Recent Corporate Highlights
- Net-Zero 1 and 2024 Expected Uses of Cash: We ended the fourth quarter with cash, cash equivalents, and restricted cash of
$375.6 million . The total that Gevo expects to have spent to achieve financial close is$236.0 million -$238.0 million (excluding certain internal cost allocations), of which only$125.0 million -$175.0 million is remaining. The expected spend on Net-Zero 1 constitutes the majority of growth and project related uses of cash expected in 2024.
Renewable Natural Gas (“RNG”): In the fourth quarter, our RNG project generated positive, stand-alone non-GAAP cash EBITDA1 of approximately$1.3 million and annualized production of 91% of the 400,000 MMBtu per year of RNG capacity. As previously announced inJanuary 2024 , RNG stand-alone non-GAAP cash EBITDA is expected to increase to$12.0 –$16.0 million on an annualized basis upon receipt of our permanent California Air Resource Board (“CARB”) carbon intensity (“CI”) score, which is expected in 2024. RNG stand-alone non-GAAP cash EBITDA could further increase up to$30.0 –$38.0 million if California Low Carbon Fuel Standard (“LCFS”) prices recover to$200 per metric ton, and up to$50.0 –$60.0 million in aggregate upon receipt of the biogas Production Tax Credit (“PTC”) during 2025 – 2027. There can be no guarantee that LCFS prices will increase or United States Treasury rules, if issued, will result in the amounts expected.
- Verity: In the third quarter of 2023, our Verity Tracking platform went live with farmers in
South Dakota andMinnesota . Our tracked ethanol plant customers totaled approximately 2% ofthe United States ethanol industry by volume, the world’s largest ethanol market. Based on a market and business analysis by a well-known global consulting firm, the initial target market for Verity inthe United States is estimated to be approximately$1.5 -$3.0 billion for reducing and tracking the reduction of carbon intensity through the value chain, from field to fuel. Verity is a capital-light, fee-based software-as-a-service (“SaaS”) business that enables the accurate tracking of carbon intensity end-to-end across value chains, helping customers unlock and maximize value derived from carbon abatement.
- Business Update: On
January 24, 2024 , Gevo provided an update to its corporate investor presentation and a business update regarding Net Zero 1 project development, RNG, Verity and Ethanol-to-Olefins (“ETO”) technology development. Additional details can be found in the announcement datedJanuary 24, 2024 and in the corporate investor presentation available on our website.
2023 Fourth Quarter Financial Highlights
- Ended the fourth quarter with cash, cash equivalents, and restricted cash of
$375.6 million .
- During the fourth quarter of 2023, we sold 90,666 MMBtu of RNG from our RNG project, or 362,664 MMBtu on an annualized basis, which is approximately 91% of our current capacity of 400,000 MMBtu per year. Revenue of
$4.4 million for the fourth quarter includes RNG sales of$0.2 million and$4.2 million of net proceeds from sales of environmental attributes.
- Combined revenue and interest income increased to
$9.4 million for the fourth quarter.
- Loss from operations of
$21.3 million for the fourth quarter.
- Non-GAAP cash EBITDA loss1 of
$12.5 million for the fourth quarter.
- Gevo NW Iowa RNG generated positive, stand-alone non-GAAP cash EBITDA1 of
$1.3 million for the fourth quarter.
- Net loss per share of
$0.08 for the fourth 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 fourth quarter of 2023 and recent corporate events, Dr.
We are pleased that our RNG business achieved strong utilization last quarter, including the capacity expansion we completed last year. We see significant embedded upside from that business to Gevo from a cash flow perspective, simply by continuing to operate it at the expanded capacity and delivering meaningful carbon abatement to our customers. We look forward to announcing Verity’s first revenue this year. And we look forward to working with our partner, LG Chem, on commercializing our Ethanol-to-Olefins (“ETO”) technology, which started pilot-scale production, to deliver ultra-low carbon plastics and materials to the world.”
