CLAYTON, Mo., March 16, 2017 (GLOBE NEWSWIRE) -- FutureFuel Corp. (NYSE:FF) (“FutureFuel”), a manufacturer of custom and performance chemicals and biofuels, today
announced financial results for the year ended December 31, 2016.
Fourth Quarter 2016 Financial Highlights (all comparisons are with the fourth quarter of
2015)
- Revenues were $69.4 million, up 104.8% from $33.9 million
- Adjusted EBITDA was $18.9 million, down 25.3% from $25.4 million
- Net income decreased to $18.7 million, or $0.43 per diluted share, from $29.6 million, or $0.68 per diluted
share.
2016 Financial Highlights (all comparisons are with the year ended December 31, 2015)
- Revenues were $253.2 million, down 15.5% from $299.6 million
- Adjusted EBITDA was $55.3 million, up 10.3% from $50.1 million
- Net income increased to $56.3 million, or $1.29 per diluted share, from $46.4 million, or $1.06 per diluted share.
“Net income in 2016 of $56.3 million demonstrated the resilience of our company against the backdrop of a
contracted Agro and Energy chemical market. In biodiesel, while the retail fuels market was less favorable to our operation, we
responded to a clearly defined regulatory environment and set a new production record at our Batesville plant. In 2017, we return
to a less certain biofuels regulatory landscape which we have successfully worked through in the past. We also anticipate some
improvement in our chemicals business," said Tom McKinlay, Chief Operating Officer for FutureFuel Corp.
2016 Regular Cash Dividends
FutureFuel declared normal quarterly dividends of $0.06 per share for 2017 and a special cash dividend of $2.29
paid in January 2017.
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 |
| (Unaudited) |
| |
| |
|
Three months ended
December 31: |
|
| |
|
|
|
|
|
|
|
|
|
Dollar |
|
|
% |
|
| |
|
2016 |
|
|
2015 |
|
|
Change |
|
|
Change |
|
| Revenues |
|
$ |
69,373 |
|
|
$ |
33,872 |
|
|
$ |
35,501 |
|
|
104.8% |
|
| Income from operations |
|
$ |
14,777 |
|
|
$ |
27,084 |
|
|
$ |
(12,307 |
) |
|
(45.4% |
) |
| Net income |
|
$ |
18,680 |
|
|
$ |
29,647 |
|
|
$ |
(10,967 |
) |
|
(37.0% |
) |
| Earnings per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Basic |
|
$ |
0.43 |
|
|
$ |
0.68 |
|
|
$ |
(0.25 |
) |
|
(36.8% |
) |
| Diluted |
|
$ |
0.43 |
|
|
$ |
0.68 |
|
|
$ |
(0.25 |
) |
|
(36.8% |
) |
| Capital expenditures and intangibles (net of customer reimbursements and regulatory
grants) |
|
$ |
2,088 |
|
|
$ |
831 |
|
|
$ |
1,257 |
|
|
151.3% |
|
| Adjusted EBITDA |
|
$ |
18,933 |
|
|
$ |
25,352 |
|
|
$ |
(6,419 |
) |
|
(25.3% |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Twelve months ended
December 31: |
|
| |
|
|
|
|
|
|
|
|
|
Dollar |
|
|
% |
|
| |
|
2016 |
|
|
2015 |
|
|
Change |
|
|
Change |
|
| Revenues |
|
$ |
253,193 |
|
|
$ |
299,611 |
|
|
$ |
(46,418 |
) |
|
(15.5% |
) |
| Income from operations |
|
$ |
36,523 |
|
|
$ |
46,971 |
|
|
$ |
(10,448 |
) |
|
(22.2% |
) |
| Net income |
|
$ |
56,341 |
|
|
$ |
46,421 |
|
|
$ |
9,920 |
|
|
21.4% |
|
| Earnings per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Basic |
|
$ |
1.29 |
|
|
$ |
1.06 |
|
|
$ |
0.23 |
|
|
21.8% |
|
| Diluted |
|
$ |
1.29 |
|
|
$ |
1.06 |
|
|
$ |
0.23 |
|
|
21.8% |
|
| Capital expenditures and intangibles (net of customer reimbursements and regulatory
grants) |
|
$ |
4,223 |
|
|
$ |
6,798 |
|
|
$ |
(2,575 |
) |
|
(37.9% |
) |
| Adjusted EBITDA |
|
$ |
55,261 |
|
|
$ |
50,097 |
|
|
$ |
5,164 |
|
|
10.3% |
|
2016 Financial and Business Summary
Revenues for the year ended December 31, 2016 were $253.2 million as compared to revenues for the year ended December 31, 2015
of $299.6 million, a decrease of 15.5%.
