Syntroleum Corp. (SYNM, Financial) filed Quarterly Report for the period ended 2010-09-30.
Syntroleum Corp. has a market cap of $151.11 million; its shares were traded at around $1.95 with and P/S ratio of 5.51. SYNM is in the portfolios of Steven Cohen of SAC Capital Advisors, Chuck Royce of Royce& Associates.
As of September 30, 2010, we had $20,827,000 in cash and cash equivalents. At September 30, 2010, we had $464,000 in accounts receivable outstanding relating to our Technical Services Revenue provided to Dynamic Fuels and other clients. We believe that all of the receivables currently outstanding will be collected and have not established a reserve for bad debts.
Cash flows provided by operations was $943,000 during the nine months ended September 30, 2010, compared to cash flows provided by operations of $11,793,000 during the nine months ended September 30, 2009. The decrease in cash flows provided by operations primarily results from the collection of revenues from technology deployment agreements of $3,000,000 in 2010 compared to $19,000,000 in 2009. Significant cash flows from technology transfer agreements are not expected to occur for the remainder of 2010.
Cash flows used in investing activities were $10,014,000 during the nine months ended September 30, 2010, compared to $6,213,000 cash flows used in investing activities during the nine months ended September 30, 2009. We funded $10,000,000 into Dynamic Fuels in 2010 through September 30, 2010, and funded an additional $5,000,000 investment in October of 2010. We utilized available cash for this investment.
Cash flows provided by financing activities during the nine months ended September 30, 2010 was $4,886,000 compared to $519,000 used in financing activities during the nine months ended September 30, 2009. The cash provided by financing activities is primarily due to net proceeds received from our stock purchase agreements with Fletcher and Energy. Fletcher purchased 1,135,374 shares of our common stock at a stock price of approximately $2.64 in April of 2010 and Energy purchased 1,058,201 shares of our common stock at a stock price of $1.89 in August of 2010.
The capital and working capital budget for Dynamic Fuels financing, construction and initial operations of the first plant to use the Companys Bio-Synfining Technology is estimated to approximately $170.0 million. Dynamic Fuels received approval from the Louisiana State Bond Commission to sell $100 million in Gulf Opportunity Zone Tax Exempt Bonds to partially finance the plant. These bonds were sold on October 21, 2008, in the amount of $100 million. Syntroleum and Tyson have made capital contributions in the amount of $34.3 million each. The remaining $5.0 million each was funded in October of 2010. Additional investments to Dynamic, if any, will be based on the entitys cash requirements, which may increase or decrease based on capital expenditure projects, working capital or production levels. The project began producing renewable fuel in October of 2010.
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Syntroleum Corp. has a market cap of $151.11 million; its shares were traded at around $1.95 with and P/S ratio of 5.51. SYNM is in the portfolios of Steven Cohen of SAC Capital Advisors, Chuck Royce of Royce& Associates.
Highlight of Business Operations:
The capital and working capital budget for Dynamic Fuels financing, construction and initial operations of the first plant to use our Bio-Synfining Technology is estimated to be approximately $170.0 million in total. Dynamic Fuels received approval from the Louisiana State Bond Commission to sell $100 million in Gulf Opportunity Tax Exempt Bonds to partially finance the plant. These bonds were sold on October 21, 2008, in the amount of $100 million and are due October 1, 2033. Syntroleum and Tyson have made capital contributions in the amount of $30.0 million each through September 30, 2010. The remaining $10.0 million in total ($5.0 million each) was funded in October of 2010. Additional investments to Dynamic, if any, will be based on the entitys cash requirements.As of September 30, 2010, we had $20,827,000 in cash and cash equivalents. At September 30, 2010, we had $464,000 in accounts receivable outstanding relating to our Technical Services Revenue provided to Dynamic Fuels and other clients. We believe that all of the receivables currently outstanding will be collected and have not established a reserve for bad debts.
Cash flows provided by operations was $943,000 during the nine months ended September 30, 2010, compared to cash flows provided by operations of $11,793,000 during the nine months ended September 30, 2009. The decrease in cash flows provided by operations primarily results from the collection of revenues from technology deployment agreements of $3,000,000 in 2010 compared to $19,000,000 in 2009. Significant cash flows from technology transfer agreements are not expected to occur for the remainder of 2010.
Cash flows used in investing activities were $10,014,000 during the nine months ended September 30, 2010, compared to $6,213,000 cash flows used in investing activities during the nine months ended September 30, 2009. We funded $10,000,000 into Dynamic Fuels in 2010 through September 30, 2010, and funded an additional $5,000,000 investment in October of 2010. We utilized available cash for this investment.
Cash flows provided by financing activities during the nine months ended September 30, 2010 was $4,886,000 compared to $519,000 used in financing activities during the nine months ended September 30, 2009. The cash provided by financing activities is primarily due to net proceeds received from our stock purchase agreements with Fletcher and Energy. Fletcher purchased 1,135,374 shares of our common stock at a stock price of approximately $2.64 in April of 2010 and Energy purchased 1,058,201 shares of our common stock at a stock price of $1.89 in August of 2010.
The capital and working capital budget for Dynamic Fuels financing, construction and initial operations of the first plant to use the Companys Bio-Synfining Technology is estimated to approximately $170.0 million. Dynamic Fuels received approval from the Louisiana State Bond Commission to sell $100 million in Gulf Opportunity Zone Tax Exempt Bonds to partially finance the plant. These bonds were sold on October 21, 2008, in the amount of $100 million. Syntroleum and Tyson have made capital contributions in the amount of $34.3 million each. The remaining $5.0 million each was funded in October of 2010. Additional investments to Dynamic, if any, will be based on the entitys cash requirements, which may increase or decrease based on capital expenditure projects, working capital or production levels. The project began producing renewable fuel in October of 2010.
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