KiOR Reports Third Quarter 2012 Results KiOR Reports Third Quarter 2012 Results
Columbus Facility Producing Renewable Oil
Proprietary BFCC Technology Working at Commercial Scale
Continued Progress in R&D Supports Yield Increases
PASADENA, Texas, Nov. 8, 2012 (GLOBE NEWSWIRE) -- KiOR, Inc. (Nasdaq:KiOR), a next-generation renewable fuels company, today announced its financial results for the third quarter ended September 30, 2012.
"I am pleased to announce that we have commenced operations at the Columbus facility and have produced a high quality oil that is in line with our specifications for upgrading into cellulosic gasoline and diesel," said Fred Cannon, KiOR's President and Chief Executive Officer. "More importantly, we believe the high quality of the oil from the Columbus facility validates KiOR's proprietary biomass fluid catalytic cracking, or BFCC, technology at commercial scale. The facility's performance to date not only meets our expectations based on our experience at our pilot and demonstration scale facilities, but also gives me confidence that we remain on track to upgrade our oil in order to ship America's first truly sustainable cellulosic gasoline and diesel for American vehicles."
"Furthermore, our research and development efforts continue to make progress increasing our yields and reducing our capital intensity. Our work continues on our next generation catalyst platform, which we believe can produce a yield of 72 gallons per bone dry ton of biomass when implemented at our full scale commercial facility in Natchez. Moreover, we believe that this catalyst platform will reduce the amount of coke made in our process by up to 25 percent, which would enhance the capital efficiency of our commercial facilities by giving us the ability to process up to 25 percent more feedstock without significant additional capital," Cannon concluded.
Financial Results
Third quarter 2012 net loss was $27.0 million, or $0.26 per share, compared to a net loss of $23.0 million, or $0.22 per share, for the second quarter of 2012. Net loss for the third quarter of 2011 totaled $14.8 million, or $0.15 per share.
KiOR did not recognize revenue during the third quarter of 2012; its activities remained focused on commissioning and start-up of its first commercial facility in Columbus, research and development (R&D) designed to improve production yields, and obtaining necessary financing for its expansion plans.
Research and development expenses for the third quarter of 2012 totaled $8.7 million, a $0.1 million increase from the $8.6 million recorded in the second quarter of 2012 primarily as a result of higher stock-based compensation expense. Third quarter 2012 R&D expenses increased $0.4 million from third quarter 2011, also due to higher stock-based compensation expense.
General and administrative (G&A) expenses for the third quarter of 2012 were $17.4 million, an increase of $3.7 million from the second quarter of 2012, primarily due to commissioning and start-up activities related to the Columbus facility. Year-over-year expenses increased $11.5 million from the third quarter of 2011, mainly driven by $9.5 million higher Columbus related expenses, $1.6 million higher non-cash stock-based compensation expense, and higher consulting expenses.
Depreciation and amortization expenses for the third quarter of 2012 were $0.8 million, $0.1 million higher than depreciation and amortization expenses recorded in the second quarter of 2012 and $0.2 million higher than the third quarter of 2011.
Capital investment during the third quarter was $7.6 million, primarily related to KiOR's initial-scale commercial production facility in Columbus.
KiOR had cash and cash equivalents of $74.3 million at September 30, 2012, which represents a $57.3 million decrease from the December 31, 2011 balance. This decrease was primarily driven by capital expenditures, operating uses of cash, and paying off previous business loans, partially offset by funding from the $75.0 million 4-year-term loan announced earlier this year. Net long-term debt stood at $112.5 million as of quarter-end.
https://investor.kior.com/releasedetail.cfm?ReleaseID=719652
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