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TheStreet Open House

Renewable Energy Group Reports Second Quarter 2012 Financial Results

Investors in the U.S. interested in participating in the live call should dial +1 (877) 810-3368 and enter passcode: 98129516. Those calling from outside the U.S. should dial +1 (760) 298-5082 and use the same passcode: 98129516. A telephone replay will be available approximately two hours after the call concludes through August 28, 2012 by dialing from the U.S. +1 (855) 859-2056, or from international locations +1 (404) 537-3406, and entering passcode: 98129516.

A simultaneous live webcast will be available on the Investor Relations section of the Company's website at http://investor.regi.com/ . The webcast will be archived on the website for one year.

About Renewable Energy Group

Renewable Energy Group is the largest producer of biodiesel in the United States. Utilizing an integrated value chain model, Renewable Energy Group is focused on converting natural fats, oils and greases into advanced biofuels. With more than 210 million gallons of owned/operated annual production capacity at biorefineries across the country, REG is a proven biodiesel partner in the distillate marketplace.

For more than a decade, REG has been a reliable supplier of biodiesel which meets or exceeds ASTM quality specifications. We sell REG-9000® biodiesel to distributors so Americans can have cleaner burning fuels that help lessen our dependence on foreign oil. REG-9000 branded biodiesel is distributed in nearly every state in the U.S. For more information, please visit the company's website at http://www.REGI.com .

Note Regarding Forward-Looking Statements  

This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 as amended, including statements regarding increased demand for biodiesel. These forward-looking statements are based on current expectations, estimates, assumptions and projections that are subject to change, and actual results may differ materially from the forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, the effect of governmental programs on our business; government policymaking and mandates relating to renewable fuels; the future price and volatility of feedstocks; the future price and volatility of petroleum and products derived from petroleum; expected future financial performance; our liquidity and working capital requirements; availability of federal and state governmental tax credits and incentives; anticipated trends and challenges in our business and competition in the markets in which we operate; our ability to estimate our feedstock demands and biodiesel sales; our dependence on sales to a limited number of customers and distributors; technological obsolescence; our expectations regarding future expenses; our ability to successfully implement our acquisition strategy; and other risks and uncertainties described from time to time in REG's public filings with the Securities and Exchange Commission. The forward-looking statements are made as of the date of this press release and REG does not undertake to update any forward-looking statements.

         
RENEWABLE ENERGY GROUP, INC. AND SUBSIDIARIES        
         
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)        
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2012 AND 2011        
(IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS)  
  Three Months Three Months Six Months Six Months
  Ended Ended Ended Ended
  June 30, June 30, June 30, June 30,
  2012 2011 2012 2011
         
REVENUES:        
Biodiesel sales  $ 271,035   $ 184,347   $ 453,815   $ 284,421 
Biodiesel government incentives  815   11,926   6,202   16,266 
   271,850   196,273   460,017   300,687 
Services  77   39   157   60 
   271,927   196,312   460,174   300,747 
         
COSTS OF GOODS SOLD:        
Biodiesel  240,899   165,895   412,035   262,084 
Services  79   24   156   42 
   240,978   165,919   412,191   262,126 
         
GROSS PROFIT  30,949   30,393   47,983   38,621 
         
SELLING, GENERAL, AND ADMINISTRATIVE EXPENSES  11,014   7,812   23,976   14,090 
         
INCOME FROM OPERATIONS  19,935   22,581   24,007   24,531 
         
OTHER INCOME (EXPENSE), NET:        
Change in fair value of preferred stock conversion feature embedded derivatives  --   (19,645)  11,975   (17,088)
Change in fair value of Seneca Holdco liability  --   (2,250)  349   (1,523)
Other income (expense), net  28   200   65   474 
Interest expense  (1,059)  (1,751)  (2,112)  (3,459)
   (1,031)  (23,446)  10,277   (21,596)
         
INCOME (LOSS) BEFORE INCOME TAXES AND LOSS FROM EQUITY INVESTMENTS  18,904   (865)  34,284   2,935 
INCOME TAX EXPENSE  (4,471)  --   (5,834)  -- 
LOSS FROM EQUITY INVESTMENTS  --   (83)  --   (148)
         
NET INCOME (LOSS)  14,433   (948)  28,450   2,787 
         
EFFECTS OF RECAPITALIZATION  --   --   39,107   -- 
LESS - ACCRETION OF SERIES A PREFERRED STOCK TO REDEMPTION VALUE  --   (6,180)  (1,808)  (12,076)
LESS - CHANGE IN UNDISTRIBUTED DIVIDENDS ALLOCATED TO PREFERRED STOCKHOLDERS  628   (3,185)  (823)  (6,246)
LESS - DISTRIBUTED DIVIDENDS TO PREFERRED STOCKHOLDERS  (1,470)  --   (1,470)  -- 
LESS - EFFECT OF PARTICIPATING PREFERRED STOCK  (1,337)  --   (8,952)  -- 
LESS - EFFECT OF PARTICIPATING SHARE-BASED AWARDS  (944)  --   (3,145)  -- 
         
NET INCOME (LOSS) ATTRIBUTABLE TO THE COMPANY'S COMMON STOCKHOLDERS  $ 11,310   $ (10,313)  $ 51,359   $ (15,535)
         
Net income (loss) per share attributable to common stockholders:        
Basic  $ 0.39   $ (0.78)  $ 1.91   $ (1.17)
Diluted  $ 0.39   $ (0.78)  $ 0.47   $ (1.17)
         
Weighted-average shares used to compute net income (loss) per share attributable to common stockholders:        
Basic  28,822,486   13,276,992   26,948,340   13,268,055 
Diluted  28,822,486   13,276,992   32,869,382   13,268,055  
         
     
RENEWABLE ENERGY GROUP, INC. AND SUBSIDIARIES    
     
SELECTED CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)    
AS OF JUNE 30, 2012 AND DECEMBER 31, 2011    
(IN THOUSANDS)  
  June 30, December 31,
  2012 2011
ASSETS    
Cash and cash equivalents  $ 87,050   $ 33,575 
Total current assets  220,220   150,022 
Property, plant and equipment (including variable interest entities)  232,589   232,223 
Goodwill  84,864   84,864 
TOTAL ASSETS  552,507   484,477 
     
LIABILITIES AND EQUITY    
     
Current maturities of notes payable (including variable interest entities)  27,918   8,473 
Total current liabilities  76,491   59,862 
Preferred stock embedded conversion feature derivatives  --   53,822 
Seneca Holdco Liability, at fair value  --   11,903 
Long term notes payable (including variable interest entities)  48,172   73,079 
Total liabilities  141,750   216,092 
Redeemable preferred stock - Series A  --   147,779 
Redeemable preferred stock - Series B  83,165   -- 
Total stockholders' equity  327,592   120,576 
TOTAL LIABILITIES AND EQUITY  552,507   484,447 
     

Selected Condensed Consolidated Balance Sheet Information (historical)

The preceding table describes our selected condensed consolidated balance sheet information as of June 30, 2012 and December 31, 2011 on a historical basis.

CONTACT: Investor Relations:
         ICR, LLC
         Gary Dvorchak, CFA
         Senior Vice President
         +1 (310) 954-1123
         Gary.Dvorchak@icrinc.com
         
         
         Company:
         Renewable Energy Group
         Chad Stone
         Chief Financial Officer
         +1 (515) 239-8091
         Chad.Stone@regi.com

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