FT. LAUDERDALE, Florida,
February 14, 2012 /PRNewswire/ --
- CONFERENCE CALL SCHEDULED FOR
FEBRUARY 15, 2012 at 10:30 AM EST
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):
Excluding Non-recurring Items
For the Reversal For the For the
Three Executive of Three Three
Months Retirement Deferred Months Months
Ended and Tax Ended Ended
December Related Asset December December
31, 2011 Transition Valuation 31, 2011 31, 2010
(as reported) Expense Allowance (adjusted) (as reported)
(1,2,4,5)
Net
income $ 2,908 $ 1,158 $ (3,693) $ 373 $ 134
EBITDA(3) $ 199 $ 872 $ - $ 1,071 $ 929
Basic EPS $ 0.35 $ 0.13 $ (0.44) $ 0.04 $ 0.02
Diluted
EPS $ 0.33 $ 0.13 $ (0.42) $ 0.04 $ 0.02
Excluding Non-recurring Items
For the Reversal For the For the
Six Executive of Six Six
Months Retirement Deferred Months Months
Ended and Tax Ended Ended
December Related Asset December December
31, 2011 Transition Valuation 31, 2011 31, 2010
(as reported) Expense Allowance (adjusted) (as reported)
(1,2,4)
Net
income $ 3,728 $ 1,158 $ (3,693) $ 1,193 $ 248
EBITDA(3) $ 1,753 $ 872 $ - $ 2,625 $ 1,882
Basic EPS $ 0.44 $ 0.14 $ (0.44) $ 0.14 $ 0.03
Diluted
EPS $ 0.43 $ 0.13 $ (0.43) $ 0.13 $ 0.03
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)
For the Three Months For the Six Months
Ended December 31, Ended December 31,
2011 2010 2011 2010
Petroleum product
sales and service
revenues $ 63,364 $ 46,608 $ 130,091 $ 91,665
Petroleum product
taxes 7,193 5,956 14,671 11,960
Total revenues 70,557 52,564 144,762 103,625
Cost of petroleum
product sales and
service 59,275 42,820 121,022 84,039
Petroleum product
taxes 7,193 5,956 14,671 11,960
Total cost of sales 66,468 48,776 135,693 95,999
Gross profit 4,089 3,788 9,069 7,626
Selling, general
and administrative
expenses 3,583 3,374 7,474 6,866
Executive
retirement and
related transition
expense 1,158 - 1,158 -
Operating income
(loss) (652) 414 437 760
Interest expense (173) (232) (422) (455)
Interest and other
income 49 10 51 12
Income (loss)
before income taxes (776) 192 66 317
Income tax benefit
(expense) 3,684 (58) 3,662 (69)
Net income $ 2,908 $ 134 $ 3,728 $ 248
Basic and diluted
net income per
share computation:
Net income per
share attributable
to
common
shareholders:
Basic $ 0.35 $ 0.02 $ 0.44 $ 0.03
Diluted $ 0.33 $ 0.02 $ 0.43 $ 0.03
Weighted average
common shares
outstanding:
Basic 8,405 8,505 8,386 8,527
Diluted 8,720 8,640 8,633 8,661
EBITDA(3) (non-GAAP
measure) $ 199 $ 929 $ 1,753 $ 1,882
Gallons sold 19,023 17,025 38,796 34,937
Net margin per
gallon(6) $ 0.23 $ 0.23 $ 0.25 $ 0.23
Dividends declared
per common share $ 0.015 $ - $ 0.0275 $ -
(5) See "Non-GAAP Measures and
Definitions" below.
Condensed Consolidated Balance Sheet
All amounts in thousands of dollars
December 31, 2011 June 30, 2011
(Unaudited)
ASSETS
Current assets $ 22,623 $ 23,790
Deferred tax asset, long-term 3,738 -
Property, plant and equipment, net 8,685 7,083
Other assets, net 1,957 2,646
Total assets $ 37,003 $ 33,519
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities $ 13,940 $ 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):
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:
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
http://www.mobilefueling.com or by dialing 866-804-6920
(domestic) or +1-857-350-1666 (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 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
February 15, 2012 at 12:30 PM EST until midnight EST on
February 22, 2012, by dialing 888-286-8010 (domestic)
or +1-617-801-6888 (international), using Pass Code
27364111. 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 and our
Form 10-Q for the quarterly period ended December 31, 2011.
Contact: Michael S. Shore
Chief Financial Officer
+1-954-308-4200