Chemical sales revenue decreased 19.8% or $24,941 in 2016 compared with 2015. Sales revenue for our custom chemicals product
line (chemicals produced for specific customers) totaled $82,667, a decline of $25,493 from 2015. The decline in the laundry
detergent additive with the decline in custom manufacturing products from contraction in the Agro chemical and energy markets were
the most significant reductions in the custom chemical product line. In addition, sales of custom chemicals declined as result of
customers insourcing some external production during contraction in the Agro chemical and energy markets. Performance chemicals
(comprised of multi-customer products which are sold based on specification) revenue was $18,240 in 2016, an increase of $552 from
2015. This increase was from sales of polymer modifier products and glycerin.
Biofuels sales revenue decreased 12.4% or $21,477 in 2016 compared to 2015 primarily from reduced gross sales in common carrier
pipelines. Common carrier pipeline sales totaled $9,018 compared to $66,544 in 2015. Increased sales volumes of biodiesel and
diesel in a favorable market (with both the blenders tax credit and the renewable fuel volume obligation in place) helped offset
the decline in common carrier pipeline revenue. The market faced greater headwinds in 2015 without either benefit in place for the
majority of the year. The renewable volume obligation was set in late 2015 and the BTC was reinstated in December 2015 and made
retroactive to January 1, 2015. At the end of 2015, as a result of contractual provisions with certain customers, a share of the
BTC was owed upon reinstatement of the BTC to customers. No such adjustment was made in 2016 as the BTC was in full effect for the
year and expired on December 31, 2016.
FutureFuel reported net income of $56.3 million, or $1.29 per diluted share, for 2016, compared with net income of $46.4
million, or $1.06 per diluted share in 2015. Adjusted EBITDA for 2016 totaled $55.3 million, up from $50.1 million in 2015.
Capital Expenditures
Capital expenditures and intangibles were $4.5 million in 2016, compared with $8.6 million in 2015. FutureFuel was reimbursed
for a portion of these expenditures by certain customers as summarized in the following table.
| (Dollars in thousands) |
| |
| |
|
2016 |
|
|
2015 |
|
| Cash paid for capital expenditures and intangibles |
|
$ |
4,495 |
|
|
$ |
8,630 |
|
| Cash received as reimbursement of capital expenditures |
|
$ |
(272 |
) |
|
$ |
(1,832 |
) |
| Cash paid, net of reimbursement, for capital expenditures |
|
$ |
4,223 |
|
|
$ |
6,798 |
|
Cash and Cash Equivalents and Marketable Securities
Cash and cash equivalents and marketable securities totaled $305 million as of December 31, 2016, compared with
$229 million as of December 31, 2015.
About FutureFuel
FutureFuel is a leading manufacturer of diversified chemical products and biofuels. FutureFuel’s chemicals
segment manufactures specialty chemicals for specific customers (“custom manufacturing”) as well as multi-customer specialty
chemicals (“performance chemicals”). FutureFuel’s custom manufacturing product portfolio includes a laundry detergent additive,
proprietary agrochemicals, adhesion promoters, a biocide intermediate, and an antioxidant precursor. FutureFuel’s performance
chemicals products include a portfolio of proprietary nylon and polyester polymer modifiers and several small-volume specialty
chemicals and solvents for diverse applications. FutureFuel’s biofuels segment primarily produces and sells biodiesel to its
customers. Please visit www.futurefuelcorporation.com for more information.
