x
|
QUARTERLY REPORT UNDER SECTION
13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
o
|
TRANSITION REPORT UNDER SECTION
13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
Delaware
|
84-1079971
|
|
(State
or Other Jurisdiction of
Incorporation
or Organization)
|
(IRS
Employer
Identification
No.)
|
|
1225
17th Street, Suite
1300
Denver,
Colorado
|
80202
|
|
(Address
of Principal Executive Offices)
|
(Zip
Code)
|
Large
accelerated filer o
|
Accelerated filer x
|
Non-accelerated
filer o
(Do
not check if a smaller reporting company)
|
Smaller
reporting company o
|
Page No.
|
|||||
3
|
|||||
4
|
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5
|
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6
|
|||||
7
|
|||||
21
|
|||||
26
|
|||||
26
|
|||||
|
|||||
28
|
|||||
28
|
|||||
28
|
|||||
28
|
|||||
28
|
|||||
28
|
|||||
29
|
March 31,
2008
|
December 31,
2007
|
|||||||
(in thousands)
|
||||||||
Assets
|
||||||||
Current:
|
||||||||
Cash
and cash equivalents
|
$ | 26,564 | $ | 26,958 | ||||
Accounts
receivable
|
4,796 | 6,446 | ||||||
Marketable
securities
|
2,000 | 24,500 | ||||||
Inventory
|
1,657 | 1,443 | ||||||
Prepaid
and other assets
|
2,088 | 1,940 | ||||||
Total
current assets
|
37,105 | 61,287 | ||||||
Property,
plant and equipment, net of accumulated depreciation
|
26,251 | 25,882 | ||||||
Construction
in progress
|
13,179 | 11,965 | ||||||
Mineral
rights and mine development, net of accumulated depletion
|
18,923 | 19,363 | ||||||
Restricted
cash
|
28,272 | 28,418 | ||||||
Debt
issue costs, net of amortization
|
5,355 | 5,587 | ||||||
Other
assets
|
4,058 | 4,694 | ||||||
Assets
held for sale
|
18,615 | 18,615 | ||||||
$ | 151,758 | $ | 175,811 | |||||
Liabilities
and Stockholders’ Equity
|
||||||||
Current
liabilities:
|
||||||||
Accounts
payable
|
$ | 4,899 | $ | 6,818 | ||||
Accrued
liabilities
|
6,935 | 8,697 | ||||||
Other
current liabilities
|
282 | 192 | ||||||
Total
current liabilities
|
12,116 | 15,707 | ||||||
Long-term
debt
|
97,831 | 97,971 | ||||||
Deferred
revenue, less current portion
|
6,732 | 6,732 | ||||||
Asset
retirement obligations
|
6,245 | 6,171 | ||||||
Deferred
rent and other liabilities, less current portion
|
2,405 | 2,531 | ||||||
Total
liabilities
|
125,329 | 129,112 | ||||||
Commitments
and contingencies
|
||||||||
Stockholders’
equity:
|
||||||||
Preferred
stock, $.001 par value, shares authorized 20,000; none
outstanding
|
— | — | ||||||
Common
stock, $.001 par value, shares authorized 280,000; 84,464 and 84,327
shares
issued and outstanding, respectively
|
84 | 84 | ||||||
Additional
paid-in capital
|
456,807 | 454,688 | ||||||
Accumulated
deficit
|
(430,462 | ) | (408,073 | ) | ||||
Total
stockholders’ equity
|
26,429 | 46,699 | ||||||
$ | 151,758 | $ | 175,811 |
Three Months Ended
March 31,
|
||||||||
2008
|
2007
|
|||||||
(in thousands, except for per share amounts)
|
||||||||
Operating
revenues:
|
||||||||
Mining
|
$ | 11,742 | $ | 10,942 | ||||
K-Fuel
refined coal and blended K-Fuel refined coal
|
291 | 100 | ||||||
Consulting
and other
|
— | 46 | ||||||
Total
operating revenue
|
12,033 | 11,088 | ||||||
Operating
expenses:
|
||||||||
Coal
mining operating costs
|
10,412 | 10,238 | ||||||
Plant
costs
|
11,209 | 7,893 | ||||||
General
and administrative
|
9,026 | 7,730 | ||||||
Depreciation,
depletion and amortization
|
1,989 | 1,921 | ||||||
Research
and development
|
53 | 346 | ||||||
Cost
of consulting and other revenue
|
— | 22 | ||||||
Total
operating expenses
|
32,689 | 28,150 | ||||||
Operating
loss
|
(20,656 | ) | (17,062 | ) | ||||
Other
income (expense):
|
||||||||
Interest
income
|
665 | 1,026 | ||||||
Interest
expense
|
(1,778 | ) | — | |||||
Other
(expense) income, net
|
(620 | ) | 46 | |||||
Total
other income (expense)
|
(1,733 | ) | 1,072 | |||||
Net
loss
|
$ | (22,389 | ) | $ | (15,990 | ) | ||
Basic
and diluted net loss per common share
|
$ | (0.27 | ) | $ | (0.20 | ) | ||
Weighted-average
common shares outstanding
|
83,341 | 81,433 |
Common Stock
|
Additional
Paid-in
|
Accumulated
|
||||||||||||||||||
Shares
|
Amount
|
Capital
|
Deficit
|
Total
|
||||||||||||||||
(in thousands)
|
||||||||||||||||||||
Balance
at January 1, 2008
|
84,327 | $ | 84 | $ | 454,688 | $ | (408,073 | ) | $ | 46,699 | ||||||||||
