Delicious
Digg
Facebook
LinkedIn
Twitter
Key Achievements
Revenue for the second quarter was
"As expected, our growth continued in our second quarter of 2012," said
Operating Highlights
REG produced 43 million gallons of biodiesel in the second quarter of 2012, compared to 33 million gallons in the same period in 2011. REG sold 54 million gallons of biodiesel in the second quarter, an increase of 63% compared to the same period in 2011, excluding tolled gallons. The year over year increase in gallons sold was primarily due to increased production capacity online and 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") program. RFS2 specifies the consumption of 1 billion gallons of biodiesel in 2012, compared to 800 million in 2011.
The company expanded its distribution capabilities by opening three terminals. In early June, the company announced new terminal capabilities at its partially-completed biorefinery in
The company also benefited this quarter from an additional 50 million gallons of annual capacity becoming available in combination from both the Albert Lea facility, which was purchased in
Second Quarter 2012 Financial Results
Revenues for the second quarter 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 3% year over year to
The table below summarizes REG's results for Q2 2012:
|
REG Q2 2012 Revenue and Adjusted EBITDA Summary (dollars and gallons in thousands except per gallon data) |
|||
| Y/Y | |||
| Q2 2012 | Q2 2011 | Growth | |
| Gallons sold | 54,239 | 33,300 | +63% |
| Revenues | $271,927 | $196,312 | +39% |
| Adjusted EBITDA |
|
$25,770 | +3% |
| Adjusted EBITDA Margin | 9.7% | 13.1% | |
Balance Sheet and Liquidity
At
Inventories 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 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 | Six Months Ended | |||
|
|
|
|||
| (In thousands) | 2012 | 2011 | 2012 | 2011 |
| Net income | $ 14,433 | $ (948) | $ 28,450 | $ 2,787 |
| Adjustments: | ||||
| Loss from equity investments | -- | 83 | -- | 148 |
| Income tax expense | 4,471 | -- | 5,834 | -- |
| Interest expense | 1,059 | 1,751 | 2,112 | 3,459 |
| Other income (expense), net | (28) | (200) | (65) | (474) |
| Change in fair value of Seneca Holdco liability | -- | 2,250 | (349) | 1,523 |
| Change in fair value of preferred stock conversion feature embedded derivatives | -- | 19,645 | (11,975) | 17,088 |
| Expense settled with stock issuance | -- | -- | 1,898 | -- |
| Straight-line lease expense | (104) | 618 | (206) | 1,416 |
| Depreciation | 2,069 | 1,705 | 4,095 | 3,394 |
| Amortization | (206) | (124) | (345) | (254) |
| Non-cash stock compensation | 4,758 | 990 | 9,722 | 1,980 |
| Adjusted EBITDA | $ 26,452 | $ 25,770 | $ 39,171 | $ 31,067 |
Second 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: 98129516. Those calling from outside the U.S. should dial +1 (760) 298-5082 and use the same passcode: 98129516. 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 company'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. 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 AND SIX MONTHS ENDED |
||||
| (IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS) | ||||
| Three Months | Three Months | Six Months | Six Months | |
| Ended | Ended | Ended | Ended | |
|
|
|
|
|
|
| 2012 | 2011 | 2012 | 2011 | |
| REVENUES: | ||||
| Biodiesel sales | $ 271,035 | $ 184,347 | $ 453,815 | $ 284,421 |
| Biodiesel government incentives | 815 | 11,926 | 6,202 | 16,266 |
| 271,850 | 196,273 | 460,017 | 300,687 | |
| Services | 77 | 39 | 157 | 60 |
| 271,927 | 196,312 | 460,174 | 300,747 | |
| COSTS OF GOODS SOLD: | ||||
| Biodiesel | 240,899 | 165,895 | 412,035 | 262,084 |
| Services | 79 | 24 | 156 | 42 |
| 240,978 | 165,919 | 412,191 | 262,126 | |
| GROSS PROFIT | 30,949 | 30,393 | 47,983 | 38,621 |
| SELLING, GENERAL, AND ADMINISTRATIVE EXPENSES | 11,014 | 7,812 | 23,976 | 14,090 |
| INCOME FROM OPERATIONS | 19,935 | 22,581 | 24,007 | 24,531 |
| OTHER INCOME (EXPENSE), NET: | ||||
| Change in fair value of preferred stock conversion feature embedded derivatives | -- | (19,645) | 11,975 | (17,088) |
| Change in fair value of Seneca Holdco liability | -- | (2,250) | 349 | (1,523) |
| Other income (expense), net | 28 | 200 | 65 | 474 |
| Interest expense | (1,059) | (1,751) | (2,112) | (3,459) |
| (1,031) | (23,446) | 10,277 | (21,596) | |
| INCOME (LOSS) BEFORE INCOME TAXES AND LOSS FROM EQUITY INVESTMENTS | 18,904 | (865) | 34,284 | 2,935 |
| INCOME TAX EXPENSE | (4,471) | -- | (5,834) | -- |
| LOSS FROM EQUITY INVESTMENTS | -- | (83) | -- | (148) |
| NET INCOME (LOSS) | 14,433 | (948) | 28,450 | 2,787 |
| EFFECTS OF RECAPITALIZATION | -- | -- | 39,107 | -- |
| LESS - ACCRETION OF SERIES A PREFERRED STOCK TO REDEMPTION VALUE | -- | (6,180) | (1,808) | (12,076) |
| LESS - CHANGE IN UNDISTRIBUTED DIVIDENDS ALLOCATED TO PREFERRED STOCKHOLDERS | 628 | (3,185) | (823) | (6,246) |
| LESS - DISTRIBUTED DIVIDENDS TO PREFERRED STOCKHOLDERS | (1,470) | -- | (1,470) | -- |
| LESS - EFFECT OF PARTICIPATING PREFERRED STOCK | (1,337) | -- | (8,952) | -- |
| LESS - EFFECT OF PARTICIPATING SHARE-BASED AWARDS | (944) | -- | (3,145) | -- |
| NET INCOME (LOSS) ATTRIBUTABLE TO THE COMPANY'S COMMON STOCKHOLDERS | $ 11,310 | $ (10,313) | $ 51,359 | $ (15,535) |
| Net income (loss) per share attributable to common stockholders: | ||||
| Basic | $ 0.39 | $ (0.78) | $ 1.91 | $ (1.17) |
| Diluted | $ 0.39 | $ (0.78) | $ 0.47 | $ (1.17) |
| Weighted-average shares used to compute net income (loss) per share attributable to common stockholders: | ||||
| Basic | 28,822,486 | 13,276,992 | 26,948,340 | 13,268,055 |
| Diluted | 28,822,486 | 13,276,992 | 32,869,382 | 13,268,055 |
|
|
||
| SELECTED CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) | ||
|
AS OF |
||
| (IN THOUSANDS) | ||
|
|
|
|
| 2012 | 2011 | |
| ASSETS | ||
| Cash and cash equivalents | $ 87,050 | $ 33,575 |
| Total current assets | 220,220 | 150,022 |
| Property, plant and equipment (including variable interest entities) | 232,589 | 232,223 |
| Goodwill | 84,864 | 84,864 |
| TOTAL ASSETS | 552,507 | 484,477 |
| LIABILITIES AND EQUITY | ||
| Current maturities of notes payable (including variable interest entities) | 27,918 | 8,473 |
| Total current liabilities | 76,491 | 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) | 48,172 | 73,079 |
| Total liabilities | 141,750 | 216,092 |
| Redeemable preferred stock - Series A | -- | 147,779 |
| Redeemable preferred stock - Series B | 83,165 | -- |
| Total stockholders' equity | 327,592 | 120,576 |
| TOTAL LIABILITIES AND EQUITY | 552,507 | 484,447 |
Selected Condensed Consolidated Balance Sheet Information (historical)
The preceding table describes our selected condensed consolidated balance sheet information as of
CONTACT: Investor Relations:
ICR, LLC
Gary Dvorchak , CFA
Senior Vice President
+1 (310) 954-1123
Gary.Dvorchak@icrinc.com
Company:
Renewable Energy Group
Chad Stone
Chief Financial Officer
+1 (515) 239-8091
Chad.Stone@regi.com
Source: News Provided by Acquire Media
Yahoo! Buzz