Forward-Looking Statements
This document contains forward-looking statements within the meaning of the Private Securities Litigation Reform
Act of 1995. Forward-looking statements deal with FutureFuel’s current plans, intentions, beliefs, and expectations, and statements
of future economic performance. Statements containing such terms as “believe,” “do not believe,” “plan,” “expect,” “intend,”
“estimate,” “anticipate,” and other phrases of similar meaning are considered to contain uncertainty and are forward-looking
statements. In addition, from time to time FutureFuel or its representatives have made or will make forward-looking statements
orally or in writing. Furthermore, such forward-looking statements may be included in various filings that the company makes with
United States Securities and Exchange Commission (the “SEC”), in press releases, or in oral statements made by or with the approval
of one of FutureFuel’s authorized executive officers.
These forward-looking statements are subject to certain known and unknown risks and uncertainties, as well as
assumptions that could cause actual results to differ materially from those reflected in these forward-looking statements. Factors
that might cause actual results to differ include, but are not limited to, those set forth under the headings “Risk Factors” and
“Management’s Discussion and Analysis of Financial Condition and Results of Operations” in FutureFuel’s Form 10-K Annual Report for
the year ended December 31, 2016 and in its future filings made with the SEC. An investor should not place undue reliance on
any forward-looking statements contained in this document, which reflect FutureFuel management’s opinions only as of their
respective dates. Except as required by law, the company undertakes no obligation to revise or publicly release the results of any
revisions to forward-looking statements. The risks and uncertainties described in this document and in current and future filings
with the SEC are not the only ones faced by FutureFuel. New factors emerge from time to time, and it is not possible for the
company to predict which will arise. There may be additional risks not presently known to the company or that the company currently
believes are immaterial to its business. In addition, FutureFuel cannot assess the impact of each factor on its business or the
extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any
forward-looking statements. If any such risks occur, FutureFuel’s business, operating results, liquidity, and financial condition
could be materially affected in an adverse manner. An investor should consult any additional disclosures FutureFuel has made or
will make in its reports to the SEC on Forms 10-K, 10-Q, and 8-K, and any amendments thereto. All subsequent written and oral
forward-looking statements attributable to FutureFuel or persons acting on its behalf are expressly qualified in their entirety by
the cautionary statements contained in this document.
Non-GAAP Financial Measures
In this press release, FutureFuel used adjusted EBITDA as a key operating metric to measure both performance and
liquidity. Adjusted EBITDA is a non-GAAP financial measure. Adjusted EBITDA is not a substitute for operating income, net income,
or cash flow from operating activities (each as determined in accordance with GAAP), as a measure of performance or liquidity.
Adjusted EBITDA has limitations as an analytical tool, and should not be considered in isolation or as a substitute for analysis of
results as reported under GAAP. FutureFuel defines adjusted EBITDA as net income before interest, income taxes, depreciation, and
amortization expenses, excluding, when applicable, non-cash share-based compensation expense, public offering expenses,
acquisition-related transaction costs, purchase accounting adjustments, loss on disposal of property and equipment, gains or losses
on derivative instruments, other non-operating income or expense. Information relating to adjusted EBITDA is provided so that
investors have the same data that management employs in assessing the overall operation and liquidity of FutureFuel’s business.
FutureFuel’s calculation of adjusted EBITDA may be different from similarly titled measures used by other companies; therefore, the
results of its calculation are not necessarily comparable to the results of other companies.