Common
stock issued on exercise of options, warrants and other
|
20 | — | 55 | — | 55 | |||||||||||||||
Share-based
compensation expense related to employees, directors and
consultants
|
117 | — | 2,086 | — | 2,086 | |||||||||||||||
Other
|
(22 | ) | (22 | ) | ||||||||||||||||
Net
loss
|
— | — | — | (22,389 | ) | (22,389 | ) | |||||||||||||
Balance
at March 31, 2008
|
84,464 | $ | 84 | $ | 456,807 | $ | (430,462 | ) | $ | 26,429 |
Three
Months Ended
March 31,
|
||||||||
2008
|
2007
|
|||||||
(As
Restated
Note
10)
|
||||||||
(in thousands)
|
||||||||
Operating
activities:
|
||||||||
Net
loss
|
$ | (22,389 | ) | $ | (15,990 | ) | ||
Adjustments
to reconcile net loss to cash used in operating
activities:
|
||||||||
Share-based
compensation expense to employees and others
|
2,086 | 2,813 | ||||||
Depreciation,
depletion and amortization
|
1,989 | 1,921 | ||||||
Asset
retirement obligation accretion
|
74 | 70 | ||||||
Derivative
fair value adjustment
|
640 | — | ||||||
Amortization
of debt issuance costs
|
246 | — | ||||||
Amortization
of initial fair value of derivative
|
(141 | ) | — | |||||
Other
|
(14 | ) | (59 | ) | ||||
Changes
in operating assets and liabilities:
|
||||||||
Accounts
receivable
|
1,644 | 740 | ||||||
Inventory
|
(214 | ) | (605 | ) | ||||
Prepaid
expenses and other assets
|
(103 | ) | (418 | ) | ||||
Deferred
revenue and other obligations
|
(35 | ) | (308 | ) | ||||
Accounts
payable and accrued expenses
|
(3,719 | ) | (3,204 | ) | ||||
Cash
used in operating activities
|
(19,936 | ) | (15,040 | ) | ||||
Investing
activities:
|
||||||||
Purchases
of construction in progress
|
(3,017 | ) | (12,332 | ) | ||||
Purchases
of property, plant and equipment
|
(128 | ) | (1,052 | ) | ||||
Purchases
of marketable securities
|
(5,000 | ) | (9,814 | ) | ||||
Proceeds
from maturities of marketable securities
|
27,500 | 24,300 | ||||||
Restricted
cash
|
146 | (2,949 | ) | |||||
Other
|
5 | 88 | ||||||
Cash
provided (used) in investing activities
|
19,506 | (1,759 | ) | |||||
Financing
Activities:
|
||||||||
Proceeds
from exercise of options and warrants
|
55 | 2,346 | ||||||
Payments
on capital leases and other
|
(19 | ) | (9 | ) | ||||
Cash
(used) provided by financing activities
|
36 | 2,337 | ||||||
Increase
(decrease) in cash and cash equivalents
|
(394 | ) | (14,462 | ) | ||||
Cash
and cash equivalents, beginning of period
|
26,958 | 47,180 | ||||||
Cash
and cash equivalents, end of period
|
$ | 26,564 | $ | 32,718 |
|
·
|
Level
1 – inputs to the valuation methodology are quoted prices
(unadjusted) for identical assets or liabilities in active
markets.
|
|
·
|
Level
2 – inputs to the valuation methodology include quoted prices for similar
assets and liabilities in active markets, and inputs that are observable
for the asset or liability, either directly or indirectly, for
substantially the full term of the financial
instrument.
|
|
·
|
Level
3 – inputs to the valuation methodology are unobservable and significant
to the fair value measurement.
|
Fair
Value Measurements Using
|
||||||||||||||||
Fair
Value
|
Quoted
Prices
in
Active
Markets
for
Identical
Assets
(Level
1)
|
Significant
Other
Observable
Inputs
(Level 2)
|
Significant
Unobservable
Inputs
(Level
3)
|
|||||||||||||
|
(
in thousands)
|
|||||||||||||||
Recurring:
|
|
|
|
|
||||||||||||
Embedded
derivatives
|
$
|
830
|
$
|
—
|
$
|
—
|
$
|
830
|
||||||||
Auction Rate Securities | 2,000 |
—
|
—
|
2,000
|
Balance
at
December
31, 2007
|
Realized
loss
|
Balance
at
March
31, 2008
|
||||||||||
|
(in
thousands)
|
|||||||||||
Embedded
derivatives (1)
|
$ | 1,470 | $ | (640 | ) | $ | 830 | |||||
Auction
Rate Securities (2)
|
2,000 | — | 2,000 |
(1)
|
We
are required to make significant estimates and assumptions when fair
valuing these derivatives including probabilities of change in control and
probabilities of our future stock prices. We use a Monte-Carlo
fair value model run with thousands of iterations to fair value our
derivative. Our embedded derivatives are recorded in other
long-term assets with the fair value adjustment recorded in other
(expense)/ income on our condensed consolidated balance sheet and our
condensed consolidated statements of operations,
respectively.
