Syntroleum Announces Fourth Quarter and Full Year 1999 Results
26 January 2000
Syntroleum Announces Fourth Quarter and Full Year 1999 Results
TULSA, Okla., Jan. 25 -- Syntroleum Corporation
today announced financial results for the fourth quarter and
year ended December 31, 1999.
The company reported a loss for the fourth quarter of $5.8 million, or
$.22 per share, on revenue of $.3 million. This compares to a loss of
$3 million or $.11 per share on revenue of $1.3 million in the fourth quarter
of 1998. For the full year 1999, Syntroleum reported a loss of $17.2 million,
or $.64 per share, compared to a loss of $11.7 million, or $.46 per share for
the full year 1998. The loss from operations for both the fourth quarter and
the full year are the result of ongoing research and development expenses
associated with the development and commercialization of the Syntroleum
Process and increased engineering activities related to the development of the
company's Sweetwater Project.
"Syntroleum's financial performance for the fourth quarter and full year
ended December 31, 1999 was in line with our expectations and consistent with
our increased engineering-related activities as we accelerate work on
Sweetwater," said Mark Agee, Syntroleum's president and chief operating
officer.
"Until we have positive cash flow, Syntroleum's progress will continue to
be measured by our achievement of specific technological and commercial
milestones. And by those measures, 1999 was a very good year. We made
significant progress on our technology, including the successful start-up and
operation of the pilot plant at ARCO's Cherry Point facility, which
incorporated new reactor and catalyst designs. We successfully demonstrated
the benefits of our fuels in compression ignition engines through
DaimlerChrysler's Dodge Power Wagon program and in a series of tests with
Southwest Research. Additional testing programs with Argonne National
Laboratories, Epyx Corporation (using Plug Power fuel cell stacks), Northwest
Power and the military demonstrated the dual benefit of Syntroleum fuels for
use not only in conventional engines but also in fuel cells.
"On the project development front, we are very pleased with our progress
on Sweetwater. We signed a contract with Klockner INA as the engineering,
procurement and construction firm that not only provides the project with a
world-class engineering partner, but one that has the confidence in our
technology to provide substantial performance guarantees. We believe that
with this agreement we have in hand a path to securing the debt financing for
this project. Additionally, as announced yesterday, Methanex Corporation has
agreed to make a $45 million equity investment in the project, subject to
satisfaction of certain conditions. This is a major step forward in finalizing
the necessary equity for the project.
"These are all very positive developments and evidence of the growing
requirements for clean fuels against the backdrop of rising oil prices, rising
interest from potential licensees and increasingly strict environmental
regulations. As a result of all of this, we have a very positive outlook on
2000."
Tulsa-based Syntroleum Corporation licenses its proprietary process for
converting natural gas into synthetic crude oil and transportation fuels. The
process is designed to be applied in plant sizes ranging from 2,000 barrels
per day to more than 100,000 barrels per day. Current licensees include ARCO,
Enron, Kerr-McGee, Marathon, Texaco and Repsol/YPF.
This document includes forward-looking statements as well as historical
information. Forward-looking statements include, but are not limited to,
statements relating the development and testing of the Syntroleum Process and
related technologies and products, GTL plants based on the Syntroleum Process
(including the development of planned plants), the economic use of such plants
and the continued development of the Syntroleum Process. When used in this
document, the words "believe," "expectations," "optimistic" and similar
expressions are intended to be among the statements that identify forward-
looking statements. Although Syntroleum believes that its expectations
reflected in these forward-looking statements are reasonable, such statements
involve risks and uncertainties and no assurance can be given that actual
results will be consistent with these forward-looking statements. Important
factors that could cause actual results to differ from these forward-looking
statements include the potential that commercial-scale GTL plants will not
achieve the same results as those demonstrated on a laboratory or pilot basis
or that such plants will experience technological and mechanical problems, the
potential that improvements to the Syntroleum Process currently under
development may not be successful, the impact on plant economics of operating
conditions (including energy prices), competition, intellectual property
risks, Syntroleum's ability to obtain financing and other risks described in
the company's filings with the Securities and Exchange Commission.
(R) "Syntroleum" is registered as a trademark and service mark in the U.S.
Patent and Trademark Office.
Syntroleum Corporation and Subsidiaries
Fourth Quarter 1999 Earnings* (Unaudited)
1999 1998
4th Quarter Year to Date 4th Quarter Year to Date
Revenue
Joint Development $44 $1,986 $293 $1,779
Real Estate Sales 109 1,219 856 2,416
Other 159 650 166 284
Total Revenue 312 3,855 1,315 4,479
Cost of Real Estate Sales 75 824 849 2,387
Expenses
R&D/Engineering 2,988 10,863 2,004 5,693
G&A and Other 3,393 11,190 2183 9418
Total Expense 6,381 22,053 4,187 15,111
Earnings (loss) from
Operations (6,144) (19,022) (3,721) (13,019)
Other Income(Expense) 326 1,864 677 1,308
Taxes -- -- -- --
Net Earnings (loss) $(5,818) $(17,158) $(3,044) $(11,711)
Earnings Per Share
Basic and Diluted $(0.22) (0.64) $(0.11) (0. 46)
Earnings Per Share
Weighted Average
Shares Outstanding 26,923,065 26,905,853 25,900,052 25,466,737
* All numbers in thousands except earnings per share and shares
outstanding.
Syntroleum Corporation and Subsidiaries
Consolidated Balance Sheets (Unaudited)
December 31, 1999 December 31, 1998
(thousands) (thousands)
Assets
Total current assets $25,439 $39,474
Total non-current assets 14,152 10,926
Total Assets $39,591 $50,400
Liabilities and Stockholder's Equity
Total current liabilities $2,641 $1,998
Total non-current liabilities 94 103
Deferred Revenue 11,000 11,000
Minority Interests 1,024 1,337
Total Liabilities 14,759 14,438
Total Stockholder's Equity 24,832 35,962
Total Liabilities and Equity $39,591 $50,400