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Nov 08, 2010
Syntroleum Announces Third Quarter 2010 Financial Results
 
Conference Call Scheduled for November 8, 2010
 

TULSA, OK--(Marketwire - November 8, 2010) - Syntroleum Corporation (NASDAQ: SYNM) today announced the financial results for the nine months ended September 30, 2010.

 --  Cash Position of $20.8 million compared to a cash position of $25.0
    million at December 31, 2009.
--  Net cash provided by operating activities was $943 thousand for the
    nine months ended September 30, 2010 compared to net cash provided by
    operating activities of $11.8 million for the same period in 2009.
--  Total revenue of $6.8 million for the nine months ended September 30,
    2010 compared to $26.3 million for the same period last year.
--  Total operating loss of $732 thousand for the nine months ended
    September 30, 2010 compared to operating income of $13.8 million for
    the same period last year.
--  Total net loss of $4.5 million for the nine months ended September 30,
    2010 compared to net income of $7.1 million for the same period last
    year.
--  Net loss per share of $0.06 versus income of $0.10 per share for the
    nine months ended September 30, 2010 and 2009, respectively.
 

In the last two years our operating activities have generated cash flows from the execution of key business transactions and engineering services, including a technology transfer in 2009, resulting in significant variances in revenues and cash flows.

The Dynamic Fuels' Geismar Plant is now operating and producing quality renewable diesel fuel. Syntroleum has invested $34.3 million in the joint venture with Tyson Foods, Inc. as of September 30, 2010 and funded an additional $5.0 million in October, 2010.

Dynamic Fuels LLC is a 50/50 venture of Syntroleum Corporation (NASDAQ:SYNM - News) and Tyson Foods (NYSE:TSN- News).

For additional information, see the Company's Form 10-Q for the September 30, 2010 period, filed with the SEC on Monday, November 8, 2010. The 10-Q will be available through the Investor Relations section of the Company's web site, www.syntroleum.com.

Conference Call

Syntroleum management plans to hold a conference call with the investment community on Monday, November 8, 2010, at 10:00 a.m. (11:00 a.m. Eastern). A webcast of the call will be available via the Internet by accessing www.syntroleum.com. Listeners should allow a few minutes for registration into the web site. To participate in the teleconference, investors should dial 1-877-485-3104 about 10 minutes before the start time and reference the Syntroleum conference call. International callers should dial 1-201-612-7415. A transcript of this conference call will be available on the web site under the Syntroleum Investor Relations tab.

About Syntroleum

Syntroleum Corporation owns the Syntroleum® Process for Fischer-Tropsch (FT) conversion of synthesis gas derived from biomass, coal, natural gas and other carbon-based feedstocks into liquid hydrocarbons, the Synfining® Process for upgrading FT liquid hydrocarbons into middle distillate products such as synthetic diesel and jet fuels, and the Bio-Synfining™ technology for converting animal fat and vegetable oil feedstocks into middle distillate products such as renewable diesel and jet fuel using inedible fats and greases as feedstock. The 50/50 venture -- known as Dynamic Fuels -- was formed to construct and operate multiple renewable synthetic fuels facilities, with production on the first site beginning in 2010. The Company plans to use its portfolio of technologies to develop and participate in synthetic and renewable fuel projects. For additional information, visit the Company's web site at www.syntroleum.com

This document includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as well as historical facts. These forward-looking statements may include statements relating to the Syntroleum® Process, the Synfining® Process, our renewable fuels Bio-Synfining™technology, plans to use the Company's various technologies, operational activities of the Company, commercialization of the Company's technologies, certification of Fischer-Tropsch and renewable fuels, performance and use of Syntroleum's cobalt catalyst, and performance and use of fuels derived from the Syntroleum® Process and technology test results. When used in this document, the words "anticipate," "believe," "estimate," "expect," "intend," "may," "plan," "project," "should" and similar expressions are intended to be among the statements that identify forward-looking statements. Although we believe that the expectations reflected in these forward-looking statements are reasonable, these kinds of statements involve risks and uncertainties. Actual results may not be consistent with these forward-looking statements. Syntroleum undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time. Important factors that could cause actual results to differ from these forward-looking statements include the potential that debt or equity financing for anticipated plants may not be available, the schedule for development, construction and operation of proposed plants may not be met, anticipated appropriation and expenditure of federal monies does not occur, commercial-scale plants do not achieve the same results as those demonstrated on a laboratory or pilot basis or that such plants experience technological and mechanical problems, the potential that improvements to Syntroleum's various technologies currently under development may not be successful, the impact on plant economics of operating conditions (including energy prices), construction risks, risks associated with investments and operations in foreign countries, our dependence on strategic relationships with manufacturing and engineering companies, volatility of energy prices, the ability to implement corporate strategies, including the continued availability of adequate working capital, competition, intellectual property risks, our ability to obtain financing and other risks described in the Company's filings with the Securities and Exchange Commission.

® "Syntroleum" is registered as a trademark and service mark in the U.S. Patent and Trademark Office.

