Syntroleum Corp. (SYNM, Financial) filed Quarterly Report for the period ended 2010-03-31.
Syntroleum Corp. has a market cap of $166.2 million; its shares were traded at around $2.18 with and P/S ratio of 6.1. SYNM is in the portfolios of Chuck Royce of Royce& Associates.
General and Administrative and Other. General and administrative expenses for the quarter ended March 31, 2010 were $1,232,000 compared to $2,824,000 during the same period in 2009. The decrease primarily relates to bonus compensation granted in 2009 for the execution and delivery of technology document agreements and decreased professional fees.
Loss from Dynamic Investment. Loss from our investment in Dynamic was $746,000 for the quarter ended March 31, 2010, compared to a loss of $2,271,000 for the same period in 2009. The decrease in expense primarily resulted from the expense recorded in 2009 of $1,500,000 attributable to marking the Dynamic interest rate swap to market. The swap is discussed in Commercial and Licensee Projects. Expenditures incurred for the quarter ended December 31, 2009 for Dynamic included site rent, insurance and labor expenditures for the operations staff. The joint venture capitalizes costs associated with the construction of the plant and we expect to see income from this investment in 2010 upon the start up of commercial operations. We report our 50 percent share of Dynamic Fuels results of operations on a three month lag basis.
Cash flows provided by operations was $1,767,000 during the three months ended March 31, 2010, compared to cash flows provided by operations of $7,457,000 during the three months ended March 31, 2009. The decrease in cash flows provided by operations primarily results from the collection of revenues from technology deployment agreements of $2,750,000 in 2010 compared to $10,000,000 in 2009. Significant cash flows from technology transfer agreements are not expected to occur for the remainder 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 equal $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 $20.0 million each. The remaining estimated $15.0 million each is anticipated to be funded in the second and third quarters of 2010. We expect to fund the remaining 2010 commitment from available cash. The plant is expected to begin commercial operations by the third quarter of 2010.
Pursuant to our Registration Statement on Form S-3 (No. 333-157879) we have issued and sold 4,541,497 shares of our common stock to Fletcher International, Ltd. for an aggregate purchase price of $12 million or approximately $2.64 per share. In connection with these transactions and pursuant to such Registration Statement, Fletcher was also issued warrants to purchase an additional 5,676,871 shares of our common stock at an exercise price of approximately $3.30 per share. These shares and warrants were sold and issued in three separate closings occurring on October 14, 2009, December 30, 2009 and April 20, 2010. The terms of the offering to Fletcher were described in our Prospectus Supplement on Form 424B2 filed with the Commission on October 14, 2009, and in Current Reports on Form 8-K filed with the Commission on October 14, 2009, December 30, 2009 and April 20, 2010, the terms of which are incorporated herein by reference.
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Syntroleum Corp. has a market cap of $166.2 million; its shares were traded at around $2.18 with and P/S ratio of 6.1. SYNM is in the portfolios of 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 equal $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 $20.0 million each. The remaining estimated $30.0 million in total ($15 million each) will be funded as needed in the second and third quarters of 2010.General and Administrative and Other. General and administrative expenses for the quarter ended March 31, 2010 were $1,232,000 compared to $2,824,000 during the same period in 2009. The decrease primarily relates to bonus compensation granted in 2009 for the execution and delivery of technology document agreements and decreased professional fees.
Loss from Dynamic Investment. Loss from our investment in Dynamic was $746,000 for the quarter ended March 31, 2010, compared to a loss of $2,271,000 for the same period in 2009. The decrease in expense primarily resulted from the expense recorded in 2009 of $1,500,000 attributable to marking the Dynamic interest rate swap to market. The swap is discussed in Commercial and Licensee Projects. Expenditures incurred for the quarter ended December 31, 2009 for Dynamic included site rent, insurance and labor expenditures for the operations staff. The joint venture capitalizes costs associated with the construction of the plant and we expect to see income from this investment in 2010 upon the start up of commercial operations. We report our 50 percent share of Dynamic Fuels results of operations on a three month lag basis.
Cash flows provided by operations was $1,767,000 during the three months ended March 31, 2010, compared to cash flows provided by operations of $7,457,000 during the three months ended March 31, 2009. The decrease in cash flows provided by operations primarily results from the collection of revenues from technology deployment agreements of $2,750,000 in 2010 compared to $10,000,000 in 2009. Significant cash flows from technology transfer agreements are not expected to occur for the remainder 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 equal $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 $20.0 million each. The remaining estimated $15.0 million each is anticipated to be funded in the second and third quarters of 2010. We expect to fund the remaining 2010 commitment from available cash. The plant is expected to begin commercial operations by the third quarter of 2010.
Pursuant to our Registration Statement on Form S-3 (No. 333-157879) we have issued and sold 4,541,497 shares of our common stock to Fletcher International, Ltd. for an aggregate purchase price of $12 million or approximately $2.64 per share. In connection with these transactions and pursuant to such Registration Statement, Fletcher was also issued warrants to purchase an additional 5,676,871 shares of our common stock at an exercise price of approximately $3.30 per share. These shares and warrants were sold and issued in three separate closings occurring on October 14, 2009, December 30, 2009 and April 20, 2010. The terms of the offering to Fletcher were described in our Prospectus Supplement on Form 424B2 filed with the Commission on October 14, 2009, and in Current Reports on Form 8-K filed with the Commission on October 14, 2009, December 30, 2009 and April 20, 2010, the terms of which are incorporated herein by reference.
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