FutureFuel Corp. (NYSE: FF) (“FutureFuel”), a manufacturer of
custom and performance chemicals and biofuels, today announced
financial results for the first quarter ended
March 31, 2023.
First Quarter
2023 Financial Highlights (all
comparisons are with the first quarter of 2022)
- Revenues were $74.2 million, up 76% from
$42.3 million.
- Net income increased to $21.1 million, or $0.48 per
diluted share, from a loss of $12.4 million, or $0.28 per
diluted share.
- Adjusted EBITDA* was $12.5 million, up 496% from
$2.1 million.[*A non-GAAP financial measure. See
"Non-GAAP Financial Measures" for a description of the
measure.]
“It is pleasing to report such positive results for the first
quarter of this year.
Our Biodiesel segment had a strong start to the year, with our
plant operating at full capacity and capturing good margins. This
year we are reporting a gain of $8.3 million on derivative
instruments as oil prices have fallen since the beginning of
the year and this will protect our margin on future sales. This is
in sharp contrast with the same quarter last year when oil prices
rose steeply in response to the Ukrainian conflict and we reported
a loss of $9.1 million on derivative instruments, which we then
recovered when we sold the physical biodiesel later in the
year.
In our Chemical segment, we also increased revenue and
contribution compared to the same quarter last year. This came from
continued growth of higher value products in our production mix and
also new custom manufacturing business as we bring new customers
and products to our operation.” said Tom McKinlay, Chief
Executive Officer for FutureFuel Corp.
2023 Cash Dividends
In the first three months of 2023, FutureFuel
paid a regular quarterly cash dividend in the amount of $0.06 per
share on our common stock. The remaining quarterly dividends of
$0.06 per share will be paid in June, September, and December.
Financial Overview and Key Operating
Metrics
Financial and operating metrics, which include
non-GAAP financial measures (see "Non-GAAP Financial Measures" for
additional information), include dollars in thousands, except per
share amounts:
|
FutureFuel Corp.Certain Financial and
Operating Metrics(Unaudited) |
|
|
|
|
|
|
Three months ended March 31: |
|
|
|
|
|
|
|
|
|
|
|
Dollar |
|
|
% |
|
|
|
2023 |
|
|
2022 |
|
|
Change |
|
|
Change |
|
Revenues |
|
$ |
74,181 |
|
|
$ |
42,261 |
|
|
$ |
31,920 |
|
|
|
76 |
% |
Income (loss) from
operations |
|
$ |
18,251 |
|
|
$ |
(9,607 |
) |
|
$ |
27,858 |
|
|
|
na |
|
Net income (loss) |
|
$ |
21,081 |
|
|
$ |
(12,398 |
) |
|
$ |
33,479 |
|
|
|
na |
|
Earnings (loss) per common
share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.48 |
|
|
$ |
(0.28 |
) |
|
$ |
0.76 |
|
|
|
na |
|
Diluted |
|
$ |
0.48 |
|
|
$ |
(0.28 |
) |
|
$ |
0.76 |
|
|
|
na |
|
Adjusted EBITDA |
|
$ |
12,495 |
|
|
$ |
2,098 |
|
|
$ |
10,397 |
|
|
|
496 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial and Business Summary
Consolidated sales revenue in the three months
ended March 31, 2023 increased 76%
or $31,920 compared to the three months ended March
31,2022. This increase resulted from increased sales volume and
price in the biofuels segment and to a lesser extent,
increased sales volume in the chemical segment which
was partially offset by reduced sales prices in the chemical
segment from product mix.
Income from operations
improved $27,858 primarily from i) the change in the
activity in derivative instruments with a gain of $8,307 in the
three months ended March 31, 2023 and a loss of $9,129 in the
same period of the prior year (these include realized gains and
losses and a mark to market assessment against inventories yet to
be sold - see note 5 of our consolidated financial
statements). Affordable feedstocks were acquired and converted to
biodiesel which will be sold mostly in the three months ended June
30 and September 30, 2023; and ii) the change in the
adjustment in the carrying value of our inventory as determined
utilizing the LIFO method of inventory accounting. This
adjustment increased gross profit $3,783 in the three months
ended March 31, 2023 as compared to $481 in the prior year
quarter.
Net income was $21,081 or
$0.48 per diluted share for first quarter 2023 as
compared to a loss of $12,398 or $0.28 per diluted share
for first quarter 2022 for the same reasons described
above.
Capital Expenditures
Capital expenditures were $2,459 in
the first three months of 2023, compared with $977 in the
same period in 2022.
Cash and Cash Equivalents and Marketable
Securities
Cash and cash equivalents and marketable
securities totaled $182,739 as of March 31, 2023,
compared with $163,735 as of March 31, 2022.
About FutureFuel
FutureFuel is a leading manufacturer of
diversified chemical products and biofuels. FutureFuel’s chemicals
segment manufactures specialty chemicals for specific customers
(“custom chemicals”) as well as multi-customer specialty chemicals
(“performance chemicals”). FutureFuel’s custom manufacturing
product portfolio includes proprietary agrochemicals, adhesion
promoters, a biocide intermediate, and an antioxidant precursor.
FutureFuel’s performance chemicals products include a portfolio of
proprietary nylon and polyester polymer modifiers and several
small-volume specialty chemicals and solvents 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, 2022 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) |
|
|
|
|
|
|
|
|
|
(Unaudited) |
|
|
|
|
|
|
March 31, 2023 |
|
|
December 31, 2022 |
|
Assets |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
145,058 |
|
|
$ |
175,640 |
|
Accounts receivable, inclusive of the blenders' tax credit of
$7,037 and $8,970 and net of allowances for bad debt of
$74 and $48, respectively |
|
|
25,927 |
|
|
|
26,204 |
|
Inventory |
|
|
69,234 |
|
|
|
26,761 |
|
Marketable securities |
|
|
37,681 |
|
|
|
37,126 |
|
Other current assets |
|
|
13,598 |
|
|
|
8,045 |
|
Total current assets |
|
|
291,498 |
|
|
|
273,776 |
|
Property, plant and equipment, net |
|
|
76,899 |
|
|
|
76,941 |
|
Other assets |
|
|
4,881 |
|
|
|
5,252 |
|
Total noncurrent assets |
|
|
81,780 |
|
|
|
82,193 |
|
Total
Assets |
|
$ |
373,278 |
|
|
$ |
355,969 |
|
Liabilities and
Stockholders’Equity |
|
|
|
|
|
|
|
|
Accounts payable, inclusive of the blenders' tax credit rebates due
customers of $890 and $890, respectively |
|
$ |
36,833 |
|
|
$ |
36,345 |
|
Dividends payable |
|
|
7,877 |
|
|
|
10,503 |
|
Other current liabilities |
|
|
8,871 |
|
|
|
9,250 |
|
Total current liabilities |
|
|
53,581 |
|
|
|
56,098 |
|
Deferred revenue – long-term |
|
|
13,913 |
|
|
|
15,079 |
|
Other noncurrent liabilities |
|
|
1,686 |
|
|
|
1,792 |
|
Total noncurrent liabilities |
|
|
15,599 |
|
|
|
16,871 |
|
Total liabilities |
|
|
69,180 |
|
|
|
72,969 |
|
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,
43,763,243 and 43,763,243 issued and outstanding as of
March 31, 2023 and December 31, 2022 |
|
|
4 |
|
|
|
4 |
|
Accumulated other comprehensive income (loss) |
|
|
16 |
|
|
|
(1 |
) |
Additional paid in capital |
|
|
282,489 |
|
|
|
282,489 |
|
Retained earnings |
|
|
21,589 |
|
|
|
508 |
|
Total Stockholders’Equity |
|
|
304,098 |
|
|
|
283,000 |
|
Total Liabilities and
Stockholders’Equity |
|
$ |
373,278 |
|
|
$ |
355,969 |
|
|
|
|
|
|
|
|
|
|
|
FutureFuel Corp.Condensed Consolidated
Statements of Income and Comprehensive
Income(Dollars in thousands, except per share
amounts)(Unaudited) |
|
|
|
|
|
|
Three months ended March 31: |
|
|
|
2023 |
|
|
2022 |
|
Revenue |
|
$ |
74,181 |
|
|
$ |
42,261 |
|
Cost of goods sold and
distribution |
|
|
52,558 |
|
|
|
49,416 |
|
Gross profit (loss) |
|
|
21,623 |
|
|
|
(7,155 |
) |
Selling, general, and
administrative expenses |
|
|
2,300 |
|
|
|
1,773 |
|
Research and development
expenses |
|
|
1,072 |
|
|
|
679 |
|
|
|
|
3,372 |
|
|
|
2,452 |
|
Income (loss) from
operations |
|
|
18,251 |
|
|
|
(9,607 |
) |
Interest and dividend
income |
|
|
2,336 |
|
|
|
664 |
|
Gain (loss) on marketable
securities |
|
|
533 |
|
|
|
(4,127 |
) |
Other expense |
|
|
(32 |
) |
|
|
(32 |
) |
Other income (expense) |
|
|
2,837 |
|
|
|
(3,495 |
) |
Income (loss) before income
taxes |
|
|
21,088 |
|
|
|
(13,102 |
) |
Income tax provision
(benefit) |
|
|
7 |
|
|
|
(704 |
) |
Net income (loss) |
|
$ |
21,081 |
|
|
$ |
(12,398 |
) |
|
|
|
|
|
|
|
|
|
Earnings (loss) per common
share |
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.48 |
|
|
$ |
(0.28 |
) |
Diluted |
|
$ |
0.48 |
|
|
$ |
(0.28 |
) |
Weighted average shares
outstanding |
|
|
|
|
|
|
|
|
Basic |
|
|
43,763,243 |
|
|
|
43,763,243 |
|
Diluted |
|
|
43,766,536 |
|
|
|
43,766,243 |
|
|
|
|
|
|
|
|
|
|
Comprehensive income
(loss) |
|
|
|
|
|
|
|
|
Net income (loss) |
|
$ |
21,081 |
|
|
$ |
(12,398 |
) |
Other comprehensive income (loss) from unrealized net gains
(losses) on available-for-sale securities |
|
|
22 |
|
|
|
(62 |
) |
Income tax effect |
|
|
(5 |
) |
|
|
13 |
|
Total unrealized gain (loss), net of tax |
|
|
17 |
|
|
|
(49 |
) |
Comprehensive income (loss) |
|
$ |
21,098 |
|
|
$ |
(12,477 |
) |
|
|
|
|
|
|
|
|
|
|
FutureFuel Corp.Consolidated Statements of
Cash Flows(Dollars in
thousands)(Unaudited) |
|
|
|
|
Three Months Ended March 31, |
|
|
2023 |
|
2022 |
|
Cash flows from operating activities |
|
|
|
|
|
|
Net income |
$ |
21,081 |
|
$ |
(12,398 |
) |
Adjustments to reconcile net
income to net cash provided by operating activities: |
|
|
|
|
|
|
Depreciation |
|
2,551 |
|
|
2,570 |
|
Amortization of deferred
financing costs |
|
24 |
|
|
24 |
|
Benefit for deferred income
taxes |
|
(5 |
) |
|
(719 |
) |
Change in fair value of equity
securities |
|
(533 |
) |
|
4,100 |
|
Change in fair value of
derivative instruments |
|
(4,902 |
) |
|
(1,536 |
) |
Loss on the sale of
investments |
|
- |
|
|
27 |
|
Loss on disposal of property
and equipment |
|
- |
|
|
6 |
|
Noncash interest expense |
|
8 |
|
|
8 |
|
Changes in operating assets
and liabilities: |
|
|
|
|
|
|
Accounts receivable |
|
277 |
|
|
11,268 |
|
Accounts receivable – related
parties |
|
- |
|
|
58 |
|
Inventory |
|
(42,473 |
) |
|
(10,700 |
) |
Income tax receivable |
|
23 |
|
|
15 |
|
Prepaid expenses |
|
525 |
|
|
631 |
|
Prepaid expenses – related
party |
|
- |
|
|
(8 |
) |
Other assets |
|
(5,165 |
) |
|
38 |
|
Accounts payable |
|
413 |
|
|
(730 |
) |
Accounts payable – related
parties |
|
25 |
|
|
57 |
|
Accrued expenses and other
current liabilities |
|
(270 |
) |
|
(917 |
) |
Accrued expenses and other
current liabilities – related parties |
|
(1 |
) |
|
(1 |
) |
Deferred revenue |
|
(1,274 |
) |
|
(2,269 |
) |
Other noncurrent
liabilities |
|
(114 |
) |
|
(100 |
) |
Net cash (used in)
provided by operating activities |
|
(29,810 |
) |
|
10,576 |
|
Cash flows from
investing activities |
|
|
|
|
|
|
Collateralization of
derivative instruments |
|
4,327 |
|
|
(2,664 |
) |
Proceeds from the sale of
marketable securities |
|
- |
|
|
250 |
|
Proceeds from the sale of
property and equipment |
|
- |
|
|
56 |
|
Capital expenditures |
|
(2,459 |
) |
|
(977 |
) |
Net cash provided by
(used in) investing activities |
|
1,868 |
|
|
(3,335 |
) |
Cash flows from
financing activities |
|
|
|
|
|
|
Payment of dividends |
|
(2,626 |
) |
|
(2,626 |
) |
Deferred financing costs |
|
(14 |
) |
|
- |
|
Net cash used in
financing activities |
|
(2,640 |
) |
|
(2,626 |
) |
Net change in cash and cash
equivalents |
|
(30,582 |
) |
|
(16,357 |
) |
Cash and cash equivalents at
beginning of period |
|
175,640 |
|
|
137,521 |
|
Cash and cash
equivalents at end of period |
$ |
145,058 |
|
$ |
120,984 |
|
Noncash capital
expenditures |
$ |
258 |
|
$ |
174 |
|
Cash dividends declared, not
paid |
$ |
7,877 |
|
$ |
7,877 |
|
|
FutureFuel Corp.Reconciliation of Non-GAAP
Financial Measure to Financial Measure(Dollars in
thousands)(Unaudited) |
|
Reconciliation of Adjusted EBITDA to Net
Income |
|
|
|
|
|
|
Three months endedMarch 31: |
|
|
|
2023 |
|
|
2022 |
|
Net income (loss) |
|
$ |
21,081 |
|
|
$ |
(12,398 |
) |
Depreciation |
|
|
2,551 |
|
|
|
2,570 |
|
Interest and dividend
income |
|
|
(2,336 |
) |
|
|
(664 |
) |
Non-cash interest expense and
amortization of deferred financing costs |
|
|
32 |
|
|
|
32 |
|
Loss on disposal of property
and equipment |
|
|
- |
|
|
|
6 |
|
(Gain) loss on derivative
instruments |
|
|
(8,307 |
) |
|
|
9,129 |
|
(Gain) loss on marketable
securities |
|
|
(533 |
) |
|
|
4,127 |
|
Income tax provision
(benefit) |
|
|
7 |
|
|
|
(704 |
) |
Adjusted EBITDA |
|
$ |
12,495 |
|
|
$ |
2,098 |
|
|
|
|
|
|
|
|
|
|
Reconciliation of Adjusted EBITDA to Net Cash Provided by
Operating Activities |
|
|
|
|
|
|
Three months ended March 31: |
|
|
|
2023 |
|
|
2022 |
|
Net cash provided by operating activities |
|
$ |
(29,810 |
) |
|
$ |
(10,576 |
) |
Benefit for deferred income
taxes |
|
|
5 |
|
|
|
719 |
|
Interest and dividend
income |
|
|
(2,336 |
) |
|
|
(664 |
) |
Income tax provision
(benefit) |
|
|
7 |
|
|
|
(704 |
) |
(Gain) loss on derivative
instruments |
|
|
(8,307 |
) |
|
|
9,129 |
|
Change in fair value of
derivative instruments |
|
|
4,902 |
|
|
|
1,536 |
|
Changes in operating assets
and liabilities, net |
|
|
48,034 |
|
|
|
2,658 |
|
Adjusted EBITDA |
|
$ |
12,495 |
|
|
$ |
2,098 |
|
|
|
|
|
|
|
|
|
|
|
FutureFuel Corp.Condensed Consolidated
Segment Income(Dollars in
thousands)(Unaudited) |
|
|
|
|
|
|
Three months ended March 31: |
|
|
|
2023 |
|
|
2022 |
|
Revenue |
|
|
|
|
|
|
|
|
Custom chemicals |
|
$ |
16,620 |
|
|
$ |
15,715 |
|
Performance chemicals |
|
|
5,261 |
|
|
|
5,846 |
|
Chemicals revenue |
|
$ |
21,881 |
|
|
$ |
21,561 |
|
Biofuels revenue |
|
|
52,300 |
|
|
|
20,700 |
|
Total Revenue |
|
$ |
74,181 |
|
|
$ |
42,261 |
|
|
|
|
|
|
|
|
|
|
Segment gross profit |
|
|
|
|
|
|
|
|
Chemicals |
|
$ |
8,623 |
|
|
$ |
5,418 |
|
Biofuels |
|
|
13,000 |
|
|
|
(12,573 |
) |
Total gross profit |
|
$ |
21,623 |
|
|
$ |
(7,155 |
) |
Depreciation is allocated to segment cost 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 CONTACTFutureFuel Corp.Tom McKinlay(314)
854-8352www.futurefuelcorporation.com
FutureFuel (NYSE:FF)
과거 데이터 주식 차트
부터 4월(4) 2024 으로 5월(5) 2024
FutureFuel (NYSE:FF)
과거 데이터 주식 차트
부터 5월(5) 2023 으로 5월(5) 2024