|
(2)
|
We
are required to make significant estimates and assumptions when fair
valuing auction rate securities. Our estimate is based upon
consideration of various factors including the issuer and guarantor credit
ratings, credit enhancement structures, projected yields, discount rates
and terminal periods.
|
March 31,
2008
|
March 31,
2007
|
|||||||
(in thousands)
|
||||||||
Cash
paid for interest
|
$ | 3,800 | $ | — | ||||
Interest
capitalized
|
102 | — | ||||||
Accounts
payable and accrued expenses included in construction in
progress
|
772 | 3,000 | ||||||
Accounts
payable and accrued expenses included in property, plant and
equipment
|
2 | 790 | ||||||
Transfers
from construction in progress to property, plant and
equipment
|
1,766 | 238 |
Three Months Ended March 31, 2008
|
Three Months Ended March 31, 2007
|
|||||||||||||||||||||||||||||||||||||||
Plant
|
Mining
|
C-Lock
|
Technology
|
Total
|
Plant
|
Mining
|
C-Lock
|
Technology
|
Total
|
|||||||||||||||||||||||||||||||
(in thousands)
|
||||||||||||||||||||||||||||||||||||||||
Operating
revenues:
|
||||||||||||||||||||||||||||||||||||||||
Mining
|
$ | — | $ | 11,742 | $ | — | $ | — | $ | 11,742 | $ | — | $ | 10,942 | $ | — | $ | — | $ | 10,942 | ||||||||||||||||||||
K-Fuel
refined coal and blended
K-Fuel refined coal
|
291 | — | — | — | 291 | 100 | — | — | — | 100 | ||||||||||||||||||||||||||||||
Consulting
and other
|
— | — | — | — | — | 41 | — | — | 5 | 46 | ||||||||||||||||||||||||||||||
Total
segment revenue
|
291 | 11,742 | — | — | 12,033 | 141 | 10,942 | — | 5 | 11,088 | ||||||||||||||||||||||||||||||
Operating
expenses:
|
||||||||||||||||||||||||||||||||||||||||
Coal
mining operating costs
|
— | 10, 412 | — | — | 10,412 | — | 10,238 | — | — | 10,238 | ||||||||||||||||||||||||||||||
Plant
costs
|
11,209 | — | — | — | 11,209 | 7,893 | — | — | — | 7,893 | ||||||||||||||||||||||||||||||
General
and administrative
|
1,727 | 1,136 | 1,083 | 5,080 | 9,026 | 1,447 | 1,201 | 108 | 4,974 | 7,730 | ||||||||||||||||||||||||||||||
Cost
of consulting and other
revenue
|
— | — | — | — | — | 21 | — | — | 1 | 22 | ||||||||||||||||||||||||||||||
Total
segment operating
expense:
|
12, 936 | 11, 548 | 1,083 | 5,080 | 30,647 | 9,361 | 11,439 | 108 | 4,975 | 25,883 | ||||||||||||||||||||||||||||||
Segment
operating (loss) income
|
$ | (12,645 | ) | $ | 194 | $ | (1,083 | ) | $ | (5,080 | ) | $ | (18,614 | ) | $ | (9,220 | ) | $ | (497 | ) | $ | (108 | ) | $ | (4,970 | ) | $ | (14,795 | ) | |||||||||||
Total
assets
|
$ | 2,762 | $ | 49,593 | $ | 2,147 | $ | 97,256 | $ | 151,758 | ||||||||||||||||||||||||||||||
Reconciliation
to net loss:
|
||||||||||||||||||||||||||||||||||||||||
Total
segment operating (loss) Income
|
$ | (18,614 | ) | $ | (14,795 | ) | ||||||||||||||||||||||||||||||||||
Depreciation, depletion and
Amortization
|
(1,989 | ) | (1,921 | ) | ||||||||||||||||||||||||||||||||||||
Research
and development
|
(53 | ) | (346 | ) | ||||||||||||||||||||||||||||||||||||
Other
income (expense), net
|
(1,733 | ) | 1,072 | |||||||||||||||||||||||||||||||||||||
Net
loss
|
$ | (22,389 | ) | $ | (15,990 | ) |
Three Months Ended
March 31,
2008
|
Three Months Ended
March 31,
2007
|
|||||||
Weighted-average:
|
||||||||
Risk
free interest rate
|
3.56 | % | 4.5 | % | ||||
Expected
option life (years)
|
10 | 3 | ||||||
Expected
volatility
|
72 | % | 63 | % | ||||
Expected
dividends
|
None
|
None
|
Evergreen
Energy
Inc.
