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8-K - FORM 8-K - Kior Inc | h85610e8vk.htm |
EXHIBIT 99.1
FOR IMMEDIATE RELEASE
KIOR REPORTS THIRD QUARTER FINANCIAL RESULTS
Columbus on Schedule for Production in Second Half of 2012
KiOR continues to expand research and development capabilities
KiOR continues to expand research and development capabilities
PASADENA, Texas, November 10, 2011 KiOR, Inc. (NASDAQ: KiOR), a next-generation renewable fuels
company, today announced financial results for the third quarter ended September 30, 2011.
For the third quarter of 2011, KiOR reported a net loss of $14.8 million, or $0.15 per share,
compared to $10.6 million, or $0.13 per share, for the third quarter of 2010. KiORs third quarter
2011 loss includes $1.6 million of non-cash stock-based compensation expense.
KiOR did not recognize revenue during the third quarter of 2011, as its activities remained focused
on construction of its first commercial facility in Columbus, Mississippi and research and
development (R&D) designed to improve production yields.
R&D expenses were $8.3 million in the third quarter of 2011, an increase from $6.5 million for the
same period in 2010, due primarily to the expansion of R&D staff and increased testing activities.
General and administrative expenses for the third quarter of 2011 increased to $5.9 million from
$2.8 million for the same period in 2010, primarily due to an increase in non-cash stock-based
compensation expense of approximately $1.0 million, with the remaining increase the result of
increased headcount and compliance related expenses.
Depreciation and amortization expenses in the third quarter of 2011 increased to $0.6 million, from
$0.5 million for the same period in 2010.
Capital investment during the quarter was $53.4 million, substantially all of which related to
KiORs Columbus facility.
We have completed more than 40% of the construction of our initial-scale production facility in Columbus,
Mississippi, with engineering and procurement work essentially complete, said Fred Cannon, KiORs
President and Chief Executive Officer. The Columbus plant is on track and, as previously
communicated, we expect Columbus to commence production during the second half of 2012. We are
focused on completing the construction and commissioning of our Columbus facility, investing in R&D
and laying the groundwork for our next commercial production facility in Newton, Mississippi,
including securing necessary financing, concluded Cannon.
As of September 30, 2011, KiOR had cash and cash equivalents of $152.2 million. This balance
includes $11.2 million net proceeds received by the Company in July as a result of the issuance of
800,000 shares of Class A Common Stock pursuant to the partial exercise of the underwriters
over-allotment option in the initial public offering.
Conference Call Information
The Company will discuss these results on a conference call scheduled for today at 4:30 p.m.
Eastern Time (3:30 p.m. Central Time). To participate via live webcast, please visit:
http://investor.kior.com/events.cfm. An audio replay of the conference call will be available
approximately two hours after the conclusion of the call. The audio replay will remain available
until Tuesday, November 15, 2011 at 11:59 p.m. Eastern Time and can be accessed by dialing
888-203-1112 if you are calling from within the United States or 719-457-0820 if you are calling
from outside the United States and entering the replay pass code 5184572. A replay of the webcast
will be available on the investor relations section of the Companys website approximately two
hours after the conclusion of the call and remain available for approximately 90 calendar days.
About KiOR
KiOR is a development stage next-generation renewable fuels company that has developed
a unique two-step proprietary technology platform that converts abundant and sustainable non-food biomass into gasoline and
diesel blendstocks that can be transported using the existing fuels distribution system for use in vehicles on the road today.
KiOR strives to help ease
dependence on foreign oil, reduce lifecycle greenhouse gas emissions and create high-quality jobs
and economic benefit across rural communities. For more information, please visit www.KiOR.com.
Forward-Looking Statements
This release contains forward looking statements regarding future results and events, including,
without limitation, statements about: the construction of and commercialization at our
biomass-to-fuel facility in Columbus, Mississippi, potential future sales of our fuels products,
and our anticipated future operations. For this purpose, any statements contained herein that are
not statements of historical fact may be deemed forward looking statements. Without limiting the
foregoing, the words believes, anticipates, plans, expects, intends, appears,
estimates, projects, will, would, could, should, targets, and similar expressions are
also intended to identify forward looking statements. The forward looking statements in this press
release involve a number of risks and uncertainties. The Companys actual future results may
differ significantly from the results discussed in the forward looking statements contained in this
press release. Such factors and others are discussed more fully in the section entitled Risk
Factors in the Companys Quarterly Report on Form 10-Q as filed with the United States Securities
and Exchange Commission on August 15, 2011, which Risk Factors discussion is incorporated by
reference in this press release. If any of these risks or uncertainties materialize, or if our
underlying assumptions prove to be incorrect, actual results, levels of activity, performance or
achievement may vary significantly from what we projected. The Company specifically disclaims any
obligation to update these forward looking statements in the future. These forward-looking
statements should not be relied upon as representing the Companys estimates or views as of any
date subsequent to the date of this press release.
