Fourth Quarter 2018
Highlights:
Renewable Energy Group, Inc. (NASDAQ:REGI) (“REG” or the “Company”)
today announced its financial results for the fourth quarter and
full year ended December 31, 2018.
"REG generated $139 million of Adjusted EBITDA in 2018, an
outstanding result reflecting strong operational performance and a
favorable margin environment," said Cynthia (CJ) Warner, REG
President and Chief Executive Officer.
"In addition, we remain confident that Congress will reinstate
the BTC for 2018 which we estimate would add approximately $237
million to our 2018 Adjusted EBITDA," Warner added. "We are
excited about the growth opportunities that this level of
profitability would permit."
Revenues for the fourth quarter of 2018 were $519.8 million on
163.2 million gallons sold. Net income was $19.1 million, net
income from continuing operations attributable to common
stockholders was $30.4 million, and Adjusted EBITDA was $44.5
million. Total gallons sold increased by 6.8% compared to the
fourth quarter of 2017. See the table below for the
definition of Adjusted EBITDA and reconciliation to net income
(loss) determined in accordance with GAAP.
For the full year 2018, revenues were $2.4 billion on 649.2
million gallons sold. Net income was $292.3 million, net
income from continuing operations was $295.8 million and Adjusted
EBITDA was $138.9 million. In 2018, REG sold 62.5 million
more gallons and revenue increased by 10.6% compared to 2017.
See the table below for the definition of Adjusted EBITDA and
reconciliation to net income determined in accordance with
GAAP.
If the currently lapsed BTC is retroactively reinstated for 2018
on the same terms as in 2017, the Company estimates that its net
income and Adjusted EBITDA would each increase by approximately
$58.3 million for business conducted in the quarter ended December
31, 2018 and by approximately $237.0 million for business conducted
in the full year of 2018.
The Company’s Board of Directors has decided to pursue a sale of
the Company’s life sciences business unit. As a result, the
fourth quarter and year-end financial statements have been adjusted
to reflect the life sciences unit as discontinued operations for
all historical periods. The Company also recognized a $11.2
million impairment charge related to this business unit in the
fourth quarter of 2018.
Fourth Quarter 2018 Highlights
All figures refer to the quarter ended December 31, 2018,
unless otherwise noted. All comparisons are to the quarter ended
December 31, 2017, unless otherwise noted.
REG sold 163.2 million total gallons of fuel, an increase of
6.8% compared to the fourth quarter of 2017. REG produced
131.7 million gallons of biomass-based diesel during the quarter,
an increase of 10.6% from the fourth quarter of 2017.
Revenues decreased $56.2 million to $519.8 million, driven by
lower biomass-based diesel prices and lower RIN prices, partially
offset by the 6.8% increase in gallons sold. The average
price per gallon sold (including RINs, but excluding the allocation
of the 2017 BTC) for our biomass-based diesel was $2.82, a decrease
of 12.1% from the same period in 2017.
Operating income was $33.4 million compared to operating loss of
$51.0 million for the fourth quarter of 2017. The increase in
operating income was mainly driven by increased volumes and
improved margins, while the fourth quarter of 2017 was impacted by
a $48.5 million non-cash impairment charge for property, plant and
equipment.
Net income from continuing operations attributable to common
stockholders was $30.4 million, or $0.66 per share, on a fully
diluted basis. This compares to net loss from continuing
operations attributable to common stockholders of $13.9 million, or
$0.36 per share on a fully diluted basis, in the fourth quarter of
2017.
Net loss from discontinued operations attributable to common
stockholders for the fourth quarter of 2018 was $12.2 million or
$0.33 per fully diluted share compared to net loss from
discontinued operations attributable to common stockholders for the
fourth quarter of 2017 of $3.1 million or $0.08 per fully diluted
share. The Company recognized a $11.2 million impairment
charge related to the life sciences business unit in the fourth
quarter of 2018.
Net income was $19.1 million, which compares to a net loss of
$17.0 million in the fourth quarter of 2017.
Adjusted EBITDA was $44.5 million, compared to $6.5 million,
excluding the allocation of the 2017 BTC, in the fourth quarter
2017. After allocating the net benefit of the BTC to
applicable periods in 2017, Adjusted EBITDA was $58.9 million in
the fourth quarter of 2017.