|
Evergreen
Operations,
LLC
|
Other
|
Eliminations
|
Evergreen
Energy
Consolidated
|
||||||||||||||||
(in
thousands)
|
||||||||||||||||||||
Assets
|
|
|
|
|
|
|||||||||||||||
Current:
|
||||||||||||||||||||
Cash
and cash equivalents
|
$ | 24,968 | $ | — | $ | 1,596 | $ | — | $ | 26,564 | ||||||||||
Accounts
receivable, net
|
— | 4,796 | — | — | 4,796 | |||||||||||||||
Marketable
securities
|
— | — | 2,000 | — | 2,000 | |||||||||||||||
Inventory
|
— | 1,657 | — | — | 1,657 | |||||||||||||||
Prepaid
and other assets
|
1,132 | 393 | 563 | — | 2,088 | |||||||||||||||
Total
current asset
|
26,100 | 6,846 | 4,159 | — | 37,105 | |||||||||||||||
Property,
plant and equipment, net of accumulated depreciation
|
4,616 | 21,264 | 371 | — | 26,251 | |||||||||||||||
Construction
in progress
|
6,799 | 4,813 | 1,567 | — | 13,179 | |||||||||||||||
Mineral
rights and mine development, net of accumulated depletion
|
— | 18,923 | — | — | 18,923 | |||||||||||||||
Restricted
cash
|
28,272 | — | — | — | 28,272 | |||||||||||||||
Debt
issuance costs, net of amortization costs
|
5,355 | — | — | — | 5,355 | |||||||||||||||
Investment
in subsidiaries
|
(237,388 | ) | — | — | 237,388 | — | ||||||||||||||
Due
from subsidiaries
|
278,561 | — | — | (278,561 | ) | — | ||||||||||||||
Other
assets
|
2,092 | 509 | 1,457 | — | 4,058 | |||||||||||||||
Assets
held for sale
|
18,615 | — | — | — | 18,615 | |||||||||||||||
|
$ | 133,022 | $ | 52,355 | $ | 7,554 | $ | (41,173 | ) | $ | 151,758 | |||||||||
Liabilities
and Equity (Deficit)
|
||||||||||||||||||||
Current
liabilities:
|
||||||||||||||||||||
Accounts
payable
|
$ | 2,254 | $ | 2,645 | $ | — | $ | — | $ | 4,899 | ||||||||||
Accrued
liabilities
|
4,836 | 1,806 | 293 | — | 6,935 | |||||||||||||||
Other
current liabilities
|
282 | — | — | — | 282 | |||||||||||||||
Total
current liabilities
|
7,372 | 4,451 | 293 | — | 12,116 | |||||||||||||||
Long-term
debt
|
97,831 | — | — | — | 97,831 | |||||||||||||||
Deferred
revenue, less current portion
|
— | — | 6,732 | — | 6,732 | |||||||||||||||
Due
to parent
|
— | 248,452 | 30,109 | (278,561 | ) | — | ||||||||||||||
Asset
retirement obligations
|
— | 6,245 | — | — | 6,245 | |||||||||||||||
Other
liabilities, less current portion
|
1,390 | 1,015 | — | — | 2,405 | |||||||||||||||
Total
liabilities
|
106,593 | 260,163 | 37,134 | (278,561 | ) | 125,329 | ||||||||||||||
Commitments
and contingencies
|
||||||||||||||||||||
Total
equity (deficit)
|
26,429 | (207,808 | ) | (29,580 | ) | 237,388 | 26,429 | |||||||||||||
$ | 133,022 | $ | 52,355 | $ | 7,554 | $ | (41,173 | ) | $ | 151,758 |
Evergreen
Energy
Inc.
|
Evergreen
Operations,
LLC
|
Other
|
Eliminations
|
Evergreen
Energy
Consolidated
|
||||||||||||||||
(in
thousands)
|
||||||||||||||||||||
Assets
|
||||||||||||||||||||
Current:
|
||||||||||||||||||||
Cash
and cash equivalents
|
$ | 25,194 | $ | — | $ | 1,764 | $ | — | $ | 26,958 | ||||||||||
Accounts
receivable, net
|
— | 6,446 | — | — | 6,446 | |||||||||||||||
Marketable
securities
|
22,500 | — | 2,000 | — | 24,500 | |||||||||||||||
Inventory
|
— | 1,443 | — | — | 1,443 | |||||||||||||||
Prepaid
and other assets
|
928 | 785 | 227 | — | 1,940 | |||||||||||||||
Total
current assets
|
48,622 | 8,674 | 3,991 | — | 61,287 | |||||||||||||||
Property,
plant and equipment, net of accumulated depreciation
|
4,880 | 20,596 | 406 | — | 25,882 | |||||||||||||||
Construction
in progress
|
5,779 | 5,260 | 926 | — | 11,965 | |||||||||||||||
Mineral
