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Syntroleum Announces Second Quarter 2012 Results

Stocks in this article: SYNM

TULSA, Okla., Aug. 8, 2012 (GLOBE NEWSWIRE) -- Syntroleum Corporation (Nasdaq:SYNM), a renewable and synthetic fuels technology company, today announced financial results for the six months ended June 30, 2012.

Financial Highlights

For the six months ended June 30, 2012, the Company reported operating income of $8.0 million resulting from total revenues of $12.1 million and operating expenses of $4.1 million. Revenues relate to engineering services provided to Dynamic Fuels and others for process design and research support, and royalties from the Dynamic Fuels commercial production of renewable fuels. The Company also recognized $6.0 million of unearned revenue related to an expired license agreement.

For the six months ended March 31, 2012, we reported a loss from Dynamic Fuels of $3.0 million. This compares to a loss of $6.9 million for the six months ended March 31, 2011. During the six months ended March 31, 2012 the plant sold 19.9 million gallons of renewable fuels compared to sales of 5.8 million gallons during the six months ended March 31, 2011. 

We report Dynamic Fuels on a three month lag and the loss reflected in our income statement from Dynamic Fuels represents the loss incurred for the period ending March 31, 2012. Our 10Q filing includes Dynamic Fuels financials for their six months ended March 31, 2012.

Syntroleum's net income was $6.9 million or $0.07 per share and $5 million or $0.05 per share, respectively, for the three months and six months ended June 30, 2012, compared with net losses of $5.5 million or $0.07 per share and $9.4 million or $0.11 per share for the corresponding period in 2011.

As of June 30, 2012 Syntroleum's available cash position was $18.3 million. 

Conference Call

The conference call will be held on Friday, August 10, 2012, 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 1-866-652-5200 about 10 minutes before the start time and reference the Syntroleum conference call. International callers should dial 1-412-317-6060. 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-Q for the six months ended June 30, 2012, filed with the SEC on Wednesday, August 8, 2012. The 10-Q 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

The Syntroleum Corporation logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=5984

Forward Looking Statements

This document includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as well as historical facts. These forward‑looking statements may include statements relating to the Company's technologies and use thereof, operational activities of the Company, and technology test 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 include the potential that debt or equity financing for anticipated plants may not be available, the schedule for development, construction and operation of proposed plants may not be met, , commercial-scale plants do not achieve the same results as those demonstrated on a laboratory or pilot basis or that such plants experience technological and mechanical problems, the potential that improvements to Syntroleum's various technologies currently under development may not be successful, the impact on plant economics of operating conditions (including commodity  prices), construction risks, risks associated with investments and operations in foreign countries, our dependence on strategic relationships with manufacturing and engineering companies, volatility of energy prices, the ability to implement corporate strategies, including the continued availability of adequate working capital, competition, intellectual property risks, our ability to obtain financing and other risks described in the Company's filings with the Securities and Exchange Commission.

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

     
SYNTROLEUM CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share)
     
  June 30, December 31,
  2012 2011
 ASSETS  (Unaudited)   
CURRENT ASSETS:    
 Cash and cash equivalents $18,313 $22,601
 Restricted cash 1,131 1,189
 Accounts receivable 158 125
 Accounts receivable from Dynamic Fuels, LLC 222  -- 
 Other current assets 144 277
 Total current assets 19,968 24,192
     
ACCOUNTS RECEIVABLE FROM DYNAMIC FUELS, LLC  -- 2,624
PROPERTY AND EQUIPMENT – at cost, net 62 86
INVESTMENT IN AND LOANS TO DYNAMIC FUELS, LLC 45,405 38,643
OTHER ASSETS, net 1,062 1,106
  $66,497 $66,651
     
LIABILITIES AND STOCKHOLDERS' EQUITY    
CURRENT LIABILITIES:    
 Accounts payable $296 $220
 Accrued employee costs 480 288
 Deposits  1,131 1,189
 Total current liabilities 1,907 1,697
     
NONCURRENT LIABILITIES OF DISCONTINUED OPERATIONS 603 603
DEFERRED REVENUE 18,344 24,366
COMMITMENTS AND CONTINGENCIES  --  --
     
STOCKHOLDERS' EQUITY:    
Preferred stock, $0.01 par value, 5,000 shares authorized, no shares issued  --  --
Common stock, $0.01 par value, 150,000 shares authorized, 98,480 and 97,948 shares issued and outstanding at June 30, 2012 and December 31, 2011, respectively 985 979
Additional paid-in capital 399,007 398,369
Accumulated deficit (354,349) (359,363)
 Total stockholders' equity  45,643 39,985
  $66,497 $66,651
     
