FutureFuel Corp. (NYSE: FF) (“FutureFuel”), a manufacturer of
custom and performance chemicals and biofuels, today announced
financial results for the year ended December 31, 2017.
Fourth Quarter 2017 Financial
Highlights (all comparisons are with the fourth
quarter of 2016)
- Revenues were $75.3 million, up 8.5% from $69.4
million
- Adjusted EBITDA was $9.2 million, down 51.9% from $18.9
million
- Net income decreased to $15.9 million, or $0.36 per diluted
share, from $18.7 million, or $0.43 per diluted share.
2017 Financial
Highlights (all comparisons are with the year
ended December 31, 2016)
- Revenues were $275.0 million, up 8.6% from $253.2
million
- Adjusted EBITDA was $26.4 million, down 52.3% from $55.3
million
- Net income decreased to $23.5 million, or $0.54 per diluted
share, from $56.3 million, or $1.29 per diluted share.
“We achieved strong year-on-year revenue growth and I am
particularly pleased to see that occur in each of our
chemicals and biofuels segments. We are now well
positioned to capture a greater share of value in both the energy
and agro-chemical markets where we saw continued recovery
through 2017.
In our biofuels segment, we operated
prudently amidst the volatility caused by the absence of the
blenders' tax credit. We welcome its
belated reinstatement for 2017 and would urge Congress to
address a long-term extension to this program for 2018 and
beyond that
will incentivize further investment in our
industry. The counterveiling and anti-dumping duties levied on
biodiesel imports from Argentina and Indonesia in mid-2017 was also
a very positive move that substantially levels the playing field
for US domestic manufacturers." said Tom McKinlay, Chief
Operating Officer for FutureFuel Corp.
Subsequent Event
The Bipartisan Budget Act of 2018 was passed by Congress and
signed into law on February 9, 2018, retroactively reinstating the
blenders tax credit for 2017. As this act was passed into law
in 2018, FutureFuel will recognize the pretax benefit of $28.9
million in the first quarter of 2018.
2018 Regular Cash
Dividends
FutureFuel declared normal quarterly dividends
of $0.06 per share for 2018.
|
Three months ended December
31: |
|
|
|
|
|
Dollar |
|
% |
|
|
2017 |
|
|
2016 |
|
Change |
|
Change |
Revenues |
$ |
75,261 |
|
$ |
69,373 |
|
$ |
5,888 |
|
|
8.5 |
% |
Income from
operations |
$ |
3,838 |
|
$ |
14,777 |
|
$ |
(10,939 |
) |
|
(73.6 |
%) |
Net income |
$ |
15,947 |
|
$ |
18,680 |
|
$ |
(2,733 |
) |
|
(14.4 |
%) |
Earnings per common
share: |
|
|
|
|
|
|
|
Basic |
$ |
0.36 |
|
$ |
0.43 |
|
$ |
(0.07 |
) |
|
(16.3 |
%) |
Diluted |
$ |
0.36 |
|
$ |
0.43 |
|
$ |
(0.07 |
) |
|
(16.3 |
%) |
Capital expenditures
and intangibles (net of customer reimbursements and regulatory
grants) |
$ |
993 |
|
$ |
2,088 |
|
$ |
(1,095 |
) |
|
(52.4 |
%) |
Adjusted EBITDA |
$ |
9,152 |
|
$ |
18,933 |
|
$ |
(9,781 |
) |
|
(51.9 |
%) |
|
|
|
|
|
|
|
|
|
Twelve months ended December
31: |
|
|
|
|
|
Dollar |
|
% |
|
|
2017 |
|
|
2016 |
|
Change |
|
Change |
Revenues |
$ |
275,026 |
|
$ |
253,193 |
|
$ |
21,833 |
|
|
8.6 |
% |
Income from
operations |
$ |
9,887 |
|
$ |
36,523 |
|
$ |
(26,636 |
) |
|
(72.9 |
%) |
Net income |
$ |
23,511 |
|
$ |
56,341 |
|
$ |
(32,830 |
) |
|
(58.3 |
%) |
Earnings per common
share: |
|
|
|
|
|
|
|
Basic |
$ |
0.54 |
|
$ |
1.29 |
|
$ |
(0.75 |
) |
|
(58.3 |
%) |
Diluted |
$ |
0.54 |
|
$ |
1.29 |
|
$ |
(0.75 |
) |
|
(58.3 |
%) |
Capital expenditures
and intangibles (net of customer reimbursements and regulatory
grants) |
$ |
3,406 |
|
$ |
4,223 |
|
$ |
(817 |
) |
|
(19.0 |
%) |
Adjusted EBITDA |
$ |
26,353 |
|
$ |
55,261 |
|
$ |
(28,908 |
) |
|
(52.3 |
%) |
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)
2017 Financial and Business
Summary
Sales revenue increased 8.6% or $21,833 in 2017
compared to 2016. This increase primarily resulted from higher
selling prices in the biofuel and chemical segments and increased
chemical sales volumes primarily from the improved conditions in
the agrochemical and energy markets. The biofuels segment
suffered from lower sales volumes largely from the expiration of
the federal blenders’ tax credit (“BTC”).
