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FutureFuel Releases Second Quarter 2012 Results

A table included in this earnings release reconciles adjusted EBITDA with net income, the most directly comparable GAAP performance financial measure, and a table reconciles adjusted EBITDA with cash flows from operations, the most directly comparable GAAP liquidity financial measure.

     
FutureFuel Corp.
Condensed Consolidated Balance Sheets
(Dollars in thousands)
(Unaudited)
     
  June 30, 2012 December 31, 2011
Assets    
Cash and cash equivalents $ 112,031 $ 89,745
Accounts receivable, net of allowances of $0 and $10 at June 30, 2012 and December 31, 2011, respectively 26,571 35,677
Inventory 43,357 57,439
Marketable securities 66,937 56,294
Other current assets 897 3,370
Total current assets 249,793 242,525
Property, plant and equipment, net 139,237 140,517
Other assets 2,189 2,202
Total noncurrent assets 141,426 142,719
Total Assets $ 391,219 $ 385,244
     
Liabilities and Stockholders' Equity    
Accounts payable $ 18,276 $ 21,688
Other current liabilities 15,905 14,111
Total current liabilities 34,181 35,799
Deferred revenue – long-term 29,144 29,256
Other noncurrent liabilities 32,042 31,951
Total noncurrent liabilities 61,186 61,207
Total Liabilities 95,367 97,006
Commitments and contingencies    
Preferred stock, $0.0001 par value, 5,000,000 shares authorized, none issued and outstanding -- --
Common stock, $0.0001 par value, 75,000,000 shares authorized, 41,319,057 and 41,308,446 issued and outstanding as of June 30, 2012 and December 31, 2011, respectively 4 4
Accumulated other comprehensive income 1,756 1,803
Additional paid in capital 253,844 253,505
Retained earnings 40,248 32,926
Total stockholders' equity 295,852 288,238
Total Liabilities and Stockholders' Equity $ 391,219 $ 385,244

 

FutureFuel Corp.
Condensed Consolidated Statements of Operations and Comprehensive Income
(Dollars in thousands, except per share amounts)
(Unaudited)
     
  Three Months Ended June 30,
  2012 2011
Revenues $ 103,237 $ 74,728
Cost of goods sold and distribution 88,837 59,299
Gross profit 14,400 15,429
Selling, general and administrative expenses 1,999 1,912
Research and development expenses 829 861
  2,828 2,773
Income from operations 11,572 12,656
Other income 1,118 716
Income before income taxes 12,690 13,372
Provision for income taxes 4,217 4,933
Net income $ 8,473 $ 8,439
     
Earnings per common share    
Basic $ 0.21 $ 0.21
Diluted $ 0.20 $  0.21
Weighted average shares outstanding    
Basic 41,319,057 40,234,242
Diluted 41,462,594 40,438,023
     
Comprehensive Income    
Net income $ 8,473 $ 8,439
Other comprehensive loss, net of tax of $(730) in 2012 and $(346) in 2011 (1,173) (553)
Comprehensive income $ 7,300 $ 7,886

 

   
  Six Months Ended June 30,
  2012 2011
Revenues $ 188,964 $ 129,969
Cost of goods sold and distribution 161,763 109,542
Gross profit $ 27,201 20,427
Selling, general and administrative expenses 3,374 2,939
Research and development expenses 1,672 1,614
  5,046 4,553
Income from operations 22,155 15,874
Other income 2,514 1,448
Income before income taxes 24,669 17,322
Provision for income taxes 9,083 6,169
Net income $ 15,586 $ 11,153
     
Earnings per common share    
Basic $ 0.38 $ 0.28
Diluted $ 0.38 $ 0.28
Weighted average shares outstanding    
Basic 41,316,958 40,109,268
Diluted 41,477,864 40,285,249
     
Comprehensive Income    
Net income $ 15,586 $ 11,153
Other comprehensive (loss)/gain, net of tax of $(29) in 2012 and $272 in 2011 (47) 434
Comprehensive income $ 15,539 $ 11,587

 

FutureFuel Corp.
Consolidated Statements of Cash Flows
For the Six Months Ended June 30, 2012 and 2011
(Dollars in thousands)
(Unaudited)
     
