This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

FutureFuel Releases Third 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)

       
    September 30, 2013 December 31, 2012
Assets      
Cash and cash equivalents    $ 97,442  $ 58,737
Accounts receivable, net of allowances of $0 and $0, respectively   34,288 22,782
Inventory   47,692 41,992
Marketable securities   103,917 87,768
Other current assets   2,366 2,657
Total current assets   285,705 213,936
Property, plant and equipment, net   126,141 138,865
Other assets   2,452 2,436
Total noncurrent assets   128,593 141,301
Total Assets    $ 414,298  $ 355,237
       
Liabilities and Stockholders' Equity      
Accounts payable    $ 28,415  $ 16,476
Other current liabilities   26,320 19,758
Total current liabilities   54,735 36,234
Deferred revenue – long-term   12,909 27,684
Other noncurrent liabilities   30,336 30,985
Total noncurrent liabilities   43,245 58,669
Total liabilities   97,980 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, 43,342,830 and 41,739,569 issued and outstanding as of September 30, 2013 and December 31, 2012, respectively   4 4
Accumulated other comprehensive income   6,047 2,597
Additional paid in capital   276,373 257,041
Retained earnings   33,894 692
Total stockholders' equity   316,318 260,334
Total Liabilities and Stockholders' Equity    $ 414,298  $ 355,237

FutureFuel Corp.

Condensed Consolidated Statements of Operations and Comprehensive Income

(Dollars in thousands, except per share amounts)

(Unaudited)

     
  Three Months Ended September 30,
  2013 2012
Revenues  $ 121,119  $ 88,276
Cost of goods sold and distribution 95,101 66,313
Gross profit 26,018 21,963
Selling, general and administrative expenses 1,637 1,828
Research and development expenses 866 954
  2,503 2,782
Income from operations 23,515 19,181
Other income, net 1,128 1,289
Income before income taxes 24,643 20,470
Provision for income taxes 9,346 7,921
Net income  $ 15,297  $ 12,549
     
Earnings per common share    
Basic  $ 0.35  $ 0.30
Diluted  $ 0.35  $ 0.30
Weighted average shares outstanding    
Basic 43,339,000 41,320,427
Diluted 43,394,369 41,471,373
     
Comprehensive Income    
Net income $ 15,297 $ 12,549
Other comprehensive (loss)/income from unrealized (losses)/gains on available-for-sale securities, net of tax of ($60) in 2013 and of $2,134 in 2012 (93) 3,423
Comprehensive income  $ 15,204  $ 15,972

FutureFuel Corp.

Condensed Consolidated Statements of Operations and Comprehensive Income

(Dollars in thousands, except per share amounts)

(Unaudited)

     
  Nine Months Ended September 30,
  2013 2012
Revenues  $ 319,347  $ 277,240
Cost of goods sold and distribution 244,322 228,076
Gross profit 75,025 49,164
Selling, general and administrative expenses 5,012 5,202
Research and development expenses 2,573 2,626
  7,585 7,828
Income from operations 67,440 41,336
Other income, net 6,013 3,803
Income before income taxes 73,453 45,139
Provision for income taxes 25,950 17,004
Net income  $ 47,503  $ 28,135
     
Earnings per common share    
Basic  $ 1.10  $ 0.68
Diluted  $ 1.10  $ 0.68
Weighted average shares outstanding    
Basic 43,202,022 41,318,123
Diluted 43,236,765 41,472,775
     
Comprehensive Income    
Net income  $ 47,503  $ 28,135
Other comprehensive income from unrealized gains on available for sale securities, net of tax of $2,150 in 2013 and $2,105 in 2012 3,450 3,376
Comprehensive income  $ 50,953  $ 31,511

FutureFuel Corp.

Consolidated Statements of Cash Flows

(Dollars in thousands)

(Unaudited)