         
SYNTROLEUM CORPORATION AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
         
  For the Three months Ended June 30, For the Six Months Ended June 30,
  2012 2011 2012 2011
REVENUES:        
 Technology  $6,150 $150 $6,300 $300
 Technical services  473 383 954 884
 Technical services from Dynamic Fuels, LLC 4,052 316 4,431 514
 Royalties from Dynamic Fuels, LLC plant production 135 339 375 339
 Total revenues 10,810 1,188 12,060 2,037
         
COSTS AND EXPENSES:        
 Engineering 592 588 1,190 1,144
 Depreciation and amortization  49 50 101 99
 General, administrative and other (including non-cash equity compensation of $102 and ($8) for the three months ended June 30, 2012 and 2011, respectively, and $415 and $459 for the six months ended June 30, 2012 and 2011, respectively.) 1,406 764 2,792 2,595
         
OPERATING INCOME (LOSS) 8,763 (214) 7,977 (1,801)
         
INTEREST INCOME 6 2 14 6
EQUITY IN LOSS OF DYNAMIC FUELS, LLC (2,155) (4,829) (2,985) (6,938)
OTHER INCOME 2 2 4 4
FOREIGN CURRENCY EXCHANGE  340 (430) 23 (648)
         
INCOME (LOSS) FROM CONTINUING OPERATIONS  6,956 (5,469) 5,033 (9,377)
         
LOSS FROM DISCONTINUED OPERATIONS (9) (9) (19) (8)
         
NET INCOME (LOSS) $6,947 ($5,478) $5,014 ($9,385)
         
BASIC AND DILUTED NET INCOME (LOSS) PER SHARE:        
 Income (loss) from continuing operations $0.07 ($0.07) $0.05 ($0.11)
 Income (loss) from discontinued operations  0.00 0.00 0.00 0.00
 Net income (loss) $0.07 ($0.07) $0.05 ($0.11)
         
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:        
 Basic  98,478 81,965 98,440 81,954
 Diluted 99,859 81,965 99,821 81,954
     
SYNTROLEUM CORPORATION AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands) 
     
  For the Six Months Ended June 30,
  2012 2011
CASH FLOWS FROM OPERATING ACTIVITIES:    
 Net income (loss)  $5,014 ($9,385)
 Loss from discontinued operations (19) (8)
 Net income (loss) from continuing operations 5,033 (9,377)
 Adjustments to reconcile net loss to net cash provided by (used in) operating activities:    
 Depreciation and amortization 101 99
 Foreign currency exchange (23) 648
 Non-cash compensation expense 415 459
 Non-cash loss in equity method investee 2,985 6,938
 Non-cash technical services revenue from Dynamic Fuels, LLC (3,685) --
 Changes in assets and liabilities:    
 Accounts receivable (33) 497
 Accounts receivable from Dynamic Fuels, LLC (494) (1,113)
 Other assets 106 182
 Accounts payable 76 (1,064)
 Accrued liabilities and other 192 317
 Deferred revenue (6,000) --
 Net cash used in continuing operations (1,327) (2,414)
 Net cash used in discontinued operations (19) (8)
 Net cash used in operating activities (1,346) (2,422)
     
CASH FLOWS FROM INVESTING ACTIVITIES:    
 Purchase of property and equipment (5) (23)
 Investment in and loans to Dynamic Fuels, LLC (3,000) (3,850)
 Net cash used in investing activities (3,005) (3,873)
     
CASH FLOWS FROM FINANCING ACTIVITIES:    
 Proceeds from sale of common stock, warrants and option exercises 63 35
 Net cash provided by financing activities 63 35
     
NET CHANGE IN CASH AND CASH EQUIVALENTS (4,288) (6,260)
CASH AND CASH EQUIVALENTS, beginning of period 22,601 12,513
CASH AND CASH EQUIVALENTS, end of period $18,313 $6,253
     
NON-CASH INVESTING AND FINANCING ACTIVITIES:    
 Common stock warrants $166 $ -- 
 Investment in Dynamic Fuels, LLC $6,597  $ -- 
     
CONTACT: Ron Stinebaugh
         Syntroleum Corporation
         (281) 224-9862
         www.syntroleum.com

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