Xethanol Corp. (AMEX:XNL)
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Xethanol Corporation (AMEX: XNL), a renewable energy company, today
reported financial results for the first quarter ended March 31, 2008.
For the three months ended March 31, 2008, the company reported a net
loss of $2.0 million, or ($0.07) per share, as compared to a $5.5
million net loss, or ($0.19) per share, for the same period of the prior
year. The reduction in the net loss was primarily related to
significantly lower general and administrative costs and equity
compensation expenses compared to the same period in the prior year, as
well as a gain from the sale of a portion of the company’s
investment in New Generation Biofuels Holdings, Inc. (formerly named
H2Diesel Holdings, Inc.).
David Ames, President and CEO of Xethanol, commented, “We
continue to make progress in improving our operating results,
particularly by reducing our cost structure to fit the current size of
the business and market conditions. We are also evaluating potential
merger partners, investments, new business product lines, and
acquisitions.”
Review of the Quarter
The company reported net sales of $3.0 million in first quarter 2008,
which was a 24.3% increase over the same period in the prior year. Cost
of goods sold was $3.6 million for the year compared to $2.9 million in
the prior year. The increase was attributable to an increase in gallons
of ethanol sold at the company’s Blairstown,
Iowa ethanol plant as well as higher costs for corn and fuel for the
plant compared to the same period in the prior year.
The company had an operating loss for quarter. Because of the continued
high prices for corn and gas, on May 1, 2008 the company temporarily
ceased production of ethanol at its Blairstown plant to reduce its
operating losses. Management is monitoring the situation closely and
evaluating strategies for the plant.
General and administrative (G&A) costs were $1.7 million in first
quarter 2008 compared to $2.7 million for the comparable period in the
prior year. The reduction in G&A was primarily due to a decrease in
legal and accounting fees as well as lower costs associated with the
termination of the CoastalXethanol operations and other cost savings
measures implemented by management.
During first quarter 2008, the company reported:
1. Lower equity compensation expense of $137,000 as compared to $1.6
million in the same period of the prior year
2. A $757,000 gain on the sale of a portion of the company’s
shares of the common stock of New Generation Biofuels Holdings;
3. A $346,000 reduction in the net loss in equity of New Generation
Biofuels Holdings.
The company had cash, cash equivalents and marketable securities of
$10.1 million at March 31, 2008 and $9.5 million as of May 7, 2008.
Attached are the unaudited consolidated statement of operations for the
three months ended March 31, 2008 and 2007 and unaudited consolidated
balance sheets at March 31, 2008 and December 31, 2007. For more
information about the Company’s financial
performance, please see the Quarterly Report on Form 10-Q for the three
months ended March 31, 2008 that was filed with the SEC and which is
available at the SEC’s website at www.sec.gov.
About Xethanol Corporation
Xethanol Corporation is a renewable energy company focused on alternate
energy products and technologies as well as producing ethanol and other
co-products. Xethanol is focusing on renewable energy and clean
technology, including biomass gasification for electricity production,
wind power, solar power, energy storage, energy infrastructure, energy
efficiency, waste recycling and agricultural processes.
Xethanol has research agreements in place, including several aimed at
efficient production of cellulosic ethanol. The company is working with
some of the nation’s leading scientific
institutions, including the National Renewable Energy Lab in Golden,
Colorado; Virginia Tech in Blacksburg, Virginia; the USDA Forest
Products Lab in Madison, Wisconsin; and the Energy and Environmental
Research Lab in Grand Forks, North Dakota.
For more information about Xethanol, please visit its website at http://www.xethanol.com.
Forward Looking Statements
Some of the statements made in this press release may constitute
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. These forward-looking statements are
based on management’s current expectations and
include known and unknown risks, uncertainties and other factors, many
of which the company is unable to predict or control, that may cause the
company’s actual results or performance to
differ materially from any future results or performance expressed or
implied by such forward-looking statements. These statements involve
risks and uncertainties, including risks and uncertainties associated
with the company’s business and cost
reduction strategies and its research projects. These risks and
uncertainties are in addition to other factors detailed from time to
time in the company’s filings with the SEC,
including the section entitled “Risk Factors”
in its annual report on Form 10-K for the year ended December 31, 2007
filed with the SEC on March 31, 2008. The company cautions investors
that any forward-looking statements made by the company are not
necessarily indicative of future performance. The company is not
responsible for updating the information contained in this press release
beyond the published date, or for changes made to this document by wire
services or Internet services.
XETHANOL CORPORATION
Consolidated Statement of Operations
(in thousands, except per share data)
Three Months Ended March 31,
2008
2007
(Unaudited)
(Unaudited)
Net sales
$
3,012
$
2,423
Cost of sales, including depreciation of $115 and $113 for 2008
and 2007, respectively
3,561
2,884
Gross loss
(549
)
(461
)
Operating expenses:
General and administrative expenses
1,740
2,733
Equity compensation
137
1,559
Depreciation and amortization
18
17
Research and development
65
272
Total operating expenses
1,960
4,581
Loss from operations before other income (expense)
(2,509
)
(5,042
)
Other income (expense):
Interest income
72
140
Interest expense
(13
)
(14
)
Gain on sale of investment in New Generation Biofuels Holdings, Inc.
757
-
Loss on equity of New Generation Biofuels Holdings, Inc.
(280
)
(626
)
Other income
1
1
Total other (expense) income
537
(499
)
Net loss
$
(1,972
)
$
(5,541
)
Basic and diluted net loss per share
$
(0.07
)
$
(0.19
)
Weighted average number of shares outstanding
28,609,103
28,543,468
XETHANOL CORPORATION
Consolidated Balance Sheets
(in thousands)
March 31, 2008
December 31, 2007
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents
$
10,135
$
12,322
Receivables
415
564
Inventories
290
294
Other current assets
1,050
879
Total current assets
11,890
14,059
Property and equipment, net
4,191
4,316
Property held for development
554
554
Property previously held for development
5,416
5,416
Investment in and advances to New Generation Biofuels Holdings, Inc.
347
647
Research and license agreements, net of amortization of $477 and
$409 in 2008 and 2007, respectively
555
623
Other assets
1,154
403
TOTAL ASSETS
$
24,107
$
26,018
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued expenses
$
3,151
$
3,221
Total current liabilities
3,151
3,221
Note payable
291
295
Minority interest
116
116
Capitalized lease obligation
12
14
Total liabilities
3,570
3,646
Commitments and contingencies
Stockholders' equity:
Preferred stock, $0.01 par value, 1,000,000 shares authorized; 0
shares issued and outstanding
-
-
Common stock, $0.001 par value, 100,000,000 shares authorized;
28,609,103 shares issued and outstanding in 2008 and 2007,
respectively
29
29
Additional paid-in-capital
89,308
89,171
Accumulated deficit
(68,800
)
(66,828
)
Total stockholders' equity
20,537
22,372
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
$
24,107
$
26,018