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FutureFuel Releases Second Quarter 2013 Results

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)
     
  June 30, 2013 December 31, 2012
Assets    
Cash and cash equivalents $ 87,145 $ 58,737
Accounts receivable, net of allowances of $0 and $0, respectively 29,025 22,782
Inventory 50,626 41,992
Marketable securities 98,566 87,768
Other current assets 3,838 2,657
Total current assets 269,200 213,936
Property, plant and equipment, net 138,831 138,865
Other assets 2,516 2,436
Total noncurrent assets 141,347 141,301
Total Assets $ 410,547 $ 355,237
     
Liabilities and Stockholders' Equity    
Accounts payable $ 21,491 $ 16,476
Other current liabilities 26,316 19,758
Total current liabilities 47,807 36,234
Deferred revenue – long-term 26,129 27,684
Other noncurrent liabilities 30,770 30,985
Total noncurrent liabilities 56,899 58,669
Total liabilities 104,706 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 June 30, 2013 and December 31, 2012, respectively 4 4
Accumulated other comprehensive income 6,140 2,597
Additional paid in capital 276,333 257,041
Retained earnings 23,364 692
Total stockholders' equity 305,841 260,334
Total Liabilities and Stockholders' Equity $ 410,547 $ 355,237

 

 
FutureFuel Corp.
Condensed Consolidated Statements of Operations and Comprehensive Income
(Dollars in thousands, except per share amounts)
(Unaudited)
     
  Three Months Ended June 30,
  2013 2012
Revenues $ 106,063 $ 103,237
Cost of goods sold and distribution 78,437 88,837
Gross profit 27,626 14,400
Selling, general and administrative expenses 1,860 1,999
Research and development expenses 791 829
  2,651 2,828
Income from operations 24,975 11,572
Other income, net 3,679 1,118
Income before income taxes 28,654 12,690
Provision for income taxes 10,498 4,217
Net income $ 18,156 $ 8,473
     
Earnings per common share    
Basic $ 0.42 $ 0.21
Diluted $ 0.42 $ 0.20
Weighted average shares outstanding    
Basic 43,334,441 41,319,057
Diluted 43,361,555 41,462,594
     
Comprehensive Income    
Net income $ 18,156 $ 8,473
Other comprehensive loss from unrealized net losses on available-for-sale securities, net of tax of $(1,143) in 2013 and of $(730) in 2012 (1,836) (1,173)
Comprehensive income $ 16,320 $ 7,300

 

     
FutureFuel Corp.
Condensed Consolidated Statements of Operations and Comprehensive Income
(Dollars in thousands, except per share amounts)
(Unaudited)
     
  Six Months Ended June 30,
  2013 2012
Revenues $ 198,228 $ 188,964
Cost of goods sold and distribution 149,221 161,763
Gross profit 49,007 $ 27,201
Selling, general and administrative expenses 3,375 3,374
Research and development expenses 1,707 1,672
  5,082 5,046
Income from operations 43,925 22,155
Other income, net 4,885 2,514
Income before income taxes 48,810 24,669
Provision for income taxes 16,604 9,083
Net income $ 32,206 $ 15,586
     
Earnings per common share    
Basic $ 0.75 $ 0.38
Diluted $ 0.75 $ 0.38
Weighted average shares outstanding    
Basic 43,132,398 41,316,958
Diluted 43,156,827 41,477,864
     
Comprehensive Income    
Net income $ 32,206 $ 15,586
Other comprehensive income /(loss) from unrealized net gains/(losses) on available-for-sale securities, net of tax of $2,210 in 2013 and $(29) in 2012 3,543 (47)
Comprehensive income $ 35,749 $ 15,539

 

FutureFuel Corp.
Consolidated Statements of Cash Flows
(Dollars in thousands)
(Unaudited)
     
