Tue 09/21/2021 16:58 PM
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Relevant Document:
September 2021 Update

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Rialto Bioenergy Facility, or RBF, this morning posted to EMMA an updated investor presentation for September 2021, which includes updates to the company’s Aug. 31 presentation regarding the company’s feedstock supply and revised financial projections.

The summary and outlook of the company’s feedstock supply reflects an additional short-term feedstock contract obtained by Anaergia Services LLC, which owns 51% of the company. In a separate footnote, the company states that the biosolids from the Orange County Sanitation District, or OCSD, included in the chart reflect a new contract at a higher tipping fee starting September 2021. The presentation notes that RBF will prioritize OCSD biosolids deliveries “to contract quantity.” The feedstock summary and outlook is reproduced below:

The presentation also includes revised financial projections through the end of 2022. The revised forecast of the project’s free cash flow for 2021, which is based on seven months of actuals and five months of forecast financials, is now negative $23 million. In the company’s prior budget, posted to EMMA on April 1, the company forecast free cash flow of negative $12.2 million based on two months of actuals and 10 months of forecasts.

The cause of the negative cash flow revision for the full year is lower than expected revenue and higher than expected operating expenses. Revenue for 2021 is now expected to be $3.6 million compared with $10.6 million in March, a negative variance of $7 million. Actual revenue underperformed budget in each month from March through July and revenue estimates for each month from August to December 2021 have been revised down from the previous budget.

Total projected operating expenses for 2021 have increased to $13.6 million from $10.8 million in the previous budget because of spending on maintenance and operations, or M&O, contracts, as well as transport and disposal expenses. M&O contract expenses are now forecast to be $4.2 million for 2021, up from $1.95 million in the earlier budget, for a negative variance of about $2.3 million. Transport and disposal expenses are now expected to cost $1.1 million versus $505,000. Most other expense line items exhibited positive or negative variances of about $250,000 or less.
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