Income from operations increased from $11,572,000 in the three months ended June 30, 2012 to $24,975,000 in the three months ended June 30, 2013. FutureFuel does not report income from operations by segment, but does report segment gross profit. The chemicals segment gross profit increased 31% to $14,784,000 in the three months ended June 30, 2013 from $11,249,000 in the three month ended June 30, 2012. Biofuels segment gross profit increased to $12,842,000 in the three months ended June 30, 2013 from $3,151,000 in the three months ended June 30, 2012. Market conditions were more favorable for biodiesel in 2013 as compared to 2012 largely as a result of the reinstatement of the $1.00 blenders credit in January 2013. Biodiesel profitability in the second quarter of 2012 was negatively impacted due to our inventory of unsold, internally generated RINs. At June 30, 2013 we maintained a minimal inventory of RINs. Also impacting Biofuels gross profit were hedging gains. For the second quarter of 2013 hedging gains totaled $2,327,000 down from a gain of $8,473,000 in the second quarter of 2012. Chemical segment gross profit increased primarily as a result of three factors. First, the improved economies of scale on fixed resources from the addition of new chemical products and, to a greater degree, continued increased biodiesel production. Second, improved profit from the bleach activator business as the sales price has increased on the customer's reduced sales demands. Lastly, profit improved with the variation in the product mix sold.Net income increased from $8,473,000, or $0.20 per diluted share, for the second quarter of 2012 compared with $18,156,000 or $0.42 per diluted share for the second quarter of 2013. This increase was the net result of the factors noted above. Adjusted EBITDA totaled $25,340,000 in the second quarter of 2013 as compared to $5,940,000 in the second quarter of 2012.
FutureFuel Releases Second Quarter 2013 Results
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