FT. LAUDERDALE, Fla.,
Nov. 15, 2010 /PRNewswire-FirstCall/
-- SMF ENERGY CORPORATION, (Nasdaq: FUEL) (the "Company"), a
leading energy logistics company providing efficient, just in time
distribution of petroleum products and chemicals, today announced
its earnings and results for the first quarter of fiscal year 2011
ended September 30, 2010.
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Net income was $114,000 in the
first quarter of fiscal year 2011, compared to a net income of
$20,000 in the same period of the
prior year, an improvement of $94,000. EBITDA(1) (a non-GAAP measure) was
$953,000 in the first quarter of
fiscal 2011 compared to $1.1 million
in the same period of the prior year, a decrease of $181,000. We increased our volumes by 6% to
17.9 million gallons during the first quarter this fiscal year from
16.9 million during the first quarter of fiscal 2010. The
increase in volumes is primarily the result of the expansion into
three new markets that we initiated during the second quarter of
last year.
Richard E. Gathright,
Chairman, Chief Executive Officer and President, commented:
"We have begun fiscal 2011 by continuing our positive trends in
financial performance. Even though the economic environment
continues to be challenging, we have increased our volumes by 6%
from a year ago. We attribute most of this new business to
the expansion of our business that we undertook in the second
quarter of fiscal 2010.
Our balance sheet continues to strengthen, as evidenced by our
debt to equity ratio of 1.5 this quarter ended September 30, 2010 compared to 1.7 at
June 30, 2010. During this
quarter, we reduced our long term debt, paying down an additional
$250,000 of our term loan. Our
fixed coverage ratio as of September 30,
2010 was 1.61, well above the 1.1 required by our bank
covenants.(1) Our trailing twelve months EBITDA(1) exceeded
the trailing twelve months fixed charges by $1.5 million at September
30, 2010.
We achieved net margin of $4.1
million and net margin per gallon of 22.9 cents during the first quarter of fiscal
2011, compared to $4.3 million, and
25.6 cents, respectively, a year ago.
The $230,000 decrease in net
margin was primarily due to higher repair and maintenance expenses
of our fleet, which is also the principal cause of the $181,000 decrease in EBITDA. These higher
expenses help explain why we have, since the end of the quarter,
made an additional investment in new trucks and equipment to
modernize and increase the size of our fleet. The new trucks
will create additional capacity, permitting us to expand in new or
existing markets, reduce our repair and maintenance costs, improve
fleet fuel economy and satisfy new emission standards.
During the first quarter of this fiscal year, we offset the
lower net margin with a decrease in selling, general and
administrative expenses, which were $347,000 lower than the prior year, due to the
lack of unamortized acquisition costs and lower legal expenses,
property taxes and other fees in fiscal 2011.
We began a stock repurchase program at the end of the first
quarter of 2011, purchasing 29,147 shares of our common shares in
the quarter for approximately $39,000. Our Board has authorized the
purchase of up to $200,000 of stock
per quarter and a total of $840,000
for the program. We have made additional stock purchases
during the second quarter of fiscal 2011 and intend to continue
doing so, subject to regulatory limitations, since we believe that
the cost, at current prices of our common shares, is a reasonable
and prudent allocation of our financial resources.
Although the refueling requirements of our existing customer
base remains soft, I am pleased to report we have minimal customer
turnover. This is testimony to our excellent attention to
customer service. The other positive news is our growing
number of new customer starts and the expansion of existing
customer business into new locations. Our pipeline of new and
expanded business indicates that our marketing efforts will have a
very positive impact on our performance in the coming months."
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(1) EBITDA, fixed charges
and fixed coverage ratio are non-GAAP measures within the meaning
of SEC Regulation G. See "Non-GAAP Measures and Definitions
below."
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Additional Highlights of First Quarter Fiscal Year 2011
vs. First Quarter Fiscal Year 2010
- Revenues were $51.1 million in
the first quarter of fiscal year 2011 as compared to $43.7 million in the same period of the prior
year, an increase of $7.4 million, or
17%, primarily as a result of a $4.6
million increase attributable to higher market prices of
petroleum products when compared to the prior year. The
number of gallons sold during the first quarter of fiscals 2011 and
2010 was 17.9 million and 16.9 million, respectively, an increase
of 1.0 million gallons, or 6%. This increase in gallons sold
is the result of the stabilization in the demand for our services
from existing customers and an increase in new customer business.
We remain optimistic that we can maintain or increase present
volume levels by continuing to attract new customers.
- Net income was $114,000 in the
first quarter of fiscal year 2011, compared to a net income of
$20,000 in the same period of the
prior year, an improvement of $94,000. The improvement was partially
attributable to lower selling, general and administrative expenses
of $347,000 due to the write-off of
$187,000 of unamortized acquisition
costs that we incurred last year as a result of the adoption of ASC
805, lower professional fees of $119,000 this year, and lower property taxes and
other fees of $37,000 when compared
to the same period of the prior year. Net income in the first
quarter of fiscal 2011 was also impacted by a $259,000 reduction in gross profit, partially
resulting from the increase in direct operating expenses,
reflecting an increase of $175,000 in
repairs and maintenance of our fleet and an increase of
$62,000 in employee expenses
attributable to additional operations management personnel.
- EBITDA (a non-GAAP measure) was $953,000 in the first quarter of fiscal 2011
compared to $1.1 million in the same
period of the prior year, a decrease of $181,000. The decrease in EBITDA was
principally due to the lower gross profit of $259,000, which was partially the result of
higher repairs and maintenance costs of our fleet, and an increase
in employee expenses. The decrease in EBITDA was partially
offset by the $347,000 decrease in
selling, general and administrative expenses.
Highlights of Results for Quarterly Periods ending
September 30, 2010 thru December 30, 2008
The following table portrays the financial trends for the
Company's eight most recent quarters:
All amounts in thousands of dollars, except net margin per
gallon
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For the
Three Months Ended,
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September
30,
|
|
June
30,
|
|
March
31,
|
|
December
31,
|
|
September
30,
|
|
June
30,
|
|
March
31,
|
|
December
31,
|
|
|
2010
|
|
2010
|
|
2010
|
|
2009
|
|
2009
|
|
2009
|
|
2009
|
|
2008
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
|
51,061
|
|
$
|
53,704
|
|
$
|
49,152
|
|
$
|
46,305
|
|
$
|
43,686
|
|
$
|
39,884
|
|
$
|
34,982
|
|
$
|
45,112
|
|
Gross profit
|
$
|
3,838
|
|
$
|
4,320
|
|
$
|
3,398
|
|
$
|
3,381
|
|
$
|
4,097
|
|
$
|
3,539
|
|
$
|
3,790
|
|
$
|
3,292
|
|
Selling, general and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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administrative
|
$
|
3,492
|
|
$
|
3,678
|
|
$
|
3,555
|
|
$
|
2,673
|
|
$
|
3,839
|
|
$
|
3,401
|
|
$
|
3,455
|
|
$
|
3,267
|
|
Operating income
(loss)
|
$
|
346
|
|
$
|
642
|
|
$
|
(157)
|
|
$
|
708
|
|
$
|
258
|
|
$
|
138
|
|
$
|
335
|
|
$
|
25
|
|
Interest expense and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
other income, net
|
$
|
(221)
|
|
$
|
(215)
|
|
$
|
(254)
|
|
$
|
(255)
|
|
$
|
(230)
|
|
$
|
(454)
|
|
$
|
(570)
|
|
$
|
(677)
|
|
Non-cash ASC 470-20
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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(formerly FAS No. 84)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
inducement on extinguishment
(1)
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
(1,651)
|
|
$
|
-
|
|
$
|
-
|
|
Gain on
extinguishment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
of promissory notes
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
27
|
|
$
|
-
|
|
$
|
-
|
|
Net income (loss)
|
$
|
114
|
|
$
|
419
|
|
$
|
(419)
|
|
$
|
445
|
|
$
|
20
|
|
$
|
(1,948)
|
|
$
|
(243)
|
|
$
|
(660)
|
|
Less: Non-cash write-off
of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
unamortized acquisition
costs
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
187
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
Less: Non-cash stock
options
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
repricing costs
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
93
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
Less: Non-cash ASC
470-20
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(formerly FAS No. 84)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
inducement on extinguishment
(1)
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
1,651
|
|
$
|
-
|
|
$
|
-
|
|
Adjusted net income
(loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
before non-cash,
non-recurring
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
charges (1)
|
$
|
114
|
|
$
|
419
|
|
$
|
(419)
|
|
$
|
445
|
|
$
|
300
|
|
$
|
(297)
|
|
$
|
(243)
|
|
$
|
(660)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA (1)
|
$
|
953
|
|
$
|
1,189
|
|
$
|
398
|
|
$
|
1,289
|
|
$
|
1,134
|
|
$
|
876
|
|
$
|
974
|
|
$
|
690
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net margin
|
$
|
4,103
|
|
$
|
4,529
|
|
$
|
3,616
|
|
$
|
3,609
|
|
$
|
4,333
|
|
$
|
3,795
|
|
$
|
4,027
|
|
$
|
3,534
|
|
Net
margin per gallon (1)
|
$
|
0.23
|
|
$
|
0.25
|
|
$
|
0.21
|
|
$
|
0.21
|
|
$
|
0.26
|
|
$
|
0.23
|
|
$
|
0.25
|
|
$
|
0.21
|
|
Gallons sold
|
|
17,912
|
|
|
18,385
|
|
|
17,382
|
|
|
16,956
|
|
|
16,945
|
|
|
16,709
|
|
|
16,041
|
|
|
16,602
|
|
|
|
(1) Non-GAAP measure. See
"Non-GAAP Measures and Definitions" below.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Measures and Definitions
EBITDA is defined as earnings before interest, taxes,
depreciation, and amortization, a non-GAAP financial measure within
the meaning of Regulation G promulgated by the Securities and
Exchange Commission. To the extent that gain and the non-cash
ASC 470-20 (formerly FAS No. 84) inducement on extinguishment of
promissory notes constitutes the recognition of previously
deferred interest or finance cost, it is considered interest
expense for the calculation of certain interest expense amounts.
Both stock-based compensation amortization expense and the
write-off of unamortized acquisition costs are considered
amortization items to be excluded in the EBITDA calculation.
We believe that EBITDA provides useful information to
investors because it excludes transactions not related to the core
cash operating business activities, allowing meaningful analysis of
the performance of our core cash operations.
Reconciliation of EBITDA to the Net income (loss)
(non-GAAP measure)
For Quarterly periods ending September 30, 2010 thru December 31, 2008
All amounts in thousands of dollars
|
|
|
For the
Three Months Ended,
|
|
|
September
30,
|
|
June
30,
|
|
March
31,
|
|
December
31,
|
|
September
30,
|
|
June
30,
|
|
March
31,
|
|
December
31,
|
|
|
2010
|
|
2010
|
|
2010
|
|
2009
|
|
2009
|
|
2009
|
|
2009
|
|
2008
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
$
|
114
|
|
$
|
419
|
|
$
|
(419)
|
|
$
|
445
|
|
$
|
20
|
|
$
|
(1,948)
|
|
$
|
(243)
|
|
$
|
(660)
|
|
Add back:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
223
|
|
|
227
|
|
|
260
|
|
|
261
|
|
|
230
|
|
|
545
|
|
|
575
|
|
|
680
|
|
Income tax expense
|
|
11
|
|
|
8
|
|
|
8
|
|
|
8
|
|
|
8
|
|
|
8
|
|
|
8
|
|
|
8
|
|
Depreciation and
amortization
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
expense
within:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
sales
|
|
266
|
|
|
208
|
|
|
218
|
|
|
228
|
|
|
236
|
|
|
254
|
|
|
239
|
|
|
242
|
|
Selling,
general and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
administrative expenses
|
|
318
|
|
|
316
|
|
|
316
|
|
|
316
|
|
|
320
|
|
|
344
|
|
|
334
|
|
|
342
|
|
Stock-based compensation
expense
|
|
21
|
|
|
11
|
|
|
15
|
|
|
31
|
|
|
133
|
|
|
49
|
|
|
61
|
|
|
78
|
|
Write-off of unamortized
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
acquisition
costs
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
187
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Non-cash ASC 470-20
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(formerly
FAS No. 84)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
inducement
on extinguishment
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
1,651
|
|
|
-
|
|
|
-
|
|
Gain on
extinguishment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
of promissory notes
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(27)
|
|
|
-
|
|
|
-
|
|
EBITDA
|
$
|
953
|
|
$
|
1,189
|
|
$
|
398
|
|
$
|
1,289
|
|
$
|
1,134
|
|
$
|
876
|
|
$
|
974
|
|
$
|
690
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income (loss) before non-cash, non-recurring
charges is a non-GAAP measure that demonstrates the economic
performance of the Company before the impact of charges that do not
reflect the ongoing performance of its operations, such as the
non-cash accounting charge of $1.7
million in the fourth quarter of fiscal 2009 resulting from
the Company's June 2009
recapitalization, non cash stock option repricing costs and the
write-off incurred in the first quarter of fiscal 2010 as the
result of a new accounting ruling was applied. We believe
that this is a meaningful non-GAAP representation of the ongoing
performance of the operations.
The following table reconciles Adjusted net income (loss) before
non-cash, non-recurring charges (non-GAAP measure) to the reported
Net income (loss) for each of the eight quarterly periods presented
above (in thousands):
|
|
|
For the
Three Months Ended,
|
|
|
September
30,
|
|
June
30,
|
|
March
31,
|
|
December
31,
|
|
September
30,
|
|
June
30,
|
|
March
31,
|
|
December
31,
|
|
|
2010
|
|
2010
|
|
2010
|
|
2009
|
|
2009
|
|
2009
|
|
2009
|
|
2008
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
$
|
114
|
|
$
|
419
|
|
$
|
(419)
|
|
$
|
445
|
|
$
|
20
|
|
$
|
(1,948)
|
|
$
|
(243)
|
|
$
|
(660)
|
|
Less: Non-cash write-off
of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unamortized
acquisition costs
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
187
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
Less: Non-cash stock
options
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
repricing
costs
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
93
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
Less: Non-cash ASC
470-20
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(formerly FAS No.
84)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
inducement on
extinguishment
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
1,651
|
|
$
|
-
|
|
$
|
-
|
|
Adjusted net income
(loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
before non-cash,
non-recurring
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
charges
|
$
|
114
|
|
$
|
419
|
|
$
|
(419)
|
|
$
|
445
|
|
$
|
300
|
|
$
|
(297)
|
|
$
|
(243)
|
|
$
|
(660)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed charges and fixed coverage ratio are non-GAAP measures
that are used by our principal lender and others to help assess the
Company's ability to satisfy cash payments other than those made
for operating activities. Fixed charges are comprised of
repayments of principal on debt, purchases of property and
equipment, cash paid for interest, payments for dividends and
repurchases of stock. The fixed charge coverage ratio is used
to measure the extent to which EBITDA exceeds the cash
requirements, or fixed charges, of the business. These
measurements are made on a rolling trailing twelve month basis.
The following table reconciles fixed charges and fixed coverage
ratio (non-GAAP measures) to the Net income (loss) for each of the
trailing twelve months ended September
30 (in thousands):
|
|
|
Trailing
Twelve Months Ended September 30,
|
|
|
2010
|
|
2009
|
|
|
|
|
|
|
|
|
Net income (loss)
|
$
|
559
|
|
$
|
(2,831)
|
|
Add back:
|
|
|
|
|
|
|
Interest
expense
|
|
971
|
|
|
2,030
|
|
Income tax
expense
|
|
35
|
|
|
32
|
|
Depreciation and
amortization expense within:
|
|
|
|
|
|
|
Cost
of sales
|
|
920
|
|
|
971
|
|
Selling, general and administrative expenses
|
|
1,266
|
|
|
1,340
|
|
Stock-based compensation amortization expense
|
|
78
|
|
|
321
|
|
Write-off of
unamortized acquisition costs
|
|
-
|
|
|
187
|
|
Non-cash ASC 470-20
(formerly FAS No. 84) inducement on
|
|
|
|
|
|
|
extinguishment
|
|
-
|
|
|
1,651
|
|
Gain on extinguishment of
promissory notes
|
|
-
|
|
|
(27)
|
|
EBITDA
|
$
|
3,829
|
|
$
|
3,674
|
|
|
|
|
|
|
|
|
Less fixed charges:
|
|
|
|
|
|
|
Principal payments on
term and promissory notes
|
|
1,000
|
|
|
5,160
|
|
Purchases of property and
equipment
|
|
459
|
|
|
187
|
|
Capital lease
payments
|
|
58
|
|
|
63
|
|
Cash paid for interest
|
|
809
|
|
|
1,452
|
|
Payment of
dividends
|
|
13
|
|
|
390
|
|
Principal and interest
payments made as a result of the Recapitalization
|
|
-
|
|
|
(5,045)
|
|
Repurchase of common
shares
|
|
39
|
|
|
-
|
|
Total fixed
charges
|
$
|
2,378
|
|
$
|
2,207
|
|
|
|
|
|
|
|
|
Difference (EBITDA less fixed
charges)
|
$
|
1,451
|
|
$
|
1,467
|
|
|
|
|
|
|
|
|
Fixed charge coverage ratio
(EBITDA divided by fixed charges)
|
|
1.61
|
|
|
1.66
|
|
|
|
|
|
|
|
|
|
Net margin per gallon is calculated by adding gross profit to
the cost of sales depreciation and amortization and dividing that
sum by the number of gallons sold.
Non-cash ASC 470-20 inducement on extinguishment is a non-cash
charge we incurred as a result of the June
29, 2009 Recapitalization. The Company extinguished a
portion of the August 2007 and the
September 2008 Notes ("the Notes")
through the issuance of approximate 1.2 million shares and
approximate 278,000 shares, respectively, at the negotiated price
of $1.71 per share, which was greater
than the $1.67 per share closing bid
price the day prior to the Recapitalization, but lower than the
conversion price applicable to the convertible debt instruments,
which resulted in the issuance of more shares in the exchange than
would have been issued upon a conversion. The prevalent
interpretation of ASC 470-20 is that an inducement occurs any time
when additional shares are issued in the extinguishment of
convertible debt regardless of the absence of an economic loss or
economic intent of the parties to the transaction. As a
result, irrespective of the economic reality of the transaction,
ASC 470-20 required the recording of a non-cash "conversion
inducement" charge of $1.7 million,
based on the difference between the approximate aggregate 471,000
common shares issuable to the applicable note holder under the
original conversion rights that existed upon a conversion and the
approximate 1.5 million common shares exchanged at $1.71 cents in the transaction that extinguished
all of the Notes. This non-cash charge is deemed a financing
expense to extinguish the Notes. To the extent that the ASC
470-20 inducement on extinguishment of promissory notes constitutes
the recognition of a finance cost, it is considered interest
expense for the calculation of EBITDA and other interest expense
amounts.
Selected Income Statement and Financial Data
The following tables present comparative financial data for
the periods noted:
All amounts in thousands of dollars, except price per
share and net margin per gallon, shares outstanding and gallons
sold
|
|
|
Three Months
Ended September 30,
|
|
|
|
2010
|
|
2009
|
|
|
|
|
|
|
|
|
|
|
Petroleum product sales and
service revenues
|
$
|
45,057
|
|
$
|
38,125
|
|
|
Petroleum product
taxes
|
|
6,004
|
|
|
5,561
|
|
|
Total revenues
|
|
51,061
|
|
|
43,686
|
|
|
|
|
|
|
|
|
|
|
Cost of petroleum product sales
and service
|
|
41,219
|
|
|
34,028
|
|
|
Petroleum product
taxes
|
|
6,004
|
|
|
5,561
|
|
|
Total cost of sales
|
|
47,223
|
|
|
39,589
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
3,838
|
|
|
4,097
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
|
3,492
|
|
|
3,839
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
346
|
|
|
258
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
(223)
|
|
|
(230)
|
|
|
Interest and other
income
|
|
2
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
|
125
|
|
|
28
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
|
|
(11)
|
|
|
(8)
|
|
|
Net income
|
$
|
114
|
|
$
|
20
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted net income per
share computation:
|
|
|
|
|
|
|
|
Net income per share
attributable to common shareholders:
|
|
|
|
|
|
|
|
Basic
|
|
0.01
|
|
|
0.00
|
|
|
Diluted
|
|
0.01
|
|
|
0.00
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares
outstanding:
|
|
|
|
|
|
|
|
Basic
|
|
8,549
|
|
|
8,248
|
|
|
Diluted
|
|
8,683
|
|
|
8,681
|
|
|
|
|
|
|
|
|
|
|
EBITDA (non-GAAP
measure)(1)
|
$
|
953
|
|
$
|
1,134
|
|
|
|
|
|
|
|
|
|
|
Gallons sold
|
|
17,912
|
|
|
16,945
|
|
|
|
|
|
|
|
|
|
|
Net margin
|
$
|
4,103
|
|
$
|
4,333
|
|
|
|
|
|
|
|
|
|
|
Net margin per gallon
(2)
|
$
|
0.23
|
|
$
|
0.26
|
|
|
|
|
|
|
|
|
|
|
|
(1) EBITDA is defined as
earnings before interest, taxes, depreciation, and amortization, a
non-GAAP financial measure within the meaning of Regulation G
promulgated by the Securities and Exchange Commission. To the
extent that gain and the non-cash ASC 470-20 (formerly FAS No. 84)
inducement on extinguishment of promissory notes constitutes the
recognition of previously deferred interest or finance cost, it is
considered interest expense for the calculation of certain interest
expense amounts. Both stock-based compensation amortization
expense and the write-off of unamortized acquisition costs are
considered amortization items to be excluded in the EBITDA
calculation. We believe that EBITDA provides useful
information to investors because it excludes transactions not
related to the core cash operating business activities. We
believe that excluding these transactions allows investors to
meaningfully trend and analyze the performance of our core cash
operations.
(2) Net margin
per gallon is calculated by adding gross profit to the cost of
sales depreciation and amortization and dividing that sum by the
number of gallons sold.
|
|
|
Condensed Consolidated Balance Sheet
|
|
All amounts in thousands of
dollars
|
|
|
|
|
|
September
30, 2010
|
|
June 30,
2010
|
|
ASSETS
|
|
|
|
|
|
|
Current
assets
|
$
|
18,663
|
|
$
|
20,033
|
|
Property, plant
and equipment, net
|
|
6,862
|
|
|
7,226
|
|
Other assets,
net
|
|
2,190
|
|
|
2,319
|
|
Total assets
|
$
|
27,715
|
|
$
|
29,578
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS'
EQUITY
|
|
|
|
|
|
|
Current
liabilities
|
$
|
16,683
|
|
$
|
18,388
|
|
Long-term debt,
net and other liabilities
|
|
3,880
|
|
|
4,134
|
|
Stockholders'
equity
|
|
7,152
|
|
|
7,056
|
|
Total liabilities and shareholders' equity
|
$
|
27,715
|
|
$
|
29,578
|
|
|
|
|
|
|
|
|
|
ABOUT SMF ENERGY CORPORATION (NASDAQ: FUEL)
The Company is a leading provider of petroleum product
distribution services, transportation logistics and emergency
response services to the trucking, manufacturing, construction,
shipping, utility, energy, chemical, telecommunications and
government services industries. The Company provides its
services and products through 34 locations in the eleven states of
Alabama, California, Florida, Georgia, Louisiana, Nevada, Mississippi, North
Carolina, South Carolina,
Tennessee and Texas. The broad range of services the
Company offers its customers includes commercial mobile and bulk
fueling; the packaging, distribution and sale of lubricants and
chemicals; integrated out-sourced fuel management; transportation
logistics and emergency response services. The Company's
fleet of custom specialized tank wagons, tractor-trailer
transports, box trucks and customized flatbed vehicles delivers
diesel fuel and gasoline to customers' locations on a regularly
scheduled or as needed basis, refueling vehicles and equipment,
re-supplying fixed-site and temporary bulk storage tanks, and
emergency power generation systems; and distributes a wide variety
of specialized petroleum products, lubricants and chemicals to our
customers. More information on the Company is available at
www.mobilefueling.com.
FORWARD LOOKING STATEMENTS
This press release includes "forward-looking statements" within
the meaning of the safe harbor provision of the Private Securities
Litigation Reform Act of 1995. For example, predictions or
statements of belief or expectation concerning the future
performance of the Company, the future trading prices of the
Company's common stock and the potential for further growth of the
Company are all "forward looking statements" which should not be
relied upon. Such forward-looking statements are based on the
current beliefs of the Company and its management based on
information known to them at this time. Because these
statements depend on various assumptions as to future events, they
should not be relied on by shareholders or other persons in
evaluating the Company. Although management believes that the
assumptions reflected in such forward-looking statements are
reasonable, actual results could differ materially from those
projected. In addition, there are numerous risks and
uncertainties that could cause actual results to differ from those
anticipated by the Company, including but not limited to those
cited in the "Risk Factors" section of the Company's Form 10-K for
the year ended June 30, 2010.
Contact:
|
Michael S. Shore
|
|
|
Chief Financial
Officer
|
|
|
954-308-4200
|
|
|
|
SOURCE SMF Energy Corporation