Gevo Q1 revenues plummet 74% to $0.9mn

15 May '14

2 min read

Gevo, Inc. announced its financial results for the three months ended March 31, 2014 and provided an update on recent corporate highlights.

Highlights:

-Reports EPS of ($0.18)

-Ended the first quarter with cash and cash equivalents of $8.4 million

-Luverne plant commenced Side-by-Side production

-Closed a $25.9 million financing with Whitebox Advisors

-Lufthansa testing Gevo's bio-jet fuel

Financial Highlights

Revenues for the first quarter of 2014 were $0.9 million compared to $3.5 million in the same period in 2013. The decline in revenue during 2014 is the result of recognizing $2.4 million in revenue during the first quarter of 2013 associated with the sale of excess corn inventory.

During the first quarter of 2014, we successfully shipped biobased ATJ to the U.S. Air Force and the U.S. Army and isooctane specialty fuel applications, which generated approximately $0.6 million of revenue in the quarter. We also continued to generate revenue during the 2014 first quarter associated with our ongoing research agreements.

Our cost of goods sold during the three months ended March 31, 2014 increased from the same period in 2013 as we continued to perform startup operation activities during the 2014 period. These startup costs were partially offset by a decrease in cost of goods sold of $2.5 million that was incurred during the first quarter of 2013 associated with the sale of excess corn inventory.

Luverne Update

On May 5th, Gevo successfully started up the Side-by-Side operation at its plant in Luverne, MN, and currently has three of four fermenters actively producing ethanol.

The intent of the Side-by-Side configuration to produce isobutanol and ethanol simultaneously is to:

-facilitate the process optimization of commercial-scale isobutanol production;

-maximize the utilization of the plant to generate cash by utilizing all the fermentation assets,

-demonstrate the simultaneous production of isobutanol and ethanol, for the benefit of potential licensee partners who are interested in augmenting the fermentation capacities of their ethanol plants to co-produce isobutanol.

"The start-up is going well and we are running at a rate of 30,000 gallons per day, and by next week we expect to be at our target rate of more than 40,000 gallons per day. Our target run rate for ethanol is greater than 15 million gallons per year. We also have begun the work to optimize the process for isobutanol production in Side-by-Side mode," said Dr. Gruber.

Click here to view full results.

Gevo

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