EVANSVILLE, Ind.–(BUSINESS WIRE)– Imperial Petroleum, Inc. (OTCQX: IPMN), a leading biodiesel and diversified alternative energy company, today announced the detailed results for the fiscal year and fourth quarter ended July 31, 2011.
For the fiscal year ended July 31, 2011, total revenues were $110 million as compared to $5.7 million in the fiscal year ended July 31, 2010, a nineteen-fold increase. Net after tax income was $6.1 million, or $0.21 per share on 28.4 million fully diluted weighted average shares outstanding, compared to a net after tax loss of $17.8 million, or $(0.99) per share on 18.0 million basic weighted average shares outstanding in fiscal 2010. The net loss for the year ended July 2010 was primarily the result of a write-off of goodwill associated with the acquisition of e-biofuels in the amount of $16.3 million.
In the fourth quarter ended July 31, 2011, revenues were $47.0 million compared to $5.5 million for the same period of fiscal 2010, an increase of 854%. Net after tax income for the fiscal fourth quarter of 2011 was $3.71 million, or $0.13 per fully diluted average shares outstanding compared to a net after tax loss of $17.6 million, or ($0.98) per share on 18.0 million basic weighted average shares outstanding in the fourth quarter of fiscal 2010.
Selected highlights for fiscal year 2011 include:
- Shortly before the start of fiscal 2011, in May 2010, Imperial Petroleum acquired e-biofuels, LLC, at the time of its purchase, e-biofuels was producing less than 500,000 gallons per month and by the end of July 2011, biodiesel production was approximately 1.2 million gallons per month and the Company was profitable.
- Production for the fiscal year ended July 31, 2011 was 26.4 million gallons and is scheduled to increase another 30% in fiscal 2012. Current biodiesel production is between 2.5 – 3.0 million gallons per month.
- Imperial strengthened its management team with the hiring of a Vice President of Finance, a Controller and by installing new software to better manage the day-to-day operational activities.
- All major litigation and vendor issues have been resolved and the Company anticipates that it will be able to reduce its bank debt over the course of the year and successfully extend or refinance any amounts that might be outstanding upon the expiration of its current credit agreement.
Since the close of our 2001 fiscal year, Imperial has had a number of developments that position the company for significant future growth, namely:
- In early August, 2011, the Company announced that it hired the Wolfe Axelrod Weinberger Associates investor relations agency to assist it in communicating its status as a rising star in the biofuels arena.
- In late August, 2011, Imperial Petroleum announced an extension of our wholly-owned subsidiary, e-biofuels, bank loan that gives the Company additional time to refinance its senior debt.
- The Company also announced a Letter of Engagement in late August to secure a two year supply of feedstock for the Company’s Middleton, Indiana biodiesel production operation.
- On September 23, 2011, the Company completed a $3.1 million equity financing that is earmarked to expand our biodiesel production by at least 30%.
Mr. Jeffrey T. Wilson, President of Imperial Petroleum, stated, “In the process of completing its audit for the fiscal year, the Company discovered an error in our revenue accounting that affected two prior unaudited quarters of results due to the timing difference between the recognition of money received and the completion of shipments to customers. The net effect of that glitch is that revenues had been previously recorded for monies received affecting about 3% of our biodiesel sales for the year in the second and third quarters. Our auditors advised us of the error on October 6, and we subsequently restated the financial results for those quarters. Needless to say we have replaced our accounting software and upgraded our internal controls for revenue recognition but, nevertheless it was an event that should not have happened.”
Wilson added, “Our business is strong and we anticipate that we can increase our production at least 30% in fiscal 2012. We are seeking further prime locations for new biofuel production facilities. Renewable fuels are a small but rapidly growing part of the energy equation and Imperial Petroleum intends to command a meaningful share of this burgeoning market.”
|Selected Balance Sheet Information (As of July 31, 2011)|
|Total current assets||$||8,162,140|
|Net property, plant and equipment||$||14,158,113|
|Total current liabilities||$||21,095,322|
|Total long term liabilities||$||3,008,098|
|Total stockholders’ equity||$||431,300|
|Total liabilities and stockholders’ equity||$||24,534,720|
For a more complete discussion of the fiscal 2011 year and detailed financial tables, please refer to the Company’s Form 10-K filing that can be found at www.sec.gov.
About Imperial Petroleum
Imperial is an energy company headquartered in Evansville, Indiana. The Company is engaged in three principal areas of energy production: (i) biodiesel and biofuels production, (ii) traditional oil and gas exploration and production and (iii) non-traditional oil production of heavy oil from mineable tar sands.
Imperial Petroleum will host a conference call on October 24, 2011 at 2:00 pm ET to discuss fiscal 2011 results and the current status and outlook for the Company. To participate in the conference call, please dial (877) 407-8291; international callers dial (201) 689-8345 about 5-10 minutes prior to 2:00 PM ET. The conference call will also be available on replay starting at 4:00 PM ET on October 24, 2011 and ending on November 7, 2011. For the replay, please dial (877) 660-6853 (replay account # 299, replay conference ID # 381931). The access number for the replay for international callers is (201) 612-7415 (replay account # 299, replay conference ID # 381931).
Forward Looking Statement
This press release may contain “forward-looking statements” as that term is defined in the Private Securities Litigation Reform Act of 1995. Such statements are based on management’s current expectations and are subject to a number of factors and uncertainties which could cause actual results to differ materially from those described herein. Although the Company believes that the expectations in such statements are reasonable, there can be no assurance that such expectations will prove to be correct.