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Key Achievements
For the quarter ended
"During our first quarter as a publicly traded company,
Operating Highlights
REG produced 39 million gallons of biodiesel in the first quarter of 2012, compared to 20 million gallons in the same period in 2011. REG sold 34 million gallons of biodiesel in the first quarter of 2012, an increase of 69% compared to the same period in 2011. Five million gallons that were produced and shipped in January and February will be recognized in the second quarter of 2012 in accordance with GAAP revenue recognition rules. The year over year increase in gallons sold was primarily due to an increase in biodiesel demand compared to the same period in 2011 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. RFS2 specifies the consumption of 1 billion gallons of biodiesel in 2012, compared to 800 million in 2011.
After receiving the proceeds of an initial public offering of common
stock in January, REG purchased the previously-leased facility in
First Quarter 2012 Financial Results
Revenues for the first quarter of 2012 were
Adjusted EBITDA, defined as earnings before interest, taxes,
depreciation and amortization and further adjusted for certain items
identified below under "Adjusted EBITDA Reconciliation", grew 140% year
over year to
The table below summarizes REG's results for Q1 2012:
| REG Q1 2012 Revenue and Adjusted EBITDA Summary | ||||||||||||||
| (dollars and gallons in thousands except per gallon data) | ||||||||||||||
| Y/Y | ||||||||||||||
|
Q1 2012 |
Q1 2011 |
Growth |
||||||||||||
| Gallons sold | 34,087 | 20,117 | +69 | % | ||||||||||
| Revenues | $ | 188,247 | $ | 104,435 | +80 | % | ||||||||
| Adjusted EBITDA | $ | 12,719 | $ | 5,297 | +140 | % | ||||||||
| Adjusted EBITDA Margin | 6.76 | % | 5.07 | % | ||||||||||
Balance Sheet and Liquidity
At
Inventories at
In connection with our IPO in January, we converted the Series A
Preferred that was on our balance sheet at
Adjusted EBITDA Reconciliation
REG presents Adjusted EBITDA because the company 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 the company'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.
| Three Months Ended | ||||||||||
|
|
||||||||||
| (In thousands) | 2012 | 2011 | ||||||||
| Net income | $ | 14,017 | $ | 3,736 | ||||||
| Adjustments: | ||||||||||
| Loss from equity investments | - | 65 | ||||||||
| Income tax expense | 1,363 | - | ||||||||
| Interest expense | 1,053 | 1,708 | ||||||||
| Other income (expense), net | (37 | ) | (275 | ) | ||||||
| Change in fair value of Seneca Holdco liability | (349 | ) | (727 | ) | ||||||
| Change in fair value of preferred stock conversion | ||||||||||
| feature embedded derivatives | (11,975 | ) | (2,557 | ) | ||||||
| Stock issued for glycerin agreement termination | 1,898 | - | ||||||||
| Straight-line lease expense | (102 | ) | 798 | |||||||
| Depreciation | 2,026 | 1,689 | ||||||||
| Amortization | (139 | ) | (130 | ) | ||||||
| Non-cash stock compensation | 4,964 | 990 | ||||||||
| Adjusted EBITDA | $ | 12,719 | $ | 5,297 | ||||||
First Quarter Conference Call
REG will sponsor a conference call to discuss results today at
Investors in the U.S. interested in participating in the live call
should dial +1 (877) 810-3368 and enter passcode: 73769812. Those
calling from outside the U.S. should dial +1 (760) 298-5082 and use the
same passcode: 73769812. A telephone replay will be available
approximately two hours after the call concludes through
A simultaneous live webcast will be available on the Investor Relations section of the Company's website at http://investor.regi.com/. The webcast will be archived on the website for one year.
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 REG's public filings with
the
|
|
||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) | ||||||||||
|
FOR THE THREE MONTHS ENDED |
||||||||||
| (IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS) | ||||||||||
| Three Months | Three Months | |||||||||
| Ended | Ended | |||||||||
|
|
March 31, | |||||||||
| 2012 | 2011 | |||||||||
| REVENUES: | ||||||||||
| Biodiesel sales | $ | 182,780 | $ | 100,074 | ||||||
| Biodiesel government incentives | 5,387 | 4,340 | ||||||||
| 188,167 | 104,414 | |||||||||
| Services | 80 | 21 | ||||||||
| 188,247 | 104,435 | |||||||||
| COSTS OF GOODS SOLD: | ||||||||||
| Biodiesel | 171,136 | 96,189 | ||||||||
| Services | 77 | 18 | ||||||||
| 171,213 | 96,207 | |||||||||
| GROSS PROFIT | 17,034 | 8,228 | ||||||||
| SELLING, GENERAL, AND ADMINISTRATIVE EXPENSES | 12,962 | 6,278 | ||||||||
| INCOME FROM OPERATIONS | 4,072 | 1,950 | ||||||||
| OTHER INCOME (EXPENSE), NET: | ||||||||||
| Change in fair value of preferred stock conversion feature embedded derivatives | 11,975 | 2,557 | ||||||||
| Change in fair value of Seneca Holdco liability | 349 | 727 | ||||||||
| Other income (expense), net | 37 | 275 | ||||||||
|
Interest expense (includes related party amounts of |
(1,053 | ) | (1,708 | ) | ||||||
| 11,308 | 1,851 | |||||||||
|
INCOME BEFORE INCOME TAXES AND LOSS FROM EQUITY INVESTMENTS |
15,380 | 3,801 | ||||||||
| INCOME TAX EXPENSE | (1,363 | ) | - | |||||||
| LOSS FROM EQUITY INVESTMENTS | - | (65 | ) | |||||||
| NET INCOME | 14,017 | 3,736 | ||||||||
| EFFECTS OF RECAPITALIZATION | 39,107 | - | ||||||||
| LESS - ACCRETION OF SERIES A PREFERRED STOCK TO REDEMPTION VALUE | (1,808 | ) | (5,896 | ) | ||||||
|
LESS - UNDISTRIBUTED DIVIDENDS ALLOCATED TO PREFERRED STOCKHOLDERS |
(1,451 | ) | (3,061 | ) | ||||||
| LESS - EFFECT OF PARTICIPATING PREFERRED STOCK | (7,615 | ) | - | |||||||
| LESS - EFFECT OF PARTICIPATING SHARE-BASED AWARDS | (2,201 | ) | - | |||||||
| NET INCOME (LOSS) ATTRIBUTABLE TO THE COMPANY'S COMMON STOCKHOLDERS | $ | 40,049 | $ | (5,221 | ) | |||||
| NET INCOME (LOSS) PER SHARE ATTRIBUTABLE TO COMMON STOCKHOLDERS: | ||||||||||
|
|
$ | 1.60 | $ | (0.39 | ) | |||||
| DILUTED | $ | 0.06 | $ | (0.39 | ) | |||||
|
|
||||||||||
|
WEIGHTED-AVERAGE SHARES USED TO COMPUTE NET INCOME (LOSS) PER SHARE TO COMMON STOCKHOLDERS: |
||||||||||
|
|
25,074,194 | 13,259,018 | ||||||||
| DILUTED | 30,917,291 | 13,259,018 | ||||||||
|
|
||||||||
| SELECTED CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) | ||||||||
|
AS OF |
||||||||
| (IN THOUSANDS) | ||||||||
|
|
December 31, | |||||||
| 2012 | 2011 | |||||||
| Historical | Historical | |||||||
| ASSETS | ||||||||
| Cash and cash equivalents | $ | 75,157 | $ | 33,575 | ||||
| Total current assets | 219,132 | 150,022 | ||||||
| Property, plant and equipment, net (including variable interest entities) | 232,459 | 232,223 | ||||||
| Goodwill | 84,864 | 84,864 | ||||||
| Total assets | 553,675 | 484,447 | ||||||
| LIABILITIES AND EQUITY | ||||||||
| Current maturities of notes payable (including variable interest entities) | 30,076 | 8,473 | ||||||
| Total current liabilities | 92,710 | 59,862 | ||||||
| Preferred stock embedded conversion feature derivatives | - | 53,822 | ||||||
| Seneca Holdco liability, at fair value | - | 11,903 | ||||||
| Long-term notes payable (including variable interest entities) | 50,413 | 73,079 | ||||||
| Total liabilities | 160,639 | 216,092 | ||||||
| Redeemable preferred stock - Series A | - | 147,779 | ||||||
| Redeemable preferred stock - Series B | 83,165 | - | ||||||
| Total stockholders' equity | 309,871 | 120,576 | ||||||
| Total liabilities and equity | 553,675 | 484,447 | ||||||
Selected Condensed Consolidated Balance Sheet
Information (historical)
The preceding table describes
our selected condensed consolidated balance sheet information as of
Investor Relations:
Senior Vice President
Gary.Dvorchak@icrinc.com
or
Company:
Chief Financial Officer
Chad.Stone@regi.com
Source:
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