KiOR Reports Second Quarter Financial Results
KiOR Receives $148.7 Million Net IPO Proceeds
Columbus on Schedule for Production in Second Half of 2012
PASADENA, Texas--(BUSINESS WIRE)--
KiOR, Inc. (NASDAQ: KiOR), a next-generation renewable fuels company,
today announced financial results for the second quarter ended June 30,
2011.
For the second quarter of 2011, KiOR reported a net loss of $21.0
million, or $0.43 per share, compared to $19.4 million, or $0.27 per
share, for the second quarter of 2010. KiOR's second quarter 2011 loss
includes $5.5 million of non-cash mark-to-market expense relating to
KiOR's warrant liabilities and $2.6 million of non-cash stock-based
compensation expense.
KiOR did not recognize revenue during the second quarter of 2011, as its
activities have been 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 $7.7 million in the second quarter of 2011, an
increase from $4.2 million for the same period in 2010, due primarily to
the year-over-year expansion of R&D staff and increased laboratory
activities.
General and administrative expenses for the second quarter of 2011
increased to $7.2 million from $2.1 million for the same period in 2010,
primarily due to a $2.3 million year-over-year increase in non-cash
stock-based compensation expense and $1.4 million of consulting costs
primarily related to financing efforts and product stewardship.
Depreciation and amortization expenses in the second quarter of 2011
increased to $0.6 million, from $0.4 million for the same period in 2010.
Capital investment during the quarter was $35.6 million, substantially
all of which related to KiOR's Columbus facility.
As of June 30, 2011, KiOR had cash and cash equivalents of $207.6
million, taking into account the $137.5 million of net proceeds received
June 29, 2011 from its initial public offering. Earlier in the second
quarter of 2011, KiOR issued Series C Convertible Preferred Stock for
total gross proceeds of $55.0 million. Also during the second quarter of
2011, KiOR received proceeds of $39.4 million under its $75.0 million
loan agreement with the Mississippi Development Authority relating to
the Columbus facility.
"During the second quarter we made significant construction progress on
our first commercial production facility in Columbus, Mississippi. We
also signed commercial offtake and feedstock arrangements covering 100%
of the facility's anticipated offtake capacity and feedstock
requirements," said Fred Cannon, KiOR's President and Chief Executive
Officer. "With construction at Columbus on schedule, we believe that
KiOR is on track to commence production in the second half of 2012,"
concluded Cannon.
On June 29, 2011, KiOR completed its initial public offering, issuing 10
million shares of Class A Common Stock resulting in net proceeds of
$137.5 million. Subsequent to quarter end, KiOR issued an additional
800,000 shares of Class A Common Stock pursuant to the partial exercise
of the underwriters' over-allotment option in the initial public
offering, resulting in an additional $11.2 million net proceeds.
Conference Call Information
The Company will discuss these results on a conference call scheduled
for today at 4:30 p.m. EDT (3:30 p.m. CDT). 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, August 16, 2011 at 7:30 p.m. EDT (6:30 p.m.
CDT) 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 4962107. A replay of
the webcast will be available on the investor relations section of the
Company's 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 proprietary technology platform to convert biomass into
renewable crude oil. The renewable crude oil is processed using standard
refinery equipment into gasoline, diesel and fuel oil blendstocks that
are expected to be compatible with the existing fuel infrastructure.
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
release involve a number of risks and uncertainties. The Company's
actual future results may differ significantly from the results
discussed in the forward-looking statements contained in this release.
Important factors that might cause such a difference include, but are
not limited to, risks associated with: unexpected or unanticipated costs
related to the construction and commencement of operations of our
biomass-to-fuel facility in Columbus, Mississippi; the accuracy of our
estimates regarding expenses, future revenue and capital requirements;
the timing of the construction and commencement of operations at our
planned commercial production facilities; achievement of advances in our
technology platform and process design, including improvements to our
yield; our ability to produce renewable crude oil and blendstocks at
commercial scale; government regulatory certification, including
certification of our gasoline and diesel blendstocks as cellulosic
biofuels and registration of our blendstocks with the U.S. Environmental
Protection Agency as fuels; and government policymaking and incentives
relating to renewable fuels. Such factors and others are discussed more
fully in the section entitled "Risk Factors" in the Company's 424B4
prospectus as filed with the United States Securities and Exchange
Commission on June 24, 2011, which "Risk Factors" discussion is
incorporated by reference in this press release. 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 Company's estimates or views as of any
date subsequent to the date of this press release.
