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Key Achievements
Revenues for the fourth quarter were
Revenues for the full year 2012 were
"2012 was an excellent year for REG and positions us well for 2013,"
said
"We strengthened our financial position both through the IPO and substantial cash flow generation. This enabled us to increase our cash balance while continuing to invest in plant modernization and pay down debt," continued Oh.
"We enter 2013 as one of the stronger players in the biodiesel industry. Both the 2013 RVO and the extension of the blenders tax credit lead us to anticipate industry growth of nearly 30% this year. We intend to protect our market share and capture a portion of this growth."
Operating Highlights
REG produced 36 million gallons of biodiesel in the fourth quarter of 2012, compared to 43 million gallons in the same period in 2011. REG sold 38 million gallons of biodiesel in the fourth quarter, a decrease of 19% compared to the same period in 2011. The decrease in Q4 2012 as compared to 2011 is the result of the expiration of the blenders tax credit and RVO requirements making Q4 2011 unusually strong.
For the full year 2012, REG produced 163 million gallons of biodiesel, compared to 135 million gallons in the same period in 2011. REG sold 188 million gallons of biodiesel in 2012, an increase of 25% compared to the same period in 2011.
During the quarter, REG executed its plan to grow its domestic
distribution footprint by acquiring two additional biorefineries and
entering into distribution relationships creating a large biodiesel
terminal network in
On
On
On
The fourth quarter capacity acquisitions and distribution deals extended
the expansive footprint that REG built throughout the year. Earlier in
2012, the company announced new terminal distribution from its own REG
Fourth Quarter 2012 Financial Results
Revenues for the fourth 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", decreased 54%
year—over-year to
Investors are cautioned that this allocation is an estimate made by the company as an aid to comparing results with prior periods. The allocation is an approximation of the amount of the benefit that might have been received if the blenders tax credit were in force at the time. The blenders tax credit benefit is allocated based upon gallons sold for each quarter. The allocation for each quarter of 2012 is presented in the table below that reconciles GAAP results to Adjusted EBITDA.
The table below summarizes REG's results for Q4 2012:
| REG Q4 2012 Revenue and Adjusted EBITDA Summary | ||||||||||
| (dollars and gallons in thousands) | ||||||||||
|
Q4 2012 |
Q4 2011 |
Change |
||||||||
| Gallons sold | 38,376 | 47,512 | -19% | |||||||
|
Revenues |
|
|
-13% |
|||||||
| Adjusted EBITDA |
|
|
-54% | |||||||
| Adjusted EBITDA Margin | 5.9% | 11.1% | ||||||||
Full Year 2012 Financial Results
Revenue for 2012 was
Adjusted EBITDA was
After the close of the fourth quarter, the American Taxpayer Relief Act
of 2012 reinstated the federal biodiesel blenders tax credit for 2013
and retroactively reinstated the credit for 2012. The retroactive credit
for 2012 is expected to result in a net benefit to REG of approximately
The tables below summarize the quarterly and year end results for 2012 and 2011, as well as adjusted EBITDA for 2012.
| REG Annual Results Summary | |||||||||||
| (dollars and gallons in thousands except per gallon data) | |||||||||||
|
Q1 |
Q2 |
Q3 |
Q4 |
Year |
|||||||
| Gallons sold 2012 | 34,087 | 54,239 | 61,699 | 38,376 | 188,401 | ||||||
| Gallons sold 2011 | 20,117 | 37,981 | 44,217 | 47,512 | 149,827 | ||||||
| Y/Y Growth | 69.4% | 42.8% | 39.5% | -19.2% | 25.7% | ||||||
| Average B100 sales price per gallon 2012 |
|
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| Average B100 sales price per gallon 2011 |
|
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| Total Revenue 2012 |
|
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| Total Revenue 2011 |
|
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|
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||||||
| Y/Y Growth | 80.3% | 38.5% | 25.9% | -13.1% | 23.2% | ||||||
|
Adjusted EBITDA 2012 |
|
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|
||||||
| Adjusted EBITDA 2011 |
|
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|
|
|
||||||
| Y/Y Growth | 337.4% | 67.2% | -64.4% | -53.8% | -10.1% | ||||||
|
Adjusted EBITDA margin 2012 |
12.3% |
15.8% |
5.1% |
5.9% |
9.5% | ||||||
|
Adjusted EBITDA margin 2011 |
5.1% | 13.1% | 18.2% | 11.1% | 13.0% | ||||||
Balance Sheet and Liquidity
At
On
REG also announced that its subsidiary
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 includes the portion of the blenders tax credit that was earned for its performance in 2012 but will not be recognized until 2013 as discussed above. 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.
|
Full Year |
Full Year |
||||||||||||||||||||||||||||||||||||||||
| (In thousands) |
1Q-2012 |
2Q-2012 |
3Q-2012 |
4Q-2012 |
2012 |
1Q-2011 |
2Q-2011 |
3Q-2011 |
4Q-2011 |
2011 |
|||||||||||||||||||||||||||||||
| Net income (loss) | $ | 14,017 | $ | 14,433 | $ | (6,040 | ) | $ | (151 | ) | $ | 22,259 | $ | 3,736 | $ | (948 | ) | $ | (2,007 | ) | $ | 88,088 | $ | 88,869 | |||||||||||||||||
| Adjustments: | |||||||||||||||||||||||||||||||||||||||||
| (Income) loss from equity investments | - | - | - | - | - | 65 | 83 | (649 | ) | 59 | (442 | ) | |||||||||||||||||||||||||||||
| Income tax (benefit) expense | 1,363 | 4,471 | (2,165 | ) | (2,215 | ) | 1,454 | - | - | 4,752 | (1,770 | ) | 2,982 | ||||||||||||||||||||||||||||
| Interest expense | 1,053 | 1,059 | 1,150 | 1,417 | 4,679 | 1,708 | 1,751 | 2,183 | 2,453 | 8,095 | |||||||||||||||||||||||||||||||
| Other (income) expense, net | (37 | ) | (28 | ) | (56 | ) | (46 | ) | (167 | ) | (275 | ) | (200 | ) | (239 | ) | (216 | ) | (930 | ) | |||||||||||||||||||||
| Change in fair value of Seneca Holdco liability | (349 | ) | - | - | - | (349 | ) | (727 | ) | 2,250 | 977 | (403 | ) | 2,097 | |||||||||||||||||||||||||||
|
Change in fair value of preferred stock conversion feature embedded derivatives |
(11,975 | ) | - | - | - | (11,975 | ) | (2,557 | ) | 19,645 | 38,483 | (63,510 | ) | (7,939 | ) | ||||||||||||||||||||||||||
| Stock issued for glycerin agreement termination | 1,898 | - | - | - | 1,898 | - | - | - | - | - | |||||||||||||||||||||||||||||||
| Straight-line lease expense | (102 | ) | (104 | ) | (31 | ) | (51 | ) | (288 | ) | 798 | 618 | 393 | 93 | 1,902 | ||||||||||||||||||||||||||
| Depreciation | 2,026 | 2,069 | 2,097 | 1,832 | 8,024 | 1,689 | 1,705 | 1,851 | 1,939 | 7,184 | |||||||||||||||||||||||||||||||
| Amortization | (139 | ) | (206 | ) | (208 | ) | (200 | ) | (753 | ) | (130 | ) | (124 | ) | (97 | ) | (100 | ) | (451 | ) | |||||||||||||||||||||
| Non-recurring business interruption | - | - | - | 863 | 863 | - | - | - | - | - | |||||||||||||||||||||||||||||||
| Blenders tax credit | 10,448 | 16,625 | 18,912 | 11,760 | 57,745 | - | - | - | - | - | |||||||||||||||||||||||||||||||
| Non-cash stock compensation | 4,964 | 4,758 | 2,965 | 432 | 13,119 | 990 | 990 | 1,067 | 2,887 | 5,934 | |||||||||||||||||||||||||||||||
| Adjusted EBITDA | $ | 23,167 | $ | 43,077 | $ | 16,624 | $ | 13,641 | $ | 96,509 | $ | 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
Investors in the U.S. interested in participating in the live call
should dial +1 (877) 810-3368 and enter pass code: 93273156. Those
calling from outside the U.S. should dial +1 (760) 298-5082 and use the
same pass code: 93273156. A telephone replay will be available
approximately two hours after the call concludes through
About
Renewable Energy Group® is a leading North American biodiesel producer
with a nationwide distribution and logistics system. Utilizing an
integrated value chain model,
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 and reinforce food security. REG-9000® branded biodiesel is distributed in most states in the U.S.