rights and mine development, net of accumulated depletion
|
— | 19,363 | — | — | 19,363 | |||||||||||||||
Restricted
cash and marketable securities
|
28,418 | — | — | — | 28,418 | |||||||||||||||
Debt
issuance costs, net of amortization
|
5,587 | — | — | — | 5,587 | |||||||||||||||
Investment
in subsidiaries
|
(222,341 | ) | — | — | 222,341 | — | ||||||||||||||
Due
from subsidiaries
|
263,379 | — | (263,379 | ) | — | |||||||||||||||
Other
assets
|
2,731 | 509 | 1,454 | — | 4,694 | |||||||||||||||
Assets
held for sale
|
18,615 | — | — | — | 18,615 | |||||||||||||||
$ | 155,670 | $ | 54,402 | $ | 6,777 | $ | (41,038 | ) | $ | 175,811 | ||||||||||
Liabilities
and Stockholders’ Equity
|
||||||||||||||||||||
Current
liabilities:
|
||||||||||||||||||||
Accounts
payable
|
$ | 3,772 | $ | 3,046 | $ | — | $ | — | $ | 6,818 | ||||||||||
Accrued
liabilities
|
5,605 | 2,962 | 130 | — | 8,697 | |||||||||||||||
Other
current liabilities
|
192 | — | — | — | 192 | |||||||||||||||
Total
current liabilities
|
9,569 | 6,008 | 130 | — | 15,707 | |||||||||||||||
Long-term
debt
|
97,971 | — | — | — | 97,971 | |||||||||||||||
Deferred
revenue, less current portion
|
— | — | 6,732 | 6,732 | ||||||||||||||||
Due
to parent
|
— | 235,118 | 28,261 | (263,379 | ) | — | ||||||||||||||
Asset
retirement obligations
|
— | 6,171 | — | — | 6,171 | |||||||||||||||
Other
liabilities, less current portion
|
1,431 | 1,100 | — | — | 2,531 | |||||||||||||||
Total
liabilities
|
108,971 | 248,397 | 35,123 | (263,379 | ) | 129,112 | ||||||||||||||
Commitments
and contingencies
|
||||||||||||||||||||
Total
equity (deficit)
|
46,699 | (193,995 | ) | (28,346 | ) | 222,341 | 46,699 | |||||||||||||
$ | 155,670 | $ | 54,402 | $ | 6,777 | $ | (41,038 | ) | $ | 175,811 |
Evergreen
Energy
Inc.
|
Evergreen
Operations,
LLC
|
Other
|
Eliminations
|
Evergreen
Energy
Consolidated
|
||||||||||||||||
|
(in
thousands, except per share amounts)
|
|||||||||||||||||||
Operating
revenues:
|
|
|
|
|
|
|||||||||||||||
Mining
|
$ | — | $ | 11,742 | $ | — | $ | — | $ | 11,742 | ||||||||||
K-Fuel
refined coal and blended K-Fuel refined coal
|
— | 291 | — | — | 291 | |||||||||||||||
Consulting
and other to parent
|
— | 141 | — | (141 | ) | — | ||||||||||||||
Total
operating revenue
|
— | 12,174 | — | (141 | ) | 12,033 | ||||||||||||||
Operating
expenses:
|
||||||||||||||||||||
Coal
mining operating costs
|
151 | 10,261 | — | — | 10,412 | |||||||||||||||
Plant
costs
|
— | 11,189 | 20 | — | 11,209 | |||||||||||||||
General
and administrative
|
4,769 | 2,863 | 1,394 | — | 9, 026 | |||||||||||||||
Cost
of consulting revenue to parent
|
— | 141 | — | (141 | ) | — | ||||||||||||||
Depreciation,
depletion and amortization
|
410 | 1,540 | 39 | — | 1,989 | |||||||||||||||
Research
and development
|
— | — | 53 | — | 53 | |||||||||||||||
Total
operating expenses
|
5,330 | 25,994 | 1,506 | (141 | ) | 32,689 | ||||||||||||||
Operating
loss
|
(5,330 | ) | (13,820 | ) | (1,506 | ) | — | (20,656 | ) | |||||||||||
Other
income (expense):
|
||||||||||||||||||||
Interest
income
|
625 | — | 40 | — | 665 | |||||||||||||||
Interest
expense
|
(1,778 | ) | — | — | — | (1,778 | ) | |||||||||||||
Other
income, net
|
(634 | ) | 7 | 7 | — | (620 | ) | |||||||||||||
Total
other income
|
(1,787 | ) | 7 | 47 | — | (1,733 | ) | |||||||||||||
Equity
in loss of
subsidiaries
|
(15,272 | ) | — | — | 15,272 | — | ||||||||||||||
Net
loss
|
$ | (22,389 | ) | $ | (13,813 | ) | $ | (1,459 | ) | $ | 15,272 | $ | (22,389 | ) |
Evergreen
Energy
Inc.
