Tuesday, August 19, 2008

WOW!!!!!!!!!!!!! I said WOWWWWW!!

Just got back in the house. Of all the days, today I helped a friend move and just sat down. I have only glanced at the 2Q and I normally do not comment for a while. But WOW! Apparently GERS has BEEN HIDING NEWS FROM US - AND IT WAS GOOD NEWS!!! The Skunk was slammed on the REVENUES ESTMATES - But that kind of slamming feels good! It was Higher that anyone (minus one knowing dude on the poll) could have expected! For those hoping to worry about something - we are not out of the woods yet - but it seems we quietly took a giant step in the right direction!


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Skunk will sleep even more soundly tonight.

"Notwithstanding any contributions to our cash flows from our equipment or culinary oil sales, or from refining and selling conventional waste fat derived biodiesel, refining the oil extracted by our three existing extraction facilities alone into biodiesel is expected to provide sufficient cash to cover all of our regular debt service and operational needs for the foreseeable future."

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Now - Did someone (besides the Skunk) finally say PROFIT!?!

"We are focused on the elimination of our net losses and transitioning to profitability by the end of this year. We plan to achieve this goal by commissioning at least seven corn oil extraction facilities on or before December 31, 2008. Combined, seven corn oil extraction facilities will produce more than 10 million gallons per year of corn oil. At current market prices, extracting and refining 10 million gallons per year of corn oil into biodiesel will produce about $1.40 per gallon, or about $14,000,000 per year, in operating income and greater than break-even profitability."

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Here is a short summary of the 2Q:
Revenues
Total revenues for the three months ended June 30, 2008 were $11,515,790 representing an increase of $9,391,385, or 442%, over the three months ended June 30, 2007 revenues of $2,124,405. Revenue for the three months ended June 30, 2008 included:
>> $3,804,553 in biofuel sales;
>> $2,523,489 in culinary oil sales; and,
>> $5,187,749 in equipment and technology sales.


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No dilution - Shares actually went from 85,031,348 three months ago to 82,751,515 now!

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To be balanced the Skunk is looking for some bad news - and I will find some if it takes me all week!! But for now you sellers will have to be satisfied with: The restructuring of the
Sustainable Selling Shareholders debt was not inked and it is now ". . . expected to be restructured in the third quarter 2008"

We had planned for 15mmgy/year corn oil capacity by EOY. The new goal appears to be about 10mmgy. But we also have 4 more COES projected for the 1st quarter.

The 20mmgy of biodiesel capacity by EOY seems reduced to 20mmgy over the next three quarters?

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This should finally put an end to the rumors on the Internet boards that GERS was in default to YAGI. On the Day Mr. Kreisler did the Skunk interview he apparently inked a deal moving the construction deadlines. As the Skunk had argued, Mr Kreisler said the schedule had changed and here it is:

"Effective July 1, 2008, the Credit Agreement was amended to extend the
commencement of payments to YAGI to October 1, 2008 and to extend all
performance timelines to December 31, 2008."


If there is still any doubt - how about this from page 48:

"ITEM 3 DEFAULTS UPON SENIOR SECURITIES
None."


Ya can argue what the definition of "is" is, but "none" settles the argument.
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TERMINNATED FOR CAUSE (another riddle answered)

"The Company is party to the matter entitled Scozzafava v. GS AgriFuels Corporation, et. al., which action was filed in the Supreme Court of the State of New York. The verified complaint seeks damages under plaintiff's former employment agreement with GS AgriFuels, plus attorney's fees and costs, relating to plaintiff's petition for additional compensation that plaintiff believes he is entitled to receive. The plaintiff's employment agreement was terminated for
cause by the Company in December 2007. The Company is preparing an answer to the
verified complaint and denies any liability."


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Three more COES identified as on the way!!!
Albion, Michigan & Adams, Nebraska Corn Oil Extraction 1.5 million gallons per year Q1 2009 Commissioning

Concordia, Kansas, 3.0 million gallons per year Pending Financing

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FINANCING
As a young, unattached Skunk, with more hair and less wisdom, I occasionally was made an offer by a young lady (or two). (That's the way I choose to remember it - thank you) I hope the offers we are evaluating below turn out as well.

"We are currently evaluating offers for significant new equity and debt financing to accelerate the completion of our contracted corn oil extraction, biodiesel production and oilseed crush projects. We expect to complete additional financing for this purpose during the third quarter 2008." p.34
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Now leave me alone and let me get back to reading this thing!
LOL
more later,
Skunk



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