Chemical sales revenue increased 4.4% or $4,479
in 2017 compared with 2016. Sales revenue for our custom chemicals
product line (chemicals produced for specific customers) totaled
$87,905, an increase of $5,238 from 2016. This increase was
primarily attributed to increased sales prices and volumes in the
agrochemical and energy markets, new customer product sales, and
increased amortization of deferred revenue which were partially
offset by reduced in sales volumes and price of our laundry
detergent additive. Our contract for sales of the laundry
detergent additive expires December 31, 2018 (unless terminated
earlier in accordance with the provisions of the purchase
agreement, as amended). We continue to pursue other customers for
this product. Performance chemicals revenue (comprised of
multi-customer products which are sold based on specification) was
$17,481 in 2017, a decrease of $759 from 2016. This decrease was
primarily from reduced sales volumes of our polymer modifier
products and specialty additives.
Biofuels sales revenue increased 11.4% or
$17,354 in 2017 compared to 2016 primarily from increased sales
prices of biodiesel, biodiesel blends, and RINs. The sale of
separated, internally generated RINs, comprised a larger component
of revenue in 2017 as compared to 2016. Partially offsetting
this increase was reduced sales volumes of biodiesel and biodiesel
blends and less common carrier pipeline sales. Pipeline sales
totaled $2,175 compared to $9,018 in 2016. Sales volumes of
biodiesel, biodiesel blends, and diesel were down given the
unfavorable market (without the BTC credit as compared to 2016
which had the credit in effect all year).
FutureFuel reported net income of $23,511, or
$0.54 per diluted share, for 2017, compared with net income of
$56,341, or $1.29 per diluted share in 2016. Adjusted EBITDA for
2017 totaled $26,353, down from $55,261 in 2016. A one-time
tax benefit of $12,066 was recognized in 2017 resulting from the
enactment of The Tax Cuts and Jobs Act of 2017. This benefit
was due to an anticipated lower tax rate for future reversals of
deferred tax liabilities.
Capital
Expenditures
Capital expenditures and intangibles were $3,581
in 2017, compared with $4,495 in 2016. FutureFuel was reimbursed
for a portion of these expenditures by certain customers as
summarized in the following table.
(Dollars in thousands) |
|
|
2017 |
|
|
|
2016 |
|
Cash paid for capital
expenditures and intangibles |
$ |
3,581 |
|
|
$ |
4,495 |
|
Cash received as
reimbursement of capital expenditures |
$ |
(175 |
) |
|
$ |
(272 |
) |
Cash paid, net of
reimbursement, for capital expenditures |
$ |
3,406 |
|
|
$ |
4,223 |
|
|
|
|
|
|
|
|
|
Cash and Cash Equivalents and Marketable
Securities
Cash and cash equivalents and marketable
securities totaled $235,326 as of December 31, 2017, compared with
$305,418 as of December 31, 2016. The majority of the
decrease in cash in the first nine months of 2017 was attributed to
a special cash dividend of $100,188 that was paid
on January 13, 2017.
About FutureFuel
FutureFuel is a leading manufacturer of
diversified chemical products, specialty chemical products, and
biofuel products. In its chemicals business, FutureFuel
manufactures specialty chemicals for specific customers (“custom
chemicals”) as well as multi-customer specialty chemicals
(“performance chemicals”). FutureFuel’s custom chemicals product
portfolio includes a bleach activator for a major detergent
manufacturer, proprietary herbicide and intermediates for major
life sciences companies, and chlorinated polyolefin adhesion
promoters and antioxidant precursors for a major chemical company.