|
Evergreen
Operations,
LLC
|
Other
|
Eliminations
|
Evergreen
Energy
Consolidated
|
||||||||||||||||
|
(in
thousands, except per share amounts)
|
|||||||||||||||||||
Operating
revenues:
|
|
|
|
|
|
|||||||||||||||
Mining
|
$ | — | $ | 10,942 | $ | — | $ | — | $ | 10,942 | ||||||||||
K-Fuel
refined coal and blended K-Fuel refined coal
|
— | 100 | — | — | 100 | |||||||||||||||
Consulting
and other
|
— | 41 | 5 | — | 46 | |||||||||||||||
Consulting
and other to parent
|
— | 127 | — | (127 | ) | — | ||||||||||||||
Total
operating revenue
|
— | 11,210 | 5 | (127 | ) | 11,088 | ||||||||||||||
Operating
expenses:
|
||||||||||||||||||||
Coal
mining operating costs
|
185 | 10,053 | — | — | 10,238 | |||||||||||||||
Plant
costs
|
— | 7,883 | 10 | — | 7,893 | |||||||||||||||
General
and administrative
|
4,636 | 2,648 | 446 | — | 7,730 | |||||||||||||||
Depreciation,
depletion and amortization
|
219 | 1,694 | 8 | — | 1,921 | |||||||||||||||
Research
and development
|
— | 47 | 299 | — | 346 | |||||||||||||||
Cost
of consulting and other revenue
|
— | 21 | 1 | — | 22 | |||||||||||||||
Cost
of consulting revenue to parent
|
— | 127 | — | (127 | ) | — | ||||||||||||||
Total
operating expenses
|
5,040 | 22,473 | 764 | (127 | ) | 28,150 | ||||||||||||||
Operating
loss
|
(5,040 | ) | (11,263 | ) | (759 | ) | — | (17,062 | ) | |||||||||||
Other
income (expense):
|
||||||||||||||||||||
Interest
income
|
1,026 | — | — | — | 1,026 | |||||||||||||||
Interest
expense
|
— | — | — | — | — | |||||||||||||||
Other
income, net
|
(4 | ) | 50 | — | — | 46 | ||||||||||||||
Total
other income
|
1,022 | 50 | — | — | 1,072 | |||||||||||||||
Equity
in loss of subsidiaries
|
(11,972 | ) | — | — | 11,972 | — | ||||||||||||||
Net
loss
|
$ | (15,990 | ) | $ | (11,213 | ) | $ | (759 | ) | $ | 11,972 | $ | (15,990 | ) |
|
Evergreen
Energy
Inc.
|
Evergreen
Operations,
LLC
|
Other
|
Eliminations
|
Evergreen
Energy
Consolidated
|
|||||||||||||||
(in
thousands)
|
||||||||||||||||||||
Operating
activities:
|
|
|
|
|
|
|||||||||||||||
Net
loss
|
$ | (22,389 | ) | $ | (13,813 | ) | $ | (1,459 | ) | $ | 15,272 | $ | (22,389 | ) | ||||||
Adjustments
to reconcile net loss to cash (used in)
provided
by operating activities:
|
||||||||||||||||||||
Share-based
compensation expense to employees and other
|
1,827 | 258 | 1 | 2,086 | ||||||||||||||||
Depreciation,
depletion and amortization
|
410 | 1,540 | 39 | — | 1,989 | |||||||||||||||
Equity
in loss of subsidiaries
|
15,272 | — | — | (15,272 | ) | — | ||||||||||||||
Asset
retirement obligation accretion
|
— | 74 | — | — | 74 | |||||||||||||||
Derivative
fair value adjustments
|
640 | — | — | — | 640 | |||||||||||||||
Amortization
of debt issuance costs
|
246 | — | — | — | 246 | |||||||||||||||
Amortization
of initial fair value of derivative
|
(141 | ) | — | — | — | (141 | ) | |||||||||||||
Other
|
(56 | ) | 42 | — | — | (14 | ) | |||||||||||||
Changes
in operating assets and liabilities:
|
||||||||||||||||||||
Accounts
receivable
|
— | 1,644 | — | — | 1,644 | |||||||||||||||
Inventory
|
— | (214 | ) | — | — | (214 | ) | |||||||||||||
Prepaids
expenses and other assets
|
(156 | ) | 393 | (340 | ) | — | (103 | ) | ||||||||||||
Deferred
revenue and other obligations
|
91 | (126 | ) | — | — | (35 | ) | |||||||||||||
Accounts
payable and accrued expenses
|
(2,202 | ) | (1,516 | ) | (1 | ) | — | (3, 719 | ) | |||||||||||
Cash
used in operating activities
|
(6,458 | ) | (11,718 | ) | (1,760 | ) | — | (19,936 | ) | |||||||||||
Investing
activities:
|
||||||||||||||||||||
Purchases
of construction in progress
|
(1,182 | ) | (1,360 | ) | (475 | ) | — | (3,017 | ) | |||||||||||
Purchases
of property, plant and equipment
|
(122 | ) | (2 | ) | (4 | ) | — | (128 | ) | |||||||||||
Purchase
of marketable securities
|
(5,000 | ) | — | — | — | (5,000 | ) | |||||||||||||
Proceeds
from maturities of marketable securities
|
27,500 | — | — | — | 27,500 | |||||||||||||||
Restricted
cash
|
146 | — | — | — | 146 | |||||||||||||||
Other
|
— | 5 | — | — | 5 | |||||||||||||||
Cash
provided (used) in investing activities
|
21,342 | (1,357 | ) | (479 | ) | — | 19,506 | |||||||||||||
Financing
Activities:
|
||||||||||||||||||||
Advances
to/from parent/subsidiaries
|
13,314 | 26,389 | 2,071 | (41,774 | ) | — | ||||||||||||||
Payments
to/from parent/subsidiaries
|
(28,460 | ) | (13,314 | ) | — | 41,774 | — | |||||||||||||
Proceeds
from exercise of options and warrants
|
55 | — | — | — | 55 | |||||||||||||||
Payments
on capital leases and other
|
(19 | ) | — | — | — | (19 | ) | |||||||||||||
Cash
provided by financing activities
|
(15,110 | ) | 13,075 | 2,071 | — | 36 | ||||||||||||||
Increase
(decrease) in cash and cash equivalents
|
(226 | ) | — | (168 | ) | — | (394 | ) | ||||||||||||
Cash
and cash equivalents, beginning of year
|
25,194 | — | 1,764 | — | 26,958 | |||||||||||||||
Cash
and cash equivalents, end of period
|
$ | 24,968 | $ | — | $ | 1,596 | $ | — | $ | 26,564 |
|
Evergreen
Energy
Inc.
