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Renewable Energy Group Reports Third Quarter 2012 Financial Results

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 to provide Americans 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 growth in the biodiesel industry and the timing for commencement of operations at the recently acquired New Boston production facility. 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 annual report on Form 10-K, quarterly reports on Forms 10-Q and other periodic 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 based on new developments or changes in our expectations.
 
RENEWABLE ENERGY GROUP, INC. AND SUBSIDIARIES
 
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2012 AND 2011
(IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS)
         
Three Months Three Months Nine Months Nine Months
Ended Ended Ended Ended
September 30, September 30, September 30, September 30,
2012 2011 2012 2011
 
REVENUES:
Biodiesel sales $ 321,005 $ 233,925 $ 774,820 $ 518,346
Biodiesel government incentives   1,868   22,497     8,070   38,763
322,873 256,422 782,890 557,109
Services   39   80   196   140
  322,912   256,502   783,086   557,249
 
COSTS OF GOODS SOLD:
Biodiesel 320,078 201,878 732,113 463,962
Services   43   79   199   121
  320,121   201,957   732,312   464,083
 
GROSS PROFIT 2,791 54,545 50,774 93,166
 
SELLING, GENERAL, AND ADMINISTRATIVE EXPENSES   9,902   11,045   33,878   25,134
 
INCOME (LOSS) FROM OPERATIONS   (7,111 )   43,500   16,896   68,032
 
OTHER INCOME (EXPENSE), NET:
Change in fair value of preferred stock conversion feature embedded derivatives - (38,483 ) 11,975 (55,571 )
Change in fair value of Seneca Holdco liability - (977 ) 349 (2,500 )
Other income (expense), net 56 239 121 713
Interest expense   (1,150 )   (2,183 )   (3,262 )   (5,642 )
  (1,094 )   (41,404 )   9,183   (63,000 )
 
INCOME (LOSS) BEFORE INCOME TAXES AND
INCOME FROM EQUITY INVESTMENTS (8,205 ) 2,096 26,079 5,032
INCOME TAX BENEFIT (EXPENSE) 2,165 (4,752 ) (3,669 ) (4,752 )
INCOME FROM EQUITY INVESTMENTS   -   649   -   501
 
NET INCOME (LOSS)   (6,040 )   (2,007 )   22,410   781
 
EFFECTS OF RECAPITALIZATION - - 39,107 -
LESS - ACCRETION OF SERIES A PREFERRED STOCK TO REDEMPTION VALUE - (6,477 ) (1,808 ) (18,553 )

LESS - CHANGE IN UNDISTRIBUTED DIVIDENDS ALLOCATED TO PREFERRED STOCKHOLDERS
(862 ) (3,221 ) (1,685 ) (9,467 )
LESS - DISTRIBUTED DIVIDENDS TO PREFERRED STOCKHOLDERS - - (1,470 ) -
LESS - EFFECT OF PARTICIPATING PREFERRED STOCK - - (8,952 ) -
LESS - EFFECT OF PARTICIPATING SHARE-BASED AWARDS   -   -   (3,145 )   -
 
NET INCOME (LOSS) ATTRIBUTABLE TO THE COMPANY'S COMMON STOCKHOLDERS $ (6,902 ) $ (11,705 ) $ 44,457 $ (27,239 )
 
Net income (loss) per share attributable to common stockholders:
Basic $ (0.24 ) $ (0.34 ) $ 1.60 $ (0.81 )
Diluted $ (0.24 ) $ (0.34 ) $ 0.28 $ (0.81 )
 

Weighted-average shares used to compute net income (loss) per share attributable to common stockholders:
Basic   29,292,349   34,738,903   27,729,676   33,699,728
Diluted   29,292,349   34,738,903   33,676,699   33,699,728
 
RENEWABLE ENERGY GROUP, INC. AND SUBSIDIARIES
 
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
AS OF SEPTEMBER 30, 2012 AND DECEMBER 31, 2011
(IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS)
       
September 30, December 31,
2012 2011
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 88,282 $ 33,575
Total current assets 203,647 150,022
Property, plant and equipment, net (including variable interest entities) 234,594 232,223
Goodwill 84,864 84,864
Total assets 538,318 484,447
 
LIABILITIES AND EQUITY
Current maturities of notes payable (including variable interest entities) 27,358 8,473
Total current liabilities 70,436 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) 46,144 73,079
Total liabilities 133,312 216,092
Redeemable preferred stock - Series A - 147,779
Redeemable preferred stock - Series B 83,165 -
Total stockholders' equity 321,841 120,576
Total liabilities and equity 538,318 484,447
 

Selected Condensed Consolidated Balance Sheet Information (historical) The preceding table describes our selected condensed consolidated balance sheet information as of September 30, 2012 and December 31, 2011 on a historical basis.

Copyright Business Wire 2010
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