FutureFuel’s performance chemicals product portfolio includes
polymer (nylon) modifiers and several small-volume specialty
chemicals 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, 2017 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,
2017 |
|
December 31,
2016 |
Assets |
|
|
|
Cash and
cash equivalents |
$ |
114,627 |
|
$ |
199,272 |
Accounts
receivable, inclusive of the blenders' tax credit of $0 and $5,495
and net of allowances for bad debt of $0 and $0, at December 31,
2017 and December 31, 2016, respectively |
|
22,138 |
|
|
24,744 |
Inventory |
|
43,754 |
|
|
52,093 |
Marketable securities |
|
120,699 |
|
|
106,146 |
Other
current assets |
|
9,140 |
|
|
23,027 |
Total
current assets |
|
310,358 |
|
|
405,282 |
Property,
plant and equipment, net |
|
109,735 |
|
|
118,152 |
Other
assets |
|
5,470 |
|
|
5,609 |
Total
noncurrent assets |
|
115,205 |
|
|
123,761 |
Total
Assets |
$ |
425,563 |
|
$ |
529,043 |
Liabilities and Stockholders’
Equity |
|
|
|
Accounts
payable |
$ |
19,579 |
|
$ |
24,053 |
Dividends
payable |
|
10,498 |
|
$ |
110,688 |
Other
current liabilities |
|
5,204 |
|
|
9,308 |
Total current liabilities |
|
35,281 |
|
|
144,049 |
Deferred
revenue – long-term |
|
16,522 |
|
|
16,792 |
Other
noncurrent liabilities |
|
22,164 |
|
|
35,389 |
Total noncurrent liabilities |
|
38,686 |
|
|
52,181 |
Total liabilities |
|
73,967 |
|
|
196,230 |
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, 43,741,670
and 43,749,970, issued and outstanding as of December 31, 2017 and
2016, respectively |
|
4 |
|
|
4 |
Accumulated other comprehensive income |
|
8,433 |
|
|
3,540 |
Additional paid in capital |
|
281,964 |
|
|
281,087 |
Retained
earnings |
|
61,195 |
|
|
48,182 |
Total Stockholders’ Equity |
|
351,596 |
|
|
332,813 |
Total
Liabilities and Stockholders’ Equity |
$ |
425,563 |
|
$ |
529,043 |
|
|
|
|
|
|
FutureFuel
Corp.Condensed Consolidated Statements of
Operations and Comprehensive
Income(Dollars in thousands,
except per share
amounts)(Unaudited) |
|
|
Three months ended December
31: |
|
|
2017 |
|
|
|
2016 |
|
Revenue |
$ |
75,261 |
|
|
$ |
69,373 |
|
Cost of goods sold and
distribution |
|
68,454 |
|
|
|
51,859 |
|
Gross profit |
|
6,807 |
|
|
|
17,514 |
|
Selling, general, and
administrative expenses |
|
1,845 |
|
|
|
2,135 |
|
Research and
development expenses |
|
1,124 |
|
|
|
602 |
|
|
|
2,969 |
|
|
|
2,737 |
|
Income
from operations |
|
3,838 |
|
|
|
14,777 |
|
Other income, net |
|
1,872 |
|
|
|
1,025 |
|
Income before income
taxes |
|
5,710 |
|
|
|
15,802 |
|
Benefit for income
taxes |
|
(10,237 |
) |
|
|
(2,878 |
) |
Net income |
$ |
15,947 |
|
|
$ |
18,680 |
|
|
|
|
|
Earnings per common
share |
|
|
|
Basic |
$ |
0.36 |
|
|
$ |
0.43 |
|
Diluted |
$ |
0.36 |
|
|
$ |
0.43 |
|
Weighted average shares
outstanding |
|
|
|
Basic |
|
43,716,670 |
|
|
|
43,595,456 |
|
Diluted |
|
43,728,058 |
|
|
|
43,600,386 |
|
|
|
|
|
Comprehensive Income |
|
|
|
Net income |