|
Evergreen
Operations,
LLC
|
Other
|
Eliminations
|
Evergreen
Energy
Consolidated
|
|||||||||||||||
(in
thousands)
|
||||||||||||||||||||
Operating
activities:
|
|
|
|
|
|
|||||||||||||||
Net
loss
|
$ | (15,990 | ) | $ | (11,213 | ) | $ | (759 | ) | $ | 11,972 | $ | (15,990 | ) | ||||||
Adjustments
to reconcile net loss to cash (used in)
provided
by operating activities:
|
||||||||||||||||||||
Share-based
compensation expense to employees and other
|
2,526 | 287 | — | — | 2,813 | |||||||||||||||
Depreciation,
depletion and amortization
|
219 | 1,694 | 8 | 1,921 | ||||||||||||||||
Equity
in loss of subsidiaries
|
11,972 | — | — | (11,972 | ) | — | ||||||||||||||
Asset
retirement obligation accretion
|
— | 70 | — | — | 70 | |||||||||||||||
Other
|
(7 | ) | (52 | ) | — | — | (59 | ) | ||||||||||||
Changes
in operating assets and liabilities:
|
||||||||||||||||||||
Accounts
receivable
|
— | 740 | — | — | 740 | |||||||||||||||
Inventory
|
— | (605 | ) | — | — | (605 | ) | |||||||||||||
Prepaids
and other assets
|
(212 | ) | 279 | (485 | ) | — | (418 | ) | ||||||||||||
Deferred
revenue and other obligations
|
(245 | ) | (58 | ) | (5 | ) | — | (308 | ) | |||||||||||
Accounts
payable and accrued expenses
|
(3,490 | ) | 343 | (57 | ) | — | (3,204 | ) | ||||||||||||
Cash
(used in) provided by operating activities
|
(5,227 | ) | (8,515 | ) | (1,298 | ) | — | (15,040 | ) | |||||||||||
Investing
activities:
|
||||||||||||||||||||
Purchases
of construction in progress
|
(5,751 | ) | (6,627 | ) | 46 | — | (12,332 | ) | ||||||||||||
Purchases
of property, plant and equipment
|
(494 | ) | (508 | ) | (50 | ) | — | (1,052 | ) | |||||||||||
Purchase
of marketable securities
|
(9,814 | ) | — | — | — | (9,814 | ) | |||||||||||||
Proceeds
from maturities of marketable securities
|
24,300 | — | — | — | 24,300 | |||||||||||||||
Restricted
cash
|
(1,630 | ) | (1,319 | ) | — | — | (2,949 | ) | ||||||||||||
Other
|
(18 | ) | 106 | — | — | 88 | ||||||||||||||
Cash
used in investing activities
|
6,593 | (8,348 | ) | (4 | ) | — | (1,759 | ) | ||||||||||||
Financing
Activities:
|
||||||||||||||||||||
Advances
to/from parent/subsidiaries
|
12,561 | 29,424 | 1,243 | (43,228 | ) | — | ||||||||||||||
Payments
to/from parent/subsidiaries
|
(30,667 | ) | (12,561 | ) | — | 43,228 | — | |||||||||||||
Proceeds
from the exercise of options and warrants
|
2,346 | — | — | — | 2,346 | |||||||||||||||
Payments
on capital leases
|
(9 | ) | — | — | — | (9 | ) | |||||||||||||
Cash
provided by financing activities
|
(15,769 | ) | 16,863 | 1,243 | — | 2,337 | ||||||||||||||
Increase
(decrease) in cash and cash equivalents
|
(14,403 | ) | — | (59 | ) | — | (14,462 | ) | ||||||||||||
Cash
and cash equivalents, beginning of year
|
47,043 | — | 137 | — | 47,180 | |||||||||||||||
Cash
and cash equivalents, end of period
|
$ | 32,640 | $ | — | $ | 78 | $ | — | $ | 32,718 |
Condensed
consolidated Cash Flows
March
31, 2007
|
As
previously
reported
|
Adjustments
|
As
restated
|
|||||||||
(in
millions)
|
||||||||||||
Proceeds
from the maturities of marketable securities
|
$ | — | $ | 24,300 | $ | 24,300 | ||||||
Cash
used in investing activities
|
(26,059 | ) | 24,300 | (1,759 | ) | |||||||
Decrease
in cash and cash equivalents
|
(38,762 | ) | 24,300 | (14,462 | ) | |||||||
Cash
and cash equivalents, beginning of period
|
74,518 | (27,338 | ) | 47,180 | ||||||||
Cash
and cash equivalents, end of period
|
35,756 | (3,038 | ) | 32,718 |
|
·
|
Coal
revenue includes mined raw and prepared coal sales within our Buckeye
operations. Coal revenues were $9.7 million and $9.1 million
for the first quarter of 2008 and 2007, respectively. Coal
sales for the first quarter ended 2008 were 162,265 tons or $59.78 sales
realization per ton sold compared to 167,415 tons or $55.02 sales
realization per ton sold, for the first quarter 2007. The
increase in the first quarter 2008 was due to higher coal sales prices
when compared to the same quarter ended 2007. We anticipate
that coal prices will continue to increase in the near
future.
