CLAYTON, Mo., March 15, 2019 (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, 2018.
Fourth Quarter 2018 Financial Highlights (all comparisons are with the fourth
quarter of 2017)
- Revenues were $65.5 million, down 13.0% from $75.3 million
- Adjusted EBITDA was $11.0 million, up 20.0% from $9.2 million
- Net income decreased to $1.8 million, or $0.04 per diluted share, from $15.9 million, or $0.36 per diluted share.
2018 Financial Highlights (all comparisons are with the year ended December
31, 2017)
- Revenues were $291.0 million, up 5.8% from $275.0 million
- Adjusted EBITDA was $74.0 million, up 180.5% from $26.4 million
- Net income increased to $53.2 million, or $1.22 per diluted share, from $23.5 million, or $0.54 per diluted share.
“We are pleased to present these results which reflect a strong year for our company. Revenues and contribution were up in both
our Chemicals and Biofuels segments supported by excellent performance at our Batesville, AR manufacturing site.
Higher oil prices through most of 2018 led to strong demand for the chemicals we supply into the energy sector and we will look
to build further on that during the year ahead. The contribution from our Biofuels segment was greatly enhanced by the
retrospective reinstatement of the 2017 Blenders Tax Credit in 2018. Disappointingly, this credit has not been reinstated
for volumes produced and sold in 2018, nor 2019 and its absence creates great uncertainty in our industry. We would
urge our Lawmakers to bring clarity to this credit as soon as possible." said Tom McKinlay, Chief Operating Officer for
FutureFuel Corp.
2019 Regular Cash Dividends
FutureFuel declared normal quarterly dividends of $0.06 per share for 2019.
| |
Three months ended December 31: |
| |
|
|
|
|
Dollar |
|
% |
| |
|
2018 |
|
|
2017 |
|
Change |
|
Change |
| Revenues |
$ |
65,513 |
|
$ |
75,261 |
|
$ |
(9,748 |
) |
|
(13.0 |
%) |
| Income from operations |
$ |
12,803 |
|
$ |
3,838 |
|
$ |
8,965 |
|
|
233.6 |
% |
| Net income |
$ |
1,836 |
|
$ |
15,947 |
|
$ |
(14,111 |
) |
|
(88.5 |
%) |
| Earnings per common share: |
|
|
|
|
|
|
|
| Basic |
$ |
0.04 |
|
$ |
0.36 |
|
$ |
(0.32 |
) |
|
(88.9 |
%) |
| Diluted |
$ |
0.04 |
|
$ |
0.36 |
|
$ |
(0.32 |
) |
|
(88.9 |
%) |
| Capital expenditures and intangibles (net of customer reimbursements and regulatory grants) |
$ |
1,011 |
|
$ |
993 |
|
$ |
18 |
|
|
1.8 |
% |
| Adjusted EBITDA |
$ |
10,986 |
|
$ |
9,152 |
|
$ |
1,834 |
|
|
20.0 |
% |
| |
|
|
|
|
|
|
|
| |
Twelve months ended December 31: |
| |
|
|
|
|
Dollar |
|
% |
| |
|
2018 |
|
|
2017 |
|
Change |
|
Change |
| Revenues |
$ |
291,018 |
|
$ |
275,026 |
|
$ |
15,992 |
|
|
5.8 |
% |
| Income from operations |
$ |
63,439 |
|
$ |
9,887 |
|
$ |
53,552 |
|
|
541.6 |
% |
| Net income |
$ |
53,158 |
|
$ |
23,511 |
|
$ |
29,647 |
|
|
126.1 |
% |
| Earnings per common share: |
|
|
|
|
|
|
|
| Basic |
$ |
1.22 |
|
$ |
0.54 |
|
$ |
0.68 |
|
|
125.1 |
% |
| Diluted |
$ |
1.22 |
|
$ |
0.54 |
|
$ |
0.68 |
|
|
125.1 |
% |
| Capital expenditures and intangibles (net of customer reimbursements and regulatory grants) |
$ |
2,208 |
|
$ |
3,406 |
|
$ |
(1,198 |
) |
|
(35.2 |
%) |
| Adjusted EBITDA |
$ |
73,912 |
|
$ |
26,353 |
|
$ |
47,559 |
|
|
180.5 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
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)
Consolidated Financial Results Q4 2018 versus Q4 2017
Fourth quarter sales revenue of $65,513 decreased as biofuel volumes declined and were offset in part by
continued volume strength in the chemical segment.
Income from operations of $12,803 increased mostly from improved chemical volume strength and improved gains
from the change in the biofuel segment’s activity in derivative instruments.
Other losses, net, of $6,284 resulted from mark to market losses on equity securities of $7,639. In the
prior year, mark to market adjustments were a component of other comprehensive income. Realized losses on equity securities
were $1,099 in fourth quarter 2018 as compared with realized losses of $145 in the fourth quarter of 2017.
Net income of $1,836 was down primarily from an estimated net tax benefit recognized in the fourth quarter 2017
as a result of tax law changes. Net income also declined due to an uncertain tax position of $3,176 (inclusive of interest)
recognized in the fourth quarter of 2018.
Consolidated Financial Results 2018 versus 2017
Consolidated sales revenue of $291,018 increased from higher selling prices in both the biofuel and chemical
segments. Chemical sales volumes increased from improved conditions in the agrochemical and energy markets.
Income from operations of $63,439 increased primarily from: i) the reinstatement of the biodiesel BTC for 2017
in 2018, $28,853 (see Note 3 of the 2018 consolidated financial statements for further details) ii) increased volumes in the
chemical segment from the agrochemical and energy markets iii) gains in the unrealized and realized activity in derivative
instruments as compared to losses in the prior year; the change in the derivative activity increased gross profit $633 in 2018 as
compared to decreasing gross profit $3,844 in 2017 and iv) the benefit of adjustments in the carrying value of our inventory as
determined utilizing the LIFO method of inventory accounting. The LIFO adjustment decreased gross profit $ 2,249 in 2018 and
decreased gross profit $5,204 in 2017.
Other losses, net, of $3,262 resulted from mark to market losses on equity securities of $13,236. In the
prior year, mark to market adjustments were a component of other comprehensive income. See Note 27 of the 2018 consolidated
financial statements for further details.
FutureFuel reported net income of $53,158, or $1.22 per diluted share, for 2018, compared with net income of
$23,511, or $0.54 per diluted share in 2017. Adjusted EBITDA for 2018 totaled $73,912, up from $26,353 in 2017. A one-time
tax benefit of $12,066 was recognized in 2017 resulting from the enactment of The Tax Cuts and Jobs Act of 2017. This benefit
was due to an anticipated lower tax rate for future reversals of deferred tax liabilities. Reducing net income was an
uncertain tax position taken in the fourth quarter of $3,176 inclusive of interest expense. See Note 14 of the 2018
consolidated financial statements for further details.
Capital Expenditures
Capital expenditures and intangibles were $4,867 in 2018, compared with $3,581 in 2017. FutureFuel was
reimbursed for a portion of these expenditures by certain customers as summarized in the following table.
(Dollars in thousands)
| |
|
2018 |
|
|
|
2017 |
|
| Cash paid for capital expenditures and intangibles |
$ |
4,867 |
|
|
$ |
3,581 |
|
| Cash received as reimbursement of capital expenditures |
$ |
(2,659 |
) |
|
$ |
(175 |
) |
| Cash paid, net of reimbursement, for capital expenditures |
$ |
2,208 |
|
|
$ |
3,406 |
|
| |
|
|
|
|
|
|
|
Cash and Cash Equivalents and Marketable Securities
Cash and cash equivalents and marketable securities totaled $294,860 as of December 31, 2018, compared with
$235,326 as of December 31, 2017.
About FutureFuel
FutureFuel is a leading manufacturer of diversified chemical products and biofuels. FutureFuel’s chemicals
segment manufactures specialty chemicals for specific customers (“custom chemicals”) 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, 2018 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, 2018 |
|
December 31, 2017 |
| Assets |
|
|
|
| Cash and cash equivalents |
$ |
214,972 |
|
|
$ |
114,627 |
Accounts receivable, net of allowances for bad debt of $0 and $0, at December 31, 2018 and
December 31, 2017, respectively |
|
18,138 |
|
|
|
22,138 |
| Inventory |
|
39,296 |
|
|
|
43,754 |
| Marketable securities |
|
79,888 |
|
|
|
120,699 |
| Other current assets |
|
10,036 |
|
|
|
9,140 |
| Total current assets |
|
362,330 |
|
|
|
310,358 |
| Property, plant and equipment, net |
|
103,575 |
|
|
|
109,735 |
| Other assets |
|
5,250 |
|
|
|
5,470 |
| Total noncurrent assets |
|
108,825 |
|
|
|
115,205 |
| Total Assets |
$ |
471,155 |
|
|
$ |
425,563 |
| Liabilities and Stockholders’ Equity |
|
|
|
| Accounts payable |
$ |
21,670 |
|
|
$ |
19,579 |
| Dividends payable |
|
10,498 |
|
|
|
10,498 |
| Other current liabilities |
|
7,323 |
|
|
|
5,204 |
| Total current liabilities |
|
39,491 |
|
|
|
35,281 |
| Deferred revenue – long-term |
|
20,319 |
|
|
|
16,522 |
| Other noncurrent liabilities |
|
22,267 |
|
|
|
22,164 |
| Total noncurrent liabilities |
|
42,586 |
|
|
|
38,686 |
| Total liabilities |
|
82,077 |
|
|
|
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, 43,743,243 and
43,741,670, issued and outstanding as of December 31, 2018 and 2017, respectively |
|
4 |
|
|
|
4 |
| Accumulated other comprehensive income |
|
(20 |
) |
|
|
8,433 |
| Additional paid in capital |
|
282,145 |
|
|
|
281,964 |
| Retained earnings |
|
106,949 |
|
|
|
61,195 |
| Total Stockholders’ Equity |
|
389,078 |
|
|
|
351,596 |
| Total Liabilities and Stockholders’ Equity |
$ |
471,155 |
|
|
$ |
425,563 |
| |
|
|
|
|
|
|
| |
FutureFuel Corp.
Condensed Consolidated Statements of Operations and Comprehensive Income
(Dollars in thousands, except per share amounts)
(Unaudited) |
| |
| |
Three months ended December 31: |
| |
|
2018 |
|
|
|
2017 |
|
| Revenue |
$ |
65,513 |
|
|
$ |
75,261 |
|
| Cost of goods sold and distribution |
|
50,546 |
|
|
|
68,454 |
|
| Gross profit |
|
14,967 |
|
|
|
6,807 |
|
| Selling, general, and administrative expenses |
|
1,483 |
|
|
|
1,845 |
|
| Research and development expenses |
|
681 |
|
|
|
1,124 |
|
| |
|
2,164 |
|
|
|
2,969 |
|
| Income from operations |
|
12,803 |
|
|
|
3,838 |
|
| Other (losses)/income, net |
|
(6,284 |
) |
|
|
1,872 |
|
| Income before income taxes |
|
6,519 |
|
|
|
5,710 |
|
| Provision/(benefit) for income taxes |
|
4,683 |
|
|
|
(10,237 |
) |
| Net income |
$ |
1,836 |
|
|
$ |
15,947 |
|
| |
|
|
|
| Earnings per common share |
|
|
|
| Basic |
$ |
0.04 |
|
|
$ |
0.36 |
|
| Diluted |
$ |
0.04 |
|
|
$ |
0.36 |
|
| Weighted average shares outstanding |
|
|
|
| Basic |
|
43,716,670 |
|
|
|
43,716,670 |
|
| Diluted |
|
43,728,058 |
|
|
|
43,728,058 |
|
| |
|
|
|
| Comprehensive Income |
|
|
|
| Net income |
$ |
1,836 |
|
|
$ |
15,947 |
|
| Other comprehensive income/(loss) from unrealized |
|
|
|
| net gains/(losses) on available-for-sale securities |
|
(183 |
) |
|
|
929 |
|
| Income tax effect |
|
39 |
|
|
|
(326 |
) |
| Total unrealized gains/(losses), net of tax |
|
(144 |
) |
|
|
603 |
|
| Comprehensive income |
$ |
1,692 |
|
|
$ |
16,550 |
|
| |
FutureFuel Corp.
Condensed Consolidated Statements of Operations and Comprehensive Income
(Dollars in thousands, except per share amounts)
(Audited) |
| |
| |
Twelve months ended December 31: |
| |
|
2018 |
|
|
|
2017 |
|
| Revenue |
$ |
291,018 |
|
|
$ |
275,026 |
|
| Cost of goods sold and distribution |
|
217,620 |
|
|
|
254,765 |
|
| Gross profit |
|
73,398 |
|
|
|
20,261 |
|
| Selling, general, and administrative expenses |
|
6,435 |
|
|
|
6,715 |
|
| Research and development expenses |
|
3,524 |
|
|
|
3,659 |
|
| |
|
9,959 |
|
|
|
10,374 |
|
| Income from operations |
|
63,439 |
|
|
|
9,887 |
|
| Other (losses)/income, net |
|
(3,262 |
) |
|
|
6,762 |
|
| Income before income taxes |
|
60,177 |
|
|
|
16,649 |
|
| Provision/(benefit) for income taxes |
|
7,019 |
|
|
|
(6,862 |
) |
| Net income |
$ |
53,158 |
|
|
$ |
23,511 |
|
| |
|
|
|
| Earnings per common share |
|
|
|
| Basic |
$ |
1.22 |
|
|
$ |
0.54 |
|
| Diluted |
$ |
1.22 |
|
|
$ |
0.54 |
|
| Weighted average shares outstanding |
|
|
|
| Basic |
|
43,542,785 |
|
|
|
43,542,785 |
|
| Diluted |
|
43,547,538 |
|
|
|
43,547,538 |
|
| |
|
|
|
| Comprehensive Income |
|
|
|
| Net income |
$ |
53,158 |
|
|
$ |
23,511 |
|
| Other comprehensive income/(loss) from unrealized |
|
|
|
| net gains/(losses) on available-for-sale securities |
|
(229 |
) |
|
|
7,535 |
|
| Income tax effect |
|
49 |
|
|
|
(2,642 |
) |
| Total unrealized gains/(losses), net of tax |
|
(180 |
) |
|
|
4,893 |
|
| Comprehensive income |
$ |
52,978 |
|
|
$ |
28,404 |
|
| |
FutureFuel Corp.
Consolidated Statements of Cash Flows
For the Years Ended December 31, 2018 and 2017
(Dollars in thousands)
(Audited) |
| |
|
|
|
|
|
|
|
| |
|
2018 |
|
|
|
2017 |
|
| Cash flows provided by operating activities |
|
|
|
| Net income |
$ |
53,158 |
|
|
$ |
23,511 |
|
| Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
| Depreciation |
|
10,969 |
|
|
|
11,617 |
|
| Amortization of deferred financing costs |
|
144 |
|
|
|
145 |
|
| Benefit for deferred income taxes |
|
(1,253 |
) |
|
|
(13,657 |
) |
| Change in fair value of equity securities |
|
13,238 |
|
|
|
- |
|
| Change in fair value of derivative instruments |
|
(2,130 |
) |
|
|
2,170 |
|
| Other than temporary impairment of marketable securities |
|
- |
|
|
|
814 |
|
| Impairment of fixed assets |
|
258 |
|
|
|
28 |
|
| Gain on the sale of investments |
|
(1,227 |
) |
|
|
(127 |
) |
| Stock based compensation |
|
357 |
|
|
|
998 |
|
| Losses on disposals of fixed assets |
|
41 |
|
|
|
195 |
|
| Noncash interest expense |
|
28 |
|
|
|
27 |
|
| Changes in operating assets and liabilities: |
|
|
|
| Accounts receivable |
|
5,679 |
|
|
|
2,386 |
|
| Accounts receivable – related parties |
|
(1,679 |
) |
|
|
220 |
|
| Inventory |
|
4,458 |
|
|
|
8,339 |
|
| Income tax receivable |
|
79 |
|
|
|
13,571 |
|
| Prepaid expenses |
|
(107 |
) |
|
|
34 |
|
| Prepaid expenses – related party |
|
- |
|
|
|
- |
|
| Accrued interest on marketable securities |
|
(25 |
) |
|
|
16 |
|
| Other assets |
|
(317 |
) |
|
|
(9 |
) |
| Accounts payable |
|
1,243 |
|
|
|
(4,403 |
) |
| Accounts payable – related parties |
|
506 |
|
|
|
(71 |
) |
| Accrued expenses and other current liabilities |
|
274 |
|
|
|
60 |
|
| Accrued expenses and other current liabilities – related parties |
|
- |
|
|
|
(142 |
) |
| Deferred revenue |
|
(1,258 |
) |
|
|
(4,215 |
) |
| Other noncurrent liabilities |
|
3,177 |
|
|
|
(2,160 |
) |
| Net cash provided by operating activities |
|
85,613 |
|
|
|
39,347 |
|
| Cash flows from investing activities |
|
|
|
| Collateralization of derivative instruments |
|
1,680 |
|
|
|
(1,901 |
) |
| Purchase of marketable securities |
|
(19,664 |
) |
|
|
(30,959 |
) |
| Proceeds from the sale of marketable securities |
|
48,235 |
|
|
|
23,254 |
|
| Proceeds from the sale of fixed assets |
|
22 |
|
|
|
4 |
|
| Capital expenditures |
|
(4,867 |
) |
|
|
(3,581 |
) |
| Net cash provided by (used in) investing activities |
|
25,406 |
|
|
|
(13,183 |
) |
| Cash flows from financing activities |
|
|
|
| Minimum tax withholding on stock options exercised and awards vested |
|
(176 |
) |
|
|
(121 |
) |
| Excess tax benefits associated with stock options and awards |
|
- |
|
|
|
- |
|
| Proceeds from issuance of stock |
|
- |
|
|
|
- |
|
| Payment of dividends |
|
(10,498 |
) |
|
|
(110,688 |
) |
| Net cash used in financing activities |
|
(10,674 |
) |
|
|
(110,809 |
) |
| Net change in cash and cash equivalents |
|
100,345 |
|
|
|
(84,645 |
) |
| Cash and cash equivalents at beginning of period |
|
114,627 |
|
|
|
199,272 |
|
| Cash and cash equivalents at end of period |
$ |
214,972 |
|
|
$ |
114,627 |
|
| |
|
|
|
| Cash paid for interest |
|
- |
|
|
|
- |
|
| Cash paid for income taxes |
$ |
9,182 |
|
|
$ |
55 |
|
| Noncash items incurred: |
|
|
|
| Noncash dividends declared |
$ |
10,498 |
|
|
$ |
10,498 |
|
| Noncash capital expenditures |
$ |
420 |
|
|
$ |
- |
|
| |
|
|
|
|
|
|
|
| |
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: |
| |
|
|
2018 |
|
|
|
2017 |
|
|
|
2018 |
|
|
2017(1) |
| Adjusted EBITDA |
|
$ |
10,986 |
|
|
$ |
9,152 |
|
|
$ |
73,912 |
|
|
$ |
26,353 |
|
| Depreciation |
|
|
(2,725 |
) |
|
|
(2,882 |
) |
|
|
(10,969 |
) |
|
|
(11,617 |
) |
| Non-cash stock-based compensation |
|
|
(36 |
) |
|
|
(120 |
) |
|
|
(357 |
) |
|
|
(998 |
) |
| Interest and dividend income |
|
|
2,495 |
|
|
|
2,130 |
|
|
|
9,183 |
|
|
|
7,809 |
|
| Non-cash interest expense (including amortization of deferred financing costs) |
|
|
(44 |
) |
|
|
(43 |
) |
|
|
(173 |
) |
|
|
(172 |
) |
| Losses on disposal of property and equipment |
|
|
- |
|
|
|
(50 |
) |
|
|
(41 |
) |
|
|
(195 |
) |
| Gains/(losses) on derivative instruments |
|
|
4,581 |
|
|
|
(2,333 |
) |
|
|
633 |
|
|
|
(3,844 |
) |
| Losses on marketable securities |
|
|
(8,738 |
) |
|
|
(144 |
) |
|
|
(12,011 |
) |
|
|
(687 |
) |
| (Provision)/benefit for income taxes |
|
|
(4,683 |
) |
|
|
10,237 |
|
|
|
(7,019 |
) |
|
|
6,862 |
|
| Net income |
|
$ |
1,836 |
|
|
$ |
15,947 |
|
|
$ |
53,158 |
|
|
$ |
23,511 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Reconciliation of Adjusted EBITDA to Net Cash Provided by Operating Activities |
| |
| |
Twelve months ended December 31: |
| |
|
2018 |
|
|
|
2017 |
|
| Adjusted EBITDA |
$ |
73,912 |
|
|
$ |
26,353 |
|
| Benefit for deferred income taxes |
|
(1,253 |
) |
|
|
(13,657 |
) |
| Impairment of fixed assets |
|
258 |
|
|
|
28 |
|
| Interest and dividend income |
|
9,183 |
|
|
|
7,809 |
|
| (Provision)/ benefit for income taxes |
|
(7,019 |
) |
|
|
6,862 |
|
| Gains/(losses) on derivative instruments |
|
633 |
|
|
|
(3,844 |
) |
| Change in fair value of derivative instruments |
|
(2,130 |
) |
|
|
2,170 |
|
| Changes in operating assets and liabilities, net |
|
12,030 |
|
|
|
13,626 |
|
| Other |
|
(1 |
) |
|
|
- |
|
| Net cash provided by operating activities |
$ |
85,613 |
|
|
$ |
39,347 |
|
| |
FutureFuel Corp.
Condensed Consolidated Segment Income
(Dollars in thousands)
(Audited) |
| |
|
|
|
| |
Three months ended December 31: |
|
Twelve months ended December 31: |
| |
|
2018 |
|
|
|
2017 |
|
|
|
2018 |
|
|
|
2017 |
|
| Revenue |
|
|
|
|
|
|
|
| Custom chemicals |
$ |
23,281 |
|
|
$ |
22,716 |
|
|
$ |
97,746 |
|
|
$ |
87,905 |
|
| Performance chemicals |
|
5,217 |
|
|
|
4,795 |
|
|
|
19,382 |
|
|
|
17,481 |
|
| Chemicals revenue |
$ |
28,498 |
|
|
$ |
27,511 |
|
|
$ |
117,128 |
|
|
$ |
105,386 |
|
| Biofuels revenue |
|
37,015 |
|
|
|
47,750 |
|
|
|
173,890 |
|
|
|
169,640 |
|
| Total Revenue |
$ |
65,513 |
|
|
$ |
75,261 |
|
|
$ |
291,018 |
|
|
$ |
275,026 |
|
| |
|
|
|
|
|
|
|
| Segment gross profit |
|
|
|
|
|
|
|
| Chemicals |
$ |
9,516 |
|
|
$ |
7,615 |
|
|
$ |
33,986 |
|
|
$ |
28,016 |
|
| Biofuels |
|
5,451 |
|
|
|
(808 |
) |
|
|
39,412 |
|
|
|
(7,755 |
) |
| Total gross profit |
|
14,967 |
|
|
|
6,807 |
|
|
|
73,398 |
|
|
|
20,261 |
|
| Corporate expenses |
|
(2,164 |
) |
|
|
(2,969 |
) |
|
|
(9,959 |
) |
|
|
(10,374 |
) |
| Income before interest and taxes |
|
12,803 |
|
|
|
3,838 |
|
|
|
63,439 |
|
|
|
9,887 |
|
| Interest and other income |
|
2,495 |
|
|
|
2,130 |
|
|
|
9,183 |
|
|
|
7,809 |
|
| Interest and other expense |
|
(8,779 |
) |
|
|
(258 |
) |
|
|
(12,445 |
) |
|
|
(1,047 |
) |
| (Provision)/benefit for income taxes |
|
(4,683 |
) |
|
|
10,237 |
|
|
|
(7,019 |
) |
|
|
6,862 |
|
| Net income |
$ |
1,836 |
|
|
$ |
15,947 |
|
|
$ |
53,158 |
|
|
$ |
23,511 |
|
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
