There were 801 press releases posted in the last 24 hours and 400,288 in the last 365 days.

FutureFuel Releases 2022 Results

Reports Net Income of $15.2 Million or $0.35 per Diluted Share, and Adjusted EBITDA of $52.5 Million

CLAYTON, Mo., March 14, 2023 (GLOBE NEWSWIRE) -- FutureFuel Corp. (NYSE: FF) (“FutureFuel”), a manufacturer of custom and performance chemicals and biofuels, today announced financial results for the fourth quarter and year ended December 31, 2022.

Fourth Quarter 2022 Financial Highlights (all comparisons are with the fourth quarter of 2021)

  • Revenues were $117.8 million, up 10% from $107.1 million.
  • Net income decreased to $14.9 million, or $0.34 per diluted share, from $22.3 million, or $0.51 per diluted share.
  • Adjusted EBITDA* was $16.9 million, down 35% from $25.9 million.

2022 Financial Highlights (all comparisons are with the year ended December 31, 2021)

  • Revenues were $396.0 million, up 23% from $321.4 million.
  • Net income decreased to $15.2 million, or $0.35 per diluted share, from $26.3 million, or $0.60 per diluted share.
  • Adjusted EBITDA* was $52.5 million, up 55% from $33.8 million.

[*A non-GAAP financial measure.  See "Non-GAAP Financial Measures" for a description of the measure.]

“The results for the financial year 2022 reflect positive developments within our chemical segment which were unfortunately offset by negative external factors impacting our biodiesel segment. 

In our Chemical segment, we experienced positive results particularly due to strong prices for our glycerin and growth of higher value products in our production mix. In addition, three new products from both new and existing customers were trialled in our plant which had a further positive impact during the fourth quarter.

The results for the biodiesel segment were severely impacted by low volumes in the first half of the year and unprecedented volatility in the heating oil futures market in Q2 which resulted in a basis risk loss of $10.5 million.  In contrast, the fourth quarter showed very positive contributions when the plant operated at full capacity and good margins were achieved.” said Tom McKinlay, Chief Executive Officer for FutureFuel Corp.

2023 Regular Cash Dividends

FutureFuel declared a regular quarterly cash dividend in the amount of $0.06 per share on our common stock in the fourth quarter of 2022.

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 December 31:  
                    Dollar     %  
    2022     2021     Change     Change  
Revenues   $ 117,816     $ 107,070     $ 10,746       10 %
Income from operations   $ 11,778     $ 23,132     $ (11,354 )     (49 %)
Net income   $ 14,933     $ 22,345     $ (7,412 )     (33 %)
Earnings per common share:                                
Basic   $ 0.34     $ 0.51     $ (0.17 )     (33 %)
Diluted   $ 0.34     $ 0.51     $ (0.17 )     (33 %)
Adjusted EBITDA   $ 16,853     $ 25,861     $ (9,008 )     (35 %)


    Twelve months ended December 31:  
                    Dollar     %  
    2022     2021     Change     Change  
Revenues   $ 396,014     $ 321,386     $ 74,628       23 %
Income from operations   $ 17,546     $ 12,898     $ 4,648       36 %
Net income   $ 15,211     $ 26,255     $ (11,044 )     (42 %)
Earnings per common share:                                
Basic   $ 0.35     $ 0.60     $ (0.25 )     (42 %)
Diluted   $ 0.35     $ 0.60     $ (0.25 )     (42 %)
Adjusted EBITDA   $ 52,466     $ 33,848     $ 18,618       55 %


Consolidated Financial Results Q4 2022 versus Q4 2021

Fourth quarter revenue increased 10% or $10,746 primarily from higher average selling prices of biodiesel and glycerin products in the biofuel segment. Chemical sales revenue also rose 2% over the prior year quarter.

Income from operations decreased $11,354 primarily from rising feedstock prices which compressed margins in the biofuel segment and from higher inflationary costs in energy and labor.

Net income was $14,933 or $0.34 per diluted share for fourth quarter 2022 as compared with $22,345 or $0.51 per diluted share for fourth quarter 2021 for the same reasons described above.

Consolidated Financial Results 2022 versus 2021

Consolidated sales revenue increased $74,628 in 2022 compared to 2021. This increase primarily resulted from higher average selling prices in the biofuel segment and, to a lesser extent, in the chemical segment.  This increase was reduced in part by lower sales volumes primarily in the biofuels segment and, to a lesser extent, in the chemicals segment.

Gross profit increased $5,456. This increase was mainly attributable to improved margins in the chemical segment and the unfavorable impact in the prior year from the significantly atypical natural gas prices incurred in February 2021 from Winter Storm Uri.  Partially reducing this improvement in gross profit was the unfavorable change in the realized and unrealized activity of derivative instruments which resulted in a reduction of gross profit in 2021 by $10,377, as compared to a reduction in gross profit of $24,360 in 2022. This comparative unfavorable change was primarily from the unprecedented volatility in the NYMEX Heating Oil contract experienced in 2022.

FutureFuel reported net income of $15,211, or $0.35 per diluted share for 2022, compared with net income of $26,255, or $0.60 per diluted share for 2021.

Capital Expenditures

Capital expenditures were $4,778 in 2022, compared with $1,456 in 2021.

Cash and Cash Equivalents and Marketable Securities

Cash and cash equivalents and marketable securities totaled $212,766 as of December 31, 2022, compared with $184,711 as of December 31, 2021.

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)

 
    December 31, 2022     December 31, 2021  
Assets                
Cash and cash equivalents   $ 175,640     $ 137,521  
Accounts receivable, inclusive of the blenders' tax credit of $8,970 and $8,232 and net of allowances for bad debt of $48 and $67, respectively     26,204       29,374  
Inventory     26,761       26,920  
Marketable securities     37,126       47,190  
Other current assets     8,045       14,828  
Total current assets     273,776       255,833  
Property, plant and equipment, net     76,941       82,901  
Other assets     5,252       5,596  
Total noncurrent assets     82,193       88,497  
Total Assets   $ 355,969     $ 344,330  
Liabilities and Stockholders Equity                
Accounts payable, inclusive of the blenders' tax credit rebates due customers of $890 and $890, respectively   $ 36,345     $ 22,823  
Dividends payable     10,503       -  
Other current liabilities     9,250       12,233  
Total current liabilities     56,098       35,056  
Deferred revenue – long-term     15,079       16,755  
Other noncurrent liabilities     1,792       3,591  
Total noncurrent liabilities     16,871       20,346  
Total liabilities     72,969       55,402  
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, 43,763,243 and 43,763,243 issued and outstanding as of December 31, 2022 and 2021     4       4  
Accumulated other comprehensive (loss) income     (1 )     178  
Additional paid in capital     282,489       282,443  
Retained earnings     508       6,303  
Total Stockholders Equity     283,000       288,928  
Total Liabilities and Stockholders Equity   $ 355,969     $ 344,330  
                 


FutureFuel Corp.
Condensed Consolidated Statements of Income and Comprehensive Income
(Dollars in thousands, except per share amounts)
(Unaudited)

    Three months ended December 31:  
    2022     2021  
Revenue   $ 117,816     $ 107,070  
Cost of goods sold and distribution     102,630       80,946  
Gross profit     15,186       26,124  
Selling, general, and administrative expenses     2,394       1,894  
Research and development expenses     1,014       1,098  
      3,408       2,992  
Income from operations     11,778       23,132  
Interest and dividend income     2,249       670  
(Loss) gain on marketable securities     (590 )     122  
Other (expense) income     (32 )     133  
Other income     1,627       925  
Income before income taxes     13,405       24,057  
Income tax (benefit) provision     (1,528 )     1,712  
  Net income   $ 14,933     $ 22,345  
                 
Earnings per common share                
Basic   $ 0.34     $ 0.51  
Diluted   $ 0.34     $ 0.51  
Weighted average shares outstanding                
Basic     43,763,243       43,763,243  
Diluted     43,764,227       43,763,243  
                 
Comprehensive income                
Net income   $ 14,933     $ 22,345  
Other comprehensive (loss) income from unrealized net gains on available-for-sale securities     (8 )     29  
Income tax effect     2       (6 )
Total unrealized (losses) gains, net of tax     (6 )     23  
  Comprehensive income   $ 14,927     $ 22,368  
                 


FutureFuel Corp.
Condensed Consolidated Statements of Income and Comprehensive Income
(Dollars in thousands, except per share amounts)
(Unaudited)

    Twelve months ended December 31:  
    2022     2021  
Revenue   $ 396,014     $ 321,386  
Cost of goods sold and distribution     367,021       297,849  
Gross profit     28,993       23,537  
Selling, general, and administrative expenses     8,032       7,155  
Research and development expenses     3,415       3,484  
      11,447       10,639  
Income from operations     17,546       12,898  
Interest and dividend income     4,870       3,119  
Loss on marketable securities     (8,546 )     (70 )
Other expense     (132 )     (17 )
Other (expense) income     (3,808 )     3,032  
Income before income taxes     13,738       15,930  
Income tax benefit     (1,473 )     (10,325 )
Net income   $ 15,211     $ 26,255  
                 
Earnings per common share                
Basic   $ 0.35     $ 0.60  
Diluted   $ 0.35     $ 0.60  
Weighted average shares outstanding                
Basic     43,763,243       43,756,065  
Diluted     43,763,489       43,756,113  
                 
Comprehensive income                
Net income   $ 15,211     $ 26,255  
Other comprehensive loss from unrealized net losses on available-for-sale securities     (227 )     (38 )
Income tax effect     48       8  
Total unrealized losses, net of tax     (179 )     (30 )
  Comprehensive income   $ 15,032     $ 26,225  
                 


FutureFuel Corp.
Consolidated Statements of Cash Flows
For the Years Ended December 31, 2021 and 2020
(Dollars in thousands)
(Unaudited)

    2022     2021  
Cash flows from operating activities                
Net income   $ 15,211     $ 26,255  
Adjustments to reconcile net income to net cash provided by operating activities:                
Depreciation     10,454       10,452  
Amortization of deferred financing costs     95       95  
Benefit for deferred income taxes     (1,822 )     (10,454 )
Change in fair value of equity securities     8,297       904  
Change in fair value of derivative instruments     (343 )     609  
Loss (gain) on the sale of investments     248       (834 )
Stock based compensation     46       -  
Loss on disposal of property and equipment     64       11  
Impairment of intangible asset     -       1,315  
Noncash interest expense     33       32  
Changes in operating assets and liabilities:                
Accounts receivable     3,118       (7,929 )
Accounts receivable – related parties     52       1,368  
Inventory     162       6,969  
Income tax receivable     7,801       7,908  
Prepaid expenses     (106 )     379  
Prepaid expenses – related party     (8 )     (4 )
Other assets     799       732  
Accounts payable     13,790       2,095  
Accounts payable – related parties     (112 )     6,927  
Accrued expenses and other current liabilities     (948 )     870  
Accrued expenses and other current liabilities – related parties     -       1  
Deferred revenue     (4,055 )     (2,931 )
Other noncurrent liabilities     (325 )     (686 )
Net cash provided by operating activities     52,541       44,084  
Cash flows from investing activities                
Collateralization of derivative instruments     (404 )     (750 )
Purchase of marketable securities     -       (23,546 )
Proceeds from the sale of marketable securities     1,292       40,652  
Proceeds from the sale of property and equipment     61       -  
Proceeds from the sale of intangible asset     -       93  
Capital expenditures     (4,778 )     (1,456 )
Net cash provided by investing activities     (3,829 )     14,993  
Cash flows from financing activities                
Proceeds from the issuance of stock     -       231  
Minimum tax withholding on stock options exercised     -       (3 )
Payment of dividends     (10,503 )     (119,906 )
Net cash used in financing activities     (10,503 )     119,678  
Net change in cash and cash equivalents     38,119       (60,601 )
Cash and cash equivalents at beginning of period     137,521       198,122  
Cash and cash equivalents at end of period   $ 175,640     $ 137,521  
                 
Cash paid for interest   $ 3     $ 47  
Cash paid for income taxes   $ 69     $ 83  
Noncash investing and financing activities:                
Noncash capital expenditures   $ 208     $ 364  
Noncash operating leases   $ 707     $ 269  
Noncash items incurred for dividends   $ 10,503     $ -  
                 



FutureFuel Corp.
Reconciliation of Non-GAAP Financial Measure to Financial Measure
(Dollars in thousands)
(Unaudited)

Reconciliation of Adjusted EBITDA to Net Income

    Three months ended
December 31:
    Twelve months ended
December 31:
 
    2022     2021     2022     2021  
Net income   $ 14,933     $ 22,345     $ 15,211     $ 26,255  
Depreciation     2,604       2,565       10,454       10,452  
Non-cash stock-based compensation     -       -       46       -  
Interest and dividend income     (2,249 )     (670 )     (4,870 )     (3,119 )
Non-cash interest expense and amortization of deferred financing costs     56       31       128       127  
Loss on disposal of property and equipment     4       -       64       11  
Loss on derivative instruments     2,443       -       24,360       10,377  
Loss (gain) on marketable securities     590       (122 )     8,546       70  
Income tax (benefit) provision     (1,528 )     1,712       (1,473 )     (10,325 )
Adjusted EBITDA   $ 16,853     $ 25,861     $ 52,466     $ 33,848  


Reconciliation of Adjusted EBITDA to Net Cash Provided by Operating Activities

    Twelve months ended December 31:  
    2022     2021  
Net cash provided by operating activities   $ 52,451     $ 44,084  
Benefit for deferred income taxes     1,822       10,454  
Interest and dividend income     (4,870 )     (3,119 )
Income tax provision     (1,473 )     (10,325 )
Loss on derivative instruments     24,360       10,377  
Change in fair value of derivative instruments     343       (609 )
Changes in operating assets and liabilities, net     (20,168 )     (15,699 )
Other non-operating income     1       -  
Impairment of intangible asset     -       (1,315 )
Adjusted EBITDA   $ 52,466     $ 33,848  
                 


FutureFuel Corp.
Condensed Consolidated Segment Income
(Dollars in thousands)
(Unaudited)

    Three months ended December 31:     Twelve months ended December 31:  
    2022     2021     2022     2021  
Revenue                                
Custom chemicals   $ 14,709     $ 15,020     $ 58,737     $ 50,675  
Performance chemicals     4,923       4,174       22,156       16,867  
Chemicals revenue   $ 19,632     $ 19,194     $ 80,893     $ 67,542  
Biofuels revenue     98,184       87,876       315,121       253,844  
Total Revenue   $ 117,816     $ 107,070     $ 396,014     $ 321,386  
                                 
Segment gross profit                                
Chemicals   $ 7,669     $ 5,881     $ 25,645     $ 13,970  
Biofuels     7,517       20,243       3,348       9,567  
Total gross profit   $ 15,186     $ 26,124     $ 28,993     $ 23,537  


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 CONTACT   
FutureFuel Corp.  
Tom McKinlay  
(314) 854-8352  
www.futurefuelcorporation.com   

Primary Logo