|
|
·
|
Brokered
coal sales, net are derived from revenues less the costs associated with
the purchase of coal from other coal producers, which we ship directly to
customers. Brokered coal sales, net were $55,000 for the first
quarter of 2008 compared to $191,000 for the first quarter of
2007.
|
|
·
|
Ash
disposal revenue includes revenue generated from the disposal of coal
combustion bi-products at our ash pit in Ohio. Ash disposal
revenues were $2.0 million for the first quarter of 2008 compared to $1.6
million for the first quarter of 2007. The increase for the
first quarter 2008 was due to increase volume of sales to one of our large
customers.
|
Three Months Ended
March 31,
|
||||||||
2008
|
2007
|
|||||||
(in thousands)
|
||||||||
Employee
non-cash, share-based compensation
|
$ | 2,086 | $ | 2,546 | ||||
Employee-related
costs
|
3,495 | 2,175 | ||||||
Professional
fees
|
1,199 | 1,051 | ||||||
Office
and travel costs
|
1,128 | 908 | ||||||
Insurance
and other
|
1,118 | 1,050 | ||||||
Total
general and administrative
|
$ | 9,026 | $ | 7,730 |
Three Months Ended
March 31,
|
||||||||
2008
|
2007
|
|||||||
(in thousands)
|
||||||||
Technology
|
$ | 1,636 | $ | 518 | ||||
Plant
|
808 | 919 | ||||||
Mining
|
594 | 738 | ||||||
C-Lock
|
457 | — | ||||||
Total
employee-related
|
$ | 3,495 | $ | 2,175 |
Three Months Ended
March 31,
|
||||||||
2008
|
2007
|
|||||||
(in thousands)
|
||||||||
Technology
|
$ | 521 | $ | 892 | ||||
Plant
|
476 | 96 | ||||||
Mining
|
99 | 63 | ||||||
C-Lock
|
103 | — | ||||||
Total
professional fees
|
$ | 1,199 | $ | 1,051 |
Three Months Ended
March 31,
|
||||||||
2008
|
2007
|
|||||||
(in thousands)
|
||||||||
Technology
|
$ | 616 | $ | 610 | ||||
Plant
|
319 | 159 | ||||||
Mining
|
53 | 81 | ||||||
C-Lock
|
140 | 58 | ||||||
Total
office and travel
|
$ | 1,128 | $ | 908 |
Three Months Ended
March 31,
|
||||||||
2008
|
2007
|
|||||||
(in thousands)
|
||||||||
Technology
|
$ | 652 | $ | 696 | ||||
Plant
|
89 | 125 | ||||||
Mining
|
167 | 179 | ||||||
C-Lock
|
210 | 50 | ||||||
Total
insurance and other
|
$ | 1,118 | $ | 1,050 |
|
·
|
We
spent $3.0 million on our future plant design for the three months ended
March 31, 2008 and $12.3 million on Fort Union plant and other
construction in progress projects for the three months ended
March 31, 2007.
|
|
·
|
We
had capital expenditures related to other purchases of property and
equipment of $1.1 million for the three months ended March 31,
2007.
|
|
·
|
We
purchased $5.0 million and $9.8 million of marketable securities for the
three months ended March 31, 2008 and 2007,
respectively. We received proceeds from maturities of $27.5
million and $24.3 million in the three months ended March 31, 2008
and 2007, respectively.
|
|
·
|
We
transferred $3.0 million to restricted cash during the three months ended
March 31, 2007.
|
EXHIBIT
NUMBER
|
DESCRIPTION
|
|
31.1
*
|
Certification
Pursuant to Rule 13a-14(a) or 15d-14(a) of the Exchange Act, as Adopted
Pursuant to Section 302 of the Sarbanes-Oxley Act of
2002
|
|
31.2
*
|
Certification
Pursuant to Rule 13a-14(a) or 15d-14(a) of the Exchange Act, as Adopted
Pursuant to Section 302 of the Sarbanes-Oxley Act of
2002
|
|
32.1
*
|
Certification
Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of
the Sarbanes-Oxley Act of 2002
|
|
32.2
*
|
Certification
Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of
the Sarbanes-Oxley Act of 2002
|
|
*
Filed herewith
|
|
EVERGREEN
ENERGY INC.
|
|||
Date:
May 9, 2008
|
By:
|
/s/ KEVIN
R. COLLINS
|
|
Kevin
R. Collins
|
|||
Chief
Executive Officer and President
|
|||
Date:
May 9, 2008
|
By:
|
/s/ DIANA
L. KUBIK
|
|
Diana
L. Kubik
|
|||
Vice
President and Chief Financial
Officer
|