GreenHunter Energy Inc (GRH, Financial) filed Quarterly Report for the period ended 2009-03-31.
GREENHUNTER ENERGY Inc. was formed to assemble and manage a portfolio of renewable energy assets and clean fuels assets. Several factors have converged to improve the outlook for the renewable energy market--the adoption of renewable portfolio standards; the environmental challenges posed by the continued use of non-renewable resources; the impact of weather on limited US supply and production facilities and the corresponding rising fuel prices along with the desire for energy independence. GreenHunter Energy Inc has a market cap of $26.2 million; its shares were traded at around $1.25 with and P/S ratio of 5.2.
For the quarter ended March 31, 2009, we had costs of sales and services of $5.4 million compared to $152 thousand during the quarter ended March 31, 2008. Our 2009 costs included $4.3 million of costs related to our inventory consumption and losses which includes a lower of cost or market impairment of $1.5 million related to decreases in the value of both our raw materials on hand and the biodiesel produced at the plant, and $2.8 million in costs, including feedstock and chemicals, which are directly related to the production of our biodiesel which was sold during the quarter. The remaining $1.1 million in costs of sales and services were related to our terminal operations and excess capacity while our refinery was operating, including utilities, direct labor and other production costs. The prior year cost of sales and services consisted of $113 thousand in material and freight costs and $39 thousand in operating expenses related to our terminal and methanol processing activities during the period.
Unallocated corporate SG&A decreased approximately $4.4 million between the two periods, decreasing from $6.8 million down to $2.4 million. Approximately $5.0 million of this decrease was due to employee stock option expense fell to $691 thousand from $5.7 million; primarily as a result of options which were granted during the first quarter of 2008 which vested prior to 2009. Salaries and personnel-related costs increased $418 thousand as a result of adding staff at our corporate headquarters to address the increased scope of operations and our public reporting requirements during 2008.
As of March 31, 2009, we had cash and cash equivalents of approximately $1.2 million and a working capital deficit of $53.5 million as compared to cash and cash equivalents of $11.7 million and working capital of $20.4
During the three months ended March 31, 2009, we provided cash of $573 thousand under our financing activities. These activities included issuing $1.7 million in redeemable debentures, payment of $137 thousand in deferred financing costs related to these debentures, and repayment of approximately $1.0 million under our notes payable. Details of these activities are described below:
While we do not have a formal budget in place, we plan to seek financing for approximately $850 thousand in capital projects at our Houston campus. These projects would consist of $400 thousand for glycerin desalting, $300 thousand for a water wash system, and $150 thousand for tank upgrades. If sufficient capital is available, we would also pursue completion of our glycerin refinery for a total cost of approximately $8.5 million. Currently, due to lack of operating capital and the current biodiesel market, we estimate that our Houston campus will be restricted to toll processing, terminal storage, and methanol processing activities for most of 2009.
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GREENHUNTER ENERGY Inc. was formed to assemble and manage a portfolio of renewable energy assets and clean fuels assets. Several factors have converged to improve the outlook for the renewable energy market--the adoption of renewable portfolio standards; the environmental challenges posed by the continued use of non-renewable resources; the impact of weather on limited US supply and production facilities and the corresponding rising fuel prices along with the desire for energy independence. GreenHunter Energy Inc has a market cap of $26.2 million; its shares were traded at around $1.25 with and P/S ratio of 5.2.
Highlight of Business Operations:
For the quarter ended March 31, 2009, we had total revenues of $3.2 million, consisting of $2.9 million in biodiesel sales, terminal services of $167 thousand, including storage and material handling charges, and biodiesel toll distillation revenues of $166 thousand. Revenues in the prior year period consisted of $130 thousand in methanol sales and terminal revenues of $48 thousand.For the quarter ended March 31, 2009, we had costs of sales and services of $5.4 million compared to $152 thousand during the quarter ended March 31, 2008. Our 2009 costs included $4.3 million of costs related to our inventory consumption and losses which includes a lower of cost or market impairment of $1.5 million related to decreases in the value of both our raw materials on hand and the biodiesel produced at the plant, and $2.8 million in costs, including feedstock and chemicals, which are directly related to the production of our biodiesel which was sold during the quarter. The remaining $1.1 million in costs of sales and services were related to our terminal operations and excess capacity while our refinery was operating, including utilities, direct labor and other production costs. The prior year cost of sales and services consisted of $113 thousand in material and freight costs and $39 thousand in operating expenses related to our terminal and methanol processing activities during the period.
Unallocated corporate SG&A decreased approximately $4.4 million between the two periods, decreasing from $6.8 million down to $2.4 million. Approximately $5.0 million of this decrease was due to employee stock option expense fell to $691 thousand from $5.7 million; primarily as a result of options which were granted during the first quarter of 2008 which vested prior to 2009. Salaries and personnel-related costs increased $418 thousand as a result of adding staff at our corporate headquarters to address the increased scope of operations and our public reporting requirements during 2008.
As of March 31, 2009, we had cash and cash equivalents of approximately $1.2 million and a working capital deficit of $53.5 million as compared to cash and cash equivalents of $11.7 million and working capital of $20.4
During the three months ended March 31, 2009, we provided cash of $573 thousand under our financing activities. These activities included issuing $1.7 million in redeemable debentures, payment of $137 thousand in deferred financing costs related to these debentures, and repayment of approximately $1.0 million under our notes payable. Details of these activities are described below:
While we do not have a formal budget in place, we plan to seek financing for approximately $850 thousand in capital projects at our Houston campus. These projects would consist of $400 thousand for glycerin desalting, $300 thousand for a water wash system, and $150 thousand for tank upgrades. If sufficient capital is available, we would also pursue completion of our glycerin refinery for a total cost of approximately $8.5 million. Currently, due to lack of operating capital and the current biodiesel market, we estimate that our Houston campus will be restricted to toll processing, terminal storage, and methanol processing activities for most of 2009.
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