Green Earth Technologies Reports Nine Month Results
STAMFORD, Conn., July 29 -- Green Earth Technologies (Pink Sheets: GETG), announced today that revenues for the nine months ending March 31, 2009 totaled $2.2 million. Sales of the Company's products including bio-based and bio-degradable performance and appearance products for the home, lawn care and automotive markets commenced in March 2008, with additional product lines being introduced to the marketplace. Adjusted EBITDA loss for the nine months ending March 31, 2009 was $4.7 million which covers costs for research and development and cost for testing G-OIL SAE 5W-30 motor oil to apply for the American Petroleum Institute (API) certification, which was achieved in March 2009, becoming the first and only bio-based motor oil to receive such distinguished honors.
Key accomplishments for the nine months ending March 2009 include:
-- G-OIL motor oil was named the official oil of the American Le Mans
Series.
-- We obtained the SM rating from API for our G-OIL 4-Cycle lubricant
and the API "Donut" service symbol for the SAE 5W-30 weight of our
ultimate biodegradable green motor oil. We believe we are the only
bio-based motor oil to receive these designations.
-- We established a worldwide distribution agreement with Techtronics
Industries Inc., which is now our largest customer, including G-OIL ,
bar and chain lubricants and G-CLEAN(TM) biodegradable detergents.
-- We introduced G-CLEAN "ultimate biodegradable" dissolvable detergent
pressure wash pouches which are now exclusively available at The Home
Depot. Just one 1.5 oz dissolvable detergent pouch has the cleaning
power of a full gallon of concentrated pressure washing cleaners.
-- Through a licensing deal with TTI, G-CLEAN Injector was specifically
made to be used with all pressure washers, allowing detergent to "go
through" the pump, lubricating it while cleaning @ 4,000 PSI.
-- We formed strategic relationships with two suppliers, Bio Tec and
Inventek, to produce "G"-Branded performance and appearance line of
products. The partnership also outlined exclusive licensing
agreements with respect to those products.
-- We formed a strategic relationship with KPP and Olympic Oil Ltd. for
bottling, packaging and other services.
-- We entered into a sales and marketing agreement with Marketiquette to
develop a sales and marketing strategy which is currently being
applied to our business model.
-- We launched a sales and marketing program utilizing product and
corporate branding, promotional and advertising campaigns, point of
purchase marketing, push-pull strategy, and public promotions..
-- Our G-OIL achieved the highest biodegradability ranking - Ultimate
Biodegradable -- as determined by ASTM Standards (2.1 ASTM D-5864).
-- We signed master distribution agreements with Steel City Products, Do
Cut Sales and Service, Rotary Corporation and Sustainable Earth
Products International, Ltd., securing distribution in the United
States, Canada, New Zealand and certain Caribbean Islands.
Jeff Marshall, Chairman and CEO of Green Earth Technologies stated, "We have embarked on creating a powerful consumer brand which is becoming top of mind for consumers seeking products that are both green and effective. Our current product lines focus on categories considered to be among the biggest contributors to environmental damage and are combating these issues with innovative technology and bio-degradable performance. This will have an immediate positive impact whereby lowering carbon emissions and lessening the pollution of our land and waterways."
"I am confident that Green Earth Technologies will quickly develop marketing and product initiatives that will lead to significant revenue increases in an addressable global market of over $200 billion" added Jeff Loch, Founder and Chief Marketing Officer of Green Earth Technologies. "We could not be more excited about G-OIL SAE 5W-30 being awarded API certification and we have started production at an accelerated pace and expect to produce predictable quarter-over-quarter revenue growth and steady progress toward profitability."
For the nine months ending March 31, 2009, the Company reported net sales of approximately $2.2 million. As mentioned above, sales of the Company's products commenced only in March 2008. Net loss was $10.4 million, or ($0.14) per share which includes $5.1 million, or ($0.07) per share, in non cash stock-based compensation. The common shares and stock options were issued in exchange for royalty-free licenses and exclusivity rights, patents, certain intellectual property and for services and compensation to various parties, including employees and non-employees.
At March 31, 2009, cash and cash equivalents totaled $2.1 million, inventory totaled $2.2 million and total stockholders' equity was $4.3 million. During the year the Company did not capitalize any costs for research and development or costs for testing its motor oils.
KEY FINANCIAL METRICS
(in thousands, except per share amounts)
Nine Months Ended
March 31, 2009
--------------
(unaudited)
Performance Products $1,484
Appearance Products 707
---
Total Revenues $2,191
------
Net loss $(10,433)
Interest expense, net 246
---
Operating loss (10,187)
Stock compensation 5,115
Amortization and depreciation 376
---
Adjusted EBITDA loss $(4,696)
-------
Net loss per share ($0.14)
Adjusted EBITDA per share ($0.06)
In addition to disclosing financial results prepared in accordance with GAAP, the Company discloses information regarding Adjusted EBITDA. Adjusted EBITDA is a non-GAAP financial measure defined as earnings before interest, taxes, depreciation and amortization. Adjusted EBITDA also excludes the non-cash charge for stock compensation expense. The Company provides the above reconciliation to net loss, which is the most directly comparable GAAP measure. The Company presents adjusted EBITDA as it is a common alternative measure of performance that is used by management as well as investors when analyzing the financial position and operating performance of the Company by excluding certain non-cash expenses, such as stock compensation expense, as well as non-operating items that are not indicative of its core operating results. Furthermore, this non-GAAP financial measure is one of the primary indicators management uses for planning and forecasting future periods. As adjusted EBITDA is a non-GAAP financial measure, it should not be considered in isolation or as a substitute for net loss or any other GAAP measure. Because not all companies calculate adjusted EBITDA in the same manner, the Company's definition of adjusted EBITDA might not be consistent with that of other companies.
To obtain a copy of the company's March 31, 2009 unaudited financial results and its June 30, 2008 audited financial statements go to www.getg.com or www.pinksheets.com (ticker: GETG).
ABOUT GREEN EARTH TECHNOLOGIES
Green Earth Technologies produces G-branded superior performing totally green products made with American-grown base oils that utilize the power of nanotechnology to deliver environmentally friendly products with no compromise... meaning, consumers can now "do their part" without having to give up performance or value: Save the Earth - Sacrifice Nothing. The G-brand family of products include G-OIL(TM), G-LUBE(TM), G-WASH(TM), G-GLASS(TM), G-CLEAN(TM), G-SCENT(TM), G-WHEEL(TM), G-PROTECT(TM) and G-TIRE(TM), and are offered in a wide range of automotive categories including performance and appearance chemicals. GET products are now available at The Home Depot, Kroger, Albertsons, VIP, National Auto, Fred Meyer, Joe's, participating ACE & True Value dealers, Redners, Trader Horns, The Andersons, Biggs, Bennett Auto, Frank's Auto Supermarket and Amazon.com. Please visit http://www.getg.com/ for the latest news and in-depth information about GET and its brands.
FINANCIAL TABLES FOLLOW
Green Earth Technologies, Inc.
Condensed Consolidated Statement of Operations
(in thousands, except per share amounts)
Year 9 Months 9 Months
Ended Ended Ended
June 30, 2008 March 31, 2008 March 31, 2009
(audited) (unaudited) (unaudited)
--------- ----------- -----------
Net Sales $290 $10 $2,191
Cost of Sales 192 8 1,842
--- -- -----
Gross Profit 98 2 349
Selling, General and
Administrative Expenses,
including stock-based
compensation of $12,563,
$2,043 and $5,115,
respectively 16,356 3,836 10,536
------ ----- ------
Loss from operations (16,258) (3,834) (10,187)
Interest expense (424) (374) (246)
---- ---- ----
Net loss $(16,682) $(4,208) $(10,433)
========= ======= =========
Net Loss Per Share - Basic
and Diluted $(0.42) $(0.13) $(0.14)
====== ====== ======
Weighted Average Shares
Outstanding - Basic and
Diluted 39,265,041 32,648,065 76,489,105
========== ========== ==========
See notes to consolidated financial statements.
GREEN EARTH TECHNOLOGIES, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
June 30, 2008 March 31, 2009
ASSETS (audited) (unaudited)
--------- -----------
Current assets
Cash and cash equivalents $2,015 $2,071
Trade receivables, less allowance for
doubtful accounts of $20 as of June 30,
2008 and March 31, 2009, respectively) 251 932
Inventories 1,203 2,218
Prepaid expenses 205 -
Other current assets 275 179
--- ---
Total current assets 3,949 5,400
Property and equipment, net 83 395
Intangibles, net 3,354 2,995
----- -----
$7,386 $8,790
====== ======
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $1,089 $1,396
Accrued expenses 1,106 852
Deferred revenue 292 1,463
Notes payable 550 733
--- ---
Total current liabilities 3,037 4,444
Commitments and contingencies - -
Stockholders' equity
Common stock, $0.001 par value, 200,000,000
shares authorized, 69,801,295 and
82,569,057 shares issued and outstanding,
respectively 70 82
Additional paid-in capital 21,301 29,719
Common stock subscription - 2,000
Accumulated deficit (17,022) (27,455)
------- -------
Total stockholders' equity 4,349 4,346
----- -----
$7,386 $8,790
====== ======
See notes to consolidated financial statements.