At December 31, 2018, REG had cash and cash equivalents and
marketable securities of $174.5 million, a decrease of 17% during
the quarter. For the year, the Company's cash and cash
equivalents and marketable securities increased by $96.9 million
primarily as a result of the receipt of the 2017 BTC in 2018,
strong cash generated from operations, partially offset by cash
invested in plant upgrades, as well as the repayment of debt and
repurchase of common stock and convertible notes. At
December 31, 2018, accounts receivable were $74.6 million, a
decrease of $18.3 million from September 30, 2018. Inventory
was $168.9 million, an increase of $27.7 million during the fourth
quarter.
The table below summarizes REG’s results for Q4 2018:
REG Q4 2018 Results (dollars and gallons in
thousands, except per gallon data) |
|
4Q-2018 |
|
4Q-2017 |
|
Y/Y Change |
Total gallons sold |
163,159 |
|
|
152,832 |
|
|
6.8 |
% |
ASP per gallon, excluding 2017 BTC allocation |
$ |
2.82 |
|
|
$ |
3.21 |
|
|
(12.1 |
)% |
Total revenues |
$ |
519,761 |
|
|
$ |
575,960 |
|
|
(9.8 |
)% |
Net income (loss) attributable to common
stockholders |
$ |
30,448 |
|
|
$ |
(13,876 |
) |
|
N/M |
|
Adjusted EBITDA (1) |
$ |
44,503 |
|
|
$ |
58,857 |
|
|
(24.4 |
)% |
On a comparable basis: |
Adjusted EBITDA excluding BTC
allocation (1) |
$ |
44,503 |
|
|
$ |
6,519 |
|
|
582.7 |
% |
Adjusted EBITDA including BTC
allocation (1) (2) |
$ |
102,803 |
|
|
$ |
58,857 |
|
|
74.7 |
% |
(1) See Adjusted EBITDA Reconciliation
below.(2) The 2018 amount is an estimate based on the
assumption that the BTC is retroactively reinstated for 2018 on
the same terms as in 2017.
Full Year 2018 Results
All figures refer to the year ended December 31, 2018,
unless otherwise noted. All comparisons are to the year ended
December 31, 2017, unless otherwise noted.
REG sold 649.2 million total gallons, an increase of 10.6%
compared to 586.7 million gallons in 2017. The increase in
gallons sold is mostly attributable to volume increases in
biodiesel and renewable diesel of 27.1 million gallons and
petroleum diesel of 35.4 million gallons.
REG produced 501.7 million gallons, compared to 453.7 million
gallons in 2017. The growth in production primarily resulted
from our Geismar renewable diesel plant running at higher capacity
for the full year and our Ralston and Madison biodiesel plants
producing higher volumes following their fourth quarter 2017 down
time for expansion and repairs, respectively.
Revenues were $2.4 billion, an increase of $228.3 million, or
10.6%, versus 2017 revenues of $2.2 billion. The increase was
primarily due to the 2017 BTC that was earned during 2017, yet
recognized in the first quarter of 2018 when it was retroactively
reinstated, coupled with an 11% increase in gallons sold and
partially offset by lower RIN prices. The average
biomass-based diesel price per gallon (including RINs, but
excluding the allocation of 2017 BTC) sold by REG was $3.03,
compared to $3.06 in 2017.
Operating income was $312.4 million, compared to an operating
loss of $61.4 million in 2017. The improvement in operating
income for 2018 was due mainly to better margins resulting from
favorable feedstock pricing and the 2017 BTC received in 2018 as
well as higher volumes. The operating loss in 2017 was
impacted by a $48.5 million non-cash impairment charge for
property, plant and equipment.
Net income from continuing operations attributable to common
stockholders was $295.8 million or $6.78 per share on a fully
diluted basis for 2018. The 2018 income from continuing
operations attributable to common stockholders includes $216.1
million of the BTC that was earned during 2017, yet recognized in
the first quarter of 2018. This compares to a net loss from
continuing operations attributable to common stockholders of $66.3
million, or $1.71 per share on a fully diluted basis for 2017.
For the full year 2018, net loss from discontinued operations
was $11.3 million or $0.30 per fully diluted share compared to net
loss from discontinued operations of $12.8 million, or $0.33 per
fully diluted share, for 2017.
Net income was $292.3 million, which compares to a net loss of
$79.1 million for 2017.
Adjusted EBITDA was $138.9 million, compared to $25.3 million in
2017, resulting in Adjusted EBITDA margins of 5.8% and 1.2% for
2018 and 2017, respectively. After reallocating the net
benefit of the BTC to applicable periods in 2017, Adjusted EBITDA
was $230.2 million for 2017.