 

 
SYNTROLEUM CORPORATION AND SUBSIDIARIES
UNAUDITED CONSOLIDATED BALANCE SHEETS
(in thousands, except par value)


September 30, December 31,
2010 2009
-------------- --------------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 20,827 $ 25,012
Restricted cash 1,054 449
Accounts receivable 464 3,315
Other current assets 185 378
-------------- --------------
Total current assets 22,530 29,154


PROPERTY AND EQUIPMENT - at cost, net 117 156
INVESTMENT IN DYNAMIC FUELS, LLC 35,055 27,900
OTHER ASSETS, net 1,157 1,651
-------------- --------------
$ 58,859 $ 58,861
============== ==============

LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 343 $ 361
Accrued employee costs 832 339
Deposits 1,054 449
Income tax payable - 281
Current liabilities of discontinued
operations - 417
-------------- --------------
Total current liabilities 2,229 1,847

NONCURRENT LIABILITIES OF DISCONTINUED
OPERATIONS 603 603
DEFERRED REVENUE 23,606 25,668
COMMITMENTS AND CONTINGENCIES

STOCKHOLDERS' EQUITY:
Preferred stock, $0.01 par value, 5,000
shares authorized, no shares issued - -
Common stock, $0.01 par value, 150,000
shares authorized, 78,713 and
76,014 shares issued and outstanding at
September 30, 2010 and
December 31, 2009, respectively 787 760
Additional paid-in capital 369,017 362,861
Accumulated deficit (337,383) (332,878)
-------------- --------------
Total stockholders' equity 32,421 30,743
-------------- --------------
$ 58,859 $ 58,861
============== ==============




SYNTROLEUM CORPORATION AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)


For the Three months For the Nine Months
Ended September 30, Ended September 30,
---------------------- ----------------------
2010 2009 2010 2009
---------- ---------- ---------- ----------
REVENUES:
Technology revenue $ 150 $ 3,150 $ 3,450 $ 22,353
Technical services
revenue 651 687 2,064 1,487
Technical services
revenue from Dynamic
Fuels, LLC 461 574 1,276 2,233
Other revenues - - - 222
---------- ---------- ---------- ----------
Total revenues 1,262 4,411 6,790 26,295
---------- ---------- ---------- ----------

COSTS AND EXPENSES:
Engineering 828 629 1,952 2,835
Depreciation and
amortization 50 88 166 276
General, administrative
and other (including
non-cash equity
compensation of
$273 and $583 for the
three months ended
September 30, 2010 and
2009, respectively, and
$1,299 and $3,594 for the
nine months ended
September 30, 2010 and
2009, respectively.) 1,577 2,141 5,404 9,378
---------- ---------- ---------- ----------

OPERATING INCOME (LOSS) (1,193) 1,553 (732) 13,806

INVESTMENT AND INTEREST
INCOME 11 20 25 83
LOSS IN EQUITY OF DYNAMIC
FUELS, LLC (980) (844) (2,845) (4,013)
OTHER INCOME, net 4 50 66 58
FOREIGN CURRENCY EXCHANGE (1,701) (1,021) (1,155) (2,733)
---------- ---------- ---------- ----------

INCOME (LOSS) FROM
CONTINUING OPERATIONS (3,859) (242) (4,641) 7,201
---------- ---------- ---------- ----------

INCOME (LOSS) FROM
DISCONTINUED OPERATIONS (24) (28) 136 (98)
---------- ---------- ---------- ----------

NET INCOME (LOSS) $ (3,883) $ (270) $ (4,505) $ 7,103
========== ========== ========== ==========

BASIC NET INCOME (LOSS) PER
SHARE:
Income (loss) from
continuing operations $ (0.05) $ 0.00 $ (0.06) $ 0.10
Income (loss) from
discontinued
operations 0.00 0.00 0.00 0.00
---------- ---------- ---------- ----------
Net income (loss) $ (0.05) $ 0.00 $ (0.06) $ 0.10
========== ========== ========== ==========
DILUTED NET INCOME (LOSS)
FROM CONTINUING
OPERATIONS PER SHARE: $ (0.05) $ 0.00 $ (0.06) $ 0.10
========== ========== ========== ==========
WEIGHTED AVERAGE COMMON
SHARES OUTSTANDING:
Basic 78,222 72,540 77,205 70,015
========== ========== ========== ==========
Diluted 78,222 72,540 77,205 72,536
========== ========== ========== ==========




SYNTROLEUM CORPORATION AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)


For the Nine Months
Ended September 30,
----------------------
2010 2009
---------- ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $ (4,505) $ 7,103
Income (loss) from discontinued operations 136 (98)
---------- ----------
Income (loss) from continuing operations (4,641) 7,201
Adjustments to reconcile net income (loss) to net
cash provided by (used in) operating activities:
Depreciation and amortization 166 276
Abandoned patent write-off 466 -
Foreign currency exchange 1,155 2,733
Non-cash compensation expense 1,299 3,594
Non-cash loss in equity method investee 2,845 4,013
(Gain)/loss on sale of assets - 81
Changes in assets and liabilities:
Accounts receivable 2,851 (6,068)
Other assets 106 (41)
Accounts payable (18) (189)
Accrued liabilities and other 212 814
Deferred revenue (3,217) (197)
---------- ----------
Net cash provided by continuing operations 1,224 12,217
Net cash used in discontinued operations (281) (424)
---------- ----------
Net cash provided by operating activities 943 11,793
---------- ----------

CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment (14) (718)
Proceeds from disposal of property and equipment - 505
Investment in Dynamic Fuels, LLC (10,000) (6,000)
---------- ----------
Net cash used in investing activities (10,014) (6,213)
---------- ----------

CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from sale of common stock, warrants
and option exercises 191 426
Proceeds from common stock purchase agreement 4,695 -
Repurchase of stock option awards - (945)
---------- ----------
Net cash provided by (used in) financing
activities 4,886 (519)
---------- ----------

NET CHANGE IN CASH AND CASH EQUIVALENTS (4,185) 5,061
CASH AND CASH EQUIVALENTS, beginning of period 25,012 10,101
---------- ----------
CASH AND CASH EQUIVALENTS, end of period $ 20,827 $ 15,162
========== ==========

 

Contact:



Contact:
Amanda Burns
Syntroleum Corporation
(918) 764-3480
www.syntroleum.com

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