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Key Achievements
For the quarter ended
Adjusted EBITDA for the year ended
"Throughout 2011,
Oh added: "Biodiesel demand is growing due to the implementation of Renewable Fuel Standard 2. We are building a business with competitive advantages that can meet this demand. Going into 2012, we believe we are well-positioned as the leading producer of biodiesel from low cost feedstocks in the United States."
Operating Highlights
REG sold
150 million gallons of biodiesel in 2011, an increase of 121% compared
to 2010. The increase in gallons sold was primarily due to an increase
in biodiesel demand compared to 2010 as petroleum-fuel refiners and
importers sought to meet their renewable volume obligations to purchase
biomass-based diesel under the Renewable Fuel Standard 2 ("RFS2") law,
which went into effect in mid-2010. RFS2 required the consumption of 800
million gallons of biodiesel in 2011 and requires 1 billion gallons of
consumption in 2012.
REG was able to take advantage of this increased demand primarily due to
greater capacity utilization and improving throughput at all of its
biorefineries, the purchase and restart of a dormant 30 million
gallon/year biorefinery in
Throughout 2011, REG's liquidity improved substantially. Cash grew from
Fourth Quarter 2011 Financial Results
Adjusted
EBITDA, defined as earnings before interest, taxes, depreciation and
amortization and further adjusted for certain items identified below
under "Adjusted EBITDA Reconciliation" was
Revenue for the fourth quarter of 2011 was
The table below summarizes REG's results for Q4 2011 and 2010.
* RIN refers to Renewable Identification Number, a tracking number associated with each gallon of biodiesel produced industry-wide. RINs are used to track compliance with RFS2 production directives. RINs are tradable, and can be purchased and sold by producers and refiners to satisfy RFS2 requirements.
| REG Q4 2011 Revenue and Adjusted EBITDA Summary | ||||||
| (dollars and gallons in thousands except per gallon data) | ||||||
| Y/Y | ||||||
|
Q4 2011 |
Q4 2010 |
Growth |
||||
|
Gallons sold |
47,512 | 21,040 | 125.8% | |||
|
Average B100 price per gallon |
|
|
41.3% | |||
| Revenues |
|
|
283.8% | |||
| Adjusted EBITDA |
|
|
434.7% | |||
| Adjusted EBITDA Margin | 11.1% | 7.9% | ||||
Full Year 2011 Financial Results
Adjusted
EBITDA was
Revenue for 2011 was
REG was able to take advantage of increased demand primarily due to
greater capacity utilization and improving throughput at all of its
biorefineries, the purchase and restart of a dormant 30 million
gallon/year biorefinery in
The table below summarizes quarterly and year end results for 2010 and 2011.
| REG Annual Results Summary | ||||||||||
| (dollars and gallons in thousands except per gallon data) | ||||||||||
|
Q1 |
Q2 |
Q3 |
Q4 |
Year |
||||||
|
Gallons sold 2011 |
20,117 | 37,981 | 44,217 | 47,512 | 149,827 | |||||
|
Gallons sold 2010 |
11,308 | 15,732 | 19,792 | 21,040 | 67,872 | |||||
| Y/Y Growth |
77.9% |
141.4% |
123.4% |
125.8% |
120.7% |
|||||
|
Average B100 sales price per gallon 2011 |
|
|
|
|
|
|||||
| Average B100 sales price per gallon 2010 |
|
|
|
|
|
|||||
| Total Revenue 2011 |
|
|
|
|
|
|||||
| Total Revenue 2010 |
|
|
|
|
|
|||||
| Y/Y Growth |
178.6% |
323.7% |
306.4% |
283.8% |
280.7% |
|||||
| Adjusted EBITDA 2011 |
|
|
|
|
|
|||||
| Adjusted EBITDA 2010 |
|
|
|
|
|
|||||
| Y/Y Growth |
2464.2% |
1272.3% |
434.7% |
1232.1% |
||||||
The increase in third quarter results is primarily the result of sales
seasonality, generally higher RIN prices and REG's receipt of
Basic and diluted earnings per share for 2011 were
Balance Sheet and Liquidity
Because
REG was substantially recapitalized in connection with the IPO, the
At
Adjusted EBITDA Reconciliation
REG
presents Adjusted EBITDA because REG believes it assists investors in
analyzing its performance across reporting periods on a consistent
basis. In addition, REG uses Adjusted EBITDA to evaluate, assess and
benchmark its financial performance on a consistent and comparable
basis. REG excludes non-cash stock-based compensation and other non-cash
other income (expense) items because it does not believe that they are
indicative of REG's ongoing operating performance. REG's measure of
Adjusted EBITDA might be different than similar financial measures used
by other companies. Non-GAAP metrics are not determined in accordance
with GAAP and are not a substitute for or superior to financial measures
determined in accordance with GAAP. Adjusted EBITDA Margin is calculated
by dividing Adjusted EBITDA by Revenues.
|
|
|||||||||||||||||||||||||||||||||||||||||
| (In thousands) |
1Q '10 |
2Q '10 |
3Q '10 |
4Q '10 |
YTD '10 |
1Q '11 |
2Q '11 |
3Q '11 |
4Q '11 |
YTD '11 |
|||||||||||||||||||||||||||||||
|
Net income (loss) |
$ | 3,081 | $ | (392 | ) | $ | (7,617 | ) | $ | (16,660 | ) | $ | (21,588 | ) | $ | 3,736 | $ | (948 | ) | $ | (2,007 | ) | $ | 88,088 | $ | 88,869 | |||||||||||||||
|
(Income) loss from equity investments |
215 | 166 | 173 | 135 | 689 | 65 | 83 | (649 | ) | 59 | (442 | ) | |||||||||||||||||||||||||||||
|
Income tax (benefit) expense |
(6,328 | ) | 2,600 | - | 476 | (3,252 | ) | - | - | 4,752 | (1,770 | ) | 2,982 | ||||||||||||||||||||||||||||
|
Impairment of investments |
- | 400 | - | - | 400 | - | - | - | - | - | |||||||||||||||||||||||||||||||
|
Interest expense |
341 | 1,394 | 1,483 | 1,722 | 4,940 | 1,708 | 1,751 | 2,183 | 2,453 | 8,095 | |||||||||||||||||||||||||||||||
|
Other income |
(214 | ) | (59 | ) | (346 | ) | (537 | ) | (1,156 | ) | (109 | ) | (34 | ) | (69 | ) | (147 | ) | (359 | ) | |||||||||||||||||||||
|
Change in fair value of Seneca Holdco liability |
- | 371 | 1,773 | 2,035 | 4,179 | (727 | ) | 2,250 | 977 | (403 | ) | 2,097 | |||||||||||||||||||||||||||||
| Change in fair value of interest rate swap | (72 | ) | (116 | ) | (103 | ) | (178 | ) | (469 | ) | (166 | ) | (166 | ) | (170 | ) | (69 | ) | (571 | ) | |||||||||||||||||||||
|
Change in fair value of preferred stock conversion feature embedded derivatives |
- | (5,001 | ) | (1,996 | ) | 15,205 | 8,208 | (2,557 | ) | 19,645 | 38,483 | (63,510 | ) | (7,939 | ) | ||||||||||||||||||||||||||
| Income (loss) from operations | (2,977 | ) | (637 | ) | (6,633 | ) | 2,198 | (8,049 | ) | 1,950 | 22,581 | 43,500 | 24,701 | 92,732 | |||||||||||||||||||||||||||
| Impairments on assets | 141 | - | 7,336 | 17 | 7,494 | - | - | - | - | - | |||||||||||||||||||||||||||||||
| Straight-line lease expense | - | 627 | 948 | 948 | 2,523 | 798 | 618 | 393 | 93 | 1,902 | |||||||||||||||||||||||||||||||
| Depreciation | 1,066 | 1,164 | 1,443 | 1,618 | 5,291 | 1,689 | 1,705 | 1,851 | 1,939 | 7,184 | |||||||||||||||||||||||||||||||
| Amortization | (141 | ) | (181 | ) | (113 | ) | (145 | ) | (580 | ) | (130 | ) | (124 | ) | (97 | ) | (100 | ) | (451 | ) | |||||||||||||||||||||
| Non-cash stock compensation | 36 | 32 | 423 | 885 | 1,376 | 990 | 990 | 1,067 | 2,887 | 5,934 | |||||||||||||||||||||||||||||||
| Adjusted EBITDA | $ | (1,875 | ) | $ | 1,005 | $ | 3,404 | $ | 5,521 | $ | 8,055 | $ | - | $ | 5,297 | $ | 25,770 | $ | 46,714 | $ | 29,520 | $ | 107,301 | ||||||||||||||||||
Fourth Quarter Conference Call
REG
will sponsor a conference call to discuss results today at
About
For more than a decade, REG has been a reliable supplier of biodiesel which meets or exceeds ASTM quality specifications. We sell REG-9000® biodiesel to distributors so Americans can have cleaner burning fuels that help lessen our dependence on foreign oil. REG-9000® branded biodiesel is distributed in nearly every state in the U.S. For more information, please visit the REG's website at http://www.regi.com.
