FutureFuel Third Quarter Net Income of $3.3 Million
Reports Net Income of $3.3 Million or $0.08 per Diluted Share, and Adjusted EBITDA of $9.6
Million
CLAYTON, Mo., Nov. 09, 2017 (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, 2017.
Third Quarter 2017 Financial Highlights (all comparisons are with the third quarter of 2016)
- Revenues were $77.6 million, up 12.0% from $69.3 million
- Adjusted EBITDA was $9.6 million, down 5.6% from $10.1 million
- Net income decreased to $3.3 million, or $0.08 per diluted share, from $12.9 million, or $0.29 per diluted share.
Nine Month 2017 Financial Highlights (all comparisons are with the first nine months of 2016)
- Revenues were $199.8 million, up 8.7% from $183.8 million
- Adjusted EBITDA was $17.2 million, down 52.7% from $36.3 million
- Net income decreased to $7.6 million, or $0.17 per diluted share, from $37.7 million, or $0.86 per diluted share.
“Our chemicals segment benefited this quarter from robust demand, particularly in the energy and agricultural sectors. We
also saw an improvement in our Biodiesel segment, where we were encouraged by the US Commerce Dept’s preliminary antidumping
duties levied on biodiesel from Argentina and Indonesia as well as the EPA signaling its commitment to the Renewable Volume
Obligations of the Renewable Fuel Standard. Each of these measures helps US domestic biodiesel producers compete on a more level
playing field,” 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 third quarter of 2017. The remaining quarterly
dividend of $0.06 per share 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
|
(Unaudited)
|
| |
| |
Three months ended
September 30, |
| |
|
|
|
|
Dollar |
|
% |
| |
|
2017 |
|
|
2016 |
|
Change |
|
Change |
| Revenues |
$ |
77,606 |
|
$ |
69,306 |
|
$ |
8,300 |
|
|
12.0 |
% |
| Income from operations |
$ |
3,200 |
|
$ |
7,841 |
|
$ |
(4,641 |
) |
|
(59.2 |
%) |
| Net income |
$ |
3,334 |
|
$ |
12,868 |
|
$ |
(9,534 |
) |
|
(74.1 |
%) |
| Earnings per common share: |
|
|
|
|
|
|
|
| Basic |
$ |
0.08 |
|
$ |
0.29 |
|
$ |
(0.21 |
) |
|
(72.4 |
%) |
| Diluted |
$ |
0.08 |
|
$ |
0.29 |
|
$ |
(0.21 |
) |
|
(72.4 |
%) |
| Capital expenditures and intangibles (net of customer reimbursements and regulatory
grants) |
$ |
856 |
|
$ |
853 |
|
$ |
3 |
|
|
0.4 |
% |
| Adjusted EBITDA |
$ |
9,553 |
|
$ |
10,117 |
|
$ |
(564 |
) |
|
(5.6 |
%) |
| |
|
|
|
|
|
|
|
| |
Nine months ended
September 30, |
| |
|
|
|
|
Dollar |
|
% |
| |
|
2017 |
|
|
2016 |
|
Change |
|
Change |
| Revenues |
$ |
199,765 |
|
$ |
183,820 |
|
$ |
15,945 |
|
|
8.7 |
% |
| Income from operations |
$ |
6,049 |
|
$ |
21,746 |
|
$ |
(15,697 |
) |
|
(72.2 |
%) |
| Net income |
$ |
7,564 |
|
$ |
37,661 |
|
$ |
(30,097 |
) |
|
(79.9 |
%) |
| Earnings per common share: |
|
|
|
|
|
|
|
| Basic |
$ |
0.17 |
|
$ |
0.86 |
|
$ |
(0.69 |
) |
|
(80.2 |
%) |
| Diluted |
$ |
0.17 |
|
$ |
0.86 |
|
$ |
(0.69 |
) |
|
(80.2 |
%) |
| Capital expenditures and intangibles (net of customer reimbursements and regulatory
grants) |
$ |
2,413 |
|
$ |
2,988 |
|
$ |
(575 |
) |
|
(19.2 |
%) |
| Adjusted EBITDA |
$ |
17,201 |
|
$ |
36,328 |
|
$ |
(19,127 |
) |
|
(52.7 |
%) |
Financial and Business Summary
Consolidated sales revenue in the three and nine months ended September 30, 2017 increased $8,300 and $15,945,
respectively, compared to the three and nine months ended September 30, 2016. This increase primarily resulted from higher
prices in the biofuel segment and increased sales volumes in the chemical segment. In the nine-month comparison period, the
increase from higher prices in the biofuel segment was partially offset by lower sales volumes largely from the expiration of the
federal blenders’ tax credit (“BTC”).
Gross profit in the three and nine months ended September 30, 2017 decreased $4,793 and $15,890, respectively,
compared to the three and nine months ended September 30, 2016. In the biofuel segment, this decrease largely resulted from
the absence of the BTC which expired on December 31, 2016. We also experienced a reduction in pipeline profits for the nine
months ended September 30, 2017 as compared to the prior year period.
Another significant impact to the reduction in gross profit in the nine months ended September 30, 2017,
as compared to the prior year period, was the adjustment in the carrying value of our inventory as determined utilizing the LIFO
method of inventory accounting. This adjustment reduced gross profit $5,329 in the nine months ended September 30, 2017
and increased gross profit $1,845 in the nine months ended September 30, 2016. This change in LIFO resulted in a lower of
cost or market adjustment of $1,877 in the three and nine months ended September 30, 2016 and no such adjustment was necessary in
the three and nine months ended September 30, 2017.
Also contributing to the reduction in gross profit in the three months ended September 30, 2017, was the loss in
the unrealized and realized activity in derivative instruments of $3,314, as compared to a gain of $803, in the prior year
period. The change in the derivative activity in the nine months ending September 30, 2017 favorably impacted gross profit
with a loss of $1,511, as compared to a loss of $5,375 in the prior year period.
Capital Expenditures
Capital expenditures and intangibles were $2,614 in the first nine months of 2017, compared with $3,107 in the same period in
2016. FutureFuel was reimbursed for a portion of these expenditures by certain customers as summarized in the following
table.
| |
Nine months ended
September 30, |
| |
|
2017 |
|
|
|
2016 |
|
| Cash paid for capital expenditures and intangibles |
$ |
2,614 |
|
|
$ |
3,107 |
|
| Cash received as reimbursement of capital expenditures |
$ |
(201 |
) |
|
$ |
(119 |
) |
| Cash paid, net of reimbursement, for capital expenditures |
$ |
2,413 |
|
|
$ |
2,988 |
|
Cash and Cash Equivalents and Marketable Securities
Cash and cash equivalents and marketable securities totaled $236,833 as of September 30, 2017, compared with $305,418 as of
December 31, 2016. The majority of the decrease in cash in the first nine 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) |
|
|
| |
September 30,
2017 |
|
December 31,
2016 |
| Assets |
|
|
|
| Cash and cash equivalents |
$ |
113,245 |
|
$ |
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 September 30, 2017 and December 31, 2016, respectively |
|
22,844 |
|
|
24,744 |
| Inventory |
|
43,523 |
|
|
52,093 |
| Marketable securities |
|
123,588 |
|
|
106,146 |
| Other current assets |
|
17,131 |
|
|
23,027 |
| Total current assets |
|
320,331 |
|
|
405,282 |
| Property, plant and equipment, net |
|
111,777 |
|
|
118,152 |
| Other assets |
|
5,463 |
|
|
5,609 |
| Total noncurrent assets |
|
117,240 |
|
|
123,761 |
| Total Assets |
$ |
437,571 |
|
$ |
529,043 |
| Liabilities and Stockholders’ Equity |
|
|
|
| Accounts payable |
$ |
28,258 |
|
$ |
24,053 |
| Dividends payable |
|
2,625 |
|
|
110,688 |
| Other current liabilities |
|
11,323 |
|
|
9,308 |
| Total current liabilities |
|
42,206 |
|
|
144,049 |
| Deferred revenue – long-term |
|
13,002 |
|
|
16,792 |
| Other noncurrent liabilities |
|
36,648 |
|
|
35,389 |
| Total noncurrent liabilities |
|
49,650 |
|
|
52,181 |
| Total liabilities |
|
91,856 |
|
|
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,
43,741,670 and 43,749,970, issued and outstanding as of September 30, 2017 and December 31, 2016, respectively |
|
4 |
|
|
4 |
| Accumulated other comprehensive income |
|
8,152 |
|
|
3,540 |
| Additional paid in capital |
|
281,813 |
|
|
281,087 |
| Retained earnings |
|
55,746 |
|
|
48,182 |
| Total Stockholders’ Equity |
|
345,715 |
|
|
332,813 |
| Total Liabilities and Stockholders’ Equity |
$ |
437,571 |
|
$ |
529,043 |
| FutureFuel Corp. |
| Condensed Consolidated Statements of
Operations |
| and Comprehensive Income |
| (Dollars in thousands, except per share
amounts) |
(Unaudited)
|
| |
| |
Three months ended
September 30, |
|
Nine months ended
September 30, |
| |
|
2017 |
|
|
|
2016 |
|
|
|
2017 |
|
|
|
2016 |
|
| Revenue |
$ |
77,606 |
|
|
$ |
69,306 |
|
|
$ |
199,765 |
|
|
$ |
183,820 |
|
| Cost of goods sold and distribution |
|
72,080 |
|
|
|
58,987 |
|
|
|
186,311 |
|
|
|
154,476 |
|
| Gross profit |
|
5,526 |
|
|
|
10,319 |
|
|
|
13,454 |
|
|
|
29,344 |
|
| Selling, general, and administrative expenses |
|
1,391 |
|
|
|
1,790 |
|
|
|
4,870 |
|
|
|
5,485 |
|
| Research and development expenses |
|
935 |
|
|
|
688 |
|
|
|
2,535 |
|
|
|
2,113 |
|
| |
|
2,326 |
|
|
|
2,478 |
|
|
|
7,405 |
|
|
|
7,598 |
|
| Income from operations |
|
3,200 |
|
|
|
7,841 |
|
|
|
6,049 |
|
|
|
21,746 |
|
| Other income, net |
|
1,864 |
|
|
|
1,159 |
|
|
|
4,890 |
|
|
|
3,258 |
|
| Income before income taxes |
|
5,064 |
|
|
|
9,000 |
|
|
|
10,939 |
|
|
|
25,004 |
|
| Provision/(benefit) for income taxes |
|
1,730 |
|
|
|
(3,868 |
) |
|
|
3,375 |
|
|
|
(12,657 |
) |
| Net income |
$ |
3,334 |
|
|
$ |
12,868 |
|
|
$ |
7,564 |
|
|
$ |
37,661 |
|
| |
|
|
|
|
|
|
|
| Earnings per common share |
|
|
|
|
|
|
|
| Basic |
$ |
0.08 |
|
|
$ |
0.29 |
|
|
$ |
0.17 |
|
|
$ |
0.86 |
|
| Diluted |
$ |
0.08 |
|
|
$ |
0.29 |
|
|
$ |
0.17 |
|
|
$ |
0.86 |
|
| Weighted average shares outstanding |
|
|
|
|
|
|
|
| Basic |
|
43,705,234 |
|
|
|
43,570,734 |
|
|
|
43,662,672 |
|
|
|
43,524,729 |
|
| Diluted |
|
43,714,753 |
|
|
|
43,572,997 |
|
|
|
43,671,420 |
|
|
|
43,529,423 |
|
| |
|
|
|
|
|
|
|
| Comprehensive Income |
|
|
|
|
|
|
|
| Net income |
$ |
3,334 |
|
|
$ |
12,868 |
|
|
$ |
7,564 |
|
|
$ |
37,661 |
|
Other comprehensive income from unrealized net gain
on available-for-sale securities |
|
1,005 |
|
|
|
1,714 |
|
|
|
7,101 |
|
|
|
3,741 |
|
| Income tax effect |
|
(352 |
) |
|
|
(832 |
) |
|
|
(2,489 |
) |
|
|
(1,542 |
) |
| Total unrealized gain, net of tax |
|
653 |
|
|
|
882 |
|
|
|
4,612 |
|
|
|
2,199 |
|
| Comprehensive income |
$ |
3,987 |
|
|
$ |
13,750 |
|
|
$ |
12,176 |
|
|
$ |
39,860 |
|
| FutureFuel Corp. |
| Consolidated Statements of Cash
Flows |
| For the Nine Months Ended September 30, 2017
and 2016 |
| (Dollars in thousands) |
(Unaudited)
|
| |
| |
Nine months ended
September 30, |
| |
|
2017 |
|
|
|
2016 |
|
| Cash flows provided by operating activities |
|
|
|
| Net income |
$ |
7,564 |
|
|
$ |
37,661 |
|
| Adjustments to reconcile net income to net cash provided by operating
activities: |
|
|
|
| Depreciation |
|
8,735 |
|
|
|
7,960 |
|
| Amortization of deferred financing costs |
|
109 |
|
|
|
108 |
|
| Benefit for deferred income taxes |
|
(1,303 |
) |
|
|
(9,243 |
) |
| Change in fair value of derivative instruments |
|
(60 |
) |
|
|
6,686 |
|
| Other than temporary impairment of marketable securities |
|
177 |
|
|
|
2,184 |
|
| Impairment of fixed assets |
|
28 |
|
|
|
178 |
|
| Gain/(loss) on the sale of investments |
|
366 |
|
|
|
(1,457 |
) |
| Stock based compensation |
|
878 |
|
|
|
1,431 |
|
| Losses on disposals of fixed assets |
|
145 |
|
|
|
147 |
|
| Noncash interest expense |
|
20 |
|
|
|
20 |
|
| Changes in operating assets and liabilities: |
|
|
|
| Accounts receivable |
|
3,081 |
|
|
|
16,333 |
|
| Accounts receivable – related parties |
|
(1,181 |
) |
|
|
(21 |
) |
| Inventory |
|
8,570 |
|
|
|
17,009 |
|
| Income tax receivable |
|
5,546 |
|
|
|
(1,185 |
) |
| Prepaid expenses |
|
1,152 |
|
|
|
1,104 |
|
| Prepaid expenses – related parties |
|
(4 |
) |
|
|
35 |
|
| Accrued interest on marketable securities |
|
22 |
|
|
|
(84 |
) |
| Other assets |
|
37 |
|
|
|
(413 |
) |
| Accounts payable |
|
1,425 |
|
|
|
(9,853 |
) |
| Accounts payable – related parties |
|
2,780 |
|
|
|
219 |
|
| Accrued expenses and other current liabilities |
|
1,587 |
|
|
|
3,565 |
|
| Accrued expenses and other current liabilities – related parties |
|
(142 |
) |
|
|
- |
|
| Deferred revenue |
|
(3,220 |
) |
|
|
2,735 |
|
| Other noncurrent liabilities |
|
128 |
|
|
|
1,760 |
|
| Net cash provided by operating activities |
|
36,440 |
|
|
|
76,879 |
|
| Cash flows from investing activities |
|
|
|
| Collateralization of derivative instruments |
|
(760 |
) |
|
|
(4,009 |
) |
| Purchase of marketable securities |
|
(25,795 |
) |
|
|
(54,096 |
) |
| Proceeds from the sale of marketable securities |
|
14,913 |
|
|
|
20,768 |
|
| Proceeds from the sale of fixed assets |
|
4 |
|
|
|
- |
|
| Capital expenditures |
|
(2,614 |
) |
|
|
(3,107 |
) |
| Net cash used in investing activities |
|
(14,252 |
) |
|
|
(40,444 |
) |
| Cash flows from financing activities |
|
|
|
| Minimum tax withholding on stock options exercised and awards
vested |
|
(121 |
) |
|
|
(59 |
) |
| Excess tax benefits associated with stock options and awards |
|
(31 |
) |
|
|
(183 |
) |
| Payment of dividends |
|
(108,063 |
) |
|
|
(7,869 |
) |
| Net cash used in financing activities |
|
(108,215 |
) |
|
|
(8,111 |
) |
| Net change in cash and cash equivalents |
|
(86,027 |
) |
|
|
28,324 |
|
| Cash and cash equivalents at beginning of period |
|
199,272 |
|
|
|
154,049 |
|
| Cash and cash equivalents at end of period |
$ |
113,245 |
|
|
$ |
182,373 |
|
| |
|
|
|
| Cash paid for interest |
$ |
- |
|
|
$ |
2 |
|
| Cash paid for income taxes |
$ |
55 |
|
|
$ |
986 |
|
| 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
September 30, |
|
Nine months
ended
September 30, |
| |
|
2017 |
|
|
|
2016 |
|
|
|
2017 |
|
|
|
2016 |
|
| Adjusted EBITDA |
$ |
9,553 |
|
|
$ |
10,117 |
|
|
$ |
17,201 |
|
|
$ |
36,328 |
|
| Depreciation |
|
(2,927 |
) |
|
|
(2,739 |
) |
|
|
(8,735 |
) |
|
|
(8,068 |
) |
| Non-cash stock-based compensation |
|
(128 |
) |
|
|
(477 |
) |
|
|
(878 |
) |
|
|
(1,431 |
) |
| Interest and dividend income |
|
1,965 |
|
|
|
1,637 |
|
|
|
5,679 |
|
|
|
4,446 |
|
| Interest expense |
|
(43 |
) |
|
|
(9 |
) |
|
|
(129 |
) |
|
|
(22 |
) |
| Losses on disposal of property and equipment |
|
(68 |
) |
|
|
(10 |
) |
|
|
(145 |
) |
|
|
(147 |
) |
| Gains/(losses) on derivative instruments |
|
(3,314 |
) |
|
|
803 |
|
|
|
(1,511 |
) |
|
|
(5,375 |
) |
| Gains/(losses) on marketable securities |
|
26 |
|
|
|
(322 |
) |
|
|
(543 |
) |
|
|
(727 |
) |
| Income tax (expense)/benefit |
|
(1,730 |
) |
|
|
3,868 |
|
|
|
(3,375 |
) |
|
|
12,657 |
|
| Net income |
$ |
3,334 |
|
|
$ |
12,868 |
|
|
$ |
7,564 |
|
|
$ |
37,661 |
|
Reconciliation of Adjusted EBITDA to Net Cash Provided by
Operating Activities
|
| |
| |
Nine months ended
September 30, |
| |
|
2017 |
|
|
|
2016 |
|
| Adjusted EBITDA |
$ |
17,201 |
|
|
$ |
36,328 |
|
| Benefit for deferred income taxes |
|
(1,303 |
) |
|
|
(9,243 |
) |
| Impairment of fixed assets |
|
28 |
|
|
|
178 |
|
| Interest and dividend income |
|
5,679 |
|
|
|
4,446 |
|
| Income tax (expense)/benefit |
|
(3,375 |
) |
|
|
12,657 |
|
| Losses on derivative instruments |
|
(1,511 |
) |
|
|
(5,375 |
) |
| Change in fair value of derivative instruments |
|
(60 |
) |
|
|
6,686 |
|
| Changes in operating assets and liabilities, net |
|
19,781 |
|
|
|
31,204 |
|
| Other |
|
- |
|
|
|
(2 |
) |
| Net cash provided by operating activities |
$ |
36,440 |
|
|
$ |
76,879 |
|
| FutureFuel Corp. |
| Condensed Consolidated Segment
Income |
| (Dollars in thousands) |
(Unaudited)
|
| |
| |
Three months ended
September 30, |
|
Nine months ended
September 30, |
| |
|
2017 |
|
|
|
2016 |
|
|
|
2017 |
|
|
|
2016 |
|
| Revenue |
|
|
|
|
|
|
|
| Custom chemicals |
$ |
23,593 |
|
|
$ |
20,455 |
|
|
$ |
65,189 |
|
|
$ |
60,148 |
|
| Performance chemicals |
|
4,574 |
|
|
|
3,844 |
|
|
|
12,686 |
|
|
|
13,782 |
|
| Chemicals revenue |
$ |
28,167 |
|
|
$ |
24,299 |
|
|
$ |
77,875 |
|
|
$ |
73,930 |
|
| Biofuels revenue |
|
49,439 |
|
|
|
45,007 |
|
|
|
121,890 |
|
|
|
109,890 |
|
| Total Revenue |
$ |
77,606 |
|
|
$ |
69,306 |
|
|
$ |
199,765 |
|
|
$ |
183,820 |
|
| |
|
|
|
|
|
|
|
| Segment gross profit |
|
|
|
|
|
|
|
| Chemicals |
$ |
8,060 |
|
|
$ |
7,853 |
|
|
$ |
20,401 |
|
|
$ |
22,722 |
|
| Biofuels |
|
(2,534 |
) |
|
|
2,466 |
|
|
|
(6,947 |
) |
|
|
6,622 |
|
| Total gross profit |
|
5,526 |
|
|
|
10,319 |
|
|
|
13,454 |
|
|
|
29,344 |
|
| Corporate expenses |
|
(2,326 |
) |
|
|
(2,478 |
) |
|
|
(7,405 |
) |
|
|
(7,598 |
) |
| Income before interest and taxes |
|
3,200 |
|
|
|
7,841 |
|
|
|
6,049 |
|
|
|
21,746 |
|
| Interest and other income |
|
1,965 |
|
|
|
1,637 |
|
|
|
5,679 |
|
|
|
4,446 |
|
| Interest and other expense |
|
(101 |
) |
|
|
(478 |
) |
|
|
(789 |
) |
|
|
(1,188 |
) |
| (Provision)/benefit for income taxes |
|
(1,730 |
) |
|
|
3,868 |
|
|
|
(3,375 |
) |
|
|
12,657 |
|
| Net income |
$ |
3,334 |
|
|
$ |
12,868 |
|
|
$ |
7,564 |
|
|
$ |
37,661 |
|
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
