Evolution Resources: Financial Results 2009
Evolution Resources, Inc., an advanced biofuels production company focused on the production of cellulosic ethanol and biodiesel using the latest in modern processes and technologies, reports financial results for the period from April 9, 2009 (Inception) to October 31, 2009.
A pending dividend of Evolution Resources' common stock held by Evolution Fuels, Inc. (Pink Sheets:EVFN - News) to shareholders of Evolution Fuels was announced last Friday, November 27, 2009.
As a development stage company, net income from inception through October 31, 2009 was $5.3 million, primarily from an extraordinary gain of $10.3 million relating to the Liquafaction Corporation ("Liquafaction") acquisition. Loss per common share from continuing operations was $0.29. Net income per common share from the extraordinary gain on acquisition was $0.59. Net income per common share was $0.30.
Evolution Resources completed the acquisition of Liquafaction on July 14, 2009, which included existing ethanol components and equipment worth over $15 million. The Company plans to develop this existing infrastructure into a 4 million gallon per year (mmgy) cellulosic ethanol production facility.
"This facility, located in Moses Lake, Washington, is attractive due to its existing ethanol components and equipment and its close proximity to the area's large availability of straw biomass, which will be used as the raw material for the cellulosic production," said Dennis McLaughlin CEO of Evolution Resources. "Since initial design work for the project has already been completed and certain permits for ethanol production already exist at the facility, we estimate we can be online in as little as seven months from initial construction."
Fiscal Year 2009 Developments
On July 14, 2009, Evolution completed the Liquafaction acquisition, which included a total of approximately $15.7 million of facilities and equipment. Of this amount, $5.2 million is not needed for the completion of the cellulosic ethanol facility and will be classified as excess equipment held for sale.
On August 17, 2009, in conjunction with the acquisition of Liquafaction, Evolution applied for a grant/loan provided by the Washington State Department of Commerce. The Company applied for the grant in order to assist funding efforts toward its planned cellulosic ethanol project located in Moses Lake.
"Although the purchase of Moses Lake facility is an important aspect of our initial cellulosic ethanol development, it represents a relatively small prelude to our grander vision of developing a 60 million gallon per year production facility to be located adjacent to a wood pulping operation," said Mr. McLaughlin.
Historically, ethanol has been produced mostly from sugars or starches, obtained from sources like sugar cane and corn. In contrast, cellulosic ethanol is obtained from cellulose, the main component of wood, straw and much of the structure of plants. A significant advantage of cellulosic ethanol is that cellulose does not compete with the production of food stuffs, and many sources of cellulose, such as forestry residues, waste paper and municipal solid waste, are often available for relatively low cost, or are even free.
Due to the decline in general economy, which hit the renewable energy industry particularly hard, Evolution Resources has researched and discovered a number of financially troubled opportunities that could enable the Company to potentially acquire these assets at extremely attractive prices, with the potential of a significant increase in value when the economy returns and the demand for energy increases.
Mr. McLaughlin concluded, "We are concentrating a majority of our efforts for large scale cellulosic ethanol and biodiesel production projects in the Mississippi and Louisiana Delta area, where we have garnered significant governmental support from these two states. The team assembled at Evolution Resources is extremely excited about our potential to repurpose large scale facilities for various biofuels at extremely attractive prices and we look forward to keeping our shareholders informed of our future opportunities and developments."
About Evolution Resources, Inc.
Evolution Resources, Inc. is a renewable energy company focused on the production of cellulosic ethanol and biodiesel transportation fuels. Presently, the company is perusing certain proposed projects that will leverage existing distressed assets and infrastructure in Washington, Mississippi and the Louisiana Delta area. The Company's website, www.evoresources.com, provides more information on Evolution Resources.
Forward-Looking Statements Disclosure
This press release may contain "forward-looking statements" within the meaning of the federal securities laws. In this context, forward-looking statements may address the Company's expected future business and financial performance, and often contain words such as "anticipates," "believes," "estimates," "expects," "intends," "plans," "seeks," "will," and other terms with similar meaning. These forward-looking statements by their nature address matters that are, to different degrees, uncertain. Although the Company believes that the assumptions upon which its forward-looking statements are based are reasonable, it can provide no assurances that these assumptions will prove to be correct. In connection with the "safe harbor" provisions of the federal securities laws, including the Private Securities Litigation Reform Act of 1995, important factors that, among others, could cause or result in actual results and experience to differ materially from the Company's anticipated results, projections, or other expectations are disclosed in the Company's filings with the Securities and Exchange Commission. All forward-looking statements in this press release are expressly qualified by such cautionary statements, risks, and uncertainties, and by reference to the underlying assumptions.
Evolution Resources, Inc.
Randy Hepler - Media and Investor Relations