Synthesis Energy Systems, Inc. Announces Financial Results for the Second Quarter of Fiscal 2012
"During the second quarter of 2012, we continued to execute our strategy to create value for our shareholders through technology licensing, with related engineering services and equipment sales; equity partnerships; and participation in low cost coal resources," stated
Second Quarter 2012 Financial Results (Unaudited)
Total revenue for the three months ended
Product sales from the Company's ZZ Joint Venture plant were
Technology licensing and related services revenues for the three months ended
The operating loss for the second quarter of fiscal 2012 was
The net loss attributable to stockholders for the second quarter of fiscal 2012 was
At
Corporate Highlights
- SES, China Energy and ZJX agreed to extend the closing period of their share purchase agreement through
March 31, 2012 . The extension allows time forYima Coal Industry Group Co., Ltd. ("Yima") and its advisors to complete their due diligence and reviews of Yima's proposed investment, including evaluating efficient structures for the proposed transaction. - SES and
Hai Hua continue to advance their discussions to restructure the ZZ Joint Venture for improved financial performance. A framework agreement has been signed that outlines the required steps and responsibilities of the parties. As part of the restructuring of the JV, it is contemplated thatHai Hau 's methanol unit will be integrated into the ZZ Joint Venture plant. The parties intend to complete a definitive agreement as quickly as possible with a goal to strengthen the financial performance of the ZZ Joint Venture plant by sharing in profits from the integrated methanol production. - SES continues to advance potential business development opportunities in
India on projects that include downstream products such as ammonia, liquid transportation fuels, and reducing fuel gas for steel production. - SES Resource Solutions, SES' joint venture with Midas Resources, continues to advance integrated coal resources and gasification project development opportunities in parts of
Asia andAfrica . - SES is completing the feasibility study for Ambre Energy for their coal-to-liquids project in
Queensland, Australia . The ambreCTL project study performed by SES will be incorporated into a larger plant study being performed by Ambre's engineering contractor inAustralia to be used for bank financing for the project.
Conference Call Information
Senior management will hold a conference call to review the Company's financial results for the second quarter of 2012 and provide a corporate update this morning at
To access the live webcast, please log on to the Company's Website at www.synthesisenergy.com. Alternatively, domestic callers may participate in the live telephone conference call by dialing (800) 860-2442 and international callers should dial (412) 858-4600. An archived version of the webcast will be available on the Company's website through
About
SES provides technology, equipment and engineering services for the conversion of low rank, low cost coal and biomass feedstocks into energy and chemical products. Its strategy is to create value through providing technology and equipment in regions where low rank coals and biomass feedstocks can be profitably converted into high value products through its proprietary U-GAS® fluidized bed gasification technology, which the Company licenses from the
Forward Looking Statements
This press release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact are forward-looking statements. Forward-looking statements are subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those projected. Among those risks, trends and uncertainties are the early stage of development of SES, its estimate of the sufficiency of existing capital sources, its ability to successfully develop its licensing business, its ability to raise additional capital to fund cash requirements for future investments and operations, its ability to reduce operating costs, the limited history and viability of its technology, the effect of the current international