$ |
15,947 |
|
|
$ |
18,680 |
|
Other
comprehensive income/(loss) from unrealized |
|
|
|
net gains/(losses) on available-for-sale securities |
|
929 |
|
|
|
929 |
|
Income
tax effect |
|
(326 |
) |
|
|
(326 |
) |
Total
unrealized gains/(losses), net of tax |
|
603 |
|
|
|
603 |
|
Comprehensive income |
$ |
16,550 |
|
|
$ |
19,283 |
|
|
|
|
|
|
|
|
|
FutureFuel
Corp.Condensed Consolidated Statements of
Operations and Comprehensive
Income(Dollars in thousands,
except per share
amounts)(Audited) |
|
|
|
Twelve months ended December
31: |
|
|
|
2017 |
|
|
|
2016 |
|
Revenue |
|
$ |
275,026 |
|
|
$ |
253,193 |
|
Cost of goods sold and
distribution |
|
|
254,765 |
|
|
|
206,335 |
|
Gross profit |
|
|
20,261 |
|
|
|
46,858 |
|
Selling, general, and
administrative expenses |
|
|
6,715 |
|
|
|
7,620 |
|
Research and
development expenses |
|
|
3,659 |
|
|
|
2,715 |
|
|
|
|
10,374 |
|
|
|
10,335 |
|
Income
from operations |
|
|
9,887 |
|
|
|
36,523 |
|
Other income, net |
|
|
6,762 |
|
|
|
4,283 |
|
Income before income
taxes |
|
|
16,649 |
|
|
|
40,806 |
|
(Benefit)/provision for
income taxes |
|
|
(6,862 |
) |
|
|
(15,535 |
) |
Net income |
|
$ |
23,511 |
|
|
$ |
56,341 |
|
|
|
|
|
|
Earnings per common
share |
|
|
|
|
Basic |
|
$ |
0.54 |
|
|
$ |
1.29 |
|
Diluted |
|
$ |
0.54 |
|
|
$ |
1.29 |
|
Weighted average shares
outstanding |
|
|
|
|
Basic |
|
|
43,542,785 |
|
|
|
43,542,785 |
|
Diluted |
|
|
43,547,538 |
|
|
|
43,547,538 |
|
|
|
|
|
|
Comprehensive Income |
|
|
|
|
Net income |
|
$ |
23,511 |
|
|
$ |
56,341 |
|
Other
comprehensive income/(loss) from unrealized |
|
|
|
|
net gains/(losses) on available-for-sale securities |
|
|
7,535 |
|
|
|
2,643 |
|
Income tax
effect |
|
|
(2,642 |
) |
|
|
(1,158 |
) |
Total unrealized
gains/(losses), net of tax |
|
|
4,893 |
|
|
|
1,485 |
|
Comprehensive income |
|
$ |
28,404 |
|
|
$ |
57,826 |
|
|
|
|
|
|
|
|
|
|
FutureFuel
Corp.Consolidated Statements of Cash
FlowsFor
the Years Ended December 31, 2017
and 2016(Dollars in
thousands)(Audited) |
|
|
|
|
|
2017 |
|
|
|
2016 |
|
|
Cash
flows provided by operating activities |
|
|
|
|
Net
income |
$ |
23,511 |
|
|
$ |
56,341 |
|
|
Adjustments to reconcile net income to net cash provided by
operating activities: |
|
|
|
|
Depreciation |
|
11,617 |
|
|
|
10,819 |
|
|
Amortization of deferred financing costs |
|
145 |
|
|
|
144 |
|
|
Benefit
for deferred income taxes |
|
(13,657 |
) |
|
|
(5,271 |
) |
|
Change in
fair value of derivative instruments |
|
2,170 |
|
|
|
3,621 |
|
|
Other
than temporary impairment of marketable securities |
|
814 |
|
|
|
2,184 |
|
|
Impairment of fixed assets |
|
28 |
|
|
|
178 |
|
|
Gain on
the sale of investments |
|
(127 |
) |
|
|
(843 |
) |
|
Stock
based compensation |
|
998 |
|
|
|
1,908 |
|
|
Losses on
disposals of fixed assets |
|
195 |
|
|
|
147 |
|
|
Noncash
interest expense |
|
27 |
|
|
|
27 |
|
|
Changes
in operating assets and liabilities: |
|
|
|
|
Accounts
receivable |
|
2,386 |
|
|
|
21,960 |
|
|
Accounts
receivable – related parties |
|
220 |
|
|
|
(375 |
) |
|
Inventory |
|
8,339 |
|
|
|
12,864 |
|
|
Income
tax receivable |
|
13,571 |
|
|
|
(6,394 |
) |
|
Prepaid
expenses |
|
34 |
|
|
|
(52 |
) |
|
Prepaid
expenses – related party |
|
- |
|
|
|
23 |
|
|
Accrued
interest on marketable securities |
|
16 |
|
|
|
(110 |
) |
|
Other
assets |
|
(9 |
) |
|
|
(556 |
) |
|
Accounts
payable |
|
(4,403 |
) |
|
|
(11,643 |
) |
|
Accounts
payable – related parties |
|
(71 |
) |
|
|
1,010 |
|
|
Accrued
expenses and other current liabilities |
|
60 |
|
|
|
(645 |
) |
|
Accrued
expenses and other current liabilities – related parties |
|
(142 |
) |
|
|
142 |
|
|
Deferred
revenue |
|
(4,215 |
) |
|
|
3,734 |
|
|
Other
noncurrent liabilities |
|
(2,160 |
) |
|
|
1,762 |
|
|
Net cash provided by operating
activities |
|
39,347 |
|
|
|
90,975 |
|
|
Cash
flows from investing activities |
|
|
|
|
Collateralization of derivative instruments |
|
(1,901 |
) |
|
|
(535 |
) |
|
Purchase
of marketable securities |
|
(30,959 |
) |
|
|
(60,664 |
) |
|
Proceeds
from the sale of marketable securities |
|
23,254 |
|
|
|
30,487 |
|
|
Proceeds
from the sale of fixed assets |
|
4 |
|
|
|
- |
|
|
Expenditures for intangible assets |
|
- |
|
|
|
- |
|
|
Capital
expenditures |
|
(3,581 |
) |
|
|
(4,495 |
) |
|
Net cash provided by (used in) investing
activities |
|
(13,183 |
) |
|
|
(35,207 |
) |
|
Cash
flows from financing activities |
|
|
|
|
Minimum
tax withholding on stock options exercised and awards vested |
|
(121 |
) |
|
|
(128 |
) |
|
Excess
tax benefits associated with stock options and awards |
|
- |
|
|
|
(137 |
) |
|
Deferred
financing costs |
|
- |
|
|
|
- |
|
|
Proceeds
from issuance of stock |
|
- |
|
|
|
213 |
|
|
Payment
of dividends |
|
(110,688 |
) |
|
|
(10,493 |
) |
|
Net cash used in financing
activities |
|
(110,809 |
) |
|
|
(10,545 |
) |
|
Net change in cash and
cash equivalents |
|
(84,645 |
) |
|
|
45,223 |
|
|
Cash and cash
equivalents at beginning of period |
|
199,272 |
|
|
|
154,049 |
|
|
Cash
and cash equivalents at end of period |
$ |
114,627 |
|
|
$ |
199,272 |
|
|
|
|
|
|
|
Cash paid for
interest |
|
- |
|
|
|
- |
|
|
Cash paid for income
taxes |
|
55 |
|
|
|
987 |
|
|
Noncash items
incurred: |
|
|
|
|
Noncash
dividends declared |
|
10,498 |
|
|
|
110,688 |
|
|
Noncash
capital expenditures |
|
- |
|
|
|
471 |
|
|
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: |
|
|
|
2017 |
|
|
|
2016 |
|
|
|
2017 |
|
|
|
2016 |
|
Adjusted EBITDA |
|
$ |
9,152 |
|
|
$ |
21,805 |
|
|
$ |
26,353 |
|
|
$ |
55,261 |
|
Depreciation and
amortization |
|
|
(3,027 |
) |
|
|
(2,889 |
) |
|
|
(11,762 |
) |
|
|
(10,963 |
) |
Non-cash stock-based
compensation |
|
|
(120 |
) |
|
|
(477 |
) |
|
|
(998 |
) |
|
|
(1,908 |
) |
Interest and dividend
income |
|
|
2,130 |
|
|
|
1,706 |
|
|
|
7,809 |
|
|
|
6,152 |
|
Interest expense |
|
|
102 |
|
|
|
(7 |
) |
|
|
(27 |
) |
|
|
(27 |
) |
Losses on disposal of
property and equipment |
|
|
(50 |
) |
|
|
- |
|
|
|
(195 |
) |
|
|
(147 |
) |
Gains/(losses) on
derivative instruments |
|
|
(2,333 |
) |
|
|
(845 |
) |
|
|
(3,844 |
) |
|
|
(6,220 |
) |
Gains/(losses) on
marketable securities |
|
|
(144 |
) |
|
|
(613 |
) |
|
|
(687 |
) |
|
|
(1,340 |
) |
Income tax
benefit/(expense) |
|
|
10,237 |
|
|
|
2 |
|
|
|
6,862 |
|
|
|
15,535 |
|
Other |
|
|
- |
|
|
|
(2 |
) |
|
|
|
|
(2 |
) |
Net income |
|
$ |
15,947 |
|
|
$ |
18,680 |
|
|
$ |
23,511 |
|
|
$ |
56,341 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Adjusted EBITDA to Net Cash
Provided by Operating Activities |
|
Twelve months ended December
31: |
|
|
2017 |
|
|
|
2016 |
|
Adjusted EBITDA |
$ |
26,353 |
|
|
$ |
55,261 |
|
Benefit for deferred
income taxes |
|
(13,657 |
) |
|
|
(5,271 |
) |
Impairment of fixed
assets |
|
28 |
|
|
|
178 |
|
Interest and dividend
income |
|
7,809 |
|
|
|
6,152 |
|
Income tax
benefit/(expense) |
|
6,862 |
|
|
|
15,535 |
|
Losses on derivative
instruments |
|
(3,844 |
) |
|
|
(6,220 |
) |
Change in fair value of
derivative instruments |
|
2,170 |
|
|
|
3,621 |
|
Changes in operating
assets and liabilities, net |
|
13,626 |
|
|
|
21,720 |
|
Other |
|
- |
|
|
|
(1 |
) |
Net cash provided by
operating activities |
$ |
39,347 |
|
|
$ |
90,975 |
|
|
|
|
|
|
|
|
|
FutureFuel
Corp.Condensed Consolidated Segment
Income(Dollars in
thousands)(Audited) |
|
|
Three months ended December
31: |
|
Twelve months ended December
31: |
|
|
2017 |
|
|
|
2016 |
|
|
|
2017 |
|
|
|
2016 |
|
Revenue |
|
|
|
|
|
|
|
Custom
chemicals |
$ |
22,716 |
|
|
$ |
22,519 |
|
|
$ |
87,905 |
|
|
$ |
82,667 |
|
Performance
chemicals |
|
4,795 |
|
|
|
4,458 |
|
|
|
17,481 |
|
|
|
18,240 |
|
Chemicals revenue |
$ |
27,511 |
|
|
$ |
26,977 |
|
|
$ |
105,386 |
|
|
$ |
100,907 |
|
Biofuels revenue |
|
47,750 |
|
|
|
42,396 |
|
|
|
169,640 |
|
|
|
152,286 |
|
Total Revenue |
$ |
75,261 |
|
|
$ |
69,373 |
|
|
$ |
275,026 |
|
|
$ |
253,193 |
|
|
|
|
|
|
|
|
|
Segment gross
profit |
|
|
|
|
|
|
|
Chemicals |
$ |
7,615 |
|
|
$ |
9,332 |
|
|
$ |
28,016 |
|
|
$ |
32,055 |
|
Biofuels |
|
(808 |
) |
|
|
8,181 |
|
|
|
(7,755 |
) |
|
|
14,803 |
|
Total gross profit |
|
6,807 |
|
|
|
17,513 |
|
|
|
20,261 |
|
|
|
46,858 |
|
Corporate expenses |
|
(2,969 |
) |
|
|
(2,736 |
) |
|
|
(10,374 |
) |
|
|
(10,335 |
) |
Income before interest
and taxes |
|
3,838 |
|
|
|
14,777 |
|
|
|
9,887 |
|
|
|
36,523 |
|
Interest and other
income |
|
2,130 |
|
|
|
1,706 |
|
|
|
7,809 |
|
|
|
6,152 |
|
Interest and other
expense |
|
(258 |
) |
|
|
(681 |
) |
|
|
(1,047 |
) |
|
|
(1,869 |
) |
Benefit/(provision) for
income taxes |
|
10,237 |
|
|
|
2,878 |
|
|
|
6,862 |
|
|
|
15,535 |
|
Net income |
$ |
15,947 |
|
|
$ |
18,680 |
|
|
$ |
23,511 |
|
|
$ |
56,341 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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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