Adjusted EBITDA allows FutureFuel’s chief operating decision makers to assess the performance and liquidity of
FutureFuel’s business on a consolidated basis to assess the ability of its operating segments to produce operating cash flow to
fund working capital needs, to fund capital expenditures, and to pay dividends. In particular, FutureFuel management believes that
adjusted EBITDA permits a comparative assessment of FutureFuel’s operating performance and liquidity, relative to a performance and
liquidity based on GAAP results, while isolating the effects of depreciation and amortization, which may vary among its operating
segments without any correlation to their underlying operating performance, and of non-cash stock-based compensation expense, which
is a non-cash expense that varies widely among similar companies, and gains and losses on derivative instruments, whose immediate
recognition can cause net income to be volatile from quarter to quarter due to the timing of the valuation change in the derivative
instruments relative to the sale of biofuel.
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) |
| (Audited) |
| |
| |
|
December 31,
2016 |
|
|
December 31,
2015 |
|
| Assets |
|
|
|
|
|
|
|
|
| Cash and cash equivalents |
|
$ |
199,272 |
|
|
$ |
154,049 |
|
| Accounts receivable, inclusive of the blenders' tax credit of $5,495 and $30,895
and net of allowances for bad debt of $0 and $0, at December 31, 2016 and December 31, 2015, respectively |
|
|
24,744 |
|
|
|
46,329 |
|
| Inventory |
|
|
52,093 |
|
|
|
64,957 |
|
| Marketable securities |
|
|
106,146 |
|
|
|
74,667 |
|
| Other current assets |
|
|
23,027 |
|
|
|
19,822 |
|
| Total current assets |
|
|
405,282 |
|
|
|
359,824 |
|
| Property, plant and equipment, net |
|
|
118,152 |
|
|
|
124,330 |
|
| Other assets |
|
|
5,609 |
|
|
|
4,955 |
|
| Total noncurrent assets |
|
|
123,761 |
|
|
|
129,285 |
|
| Total Assets |
|
$ |
529,043 |
|
|
$ |
489,109 |
|
| Liabilities and Stockholders’ Equity |
|
|
|
|
|
|
|
|
| Accounts payable |
|
$ |
24,053 |
|
|
$ |
34,686 |
|
| Dividends payable |
|
|
110,688 |
|
|
|
|
|
| Other current liabilities |
|
|
9,308 |
|
|
|
13,867 |
|
| Total current liabilities |
|
|
144,049 |
|
|
|
48,553 |
|
| Deferred revenue – long-term |
|
|
16,792 |
|
|
|
15,908 |
|
| Other noncurrent liabilities |
|
|
35,389 |
|
|
|
30,336 |
|
| Total noncurrent liabilities |
|
|
52,181 |
|
|
|
46,244 |
|
| Total liabilities |
|
|
196,230 |
|
|
|
94,797 |
|
| 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, 43,749,970 and
43,715,832, issued and outstanding as of December 31, 2016 and 2015, respectively |
|
|
4 |
|
|
|
4 |
|
| Accumulated other comprehensive income |
|
|
3,540 |
|
|
|
2,055 |
|
| Additional paid in capital |
|
|
281,087 |
|
|
|
279,231 |
|
| Retained earnings |
|
|
48,182 |
|
|
|
113,022 |
|
| Total Stockholders’ Equity |
|
|
332,813 |
|
|
|
394,312 |
|
| Total Liabilities and Stockholders’ Equity |
|
$ |
529,043 |
|
|
$ |
489,109 |
|
| FutureFuel Corp. |
| Condensed Consolidated Statements of
Operations and Comprehensive Income |
| (Dollars in thousands, except per share
amounts) |
| (Unaudited) |
| |
| |
|
Three months ended
December 31: |
|
| |
|
2016 |
|
|
2015 |
|
| Revenue |
|
$ |
69,373 |
|
|
$ |
33,872 |
|
| Cost of goods sold and distribution |
|
|
51,859 |
|
|
|
4,359 |
|
| Gross profit |
|
|
17,514 |
|
|
|
29,513 |
|
| Selling, general, and administrative expenses |
|
|
2,135 |
|
|
|
1,811 |
|
| Research and development expenses |
|
|
602 |
|
|
|
618 |
|
| |
|
|
2,737 |
|
|
|
2,429 |
|
| Income from operations |
|
|
14,777 |
|
|
|
27,084 |
|
| Other income, net |
|
|
1,025 |
|
|
|
(51 |
) |
| Income before income taxes |
|
|
15,802 |
|
|
|
27,033 |
|
| Benefit for income taxes |
|
|
(2,878 |
) |
|
|
(2,614 |
) |
| Net income |
|
$ |
18,680 |
|
|
$ |
29,647 |
|
| |
|
|
|
|
|
|
|
|
| Earnings per common share |
|
|
|
|
|
|
|
|
| Basic |
|
$ |
0.43 |
|
|
$ |
0.68 |
|
| Diluted |
|
$ |
0.43 |
|
|
$ |
0.68 |
|
| Weighted average shares outstanding |
|
|
|
|
|
|
|
|
| Basic |
|
|
43,595,456 |
|
|
|
43,473,416 |
|
| Diluted |
|
|
43,600,386 |
|
|
|
43,509,199 |
|
| |
|
|
|
|
|
|
|
|
| Comprehensive Income |
|
|
|
|
|
|
|
|
| Net income |
|
$ |
18,680 |
|
|
$ |
29,647 |
|
| Other comprehensive income from unrealized |
|
|
|
|
|
|
|
|
| net gains on available-for-sale securities |
|
|
929 |
|
|
|
1,517 |
|
| Income tax effect |
|
|
(326 |
) |
|
|
(556 |
) |
| Total unrealized gains, net of tax |
|
|
603 |
|
|
|
961 |
|
| Comprehensive income |
|
$ |
19,283 |
|
|
$ |
30,608 |
|
| FutureFuel Corp. |
| Condensed Consolidated Statements of
Operations and Comprehensive Income |
| (Dollars in thousands, except per share
amounts) |
| (Audited) |
| |
| |
|
Twelve months ended
December 31: |
|
| |
|
2016 |
|
|
2015 |
|
| Revenue |
|
$ |
253,193 |
|
|
$ |
299,611 |
|
| Cost of goods sold and distribution |
|
|
206,335 |
|
|
|
242,565 |
|
| Gross profit |
|
|
46,858 |
|
|
|
57,046 |
|
| Selling, general, and administrative expenses |
|
|
7,620 |
|
|
|
7,334 |
|
| Research and development expenses |
|
|
2,715 |
|
|
|
2,741 |
|
| |
|
|
10,335 |
|
|
|
10,075 |
|
| Income from operations |
|
|
36,523 |
|
|
|
46,971 |
|
| Other income, net |
|
|
4,283 |
|
|
|
4,898 |
|
| Income before income taxes |
|
|
40,806 |
|
|
|
51,869 |
|
| (Benefit)/provision for income taxes |
|
|
(15,535 |
) |
|
|
5,448 |
|
| Net income |
|
$ |
56,341 |
|
|
$ |
46,421 |
|
| |
|
|
|
|
|
|
|
|
| Earnings per common share |
|
|
|
|
|
|
|
|
| Basic |
|
$ |
1.29 |
|
|
$ |
1.06 |
|
| Diluted |
|
$ |
1.29 |
|
|
$ |
1.06 |
|
| Weighted average shares outstanding |
|
|
|
|
|
|
|
|
| Basic |
|
|
43,542,785 |
|
|
|
43,432,149 |
|
| Diluted |
|
|
43,547,538 |
|
|
|
43,445,730 |
|
| |
|
|
|
|
|
|
|
|
| Comprehensive Income |
|
|
|
|
|
|
|
|
| Net income |
|
$ |
56,341 |
|
|
$ |
46,421 |
|
| Other comprehensive income/(loss) from unrealized |
|
|
|
|
|
|
|
|
| net gains/(losses) on available-for-sale securities |
|
|
2,643 |
|
|
|
(3,518 |
) |
| Income tax effect |
|
|
(1,158 |
) |
|
|
1,314 |
|
| Total unrealized gains/(losses), net of tax |
|
|
1,485 |
|
|
|
(2,204 |
) |
| Comprehensive income |
|
$ |
57,826 |
|
|
$ |
44,217 |
|
| FutureFuel Corp. |
| Consolidated Statements of Cash
Flows |
| For the Years Ended December 31, 2016 and
2015 |
| (Dollars in thousands) |
| (Audited) |
| |
| |
|
2016 |
|
|
2015 |
|
| Cash flows provided by operating activities |
|
|
|
|
|
|
|
|
| Net income |
|
$ |
56,341 |
|
|
$ |
46,421 |
|
| Adjustments to reconcile net income to net cash provided by operating
activities: |
|
|
|
|
|
|
|
|
| Depreciation |
|
|
10,819 |
|
|
|
10,187 |
|
| Amortization of deferred financing costs |
|
|
144 |
|
|
|
- |
|
| Benefit for deferred income taxes |
|
|
(5,271 |
) |
|
|
(3,721 |
) |
| Change in fair value of derivative instruments |
|
|
3,621 |
|
|
|
(3,295 |
) |
| Other than temporary impairment of marketable securities |
|
|
2,184 |
|
|
|
606 |
|
| Impairment of fixed assets |
|
|
178 |
|
|
|
- |
|
| Gain on the sale of investments |
|
|
(843 |
) |
|
|
(713 |
) |
| Stock based compensation |
|
|
1,908 |
|
|
|
2,043 |
|
| Losses on disposals of fixed assets |
|
|
147 |
|
|
|
178 |
|
| Noncash interest expense |
|
|
27 |
|
|
|
26 |
|
| Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
| Accounts receivable |
|
|
21,960 |
|
|
|
3,816 |
|
| Accounts receivable – related parties |
|
|
(375 |
) |
|
|
1,163 |
|
| Inventory |
|
|
12,864 |
|
|
|
(19,604 |
) |
| Income tax receivable |
|
|
(6,394 |
) |
|
|
5,602 |
|
| Prepaid expenses |
|
|
(52 |
) |
|
|
28 |
|
| Prepaid expenses – related party |
|
|
23 |
|
|
|
(35 |
) |
| Accrued interest on marketable securities |
|
|
(110 |
) |
|
|
30 |
|
| Other assets |
|
|
(556 |
) |
|
|
(668 |
) |
| Accounts payable |
|
|
(11,643 |
) |
|
|
4,056 |
|
| Accounts payable – related parties |
|
|
1,010 |
|
|
|
(2,668 |
) |
| Accrued expenses and other current liabilities |
|
|
(645 |
) |
|
|
(1,673 |
) |
| Accrued expenses and other current liabilities – related parties |
|
|
142 |
|
|
|
(46 |
) |
| Deferred revenue |
|
|
3,734 |
|
|
|
721 |
|
| Other noncurrent liabilities |
|
|
1,762 |
|
|
|
(2,831 |
) |
| Net cash provided by operating activities |
|
|
90,975 |
|
|
|
39,623 |
|
| Cash flows from investing activities |
|
|
|
|
|
|
|
|
| Collateralization of derivative instruments |
|
|
(535 |
) |
|
|
1,239 |
|
| Purchase of marketable securities |
|
|
(60,664 |
) |
|
|
(39,136 |
) |
| Proceeds from the sale of marketable securities |
|
|
30,487 |
|
|
|
48,546 |
|
| Proceeds from the sale of fixed assets |
|
|
- |
|
|
|
6 |
|
| Expenditures for intangible assets |
|
|
- |
|
|
|
(1,408 |
) |
| Capital expenditures |
|
|
(4,495 |
) |
|
|
(7,222 |
) |
| Net cash (used in)/provided by investing activities |
|
|
(35,207 |
) |
|
|
2,025 |
|
| Cash flows from financing activities |
|
|
|
|
|
|
|
|
| Minimum tax withholding on stock options exercised and awards vested |
|
|
(128 |
) |
|
|
(120 |
) |
| Excess tax benefits associated with stock options and awards |
|
|
(137 |
) |
|
|
(344 |
) |
| Deferred financing costs |
|
|
- |
|
|
|
(721 |
) |
| Proceeds from issuance of stock |
|
|
213 |
|
|
|
- |
|
| Payment of dividends |
|
|
(10,493 |
) |
|
|
(10,493 |
) |
| Net cash used in financing activities |
|
|
(10,545 |
) |
|
|
(11,678 |
) |
| Net change in cash and cash equivalents |
|
|
45,223 |
|
|
|
29,970 |
|
| Cash and cash equivalents at beginning of period |
|
|
154,049 |
|
|
|
124,079 |
|
| Cash and cash equivalents at end of period |
|
$ |
199,272 |
|
|
$ |
154,049 |
|
| |
|
|
|
|
|
|
|
|
| Cash paid for interest |
|
$ |
- |
|
|
$ |
- |
|
| Cash paid for income taxes |
|
$ |
987 |
|
|
$ |
13,381 |
|
| Noncash items incurred: |
|
|
|
|
|
|
|
|
| Noncash dividends declared |
|
$ |
110,688 |
|
|
$ |
- |
|
| Noncash items incurred for capital expenditures |
|
$ |
417 |
|
|
$ |
- |
|
| |
| FutureFuel Corp. |
| Reconciliation of Non-GAAP Financial Measure
to Financial Measure |
| (Dollars in thousands) |
| (Audited) |
| |
| Reconciliation of Adjusted EBITDA to Net Income |
| |
| |
|
Three months
ended December 31: |
|
|
Twelve months ended
December 31: |
|
| |
|
2016 |
|
|
2015 |
|
|
2016 |
|
|
2015 |
|
| Adjusted EBITDA |
|
$ |
21,805 |
|
|
$ |
25,352 |
|
|
$ |
55,261 |
|
|
$ |
50,097 |
|
| Depreciation and amortization |
|
|
(2,889 |
) |
|
|
(2,639 |
) |
|
|
(10,963 |
) |
|
|
(10,187 |
) |
| Non-cash stock-based compensation |
|
|
(477 |
) |
|
|
(612 |
) |
|
|
(1,908 |
) |
|
|
(2,043 |
) |
| Interest and dividend income |
|
|
1,706 |
|
|
|
1,098 |
|
|
|
6,152 |
|
|
|
5,106 |
|
| Interest expense |
|
|
(7 |
) |
|
|
(43 |
) |
|
|
(27 |
) |
|
|
(134 |
) |
| Losses on disposal of property and equipment |
|
|
- |
|
|
|
(10 |
) |
|
|
(147 |
) |
|
|
(178 |
) |
| (Losses)/gains on derivative instruments |
|
|
(845 |
) |
|
|
4,982 |
|
|
|
(6,220 |
) |
|
|
9,101 |
|
| (Losses)/gains on marketable securities |
|
|
(613 |
) |
|
|
(1,095 |
) |
|
|
(1,340 |
) |
|
|
107 |
|
| Income tax benefit/(expense) |
|
|
2 |
|
|
|
2,614 |
|
|
|
15,535 |
|
|
|
(5,448 |
) |
| Other |
|
|
(2 |
) |
|
|
|
|
|
|
(2 |
) |
|
|