Full Year 2023 Financial Results
Operating revenue. During the year ended
Cost of production. Cost of production increased
Depreciation and amortization. Depreciation and amortization increased
Research and development expense. Research and development expense decreased
General and administrative expense. General and administrative expense increased
Project development costs. Project development costs are related to our future 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 care and maintenance of our Luverne Facility. Facility idling costs decreased by
Impairment loss. No impairment loss was recorded during the year ended
Loss on disposal of assets. The Company did not record a loss on disposal of assets for the year ended
Loss from operations. The Company’s loss from operations decreased by
Interest expense. Interest expense increased by
Interest and investment income. Interest and investment income increased
Other income. Other income decreased
Webcast and Conference Call Information
Hosting today’s conference call at
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A webcast replay will be available two hours after the conference call ends on
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, the timing of our NZ1 project, the agreement with LG Chem, the selection of an EPC contractor, timing regarding an EPC contract and its terms, the
Non-GAAP Financial Information
This press release contains a financial measure that does not comply with
Consolidated Balance Sheets
(In thousands, except share and per share amounts)
Assets | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 298,349 | $ | 237,125 | ||||
Marketable securities | — | 167,408 | ||||||
Restricted cash | 77,248 | 1,032 | ||||||
Trade accounts receivable, net | 2,623 | 476 | ||||||
Inventories | 3,809 | 6,347 | ||||||
Prepaid expenses and other current assets | 4,353 | 3,034 | ||||||
Total current assets | 386,382 | 415,422 | ||||||
Property, plant and equipment, net | 211,563 | 185,174 | ||||||
Restricted cash | — | 77,219 | ||||||
Operating right-of-use assets | 1,324 | 1,331 | ||||||
Finance right-of-use assets | 210 | 219 | ||||||
Intangible assets, net | 6,524 | 7,691 | ||||||
Deposits and other assets | 44,319 | 13,692 | ||||||
Total assets | $ | 650,322 | $ | 700,748 | ||||
Liabilities | ||||||||
Current liabilities | ||||||||
Accounts payable and accrued liabilities | $ | 22,752 | $ | 24,760 | ||||
Operating lease liabilities | 532 | 438 | ||||||
Finance lease liabilities | 45 | 79 | ||||||
Loans payable | 130 | 159 | ||||||
2021 Bonds payable, net | 67,967 | — | ||||||
Total current liabilities | 91,426 | 25,436 | ||||||
2021 Bonds payable, net | — | 67,223 | ||||||
Loans payable | 21 | 159 | ||||||
Operating lease liabilities | 1,299 | 1,450 | ||||||
Finance lease liabilities | 187 | 183 | ||||||
Other liabilities | — | 820 | ||||||
Total liabilities | 92,933 | 95,271 | ||||||
Commitments and Contingencies | ||||||||
Stockholders' Equity | ||||||||
Common stock, | 2,405 | 2,372 | ||||||
Additional paid-in capital | 1,276,581 | 1,259,527 | ||||||
Accumulated other comprehensive loss | — | (1,040 | ) | |||||
Accumulated deficit | (721,597 | ) | (655,382 | ) | ||||
Total stockholders' equity | 557,389 | 605,477 | ||||||
Total liabilities and stockholders' equity | $ | 650,322 | $ | 700,748 | ||||
Consolidated Statements of Operations
(In thousands, except share and per share amounts)
Year Ended | ||||||||
2023 | 2022 | |||||||
Total operating revenues | $ | 17,200 | $ | 1,175 | ||||
Operating expenses: | ||||||||
Cost of production | 11,991 | 8,698 | ||||||
Depreciation and amortization | 19,007 | 7,887 | ||||||
Research and development expense | 6,637 | 7,427 | ||||||
General and administrative expense | 42,628 | 39,941 | ||||||
Project development costs | 14,732 | 10,061 | ||||||
Facility idling costs | 4,040 | 4,599 | ||||||
Impairment loss | — | 24,749 | ||||||
Loss on disposal of assets | — | 499 | ||||||
Total operating expenses | 99,035 | 103,861 | ||||||
Loss from operations | (81,835 | ) | (102,686 | ) | ||||
Other income (expense) | ||||||||
Interest expense | (2,161 | ) | (1,167 | ) | ||||
Interest and investment income | 19,090 | 3,481 | ||||||
Other income (expense), net | (1,309 | ) | 2,365 | |||||
Total other income, net | 15,620 | 4,679 | ||||||
Net loss | $ | (66,215 | ) | $ | (98,007 | ) | ||
Net loss per share - basic and diluted | $ | (0.28 | ) | $ | (0.44 | ) | ||
Weighted-average number of common shares outstanding - basic and diluted | 238,687,621 | 221,537,262 | ||||||
Consolidated Statements of Comprehensive Loss
(In thousands)
Year Ended | ||||||||
2023 | 2022 | |||||||
Net loss | $ | (66,215 | ) | $ | (98,007 | ) | ||
Other comprehensive income (loss): | ||||||||
Unrealized gain (loss) on available-for-sale securities | 1,040 | (426 | ) | |||||
Comprehensive loss | $ | (65,175 | ) | $ | (98,433 | ) | ||
Consolidated Statements of Stockholders’ Equity
