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Syntroleum Announces First Quarter 2013 Results

TULSA, Okla., May 3, 2013 (GLOBE NEWSWIRE) -- Syntroleum Corporation (Nasdaq:SYNM) today announced financial results for the three months ended March 31, 2013.

Highlights

Syntroleum's net income was $11.0 million or $1.15 per share for the three months ended March 31, 2013, compared to a net loss of $1.9 million or $0.20 per share for the corresponding period in 2012.

The financial statements for all prior periods have been retroactively adjusted to reflect the April 11, 2013 one-for-ten reverse stock split of the Company's common stock which allowed the Company to regain compliance with NASDAQ's minimum price Marketplace Rule as of April 26, 2013.

For the quarter ended March 31, 2013, the Company reported an operating loss of $2.0 million resulting from total revenues of $899 thousand and operating expenses of $2.9 million.

Equity in earnings of Dynamic Fuels for the quarter ended March 31, 2013 is $6.7 million which includes $12.6 million in gains representing our portion of the retroactive reinstatement of the $1 tax credit for 2012, partially offset by $5.9 million in losses resulting from our share of Dynamic Fuels' operating results for its first quarter ended December 31, 2012. Due to the material impact of the retroactive reinstatement of the $1 tax credit, we are reporting it in the current quarter rather than on a three month lag basis which is our normal accounting practice. For Dynamic Fuels' quarter ended December 31, 2011, we reported a loss from Dynamic Fuels of $830 thousand.

Income from Discontinued Operations for the quarter ended March 31, 2013 includes $5.8 million in proceeds from the sale of our nominal two b/d pilot plant in Tulsa, Oklahoma and $603 thousand from the previously accrued asset retirement obligations.

As of March 31, 2013 Syntroleum's available cash position was $14.9 million. On April 12, 2013 we received $9.0 million in refunds from the IRS related to the reinstatement of the $1 tax credit retroactive to 2012 resulting in total cash of approximately $23.9 million.

During the quarter ended March 31, 2013, Syntroleum and Tyson each made additional equity contributions of $1.7 million and working capital loans of $4.0 million to Dynamic Fuels to fund operations to maintain the Geismar Plant in standby mode.

Our conference call will be held on Wednesday, May 8, 2013, at 10:00 a.m. Central time (11:00 a.m. Eastern). A webcast of the call will be available via the Internet by accessing www.syntroleum.com. Listeners should allow a few minutes for registration into the web site. To participate in the teleconference, investors should dial 1-877-317-6789 about 10 minutes before the start time and reference the Syntroleum conference call. International callers should dial 1-412-317-6789. A replay of this conference call will be available on the web site under the Syntroleum Investor Relations tab.

For additional information see the Company's Form 10-K for the year ended December 31, 2012, filed with the SEC on Friday, March 15, 2013. The 10-K is available through the Investor Relations section of the Company's Web site, www.syntroleum.com.

About Syntroleum

Syntroleum Corporation owns the Syntroleum® Process for Fischer-Tropsch (FT) conversion of synthesis gas derived from biomass, coal, natural gas and other carbon-based feedstocks into liquid hydrocarbons, the Synfining® Process for upgrading FT liquid hydrocarbons into middle distillate products such as synthetic diesel and jet fuels, and the Bio-Synfining® technology for converting animal fat and vegetable oil feedstocks into middle distillate products such as renewable diesel and jet fuel using inedible fats and greases as feedstock. The 50/50 venture – known as Dynamic Fuels – was formed to construct and operate multiple renewable synthetic fuels facilities, with production on the first site beginning in 2010. The Company plans to use its portfolio of technologies to develop and participate in synthetic and renewable fuel projects. For additional information, visit the Company's web site at www.syntroleum.com

Forward-Looking Statements

This document may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as well as historical facts. These forward-looking statements include statements relating to the Fischer-Tropsch ("FT") process, Syntroleum ® Process, Synfining ® Process, and related technologies including, gas-to-liquids ("GTL"), coal-to-liquids ("CTL") and biomass-to-liquids ("BTL"), our renewable fuels Bio-Synfining ® Technology (hereinafter "Technologies"), plants based on these Technologies, anticipated cost and schedule to design, construct and operate plants, expected production of fuel, obtaining required financing for these plants and other activities, the value and markets for products, testing, certification, characteristics and use of plant products, the continued development of our Technologies, use of proceeds from our equity offerings, anticipated revenues, availability of catalyst, our support of and relationship with our licensees, and any other forward-looking statements including future growth, cash needs, capital availability, operations, business plans and financial results. When used in this document, the words "anticipate," "believe," "estimate," "expect," "intend," "may," "plan," "project," "should" and similar expressions are intended to be among the statements that identify forward-looking statements. Although we believe that the expectations reflected in these forward-looking statements are reasonable, these kinds of statements involve risks and uncertainties. Actual results may not be consistent with these forward-looking statements. Syntroleum undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time. Important factors that could cause actual results to differ from these forward-looking statements are described under "Item 1A. Risk Factors" and elsewhere in our 2012 Annual Report on Form 10K.

®"Syntroleum", "Synfining", and "Bio-Synfining" are registered as trademarks and service marks in the U.S. Patent and Trademark Office.

