FutureFuel Second Quarter Net Income of $6.1 Million
Reports Net Income of $6.1 Million or $0.14 per Diluted Share, and Adjusted EBITDA of $11.7
Million
CLAYTON, Mo., Aug. 09, 2018 (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, 2018.
Second Quarter 2018 Financial Highlights (all comparisons are with the second quarter of 2017)
- Revenues were $88.3 million, up 29.8% from $68.0 million
- Adjusted EBITDA was $11.7 million, up 461.2% from $2.1 million
- Net income increased to $6.1 million, or $0.14 per diluted share, from $.8 million, or $0.02 per diluted share.
Six Month 2018 Financial Highlights (all comparisons are with the first half of 2017)
- Revenues were $144.1 million, up 17.9% from $122.2 million
- EBITDA was $49.3 million, up 544.1% from $7.6 million
- Net income increased to $41.9 million, or $0.96 per diluted share, from $4.2 million, or $0.10 per diluted share.
“Our second quarter performance showed continued growth in both the Energy and Agrochemical sectors. Our investment and focus on
reliability improvements paid dividends, as we were able to step up and meet our customers’ strong demand. We also enjoyed
excellent operational performance in our Biodiesel segment. However, this market continues to be unsettled by regulatory issues
with the absence of the Blenders’ Tax Credit and uncertainty over the Small Refinery Exemption eligibility weighing heavily on
margins,” said Tom McKinlay, Chief Operating Officer for FutureFuel Corp.
2018 Regular Cash Dividends
FutureFuel paid a normal quarterly dividend of $0.06 per share in the second quarter of 2018. 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 |
|
% |
| |
2018 |
|
2017 |
|
Change |
|
Change |
| Revenues |
$ |
88,336 |
|
$ |
68,048 |
|
|
$ |
20,288 |
|
|
29.8 |
% |
| Income from operations |
$ |
5,840 |
|
$ |
(626 |
) |
|
$ |
6,466 |
|
|
1,032.9 |
% |
| Net income |
$ |
6,051 |
|
$ |
834 |
|
|
$ |
5,217 |
|
|
625.5 |
% |
| Earnings per common share: |
|
|
|
|
|
|
|
| Basic |
$ |
0.14 |
|
$ |
0.02 |
|
|
$ |
0.12 |
|
|
600.0 |
% |
| Diluted |
$ |
0.14 |
|
$ |
0.02 |
|
|
$ |
0.12 |
|
|
600.0 |
% |
| Capital expenditures and intangibles (net of customer reimbursements and regulatory
grants) |
$ |
536 |
|
$ |
715 |
|
|
$ |
(179 |
) |
|
(25.0 |
%) |
| Adjusted EBITDA |
$ |
11,667 |
|
$ |
2,079 |
|
|
$ |
9,588 |
|
|
461.3 |
% |
| |
|
|
|
|
|
|
|
| |
Six months ended June 30, |
| |
|
|
|
|
Dollar |
|
% |
| |
2018 |
|
2017 |
|
Change |
|
Change |
| Revenues |
$ |
144,083 |
|
$ |
122,159 |
|
|
$ |
21,924 |
|
|
17.9 |
% |
| Income from operations |
$ |
40,407 |
|
$ |
2,849 |
|
|
$ |
37,558 |
|
|
1,318.3 |
% |
| Net income |
$ |
41,877 |
|
$ |
4,230 |
|
|
$ |
37,647 |
|
|
890.0 |
% |
| Earnings per common share: |
|
|
|
|
|
|
|
| Basic |
$ |
0.96 |
|
$ |
0.10 |
|
|
$ |
0.86 |
|
|
860.0 |
% |
| Diluted |
$ |
0.96 |
|
$ |
0.10 |
|
|
$ |
0.86 |
|
|
860.0 |
% |
| Capital expenditures and intangibles (net of customer reimbursements and regulatory
grants) |
$ |
897 |
|
$ |
1,557 |
|
|
$ |
(660 |
) |
|
(42.4 |
%) |
| Adjusted EBITDA |
$ |
49,264 |
|
$ |
7,648 |
|
|
$ |
41,616 |
|
|
544.1 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial and Business Summary
Consolidated sales revenue in the three and six months ended June 30, 2018 increased $20,288 and $21,924,
compared to the three and six months ended June 30, 2017. The three-month period increased $8,111 from higher chemical sales
volumes from strong demand in the agrochemical and energy markets; $6,628 from stronger biodiesel sales volumes, and $5,484 from
higher biofuel sales prices. The six-month period increased $9,472 from higher chemical sales volumes, $1,428 from higher
chemical sales prices primarily from the adoption of ASC 606, and in part from higher prices indexed to raw materials. Also
benefiting sales revenue for the six-month period was stronger biodiesel sales volumes of $11,870 which was net of the retroactive
reinstatement of the 2017 Blenders’ Tax Credit (BTC) passed into law on February 9, 2018, presented as a price effect.
Gross profit in the three and six months ended June 30, 2018 increased $6,473 and $37,850 compared to the three months and six
months ended June 30, 2017. The three-month increase was driven by higher volumes in the agrochemical and energy markets and
stronger margins on higher volumes in the biofuel segment. The six-month increase was primarily from the biofuel segment as
the result of the BTC which expired on December 31, 2016 and was retroactively reinstated for 2017 (but, not beyond 2017) on
February 9, 2018 resulting in the benefit being recognized in 2018. Also benefiting gross profit was increased sales volumes in
both the chemicals and biofuels segments.
Gross profit was favorably impacted in the three and six months ended June 30, 2018, as compared to the prior
year period, by the adjustment in the carrying value of our inventory as determined utilizing the LIFO method of inventory
accounting. The change in this adjustment increased gross profit $943 and $3,150 in the three and six months ended June 30,
2018 as compared to the three and six months ended June 30, 2017. This change in LIFO resulted in a lower of cost or market
adjustment of $957 in the three and six months ended June 30, 2017 and no such adjustment was necessary in the three months ended
June 30, 2018. Please see Note 3 for additional discussion.
Gross profit was negatively impacted by the change in the unrealized and realized activity in derivative
instruments with a loss of $3,109 and $3,271 in the three and six months ended June 30, 2018, as compared to a gain of $524 and
$1,803, in the prior year period.
Capital Expenditures
Capital expenditures and intangibles were $1,103 in the first six months of 2018, compared with $1,686 in the same period in
2017. FutureFuel was reimbursed for a portion of these expenditures by certain customers as summarized in the following table.
| |
|
| |
Six months ended June 30, |
| |
2018 |
|
2017 |
| Cash paid for capital expenditures and intangibles |
$ |
1,103 |
|
|
$ |
1,686 |
|
| Cash received as reimbursement of capital expenditures |
$ |
(206 |
) |
|
$ |
(129 |
) |
| Cash paid, net of reimbursement, for capital expenditures |
$ |
897 |
|
|
$ |
1,557 |
|
| |
|
|
|
|
|
|
|
Cash and Cash Equivalents and Marketable Securities
Cash and cash equivalents and marketable securities totaled $291,485 as of June 30, 2018, compared with $235,326
as of December 31, 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, 2017 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, 2018 |
|
December 31, 2017 |
| Assets |
|
|
|
| Cash and cash equivalents |
$ |
199,921 |
|
$ |
114,627 |
| Accounts receivable, net of allowances for bad debt of $0 and $0, at
June 30, 2018 and December 31, 2017, respectively |
|
22,566 |
|
|
22,138 |
| Inventory |
|
47,521 |
|
|
43,754 |
| Marketable securities |
|
91,564 |
|
|
120,699 |
| Other current assets |
|
5,380 |
|
|
9,140 |
| Total current assets |
|
366,952 |
|
|
310,358 |
| Property, plant and equipment, net |
|
105,098 |
|
|
109,735 |
| Other assets |
|
5,361 |
|
|
5,470 |
| Total noncurrent assets |
|
110,459 |
|
|
115,205 |
| Total Assets |
$ |
477,411 |
|
$ |
425,563 |
| Liabilities and Stockholders’ Equity |
|
|
|
| Accounts payable |
$ |
35,493 |
|
$ |
19,579 |
| Dividends payable |
|
5,250 |
|
|
10,498 |
| Other current liabilities |
|
12,744 |
|
|
5,204 |
| Total current liabilities |
|
53,487 |
|
|
35,281 |
| Deferred revenue – long-term |
|
17,142 |
|
|
16,522 |
| Other noncurrent liabilities |
|
18,289 |
|
|
22,164 |
| Total noncurrent liabilities |
|
35,431 |
|
|
38,686 |
| Total liabilities |
|
88,918 |
|
|
73,967 |
| 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,
43,742,677 and 43,741,670, issued and outstanding as of June 30, 2018 and December 31, 2017, respectively |
|
4 |
|
|
4 |
| Accumulated other comprehensive income |
|
145 |
|
|
8,433 |
| Additional paid in capital |
|
282,178 |
|
|
281,964 |
| Retained earnings |
|
106,166 |
|
|
61,195 |
| Total Stockholders’ Equity |
|
388,493 |
|
|
351,596 |
| Total Liabilities and Stockholders’ Equity |
$ |
477,411 |
|
$ |
425,563 |
| |
|
|
|
|
|
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, |
| |
2018 |
|
2017 |
|
2018 |
|
2017 |
| Revenue |
$ |
88,336 |
|
|
$ |
68,048 |
|
|
$ |
144,083 |
|
|
$ |
122,159 |
|
| Cost of goods sold and distribution |
|
80,065 |
|
|
|
66,250 |
|
|
|
98,305 |
|
|
|
114,231 |
|
| Gross profit |
|
8,271 |
|
|
|
1,798 |
|
|
|
45,778 |
|
|
|
7,928 |
|
| Selling, general, and administrative expenses |
|
1,647 |
|
|
|
1,579 |
|
|
|
3,405 |
|
|
|
3,479 |
|
| Research and development expenses |
|
784 |
|
|
|
845 |
|
|
|
1,966 |
|
|
|
1,600 |
|
| |
|
2,431 |
|
|
|
2,424 |
|
|
|
5,371 |
|
|
|
5,079 |
|
| Income/(loss) from operations |
|
5,840 |
|
|
|
(626 |
) |
|
|
40,407 |
|
|
|
2,849 |
|
| Other income, net |
|
2,214 |
|
|
|
1,508 |
|
|
|
(206 |
) |
|
|
3,026 |
|
| Income before income taxes |
|
8,054 |
|
|
|
882 |
|
|
|
40,201 |
|
|
|
5,875 |
|
| Provision/(benefit) for income taxes |
|
2,003 |
|
|
|
48 |
|
|
|
(1,676 |
) |
|
|
1,645 |
|
| Net income |
$ |
6,051 |
|
|
$ |
834 |
|
|
$ |
41,877 |
|
|
$ |
4,230 |
|
| |
|
|
|
|
|
|
|
| Earnings per common share |
|
|
|
|
|
|
|
| Basic |
$ |
0.14 |
|
|
$ |
0.02 |
|
|
$ |
0.96 |
|
|
$ |
0.10 |
|
| Diluted |
$ |
0.14 |
|
|
$ |
0.02 |
|
|
$ |
0.96 |
|
|
$ |
0.10 |
|
| Weighted average shares outstanding |
|
|
|
|
|
|
|
| Basic |
|
43,716,726 |
|
|
|
43,665,171 |
|
|
|
43,716,698 |
|
|
|
43,641,038 |
|
| Diluted |
|
43,720,942 |
|
|
|
43,675,688 |
|
|
|
43,721,568 |
|
|
|
43,649,400 |
|
| |
|
|
|
|
|
|
|
| Comprehensive Income |
|
|
|
|
|
|
|
| Net income |
$ |
6,051 |
|
|
$ |
834 |
|
|
$ |
41,877 |
|
|
$ |
4,230 |
|
| Other comprehensive income from unrealized |
|
|
|
|
|
|
|
| net gain on available-for-sale securities |
|
55 |
|
|
|
3,210 |
|
|
|
(19 |
) |
|
|
6,096 |
|
| Income tax effect |
|
(12 |
) |
|
|
(1,126 |
) |
|
|
4 |
|
|
|
(2,137 |
) |
| Total unrealized gain/(loss), net of tax |
|
43 |
|
|
|
2,084 |
|
|
|
(15 |
) |
|
|
3,959 |
|
| Comprehensive income |
$ |
6,094 |
|
|
$ |
2,918 |
|
|
$ |
41,862 |
|
|
$ |
8,189 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FutureFuel Corp.
Consolidated Statements of Cash Flows
For the Six Months Ended June 30, 2018 and 2017
(Dollars in thousands)
(Unaudited)
| |
|
| |
Six months ended June 30, |
| |
2018 |
|
2017 |
| Cash flows provided by operating activities |
|
|
|
| Net income |
$ |
41,877 |
|
|
$ |
4,230 |
|
| Adjustments to reconcile net income to net cash provided by operating
activities: |
|
|
|
| Depreciation |
|
5,512 |
|
|
|
5,808 |
|
| Amortization of deferred financing costs |
|
72 |
|
|
|
72 |
|
| Benefit for deferred income taxes |
|
(3,885 |
) |
|
|
(1,763 |
) |
| Change in fair value of equity securities |
|
6,412 |
|
|
|
- |
|
| Change in fair value of derivative instruments |
|
(1,559 |
) |
|
|
318 |
|
| Other than temporary impairment of marketable securities |
|
- |
|
|
|
177 |
|
| Impairment of fixed assets |
|
171 |
|
|
|
9 |
|
| Gain on the sale of investments |
|
(2,324 |
) |
|
|
392 |
|
| Stock based compensation |
|
214 |
|
|
|
750 |
|
| Losses on disposals of fixed assets |
|
37 |
|
|
|
77 |
|
| Noncash interest expense |
|
14 |
|
|
|
13 |
|
| Changes in operating assets and liabilities: |
|
|
|
| Accounts receivable |
|
(417 |
) |
|
|
5,613 |
|
| Accounts receivable – related parties |
|
(11 |
) |
|
|
(2,573 |
) |
| Inventory |
|
(3,767 |
) |
|
|
15,204 |
|
| Income tax receivable |
|
3,456 |
|
|
|
4,262 |
|
| Prepaid expenses |
|
706 |
|
|
|
626 |
|
| Prepaid expenses – related parties |
|
- |
|
|
|
(7 |
) |
| Accrued interest on marketable securities |
|
(82 |
) |
|
|
(11 |
) |
| Other assets |
|
39 |
|
|
|
19 |
|
| Accounts payable |
|
16,316 |
|
|
|
(5,150 |
) |
| Accounts payable – related parties |
|
(402 |
) |
|
|
525 |
|
| Accrued expenses and other current liabilities |
|
4,584 |
|
|
|
1,370 |
|
| Accrued expenses and other current liabilities – related parties |
|
- |
|
|
|
(142 |
) |
| Deferred revenue |
|
(1,603 |
) |
|
|
(1,972 |
) |
| Other noncurrent liabilities |
|
- |
|
|
|
112 |
|
| Net cash provided by operating activities |
|
65,360 |
|
|
|
27,959 |
|
| Cash flows from investing activities |
|
|
|
| Collateralization of derivative instruments |
|
1,237 |
|
|
|
(34 |
) |
| Purchase of marketable securities |
|
(10,690 |
) |
|
|
(19,322 |
) |
| Proceeds from the sale of marketable securities |
|
35,718 |
|
|
|
10,268 |
|
| Proceeds from the sale of fixed assets |
|
20 |
|
|
|
- |
|
| Capital expenditures |
|
(1,103 |
) |
|
|
(1,686 |
) |
| Net cash provided by/(used in) investing
activities |
|
25,182 |
|
|
|
(10,774 |
) |
| Cash flows from financing activities |
|
|
|
| Minimum tax withholding on stock options exercised and awards
vested |
|
- |
|
|
|
(8 |
) |
| Excess tax benefits associated with stock options and awards |
|
- |
|
|
|
(1 |
) |
| Payment of dividends |
|
(5,248 |
) |
|
|
(105,438 |
) |
| Net cash used in financing activities |
|
(5,248 |
) |
|
|
(105,447 |
) |
| Net change in cash and cash equivalents |
|
85,294 |
|
|
|
(88,262 |
) |
| Cash and cash equivalents at beginning of period |
|
114,627 |
|
|
|
199,272 |
|
| Cash and cash equivalents at end of period |
$ |
199,921 |
|
|
$ |
111,010 |
|
| |
|
|
|
| Cash paid for interest |
$ |
- |
|
|
$ |
- |
|
| Cash paid for income taxes |
$ |
759 |
|
|
$ |
55 |
|
| |
|
|
|
|
|
|
|
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, |
| |
2018 |
|
2017 |
|
2018 |
|
2017 |
| Adjusted EBITDA |
$ |
11,667 |
|
|
$ |
2,079 |
|
|
$ |
49,264 |
|
|
$ |
7,648 |
|
| Depreciation |
|
(2,756 |
) |
|
|
(2,912 |
) |
|
|
(5,512 |
) |
|
|
(5,808 |
) |
| Non-cash stock-based compensation |
|
(107 |
) |
|
|
(273 |
) |
|
|
(214 |
) |
|
|
(750 |
) |
| Interest and dividend income |
|
2,153 |
|
|
|
1,991 |
|
|
|
4,145 |
|
|
|
3,714 |
|
| Non-cash interest expense |
|
(43 |
) |
|
|
(43 |
) |
|
|
(86 |
) |
|
|
(86 |
) |
| Losses on disposal of property and equipment |
|
(32 |
) |
|
|
(46 |
) |
|
|
(37 |
) |
|
|
(77 |
) |
| (Losses)/gains on derivative instruments |
|
(3,109 |
) |
|
|
524 |
|
|
|
(3,271 |
) |
|
|
1,803 |
|
| Gains/(losses) on marketable securities |
|
281 |
|
|
|
(438 |
) |
|
|
(4,088 |
) |
|
|
(569 |
) |
| Income tax (provision)/benefit |
|
(2,003 |
) |
|
|
(48 |
) |
|
|
1,676 |
|
|
|
(1,645 |
) |
| Net income |
$ |
6,051 |
|
|
$ |
834 |
|
|
$ |
41,877 |
|
|
$ |
4,230 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Adjusted EBITDA to Net Cash Provided by Operating Activities
| |
|
| |
Six months ended June 30, |
| |
2018 |
|
2017 |
| Adjusted EBITDA |
$ |
49,264 |
|
|
$ |
7,648 |
|
| Benefit for deferred income taxes |
|
(3,885 |
) |
|
|
(1,763 |
) |
| Impairment of fixed assets |
|
171 |
|
|
|
9 |
|
| Interest and dividend income |
|
4,145 |
|
|
|
3,714 |
|
| Income tax benefit/(expense) |
|
1,676 |
|
|
|
(1,645 |
) |
| (Losses)/gains on derivative instruments |
|
(3,271 |
) |
|
|
1,803 |
|
| Change in fair value of derivative instruments |
|
(1,559 |
) |
|
|
318 |
|
| Changes in operating assets and liabilities, net |
|
18,819 |
|
|
|
17,876 |
|
| Other |
|
- |
|
|
|
(1 |
) |
| Net cash provided by operating activities |
$ |
65,360 |
|
|
$ |
27,959 |
|
| |
|
|
|
|
|
|
|
FutureFuel Corp.
Condensed Consolidated Segment Income
(Dollars in thousands)
(Unaudited)
| |
|
|
| |
Three months ended June
30,
|
|
Six months ended June 30, |
| |
2018 |
|
2017 |
|
2018 |
|
2017 |
| Revenue |
|
|
|
|
|
|
|
| Custom chemicals |
$ |
27,072 |
|
|
$ |
19,644 |
|
|
$ |
50,492 |
|
|
$ |
41,596 |
|
| Performance chemicals |
|
4,455 |
|
|
|
3,707 |
|
|
|
10,116 |
|
|
|
8,112 |
|
| Chemicals revenue |
$ |
31,527 |
|
|
$ |
23,351 |
|
|
$ |
60,608 |
|
|
$ |
49,708 |
|
| Biofuels revenue |
|
56,809 |
|
|
|
44,697 |
|
|
|
83,475 |
|
|
|
72,451 |
|
| Total Revenue |
$ |
88,336 |
|
|
$ |
68,048 |
|
|
$ |
144,083 |
|
|
$ |
122,159 |
|
| |
|
|
|
|
|
|
|
| Segment gross profit |
|
|
|
|
|
|
|
| Chemicals |
$ |
8,016 |
|
|
$ |
5,332 |
|
|
$ |
15,572 |
|
|
$ |
12,341 |
|
| Biofuels |
|
255 |
|
|
|
(3,534 |
) |
|
|
30,206 |
|
|
|
(4,413 |
) |
| Total gross profit |
|
8,271 |
|
|
|
1,798 |
|
|
|
45,778 |
|
|
|
7,928 |
|
| Corporate expenses |
|
(2,431 |
) |
|
|
(2,424 |
) |
|
|
(5,371 |
) |
|
|
(5,079 |
) |
| Income/(loss) before interest and taxes |
|
5,840 |
|
|
|
(626 |
) |
|
|
40,407 |
|
|
|
2,849 |
|
| Interest and other income |
|
2,434 |
|
|
|
1,991 |
|
|
|
4,145 |
|
|
|
3,714 |
|
| Interest and other expense |
|
(220 |
) |
|
|
(483 |
) |
|
|
(4,351 |
) |
|
|
(688 |
) |
| (Provision)/benefit for income taxes |
|
(2,003 |
) |
|
|
(48 |
) |
|
|
1,676 |
|
|
|
(1,645 |
) |
| Net income |
$ |
6,051 |
|
|
$ |
834 |
|
|
$ |
41,877 |
|
|
$ |
4,230 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