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 increased demand for biodiesel
and REG's ability to take advantage of such an increase, and plans to
retrofit facilities and any expected benefits from such actions. 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, the effect of governmental programs on our
business; government policymaking and mandates relating to renewable
fuels; the future price and volatility of feedstocks; the future price
and volatility of petroleum and products derived from petroleum;
expected future financial performance; our liquidity and working capital
requirements; availability of federal and state governmental tax credits
and incentives; anticipated trends and challenges in our business and
competition in the markets in which we operate; our ability to estimate
our feedstock demands and biodiesel sales; our dependence on sales to a
limited number of customers and distributors; technological
obsolescence; our expectations regarding future expenses; our ability to
successfully implement our acquisition strategy; and other risks and
uncertainties described from time to time in the REG's public filings
with the
|
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| CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||
|
FOR THE YEARS ENDED |
||||||||||||
| (IN THOUSANDS EXCEPT SHARE AND PER SHARE AMOUNTS) | ||||||||||||
| (Unaudited) | ||||||||||||
| 2011 | 2010 | 2009 | ||||||||||
| REVENUES: | ||||||||||||
| Biodiesel sales | $ | 757,987 | $ | 207,902 | $ | 109,027 | ||||||
| Biodiesel government incentives | 65,822 | 7,240 | 19,465 | |||||||||
| 823,809 | 215,142 | 128,492 | ||||||||||
| Services | 222 | 1,313 | 3,009 | |||||||||
| 824,031 | 216,455 | 131,501 | ||||||||||
| COSTS OF GOODS SOLD: | ||||||||||||
| Biodiesel | 696,622 | 194,016 | 127,373 | |||||||||
| Services | 198 | 807 | 1,177 | |||||||||
| 696,820 | 194,823 | 128,550 | ||||||||||
| GROSS PROFIT | 127,211 | 21,632 | 2,951 | |||||||||
| SELLING, GENERAL, AND ADMINISTRATIVE EXPENSES | 34,479 | 22,187 | 25,565 | |||||||||
| GAIN ON SALE OF ASSETS - related party | - | - | (2,254 | ) | ||||||||
| IMPAIRMENT OF ASSETS | - | 7,494 | 833 | |||||||||
| INCOME (LOSS) FROM OPERATIONS | 92,732 | (8,049 | ) | (21,193 | ) | |||||||
| OTHER INCOME (EXPENSE), NET: | ||||||||||||
| Change in fair value of preferred stock conversion feature embedded derivatives | 7,939 | (8,208 | ) | (2,339 | ) | |||||||
| Change in fair value of interest rate swap | 571 | 469 | 382 | |||||||||
| Change in fair value of Seneca Holdco liability | (2,097 | ) | (4,179 | ) | - | |||||||
| Other income | 359 | 956 | 3,147 | |||||||||
| Interest expense | (8,095 | ) | (4,940 | ) | (2,414 | ) | ||||||
| Interest income | - | 200 | 60 | |||||||||
| Impairment of investments | - | (400 | ) | (200 | ) | |||||||
| (1,323 | ) | (16,102 | ) | (1,364 | ) | |||||||
| INCOME (LOSS) BEFORE INCOME TAXES AND INCOME | ||||||||||||
| (LOSS) FROM EQUITY INVESTMENTS | 91,409 | (24,151 | ) | (22,557 | ) | |||||||
| INCOME TAX BENEFIT (EXPENSE) | (2,982 | ) | 3,252 | (45,212 | ) | |||||||
| INCOME (LOSS) FROM EQUITY INVESTMENTS | 442 | (689 | ) | (1,089 | ) | |||||||
| NET INCOME (LOSS) | 88,869 | (21,588 | ) | (68,858 | ) | |||||||
| LESS - NET LOSS ATTRIBUTABLE TO | ||||||||||||
| NONCONTROLLING INTEREST | - | - | 7,953 | |||||||||
| NET INCOME (LOSS) ATTRIBUTABLE TO THE COMPANY | 88,869 | (21,588 | ) | (60,905 | ) | |||||||
| EFFECTS OF RECAPITALIZATION | - | 8,521 | - | |||||||||
| LESS - ACCRETION OF PREFERRED STOCK TO REDEMPTION VALUE | (25,343 | ) | (27,239 | ) | (44,181 | ) | ||||||
| LESS - UNDISTRIBUTED DIVIDENDS ALLOCATED TO PREFERRED STOCKHOLDERS | (12,723 | ) | (10,027 | ) | (14,036 | ) | ||||||
| LESS - EFFECT OF PARTICIPATING PREFERRED STOCK | (4,186 | ) | ||||||||||
| LESS - EFFECT OF PARTICIPATING RESTRICTED STOCK UNITS | (3,864 | ) | - | - | ||||||||
| NET INCOME (LOSS) ATTRIBUTABLE TO THE COMPANY'S COMMON STOCKHOLDERS | $ | 42,753 | $ | (50,333 | ) | $ | (119,122 | ) | ||||
| NET INCOME (LOSS) PER SHARE ATTRIBUTABLE TO COMMON STOCKHOLDERS: | ||||||||||||
| BASIC | $ | 3.14 | $ | (4.28 | ) | $ | (15.35 | ) | ||||
| DILUTED | $ | 3.14 | $ | (4.28 | ) | $ | (15.35 | ) | ||||
| WEIGHTED-AVERAGE SHARES USED TO COMPUTE NET INCOME (LOSS) PER SHARE | ||||||||||||
| ATTRIBUTABLE TO COMMON STOCKHOLDERS: | ||||||||||||
| BASIC | 13,607,840 | 11,770,848 | 7,762,891 | |||||||||
| DILUTED | 13,607,840 | 11,770,848 | 7,762,891 | |||||||||
|
|
||||||
| SELECTED CONSOLIDATED BALANCE SHEET INFORMATION | ||||||
|
AS OF |
||||||
| (IN THOUSANDS) | ||||||
| (Unaudited) | ||||||
|
|
December 31, | |||||
| 2011 | 2011 | |||||
| Historical | As-Adjusted | |||||
| Cash and cash equivalents | $ | 33,575 | $ | 83,458 | ||
| Total current assets | 146,870 | 196,753 | ||||
| Property, plant and equipment, net | 185,391 | 185,391 | ||||
|
Property, plant and equipment, net - |
46,832 | 46,832 | ||||
| Goodwill | 84,864 | 84,864 | ||||
| Total assets | 484,447 | 536,885 | ||||
| Total current liabilities | 57,086 | 57,086 | ||||
| Preferred stock embedded conversion feature derivatives | 53,822 | - | ||||
| Seneca Holdco liability, at fair value | 11,903 | - | ||||
| Total liabilities | 216,092 | 150,367 | ||||
| Redeemable preferred stock - Series A | 147,779 | - | ||||
| Redeemable preferred stock - Series B | - | 85,733 | ||||
| Total stockholders' equity | 120,576 | 300,785 | ||||
| Total liabilities and equity | 484,447 | 536,885 | ||||
Selected Consolidated Balance Sheet Information (historical and as-adjusted)
The preceding table describes our selected consolidated balance sheet
information as of
Investor Relations:
Senior
Vice President
+1 (310) 954-1123
Gary.Dvorchak@icrinc.com
or
Company:
Chief Financial Officer
+1 (515)
239-8091
Chad.Stone@regi.com
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