Syntroleum Corporation today announced unaudited financial results for the third quarter ended September 30, 2006. The Company reported a net loss of $13.0 million, or ($0.23) per share, for the current quarter compared to a net loss of $15.4 million, or ($0.28) per share, for the third quarter of 2005. The Company incurred a net loss of $41.6 million, or ($0.74) per share, for the nine months ended September 30, 2006, compared to a net loss of $27.6 million, or ($0.52) per share, during the same period of 2005. The Company’s cash balance at September 30, 2006 was $38.3 million. This compares to a cash balance of $69.7 million at December 31, 2005. “We expect the substantial cost savings brought about by the completion of our data accumulation program with regards to catalyst life and quality of fuels and our operational streamlining to have a positive impact on our bottom line,” said Jack Holmes, president and CEO of Syntroleum. “We believe that the Company’s operating life has been extended as a result, affording us additional time to continue the job of commercializing our technology and evaluate ways to further strengthen our balance sheet.”
Third quarter 2006 revenues were $2.9 million, an increase of $2.2 million from the third quarter of 2005. The increase in revenues is the result of revenues related to joint development agreements with the United States Department of Defense and GTL fuel sales to both the United States Department of Transportation and Department of Defense.
The Company incurred expenses for the quarter ended September 30, 2006 of $5.4 million related to research, development, and engineering programs, including $2.0 million of expenditures at its Catoosa Demonstration Facility, compared to $5.4 million for these activities in the quarter ended September 30, 2005. General, administrative and other expenses for the quarter ended September 30, 2006 were $7.5 million, including $1.7 million for non-cash equity compensation. This compares to $4.9 million of general, administrative and other expenses for the same period last year, including $0.5 million of non-cash equity compensation.
Depreciation, depletion, impairment, and amortization for the quarter ended September 30, 2006 was $2.8 million compared to $3.6 million for the same period in 2005. Other income (expense) for the quarter ended September 30, 2006 was an expense of $0.3 million, compared to $25,000 of other income for the same period last year. The variance is the result of foreign currency exchange rates in the third quarter of 2006.