce the capital and operating cost in future alcohol-to-jet SAF production facilities. We achieved the following recent milestones on our ETO technology:- In the first quarter of 2024, we successfully launched an ETO pilot plant at a third party facility in
Crosby, Texas , which has delivered the results required to move to the next phase of scale-up in our agreement with LG Chem, Ltd. - We achieved the second milestone under the joint development agreement with LG Chem, Ltd. in
April 2024 . As a result, we expect to receive$0.8 million in payments under that agreement during the second quarter of 2024.
- In the first quarter of 2024, we successfully launched an ETO pilot plant at a third party facility in
2024 First Quarter Financial Highlights
- Ended the first quarter with cash, cash equivalents and restricted cash of
$340.6 million . - During the first quarter of 2024, we sold 88,967 MMBtu of RNG from our RNG project, or 355,868 MMBtu on an annualized basis, which is approximately 89.0% of our current capacity of 400,000 MMBtu per year. Revenue of
$4.0 million for the first quarter includes RNG sales of$0.2 million and$3.8 million of net proceeds from sales of environmental attributes. - Combined revenue and interest income increased to
$8.6 million for the first quarter. - Loss from operations of
$23.1 million for the first quarter. - Non-GAAP cash EBITDA loss¹ of
$14.5 million for the first quarter. - On a standalone basis, our RNG subsidiary generated
U.S. GAAP loss from operations of$0.2 million , and a positive non-GAAP cash EBITDA¹ of$1.2 million for the first quarter. - Net loss per share of
$0.08 for the first quarter.
__________________________________
¹ Cash EBITDA is a non-GAAP measure calculated by adding back depreciation and amortization and non-cash stock-based compensation to GAAP loss from operations. A reconciliation of cash EBITDA to GAAP loss from operations is provided in the financial statement tables following this release.
Management Comment
Commenting on the first quarter of 2024 and recent corporate events, Dr.
2024 First Quarter Financial Results
Operating revenue. During the three months ended
Cost of production. Cost of production decreased
Depreciation and amortization. Depreciation and amortization remained consistent during the three months ended
Research and development expense. Research and development expenses increased
General and administrative expense. General and administrative expense increased
Project development costs. Project development costs are primarily related to our Net-Zero Projects and Verity which consist primarily of employee expenses, preliminary engineering costs, and technical consulting costs. Project development costs increased
Facility idling costs. Facility idling costs are related to the care and maintenance of our Luverne Facility. Facility idling costs remained consistent during the three months ended
Loss from operations. The Company’s loss from operations increased by
Interest expense. Interest expense remained flat during the three months ended
Interest and investment income. Interest and investment income increased
Other income (expense), net. Other income (expense), net increased
Webcast and Conference Call Information
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About Gevo
Gevo’s mission is to transform renewable energy and carbon into energy-dense liquid hydrocarbons. These liquid hydrocarbons can be used for drop-in transportation fuels such as gasoline, jet fuel, and diesel fuel, that when burned have potential to yield net-zero greenhouse gas emissions when measured across the full lifecycle of the products. Gevo uses low-carbon renewable resource-based carbohydrates as raw materials and is in an advanced state of developing renewable electricity and renewable natural gas for use in production processes, resulting in low-carbon fuels with substantially reduced carbon intensity (the level of greenhouse gas emissions compared to standard petroleum fossil-based fuels across their lifecycle). Gevo’s products perform as well or better than traditional fossil-based fuels in infrastructure and engines, but with substantially reduced greenhouse gas emissions. In addition to addressing the problems of fuels, Gevo’s technology also enables certain plastics, such as polyester, to be made with more sustainable ingredients. Gevo’s ability to penetrate the growing low-carbon fuels market depends on the price of oil and the value of abating carbon emissions that would otherwise increase greenhouse gas emissions. Gevo believes that it possesses the technology and know-how to convert various carbohydrate feedstocks through a fermentation process into alcohols and then transform the alcohols into renewable fuels and materials, through a combination of its own technology, know-how, engineering, and licensing of technology and engineering from
Gevo believes that Argonne National Laboratory GREET model is the best available standard of scientific based measurement for life cycle inventory or LCI.