(In thousands, except share amounts)
For the Year Ended | |||||||||||||||||||||
Common Stock | Accumulated Other | Accumulated | Stockholders’ | ||||||||||||||||||
Shares | Amount | Paid-In Capital | Comprehensive Loss | Deficit | Equity | ||||||||||||||||
Balance, | 237,166,625 | $ | 2,372 | $ | 1,259,527 | $ | (1,040 | ) | $ | (655,382 | ) | $ | 605,477 | ||||||||
Non-cash stock-based compensation | — | — | 17,087 | — | — | 17,087 | |||||||||||||||
Stock-based awards and related share issuances, net | 3,333,208 | 33 | (33 | ) | — | — | — | ||||||||||||||
Other comprehensive income | — | — | — | 1,040 | — | 1,040 | |||||||||||||||
Net loss | — | — | — | — | (66,215 | ) | (66,215 | ) | |||||||||||||
Balance, | 240,499,833 | $ | 2,405 | $ | 1,276,581 | $ | — | $ | (721,597 | ) | $ | 557,389 | |||||||||
Balance, | 201,988,662 | $ | 2,020 | $ | 1,103,224 | $ | (614 | ) | $ | (557,375 | ) | $ | 547,255 | ||||||||
Issuance of common stock and common stock warrants, net of issuance costs | 33,333,336 | 333 | 138,675 | — | — | 139,008 | |||||||||||||||
Issuance of common stock upon exercise of warrants | 4,677 | — | 3 | — | — | 3 | |||||||||||||||
Non-cash stock-based compensation | — | — | 17,419 | — | — | 17,419 | |||||||||||||||
Stock-based awards and related share issuances, net | 1,839,950 | 19 | 206 | — | — | 225 | |||||||||||||||
Other comprehensive loss | — | — | — | (426 | ) | — | (426 | ) | |||||||||||||
Net loss | — | — | — | — | (98,007 | ) | (98,007 | ) | |||||||||||||
Balance, | 237,166,625 | $ | 2,372 | $ | 1,259,527 | $ | (1,040 | ) | $ | (655,382 | ) | $ | 605,477 | ||||||||
Consolidated Statements of Cash Flows
(In thousands)
Year Ended | ||||||||
2023 | 2022 | |||||||
Operating Activities | ||||||||
Net loss | $ | (66,215 | ) | $ | (98,007 | ) | ||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
Impairment loss | — | 24,749 | ||||||
Loss on disposal of assets | — | 499 | ||||||
Stock-based compensation | 17,087 | 17,419 | ||||||
Depreciation and amortization | 19,007 | 7,887 | ||||||
Amortization of marketable securities (discount) premium | (102 | ) | 2,723 | |||||
Other noncash expense (income) | 908 | 877 | ||||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | (2,147 | ) | 502 | |||||
Inventories | 670 | (2,004 | ) | |||||
Prepaid expenses and other current assets, deposits and other assets | (25,620 | ) | (2,591 | ) | ||||
Accounts payable, accrued expenses and non-current liabilities | 2,693 | 3,635 | ||||||
Net cash used in operating activities | (53,719 | ) | (44,311 | ) | ||||
Investing Activities | ||||||||
Acquisitions of property, plant and equipment | (54,455 | ) | (84,077 | ) | ||||
Acquisition of patent portfolio | — | (10 | ) | |||||
Proceeds from maturity of marketable securities | 168,550 | 299,581 | ||||||
Purchase of marketable securities | — | (130,402 | ) | |||||
Proceeds from sale of property, plant and equipment | 34 | — | ||||||
Net cash provided by investing activities | 114,129 | 85,092 | ||||||
Financing Activities | ||||||||
Debt and equity offering costs | — | (10,993 | ) | |||||
Proceeds from issuance of common stock and common stock warrants | — | 150,000 | ||||||
Proceeds from exercise of warrants | — | 3 | ||||||
Net settlement of common stock under stock plans | — | (286 | ) | |||||
Payment of loans payable | (167 | ) | (150 | ) | ||||
Payment of finance lease liabilities | (22 | ) | (12 | ) | ||||
Net cash (used in) provided by financing activities | (189 | ) | 138,562 | |||||
Net increase in cash and cash equivalents | 60,221 | 179,343 | ||||||
Cash, cash equivalents and restricted cash at beginning of period | 315,376 | 136,033 | ||||||
Cash, cash equivalents and restricted cash at end of period | $ | 375,597 | $ | 315,376 | ||||
Reconciliation of GAAP to Non-GAAP Financial Information
(In thousands)
Three Months Ended | Year Ended | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
Non-GAAP Cash EBITDA (Consolidated): | ||||||||||||||||
Loss from operations | $ | (21,337 | ) | $ | (26,690 | ) | $ | (81,835 | ) | $ | (102,686 | ) | ||||
Depreciation and amortization | 4,684 | 3,314 | 19,007 | 7,887 | ||||||||||||
Stock-based compensation | 4,132 | 4,220 | 17,087 | 16,935 | ||||||||||||
Non-GAAP cash EBITDA (loss) (Consolidated) | $ | (12,521 | ) | $ | (19,156 | ) | $ | (45,741 | ) | $ | (77,864 | ) |
Three Months Ended | Year Ended | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
Non-GAAP Cash EBITDA (Gevo NW Iowa RNG): | ||||||||||||||||
Loss from operations | $ | (384 | ) | $ | (4,088 | ) | $ | (4,095 | ) | $ | (4,088 | ) | ||||
Depreciation and amortization | 1,606 | 313 | 6,705 | 313 | ||||||||||||
Stock-based compensation | 42 | 7 | 102 | 7 | ||||||||||||
Non-GAAP cash EBITDA (loss) (Gevo NW Iowa RNG) | $ | 1,264 | $ | (3,768 | ) | $ | 2,712 | $ | (3,768 | ) | ||||||
Investor Relations Contact
+1 303-883-1114
IR@gevo.com
Source:
2024 GlobeNewswire, Inc., source