The table below summarizes the quarterly and year end results
for 2018 and 2017:
REG Annual Results
Summary(dollars and gallons in thousands except
per gallon data) |
|
1Q |
|
2Q |
|
3Q |
|
4Q |
|
Year |
Gallons sold 2018 |
135,254 |
|
|
171,943 |
|
|
178,798 |
|
|
163,159 |
|
|
649,154 |
|
Gallons sold 2017 |
122,121 |
|
|
160,219 |
|
|
151,521 |
|
|
152,832 |
|
|
586,693 |
|
Y/Y Change |
10.8 |
% |
|
7.3 |
% |
|
18.0 |
% |
|
6.8 |
% |
|
10.6 |
% |
|
|
|
|
|
|
|
|
|
|
ASP per
gallon 2018, excluding the BTC |
$ |
3.18 |
|
|
$ |
3.11 |
|
|
$ |
3.03 |
|
|
$ |
2.82 |
|
|
$ |
3.03 |
|
ASP per gallon 2017, excluding the BTC |
$ |
2.94 |
|
|
$ |
2.86 |
|
|
$ |
3.21 |
|
|
$ |
3.21 |
|
|
$ |
3.06 |
|
Y/Y Change |
8.2 |
% |
|
8.7 |
% |
|
(5.6 |
)% |
|
(12.1 |
)% |
|
(1.0 |
)% |
|
|
|
|
|
|
|
|
|
|
Total revenues 2018 |
$ |
688,002 |
|
|
$ |
578,900 |
|
|
$ |
596,324 |
|
|
$ |
519,761 |
|
|
$ |
2,382,987 |
|
Total revenues 2017 |
$ |
418,361 |
|
|
$ |
534,602 |
|
|
$ |
625,732 |
|
|
$ |
575,960 |
|
|
$ |
2,154,655 |
|
Y/Y Change |
64.5 |
% |
|
8.3 |
% |
|
(4.7 |
)% |
|
(9.8 |
)% |
|
10.6 |
% |
|
|
|
|
|
|
|
|
|
|
Net income attributable to common stockholders 2018 |
$ |
212,608 |
|
|
$ |
28,277 |
|
|
$ |
24,799 |
|
|
$ |
30,448 |
|
|
$ |
295,804 |
|
Net loss attributable to common stockholders 2017 |
$ |
(12,106 |
) |
|
$ |
(31,884 |
) |
|
$ |
(8,413 |
) |
|
$ |
(13,876 |
) |
|
$ |
(66,279 |
) |
Y/Y Change |
N/M |
|
N/M |
|
N/M |
|
N/M |
|
N/M |
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA 2018 (1) |
$ |
17,474 |
|
|
$ |
42,308 |
|
|
$ |
34,588 |
|
|
$ |
44,503 |
|
|
$ |
138,873 |
|
Adjusted EBITDA 2017, excluding 2017 BTC
allocation(1) |
$ |
604 |
|
|
$ |
19,703 |
|
|
$ |
(1,540 |
) |
|
$ |
6,519 |
|
|
$ |
25,286 |
|
Y/Y Change |
2,793.0 |
% |
|
114.7 |
% |
|
N/M |
|
582.7 |
% |
|
449.2 |
% |
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA margin 2018 (1) (2) |
2.5 |
% |
|
7.3 |
% |
|
5.8 |
% |
|
8.6 |
% |
|
5.8 |
% |
Adjusted EBITDA margin 2017, excluding 2017 BTC (1) (2) |
0.1 |
% |
|
3.7 |
% |
|
(0.2 |
)% |
|
1.1 |
% |
|
1.2 |
% |
Adjusted EBITDA 2018(1) including estimated 2018 BTC
allocation(3) |
$ |
59,974 |
|
|
$ |
108,508 |
|
|
$ |
104,588 |
|
|
$ |
102,803 |
|
|
$ |
375,873 |
|
Adjusted EBITDA 2017, including 2017 BTC allocation(1) |
$ |
37,332 |
|
|
$ |
79,068 |
|
|
$ |
54,965 |
|
|
$ |
58,857 |
|
|
$ |
230,222 |
|
Adjusted EBITDA margin 2018, (1) (2) including
estimated 2018 BTC allocation (3) |
8.7 |
% |
|
18.7 |
% |
|
17.5 |
% |
|
19.8 |
% |
|
15.8 |
% |
Adjusted EBITDA margin 2017, excluding 2017 BTC (1) (2) |
8.9 |
% |
|
14.8 |
% |
|
8.8 |
% |
|
10.2 |
% |
|
10.7 |
% |
(1) See Adjusted EBITDA Reconciliation
below.(2) Adjusted EBITDA margin represents Adjusted
EBITDA divided by Total Revenues.(3) The 2018 amount is an
estimate based on the assumption that the BTC is retroactively
reinstated for 2018 on the same terms as in 2017.
