Analyst Mark Miller estimated that the company, which operates four ethanol plants and is in the process of building another five facilities, would earn $0.25 per share in 2007 and $0.40 per share in 2008.
"VeraSun differentiates itself with superior execution in production and logistics," Miller said. "For example, VeraSun's plant locations facilitate favorable corn acquisition economics. In addition, each plant utilizes the same technology, resulting in reduced costs for training and spare parts. VeraSun's larger plants provide economies of scale, primarily through the ability to load full unit-trains that can efficiently ship ethanol anywhere in the United States. We believe VeraSun's transportation cost advantage relative to its small-plant competitors could be as high as $0.05 per gallon of ethanol."
William Blair & Company, L.L.C. has received compensation for investment banking services from the company within the past 12 months, or expects to receive or intends to seek compensation for investment banking services in the next 3 months.
William Blair & Company, L.L.C. is a Chicago-based investment firm offering investment banking, asset management, equity research, institutional and private brokerage, and private capital to individual, institutional, and issuing clients. Since 1935, we have been committed to helping clients achieve their financial objectives. As an independent, employee-owned firm, our philosophy is to serve our clients' interests first and foremost. We place a high value on the enduring nature of our client relationships, the quality of our products and services, and the continuity and integrity of our people. William Blair & Company's offices include Chicago, Boston, London, New York, San Francisco, Shanghai, Tokyo, and Zurich. For more information, please visit www.williamblair.com
For important disclosures and information regarding the firm's rating system, valuation methods and potential conflicts of interest, please visit: http://www.williamblair.com/Pages/news_story_dept.asp?uid=1270&depID=4
Additional information is available upon request.
SOURCE: William Blair & Company, L.L.C.
William Blair & Company, L.L.C. Tony Zimmer, 312-364-8611 tzimmer@williamblair.com
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