financial crisis on its business, commodity prices and the availability and terms of financing opportunities, its results of operations in foreign countries and its ability to diversify, its ability to maintain production from its first plant in the ZZ joint venture, its ability to complete the expansion of the ZZ project, its ability to obtain the necessary approvals and permits for its Yima project and other future projects, the estimated timetables for achieving mechanical completion and commencing commercial operations for the Yima project, its ability to negotiate the terms of the conversion of the Yima project from methanol to glycol, the sufficiency of internal controls and procedures and the ability of SES to grow its business as a result of the China Energy and Zuari transactions as well as its joint venture with
Important Notice
In connection with the proposed transaction, SES has filed a preliminary proxy statement, and intends to files a definitive proxy statement, with the
You may obtain the preliminary statement and, when available, the definitive proxy statement, for free by visiting EDGAR on the
- TABLES FOLLOW -
(A Development Stage Enterprise) Consolidated Statements of Operations (In thousands, except per share amounts) (Unaudited) | ||||||||||
Three Months Ended | Six Months Ended | |||||||||
December 31, | ||||||||||
2011 | 2010 | 2011 | 2010 | |||||||
Revenue: | ||||||||||
Product sales and other — related parties | $ 19 | $ 2,579 | $ 2,121 | $ 3,997 | ||||||
Technology licensing and related services | 164 | 302 | 471 | 506 | ||||||
Other | — | — | 86 | — | ||||||
Total revenue | 183 | 2,881 | 2,678 | 4,503 | ||||||
Costs and Expenses: | ||||||||||
Costs of sales and plant operating expenses | 881 | 2,564 | 4,085 | 3,870 | ||||||
General and administrative expenses | 3,112 | 3,131 | 6,071 | 6,318 | ||||||
Project and technical development expenses | 62 | 44 | 128 | 129 | ||||||
Stock-based compensation expense | 292 | 37 | 359 | 264 | ||||||
Depreciation and amortization | 641 | 650 | 1,281 | 1,330 | ||||||
Total costs and expenses | 4,988 | 6,426 | 11,924 | 11,911 | ||||||
Operating loss | (4,805) | (3,545) | (9,246) | (7,408) | ||||||
Non-operating (income) expense: | ||||||||||
Equity in losses of joint ventures | 402 | 172 | 834 | 226 | ||||||
Foreign currency gains | (202) | (242) | (615) | (497) | ||||||
Interest income | (26) | (51) | (63) | (91) | ||||||
Interest expense | 142 | 170 | 326 | 316 | ||||||
Net loss | (5,121) | (3,594) | (9,728) | (7,362) | ||||||
Less: net loss attributable to noncontrolling interests | 74 | 33 | 141 | 59 | ||||||
Net loss attributable to stockholders | $ (5,047) | $ (3,561) | $ (9,587) | $ (7,303) | ||||||
Net loss per share: | ||||||||||
Basic and diluted | $ (0.10) | $ (0.07) | $ (0.19) | $ (0.15) | ||||||
Weighted average common shares outstanding: | ||||||||||
Basic and diluted | 50,862 | 48,429 | 50,860 | 48,390 | ||||||
(A Development Stage Enterprise) Consolidated Balance Sheets (In thousands) (Unaudited) | ||||
December 31, 2011 | June 30, 2011 | |||
ASSETS | ||||
Current assets: | ||||
Cash and cash equivalents | $ 24,390 | $ 32,176 | ||
Accounts receivable | 701 | 2,574 | ||
Prepaid expenses and other currents assets | 2,392 | 1,382 | ||
Inventory | 1,054 | 913 | ||
Total current assets | 28,537 | 37,045 | ||
Property, plant and equipment, net | 34,566 | 35,183 | ||
Intangible assets, net | 1,156 | 1,226 | ||
Investment in Yima joint ventures | 33,956 | 33,520 | ||
Other long-term assets | 3,761 | 3,000 | ||
Total assets | $ 101,976 | $ 109,974 | ||
LIABILITIES AND EQUITY | ||||
Current liabilities: | ||||
Accrued expenses and accounts payable | $ 7,386 | $ 6,113 | ||
Current portion of long-term bank loan | 2,444 | 2,380 | ||
Total current liabilities | 9,830 | 8,493 | ||
Long-term bank loan | 3,603 | 4,697 | ||
Total liabilities | 13,433 | 13,190 | ||
Equity: | ||||
Common stock, | 509 | 509 | ||
Additional paid-in capital | 205,425 | 205,055 | ||
Deficit accumulated during development stage | (121,499) | (111,912) | ||
Accumulated other comprehensive income | 4,972 | 3,848 | ||
Total stockholders' equity | 89,407 | 97,500 | ||
Noncontrolling interests in subsidiaries | (864) | (716) | ||
Total equity | 88,543 | 96,784 | ||
Total liabilities and equity | $ 101,976 | $ 109,974 | ||
SOURCE
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