Xethanol Corporation (XNL)

BUSINESS SUMMARY

Xethanol Corporation engages in the production and marketing of ethanol and its co-products in the United States. Ethanol, a clean burning, renewable fuel, is used as a primary gasoline additive. The company also intends to optimize the use of biomass in the renewable energy field and convert biomass that is being abandoned or land filled into ethanol, or other valuable co-products. It has a strategic alliance with Coastal Energy Development, Inc. Xethanol Corporation was founded in 2000 and is headquartered in New York City.

Business Approach

Take the solution to the waste not the waste to the solution
Xethanol Corporation is committed to the production of ethanol and related products in manufacturing facilities close to the major urban markets for those products, using locally available raw materials.

Better than corn
Corn is currently the dominant raw material for ethanol production. As a result this production is now concentrated in the Corn Belt - thousands of miles from the areas of highest ethanol demand on the Atlantic, Gulf and Pacific coasts.

Use of local waste
Xethanol's Business Approach calls for the use of locally available biomass rather than corn as the primary raw material for ethanol production. Biomass is organic waste material and includes everything from wood chips and yard waste, to corn stover and municipal solid waste.

Cheaper feedstock
Biomass of various kinds is abundant in the high-demand coastal areas. Its generation is widely dispersed, and its value is too low to make transportation viable to a large footprint central processing facility. Because most biomass streams are now either abandoned or land-filled at the producer's expense, biomass is potentially a significantly cheaper feedstock for ethanol production than corn.

Smaller and Closer
The economics of biomass-to-ethanol production mandate small footprint plants, typically producing between 5 and 25 million gallons a year and located close to the biomass source.

Lower freight expense, higher margins
Xethanol plans to locate biorefineries for ethanol fuel production close to high-density urbanized ethanol markets and to reliable biomass sources - so reducing freight and raw material costs, capturing higher ethanol prices and gaining the benefit of improved margins.

Management

David Ames
Director, President and CEO

Mr. Ames currently serves at the Chairman and CEO of Alterna Energy, which he co-founded as an answer to the peaking of the petroleum supply curve. In addition, he is an active venture capital investor in alternative energy technologies, processes and services. He is a member of the National Ethanol Vehicle Coalition (NEVC), where he is aggressively bringing political and business leaders together with industry and scientific leaders to focus on the alternative energy marketplace. In 1999, as Founder, Chairman, President and Chief Executive Officer of Convergence.com, Ames successfully merged the company with C-COR Inc. (CCBL-OTC), founded in 1953. Prior to forming Convergence.com, Ames advised Fortune 500 companies including Digital Equipment Corporation and Kodak.
Richard Wilson
Executive Vice President of Communications & Technology Affairs

Mr. Wilson is responsible for overall strategy and direction of Xethanol's public relations and investor relations programs and oversees the Company's scientific advisory board, composed of leading scientists in the alternative energy field. Mr. Wilson possesses 30 years of journalism and technology experience, including 6 years on the air as a CNN Technology and Environment Correspondent. Mr. Wilson holds a Bachelor of Science degree in Communications from Ithaca College and received a Master's Degree from the S.I. Newhouse School of Public Communications at Syracuse University.
Larry Bellone
Director and CFO

As a Managing Director and senior member of the Structured Capital Group of Chase Manhattan Bank (later to become JP Morgan Chase) with more than 25 years experience in investment banking, public and corporate accounting and finance, Mr. Bellone was responsible for structuring, originating and executing innovative financing and investment transactions for Fortune 100 companies.
Franz A. Skryanz,
Vice President, Secretary and Treasurer

Mr. Skryanz is a seasoned financial executive with extensive experience in international business gained in senior management positions with diverse multinational corporations. Prior to joining Xethanol, he served as Treasurer and Secretary of NETdigest.com, Inc., Chief Financial Officer of Cam Designs, Inc. and Chief Financial Officer and Treasurer of Nyros Telecom Services, Inc., a privately-held company with telecom ventures in Russia.
Robin Buller
Vice President, Strategic Development

Mr. Buller has extensive experience in plant and machinery sales worldwide.
He has worked in Europe, Central Asia and the Far East in a number of roles including business development, distribution and project management.
Tom J. Endres
Senior Vice President, Operations

Lieutenant Colonel (retired) Tom Endres has extensive experience in business operations, facilities management and project development. He served on the Board of Directors of the West Point Federal Credit Union and has had a 27 year distinguished career in the United States Army. Mr. Endres is a 1980 graduate of the United States Military Academy and has a Bachelor of Science in Engineering.
Jim Stewart,
Vice President Plant Operations & General Manager, Xethanol BioFuels, Blairstown

With over 25 years in the ethanol industry, Mr. Stewart has extensive knowledge of every aspect of the business, from production, technology and distribution, to plant management and training. He oversees Xethanol¹s existing production and is also involved in identifying and developing plants in other locations.


Mark Austin
Chief Technology Strategist

As an advisor and consultant to rapid-growth Cleantech companies with extensive experience in technology, intellectual property, and novel equipment and process development, Mr. Austin has been responsible for process control patents issued in 12 countries. He was previously Flagship Technology Manager, Energy & Atmosphere Program, UNDP.

VALUATION MEASURES
Market Cap (intraday): 84.63M
Enterprise Value (27-Jan-07)3: N/A
Trailing P/E (ttm, intraday): N/A
Forward P/E (fye 31-Dec-07) 1: N/A
PEG Ratio (5 yr expected): N/A
Price/Sales (ttm): 7.47
Price/Book (mrq): 1.56
Enterprise Value/Revenue (ttm)3: NaN
Enterprise Value/EBITDA (ttm)3: N/A
FINANCIAL HIGHLIGHTS
Fiscal Year
Fiscal Year Ends: 31-Dec
Most Recent Quarter (mrq): 30-Sep-06
Profitability
Profit Margin (ttm): -144.40%
Operating Margin (ttm): -94.67%
Management Effectiveness
Return on Assets (ttm): -16.68%
Return on Equity (ttm): -54.95%
Income Statement
Revenue (ttm): 10.93M
Revenue Per Share (ttm): 0.58
Qtrly Revenue Growth (yoy): 47.80%
Gross Profit (ttm): -548.30K
EBITDA (ttm): -8.24M
Net Income Avl to Common (ttm): -15.79M
Diluted EPS (ttm): -0.837
Qtrly Earnings Growth (yoy): N/A
Balance Sheet
Total Cash (mrq): 29.27M
Total Cash Per Share (mrq): 1.072
Total Debt (mrq): 25.05K
Total Debt/Equity (mrq): 0
Current Ratio (mrq): 23.486
Book Value Per Share (mrq): 1.917
Cash Flow Statement
Operating Cash Flow (ttm): -4.45M
Levered Free Cash Flow (ttm): -15.05M