Gevo (NASDAQ: GEVO) reported Q3 EPS of ($0.36), versus ($1.70) reported last year. Revenue for the quarter came in at $7.7 million, versus $6.36 million reported last year.

Outlook for 2017

The following are the operational and financial targets and milestones that Gevo has established for 2017:

• Restructure Gevo’s balance sheet in a manner that addresses the debt represented by the outstanding convertible notes and that allows Gevo to execute on its long-term strategy and business development plan. Gevo believes that this target was met as a result of the debt exchange that it concluded with WB Gevo, Ltd. on June 20, 2017.
• Obtain binding supply contracts for a combination of isobutanol and related hydrocarbon products equal to at least fifty percent (50%) of the capacity of the anticipated expanded production facility that Gevo plans to construct in Luverne, Minnesota (the “Luverne Facility Expansion”). Based on the current status of the discussions Gevo is having with potential customers, this target is not expected to be met during 2017. However, Gevo believes that this target may be achieved in 2018.
• Gevo plans to achieve a Projected Cash EBITDA Loss of $18.0 - $20.0 million for the fiscal year ending December 31, 2017. Gevo believe that it is on track to achieve this target.3

Strategic Review

Management and the Board of Directors are reviewing the Company’s strategic and financial options. Management and the Board of Directors are committed to exploring all strategic and financial options that are in the best interests of all of the Company’s stakeholders, including our stockholders, and that are designed to maximize the value of the Company. Specifically, management and the Board of Directors are exploring all options to improve the cash flow profile of the Company’s business, including the Company’s production facility located in Luverne, Minnesota (the “Luverne Facility”), to allow the Company sufficient time to develop the markets and customers for its renewable isobutanol and related hydrocarbon products.

The Company is currently engaged in discussions with several interested strategic parties regarding transactions or investments that would provide capital that would assist it in implementing its business development plans. There are no assurances that the Company will successfully complete such transactions or investments into the Company.

In line with the Company’s desire to improve the cash flow profile of the Luverne Facility, the Company decided to reduce its employee base at the Luverne Facility in October 2017 to better match industry norms in terms of staffing levels necessary to produce solely ethanol at the plant. The Company does not believe that this staffing reduction will impact its ability to periodically return to the co-production of isobutanol and ethanol, as the Company expects to temporarily shift resources from its headquarters in Englewood, Colorado to the Luverne Facility to make up for any shortfalls. The Company expects that this reduction in force, as well as the focus on ethanol production, will result in a significant decrease in controllable expenses at the Luverne Facility.

In addition, the Company is currently reviewing other initiatives to improve the cash flow profile of the Luverne Facility and its headquarter operations located in Englewood, Colorado, which it expects to undertake in the near future.

For earnings history and earnings-related data on Gevo (GEVO) click here.