Gevo, Inc. (GEVO) saw its loss narrow to $2.29 million, or $0.33 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $7.96 million, or $8.87 a share. On the other hand, adjusted net loss for the quarter narrowed to $7.83 million, or $1.14 a share from a loss of $8.64 million or $9.62 a share, a year ago. Revenue during the quarter dropped 20.02 percent to $5.84 million from $7.30 million in the previous year period. Gross margin for the quarter stood at negative 39.75 percent as compared to a negative 23.35 percent for the previous year period.
Operating loss for the quarter was $6.49 million, compared with an operating loss of $6.59 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at negative $4.71 million compared to negative $4.22 million in the prior year second quarter. At the same time, adjusted EBITDA margin stood at negative 80.65 percent for the quarter compared to negative 57.78 percent in the last year period.
"We came a long way in 2016. On the isobutanol production front, we brought a full production line online that enabled us to hit our fermentation cycle times and our product quality and cost targets. This data is critical for building out the expanded plant and for developing appropriate pricing for sales contracts in support of this expansion. The Silsbee hydrocarbon plant at South Hampton Resources continues to operate well, producing market development quantities of isooctane and ATJ. In summary, 2016 was all about making sure the isobutanol production technology worked as it was supposed to by producing product that met specification while meeting our lower cost targets," said Dr. Patrick Gruber, Gevo’s chief executive officer.
Operating cash flow remains negative
Gevo, Inc. has spent $20.52 million cash to meet operating activities during the year as against cash outgo of $28.16 million in the last year. The company has spent $5.94 million cash to meet investing activities during the year as against cash outgo of $1.32 million in the last year.
Cash flow from financing activities was $37.31 million for the year, down 7.08 percent or $2.84 million, when compared with the last year.
Cash and cash equivalents stood at $27.89 million as on Dec. 31, 2016, up 63.75 percent or $10.86 million from $17.03 million on Dec. 31, 2015.
Debt comes down
Gevo, Inc. has recorded a decline in total debt over the last one year. It stood at $33.99 million as on Dec. 31, 2016, down 6.59 percent or $2.40 million from $36.39 million on Dec. 31, 2015.
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