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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