Adjusted EBITDA Reconciliation
The Company uses earnings before interest, taxes, depreciation
and amortization, adjusted for certain additional items, identified
in the table below, or Adjusted EBITDA, as a supplemental
performance measure. Adjusted EBITDA is presented in order to
assist investors in analyzing performance across reporting periods
on a consistent basis by excluding items that are not believed to
be indicative of core operating performance. Adjusted EBITDA
is used by the Company to evaluate, assess and benchmark financial
performance on a consistent and a comparable basis and as a factor
in determining incentive compensation for company executives.
The following table sets forth Adjusted EBITDA for the periods
presented, as well as a reconciliation to net income (loss)
determined in accordance with GAAP for the applicable period:
(In thousands) |
|
|
|
|
|
|
|
|
Year ended December 31, |
|
|
|
|
|
|
|
|
|
Year ended December 31, |
|
1Q-2018 |
|
2Q-2018 |
|
3Q-2018 |
|
4Q-2018 |
|
2018 |
|
1Q-2017 |
|
2Q-2017 |
|
3Q-2017 |
|
4Q-2017 |
|
2017 |
Net income
(loss) attributable to the Company |
$ |
214,389 |
|
|
$ |
33,850 |
|
|
$ |
25,003 |
|
|
$ |
19,074 |
|
|
$ |
292,316 |
|
|
$ |
(15,914 |
) |
|
$ |
(34,809 |
) |
|
$ |
(11,373 |
) |
|
$ |
(16,983 |
) |
|
$ |
(79,079 |
) |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense |
4,651 |
|
|
4,925 |
|
|
4,003 |
|
|
3,955 |
|
|
17,534 |
|
|
4,536 |
|
|
4,479 |
|
|
4,725 |
|
|
5,015 |
|
|
18,755 |
|
Income
tax (benefit) expense |
(1,203 |
) |
|
3,835 |
|
|
854 |
|
|
2,385 |
|
|
5,871 |
|
|
1,075 |
|
|
1,960 |
|
|
(115 |
) |
|
(33,410 |
) |
|
(30,490 |
) |
Depreciation from continuing and discontinued operations |
8,859 |
|
|
9,124 |
|
|
9,097 |
|
|
9,724 |
|
|
36,804 |
|
|
8,423 |
|
|
8,523 |
|
|
8,639 |
|
|
8,698 |
|
|
34,283 |
|
Amortization from continuing and discontinued operations |
308 |
|
|
310 |
|
|
318 |
|
|
311 |
|
|
1,247 |
|
|
127 |
|
|
149 |
|
|
307 |
|
|
305 |
|
|
888 |
|
EBITDA |
227,004 |
|
|
52,044 |
|
|
39,275 |
|
|
35,449 |
|
|
353,772 |
|
|
(1,753 |
) |
|
(19,698 |
) |
|
2,183 |
|
|
(36,375 |
) |
|
(55,643 |
) |
Gain on involuntary conversion |
(4,000 |
) |
|
(454 |
) |
|
— |
|
|
(3 |
) |
|
(4,457 |
) |
|
— |
|
|
— |
|
|
(942 |
) |
|
(4,387 |
) |
|
(5,329 |
) |
Gain on sale of assets |
(990 |
) |
|
— |
|
|
(13 |
) |
|
(2 |
) |
|
(1,005 |
) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Change in
fair value of convertible debt conversion liability |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
172 |
|
|
32,546 |
|
|
(8,560 |
) |
|
(5,325 |
) |
|
18,833 |
|
Change in fair value of
contingent consideration from continuing
and discontinued operations |
(1,540 |
) |
|
(7,129 |
) |
|
(4,566 |
) |
|
444 |
|
|
(12,791 |
) |
|
589 |
|
|
(24 |
) |
|
1,433 |
|
|
486 |
|
|
2,484 |
|
Gain
(loss) on debt extinguishment |
232 |
|
|
(2,337 |
) |
|
(788 |
) |
|
(3,404 |
) |
|
(6,297 |
) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Other
income (expense), net |
(222 |
) |
|
(2,066 |
) |
|
(486 |
) |
|
(1,243 |
) |
|
(4,017 |
) |
|
320 |
|
|
(32 |
) |
|
(12 |
) |
|
742 |
|
|
1,018 |
|
Impairment of assets |
— |
|
|
— |
|
|
— |
|
|
879 |
|
|
879 |
|
|
— |
|
|
1,341 |
|
|
— |
|
|
48,532 |
|
|
49,873 |
|
Impairment loss on assets classified as held for sale |
— |
|
|
— |
|
|
— |
|
|
11,226 |
|
|
11,226 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Loss on
the Geismar lease termination |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
3,967 |
|
|
— |
|
|
— |
|
|
3,967 |
|
Straight-line lease expense |
(33 |
) |
|
(3 |
) |
|
(61 |
) |
|
(31 |
) |
|
(128 |
) |
