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FutureFuel Releases First Quarter 2013 Results And Announces Organizational Changes

Stocks in this article: FF

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)
     
  March 31, 2013 December 31, 2012
Assets    
Cash and cash equivalents $62,211 $58,737
Accounts receivable, net of allowances of $0 and $0, respectively 32,388 22,782
Inventory 70,702 41,992
Marketable securities 96,352 87,768
Other current assets 3,041 2,657
Total current assets 264,694 213,936
Property, plant and equipment, net 138,142 138,865
Other assets 2,492 2,436
Total noncurrent assets 140,634 141,301
Total Assets $405,328 $355,237
     
Liabilities and Stockholders' Equity    
Accounts payable $25,667 $16,476
Other current liabilities 27,722 19,758
Total current liabilities 53,389 36,234
Deferred revenue – long-term 26,976 27,684
Other noncurrent liabilities 30,675 30,985
Total noncurrent liabilities 57,651 58,669
Total liabilities 111,040 94,903
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, 43,334,441 and 41,739,569 issued and outstanding as of March 31, 2013 and December 31, 2012, respectively 4 4
Accumulated other comprehensive income 7,976 2,597
Additional paid in capital 276,333 257,041
Retained earnings 9,975 692
Total stockholders' equity 294,288 260,334
Total Liabilities and Stockholders' Equity $405,328 $355,237
 
FutureFuel Corp.
Condensed Consolidated Statements of Operations and Comprehensive Income
(Dollars in thousands, except per share amounts)
(Unaudited)
 
  Three Months Ended March 31,
  2013 2012
Revenues $92,165 $85,727
Cost of goods sold and distribution 70,784 72,926
Gross profit 21,381 12,801
Selling, general and administrative expenses 1,515 1,375
Research and development expenses 916 843
  2,431 2,218
Income from operations 18,950 10,583
Other income, net 1,206 1,396
Income before income taxes 20,156 11,979
Provision for income taxes 6,106 4,866
Net income $14,050 $7,113
     
Earnings per common share    
Basic $0.33 $0.17
Diluted $0.33 $0.17
Weighted average shares outstanding    
Basic 42,928,109 41,314,859
Diluted 42,949,854 41,493,135
     
Comprehensive Income    
Net income $14,050 $7,113
Other comprehensive income from unrealized net gains on available-for-sale securities, net of tax of $3,353 in 2013 and of $701 in 2012 5,379 1,126
Comprehensive income $19,429 $8,239
 
FutureFuel Corp.
Consolidated Statements of Cash Flows
 (Dollars in thousands)
(Unaudited)
     
  Three Months Ended March 31,
  2013 2012
Cash flows provided by operating activities    
Net income $14,050 $7,113
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation 2,658 2,584
Provision/(benefit) for deferred income taxes (982) (161)
Change in fair value of derivative instruments  941 (1,266)
Impairment of fixed assets 382 --
Gain on the sale of investments (59) (314)
Losses on disposals of fixed assets -- 63
Noncash interest expense 6 6
Changes in operating assets and liabilities:    
Accounts receivable (5,121) 13,607
Accounts receivable – related parties (4,485) (47)
Inventory (28,710) (10,513)
Prepaid expenses 172 216
Accrued interest on marketable securities 109 --
Other assets (56) 15
Accounts payable 9,237 2,776
Accounts payable – related parties (46) (2,694)
Income taxes payable 4,288 3,198
Accrued expenses and other current liabilities 916 317
Accrued expenses and other current liabilities – related parties 50 (26)
Deferred revenue (685) (891)
Net cash (used in)/provided by operating activities (7,335) 13,983
Cash flows from investing activities    
Collateralization of derivative instruments (1,605) 1,050
Purchase of marketable securities (3,399) (17,406)
Proceeds from the sale of marketable securities 3,606 7,648
Proceeds from the sale of fixed assets -- 31
Capital expenditures (2,318) (2,113)
Net cash used in investing activities (3,716) (10,790)
Cash flows from financing activities    
Proceeds from the issuance of stock 19,292 72
Excess tax benefits associated with stock options -- 8
Payment of dividend (4,767) (4,132)
Net cash provided by/(used in) financing activities 14,525 (4,052)
Net change in cash and cash equivalents 3,474 (859)
Cash and cash equivalents at beginning of period 58,737 89,745
Cash and cash equivalents at end of period $62,211 $88,886
     
Cash paid for interest $ -- $ --
Cash paid for income taxes $581 $2,090
 
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 March 31,  
  2013 2012
Adjusted EBITDA $17,734 $16,584
Depreciation (2,658) (2,584)
Retroactive reinstatement of 2012 $1.00 blenders tax credit recognized in 2013 2,535 --
Interest and dividend income 1,153 1,140
Interest expense (6) (6)
Loss on disposal of property and equipment -- (63)
Gains/(losses) on derivative instruments 1,339 (3,406)
Other income/(expense), net 59 314
Income tax expense (6,106) (4,866)
Net income $14,050 $7,113
     
Reconciliation of Adjusted EBITDA to Net Cash Provided by Operating Activities
     
  Three Months Ended March 31, 2012 Three Months Ended March 31, 2013
Adjusted EBITDA $17,734 $16,584
Benefit for deferred income taxes (982) (161)
Impairment of fixed assets 382 --
Retroactive reinstatement of 2012 $1.00 blenders tax credit recognized in 2013 2,535 --
Interest and dividend income 1,153 1,140
Income tax expense (6,106) (4,866)
Gains/(losses) on derivative instruments 1,339 (3,406)
Change in fair value of derivative instruments 941 (1,266)
Changes in operating assets and liabilities, net (24,331) 5,958
Net cash (used in)/provided by operating activities   $ (7,335) $13,983
 
FutureFuel Corp.
Condensed Consolidated Segment Income
(Dollars in thousands)
(Unaudited)
     
  Three Months Ended March 31,
  2013 2012
Revenues    
Chemicals $40,136 $38,409
Biofuels 52,029 47,318
Revenues $92,165 $85,727
     
Segment gross profit  
Chemicals $13,066 $11,669
Biofuels 8,315 1,132
Segment gross profit 21,381 12,801
Corporate expenses (2,431) (2,218)
Income before interest and taxes 18,950 10,583
Interest and other income 1,212 1,454
Interest and other expense (6) (58)
Provision for income taxes (6,106) (4,866)
Net income $14,050 $7,113

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, President
         (805) 565-9800
         www.futurefuelcorporation.com

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