This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Syntroleum's CEO Discusses Q4 2011 Results - Earnings Call Transcript

Income or losses under the equity method are reported below operating income as income or loss in equity of Dynamic Fuels, per Generally Accepted Accounting Principles, we do not report gross revenues associated from Dynamic Fuels, because the entity is not consolidated. We will only report our share of the total net income or loss.

As reported in our 10-K, Dynamic Fuels had revenues of $127.1 million, operating expenses and general administrative expenses of $153.9 million and other expense of $2.5 million, resulting in a net loss of $29.3 million for the year ended September 30, of which we report 50% in our Syntroleum financials.

During this time 25.5 million gallons of renewable fuels were sold and 26 million gallons were produced. For the 12 months ended December 31, 2011, Dynamic Fuels produced 33.5 million gallon. As of December 31, 2011, Syntroleum cash balance was $22.6 million. We have not provided any additional working capital fund to Dynamic Fuels, since November of 2011.

Now, I'll turn the call over to Gary Roth.

Gary Roth

Thank you, Karen. Effective January 1, 2012, Dynamic Fuels restructured its renewable diesel sales contract efforts with its agreements with Mansfield Oil Company. As a result, Dynamic Fuels achieved 100% of full RIN value diesel pricing in January of 2012 as compared to 88% of full RIN value pricing for the 12 months ended December 2011.

We define full RIN value as ULSD Gulf Coast plus subsidy if any, plus 1.7 times RIN price. And Dynamic Fuels sold its fuel on a full RIN value basis for calendar year 2011 and would have recognized an operating loss of $2.7 million versus an operating loss of $24 million.

During calendar year 2011, Dynamic Fuels ran at an average uptime of 47% with operating cost of $1.65 per gallon. Assuming average uptime of 75%, total RIN value diesel pricing and operating cost of $1 per gallon, operating income would have been $33 million in 2011.

2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.99 0.00%
FB $102.01 0.00%
GOOG $682.40 0.00%
TSLA $151.04 0.00%
YHOO $27.04 0.00%


Chart of I:DJI
DOW 15,973.84 +313.66 2.00%
S&P 500 1,864.78 +35.70 1.95%
NASDAQ 4,337.5120 +70.6750 1.66%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs