FT. LAUDERDALE, Florida,
September 28, 2011 /PRNewswire/
--
Conference Call
Scheduled for September 30, 2011
SMF ENERGY CORPORATION, (NASDAQ: FUEL) (the "Company"), a
leading energy logistics service company providing efficient, just
in time distribution of petroleum products and chemicals, today
announced its earnings and results for the fiscal year and fourth
quarter ended June 30, 2011.
(Logo:
http://photos.prnewswire.com/prnh/20090513/SMFENERGYCORPLOGO)
For the fiscal year ended June 30,
2011, the Company reported net income of $1.3 million or $0.15 per share, operating income of $2.4 million, and EBITDA(1), a non-GAAP measure,
of $4.5 million or $0.52 per share.
Richard E. Gathright,
Chairman, Chief Executive Officer and President, commented:
"Fiscal 2011 was another year of solid operating performance for
SMF Energy. We continued to increase net income and to
strengthen our balance sheet. We have begun paying cash
dividends to our common stock shareholders. Our success in
operating results and financial condition is not the result of
positive economic circumstances, but rather successful long term
planning, which had its roots in 2006, when we started investing
aggressively in our infrastructure.
"During fiscal 2011, we continued to grow our business while
improving our operating efficiencies. Our gallons sold
increased 2% over the prior fiscal year, primarily due to the
addition of new customers at existing locations. This growth
in volume provided efficiencies and yield that contributed to
improvements in our bottom-line performance substantially greater
than the 2% volume increase itself. Our positive growth trend
has accelerated into fiscal 2012 with the further addition of new
customers whose business is expected to add 7% to our annual
volumes in fiscal 2012.
"Our balance sheet was bolstered in fiscal 2011 through
contributions to equity from bottom line performance and the
further reduction of our existing term debt through the pay-down of
$1.0 million in principal during this
fiscal year. Our debt to equity ratio, which was 1.7 to 1.0
at June 30, 2010, improved to 1.5 to
1.0 at the end of fiscal 2011.
"In August 2011, we announced the
replacement of our common stock repurchase program with a common
stock dividend program, reflecting our commitment to providing an
immediate tangible return on investment to our shareholders.
The quarterly dividend program demonstrates our confidence in
the continuing prosperity of our business. The first dividend
declared by our Board of Directors was a $0.0125 per share quarterly payment on
October 14, 2011 to shareholders of
record as of September 28, 2011, for
an annualized yield of $0.05/share,
or $420,000, approximately 30% of our
fiscal 2011 earnings per share. The quarterly dividend will be
continually evaluated for opportunities to provide additional
return to our shareholders. While there are no guarantees of future
performance or dividends in this uncertain economy, we have an
established track record of overcoming adverse economic impacts and
believe that we have adopted a sustainable program that will yield
immediate value to our shareholders while supporting our long term
growth strategy.
"We are also pleased to announce the renewal of our credit
facility with our principal lender, Wells Fargo, N. A., for five
years maturing on September 27, 2016.
This renewal substantially lowers the interest rate on our
credit facility to a range between 2.25% to 2.50% plus the 90-day
Libor rate, with an estimated savings over the five-year term of up
to $1.36 million. The extended
loan facility also improves our working capital by $7.9 million due to the reclassification of our
revolving line of credit from current to long term debt; increases
our line of credit by $5 million to $25
million to support growth; and allows us to lock in at any
time the then current interest rate on up to $8.0 million of debt for the balance of the term.
The loan facility extension reflects the financial support
and the strong relationship that we have developed with our
principal lender."
Highlights of Fiscal Year 2011 vs. Fiscal Year
2010
- Revenues were $236.4 million in
fiscal year 2011, as compared to $192.8
million in fiscal year 2010, an increase of $43.6 million, or 23%. Higher market prices
for petroleum prices were the principal reason for $40.0 million of the fiscal 2011 increase in
revenues. The remaining $3.6 million
of increased revenues resulted from an additional 1 million gallons
sold during the year.
- Net income was $1.3 million in
fiscal 2011, compared to net income of $465,000 in fiscal 2010, an improvement of
approximately $800,000, or 172%.
The improvement in net income is primarily due to higher
gross profit of $1.5 million, offset
by higher SG&A of approximately $700,000, and higher income tax expense of
$194,000 due primarily to the
alternative minimum tax rules and state income taxes in states
where we already utilized available state tax net operating
losses.
- EBITDA(1), a non-GAAP measure, was $4.5
million in fiscal 2011, as compared to $4.0 million in fiscal 2010, an increase of
$445,000, or 11%. The
improvement in EBITDA(1) is primarily due to higher gross profit of
$1.5 million offset by higher
SG&A expenses. While our net income increased
$800,000 as explained above,
EBITDA(1) increased by $445,000 since
part of the increase in net income was due to reduction of
$490,000 in non-cash charges such as
depreciation and amortization expense, and the write-off of
unamortized acquisition costs incurred last year, which were offset
by an increase in income tax expense of $194,000.
Highlights of Fourth Quarter Fiscal Year 2011 vs. Fourth
Quarter Fiscal Year 2010
- Revenues were $71.1 million in
the fourth quarter of fiscal year 2011 as compared to $53.7 million in the same period of the prior
year, an increase of $17.4 million,
or 32%. Higher market prices for petroleum products were the
principal reason for $17.1 million of
the increase in revenues. The increase in revenues of
approximately $300,000 was due to an
80,000 increase in gallons sold compared to a year ago.
- Net income was $726,000 in the
fourth quarter of fiscal year 2011, compared to a net income of
$419,000 in the same period of the
prior year. The $307,000
increase in net income was primarily attributable to an increase of
$633,000 in gross profit.
- EBITDA(1), a non-GAAP measure, was $1.6
million in the fourth quarter of fiscal 2011 compared to
$1.2 million in the same period of
the prior year, an increase of approximately $400,000. The increase was primarily
attributed to higher gross profit this fiscal year.
(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."
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
For the Three Months
Ended June 30,
--------------
2011 2010
---- ----
Petroleum product sales and service
revenues $64,453 $47,549
Petroleum product taxes 6,691 6,155
Total revenues 71,144 53,704
------ ------
Cost of petroleum product sales and
service 59,500 43,229
Petroleum product taxes 6,691 6,155
----- -----
Total cost of sales 66,191 49,384
------ ------
Gross profit 4,953 4,320
Selling, general and administrative
expenses 3,918 3,678
----- -----
Operating income 1,035 642
Interest expense (238) (227)
Interest and other income 43 12
--- ---
Income before income taxes 840 427
Income tax expense (114) (8)
---- ---
Net income $726 $419
==== ====
Basic and diluted net income per
share computation:
Net income $726 $419
Less: Preferred stock dividends (13) (13)
--- ---
Net income attributable to common
shareholders $713 $406
==== ====
Net income per share attributable
to
common shareholders:
Basic $0.08 $0.05
===== =====
Diluted $0.08 $0.05
===== =====
Weighted average common shares
outstanding:
Basic 8,391 8,557
===== =====
Diluted 8,615 8,692
===== =====
EBITDA (non-GAAP measure) (1) $1,547 $1,189
====== ======
Gallons sold 18,465 18,385
====== ======
Net margin per gallon (2) $0.28 $0.25
Fiscal Year
Ended June 30,
--------------
2011 2010
---- ----
Petroleum product sales and service
revenues $211,639 $169,313
Petroleum product taxes 24,784 23,534
Total revenues 236,423 192,847
------- -------
Cost of petroleum product sales and
service 194,925 154,117
Petroleum product taxes 24,784 23,534
------ ------
Total cost of sales 219,709 177,651
------- -------
Gross profit 16,714 15,196
Selling, general and administrative
expenses 14,363 13,745
------ ------
Operating income 2,351 1,451
Interest expense (921) (978)
Interest and other income 59 24
--- ---
Income before income taxes 1,489 497
Income tax expense (226) (32)
---- ---
Net income $1,263 $465
====== ====
Basic and diluted net income per
share computation:
Net income $1,263 $465
Less: Preferred stock dividends (13) (13)
--- ---
Net income attributable to common
shareholders $1,250 $452
====== ====
Net income per share attributable
to
common shareholders:
Basic $0.15 $0.05
===== =====
Diluted $0.15 $0.05
===== =====
Weighted average common shares
outstanding:
Basic 8,484 8,480
===== =====
Diluted 8,708 8,692
===== =====
EBITDA (non-GAAP measure) (1) $4,455 $4,010
====== ======
Gallons sold 70,737 69,668
====== ======
Net margin per gallon (2) $0.25 $0.23
(1) Non-GAAP measure. See "Non-GAAP Measures and Definitions" below.
(2) See "Non-GAAP Measures and Definitions" below.
Condensed Consolidated Balance Sheet
All amounts in thousands of
dollars
June 30, 2011 June 30, 2010
------------- -------------
ASSETS
Current assets $23,790 $20,033
Property, plant and equipment,
net 7,083 7,226
Other assets, net 2,646 2,319
----- -----
Total assets $33,519 $29,578
======= =======
LIABILITIES AND SHAREHOLDERS'
EQUITY
Current liabilities $14,029 $18,388
Long-term debt, net and other
liabilities 11,489 4,134
Stockholders' equity 8,001 7,056
----- -----
Total liabilities and
shareholders' equity $33,519 $29,578
======= =======
Non-GAAP Measures and Definitions
(1) EBITDA. 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. 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. 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.
(2)Net Margin Per Gallon. Net margin per
gallon is one of the most important measures of our financial
performance. It is calculated by adding the cost of sales
depreciation and amortization to gross profit, and dividing that
sum by the number of gallons sold.
CONFERENCE CALL
Management will host a conference call on September 30, 2011 at 11:00 a.m. Eastern Time ("ET") to further
discuss the results of the Company's fiscal year and fourth quarter
ended June 30,
2011. Interested parties can listen to the call live on
the Internet through the Company's Web site at
http://www.mobilefueling.com or by dialing
866-730-5763(domestic) or +1-857-350-1587
(international), using Pass Code
232927210. Listeners should dial in to the call at
least 5-10 minutes prior to the start of the call or should go to
the Web site at least 15 minutes prior to the call to download and
install any necessary audio software. The Web cast is
also available through Thomson's investor
portals. Individual investors can listen to the call at
http://www.earnings.com, Thomson/CCBN's individual investor portal,
powered by StreetEvents. Institutional investors can
access the call via Thomson's password-protected event management
site, StreetEvents (http://www.streetevents.com). A
telephone replay of the conference call will be available from
September 30, 2011 at 2:00 p.m. ET until midnight ET on October 7, 2011, by dialing
888-286-8010 (domestic)
or +1-617-801-6888 (international),
using Pass Code 46337306. A web archive will be
available for 30 days at http://www.mobilefueling.com.
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
http://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 ability to make dividend payments,
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, 2011.
Contact: Michael S. Shore
Chief Financial Officer
+1-954-308-4200