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KiOR, Inc
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Condensed Consolidated Statement of Operations
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(Unaudited)
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(In thousands, except share and per share amounts)
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|
|
|
|
|
Three Months Ended
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Six Months Ended
|
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|
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June 30,
|
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June 30,
|
|
|
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2011
|
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2010
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Operating expenses:
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development expenses
|
|
$
|
(7,723)
|
|
$
|
(4,240)
|
|
$
|
(14,994)
|
|
$
|
(8,621)
|
|
General and administrative expenses
|
|
|
(7,161)
|
|
|
(2,122)
|
|
|
(11,350)
|
|
|
(3,348)
|
|
Depreciation and amortization expenses
|
|
|
(563)
|
|
|
(406)
|
|
|
(1,085)
|
|
|
(685)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from operations
|
|
|
(15,447)
|
|
|
(6,768)
|
|
|
(27,429)
|
|
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(12,654)
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Other income (expense), net:
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|
|
|
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|
|
|
|
|
|
|
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Interest income
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
2
|
|
Beneficial conversion feature expense related to convertible
promissory note
|
|
|
—
|
|
|
(10,000)
|
|
|
—
|
|
|
(10,000)
|
|
Interest expense, net of amounts capitalized
|
|
|
—
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|
|
(356)
|
|
|
—
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|
|
(722)
|
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Foreign currency gain (loss)
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|
|
—
|
|
|
16
|
|
|
—
|
|
|
24
|
|
Loss from change in fair value of warrant liability
|
|
|
(5,504)
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|
|
(2,290)
|
|
|
(6,914)
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|
|
(2,290)
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|
|
|
|
|
|
|
|
|
|
|
|
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Other expense, net
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|
(5,504)
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|
(12,628)
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(6,914)
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|
|
(12,986)
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|
|
|
|
|
|
|
|
|
|
|
|
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Loss before income taxes
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|
(20,951)
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|
(19,396)
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|
(34,343)
|
|
|
(25,640)
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense - current
|
|
|
—
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|
|
—
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|
|
—
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|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
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Net loss
|
|
$
|
(20,951)
|
|
$
|
(19,396)
|
|
$
|
(34,343)
|
|
$
|
(25,640)
|
|
Deemed dividend related to the beneficial conversion feature of
Series C convertible preferred stock
|
|
|
(19,669)
|
|
|
—
|
|
|
(19,669)
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Net loss attributable to stockholders
|
|
$
|
(40,620)
|
|
$
|
(19,396)
|
|
$
|
(54,012)
|
|
$
|
(25,640)
|
|
Net loss per share of Class A and B common stock, basic and diluted
|
|
$
|
(0.43)
|
|
$
|
(0.27)
|
|
$
|
(0.60)
|
|
$
|
(0.39)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average Class A and B common shares outstanding, basic and
diluted
|
|
|
19,208
|
|
|
15,580
|
|
|
17,820
|
|
|
15,180
|
|
|
|
|
|
|
|
|
|
|
|
|
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KiOR, Inc.
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Condensed Consolidated Balance Sheets
|
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(Unaudited)
|
|
(In thousands)
|
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|
|
|
|
June 30,
|
|
|
December 31,
|
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|
|
2011
|
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|
2010
|
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|
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Assets
|
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|
|
|
|
|
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Current assets:
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
207,577
|
|
|
$
|
51,350
|
|
Restricted cash
|
|
|
100
|
|
|
|
100
|
|
Prepaid expenses and other current assets
|
|
|
970
|
|
|
|
85
|
|
Total current assets
|
|
|
208,647
|
|
|
|
51,535
|
|
Property, plant and equipment, net
|
|
|
80,072
|
|
|
|
34,880
|
|
Intangible assets, net
|
|
|
2,330
|
|
|
|
2,426
|
|
Other assets
|
|
|
300
|
|
|
|
—
|
|
Total assets
|
|
$
|
291,349
|
|
|
$
|
88,841
|
|
|
|
|
|
|
|
|
|
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Liabilities, Convertible Preferred Stock and Stockholders' Equity
(Deficit)
|
|
|
|
|
|
|
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Current liabilities:
|
|
|
|
|
|
|
|
|
Current portion of long-term debt, net of discount
|
|
$
|
1,629
|
|
|
$
|
4,480
|
|
Accounts payable
|
|
|
13,472
|
|
|
|
3,207
|
|
Accrued liabilities
|
|
|
2,376
|
|
|
|
671
|
|
Convertible preferred stock warrants liability
|
|
|
—
|
|
|
|
3,185
|
|
Total current liabilities
|
|
|
17,477
|
|
|
|
11,543
|
|
Long-term debt, less current portion, net of discount
|
|
|
29,707
|
|
|
|
5,037
|
|
Total liabilities
|
|
|
47,184
|
|
|
|
16,580
|
|
Total convertible preferred stock
|
|
|
-
|
|
|
|
134,384
|
|
Total stockholders' equity (deficit)
|
|
|
244,165
|
|
|
|
(62,123)
|
|
Total liabilities, convertible preferred stock and stockholders'
equity (deficit)
|
|
$
|
291,349
|
|
|
$
|
88,841
|
|
|
|
|
|
|
|
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KiOR, Inc.
John H. Karnes, CFO
281-694-8811
Investor.relations@kior.com
or
Sapphire
Investor Relations, LLC
Erica Mannion, Investor Relations
212-766-1800,
Ext. 203
Investor.relations@kior.com
Source: KiOR, Inc.
News Provided by Acquire Media
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