Gevo CEO Discusses Q2 2012 Results - Earnings Call Transcript

Gevo, Inc. (GEVO)

Q22012 Earnings Call

August 7, 2012 5:00 pm ET


Mark Smith - Chief Financial Officer

Pat Gruber - Chief Executive Officer

Brett Lund- EVP & General Counsel


Ben Kallo - Robert W. Baird

Jim Miller - Canaccord

Brian Gamble - Simmons & Company

Noah Kaye - ThinkEquity

James Medvedeff - Cowen & Company

Michael Klein - Sidoti & Company

Michael Ritzenthaler - Piper Jaffray

Gregg Goodnight - UBS

Ben Kallo - Robert W. Baird



Good day, ladies and gentlemen and welcome to the Q2 2012 Gevo, Inc. earnings conference call. My name is Julianne and I will be your operator today. At this time, all participants are in listen-only mode. We will conduct a question-and-answer session towards the end of the conference. (Operator Instructions).

As a reminder, this call is being recorded for replay purposes. Now, I would to turn the call over to Mr. Mark Smith. Please proceed.

Mark Smith

Thank you. Good afternoon and thank you for joining Gevo's second quarter 2012 conference call. I am Mark Smith, Gevo's CFO and with me today are Pat Gruber, our Chief Executive Officer, Brant DeMuth, our EVP of Strategy and Corporate Development, Brett Lund, EVP & General Counsel.

Slides for today's presentation can be downloaded from the webcast and presentation section of our website at Earlier this afternoon, we issued a press release which outlines the topics that we plan to discuss today. A copy of this release is available at our website at

I would like to remind our listeners that this conference call is open to media and we are providing a simultaneous webcast of this call to the public. A replay of our discussion will be available on our website later today.

We want to advise you that this discussion will include forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are statements that could be deemed forward looking statements. These forward looking statements are made on the basis of current beliefs, expectations and assumptions of the management of Gevo and are subject to significant risks and uncertainty. Investors are cautioned to not place undue reliance on any such forward looking statements.

All such forward looking statements speak only as of August 07, 2012 and we undertake no obligation to update or revise these statements whether as a result of new information, future events or otherwise. For a discussion of risks and uncertainties that could actual results to differ from those expressed in these forward looking statements, as well as risk relating to the business of Gevo in general, see the risks disclosures in the Annual Report on Form 10-K of Gevo to the year ended December 31, 2011 as amended and in subsequent reports on Forms 10-Q and 8-K and other filings made with the SEC by Gevo.

The conference call will also include a discussion on non-GAAP financial measures as that term is defined in Reg G including EBITDA adjusted for non-cash compensation. The company believes this information is useful to investors because it provides a basis for measuring the operating performance of the company's business and the company's cash flow.

The company's management uses these non-GAAP financial measures along with the most directly comparable GAAP financial measures in evaluating our operating performance and cash flow. Non-GAAP financial measures should not be considered in isolation from or as a substitute for financial information presented in accordance with GAAP and non-GAAP financial measures presented by the company may not be comparable to similarly titled amounts reported by other companies.

As appropriate the most directly comparable GAAP financial measures in information reconciling these non-GAAP financial measures to the company's financial results prepared in accordance with GAAP are included in the earnings release which is posted on our website.

In today's call, Pat Gruber, our CEO will being with a review of our recent accomplishments and provide an update of our startup operations at Luverne, Following Pat's presentation, I will review our financial results for the second quarter of 2012. Following the presentation, we will open the call up for questions. Brant and Brett will be available for questions and answer section of today's call.

I would now send the call over to Pat Gruber, Gevo's CEO.

Pat Gruber

Thanks, Mark, appreciate that. Thanks for joining us everybody. Mark has gone over the agenda. I will give the overview, talk about Luverne, that is the most important thing, then I will talk about the intellectual property bit, financial highlights and we will summarize it and then go to Q&A. Look forward to your questions.

Now, this is a big quarter for us. We actually started up our plant. We are at the midst of startup and I have got to tell you, we are in a startup learning curve. Startup is like a code word for steep, is what that means and our team has getting it done so far. We have actually been able to produce isobutanol and get it shipped in railcars and trucks and get it off on its way to customers for the chemical and non-automotive fuel market.

We are pretty excited about that. Now, (inaudible) is startups, you guys have heard me say this over to anyone who has met me in person, is sure to have heard it is that startups are really difficult. Lots to learn. We have mechanical issues to deal with. There is always the technology piece that comes with it and what's really important is operating discipline.

Now, what is operating discipline? Operating discipline is the actual knowhow to run this plant. It is not an ethanol plant, we are on isobutanol. We different procedures that have to be followed. The ethanol plants don’t run like a chemical plant, isobutanol run like chemical plants. We are stirring that operating discipline of how to exactly do we follow each and every procedure.

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