FT. LAUDERDALE, Fla.,
Feb. 14, 2012 /PRNewswire/ -- SMF
ENERGY CORPORATION, (NASDAQ: FUEL) (the "Company"), a leading
logistics service company providing efficient, just in time
distribution of petroleum products and chemicals, today announced
its earnings and results for the three and six-months ended
December 31, 2011.
(Logo:
http://photos.prnewswire.com/prnh/20090513/SMFENERGYCORPLOGO)
During the three months ended December
31, 2011, the Company reported net income of $2.9 million, or $0.33 diluted earnings per share compared to
$134,000 or $0.02 diluted earnings per share, respectively
for the same period a year ago. This quarter's results reflect a
$3.7 million income tax benefit
partially offset by a $1.2 million
executive retirement and related transition expense.
Excluding those two items, the Company achieved adjusted net
income(1) of $373,000 for the quarter
and Adjusted EBITDA(2) of $1.1
million, which non-GAAP financial measures are defined and
reconciled below. These adjusted results are higher than reported
net income and EBITDA(3) for the same period a year ago by
$239,000, or 178%, and $142,000, or 15%, respectively.
The Company's operating results reflect the successful sales and
marketing efforts that have delivered net new customer
relationships and an overall 12% and 11% growth in gallons sold for
the second quarter and for the first six months of this fiscal
year, respectively, compared with the same period the prior
year.
As previously announced, on January 12,
2012, the Company's Board of Directors declared a quarterly
cash dividend of $0.01725 per share,
a 15% increase from the last fiscal quarter, payable to holders of
record of the Company's common stock at the close of business on
February 14, 2012, to be paid on
March 9, 2012.
(1,2,3) Adjusted net income, Adjusted EBITDA, and EBITDA are
non-GAAP financial measures within the meaning of SEC Regulation G.
See “Non-GAAP Measures and Definitions below.”
Steven R. Goldberg, Chief
Executive Officer and President, commented:
"The Company's performance continued seamlessly following the
executive transition that occurred during the quarter. We are
pleased that our results this period included double digit
increases in gallons sold and sales revenue compared with the same
quarter a year ago. As a result of our bottom line performance over
the past few years and our positive expectations going forward, we
recognized a portion of our formerly fully reserved deferred tax
asset as a $3.7 million income tax
benefit during the quarter. This resulted in a significant increase
in our net income and shareholders' equity as well as book value
per share. Our balance sheet is strong, our earnings
performance continues."
Goldberg continued,
"Another result of our positive earnings trend was our Board of
Directors declaring its third quarterly common stock dividend since
the end of the last fiscal year. Today's annualized dividend
rate of 6.9 cents per share
represents a 2% yield over our current thirty day average share
price. The Board now plans to review the amount of the
dividend at each quarterly meeting, to determine the appropriate
action for that quarter. While there are no guarantees of
future performance or common stock dividends, we continue to
believe that our quarterly common stock dividend program is
currently sustainable."
"Our management team is highly motivated to build on our solid
performance of the last few years. We are concentrating on
new initiatives to enhance profitability and drive growth,
resulting in higher shareholder value. To realize these
objectives, we are reviewing our cost structure and making changes
to improve efficiencies and propagate best practices, increasing
our sales and marketing focus to achieve greater penetration of
existing markets and customers (increasing "density"), and
selectively expanding into contiguous markets to leverage our
nearby presence and our ERP systems."
"As we look beyond the near term, we will consider what
strategic opportunities may be attractive, such as pursuing new
products or following large customers into new markets. We will
continue to invest in our fleet and in technology that provides us
with a competitive edge. We will, however, always maintain
the perspective of increasing shareholder value as the most
important element with which to inform our decisions."
"In sum, we are moving forward in a way that balances reward and
risk, capital investment and shareholder returns, and all
stakeholder interests."
Adjusted Net Income(1), Adjusted EBITDA(2), Adjusted Basic
EPS(4) and Adjusted Diluted EPS(5). Non-GAAP
Reconciliations. The reconciliation of
Adjusted Net income and Adjusted EBITDA and Adjusted Basic EPS for
the three and six months ended December 31,
2011 follows (in thousands, except per share data)
(See "Non-GAAP Measures and Definitions" below for
reconciliation of EBITDA(3) to net income) (unaudited):
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Excluding
Non-recurring Items
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For the
Three
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Executive
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Reversal
of
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For the
Three
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For the
Three
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Months
Ended
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Retirement
and
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Deferred
Tax
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Months
Ended
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Months
Ended
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December 31,
2011
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Related
Transition
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Asset
Valuation
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December 31,
2011
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December 31,
2010
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(as
reported)
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Expense
|
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Allowance
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(adjusted)
(1,2,4,5)
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(as
reported)
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Net income
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$
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2,908
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$
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1,158
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$
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(3,693)
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$
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373
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$
|
134
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EBITDA(3)
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$
|
199
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$
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872
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$
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-
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$
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1,071
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$
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929
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Basic EPS
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$
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0.35
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$
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0.13
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$
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(0.44)
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$
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0.04
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$
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0.02
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Diluted EPS
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$
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0.33
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$
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0.13
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$
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(0.42)
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$
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0.04
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$
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0.02
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Excluding
Non-recurring Items
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For the
Six
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Executive
|
|
Reversal
of
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For the
Six
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For the
Six
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Months
Ended
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Retirement
and
|
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Deferred
Tax
|
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Months
Ended
|
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Months
Ended
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|
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December 31,
2011
|
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Related
Transition
|
|
Asset
Valuation
|
|
December 31,
2011
|
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December 31,
2010
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(as
reported)
|
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Expense
|
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Allowance
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(adjusted)
(1,2,4)
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(as
reported)
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Net income
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$
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3,728
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$
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1,158
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$
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(3,693)
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$
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1,193
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$
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248
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EBITDA(3)
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$
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1,753
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$
|
872
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$
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-
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$
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2,625
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$
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1,882
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Basic EPS
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$
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0.44
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$
|
0.14
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$
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(0.44)
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$
|
0.14
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$
|
0.03
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Diluted EPS
|
$
|
0.43
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$
|
0.13
|
$
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(0.43)
|
$
|
0.13
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$
|
0.03
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The estimated realizable net deferred tax asset of approximately
$3.7 million recorded as of
December 31, 2011, is an estimate
that is subject to adjustment in the future based on the Company's
continuing evaluation of its potential ability to maximize the
asset under IRC Section 382.
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, weighted average common shares outstanding, gallons sold,
net margin per gallon and dividends declared per common
share
(Unaudited)
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For the
Three Months
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For the Six
Months
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Ended
December 31,
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Ended
December 31,
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2011
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2010
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2011
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2010
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Petroleum product sales and
service revenues
|
$
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63,364
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$
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46,608
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$
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130,091
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$
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91,665
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Petroleum product
taxes
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7,193
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5,956
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14,671
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11,960
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Total revenues
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70,557
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52,564
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144,762
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103,625
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Cost of petroleum product sales
and service
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59,275
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42,820
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121,022
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84,039
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|
Petroleum product
taxes
|
|
7,193
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|
5,956
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14,671
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|
11,960
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|
Total cost of sales
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66,468
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48,776
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135,693
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95,999
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|
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Gross profit
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4,089
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|
3,788
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9,069
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7,626
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Selling, general and
administrative expenses
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3,583
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|
3,374
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7,474
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|
6,866
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Executive retirement and related
transition expense
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1,158
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|
-
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1,158
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-
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Operating income
(loss)
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(652)
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|
414
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437
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|
760
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Interest expense
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(173)
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(232)
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(422)
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(455)
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Interest and other
income
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49
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10
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51
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12
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Income (loss) before income
taxes
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(776)
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|
192
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66
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317
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Income tax benefit
(expense)
|
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3,684
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(58)
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3,662
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(69)
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|
Net income
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$
|
2,908
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|
$
|
134
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|
$
|
3,728
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$
|
248
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Basic and diluted net income per
share computation:
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Net income per share
attributable to
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|
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common
shareholders:
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Basic
|
$
|
0.35
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|
$
|
0.02
|
|
|
$
|
0.44
|
|
$
|
0.03
|
|
Diluted
|
$
|
0.33
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|
$
|
0.02
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$
|
0.43
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$
|
0.03
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|
|
Weighted average common shares
outstanding:
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Basic
|
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8,405
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8,505
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8,386
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8,527
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Diluted
|
|
8,720
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8,640
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8,633
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8,661
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|
|
|
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|
|
EBITDA(3) (non-GAAP
measure)
|
$
|
199
|
|
$
|
929
|
|
|
$
|
1,753
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$
|
1,882
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|
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|
|
|
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|
Gallons sold
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19,023
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|
17,025
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|
38,796
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34,937
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Net margin per
gallon(6)
|
$
|
0.23
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$
|
0.23
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|
$
|
0.25
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$
|
0.23
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Dividends declared per common
share
|
$
|
0.015
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$
|
-
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$
|
0.0275
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$
|
-
|
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|
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|
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|
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|
|
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|
(5) See "Non-GAAP Measures and Definitions" below.
Condensed Consolidated Balance
Sheet
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All amounts in thousands of
dollars
|
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December 31,
2011
|
|
June 30,
2011
|
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(Unaudited)
|
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ASSETS
|
|
|
|
|
|
|
Current
assets
|
$
|
22,623
|
|
$
|
23,790
|
|
Deferred tax
asset, long-term
|
|
3,738
|
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|
-
|
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Property, plant
and equipment, net
|
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8,685
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|
|
7,083
|
|
Other assets,
net
|
|
1,957
|
|
|
2,646
|
|
Total assets
|
$
|
37,003
|
|
$
|
33,519
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|
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LIABILITIES AND SHAREHOLDERS'
EQUITY
|
|
|
|
|
|
|
Current
liabilities
|
$
|
13,940
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|
$
|
14,029
|
|
Long-term debt,
net and other liabilities
|
|
11,226
|
|
|
11,489
|
|
Shareholders'
equity
|
|
11,837
|
|
|
8,001
|
|
Total liabilities and shareholders' equity
|
$
|
37,003
|
|
$
|
33,519
|
|
|
|
|
|
|
|
|
|
Non-GAAP Measures and Definitions. The
following terms are used in this report to describe non-GAAP
financial measures within the meaning of Regulation G promulgated
by the Securities and Exchange Commission. Non-GAAP financial
measures should be considered in addition to, but not as a
substitute for, or superior to, other measures of financial
performance prepared in accordance with GAAP.
(1) Adjusted Net Income. Adjusted net income
is defined as net income excluding one-time items such as reversal
of a portion of the deferred tax asset valuation allowance and
executive retirement and related transition expense. We
believe that adjusted net income provides useful information to
investors because it excludes one-time charges or gains not related
to the core operating business activities, allowing meaningful
analysis of the performance of our operations.
(2) Adjusted EBITDA. Adjusted EBITDA is defined as earnings
before interest, taxes, depreciation, and amortization, and
one-time executive retirement and related transition expense.
We believe that Adjusted EBITDA provides useful information
to investors because it excludes transactions not related to the
core cash operating business activities and one-time transactions,
allowing meaningful analysis of the performance of our core cash
operations. The stock-based compensation amortization expense
is considered an amortization item to be excluded in the adjusted
EBITDA calculation.
(3) EBITDA. EBITDA is defined as earnings before interest,
taxes, depreciation, and amortization. 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. The stock-based compensation
amortization expense is considered an amortization item to be
excluded in the EBITDA calculation.
(4) Adjusted Basic EPS. Adjusted basic EPS
is defined as adjusted net income, which excludes one-time items
such as reversal of a portion of the deferred tax asset valuation
allowance and executive retirement and related transition expense,
divided by basic weighted average common shares outstanding.
We believe that adjusted basic EPS provides useful
information to investors because it excludes one-time charges or
gains not related to the core operating business activities,
allowing meaningful analysis of the performance of our
operations.
(5) Adjusted Diluted EPS. Adjusted Diluted
EPS is defined as adjusted net income, which excludes one-time
items such as reversal of a portion of the deferred tax asset
valuation allowance and executive retirement and related transition
expense, divided by diluted weighted average common shares
outstanding. We believe that adjusted diluted EPS provides
useful information to investors because it excludes one-time
charges or gains not related to the core operating business
activities, allowing meaningful analysis of the performance of our
operations.
(6) 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.
The reconciliation of EBITDA and Adjusted EBITDA to Net income
for the second quarters of fiscal 2012 and 2011 is as follows (in
thousands):
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For the
Three Months ended December 31,
|
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
Net income
|
$
|
2,908
|
|
$
|
134
|
|
Add back:
|
|
|
|
|
|
|
Interest
expense
|
|
173
|
|
|
232
|
|
Income tax (benefit)
expense
|
|
(3,684)
|
|
|
58
|
|
Depreciation and
amortization expense within:
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|
|
|
|
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Cost of
sales
|
|
252
|
|
|
180
|
|
Selling,
general and administrative expenses
|
|
224
|
|
|
276
|
|
Stock-based
compensation amortization expense
|
|
326
|
|
|
49
|
|
EBITDA
|
|
199
|
|
|
929
|
|
Executive retirement and related
transition expense
|
|
|
|
|
|
|
(excludes non-cash
stock-based compensation amortization)
|
|
872
|
|
|
-
|
|
Adjusted EBITDA
|
$
|
1,071
|
|
$
|
929
|
|
|
|
|
|
|
|
|
|
The reconciliation of EBITDA and Adjusted EBITDA to Net income
for the six months ended December 31,
2011 and 2010 is as follows (in thousands):
|
|
|
For the Six
Months Ended December 31,
|
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
Net income
|
$
|
3,728
|
|
$
|
248
|
|
Add back:
|
|
|
|
|
|
|
Interest
expense
|
|
422
|
|
|
455
|
|
Income tax (benefit)
expense
|
|
(3,662)
|
|
|
69
|
|
Depreciation and
amortization expense within:
|
|
|
|
|
|
|
Cost
of sales
|
|
442
|
|
|
446
|
|
Selling, general and administrative expenses
|
|
480
|
|
|
594
|
|
Stock-based compensation amortization expense
|
|
343
|
|
|
70
|
|
EBITDA
|
|
1,753
|
|
|
1,882
|
|
Executive retirement and related
transition expense
|
|
|
|
|
-
|
|
(excludes non-cash
stock-based compensation amortization)
|
|
872
|
|
|
-
|
|
Adjusted EBITDA
|
$
|
2,625
|
|
$
|
1,882
|
|
|
|
|
|
|
|
|
|
CONFERENCE CALL
Management will host a conference call on February 15, 2012 at 10:30
AM Eastern Standard Time ("EST") to further discuss the
results of the Company's second quarter ended December 31, 2011. Interested parties can
listen to the call live on the Internet through the Company's Web
site at www.mobilefueling.com or by dialing 866-804-6920
(domestic) or 857-350-1666 (international), using
Pass Code 83536741. 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
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 (www.streetevents.com). A telephone replay of
the conference call will be available from February 15, 2012 at 12:30
PM EST until midnight EST on February
22, 2012, by dialing 888-286-8010 (domestic)
or 617-801-6888 (international), using Pass
Code 27364111. A web archive will be available for 30
days at 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
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 and our Form 10-Q for the quarterly period ended
December 31, 2011.
Contact:
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Michael S. Shore
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Chief Financial
Officer
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954-308-4200
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SOURCE SMF Energy Corporation