     
  Nine Months Ended September 30,
  2013 2012
Cash flows provided by operating activities    
Net income  $ 47,503  $ 28,135
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation 8,050 7,789
(Benefit from)/provision for deferred income taxes (1,499) 42
Change in fair value of derivative instruments 715 (855)
Other than temporary impairment of marketable securities 336 --
Gain on the sale of investments (2,227) (281)
Impairment of fixed assets 17,963 --
Loss on disposals of fixed assets 87 62
Stock based compensation -- 281
Noncash interest expense 18 18
Changes in operating assets and liabilities:    
Accounts receivable (5,384) 15,668
Accounts receivable – related parties (6,122) (824)
Inventory  (5,700) 8,361
Prepaid expenses 1,253 1,050
Prepaid expenses – related parties -- (32)
Accrued interest on marketable securities 109 --
Other assets (230) (62)
Accounts payable 12,646 (2,556)
Accounts payable – related parties (707) (1,939)
Income taxes payable 514 3,670
Accrued expenses and other current liabilities 4,984 2,214
Accrued expenses and other current liabilities – related parties 155 (29)
Deferred revenue (15,184) 1,427
Net cash provided by operating activities 57,280 62,139
Cash flows from investing activities    
Collateralization of derivative instruments (1,572) 1,212
Purchase of marketable securities (39,565) (37,389)
Proceeds from the sale of marketable securities 30,907 17,638
Proceeds from the sale of fixed assets 55 247
Capital expenditures (13,431) (6,724)
Net cash used in investing activities (23,606) (25,016)
Cash flows from financing activities    
Proceeds from the issuance of stock 19,292 100
Excess tax benefits associated with stock options 40 21
Payment of dividends (14,301) (12,396)
Net cash provided by/(used in) financing activities 5,031 (12,275)
Net change in cash and cash equivalents 38,705 24,848
Cash and cash equivalents at beginning of period 58,737 89,745
Cash and cash equivalents at end of period  $ 97,442  $ 114,593
     
Cash paid for interest $ --   $ 3
Cash paid for income taxes  $ 26,900  $ 13,539

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 Three Months Ended
  September 30, 2013 September 30, 2012
Adjusted EBITDA  $ 28,177  $ 23,991
Depreciation (2,666) (2,611)
Non-cash stock-based compensation expense -- (22)
Interest and dividend income 1,370 1,144
Interest expense (6) (6)
(Loss)/gain on disposal of property and equipment (87) 45
Loss on derivative instruments (1,947) (2,154)
Other income/(expense), net (198) 83
Income tax expense (9,346) (7,921)
Net income  $ 15,297  $ 12,549
     
  Nine Months Ended Nine Months Ended
  September 30, 2013 September 30, 2012
Adjusted EBITDA  $ 71,251  $ 46,515
Depreciation and amortization (8,050) (7,789)
Non-cash stock-based compensation -- (281)
Retroactive reinstatement of 2012 $1 blender credit 2,535 --
Interest and dividend income 4,212 3,431
Interest expense (18) (21)
Loss on disposal of property and equipment (87) (62)
Gains on derivative instruments 1,719 3,065
Other income/(expense), net 1,891 281
Income tax expense (25,950) (17,004)
Net income  $ 47,503  $ 28,135

Reconciliation of Adjusted EBITDA to Net Cash Provided by Operating Activities

     
  Nine Months Ended Nine Months Ended
  September 30, 2013 September 30, 2012
Adjusted EBITDA  $ 71,251  $ 46,515
Provision for deferred income taxes (1,499) 42
Retroactive reinstatement of 2012 $1.00 blenders credit 2,535 --
Impairment of fixed assets 17,963  
Interest and dividend income 4,212 3,431
Income tax expense (25,950) (17,004)
Gains on derivative instruments 1,719 3,065
Change in fair value of derivative instruments and marketable securities 715 (855)
Changes in operating assets and liabilities, net (13,666) 26,948
Other -- (3)
Net cash provided by operating activities  $ 57,280  $ 62,139

FutureFuel Corp.

Condensed Consolidated Segment Income

(Dollars in thousands)

(Unaudited)

         
  For the three months ended September 30, For the nine months ended September 30,
  2013 2012 2013 2012
Revenues        
Chemicals  $ 43,685  $ 40,327  $ 125,847  $ 119,628
Biofuels 77,434 47,949 193,500 157,612
Revenues  $ 121,119  $ 88,276  $ 319,347  $ 277,240
         
Segment gross profit        
Chemicals  $ 13,827  $ 15,357  $ 41,678  $ 38,277
Biofuels 12,191 6,606 33,347 10,887
Segment gross margins 26,018 21,963 75,025 49,164
Corporate expenses (2,503) (2,782) (7,585) (7,828)
Income before interest and taxes 23,515 19,181 67,440 41,336
Interest and other income 1,370 1,295 6,103 3,824
Interest and other expenses (242) (6) (90) (21)
Provision for income taxes (9,346) (7,921) (25,950) (17,004)
Net income  $ 15,297  $ 12,549  $ 47,503  $ 28,135

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: FutureFuel Corp.
         Lee E. Mikles, President
         (805) 565-9800
         www.futurefuelcorporation.com

9 of 9

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs