FutureFuel Second Quarter Net Income of $0.8 Million
Reports Net Income of $0.8 Million or $0.02 per Diluted Share, and Adjusted EBITDA of $2.1
Million
CLAYTON, Mo., Aug. 09, 2017 (GLOBE NEWSWIRE) -- FutureFuel Corp. (NYSE:FF) (“FutureFuel”),
a manufacturer of custom and performance chemicals and biofuels, today announced financial results for the second quarter and the
six months ended June 30, 2017.
Second Quarter 2017 Financial Highlights (all comparisons are with the second quarter of 2016)
- Revenues were $68.0 million, up 0.2% from $67.9 million
- Adjusted EBITDA was $2.1 million, down 84.6% from $13.6 million
- Net income decreased to $0.8 million, or $0.02 per diluted share, from $14.2 million, or $0.33 per diluted share.
Six Month 2017 Financial Highlights (all comparisons are with the first half of 2016)
- Revenues were $122.1 million, up 6.6% from $114.5 million
- EBITDA was $7.6 million, down 71.1% from $26.3 million
- Net income decreased to $4.2 million, or $0.10 per diluted share, from $24.8 million, or $0.57 per diluted share.
“A solid performance in our Chemicals segment this quarter was overshadowed by weak margins in our Biodiesel
business. This market will continue to be challenged until the future of the Blenders’ Tax Credit becomes clear and the USITC
concludes its investigation into Biodiesel from Argentina and Indonesia. FutureFuel is positioned to perform well in that market
when these issues are resolved,” said Tom McKinlay, Chief Operating Officer for FutureFuel Chemical Company.
2017 Regular Cash Dividends
FutureFuel paid a normal quarterly dividend of $0.06 per share in the second quarter of 2017. The remaining
quarterly dividends of $0.06 per share will be paid in September and 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 |
| (Unaudited) |
| |
| |
Three months ended
June 30, |
| |
|
|
|
|
Dollar |
|
% |
| |
|
2017 |
|
|
|
2016 |
|
Change |
|
Change |
| Revenues |
$ |
68,048 |
|
|
$ |
67,879 |
|
$ |
169 |
|
|
0.2 |
% |
| Income/(loss) from operations |
$ |
(626 |
) |
|
$ |
5,376 |
|
$ |
(6,002 |
) |
|
(111.6 |
%) |
| Net income |
$ |
834 |
|
|
$ |
14,224 |
|
$ |
(13,390 |
) |
|
(94.1 |
%) |
| Earnings per common share: |
|
|
|
|
|
|
|
| Basic |
$ |
0.02 |
|
|
$ |
0.33 |
|
$ |
(0.31 |
) |
|
(93.9 |
%) |
| Diluted |
$ |
0.02 |
|
|
$ |
0.33 |
|
$ |
(0.31 |
) |
|
(93.9 |
%) |
| Capital expenditures and intangibles (net of customer reimbursements and regulatory
grants) |
$ |
715 |
|
|
$ |
1,357 |
|
$ |
(642 |
) |
|
(47.3 |
%) |
| Adjusted EBITDA |
$ |
2,079 |
|
|
$ |
13,581 |
|
$ |
(11,502 |
) |
|
(84.7 |
%) |
| |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
Six months ended June
30, |
| |
|
|
|
|
Dollar |
|
% |
| |
|
2017 |
|
|
|
2016 |
|
Change |
|
Change |
| Revenues |
$ |
122,159 |
|
|
$ |
114,514 |
|
$ |
7,645 |
|
|
6.7 |
% |
| Income from operations |
$ |
2,849 |
|
|
$ |
13,905 |
|
$ |
(11,056 |
) |
|
(79.5 |
%) |
| Net income |
$ |
4,230 |
|
|
$ |
24,793 |
|
$ |
(20,563 |
) |
|
(82.9 |
%) |
| Earnings per common share: |
|
|
|
|
|
|
|
| Basic |
$ |
0.10 |
|
|
$ |
0.57 |
|
$ |
(0.47 |
) |
|
(82.5 |
%) |
| Diluted |
$ |
0.10 |
|
|
$ |
0.57 |
|
$ |
(0.47 |
) |
|
(82.5 |
%) |
| Capital expenditures and intangibles (net of customer reimbursements and regulatory
grants) |
$ |
1,557 |
|
|
$ |
2,135 |
|
$ |
(578 |
) |
|
(27.1 |
%) |
| Adjusted EBITDA |
$ |
7,648 |
|
|
$ |
26,283 |
|
$ |
(18,635 |
) |
|
(70.9 |
%) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial and Business Summary
Consolidated sales revenue in the three and six months ended June 30, 2017 increased $169 and $7,645 compared
to the three and six months ended June 30, 2016. This increase primarily resulted from higher prices in the biofuel
segment. However, for the three months ended June 30, 2017, higher prices in the biofuel segment were mostly offset by
reduced biofuel sales volumes driven in part by the expiration of the federal blenders’ tax credit (“BTC”). Also, partially
offsetting the sales revenue increase in the three months ended June 30, 2017 was a 5% decline in chemical segment
revenue.
Gross profit in the three and six months ended June 30, 2017 decreased $6,174 and $11,097, compared to
the three and six months ended June 30, 2016. In the biofuel segment, this decrease largely resulted from the absence of the
BTC which expired on December 31, 2016 and from losses incurred on common carrier pipelines. We also experienced a reduction
in chemical sales volume for the three months ended June 30, 2017 as compared to the prior year period.
Another significant impact to the reduction in gross profit in the three and six months ended June 30, 2017 as
compared to the prior year periods was the adjustment in the carrying value of our inventory as determined utilizing the LIFO
method of inventory accounting. This adjustment reduced gross profit $3,272 and $5,148 in the three and six months ended June
30, 2017 and decreased gross profit $3,319 in the three months ended June 30, 2016 and increased gross profit $2,257 in the six
months ended June 30, 2016.
Partially offsetting these declines was the change in the unrealized and realized activity in derivative
instruments. In the three and six months ended June 30, 2017, the gain was $524 and $1,803, respectively, as compared to a
loss in the three and six months ended June 30, 2016 of $5,139 and $6,178. In addition, the change in the lower of cost or
market adjustment in the three and six months ended June 30, 2017 was a benefit as compared to the prior year period. In the
three and six months ended June 30, 2017, the lower of cost or market adjustment was $957 in comparison to $1,895 in the three and
six months ended June 30, 2016.
Net income for the three and six months ended June 30, 2017 decreased $13,390 and $20,563, respectively,
as compared to the same periods in 2016. The decrease resulted from the lack of the benefit of tax credits and
incentives in effect in the three and six months ended June 30, 2016 which was not in effect in the three and six months ended
June 30, 2017. Additionally, the adjustments in the carrying value of our inventory as determined utilizing the LIFO method of
inventory accounting negatively impacted net income in the three and six months ended June 30, 2017 and in comparison, negatively
impacted net income in the three months ended June 30, 2016 and benefited net income in the six months ended June 30,
2016.
Capital Expenditures
Capital expenditures and intangibles were $1,686 in the first six months of 2017, compared with $2,254 in the same
period in 2016. FutureFuel was reimbursed for a portion of these expenditures by certain customers as summarized in the following
table.
| |
Six months ended June
30, |
| |
|
2017 |
|
|
|
2016 |
|
| Cash paid for capital expenditures and intangibles |
$ |
1,686 |
|
|
$ |
2,254 |
|
| Cash received as reimbursement of capital expenditures |
$ |
(129 |
) |
|
$ |
(119 |
) |
| Cash paid, net of reimbursement, for capital expenditures |
$ |
1,557 |
|
|
$ |
2,135 |
|
| |
Cash and Cash Equivalents and Marketable Securities
Cash and cash equivalents and marketable securities totaled $231,738 as of June 30, 2017, compared with $305,418 as
of December 31, 2016. The majority of the decrease in cash in the first six months of 2017 was attributed to a special cash
dividend of $100,188 that was paid on January 13, 2017.
About FutureFuel
FutureFuel is a leading manufacturer of diversified chemical products, specialty chemical products, and biofuel
products. In its chemicals business, FutureFuel manufactures specialty chemicals for specific customers (“custom chemicals”) as
well as multi-customer specialty chemicals (“performance chemicals”). FutureFuel’s custom chemicals product portfolio includes a
bleach activator for a major detergent manufacturer, proprietary herbicide and intermediates for major life sciences companies, and
chlorinated polyolefin adhesion promoters and antioxidant precursors for a major chemical company. FutureFuel’s performance
chemicals product portfolio includes polymer (nylon) modifiers and several small-volume specialty chemicals 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) |
| |
| |
(Unaudited) |
|
|
| |
June 30,
2017 |
|
December 31,
2016 |
| Assets |
|
|
|
| Cash and cash equivalents |
$ |
111,010 |
|
$ |
199,272 |
| Accounts receivable, inclusive of the blenders' tax credit of $0 and
$5,495 and |
|
|
|
|
|
| net of allowances for bad debt of $0 and $0, at June 30, |
|
|
|
|
|
| 2017 and December 31, 2016, respectively |
|
21,704 |
|
|
24,744 |
| Inventory |
|
36,889 |
|
|
52,093 |
| Marketable securities |
|
120,728 |
|
|
106,146 |
| Other current assets |
|
17,872 |
|
|
23,027 |
| Total current assets |
|
308,203 |
|
|
405,282 |
| Property, plant and equipment, net |
|
113,868 |
|
|
118,152 |
| Other assets |
|
5,518 |
|
|
5,609 |
| Total noncurrent assets |
|
119,386 |
|
|
123,761 |
| Total Assets |
$ |
427,589 |
|
$ |
529,043 |
| Liabilities and Stockholders’ Equity |
|
|
|
| Accounts payable |
$ |
19,428 |
|
$ |
24,053 |
| Dividends payable |
|
5,250 |
|
|
110,688 |
| Other current liabilities |
|
11,067 |
|
|
9,308 |
| Total current liabilities |
|
35,745 |
|
|
144,049 |
| Deferred revenue – long-term |
|
14,289 |
|
|
16,792 |
| Other noncurrent liabilities |
|
35,812 |
|
|
35,389 |
| Total noncurrent liabilities |
|
50,101 |
|
|
52,181 |
| Total liabilities |
|
85,846 |
|
|
196,230 |
| 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 43,749,970, issued and outstanding as of June 30,
2017 |
|
|
|
|
|
| and December 31, 2016, respectively |
|
4 |
|
|
4 |
| Accumulated other comprehensive income |
|
7,499 |
|
|
3,540 |
| Additional paid in capital |
|
281,828 |
|
|
281,087 |
| Retained earnings |
|
52,412 |
|
|
48,182 |
| Total Stockholders’ Equity |
|
341,743 |
|
|
332,813 |
| Total Liabilities and Stockholders’ Equity |
$ |
427,589 |
|
$ |
529,043 |
| FutureFuel Corp. |
| Condensed Consolidated Statements of
Operations |
| and Comprehensive Income |
| (Dollars in thousands, except per share
amounts) |
| (Unaudited) |
| |
| |
Three months ended
June 30, |
|
Six months ended June
30, |
| |
|
2017 |
|
|
|
2016 |
|
|
|
2017 |
|
|
|
2016 |
|
| Revenue |
$ |
68,048 |
|
|
$ |
67,879 |
|
|
$ |
122,159 |
|
|
$ |
114,514 |
|
| Cost of goods sold and distribution |
|
66,250 |
|
|
|
59,907 |
|
|
|
114,231 |
|
|
|
95,489 |
|
| Gross profit |
|
1,798 |
|
|
|
7,972 |
|
|
|
7,928 |
|
|
|
19,025 |
|
| Selling, general, and administrative expenses |
|
1,579 |
|
|
|
1,858 |
|
|
|
3,479 |
|
|
|
3,695 |
|
| Research and development expenses |
|
845 |
|
|
|
738 |
|
|
|
1,600 |
|
|
|
1,425 |
|
| |
|
2,424 |
|
|
|
2,596 |
|
|
|
5,079 |
|
|
|
5,120 |
|
| Income/(loss) from operations |
|
(626 |
) |
|
|
5,376 |
|
|
|
2,849 |
|
|
|
13,905 |
|
| Other income, net |
|
1,508 |
|
|
|
1,931 |
|
|
|
3,026 |
|
|
|
2,099 |
|
| Income before income taxes |
|
882 |
|
|
|
7,307 |
|
|
|
5,875 |
|
|
|
16,004 |
|
| Provision/(benefit) for income taxes |
|
48 |
|
|
|
(6,917 |
) |
|
|
1,645 |
|
|
|
(8,789 |
) |
| Net income |
$ |
834 |
|
|
$ |
14,224 |
|
|
$ |
4,230 |
|
|
$ |
24,793 |
|
| |
|
|
|
|
|
|
|
| Earnings per common share |
|
|
|
|
|
|
|
| Basic |
$ |
0.02 |
|
|
$ |
0.33 |
|
|
$ |
0.10 |
|
|
$ |
0.57 |
|
| Diluted |
$ |
0.02 |
|
|
$ |
0.33 |
|
|
$ |
0.10 |
|
|
$ |
0.57 |
|
| Weighted average shares outstanding |
|
|
|
|
|
|
|
| Basic |
|
43,665,171 |
|
|
|
43,527,857 |
|
|
|
43,641,038 |
|
|
|
43,501,599 |
|
| Diluted |
|
43,675,688 |
|
|
|
43,528,759 |
|
|
|
43,649,400 |
|
|
|
43,507,509 |
|
| |
|
|
|
|
|
|
|
| Comprehensive Income |
|
|
|
|
|
|
|
| Net income |
$ |
834 |
|
|
$ |
14,224 |
|
|
$ |
4,230 |
|
|
$ |
24,793 |
|
| Other comprehensive income from unrealized |
|
|
|
|
|
|
|
| net gain on available-for-sale securities |
|
3,210 |
|
|
|
1,349 |
|
|
|
6,096 |
|
|
|
2,027 |
|
| Income tax effect |
|
(1,126 |
) |
|
|
(472 |
) |
|
|
(2,137 |
) |
|
|
(710 |
) |
| Total unrealized gain, net of tax |
|
2,084 |
|
|
|
877 |
|
|
|
3,959 |
|
|
|
1,317 |
|
| Comprehensive income |
$ |
2,918 |
|
|
$ |
15,101 |
|
|
$ |
8,189 |
|
|
$ |
26,110 |
|
| FutureFuel Corp. |
| Consolidated Statements of Cash
Flows |
| For the Six Months Ended June 30, 2017 and
2016 |
| (Dollars in thousands) |
| (Unaudited) |
| |
| |
Six months ended June
30, |
| |
|
2017 |
|
|
|
2016 |
|
| Cash flows provided by operating activities |
|
|
|
| Net income |
$ |
4,230 |
|
|
$ |
24,793 |
|
| Adjustments to reconcile net income to net cash provided by operating
activities: |
|
|
|
| Depreciation |
|
5,808 |
|
|
|
5,257 |
|
| Amortization of deferred financing costs |
|
72 |
|
|
|
72 |
|
| Benefit for deferred income taxes |
|
(1,763 |
) |
|
|
(4,969 |
) |
| Change in fair value of derivative instruments |
|
318 |
|
|
|
4,869 |
|
| Other than temporary impairment of marketable securities |
|
177 |
|
|
|
1,879 |
|
| Impairment of fixed assets |
|
9 |
|
|
|
178 |
|
| Gain/(loss) on the sale of investments |
|
392 |
|
|
|
(1,474 |
) |
| Stock based compensation |
|
750 |
|
|
|
954 |
|
| Losses on disposals of fixed assets |
|
77 |
|
|
|
137 |
|
| Noncash interest expense |
|
13 |
|
|
|
22 |
|
| Changes in operating assets and liabilities: |
|
|
|
| Accounts receivable |
|
5,613 |
|
|
|
21,708 |
|
| Accounts receivable – related parties |
|
(2,573 |
) |
|
|
(23 |
) |
| Inventory |
|
15,204 |
|
|
|
6,240 |
|
| Income tax receivable |
|
4,262 |
|
|
|
(2,818 |
) |
| Prepaid expenses |
|
626 |
|
|
|
589 |
|
| Prepaid expenses – related party |
|
(7 |
) |
|
|
- |
|
| Accrued interest on marketable securities |
|
(11 |
) |
|
|
(104 |
) |
| Other assets |
|
19 |
|
|
|
(321 |
) |
| Accounts payable |
|
(5,150 |
) |
|
|
(17,948 |
) |
| Accounts payable – related parties |
|
525 |
|
|
|
1,584 |
|
| Accrued expenses and other current liabilities |
|
1,370 |
|
|
|
2,470 |
|
| Accrued expenses and other current liabilities – related parties |
|
(142 |
) |
|
|
- |
|
| Deferred revenue |
|
(1,972 |
) |
|
|
2,933 |
|
| Other noncurrent liabilities |
|
112 |
|
|
|
- |
|
| Net cash provided by operating activities |
|
27,959 |
|
|
|
46,028 |
|
| Cash flows from investing activities |
|
|
|
| Collateralization of derivative instruments |
|
(34 |
) |
|
|
(3,011 |
) |
| Purchase of marketable securities |
|
(19,322 |
) |
|
|
(32,299 |
) |
| Proceeds from the sale of marketable securities |
|
10,268 |
|
|
|
16,524 |
|
| Capital expenditures |
|
(1,686 |
) |
|
|
(2,254 |
) |
| Net cash used in investing activities |
|
(10,774 |
) |
|
|
(21,040 |
) |
| Cash flows from financing activities |
|
|
|
| Minimum tax withholding on stock options exercised and awards
vested |
|
(8 |
) |
|
|
(55 |
) |
| Excess tax benefits associated with stock options and awards |
|
(1 |
) |
|
|
(136 |
) |
| Payment of dividends |
|
(105,438 |
) |
|
|
(5,246 |
) |
| Net cash used in financing activities |
|
(105,447 |
) |
|
|
(5,437 |
) |
| Net change in cash and cash equivalents |
|
(88,262 |
) |
|
|
19,551 |
|
| Cash and cash equivalents at beginning of period |
|
199,272 |
|
|
|
154,049 |
|
| Cash and cash equivalents at end of period |
$ |
111,010 |
|
|
$ |
173,600 |
|
| |
|
|
|
| Cash paid for interest |
$ |
- |
|
|
$ |
- |
|
| Cash paid for income taxes |
$ |
55 |
|
|
$ |
985 |
|
| 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, |
|
Six months ended June
30, |
| |
|
2017 |
|
|
2016(1) |
|
|
2017 |
|
|
2016(1) |
| Adjusted EBITDA |
$ |
2,079 |
|
|
$ |
13,581 |
|
|
$ |
7,648 |
|
|
$ |
26,283 |
|
| Depreciation |
|
(2,912 |
) |
|
|
(2,671 |
) |
|
|
(5,808 |
) |
|
|
(5,329 |
) |
| Non-cash stock-based compensation |
|
(273 |
) |
|
|
(477 |
) |
|
|
(750 |
) |
|
|
(954 |
) |
| Interest and dividend income |
|
1,991 |
|
|
|
1,464 |
|
|
|
3,714 |
|
|
|
2,809 |
|
| Interest expense |
|
(43 |
) |
|
|
(42 |
) |
|
|
(86 |
) |
|
|
(85 |
) |
| Losses on disposal of property and equipment
|
|
(46 |
) |
|
|
(22 |
) |
|
|
(77 |
) |
|
|
(137 |
) |
| Gains/(losses) on derivative instruments |
|
524 |
|
|
|
(5,139 |
) |
|
|
1,803 |
|
|
|
(6,178 |
) |
| Gains/(losses) on marketable securities |
|
(438 |
) |
|
|
613 |
|
|
|
(569 |
) |
|
|
(405 |
) |
| Income tax (expense)/benefit |
|
(48 |
) |
|
|
6,917 |
|
|
|
(1,645 |
) |
|
|
8,789 |
|
| Net income |
$ |
834 |
|
|
$ |
14,224 |
|
|
$ |
4,230 |
|
|
$ |
24,793 |
|
| Reconciliation of Adjusted EBITDA to Net Cash Provided by
Operating Activities |
| |
| |
Six months ended June
30, |
| |
|
2017 |
|
|
2016(1) |
| Adjusted EBITDA |
$ |
7,648 |
|
|
$ |
26,283 |
|
| Provision for deferred income taxes |
|
(1,763 |
) |
|
|
(4,969 |
) |
| Impairment of fixed assets |
|
9 |
|
|
|
178 |
|
| Interest and dividend income |
|
3,714 |
|
|
|
2,809 |
|
| Income tax (expense)/benefit |
|
(1,645 |
) |
|
|
8,789 |
|
| Gains/(losses) on derivative instruments |
|
1,803 |
|
|
|
(6,178 |
) |
| Change in fair value of derivative instruments |
|
318 |
|
|
|
4,869 |
|
| Changes in operating assets and liabilities, net |
|
17,876 |
|
|
|
14,310 |
|
| Other |
|
(1 |
) |
|
|
(63 |
) |
| Net cash provided by operating activities |
$ |
27,959 |
|
|
$ |
46,028 |
|
| |
| (1) Prior year adjusted EBITDA reconciliations have been modified
to be consistent with current year presentations. |
| |
| FutureFuel Corp. |
| Condensed Consolidated Segment
Income |
| (Dollars in thousands) |
| (Unaudited) |
| |
| |
Three months ended
June 30, |
|
Six months ended June
30, |
| |
|
2017 |
|
|
|
2016 |
|
|
|
2017 |
|
|
|
2016 |
|
| Revenue |
|
|
|
|
|
|
|
| Custom chemicals |
$ |
19,644 |
|
|
$ |
19,401 |
|
|
$ |
41,596 |
|
|
$ |
39,693 |
|
| Performance chemicals |
|
3,707 |
|
|
|
5,162 |
|
|
|
8,112 |
|
|
|
9,938 |
|
| Chemicals revenue |
$ |
23,351 |
|
|
$ |
24,563 |
|
|
$ |
49,708 |
|
|
$ |
49,631 |
|
| Biofuels revenue |
|
44,697 |
|
|
|
43,316 |
|
|
|
72,451 |
|
|
|
64,883 |
|
| Total Revenue |
$ |
68,048 |
|
|
$ |
67,879 |
|
|
$ |
122,159 |
|
|
$ |
114,514 |
|
| |
|
|
|
|
|
|
|
| Segment gross profit |
|
|
|
|
|
|
|
| Chemicals |
$ |
5,332 |
|
|
$ |
6,297 |
|
|
$ |
12,341 |
|
|
$ |
14,869 |
|
| Biofuels |
|
(3,534 |
) |
|
|
1,675 |
|
|
|
(4,413 |
) |
|
|
4,156 |
|
| Total gross profit |
|
1,798 |
|
|
|
7,972 |
|
|
|
7,928 |
|
|
|
19,025 |
|
| Corporate expenses |
|
(2,424 |
) |
|
|
(2,596 |
) |
|
|
(5,079 |
) |
|
|
(5,120 |
) |
| Income/(loss) before interest and taxes |
|
(626 |
) |
|
|
5,376 |
|
|
|
2,849 |
|
|
|
13,905 |
|
| Interest and other income |
|
1,991 |
|
|
|
1,464 |
|
|
|
3,714 |
|
|
|
2,809 |
|
| Interest and other expense |
|
(483 |
) |
|
|
467 |
|
|
|
(688 |
) |
|
|
(710 |
) |
| (Provision)/benefit for income taxes |
|
(48 |
) |
|
|
6,917 |
|
|
|
(1,645 |
) |
|
|
8,789 |
|
| Net income |
$ |
834 |
|
|
$ |
14,224 |
|
|
$ |
4,230 |
|
|
$ |
24,793 |
|
| |
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