  Six Months Ended June 30,
  2013 2012
Cash flows provided by operating activities    
Net income $ 32,206 $ 15,586
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation 5,384 5,178
Provision for (benefit from) deferred income taxes (759) (1,495)
Change in fair value of derivative instruments 723 745
Gain on the sale of investments (2,089) (198)
Impairment of fixed assets 382 --
Loss on disposals of fixed assets -- 107
Stock based compensation -- 259
Noncash interest expense 12 12
Changes in operating assets and liabilities:    
Accounts receivable (1,844) 9,103
Accounts receivable – related parties (4,399) 3
Inventory (8,634) 14,082
Prepaid expenses 697 579
Accrued interest on marketable securities (200) --
Other assets (291) (3)
Accounts payable 5,452 (735)
Accounts payable – related parties (437) (2,677)
Income taxes payable 1,756 723
Accrued expenses and other current liabilities 2,914 2,047
Accrued expenses and other current liabilities – related parties 100  (26)
Deferred revenue (1,445) 100
Net cash provided by operating activities 29,528 43,390
Cash flows from investing activities    
Collateralization of derivative instruments (2,189) 1,606
Purchase of marketable securities (21,291) (24,892)
Proceeds from the sale of marketable securities 18,335 14,371
Proceeds from the sale of fixed assets -- 63
Capital expenditures (5,733) (4,068)
Net cash used in investing activities (10,878) (12,920)
Cash flows from financing activities    
Proceeds from the issuance of stock 19,292 72
Excess tax benefits associated with stock options -- 8
Payment of dividends (9,534) (8,264)
Net cash provided by/(used in) financing activities 9,758 (8,184)
Net change in cash and cash equivalents 28,408 22,286
Cash and cash equivalents at beginning of period 58,737 89,745
Cash and cash equivalents at end of period $ 87,145 $ 112,031
     
Cash paid for interest $  -- $ 2 
Cash paid for income taxes $ 13,387  $ 9,847

 

     
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 June 30,
  2013 2012
Adjusted EBITDA $ 25,340  $ 5,940
Depreciation (2,726) (2,594)
Non-cash stock-based compensation expense -- (259)
Interest and dividend income 1,689 1,147
Interest expense (6) (9)
Loss on disposal of property and equipment -- (44)
Gains on derivative instruments 2,327 8,625
Other income/(expense), net 2,030 (116)
Income tax expense (10,498) (4,217)
Net income $ 18,156  $ 8,473
     
  Six Months Ended June 30,
  2013 2012
Adjusted EBITDA $ 43,074 $ 22,524
Depreciation and amortization (5,384) (5,178)
Non-cash stock-based compensation expense  -- (259)
Retroactive reinstatement of 2012 $1.00 blender credit 2,535 --
Interest and dividend income 2,842 2,287
Interest expense (12) (15)
Loss on disposal of property and equipment -- (107)
Gains on derivative instruments  3,666 5,219
Other income/(expense), net 2,089 198
Income tax expense (16,604) (9,083)
Net income $ 32,206 $ 15,586
     

 

Reconciliation of Adjusted EBITDA to Net Cash Provided by Operating Activities
     
  Six Months Ended June 30, 2013 Six Months Ended June 30, 2012
Adjusted EBITDA $ 43,074 $  22,524
(Benefit from) provision for deferred income taxes (759) (1,495)
Impairment of fixed assets 382  -- 
Retroactive reinstatement of 2012 $1.00 blenders credit 2,535 --
Interest and dividend income 2,842 2,287
Income tax expense (16,604) (9,083)
Gains on derivative instruments 3,666 5,219
Change in fair value of derivative instruments and marketable securities 723 745
Changes in operating assets and liabilities, net (6,331) 23,196
Other  -- (3)
Net cash provided by operating activities $ 29,528 $ 43,390

 

     
FutureFuel Corp.
Condensed Consolidated Segment Income
(Dollars in thousands)
(Unaudited)
     
  Three Months Ended June 30,
  2013 2012
Revenues    
Chemicals $  42,026 $  40,893
Biofuels 64,037 62,344
Revenues $ 106,063 $ 103,237
     
Segment gross profit    
Chemicals $  14,784 $ 11,249
Biofuels 12,842 3,151
Segment gross profit 27,626 14,400
Corporate expenses (2,651) (2,828)
Income before interest and taxes 24,975 11,572
Interest and other income 3,719 1,243
Interest and other expense (40) (125)
Provision for income taxes (10,498) (4,217)
Net income $  18,156 $ 8,473

 

     
  Six Months Ended June 30,
  2013 2012
Revenues    
Chemicals $   82,162 $ 79,302
Biofuels 116,066 109,662
Revenues $   198,228 $ 188,964
     
Segment gross profit    
Chemicals $   27,850 $ 22,918
Biofuels 21,157 4,283
Segment gross profit 49,007 27,201
Corporate expenses (5,082) (5,046)
Income before interest and taxes 43,925 22,155
Interest and other income 4,931 2,529
Interest and other expense (46) (15)
Provision for income taxes (16,604) (9,083)
Net income $   32,206 $ 15,586

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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