Learn more at Gevo’s website: 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 relate to a variety of matters, including, without limitation, any future repurchases of our common stock under the stock repurchase program, the expected spending on and the timing of our NZ1 project, the agreement with LG Chem, the
Non-GAAP Financial Information
This press release contains a financial measure that does not comply with
Consolidated Balance Sheets
(Unaudited, in thousands, except share and per share amounts)
Assets | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 270,642 | $ | 298,349 | ||||
Restricted cash | — | 77,248 | ||||||
Trade accounts receivable, net | 2,488 | 2,623 | ||||||
Inventories | 3,762 | 3,809 | ||||||
Prepaid expenses and other current assets | 5,408 | 4,353 | ||||||
Total current assets | 282,300 | 386,382 | ||||||
Property, plant and equipment, net | 227,674 | 211,563 | ||||||
Restricted cash | 69,913 | — | ||||||
Operating right-of-use assets | 1,295 | 1,324 | ||||||
Finance right-of-use assets | 208 | 210 | ||||||
Intangible assets, net | 6,232 | 6,524 | ||||||
Deposits and other assets | 45,949 | 44,319 | ||||||
Total assets | $ | 633,571 | $ | 650,322 | ||||
Liabilities | ||||||||
Current liabilities | ||||||||
Accounts payable and accrued liabilities | $ | 21,556 | $ | 22,752 | ||||
Operating lease liabilities | 364 | 532 | ||||||
Finance lease liabilities | 25 | 45 | ||||||
Loans payable | 118 | 130 | ||||||
2021 Bonds payable, net | — | 67,967 | ||||||
Total current liabilities | 22,063 | 91,426 | ||||||
2021 Bonds payable, net | 68,155 | — | ||||||
Loans payable | — | 21 | ||||||
Operating lease liabilities | 1,222 | 1,299 | ||||||
Finance lease liabilities | 186 | 187 | ||||||
Total liabilities | 91,626 | 92,933 | ||||||
Stockholders' Equity | ||||||||
Common stock, | 2,396 | 2,405 | ||||||
Additional paid-in capital | 1,280,021 | 1,276,581 | ||||||
Accumulated deficit | (740,472 | ) | (721,597 | ) | ||||
Total stockholders' equity | 541,945 | 557,389 | ||||||
Total liabilities and stockholders' equity | $ | 633,571 | $ | 650,322 | ||||
Consolidated Statements of Operations
(Unaudited, in thousands, except share and per share amounts)
Three Months Ended | ||||||||
2024 | 2023 | |||||||
Total operating revenues | $ | 3,990 | $ | 4,060 | ||||
Operating expenses: | ||||||||
Cost of production | 2,587 | 4,425 | ||||||
Depreciation and amortization | 4,451 | 4,575 | ||||||
Research and development expense | 1,548 | 1,198 | ||||||
General and administrative expense | 12,150 | 10,761 | ||||||
Project development costs | 5,319 | 2,959 | ||||||
Facility idling costs | 1,076 | 999 | ||||||
Total operating expenses | 27,131 | 24,917 | ||||||
Loss from operations | (23,141 | ) | (20,857 | ) | ||||
Other income (expense) | ||||||||
Interest expense | (542 | ) | (539 | ) | ||||
Interest and investment income | 4,593 | 3,784 | ||||||
Other income (expense), net | 215 | (6 | ) | |||||
Total other income, net | 4,266 | 3,239 | ||||||
Net loss | $ | (18,875 | ) | $ | (17,618 | ) | ||
Net loss per share - basic and diluted | $ | (0.08 | ) | $ | (0.07 | ) | ||
Weighted-average number of common shares outstanding - basic and diluted | 240,844,334 | 237,260,681 | ||||||
Consolidated Statements of Comprehensive Loss
(Unaudited, in thousands)
Three Months Ended | ||||||||
2024 | 2023 | |||||||
Net loss | $ | (18,875 | ) | $ | (17,618 | ) | ||
Other comprehensive income (loss): | ||||||||
Unrealized gain (loss) on available-for-sale securities | — | 925 | ||||||
Comprehensive loss | $ | (18,875 | ) | $ | (16,693 | ) | ||
Consolidated Statements of Stockholders’ Equity
(Unaudited, in thousands, except share amounts)
For the Three Months Ended | |||||||||||||||||||||||
Common Stock | Accumulated Other | Accumulated | Stockholders’ | ||||||||||||||||||||