Contact Information: |
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John H. Karnes, CFO
|
Erica Mannion, Investor Relations | |
KiOR, Inc.
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Sapphire Investor Relations, LLC | |
281-694-8811
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212-766-1800 | |
Investor.relations@kior.com
|
Investor.relations@kior.com |
KiOR, Inc
Condensed Consolidated Statement of Operations
(Unaudited)
(In thousands, except share and per share amounts)
Condensed Consolidated Statement of Operations
(Unaudited)
(In thousands, except share and per share amounts)
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Operating expenses: |
||||||||||||||||
Research and development expenses |
$ | (8,269 | ) | $ | (6,467 | ) | $ | (23,251 | ) | $ | (15,088 | ) | ||||
General and administrative expenses |
(5,905 | ) | (2,821 | ) | (17,267 | ) | (6,169 | ) | ||||||||
Depreciation and amortization expenses |
(598 | ) | (458 | ) | (1,684 | ) | (1,143 | ) | ||||||||
Loss from operations |
(14,772 | ) | (9,746 | ) | (42,202 | ) | (22,400 | ) | ||||||||
Other income (expense), net: |
||||||||||||||||
Interest income |
2 | 20 | 2 | 22 | ||||||||||||
Beneficial conversion feature expense related to convertible
promissory note |
| | | (10,000 | ) | |||||||||||
Interest expense, net of amounts capitalized |
| (732 | ) | | (1,454 | ) | ||||||||||
Foreign currency gain (loss) |
| | | 24 | ||||||||||||
Loss from change in fair value of warrant liability |
| (159 | ) | (6,914 | ) | (2,449 | ) | |||||||||
Other expense, net |
2 | (871 | ) | (6,912 | ) | (13,857 | ) | |||||||||
Loss before income taxes |
(14,770 | ) | (10,617 | ) | (49,114 | ) | (36,257 | ) | ||||||||
Income tax expense current |
| | | | ||||||||||||
Net loss |
$ | (14,770 | ) | $ | (10,617 | ) | $ | (49,114 | ) | $ | (36,257 | ) | ||||
Deemed dividend related to the beneficial conversion feature of
Series C convertible preferred stock |
| | (19,669 | ) | | |||||||||||
Net loss attributable to stockholders |
$ | (14,770 | ) | $ | (10,617 | ) | $ | (68,783 | ) | $ | (36,257 | ) | ||||
Net loss per share of Class A common stock, basic and diluted |
$ | (0.15 | ) | $ | | $ | (0.73 | ) | $ | | ||||||
Net loss per share of Class B common stock, basic and diluted |
$ | (0.15 | ) | $ | (0.13 | ) | $ | (0.73 | ) | $ | (0.51 | ) | ||||
Weighted-average Class A and B common shares outstanding, basic and diluted |
101,724 | 15,580 | 46,096 | 15,315 | ||||||||||||
KiOR, Inc.
Condensed Consolidated Balance Sheets
(Unaudited)
(In thousands)
Condensed Consolidated Balance Sheets
(Unaudited)
(In thousands)
September 30, | December 31, | |||||||
2011 | 2010 | |||||||
Assets |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ | 152,223 | $ | 51,350 | ||||
Restricted cash |
100 | 100 | ||||||
Prepaid expenses and other current assets |
1165 | 85 | ||||||
Total current assets |
153,488 | 51,535 | ||||||
Property, plant and equipment, net |
125,502 | 34,880 | ||||||
Intangible assets, net |
2,281 | 2,426 | ||||||
Other assets |
300 | | ||||||
Total assets |
$ | 281,571 | $ | 88,841 | ||||
Liabilities, Convertible Preferred Stock and
Stockholders Equity (Deficit) |
||||||||
Current liabilities: |
||||||||
Current portion of long-term debt, net of discount |
$ | 2,617 | $ | 4,480 | ||||
Accounts payable |
3,408 | 3,207 | ||||||
Accrued liabilities |
4,358 | 671 | ||||||
Convertible preferred stock warrants liability |
| 3,185 | ||||||
Total current liabilities |
10,383 | 11,543 | ||||||
Long-term debt, less current portion, net of discount |
29,082 | 5,037 | ||||||
Total liabilities |
39,465 | 16,580 | ||||||
Total convertible preferred stock |
| 134,384 | ||||||
Total stockholders equity (deficit) |
242,106 | (62,123 | ) | |||||
Total liabilities, convertible preferred stock and
stockholders equity (deficit) |
$ | 281,571 | $ | 88,841 | ||||