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Renewable Energy Group Reports Second Quarter 2012 Financial Results

Stocks in this article: REGI

The table below summarizes REG's results for Q2 2012:

REG Q2 2012 Revenue and Adjusted EBITDA Summary (dollars and gallons in thousands except per gallon data)
  Q2 2012 Q2 2011 Growth
Gallons sold  54,239  33,300 +63%
Revenues  $271,927  $196,312 +39%
Adjusted EBITDA $26,452  $25,770  +3%
Adjusted EBITDA Margin  9.7%  13.1%  

Balance Sheet and Liquidity

At June 30, 2012, REG had cash and cash equivalents of $87.1 million.

Inventories at June 30, 2012 were $58.6 million, a decrease of $19.0 million from March 31, 2012. The decrease in inventory was largely attributable to the recognition in Q2 of five million gallons of biodiesel production shipped in Q1 but not recognized, as disclosed in Q1 earnings release.

Adjusted EBITDA Reconciliation

REG presents Adjusted EBITDA because the company believes it assists investors in analyzing its performance across reporting periods on a consistent basis. In addition, REG uses Adjusted EBITDA to evaluate, assess and benchmark its financial performance on a consistent and comparable basis.  REG excludes non-cash stock-based compensation and non-cash other income (expense) items because it does not believe that they are indicative of the company's ongoing operating performance.  REG's measure of Adjusted EBITDA might be different than similar financial measures used by other companies. Non-GAAP metrics are not determined in accordance with GAAP and are not a substitute for or superior to financial measures determined in accordance with GAAP.  Adjusted EBITDA Margin is calculated by dividing Adjusted EBITDA by Revenues.

  Three Months Ended Six Months Ended
  June 30, June 30,
(In thousands) 2012 2011 2012 2011
Net income  $ 14,433  $ (948)  $ 28,450  $ 2,787
Loss from equity investments  --  83  --  148
Income tax expense  4,471  --  5,834  --
Interest expense  1,059  1,751  2,112  3,459
Other income (expense), net  (28)  (200)  (65)  (474)
Change in fair value of Seneca Holdco liability  --  2,250  (349)  1,523
Change in fair value of preferred stock conversion feature embedded derivatives  --  19,645  (11,975)  17,088
Expense settled with stock issuance  --  --  1,898  --
Straight-line lease expense  (104)  618  (206)  1,416
Depreciation  2,069  1,705  4,095  3,394
Amortization  (206)  (124)  (345)  (254)
Non-cash stock compensation  4,758  990  9,722  1,980
Adjusted EBITDA  $ 26,452  $ 25,770  $ 39,171  $ 31,067

Second Quarter Conference Call

REG will sponsor a conference call to discuss results today at 4:30 p.m. EST/3:30 p.m. CST. Daniel J. Oh, President and Chief Executive Officer, and Chad Stone, Chief Financial Officer, will host the call.

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