HOUSTON, Sept. 19, 2013 /PRNewswire/ -- Synthesis Energy Systems, Inc. (Nasdaq: SYMX) today announced financial and operating results for the fourth quarter of fiscal 2013, ended June 30, 2013.
"During our 2013 fiscal year, we made important progress toward creating significant value for our shareholders by negotiating and executing a new agreement that will allow our ZZ Joint Venture plant to restart and produce revenues later this year; the Yima JV started up the project and achieved initial methanol production and sales from the plant; we signed a joint marketing agreement with GE; advancing our 'capital-lite' strategy to accelerate the commercialization of our patented technology through industry partnerships and collaborations; and other key initiatives," stated Robert Rigdon, President and CEO. "During fiscal 2014, we anticipate further progress in executing our business plan including generating revenues from our ZZ and Yima joint venture plants in China."
Fourth Quarter 2013 Financial Results (Unaudited)
Total revenue for the three months ended June 30, 2013, was $192,000 versus $284,000 for the three months ended June 30, 2012. These revenues were comprised of engineering services and feedstock studies.
The operating loss for the fourth quarter of fiscal 2013 was $5.5 million versus an operating loss of $4.2 million for the fourth quarter of fiscal 2012. The increase in operating loss was primarily due to non-cash charges including a $1.0 million write-off to general and administrative expenses of previously deferred financing costs related to the ZJX stock purchase agreement that was terminated in June 2013, and an increase in stock-based compensation expenses.
The net loss attributable to stockholders for the fourth quarter of fiscal 2013 was $5.7 million, or $(0.09) per share, versus a loss of $5.0 million, or $(0.10) per share, for the prior year's fourth fiscal quarter.
In June 2013, the Company changed its method of accounting for its investment in the Yima Joint Ventures from the equity method to the cost method. Through its interactions with the Yima Joint Ventures related to the startup and operations, the Company has concluded that at this time it does not have sufficient influence on the Yima Joint Ventures' operations to support the equity method of accounting for its investment. As a result, the Company's share of the Yima Joint Venture's net earnings or losses will not be included in the Company's consolidated financial statements after May 31, 2013.
At June 30, 2013, the Company had cash and cash equivalents of $15.9 million and working capital of $8.4 million.
Fiscal 2013 Financial Results (Unaudited)
For the fiscal year ended June 30, 2013, total revenues were $579,000 versus $3.1 million for fiscal 2012. These results included a $2.1 million decrease in product sales from the ZZ Joint Venture plant due to idling syngas production in September 2011.
Technology licensing and related services revenues were $534,000 for the year ended June 30, 2013, versus $855,000 for the prior fiscal year, and included revenues from engineering services and feedstock studies for potential customer projects.
The operating loss for fiscal 2013 was $18.4 million compared to an operating loss of $18.3 million for fiscal 2012.
The net loss attributable to stockholders for fiscal 2013 was $19.9 million or $(0.33) per share versus $19.9 million or $(0.39) per share for fiscal 2012.
Recent Corporate Highlights
Conference Call Information
Senior management will hold a conference call to review the Company's financial results for the fourth quarter of fiscal 2013 and provide a corporate update this morning at 8:30 a.m. Eastern Time.
To access the live webcast, please log on to the Company's website at www.synthesisenergy.com. Alternatively, domestic callers may participate in the live telephone conference call by dialing 1-866-652-5200 and international callers should dial 1-412-317-6060. Callers should ask for the Synthesis Energy Systems call.
An archived version of the webcast will be available on the Company's website through October 21, 2013. A telephone replay of the conference call will be available beginning approximately one hour after the completion of the call and will be available through October 21, 2013. Domestic callers can access the telephonic replay by dialling 1-877- 344-7529. International callers should dial 1-412-317-0088. The PIN access code for the live call and the replay is 10032736#.
About Synthesis Energy Systems, Inc.
SES provides technology, equipment and engineering services for the conversion of low rank, low cost coal and biomass feedstocks into energy and chemical products. Its strategy is to create value through providing technology and equipment in regions where low rank coals and biomass feedstocks can be profitably converted into high value products through SES' proprietary fluidized bed gasification technology. SES' technology gasifies coal cost effectively, without many of the harmful emissions normally associated with coal combustion plants. The primary advantages of the SES technology relative to other gasification technologies are (a) greater fuel flexibility provided by the ability to use all ranks of coal (including low rank, high ash and high moisture coals, which are significantly cheaper than higher grade coals), many coal waste products and biomass feed stocks; and (b) the ability to operate efficiently on a smaller scale, which enables the construction of plants more quickly, at a lower capital cost, and, in many cases, in closer proximity to coal sources. SES currently has offices in Houston, Texas, and Shanghai, China. For more information on SES, please visit www.synthesisenergy.com or call (713) 579-0600.
SES Forward-Looking Statements
This press release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact are forward-looking statements. Forward-looking statements are subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those projected. Among those risks, trends and uncertainties are the development stage of the operations of SES, its estimate of the sufficiency of existing capital sources, its ability to successfully develop its licensing business, its ability to raise additional capital to fund cash requirements for future investments and operations including its China platform initiative, its ability to reduce operating costs, the limited history and viability of its technology, commodity prices and the availability and terms of financing opportunities, its results of operations in foreign countries, its ability to diversify, its ability to complete the restructuring of the ZZ joint venture and production of methanol, its ability to obtain the necessary approvals and permits for future projects, the estimated timetables for achieving mechanical completion and commencing commercial operations for the Yima project as well as the ability of the Yima project to produce revenues and earnings, the sufficiency of internal controls and procedures, its ability to grow its business and generate revenues and earnings as a result of its proposed China and India platform initiatives, and its ability to develop its power business unit and marketing arrangement with GE and its other business verticals, steel and renewables. Although SES believes that in making such forward-looking statements its expectations are based upon reasonable assumptions, such statements may be influenced by factors that could cause actual outcomes and results to be materially different from those projected. SES cannot assure you that the assumptions upon which these statements are based will prove to have been correct.
SYNTHESIS ENERGY SYSTEMS, INC.
(A Development Stage Enterprise)
Consolidated Statements of Operations
(In thousands, except per share amounts)
Three Months Ended
Twelve Months Ended
Product sales and other — related parties
Technology licensing and related services
Costs and Expenses:
Costs of sales and plant operating expenses
General and administrative expenses
Stock-based compensation expense
Depreciation and amortization
Total costs and expenses
Non-operating (income) expense:
Equity in losses of joint ventures
Foreign currency (gains) losses
Less: net income (loss) attributable to noncontrolling interests
Net loss attributable to stockholders
Net loss per share:
Basic and diluted
Weighted average common shares outstanding:
Basic and diluted
SYNTHESIS ENERGY SYSTEMS, INC.
(A Development Stage Enterprise)
Consolidated Balance Sheets
Cash and cash equivalents
Prepaid expenses and other currents assets
Total current assets
Property, plant and equipment, net
Intangible assets, net
Investment in joint ventures
Other long-term assets
LIABILITIES AND EQUITY
Accrued expenses and accounts payable
Current portion of long-term bank loan
Total current liabilities
Long-term bank loan
Stockholders' Common stock, $0.01 par value: 200,000 shares authorized: 63,583 and 52,022 shares issued and outstanding, respectively
Additional paid-in capital
Deficit accumulated during development stage
Accumulated other comprehensive income
Total stockholders' equity
Noncontrolling interests in subsidiaries
Total liabilities and equity
SOURCE Synthesis Energy Systems, Inc.
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