FutureFuel Releases Third Quarter And Nine-Month 2016 Results

FutureFuel Third Quarter Net Income Increases 165% or $8 Million

Reports Net Income of $12.9 Million or $0.29 per Diluted Share, and Adjusted EBITDA of $10.1 Million

CLAYTON, Mo., Nov. 09, 2016 (GLOBE NEWSWIRE) -- FutureFuel Corp. (NYSE:FF) ("FutureFuel"), a manufacturer of custom and performance chemicals and biofuels, today announced financial results for the third quarter and the nine months ended September 30, 2016.

Third Quarter 2016 Financial Highlights (all comparisons are with the third quarter of 2015) 
  • Revenues were $69.3 million, down 35.3% from $107.1 million
  • EBITDA was $10.1 million, up 290.3% from $2.6 million
  • Net income increased to $12.9 million, or $0.29 per diluted share, from $4.9 million, or $0.11 per diluted share.

Nine Month 2016 Financial Highlights (all comparisons are with the first nine months of 2015) 
  • Revenues were $183.8 million, down 30.8% from $265.7 million
  • EBITDA was $36.3 million, up 46.8% from $24.7 million
  • Net income increased to $37.7 million, or $0.86 per diluted share, from $16.8 million, or $0.38 per diluted share.

"We delivered solid operating earnings and cash flow in the third quarter driven by an improved regulatory environment in our biofuels business. We continue to manage through softness in some key custom chemical markets," said Paul Flynn, Executive Vice President of Business and Marketing for FutureFuel Chemical Company.

2016 Regular Cash Dividends

FutureFuel declared normal quarterly dividends of $0.06 per share for the third quarter of 2016.  The remaining dividends will be paid in December.

Financial Overview and Key Operating Metrics

Financial and operating metrics, which include non-GAAP financial measures, include dollars in thousands, except per share amounts:  
FutureFuel Corp.
Certain Financial and Operating Metrics
(Dollars in thousands, except per share amounts)
(Unaudited)
 
  Three months ended September 30:
          Dollar   %
    2016       2015     Change   Change
Revenues $ 69,306     $ 107,054     $ (37,748 )     (35.3 %)
Income from operations $ 7,841     $ 5,933     $ 1,908       32.2 %
Net income $ 12,868     $ 4,850     $ 8,018       165.3 %
Earnings per common share:              
Basic $ 0.29     $ 0.11     $ 0.18       163.6 %
Diluted $ 0.29     $ 0.11     $ 0.18       163.6 %
Capital expenditures and intangibles (net of customer reimbursements and regulatory grants) $ 853     $ 996     $ (143 )     (14.4 %)
Adjusted EBITDA $ 10,117     $ 2,592     $ 7,525       290.3 %
               
               
  Nine months ended September 30:
          Dollar   %
    2016       2015     Change   Change
Revenues $ 183,820     $ 265,739     $ (81,919 )     (30.8 %)
Income from operations $ 21,746     $ 19,887     $ 1,859       9.3 %
Net income $ 37,661     $ 16,774     $ 20,887       124.5 %
Earnings per common share:              
Basic $ 0.86     $ 0.38     $ 0.48       126.3 %
Diluted $ 0.86     $ 0.38     $ 0.48       126.3 %
Capital expenditures and intangibles (net of customer reimbursements and regulatory grants) $ 2,988     $ 5,967     $ (2,979 )     (49.9 %)
Adjusted EBITDA $ 36,328     $ 24,745     $ 11,583       46.8 %

Third Quarter Financial and Business Summary

Sales revenue in the three months ended September 30, 2016 decreased by $37,748,000 compared to the three months ended September 30, 2015. Sales revenue from the chemicals segment declined $7,308,000 compared to 2015 and accounted for 35.1% of total revenues in the three months ended September 30, 2016, as compared to 29.5% in the same period in 2015.  Sales revenue from the biofuels segment decreased $30,440,000 and accounted for 64.9% of total revenues in the third three months of 2016 as compared to 70.5% in the same period in 2015.

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