The company expanded its distribution capabilities by opening three terminals. In early June, the company announced new terminal capabilities at its partially-completed biorefinery in Clovis, New Mexico. Biodiesel sales from the Clovis terminal commenced in early July. Also in late June, the company announced a new terminal in Lebanon Ohio, which is in the southwest corner of the state serving Ohio, Indiana and Kentucky. The terminal is located adjacent to terminals owned by major diesel marketers, and enables efficient blending for local petroleum jobbers. In the later part of July, the company entered into an agreement with Maxum Petroleum to offer REG-9000® at its terminal in Long Beach, California with sales commencing in mid-August.
The company also benefited this quarter from an additional 50 million gallons of annual capacity becoming available in combination from both the Albert Lea facility, which was purchased in July 2011, and the completion of the third production line at the Seneca facility, which was initially brought online earlier this year.
Second Quarter 2012 Financial Results
Revenues for the second quarter were $271.9 million, a 39% increase compared to Q1 2011, due to an increase in gallons sold over the previous period, offset somewhat by lower per-gallon prices. Gallons sold in Q2 2012 increased 63% over Q2 2011 to 54.2 million gallons of biodiesel. Biodiesel demand improved compared to the same period in 2011 due to the increased requirements under RFS2. Biodiesel pricing declined, as lower prices for petroleum-based diesel and lower RIN prices caused a 12% year over year reduction in realized price per gallon.Adjusted EBITDA, defined as earnings before interest, taxes, depreciation and amortization and further adjusted for certain items identified below under "Adjusted EBITDA Reconciliation", grew 3% year over year to $26.5 million. Adjusted EBITDA grew 109% from the $12.7 million generated in Q1 2012. Adjusted EBITDA was nearly flat year over year as strong volume growth was offset by lower biodiesel gross margins in the second quarter 2012.