This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Renewable Energy Group Reports Third Quarter 2012 Financial Results

After the close of the quarter, REG acquired a 15 million gallon-per-year capacity, multi-feedstock biorefinery in New Boston, Texas, near Texarkana. The company purchased the off-line refinery for 900,000 shares of common stock and $0.3 million cash. The acquisition will expand the company’s nameplate capacity to 227 million gallons per year, strengthening its leadership position within the industry. The company expects to commence production at New Boston within the first quarter of 2013.

Third Quarter 2012 Financial Results

Revenues for the third quarter were $322.9 million, representing a 25.9% increase over the third quarter of 2011. Revenue growth was driven by a 40% year-over-year increase in gallons sold, offset by a 22% decline in average selling price during the same time period. Average selling price declined mostly due to a sharp drop in RIN prices late in the quarter.

Gross profit for the quarter was 0.9%, which compares to 21.3% in the prior year period. Gross profit was impacted negatively by two factors: the accounting for risk management positions, and the severe decline in RIN prices late in the quarter. Biodiesel cost of goods sold includes an $18 million loss on risk management contracts. This was largely a function of timing and the result of large movements in heating oil and soybean oil price indices in late September as well as an adjustment of $8.2 million on RIN inventory to reflect the lower of cost or market as of September 30, 2012.

Adjusted EBITDA, defined as earnings before interest, taxes, depreciation and amortization and further adjusted for certain items identified below under “Adjusted EBITDA Reconciliation”, declined 105% year–over-year to a loss of $2.3 million. REG generated cash flow from operations of $6.2 million in the quarter, a decline of 62% from the $16.0 million generated in the prior year period.

2 of 5

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free


Chart of I:DJI
DOW 17,719.92 -78.57 -0.44%
S&P 500 2,080.41 -9.70 -0.46%
NASDAQ 5,108.6660 -18.8590 -0.37%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs