FutureFuel Corp. (NYSE:FF) (“FutureFuel”), a manufacturer of custom
and performance chemicals and biofuels, today announced financial
results for the year ended December 31, 2016.
Fourth Quarter 2016 Financial
Highlights (all comparisons are with the fourth quarter of
2015)
- Revenues were $69.4 million, up 104.8% from $33.9
million
- Adjusted EBITDA was $18.9 million, down 25.3% from
$25.4 million
- Net income decreased to $18.7 million, or $0.43 per
diluted share, from $29.6 million, or $0.68 per diluted
share.
2016 Financial Highlights (all
comparisons are with the year ended December 31, 2015)
- Revenues were $253.2 million, down 15.5% from $299.6
million
- Adjusted EBITDA was $55.3 million, up 10.3% from $50.1
million
- Net income increased to $56.3 million, or $1.29 per
diluted share, from $46.4 million, or $1.06 per diluted share.
“Net income in 2016 of $56.3 million demonstrated the
resilience of our company against the backdrop of a contracted
Agro and Energy chemical market. In biodiesel, while the retail
fuels market was less favorable to our operation, we responded to a
clearly defined regulatory environment and set a new production
record at our Batesville plant. In 2017, we return to a less
certain biofuels regulatory landscape which we have successfully
worked through in the past. We also anticipate some improvement in
our chemicals business," said Tom McKinlay, Chief Operating Officer
for FutureFuel Corp.
2016 Regular Cash Dividends
FutureFuel declared normal quarterly dividends
of $0.06 per share for 2017 and a special cash dividend of $2.29
paid in January 2017.
Financial Overview and Key Operating
Metrics
Financial and operating metrics, which include
non-GAAP financial measures, include dollars in thousands, except
per share amounts:
FutureFuel Corp. |
Certain Financial and Operating
Metrics |
(Unaudited) |
|
|
|
Three months ended December 31: |
|
|
|
|
|
|
|
|
|
|
|
Dollar |
|
|
% |
|
|
|
2016 |
|
|
2015 |
|
|
Change |
|
|
Change |
|
Revenues |
|
$ |
69,373 |
|
|
$ |
33,872 |
|
|
$ |
35,501 |
|
|
104.8% |
|
Income from
operations |
|
$ |
14,777 |
|
|
$ |
27,084 |
|
|
$ |
(12,307 |
) |
|
(45.4% |
) |
Net income |
|
$ |
18,680 |
|
|
$ |
29,647 |
|
|
$ |
(10,967 |
) |
|
(37.0% |
) |
Earnings per common
share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.43 |
|
|
$ |
0.68 |
|
|
$ |
(0.25 |
) |
|
(36.8% |
) |
Diluted |
|
$ |
0.43 |
|
|
$ |
0.68 |
|
|
$ |
(0.25 |
) |
|
(36.8% |
) |
Capital expenditures
and intangibles (net of customer reimbursements and regulatory
grants) |
|
$ |
2,088 |
|
|
$ |
831 |
|
|
$ |
1,257 |
|
|
151.3% |
|
Adjusted EBITDA |
|
$ |
18,933 |
|
|
$ |
25,352 |
|
|
$ |
(6,419 |
) |
|
(25.3% |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve months ended December 31: |
|
|
|
|
|
|
|
|
|
|
|
Dollar |
|
|
% |
|
|
|
2016 |
|
|
2015 |
|
|
Change |
|
|
Change |
|
Revenues |
|
$ |
253,193 |
|
|
$ |
299,611 |
|
|
$ |
(46,418 |
) |
|
(15.5% |
) |
Income from
operations |
|
$ |
36,523 |
|
|
$ |
46,971 |
|
|
$ |
(10,448 |
) |
|
(22.2% |
) |
Net income |
|
$ |
56,341 |
|
|
$ |
46,421 |
|
|
$ |
9,920 |
|
|
21.4% |
|
Earnings per common
share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
1.29 |
|
|
$ |
1.06 |
|
|
$ |
0.23 |
|
|
21.8% |
|
Diluted |
|
$ |
1.29 |
|
|
$ |
1.06 |
|
|
$ |
0.23 |
|
|
21.8% |
|
Capital expenditures
and intangibles (net of customer reimbursements and regulatory
grants) |
|
$ |
4,223 |
|
|
$ |
6,798 |
|
|
$ |
(2,575 |
) |
|
(37.9% |
) |
Adjusted EBITDA |
|
$ |
55,261 |
|
|
$ |
50,097 |
|
|
$ |
5,164 |
|
|
10.3% |
|
2016 Financial and Business Summary
Revenues for the year ended December 31, 2016 were $253.2
million as compared to revenues for the year ended December 31,
2015 of $299.6 million, a decrease of 15.5%.
Chemical sales revenue decreased 19.8% or $24,941 in 2016
compared with 2015. Sales revenue for our custom chemicals product
line (chemicals produced for specific customers) totaled $82,667, a
decline of $25,493 from 2015. The decline in the laundry detergent
additive with the decline in custom manufacturing products from
contraction in the Agro chemical and energy markets were the most
significant reductions in the custom chemical product line. In
addition, sales of custom chemicals declined as result of customers
insourcing some external production during contraction in the Agro
chemical and energy markets. Performance chemicals (comprised of
multi-customer products which are sold based on specification)
revenue was $18,240 in 2016, an increase of $552 from 2015. This
increase was from sales of polymer modifier products and
glycerin.
Biofuels sales revenue decreased 12.4% or $21,477 in 2016
compared to 2015 primarily from reduced gross sales in common
carrier pipelines. Common carrier pipeline sales totaled $9,018
compared to $66,544 in 2015. Increased sales volumes of biodiesel
and diesel in a favorable market (with both the blenders tax credit
and the renewable fuel volume obligation in place) helped offset
the decline in common carrier pipeline revenue. The market faced
greater headwinds in 2015 without either benefit in place for the
majority of the year. The renewable volume obligation was set in
late 2015 and the BTC was reinstated in December 2015 and made
retroactive to January 1, 2015. At the end of 2015, as a result of
contractual provisions with certain customers, a share of the BTC
was owed upon reinstatement of the BTC to customers. No such
adjustment was made in 2016 as the BTC was in full effect for the
year and expired on December 31, 2016.
FutureFuel reported net income of $56.3 million, or $1.29 per
diluted share, for 2016, compared with net income of $46.4 million,
or $1.06 per diluted share in 2015. Adjusted EBITDA for 2016
totaled $55.3 million, up from $50.1 million in 2015.
Capital Expenditures
Capital expenditures and intangibles were $4.5 million in 2016,
compared with $8.6 million in 2015. FutureFuel was reimbursed for a
portion of these expenditures by certain customers as summarized in
the following table.
(Dollars in thousands) |
|
|
|
2016 |
|
|
2015 |
|
Cash paid for capital
expenditures and intangibles |
|
$ |
4,495 |
|
|
$ |
8,630 |
|
Cash received as
reimbursement of capital expenditures |
|
$ |
(272 |
) |
|
$ |
(1,832 |
) |
Cash paid, net of
reimbursement, for capital expenditures |
|
$ |
4,223 |
|
|
$ |
6,798 |
|
Cash and Cash Equivalents and Marketable
Securities
Cash and cash equivalents and marketable
securities totaled $305 million as of December 31, 2016, compared
with $229 million as of December 31, 2015.
About FutureFuel
FutureFuel is a leading manufacturer of
diversified chemical products and biofuels. FutureFuel’s chemicals
segment manufactures specialty chemicals for specific customers
(“custom manufacturing”) as well as multi-customer specialty
chemicals (“performance chemicals”). FutureFuel’s custom
manufacturing product portfolio includes a laundry detergent
additive, proprietary agrochemicals, adhesion promoters, a biocide
intermediate, and an antioxidant precursor. FutureFuel’s
performance chemicals products include a portfolio of proprietary
nylon and polyester polymer modifiers and several small-volume
specialty chemicals and solvents for diverse applications.
FutureFuel’s biofuels segment primarily produces and sells
biodiesel to its customers. Please visit
www.futurefuelcorporation.com for more information.
Forward-Looking Statements
This document contains forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. Forward-looking statements deal with
FutureFuel’s current plans, intentions, beliefs, and expectations,
and statements of future economic performance. Statements
containing such terms as “believe,” “do not believe,” “plan,”
“expect,” “intend,” “estimate,” “anticipate,” and other phrases of
similar meaning are considered to contain uncertainty and are
forward-looking statements. In addition, from time to time
FutureFuel or its representatives have made or will make
forward-looking statements orally or in writing. Furthermore, such
forward-looking statements may be included in various filings that
the company makes with United States Securities and Exchange
Commission (the “SEC”), in press releases, or in oral statements
made by or with the approval of one of FutureFuel’s authorized
executive officers.
These forward-looking statements are subject to
certain known and unknown risks and uncertainties, as well as
assumptions that could cause actual results to differ materially
from those reflected in these forward-looking statements. Factors
that might cause actual results to differ include, but are not
limited to, those set forth under the headings “Risk Factors” and
“Management’s Discussion and Analysis of Financial Condition and
Results of Operations” in FutureFuel’s Form 10-K Annual Report for
the year ended December 31, 2016 and in its future filings
made with the SEC. An investor should not place undue reliance on
any forward-looking statements contained in this document, which
reflect FutureFuel management’s opinions only as of their
respective dates. Except as required by law, the company undertakes
no obligation to revise or publicly release the results of any
revisions to forward-looking statements. The risks and
uncertainties described in this document and in current and future
filings with the SEC are not the only ones faced by FutureFuel. New
factors emerge from time to time, and it is not possible for the
company to predict which will arise. There may be additional risks
not presently known to the company or that the company currently
believes are immaterial to its business. In addition, FutureFuel
cannot assess the impact of each factor on its business or the
extent to which any factor, or combination of factors, may cause
actual results to differ materially from those contained in any
forward-looking statements. If any such risks occur, FutureFuel’s
business, operating results, liquidity, and financial condition
could be materially affected in an adverse manner. An investor
should consult any additional disclosures FutureFuel has made or
will make in its reports to the SEC on Forms 10-K, 10-Q, and 8-K,
and any amendments thereto. All subsequent written and oral
forward-looking statements attributable to FutureFuel or persons
acting on its behalf are expressly qualified in their entirety by
the cautionary statements contained in this document.
Non-GAAP Financial Measures
In this press release, FutureFuel used adjusted
EBITDA as a key operating metric to measure both performance and
liquidity. Adjusted EBITDA is a non-GAAP financial measure.
Adjusted EBITDA is not a substitute for operating income, net
income, or cash flow from operating activities (each as determined
in accordance with GAAP), as a measure of performance or liquidity.
Adjusted EBITDA has limitations as an analytical tool, and should
not be considered in isolation or as a substitute for analysis of
results as reported under GAAP. FutureFuel defines adjusted EBITDA
as net income before interest, income taxes, depreciation, and
amortization expenses, excluding, when applicable, non-cash
share-based compensation expense, public offering expenses,
acquisition-related transaction costs, purchase accounting
adjustments, loss on disposal of property and equipment, gains or
losses on derivative instruments, other non-operating income or
expense. Information relating to adjusted EBITDA is provided so
that investors have the same data that management employs in
assessing the overall operation and liquidity of FutureFuel’s
business. FutureFuel’s calculation of adjusted EBITDA may be
different from similarly titled measures used by other companies;
therefore, the results of its calculation are not necessarily
comparable to the results of other companies.
Adjusted EBITDA allows FutureFuel’s chief
operating decision makers to assess the performance and liquidity
of FutureFuel’s business on a consolidated basis to assess the
ability of its operating segments to produce operating cash flow to
fund working capital needs, to fund capital expenditures, and to
pay dividends. In particular, FutureFuel management believes that
adjusted EBITDA permits a comparative assessment of FutureFuel’s
operating performance and liquidity, relative to a performance and
liquidity based on GAAP results, while isolating the effects of
depreciation and amortization, which may vary among its operating
segments without any correlation to their underlying operating
performance, and of non-cash stock-based compensation expense,
which is a non-cash expense that varies widely among similar
companies, and gains and losses on derivative instruments, whose
immediate recognition can cause net income to be volatile from
quarter to quarter due to the timing of the valuation change in the
derivative instruments relative to the sale of biofuel.
A table included in this earnings release
reconciles adjusted EBITDA with net income, the most directly
comparable GAAP performance financial measure, and a table
reconciles adjusted EBITDA with cash flows from operations, the
most directly comparable GAAP liquidity financial measure.
FutureFuel Corp. |
Condensed Consolidated Balance
Sheets |
(Dollars in thousands) |
(Audited) |
|
|
|
December 31, 2016 |
|
|
December 31, 2015 |
|
Assets |
|
|
|
|
|
|
|
|
Cash and cash
equivalents |
|
$ |
199,272 |
|
|
$ |
154,049 |
|
Accounts receivable,
inclusive of the blenders' tax credit of $5,495 and $30,895 and net
of allowances for bad debt of $0 and $0, at December 31, 2016 and
December 31, 2015, respectively |
|
|
24,744 |
|
|
|
46,329 |
|
Inventory |
|
|
52,093 |
|
|
|
64,957 |
|
Marketable
securities |
|
|
106,146 |
|
|
|
74,667 |
|
Other current
assets |
|
|
23,027 |
|
|
|
19,822 |
|
Total current
assets |
|
|
405,282 |
|
|
|
359,824 |
|
Property, plant and
equipment, net |
|
|
118,152 |
|
|
|
124,330 |
|
Other assets |
|
|
5,609 |
|
|
|
4,955 |
|
Total noncurrent
assets |
|
|
123,761 |
|
|
|
129,285 |
|
Total
Assets |
|
$ |
529,043 |
|
|
$ |
489,109 |
|
Liabilities and
Stockholders’ Equity |
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
24,053 |
|
|
$ |
34,686 |
|
Dividends payable |
|
|
110,688 |
|
|
|
|
|
Other current
liabilities |
|
|
9,308 |
|
|
|
13,867 |
|
Total current
liabilities |
|
|
144,049 |
|
|
|
48,553 |
|
Deferred revenue –
long-term |
|
|
16,792 |
|
|
|
15,908 |
|
Other noncurrent
liabilities |
|
|
35,389 |
|
|
|
30,336 |
|
Total noncurrent
liabilities |
|
|
52,181 |
|
|
|
46,244 |
|
Total
liabilities |
|
|
196,230 |
|
|
|
94,797 |
|
Commitments and
contingencies: |
|
|
|
|
|
|
|
|
Preferred stock,
$0.0001 par value, 5,000,000 shares authorized, none issued and
outstanding |
|
|
- |
|
|
|
- |
|
Common stock, $0.0001
par value, 75,000,000 shares authorized, 43,749,970 and 43,715,832,
issued and outstanding as of December 31, 2016 and 2015,
respectively |
|
|
4 |
|
|
|
4 |
|
Accumulated other
comprehensive income |
|
|
3,540 |
|
|
|
2,055 |
|
Additional paid in
capital |
|
|
281,087 |
|
|
|
279,231 |
|
Retained earnings |
|
|
48,182 |
|
|
|
113,022 |
|
Total
Stockholders’ Equity |
|
|
332,813 |
|
|
|
394,312 |
|
Total
Liabilities and Stockholders’ Equity |
|
$ |
529,043 |
|
|
$ |
489,109 |
|
FutureFuel Corp. |
Condensed Consolidated Statements of Operations
and Comprehensive Income |
(Dollars in thousands, except per share
amounts) |
(Unaudited) |
|
|
|
Three months ended December 31: |
|
|
|
2016 |
|
|
2015 |
|
Revenue |
|
$ |
69,373 |
|
|
$ |
33,872 |
|
Cost of goods sold and
distribution |
|
|
51,859 |
|
|
|
4,359 |
|
Gross
profit |
|
|
17,514 |
|
|
|
29,513 |
|
Selling, general, and
administrative expenses |
|
|
2,135 |
|
|
|
1,811 |
|
Research and
development expenses |
|
|
602 |
|
|
|
618 |
|
|
|
|
2,737 |
|
|
|
2,429 |
|
Income from
operations |
|
|
14,777 |
|
|
|
27,084 |
|
Other income, net |
|
|
1,025 |
|
|
|
(51 |
) |
Income before income
taxes |
|
|
15,802 |
|
|
|
27,033 |
|
Benefit for income
taxes |
|
|
(2,878 |
) |
|
|
(2,614 |
) |
Net
income |
|
$ |
18,680 |
|
|
$ |
29,647 |
|
|
|
|
|
|
|
|
|
|
Earnings per common
share |
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.43 |
|
|
$ |
0.68 |
|
Diluted |
|
$ |
0.43 |
|
|
$ |
0.68 |
|
Weighted average shares
outstanding |
|
|
|
|
|
|
|
|
Basic |
|
|
43,595,456 |
|
|
|
43,473,416 |
|
Diluted |
|
|
43,600,386 |
|
|
|
43,509,199 |
|
|
|
|
|
|
|
|
|
|
Comprehensive
Income |
|
|
|
|
|
|
|
|
Net income |
|
$ |
18,680 |
|
|
$ |
29,647 |
|
Other comprehensive
income from unrealized |
|
|
|
|
|
|
|
|
net gains on
available-for-sale securities |
|
|
929 |
|
|
|
1,517 |
|
Income tax effect |
|
|
(326 |
) |
|
|
(556 |
) |
Total unrealized gains,
net of tax |
|
|
603 |
|
|
|
961 |
|
Comprehensive
income |
|
$ |
19,283 |
|
|
$ |
30,608 |
|
FutureFuel Corp. |
Condensed Consolidated Statements of Operations
and Comprehensive Income |
(Dollars in thousands, except per share
amounts) |
(Audited) |
|
|
|
Twelve months ended December 31: |
|
|
|
2016 |
|
|
2015 |
|
Revenue |
|
$ |
253,193 |
|
|
$ |
299,611 |
|
Cost of goods sold and
distribution |
|
|
206,335 |
|
|
|
242,565 |
|
Gross
profit |
|
|
46,858 |
|
|
|
57,046 |
|
Selling, general, and
administrative expenses |
|
|
7,620 |
|
|
|
7,334 |
|
Research and
development expenses |
|
|
2,715 |
|
|
|
2,741 |
|
|
|
|
10,335 |
|
|
|
10,075 |
|
Income from
operations |
|
|
36,523 |
|
|
|
46,971 |
|
Other income, net |
|
|
4,283 |
|
|
|
4,898 |
|
Income before income
taxes |
|
|
40,806 |
|
|
|
51,869 |
|
(Benefit)/provision for
income taxes |
|
|
(15,535 |
) |
|
|
5,448 |
|
Net
income |
|
$ |
56,341 |
|
|
$ |
46,421 |
|
|
|
|
|
|
|
|
|
|
Earnings per common
share |
|
|
|
|
|
|
|
|
Basic |
|
$ |
1.29 |
|
|
$ |
1.06 |
|
Diluted |
|
$ |
1.29 |
|
|
$ |
1.06 |
|
Weighted average shares
outstanding |
|
|
|
|
|
|
|
|
Basic |
|
|
43,542,785 |
|
|
|
43,432,149 |
|
Diluted |
|
|
43,547,538 |
|
|
|
43,445,730 |
|
|
|
|
|
|
|
|
|
|
Comprehensive
Income |
|
|
|
|
|
|
|
|
Net income |
|
$ |
56,341 |
|
|
$ |
46,421 |
|
Other comprehensive
income/(loss) from unrealized |
|
|
|
|
|
|
|
|
net gains/(losses) on
available-for-sale securities |
|
|
2,643 |
|
|
|
(3,518 |
) |
Income tax effect |
|
|
(1,158 |
) |
|
|
1,314 |
|
Total unrealized
gains/(losses), net of tax |
|
|
1,485 |
|
|
|
(2,204 |
) |
Comprehensive
income |
|
$ |
57,826 |
|
|
$ |
44,217 |
|
FutureFuel Corp. |
Consolidated Statements of Cash
Flows |
For the Years Ended December 31, 2016 and
2015 |
(Dollars in thousands) |
(Audited) |
|
|
|
2016 |
|
|
2015 |
|
Cash flows
provided by operating activities |
|
|
|
|
|
|
|
|
Net income |
|
$ |
56,341 |
|
|
$ |
46,421 |
|
Adjustments to
reconcile net income to net cash provided by operating
activities: |
|
|
|
|
|
|
|
|
Depreciation |
|
|
10,819 |
|
|
|
10,187 |
|
Amortization of
deferred financing costs |
|
|
144 |
|
|
|
- |
|
Benefit for deferred
income taxes |
|
|
(5,271 |
) |
|
|
(3,721 |
) |
Change in fair value of
derivative instruments |
|
|
3,621 |
|
|
|
(3,295 |
) |
Other than temporary
impairment of marketable securities |
|
|
2,184 |
|
|
|
606 |
|
Impairment of fixed
assets |
|
|
178 |
|
|
|
- |
|
Gain on the sale of
investments |
|
|
(843 |
) |
|
|
(713 |
) |
Stock based
compensation |
|
|
1,908 |
|
|
|
2,043 |
|
Losses on disposals of
fixed assets |
|
|
147 |
|
|
|
178 |
|
Noncash interest
expense |
|
|
27 |
|
|
|
26 |
|
Changes in operating
assets and liabilities: |
|
|
|
|
|
|
|
|
Accounts
receivable |
|
|
21,960 |
|
|
|
3,816 |
|
Accounts receivable –
related parties |
|
|
(375 |
) |
|
|
1,163 |
|
Inventory |
|
|
12,864 |
|
|
|
(19,604 |
) |
Income tax
receivable |
|
|
(6,394 |
) |
|
|
5,602 |
|
Prepaid expenses |
|
|
(52 |
) |
|
|
28 |
|
Prepaid expenses –
related party |
|
|
23 |
|
|
|
(35 |
) |
Accrued interest on
marketable securities |
|
|
(110 |
) |
|
|
30 |
|
Other assets |
|
|
(556 |
) |
|
|
(668 |
) |
Accounts payable |
|
|
(11,643 |
) |
|
|
4,056 |
|
Accounts payable –
related parties |
|
|
1,010 |
|
|
|
(2,668 |
) |
Accrued expenses and
other current liabilities |
|
|
(645 |
) |
|
|
(1,673 |
) |
Accrued expenses and
other current liabilities – related parties |
|
|
142 |
|
|
|
(46 |
) |
Deferred revenue |
|
|
3,734 |
|
|
|
721 |
|
Other noncurrent
liabilities |
|
|
1,762 |
|
|
|
(2,831 |
) |
Net cash
provided by operating activities |
|
|
90,975 |
|
|
|
39,623 |
|
Cash flows from
investing activities |
|
|
|
|
|
|
|
|
Collateralization of
derivative instruments |
|
|
(535 |
) |
|
|
1,239 |
|
Purchase of marketable
securities |
|
|
(60,664 |
) |
|
|
(39,136 |
) |
Proceeds from the sale
of marketable securities |
|
|
30,487 |
|
|
|
48,546 |
|
Proceeds from the sale
of fixed assets |
|
|
- |
|
|
|
6 |
|
Expenditures for
intangible assets |
|
|
- |
|
|
|
(1,408 |
) |
Capital
expenditures |
|
|
(4,495 |
) |
|
|
(7,222 |
) |
Net cash (used
in)/provided by investing activities |
|
|
(35,207 |
) |
|
|
2,025 |
|
Cash flows from
financing activities |
|
|
|
|
|
|
|
|
Minimum tax withholding
on stock options exercised and awards vested |
|
|
(128 |
) |
|
|
(120 |
) |
Excess tax benefits
associated with stock options and awards |
|
|
(137 |
) |
|
|
(344 |
) |
Deferred financing
costs |
|
|
- |
|
|
|
(721 |
) |
Proceeds from issuance
of stock |
|
|
213 |
|
|
|
- |
|
Payment of
dividends |
|
|
(10,493 |
) |
|
|
(10,493 |
) |
Net cash used
in financing activities |
|
|
(10,545 |
) |
|
|
(11,678 |
) |
Net change in cash and
cash equivalents |
|
|
45,223 |
|
|
|
29,970 |
|
Cash and cash
equivalents at beginning of period |
|
|
154,049 |
|
|
|
124,079 |
|
Cash and cash
equivalents at end of period |
|
$ |
199,272 |
|
|
$ |
154,049 |
|
|
|
|
|
|
|
|
|
|
Cash paid for
interest |
|
$ |
- |
|
|
$ |
- |
|
Cash paid for income
taxes |
|
$ |
987 |
|
|
$ |
13,381 |
|
Noncash items
incurred: |
|
|
|
|
|
|
|
|
Noncash
dividends declared |
|
$ |
110,688 |
|
|
$ |
- |
|
Noncash
items incurred for capital expenditures |
|
$ |
417 |
|
|
$ |
- |
|
|
FutureFuel Corp. |
Reconciliation of Non-GAAP Financial Measure
to Financial Measure |
(Dollars in thousands) |
(Audited) |
|
Reconciliation of Adjusted EBITDA to Net
Income |
|
|
|
Three months ended December
31: |
|
|
Twelve months ended December 31: |
|
|
|
2016 |
|
|
2015 |
|
|
2016 |
|
|
2015 |
|
Adjusted EBITDA |
|
$ |
21,805 |
|
|
$ |
25,352 |
|
|
$ |
55,261 |
|
|
$ |
50,097 |
|
Depreciation and
amortization |
|
|
(2,889 |
) |
|
|
(2,639 |
) |
|
|
(10,963 |
) |
|
|
(10,187 |
) |
Non-cash stock-based
compensation |
|
|
(477 |
) |
|
|
(612 |
) |
|
|
(1,908 |
) |
|
|
(2,043 |
) |
Interest and dividend
income |
|
|
1,706 |
|
|
|
1,098 |
|
|
|
6,152 |
|
|
|
5,106 |
|
Interest expense |
|
|
(7 |
) |
|
|
(43 |
) |
|
|
(27 |
) |
|
|
(134 |
) |
Losses on disposal of
property and equipment |
|
|
- |
|
|
|
(10 |
) |
|
|
(147 |
) |
|
|
(178 |
) |
(Losses)/gains on
derivative instruments |
|
|
(845 |
) |
|
|
4,982 |
|
|
|
(6,220 |
) |
|
|
9,101 |
|
(Losses)/gains on
marketable securities |
|
|
(613 |
) |
|
|
(1,095 |
) |
|
|
(1,340 |
) |
|
|
107 |
|
Income tax
benefit/(expense) |
|
|
2 |
|
|
|
2,614 |
|
|
|
15,535 |
|
|
|
(5,448 |
) |
Other |
|
|
(2 |
) |
|
|
|
|
|
|
(2 |
) |
|
|
|
|
Net income |
|
$ |
18,680 |
|
|
$ |
29,647 |
|
|
$ |
56,341 |
|
|
$ |
46,421 |
|
Reconciliation of Adjusted EBITDA to Net Cash Provided by
Operating Activities |
|
|
|
Twelve months ended December 31: |
|
|
|
2016 |
|
|
2015 |
|
Adjusted EBITDA |
|
$ |
55,261 |
|
|
$ |
50,097 |
|
Amortization of
deferred financing costs |
|
|
- |
|
|
|
(108 |
) |
Benefit for deferred
income taxes |
|
|
(5,271 |
) |
|
|
(3,721 |
) |
Impairment of fixed
assets |
|
|
178 |
|
|
|
- |
|
Interest and dividend
income |
|
|
6,152 |
|
|
|
5,106 |
|
Income tax
benefit/(expense) |
|
|
15,535 |
|
|
|
(5,448 |
) |
(Losses)/gains on
derivative instruments |
|
|
(6,220 |
) |
|
|
9,101 |
|
Change in fair value of
derivative instruments |
|
|
3,621 |
|
|
|
(3,295 |
) |
Changes in operating
assets and liabilities, net |
|
|
21,720 |
|
|
|
(12,109 |
) |
Other |
|
|
(1 |
) |
|
|
- |
|
Net cash provided by
operating activities |
|
$ |
90,975 |
|
|
$ |
39,623 |
|
FutureFuel Corp. |
Condensed Consolidated Segment
Income |
(Dollars in thousands) |
(Audited) |
|
|
|
Three months endedDecember
31: |
|
|
Twelve months endedDecember
31: |
|
|
|
2016 |
|
|
2015 |
|
|
2016 |
|
|
2015 |
|
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Custom chemicals |
|
$ |
22,519 |
|
|
$ |
23,539 |
|
|
$ |
82,667 |
|
|
$ |
108,160 |
|
Performance
chemicals |
|
|
4,458 |
|
|
|
3,808 |
|
|
|
18,240 |
|
|
|
17,688 |
|
Chemicals revenue |
|
$ |
26,977 |
|
|
$ |
27,347 |
|
|
$ |
100,907 |
|
|
$ |
125,848 |
|
Biofuels revenue |
|
|
42,396 |
|
|
|
6,525 |
|
|
|
152,286 |
|
|
|
173,763 |
|
Total Revenue |
|
$ |
69,373 |
|
|
$ |
33,872 |
|
|
$ |
253,193 |
|
|
$ |
299,611 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment gross
profit |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Chemicals |
|
$ |
9,332 |
|
|
$ |
7,293 |
|
|
$ |
32,055 |
|
|
$ |
35,452 |
|
Biofuels |
|
|
8,181 |
|
|
|
22,220 |
|
|
|
14,803 |
|
|
|
21,594 |
|
Total gross profit |
|
$ |
17,513 |
|
|
$ |
29,513 |
|
|
$ |
46,858 |
|
|
$ |
57,046 |
|
Corporate expenses |
|
|
(2,736 |
) |
|
|
(2,429 |
) |
|
|
(10,335 |
) |
|
|
(10,075 |
) |
Income before interest
and taxes |
|
$ |
14,777 |
|
|
$ |
27,084 |
|
|
$ |
36,523 |
|
|
$ |
46,971 |
|
Interest and other
income |
|
|
1,706 |
|
|
|
1,098 |
|
|
|
6,152 |
|
|
|
5,213 |
|
Interest and other
expense |
|
|
(681 |
) |
|
|
(1,149 |
) |
|
|
(1,869 |
) |
|
|
(315 |
) |
Benefit/(provision) for
income taxes |
|
|
2,878 |
|
|
|
2,614 |
|
|
|
15,535 |
|
|
|
(5,448 |
) |
Net income |
|
$ |
18,680 |
|
|
$ |
29,647 |
|
|
$ |
56,341 |
|
|
$ |
46,421 |
|
Depreciation is allocated to segment costs of
goods sold based on plant usage. The total assets and capital
expenditures of FutureFuel have not been allocated to individual
segments as large portions of these assets are shared to varying
degrees by each segment, causing such an allocation to be of little
value.
COMPANY CONTACT
FutureFuel Corp.
Tom McKinlay
(314) 854-8352
www.futurefuelcorporation.com
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