Gevo(US:GEVO)2020-08-11 00:01Financial Data and Key Metrics Changes - Gevo reported revenue of $1 million in Q2 2020, down from $5.1 million in Q2 2019 [16] - Hydrocarbon revenue increased to $0.9 million in Q2 2020 from $0.1 million in Q2 2019 due to higher shipments from the demonstration plant [16] - Revenue from ethanol sales at the Luverne facility dropped to $0.1 million in Q2 2020 from $5.0 million in Q2 2019, attributed to COVID-19 impacts [17] - Cost of goods sold decreased to $2.6 million in Q2 2020 from $8.5 million in Q2 2019 [17] - Gross loss improved to $1.7 million in Q2 2020 from $3.3 million in Q2 2019 [18] - Net loss was $6.0 million in Q2 2020, compared to a loss of $7.1 million in Q2 2019 [20] - Non-GAAP adjusted net loss was $5.8 million in Q2 2020, compared to $7.2 million in Q2 2019 [20] Business Line Data and Key Metrics Changes - Hydrocarbon sales increased significantly due to higher shipments from the demonstration plant [16] - Ethanol production was terminated in March 2020, leading to a significant drop in related revenue [17] Market Data and Key Metrics Changes - The company is focusing on expanding its hydrocarbon product offerings in response to market demand for renewable fuels [10][11] - There is a growing interest in high-octane renewable gasoline, driven by the shift towards higher compression engines [25][40] Company Strategy and Development Direction - Gevo aims to transition to a project developer and technology licensor model, requiring additional plant sites to meet contract demand [11] - The company is exploring off-balance sheet financing for new plant projects, working with Citigroup to raise necessary capital [12] - Gevo is focused on commercializing hydrocarbons, particularly renewable gasoline and jet fuel, as part of its core strategy [29][40] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about securing new contracts and expanding production capabilities despite challenges posed by COVID-19 [10][15] - The company anticipates significant announcements regarding project financing and licensing agreements in the near future [14][15] - There is a recognition of the increasing pressure on companies to address greenhouse gas emissions, which may drive demand for Gevo's products [43][45] Other Important Information - Gevo ended Q2 2020 with approximately $6.3 million in cash and reported a cash burn rate of about $1 million per month [55] - The company received approximately $1 million in SBA loans as part of the PPP loan process, which are potentially forgivable [64] Q&A Session Summary Question: Any color on the two commercial agreements highlighted in the press release? - Management confirmed that the agreements relate to off-take and licensing agreements, emphasizing the ongoing demand for renewable fuels [24] Question: Are these agreements expected in Q3 or Q4? - Management indicated that while they expected to finalize agreements sooner, delays have occurred [27] Question: Are there plans to produce high-quality alcohols or hand sanitizers? - Management stated that such production would not align with their core strategy and would not be economically viable [29] Question: Can you expand on how isooctane renewable gasoline will be used? - Management explained that isooctane is a major component of gasoline and can be blended or used as a complete fuel replacement, fitting well with market demands for higher octane fuels [39][40] Question: What is the current status of project financing? - Management confirmed that they are targeting project financing in the $700 million range, with a mix of equity and debt [52] Question: What is the current cash burn rate? - Management indicated a cash burn rate of about $1 million per month, which could increase depending on production activities [55] Question: What is the current number of shares outstanding? - Management confirmed approximately 53.8 million shares outstanding as of the latest update [62]