Shares | Amount | Paid-In Capital | Comprehensive Loss | Deficit | Equity | ||||||||||||||||||
Balance, | 240,499,833 | $ | 2,405 | $ | 1,276,581 | $ | — | $ | (721,597 | ) | $ | 557,389 | |||||||||||
Non-cash stock-based compensation | — | — | 4,233 | — | — | 4,233 | |||||||||||||||||
Stock-based awards and related share issuances, net | 1,204,232 | 12 | 583 | — | — | 595 | |||||||||||||||||
Repurchase of common stock | (2,127,661 | ) | (21 | ) | (1,376 | ) | — | — | (1,397 | ) | |||||||||||||
Net loss | — | — | — | — | (18,875 | ) | (18,875 | ) | |||||||||||||||
Balance, | 239,576,404 | $ | 2,396 | $ | 1,280,021 | $ | — | $ | (740,472 | ) | $ | 541,945 | |||||||||||
Balance, | 237,166,625 | $ | 2,372 | $ | 1,259,527 | $ | (1,040 | ) | $ | (655,382 | ) | $ | 605,477 | ||||||||||
Non-cash stock-based compensation | — | — | 4,677 | — | — | 4,677 | |||||||||||||||||
Stock-based awards and related share issuances, net | 94,539 | 1 | (1 | ) | — | — | — | ||||||||||||||||
Other comprehensive income | — | — | — | 925 | — | 925 | |||||||||||||||||
Net loss | — | — | — | — | (17,618 | ) | (17,618 | ) | |||||||||||||||
Balance, | 237,261,164 | $ | 2,373 | $ | 1,264,203 | $ | (115 | ) | $ | (673,000 | ) | $ | 593,461 | ||||||||||
Consolidated Statements of Cash Flows
(Unaudited, in thousands)
Three Months Ended | ||||||||
2024 | 2023 | |||||||
Operating Activities | ||||||||
Net loss | $ | (18,875 | ) | $ | (17,618 | ) | ||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
Stock-based compensation | 4,233 | 4,677 | ||||||
Depreciation and amortization | 4,451 | 4,575 | ||||||
Amortization of marketable securities discount | — | (114 | ) | |||||
Other noncash expense | 656 | 234 | ||||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | 135 | (429 | ) | |||||
Inventories | (55 | ) | 1,650 | |||||
Prepaid expenses and other current assets, deposits and other assets | (3,297 | ) | (2,193 | ) | ||||
Accounts payable, accrued expenses and non-current liabilities | (3,326 | ) | 446 | |||||
Net cash used in operating activities | (16,078 | ) | (8,772 | ) | ||||
Investing Activities | ||||||||
Acquisitions of property, plant and equipment | (17,512 | ) | (22,093 | ) | ||||
Proceeds from maturity of marketable securities | — | 135,550 | ||||||
Proceeds from sale of property, plant and equipment | — | 67 | ||||||
Net cash (used in) provided by investing activities | (17,512 | ) | 113,524 | |||||
Financing Activities | ||||||||
Payment of loans payable | (32 | ) | (39 | ) | ||||
Payment of finance lease liabilities | (23 | ) | (23 | ) | ||||
Repurchases of common stock | (1,397 | ) | — | |||||
Net cash used in by financing activities | (1,452 | ) | (62 | ) | ||||
Net (decrease) increase in cash and cash equivalents | (35,042 | ) | 104,690 | |||||
Cash, cash equivalents and restricted cash at beginning of period | 375,597 | 315,376 | ||||||
Cash, cash equivalents and restricted cash at end of period | $ | 340,555 | $ | 420,066 | ||||
Reconciliation of GAAP to Non-GAAP Financial Information
(Unaudited, in thousands)
Three Months Ended | ||||||||
2024 | 2023 | |||||||
Non-GAAP Cash EBITDA (Consolidated): | ||||||||
Loss from operations | $ | (23,141 | ) | $ | (20,857 | ) | ||
Depreciation and amortization | 4,451 | 4,575 | ||||||
Stock-based compensation | 4,233 | 4,677 | ||||||
Non-GAAP cash EBITDA (loss) (Consolidated) | $ | (14,457 | ) | $ | (11,605 | ) |
Three Months Ended | ||||||||
2024 | 2023 | |||||||
Non-GAAP Cash EBITDA (Gevo NW Iowa RNG): | ||||||||
Loss from operations | $ | (224 | ) | $ | (2,211 | ) | ||
Depreciation and amortization | 1,374 | 1,509 | ||||||
Stock-based compensation | 34 | 29 | ||||||
Non-GAAP cash EBITDA (loss) (Gevo NW Iowa RNG) | $ | 1,184 | $ | (673 | ) | |||
Investor Relations Contact
+1 303-883-1114
IR@gevo.com
Source:
2024 GlobeNewswire, Inc., source