|
(32 |
) |
|
(85 |
) |
|
(85 |
) |
|
(35 |
) |
|
(237 |
) |
Executive
severance |
165 |
|
|
50 |
|
|
— |
|
|
— |
|
|
215 |
|
|
— |
|
|
— |
|
|
2,420 |
|
|
991 |
|
|
3,411 |
|
Non-cash
stock compensation |
1,794 |
|
|
2,203 |
|
|
1,227 |
|
|
1,188 |
|
|
6,412 |
|
|
1,308 |
|
|
1,688 |
|
|
2,023 |
|
|
1,890 |
|
|
6,909 |
|
Adjusted
EBITDA excluding 2017 BTC allocation |
$ |
222,410 |
|
|
$ |
42,308 |
|
|
$ |
34,588 |
|
|
$ |
44,503 |
|
|
$ |
343,809 |
|
|
$ |
604 |
|
|
$ |
19,703 |
|
|
$ |
(1,540 |
) |
|
$ |
6,519 |
|
|
$ |
25,286 |
|
Biodiesel tax credit (1) |
(204,936 |
) |
|
— |
|
|
— |
|
|
— |
|
|
(204,936 |
) |
|
36,728 |
|
|
59,365 |
|
|
56,505 |
|
|
52,338 |
|
|
204,936 |
|
Adjusted
EBITDA |
$ |
17,474 |
|
|
$ |
42,308 |
|
|
$ |
34,588 |
|
|
$ |
44,503 |
|
|
$ |
138,873 |
|
|
$ |
37,332 |
|
|
$ |
79,068 |
|
|
$ |
54,965 |
|
|
$ |
58,857 |
|
|
$ |
230,222 |
|
(1) |
|
|
On February 9, 2018, the
BTC was retroactively reinstated for the 2017 calendar year.
The retroactive credit for 2017 resulted in a net benefit to us
that was recognized in our GAAP financial statements for the
quarter ending March 31, 2018. However, because this credit
relates to the 2017 operating performance, our presentation of
Adjusted EBITDA reflects the allocation of the net benefit to each
of the four quarters of 2017 based upon gallons sold in the
quarter. |
|
|
|
|
Adjusted EBITDA is a supplemental performance measure that is
not required by, or presented in accordance with, generally
accepted accounting principles, or GAAP. Adjusted EBITDA
should not be considered as an alternative to net income or any
other performance measure derived in accordance with GAAP, or as an
alternative to cash flows from operating activities or a measure of
liquidity or profitability. Adjusted EBITDA has limitations
as an analytical tool, and should not be considered in isolation,
or as a substitute for any of the results as reported under GAAP.
Some of these limitations are:
- Adjusted EBITDA does not reflect cash expenditures or the
impact of certain cash clauses that the Company considers not to be
an indication of ongoing operations;
- Adjusted EBITDA does not reflect changes in, or cash
requirements for, working capital requirements;
- Adjusted EBITDA does not reflect the interest expense, or the
cash requirements necessary to service interest or principal
payments, on indebtedness;
- Although depreciation and amortization are non-cash charges,
the assets being depreciated and amortized will often have to be
replaced in the future, and Adjusted EBITDA does not reflect cash
requirements for such replacements;
- Stock-based compensation expense is an important element of the
Company’s long term incentive compensation program, although the
Company has excluded it as an expense when evaluating our operating
performance; and
- Other companies, including other companies in the same
industry, may calculate these measures differently, limiting their
usefulness as a comparative measure.
About Renewable Energy Group
Renewable Energy Group, Inc. (NASDAQ: REGI) is a leading
provider of cleaner, lower carbon intensity transportation fuels.
We are an international producer of biomass-based diesel and are
North America's largest producer of advanced biofuel. REG utilizes
an integrated procurement, distribution, and logistics network to
convert natural fats, oils and greases into lower carbon intensity
products. With 14 active biorefineries, technology development
capabilities and a diverse and growing intellectual property
portfolio, REG is committed to being a long-term leader in
transportation fuels.
Note Regarding Forward-Looking Statements
This press release contains certain forward-looking statements
within the meaning of the Private Securities Litigation Reform Act
of 1995 as amended, including statements regarding the possible
retroactive reinstatement of the BTC for 2018, the estimated net
benefits to net income and Adjusted EBITDA if the BTC is
retroactively reinstated for 2018, the growth opportunities that
reinstatement of the BTC would enable and the possible sale of
our Life Sciences business. These forward-looking statements
are based on current expectations, estimates, assumptions and
projections that are subject to change, and actual results may
differ materially from the forward-looking statements.
Factors that could cause actual results to differ materially
include, but are not limited to: potential and adverse changes in
governmental programs and policies requiring or encouraging the use
of biofuels, including RFS2 on the federal level, and on the state
level, programs such as California’s Low Carbon Fuel Standard;
availability of federal and state governmental tax incentives and
incentives for biomass-based diesel production; changes in the
spread between biomass-based diesel prices and feedstock costs; the
future price and volatility of feedstocks; the future price and
volatility of petroleum and products derived from petroleum; risks
associated with fire, explosions, leaks and other natural disasters
at our facilities; that any disruption of operations at our Geismar
renewable diesel refinery would have a disproportionately adverse
effect on our profitability; the effect of excess capacity in the
biomass-based diesel industry and announced large plant expansions
and potential co-processing of renewable diesel by petroleum
refiners; unanticipated changes in the biomass-based diesel market
from which we generate almost all of our revenues; seasonal
fluctuations in our operating results; potential failure to comply
with governmental regulations; competition in the markets in which
we operate; our dependence on sales to a single customer;
technological advances or new methods of biomass-based diesel
production or the development of energy alternatives to
biomass-based diesel; and other risks and uncertainties described
from time to time in REG's quarterly report on Form 10-Q for the
period ended September 30, 2018 and other periodic filings with the
Securities and Exchange Commission.
All forward-looking statements are made as of the date of this
press release and REG does not undertake to update any
forward-looking statements based on new developments or changes in
our expectations.
Contacts
Company: Renewable Energy Group
Todd Robinson Treasurer +1 (515)
239-8048 Todd.Robinson@regi.com |
|
|
RENEWABLE ENERGY GROUP, INC. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONSFOR THE YEARS ENDED DECEMBER 31,
2018, 2017 AND 2016(IN THOUSANDS, EXCEPT SHARE AND
PER SHARE AMOUNTS)(UNAUDITED)
|
2018 |
|
2017 |
|
2016 |
REVENUES: |
|
|
|
|
|
Biomass-based diesel sales |
$ |
1,875,316 |
|
|
$ |
1,787,308 |
|
|
$ |
1,417,595 |
|
Separated
RIN sales |
137,895 |
|
|
337,501 |
|
|
274,800 |
|
Biomass-based diesel government incentives |
367,490 |
|
|
28,728 |
|
|
346,672 |
|
|
2,380,701 |
|
|
2,153,537 |
|
|
2,039,067 |
|
Other
revenues |
2,286 |
|
|
1,118 |
|
|
165 |
|
|
2,382,987 |
|
|
2,154,655 |
|
|
2,039,232 |
|
COSTS OF GOODS SOLD: |
|
|
|
|
|
