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New Generation Biofuels Reports Q3 2009 Net Loss of $2.3M
COLUMBIA, Md. -- Renewable fuels provider New Generation Biofuels Holdings, Inc. (NASDAQ:NGBF) ("NGBF" or the "Company") today announced its financial results for the quarter ended September 30, 2009.
Third Quarter Financial Results
New Generation Biofuels reported revenues of $34,412 for the most recent quarter, consisting of additional shipments of fuel under customer contracts. The Company recognized a net loss of $2.3 million for the three months ended September 30, 2009, substantially unchanged from the $2.4 million net loss for the three months ended September 30, 2008. For the first nine months of 2009, the Company had net revenues of $77,048, and a net loss of $9.7 million. The Company was still in the development stage during 2008, and during the first nine months of 2008 had a net loss of $7.4 million.
As of September 30th, the Company had cash on hand of approximately $1.3 million. Net cash used in operating activities was $5.2 million for the nine months ended September 2009, compared to $4.4 million in last year's comparable period.
Year-to-date Highlights and Accomplishments
-- Completed construction of first commercial-scale plant in Baltimore with an initial 5 million gallons per year capacity.
-- Signed 7 sales contracts for potential customer orders of over 10 million gallons on an annual basis
-- Completed 28 production runs at our Baltimore facility.
-- Produced and delivered 140,000 gallons of biofuel to customers.
-- Streamlined and reduced operating costs by moving our headquarters to Columbia, Maryland, closer to our biofuel production facility.
-- Blended our biofuel with #6 Diesel fuel to diversify our product applications and expand our potential markets.
-- Executed non-binding Letters of Intent (LOI) under which businesses in Costa Rica, Puerto Rico and Canada are evaluating licensing our technology with the intent of constructing biofuel manufacturing facilities and marketing NGBF biofuel. These LOIs contemplate payment to NGBF of a fee per gallon of fuel produced and sold.
-- Raised $6.4 million in gross proceeds, and $5.8 million in net proceeds, through two common stock equity offerings, providing the Company with additional capital to fund our business plans.
-- Expanded our license agreement with PTJ Bioenergy Holdings Ltd., or PTJ, the licensor of NGBF's renewable biofuel technology, to capture a cross-licensing royalty equal 5% of PTJ's revenues outside of our territory, which includes North America, Central America and the Caribbean and a 5% sales commission payable by PTJ to us if we introduce PTJ to a potential customer or otherwise substantially assist PTJ in the making of any sale outside of our territory.
"I am very pleased with the progress New Generation has made over the past two quarters as we focused the business on sales growth and cost control. I am particularly enthusiastic about the demand that we've experienced for our product since we opened our production facility in Baltimore, having signed seven contracts and received several repeat orders from these customers after burning our fuel. We are focused on executing our business plan as we continue to transition the business from a development stage enterprise to a commercial business." said Cary J. Claiborne, President and Chief Executive Officer of New Generation. "We are focused on continuing to optimize our production process and expand the number of feedstocks that can be used to produce our fuels, providing more diverse product applications, such as blending with #6 Diesel, to new and existing customers."
Webcast and Conference Call
The Company has scheduled a webcast and conference call to discuss its financial results today, November 13, 2009 at 11:00 AM Eastern. To access the webcast, visit the Investor Relations section of the company's website at
http://www.newgenerationbiofuels.com/investor.... Interested parties may participate in the conference call by dialing 877-941-6011 (U.S. participants) or 1-480-248-5080 (international participants) 5-10 minutes prior to the start of the call.
A replay of the conference call will be available from 5:00 PM EST on November 13, 2009 through 11:59 PM EST on December 14, 2009 by dialing 800-406-7325, access code 4182697. To access a replay of the webcast, visit the Investor Relations section of the company's website at
http://www.newgenerationbiofuels.com/investor....
About New Generation Biofuels, Holdings, Inc.
New Generation Biofuels is a renewable fuels provider. New Generation Biofuels holds an exclusive license for North America, Central America and the Caribbean to commercialize proprietary technology to manufacture alternative biofuels from plant oils and animal fats that it markets as a new class of biofuel for power generation, commercial and industrial heating and marine use. The Company believes that its proprietary biofuel can provide a lower cost, renewable alternative energy source with significantly lower emissions than traditional fuels. New Generation Biofuels' business model calls for establishing direct sales from manufacturing plants that it may purchase or build and sublicensing its technology to qualified licensees.