|
|
| Net income |
|
$ |
18,680 |
|
|
$ |
29,647 |
|
|
$ |
56,341 |
|
|
$ |
46,421 |
|
| Reconciliation of Adjusted EBITDA to Net Cash Provided by
Operating Activities |
| |
| |
|
Twelve months ended
December 31: |
|
| |
|
2016 |
|
|
2015 |
|
| Adjusted EBITDA |
|
$ |
55,261 |
|
|
$ |
50,097 |
|
| Amortization of deferred financing costs |
|
|
- |
|
|
|
(108 |
) |
| Benefit for deferred income taxes |
|
|
(5,271 |
) |
|
|
(3,721 |
) |
| Impairment of fixed assets |
|
|
178 |
|
|
|
- |
|
| Interest and dividend income |
|
|
6,152 |
|
|
|
5,106 |
|
| Income tax benefit/(expense) |
|
|
15,535 |
|
|
|
(5,448 |
) |
| (Losses)/gains on derivative instruments |
|
|
(6,220 |
) |
|
|
9,101 |
|
| Change in fair value of derivative instruments |
|
|
3,621 |
|
|
|
(3,295 |
) |
| Changes in operating assets and liabilities, net |
|
|
21,720 |
|
|
|
(12,109 |
) |
| Other |
|
|
(1 |
) |
|
|
- |
|
| Net cash provided by operating activities |
|
$ |
90,975 |
|
|
$ |
39,623 |
|
| FutureFuel Corp. |
| Condensed Consolidated Segment
Income |
| (Dollars in thousands) |
| (Audited) |
| |
| |
|
Three months
ended
December 31: |
|
|
Twelve months
ended
December 31: |
|
| |
|
2016 |
|
|
2015 |
|
|
2016 |
|
|
2015 |
|
| Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Custom chemicals |
|
$ |
22,519 |
|
|
$ |
23,539 |
|
|
$ |
82,667 |
|
|
$ |
108,160 |
|
| Performance chemicals |
|
|
4,458 |
|
|
|
3,808 |
|
|
|
18,240 |
|
|
|
17,688 |
|
| Chemicals revenue |
|
$ |
26,977 |
|
|
$ |
27,347 |
|
|
$ |
100,907 |
|
|
$ |
125,848 |
|
| Biofuels revenue |
|
|
42,396 |
|
|
|
6,525 |
|
|
|
152,286 |
|
|
|
173,763 |
|
| Total Revenue |
|
$ |
69,373 |
|
|
$ |
33,872 |
|
|
$ |
253,193 |
|
|
$ |
299,611 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Segment gross profit |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Chemicals |
|
$ |
9,332 |
|
|
$ |
7,293 |
|
|
$ |
32,055 |
|
|
$ |
35,452 |
|
| Biofuels |
|
|
8,181 |
|
|
|
22,220 |
|
|
|
14,803 |
|
|
|
21,594 |
|
| Total gross profit |
|
$ |
17,513 |
|
|
$ |
29,513 |
|
|
$ |
46,858 |
|
|
$ |
57,046 |
|
| Corporate expenses |
|
|
(2,736 |
) |
|
|
(2,429 |
) |
|
|
(10,335 |
) |
|
|
(10,075 |
) |
| Income before interest and taxes |
|
$ |
14,777 |
|
|
$ |
27,084 |
|
|
$ |
36,523 |
|
|
$ |
46,971 |
|
| Interest and other income |
|
|
1,706 |
|
|
|
1,098 |
|
|
|
6,152 |
|
|
|
5,213 |
|
| Interest and other expense |
|
|
(681 |
) |
|
|
(1,149 |
) |
|
|
(1,869 |
) |
|
|
(315 |
) |
| Benefit/(provision) for income taxes |
|
|
2,878 |
|
|
|
2,614 |
|
|
|
15,535 |
|
|
|
(5,448 |
) |
| Net income |
|
$ |
18,680 |
|
|
$ |
29,647 |
|
|
$ |
56,341 |
|
|
$ |
46,421 |
|
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.
COMPANY CONTACT FutureFuel Corp. Tom McKinlay (314) 854-8352 www.futurefuelcorporation.com