SYNTROLEUM CORPORATION AND SUBSIDIARIES
UNAUDITED CONSOLIDATED BALANCE SHEETS
(in thousands)
March 31, December 31,
2013 2012
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 14,935 $ 15,909
Restricted cash 762 725
Accounts receivable 123 134
Taxes receivable 8,986 --
Accounts receivable from Dynamic Fuels, LLC 85 252
Other current assets 213 237
Total current assets 25,104 17,257
PROPERTY AND EQUIPMENT
Property, plant, and equip, 448 446
Accumulated depletion, depreciation and amortization (395) (388)
Total Property & Equipment, net 53 58
INVESTMENT IN AND LOANS TO DYNAMIC FUELS, LLC 41,798 38,407
OTHER ASSETS, net 1,031 1,023
Total Assets $ 67,986 $ 56,745
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 529 $ 312
Accrued liabilities 185 71
Deposits 762 725
Total current liabilities 1,476 1,108
NONCURRENT LIABILITIES OF DISCONTINUED OPERATIONS -- 603
DEFERRED REVENUE 15,679 15,612
COMMITMENTS AND CONTINGENCIES -- --
Total liabilities 17,155 17,323
STOCKHOLDERS' EQUITY:
Common stock, $0.01 par value, 150,000 shares authorized, 9,924 and 9,829 shares issued and outstanding at March 31,2013 and December 31, 2012 respectively 992 983
Additional paid-in capital 399,278 398,903
Retained Earnings, beginning of year (360,464) (359,363)
Current Year Earnings 11,025 (1,101)
Accumulated deficit (349,439) (360,464)
Total stockholders' equity 50,831 39,422
Total Liabilities and Stockholders' Equity $ 67,986 $ 56,745
Share and per share information for the prior periods has been retroactively adjusted to reflect the April 11, 2013 one-for-ten reverse stock split of the Company's common stock.
SYNTROLEUM CORPORATION AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
For the Quarter Ended March 31,
2013 2012
REVENUES:
Technology $100 $150
Technical services 382 481
Technical services from Dynamic Fuels, LLC 417 379
Royalties from Dynamic Fuels, LLC plant production -- 240
Total revenues 899 1,250
COSTS AND EXPENSES:
Engineering 586 598
Depreciation and amortization 43 52
General, administrative and other (including non-cash equity compensation of $384, and $312 for the quarters ended March 31, 2013, and 2012, respectively.) 2,279 1,386
OPERATING LOSS (2,009) (786)
INTEREST INCOME 2 8
OTHER INCOME 2 2
EQUITY IN EARNINGS (LOSS) OF DYNAMIC FUELS, LLC 6,707 (830)
FOREIGN CURRENCY EXCHANGE (68) (317)
INCOME (LOSS) FROM CONTINUING OPERATIONS 4,634 (1,923)
INCOME (LOSS) FROM DISCONTINUED OPERATIONS 6,391 (10)
NET INCOME (LOSS) $11,025 $ (1,933)
BASIC NET INCOME (LOSS) PER SHARE:
Net Income (Loss) from continuing operations $0.48 $ (0.20)
Income (Loss) from discontinued operations 0.67 (0.00)
Net Income (Loss) $1.15 $ (0.20)
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
Basic 9,585 9,840
Diluted 9,585 9,840
Share and per share information for the prior periods has been retroactively adjusted to reflect the April 11, 2013 one-for-ten reverse stock split of the Company's common stock.
SYNTROLEUM CORPORATION AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
For the Quarter Ended March 31,
2013 2012
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income (loss) $11,025 $ (1,933)
Income (loss) from discontinued operations 6,391 (10)
Income (loss) from continuing operations 4,634 (1,923)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization 43 52
Foreign currency exchange 68 317
Non-cash compensation expense 384 312
Non-cash (income) loss in equity method investee (6,707) 830
Changes in assets and liabilities:
Accounts receivable 11 (35)
Accounts receivable from Dynamic Fuels, LLC 167 (536)
Other assets (21) 72
Accounts payable 217 (152)
Accrued employee costs 114 (48)
Deferred revenue -- (50)
Net cash used in continuing operations (1,090) (1,161)
Net cash used in discontinued operations (10) (9)
Net cash used in operating activities (1,100) (1,170)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment (2) (5)
Investment in and loans to Dynamic Fuels, LLC (5,670) --
Net cash used in continuing operations (5,672) (5)
Net cash provided by discontinued operations 5,798 --
Net cash provided by (used in) investing activities 126 (5)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from restricted stock exercises -- 63
Net cash provided by financing activities -- 63
NET CHANGE IN CASH AND CASH EQUIVALENTS (974) (1,112)
CASH AND CASH EQUIVALENTS, beginning of period 15,909 22,601
CASH AND CASH EQUIVALENTS, end of period $14,935 $21,489
NON-CASH INVESTING ACTIVITIES:
Accounts receivable reduction in Dynamic Fuels, LLC working capital loan $8,986 $ --

CONTACT: Ron Stinebaugh Syntroleum Corporation (281) 224-9862 www.syntroleum.com

Source:Syntroleum Corporation