Biomass-based diesel |
1,887,292 |
|
|
1,805,408 |
|
|
1,616,989 |
|
Separated
RINs |
75,704 |
|
|
264,765 |
|
|
250,809 |
|
Other costs
of goods sold |
— |
|
|
128 |
|
|
49 |
|
|
1,962,996 |
|
|
2,070,301 |
|
|
1,867,847 |
|
GROSS PROFIT |
419,991 |
|
|
84,354 |
|
|
171,385 |
|
SELLING, GENERAL, AND
ADMINISTRATIVE EXPENSES |
104,702 |
|
|
93,425 |
|
|
88,285 |
|
RESEARCH AND DEVELOPMENT
EXPENSE |
2,037 |
|
|
2,418 |
|
|
4,890 |
|
IMPAIRMENT OF PROPERTY,
PLANT, AND EQUIPMENT |
879 |
|
|
49,873 |
|
|
17,893 |
|
INCOME (LOSS) FROM
OPERATIONS |
312,373 |
|
|
(61,362 |
) |
|
60,317 |
|
OTHER INCOME (EXPENSE),
NET |
(2,874 |
) |
|
(35,407 |
) |
|
7,792 |
|
INCOME (LOSS) BEFORE
INCOME TAXES FROM CONTINUING OPERATIONS |
309,499 |
|
|
(96,769 |
) |
|
68,109 |
|
INCOME TAX BENEFIT
(EXPENSE) |
(5,871 |
) |
|
30,490 |
|
|
(4,268 |
) |
NET INCOME (LOSS) FROM
CONTINUING OPERATIONS BEFORENONCONTROLLING INTEREST |
303,628 |
|
|
(66,279 |
) |
|
63,841 |
|
|
|
|
|
|
|
NET INCOME (LOSS) FROM
CONTINUING OPERATIONS |
$ |
303,628 |
|
|
$ |
(66,279 |
) |
|
$ |
63,455 |
|
DISCONTINUED
OPERATIONS: |
|
|
|
|
|
Loss on
operations of discontinued operations |
(86 |
) |
|
(12,800 |
) |
|
(19,128 |
) |
Impairment
loss on classification of assets held for sale |
(11,226 |
) |
|
— |
|
|
— |
|
NET LOSS ON DISCONTINUED
OPERATIONS |
$ |
(11,312 |
) |
|
$ |
(12,800 |
) |
|
$ |
(19,128 |
) |
NET INCOME (LOSS) TO THE
COMPANY |
$ |
292,316 |
|
|
$ |
(79,079 |
) |
|
$ |
44,327 |
|
|
|
|
|
|
|
NET INCOME (LOSS) FROM
CONTINUING OPERATIONS ATTRIBUTABLE TO THECOMPANY'S COMMON
STOCKHOLDERS |
$ |
295,804 |
|
|
$ |
(66,279 |
) |
|
$ |
62,204 |
|
NET LOSS FROM DISCONTINUED
OPERATIONS ATTRIBUTABLE TO THECOMPANY'S COMMON STOCKHOLDERS |
$ |
(11,312 |
) |
|
$ |
(12,800 |
) |
|
$ |
(19,128 |
) |
Net income (loss) from
continuing operations per share attributable to common
stockholders: |
|
|
|
|
|
Basic |
$ |
7.85 |
|
|
$ |
(1.71 |
) |
|
$ |
1.52 |
|
Diluted |
$ |
6.78 |
|
|
$ |
(1.71 |
) |
|
$ |
1.52 |
|
Net loss from discontinued
operations per share attributable to common stockholders: |
|
|
|
|
|
Basic |
$ |
(0.30 |
) |
|
$ |
(0.33 |
) |
|
$ |
(0.47 |
) |
Diluted |
$ |
(0.30 |
) |
|
$ |
(0.33 |
) |
|
$ |
(0.47 |
) |
Weighted-average shares
used to compute net income (loss) per share from continuing
operations attributable to common stockholders: |
|
|
|
|
|
Basic |
37,687,552 |
|
|
38,731,015 |
|
|
40,897,549 |
|
Diluted |
43,653,720 |
|
|
38,731,015 |
|
|
40,902,860 |
|
Weighted-average shares
used to compute net income (loss) per share from discontinued
operations attributable to common stockholders: |
|
|
|
|
|
Basic |
37,687,552 |
|
|
38,731,015 |
|
|
40,897,549 |
|
Diluted |
37,687,552 |
|
|
38,731,015 |
|
|
40,897,549 |
|
RENEWABLE ENERGY GROUP, INC. AND
SUBSIDIARIES
CONDENSED SUPPLEMENTAL QUARTERLY RESULTS OF
OPERATIONSFOR THE THREE AND TWELVE MONTHS ENDED
DECEMBER 31, 2018 AND 2017(IN THOUSANDS,
EXCEPT SHARE AND PER SHARE
AMOUNTS)(UNAUDITED)
|
|
Three Months Ended December 31,
2018 |
|
Three Months Ended December 31,
2017 |
|
Twelve MonthsEndedDecember
31,2018 |
|
Twelve MonthsEndedDecember
31,2017 |
Revenues from
continuing operations |
|
$ |
519,761 |
|
$ |
575,960 |
|
$ |
2,382,987 |
|
$ |
2,154,655 |
Gross profit from
continuing operations |
|
61,863 |
|
|
19,884 |
|
|
419,991 |
|
|
84,354 |
|
Selling, general, and
administrative expenses includingresearch and development
expense |
|
27,579 |
|
|