  Six Months Ended June 30,
  2012 2011
Cash flows provided by operating activities    
Net income $ 15,586 $ 11,153
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation 5,178 3,884
Provision for (benefit from) deferred income taxes (1,495) 478
Change in fair value of derivative instruments and marketable securities 745 984
(Gains) / loss on the sale of investments (198) 148
Losses on disposals of fixed assets 107 27
Stock based compensation 259 502
Noncash interest expense 12 11
Changes in operating assets and liabilities:    
Accounts receivable 9,103 4,915
Accounts receivable – related parties 3 (247)
Inventory 14,082 (3,004)
Income taxes receivable -- 519
Prepaid expenses 579 386
Accrued interest on marketable securities -- (123)
Other assets (3) 274
Accounts payable (735) (368)
Accounts payable – related parties (2,677) (50)
Income taxes payable 723 1,849
Accrued expenses and other current liabilities 2,047 1,832
Accrued expenses and other current liabilities – related parties (26) 23
Deferred revenue 100 11,602
Net cash provided by operating activities 43,390 34,795
Cash flows from investing activities    
Restricted cash -- 21,086
Collateralization of derivative instruments 1,606 (1,920)
Purchase of marketable securities (24,892) (70,072)
Proceeds from the sale of marketable securities 14,371 27,090
Proceeds from the sale of fixed assets 63 12
Capital expenditures (4,068) (15,325)
Net cash used in investing activities (12,920) (39,129)
Cash flows from financing activities    
Proceeds from the issuance of stock 72 15,798
Excess tax benefits associated with stock options 8 --
Payment of dividend (8,264) (7,996)
Net cash provided by financing activities (8,184) 7,802
Net change in cash and cash equivalents 22,286 3,468
Cash and cash equivalents at beginning of period 89,745 91,057
Cash and cash equivalents at end of period $ 112,031 $ 94,525
     
Cash paid for interest $ 2 $ --
Cash paid for income taxes $ 9,847 $ 2,857
Non-cash capital expenditures $ -- $ 1,134

 

FutureFuel Corp.
Reconciliation of Non-GAAP Financial Measure to Financial Measure
(Dollars in thousands)
(Unaudited)
Reconciliation of Adjusted EBITDA to Net Income
     
  Three Months Ended June 30,
  2012 2011
Adjusted EBITDA $ 5,940 $ 13,173
Depreciation and amortization (2,594) (1,973)
Non-cash share-based compensation (259) (502)
Interest and dividend income 1,147 811
Interest expense (9) (36)
Loss on disposal of property and equipment (44) (21)
Gains on derivative instruments 8,625 1,957
Other income, net (116) (37)
Income tax expense (4,217) (4,933)
Net income $ 8,473 $ 8,439

 

  Six Months Ended June 30,
  2012 2011
Adjusted EBITDA $ 22,524 $ 22,053
Depreciation and amortization (5,178) (3,884)
Non-cash share-based compensation (259) (502)
Interest income and dividend income 2,287 1,587
Interest expense (15) (170)
Loss on disposal of property and equipment (107) (27)
Gains/(losses) on derivative instruments 5,219 (1,793)
Other income, net 198 58
Income tax expense (9,083) (6,169)
Net income $ 15,586 $ 11,153

 

Reconciliation of Adjusted EBITDA to Net Cash Provided by Operating Activities
     
  Six Months Ended June 30, 2012 Six Months Ended June 30, 2011
Adjusted EBITDA $ 22,524 $ 22,053
(Benefit from) provision for deferred income taxes (1,495) 478
Interest and dividend income 2,287 1,587
Income tax expense (9,083) (6,169)
Gains (losses) on derivative instruments 5,219 (1,793)
Change in fair value of derivative instruments and marketable securities 745 984
Changes in operating assets and liabilities, net 23,196 17,608
Other (3) 47
Net cash provided by operating activities $ 43,390 $ 34,795

 

     
FutureFuel Corp.
Condensed Consolidated Segment Income
(Dollars in thousands)
(Unaudited)
     
  Three Months Ended June 30,
  2012 2011
Revenues    
Chemicals $ 40,893 $ 36,851
Biofuels 62,344 37,877
Revenues $ 103,237 $ 74,728
     
Segment gross profit    
Chemicals $ 11,249 $ 7,068
Biofuels 3,151 8,361
Segment gross profit 14,400 15,429
Corporate expenses (2,828) (2,773)
Income before interest and taxes 11,572 12,656
Interest and other income 1,243 811
Interest and other expense (125) (95)
Provision for income taxes (4,217) (4,933)
Net income $ 8,473 $ 8,439

 

  Six Months Ended June 30,
  2012 2011
Revenues    
Chemicals $ 79,302 $ 81,547
Biofuels 109,662 48,422
Revenues $ 188,964 $ 129,969
     
Segment gross profit    
Chemicals $ 22,918 $ 14,842
Biofuels 4,283 5,585
Segment gross profit 27,201 20,427
Corporate expenses (5,046) (4,553)
Income before interest and taxes 22,155 15,874
Interest and other income 2,529 1,645
Interest and other expense (15) (197)
Provision for income taxes (9,083) (6,169)
Net income $ 15,586 $ 11,153

Depreciation is allocated to segment costs of goods sold based on plant usage. The total assets and capital expenditures of FutureFuel have not been allocated to individual segments as large portions of these assets are shared to varying degrees by each segment, causing such an allocation to be of little value.

CONTACT: COMPANY CONTACT:
         FutureFuel Corp.
         Lee E. Mikles, CEO
         (805) 565-9800
         www.futurefuelcorporation.com

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