22,364 |
|
|
106,739 |
|
|
95,843 |
|
Impairment of property,
plant and equipment |
|
879 |
|
|
48,532 |
|
|
879 |
|
|
49,873 |
|
Net operating income
(loss) from continuing operations |
|
33,405 |
|
|
(51,012 |
) |
|
312,373 |
|
|
(61,362 |
) |
Other income (expense),
net |
|
250 |
|
|
3,728 |
|
|
(2,874 |
) |
|
(35,407 |
) |
Net income (loss) from
continuing operations attributable tothe Company |
|
31,270 |
|
|
(13,876 |
) |
|
303,628 |
|
|
(66,279 |
) |
Net loss from
discontinued operations attributable to theCompany |
|
(12,196 |
) |
|
(3,107 |
) |
|
(11,312 |
) |
|
(12,800 |
) |
Net income (loss)
attributable to the Company |
|
19,074 |
|
|
(16,983 |
) |
|
292,316 |
|
|
(79,079 |
) |
Net income (loss) from
continuing operations attributable tocommon stockholders |
|
30,448 |
|
|
(13,876 |
) |
|
295,804 |
|
|
(66,279 |
) |
Net loss from
discontinued operations attributable to commonstockholders |
|
(12,197 |
) |
|
(3,107 |
) |
|
(11,312 |
) |
|
(12,800 |
) |
Net income (loss) per
share from continuing operationsattributable to common stockholders
- basic |
|
0.82 |
|
|
(0.36 |
) |
|
7.85 |
|
|
(1.71 |
) |
Net income (loss) per
share from continuing operationsattributable to common stockholders
- diluted |
|
0.66 |
|
|
(0.36 |
) |
|
6.78 |
|
|
(1.71 |
) |
Net loss per share from
discontinued operations attributable tocommon stockholders -
basic |
|
(0.33 |
) |
|
(0.08 |
) |
|
(0.30 |
) |
|
(0.33 |
) |
Net loss per share from
discontinued operations attributable tocommon stockholders -
diluted |
|
$ |
(0.33 |
) |
|
$ |
(0.08 |
) |
|
$ |
(0.30 |
) |
|
$ |
(0.33 |
) |
RENEWABLE ENERGY GROUP, INC. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETSAS
OF DECEMBER 31, 2018 AND 2017 (IN
THOUSANDS)(UNAUDITED)
|
2018 |
|
2017 |
ASSETS |
|
|
|
CURRENT ASSETS: |
|
|
|
Cash and cash
equivalents |
$ |
123,575 |
|
|
$ |
77,627 |
|
Marketable
securities |
50,932 |
|
|
— |
|
Accounts
receivable, net |
74,551 |
|
|
90,648 |
|
Inventories |
168,900 |
|
|
135,547 |
|
Prepaid
expenses and other assets |
41,169 |
|
|
51,880 |
|
Restricted
cash |
3,000 |
|
|
— |
|
Current
assets held for sale |
3,250 |
|
|
— |
|
Total current assets |
465,377 |
|
|
355,702 |
|
Property, plant and
equipment, net |
590,723 |
|
|
586,361 |
|
Goodwill |
16,080 |
|
|
16,080 |
|
Intangible assets,
net |
13,646 |
|
|
12,412 |
|
Other assets |
21,270 |
|
|
19,290 |
|
Non-current assets held
for sale |
— |
|
|
15,751 |
|
TOTAL ASSETS |
$ |
1,107,096 |
|
|
$ |
1,005,596 |
|
LIABILITIES AND
EQUITY |
|
|
|
CURRENT LIABILITIES: |
|
|
|
Revolving
line of credit |
$ |
14,250 |
|
|
$ |
65,525 |
|
Current
maturities of long-term debt |
149,006 |
|
|
13,397 |
|
Accounts
payable |
95,866 |
|
|
84,608 |
|
Accrued
expenses and other liabilities |
35,256 |
|
|
25,279 |
|
Deferred
revenue |
300 |
|
|
2,218 |
|
Current
liabilities held for sale |
— |
|
|
13,908 |
|
Total current liabilities |
294,678 |
|
|
204,935 |
|
Unfavorable lease
obligation |
2,259 |
|
|
3,388 |
|
Deferred income taxes |
8,410 |
|
|
8,192 |
|
Long-term contingent
consideration for acquisitions |
— |
|
|
8,849 |
|
Long-term debt, net |
33,421 |
|
|
208,536 |
|
Other liabilities |
3,075 |
|
|
4,114 |
|
Total liabilities |
341,843 |
|
|
438,014 |
|
COMMITMENTS AND
CONTINGENCIES |
|
|
|
TOTAL EQUITY |
765,253 |
|
|
567,582 |
|
TOTAL LIABILITIES AND
EQUITY |
$ |
1,107,096 |
|
|
$ |
1,005,596 |
|
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