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 growth in the biodiesel industry
and the timing for commencement of operations at the recently acquired
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| CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||
|
FOR THE YEARS ENDED |
|||||||||||||||
| (IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS) | |||||||||||||||
| (Unaudited) | |||||||||||||||
| 2012 | 2011 | 2010 | |||||||||||||
| REVENUES: | |||||||||||||||
| Biodiesel sales | $ | 1,006,471 | $ | 757,987 | $ | 207,902 | |||||||||
| Biodiesel government incentives | 8,326 | 65,822 | 7,240 | ||||||||||||
| 1,014,797 | 823,809 | 215,142 | |||||||||||||
| Services | 237 | 222 | 1,313 | ||||||||||||
| 1,015,034 | 824,031 | 216,455 | |||||||||||||
| COSTS OF GOODS SOLD: | |||||||||||||||
| Biodiesel | 956,448 | 696,622 | 194,016 | ||||||||||||
| Services | 263 | 198 | 807 | ||||||||||||
| 956,711 | 696,820 | 194,823 | |||||||||||||
| GROSS PROFIT | 58,323 | 127,211 | 21,632 | ||||||||||||
| SELLING, GENERAL, AND ADMINISTRATIVE EXPENSES | 42,422 | 34,479 | 22,187 | ||||||||||||
| IMPAIRMENT OF ASSETS | - | - | 7,494 | ||||||||||||
| INCOME (LOSS) FROM OPERATIONS | 15,901 | 92,732 | (8,049 | ) | |||||||||||
| OTHER INCOME (EXPENSE), NET: | |||||||||||||||
| Change in fair value of preferred stock conversion feature embedded derivatives | 11,975 | 7,939 | (8,208 | ) | |||||||||||
| Change in fair value of Seneca Holdco liability | 349 | (2,097 | ) | (4,179 | ) | ||||||||||
| Other income | 167 | 930 | 1,625 | ||||||||||||
| Interest expense | (4,679 | ) | (8,095 | ) | (4,940 | ) | |||||||||
| Impairment of investments | - | - | (400 | ) | |||||||||||
| 7,812 | (1,323 | ) | (16,102 | ) | |||||||||||
|
INCOME (LOSS) BEFORE INCOME TAXES AND INCOME (LOSS) FROM EQUITY INVESTMENTS |
23,713 | 91,409 | (24,151 | ) | |||||||||||
| INCOME TAX BENEFIT (EXPENSE) | (1,454 | ) | (2,982 | ) | 3,252 | ||||||||||
| INCOME (LOSS) FROM EQUITY INVESTMENTS | - | 442 | (689 | ) | |||||||||||
| NET INCOME (LOSS) | 22,259 | 88,869 | (21,588 | ) | |||||||||||
| EFFECTS OF RECAPITALIZATION | 39,107 | - | 8,521 | ||||||||||||
| LESS - ACCRETION OF SERIES A PREFERRED STOCK TO REDEMPTION VALUE | (1,808 | ) | (25,343 | ) | (27,239 | ) | |||||||||
| LESS - CHANGES IN UNDISTRIBUTED DIVIDENDS ALLOCATED TO PREFERRED STOCKHOLDERS | (823 | ) | (12,723 | ) | (10,027 | ) | |||||||||
| LESS - DISTRIBUTED DIVIDENDS TO PREFERRED STOCKHOLDERS | (3,156 | ) | - | - | |||||||||||
| LESS - EFFECT OF PARTICIPATING PREFERRED STOCK | (8,952 | ) | (4,186 | ) | - | ||||||||||
| LESS - EFFECT OF PARTICIPATING SHARE-BASED AWARDS | (3,145 | ) | (3,864 | ) | - | ||||||||||
| NET INCOME (LOSS) ATTRIBUTABLE TO THE COMPANY'S COMMON STOCKHOLDERS | $ | 43,482 | $ | 42,753 | $ | (50,333 | ) | ||||||||
| NET INCOME (LOSS) PER SHARE ATTRIBUTABLE TO COMMON STOCKHOLDERS: | |||||||||||||||
| BASIC | $ | 1.53 | $ | 3.14 | $ | (4.28 | ) | ||||||||
| DILUTED | $ | 0.27 | $ | 3.14 | $ | (4.28 | ) | ||||||||
|
WEIGHTED-AVERAGE SHARES USED TO COMPUTE NET INCOME (LOSS) PER SHARE ATTRIBUTABLE TO COMMON STOCKHOLDERS: |
|||||||||||||||
| BASIC | 28,381,676 | 13,607,840 | 11,770,848 | ||||||||||||
| DILUTED | 34,340,466 | 13,607,840 | 11,770,848 | ||||||||||||
|
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| CONSOLIDATED BALANCE SHEETS | ||||||||||
|
AS OF |
||||||||||
| (IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS) | ||||||||||
| (Unaudited) | ||||||||||
| 2012 | 2011 | |||||||||
| ASSETS | ||||||||||
| CURRENT ASSETS: | ||||||||||
| Cash and cash equivalents | $ | 66,785 | $ | 33,575 | ||||||
|
Accounts receivable, net (includes amounts owed by related parties
of |
18,768 | 52,833 | ||||||||
| Inventories | 45,206 | 42,110 | ||||||||
| Deferred income taxes | 2,512 | 2,416 | ||||||||
| Prepaid expenses and other assets | 15,812 | 19,088 | ||||||||
| Total current assets | 149,083 | 150,022 | ||||||||
| Property, plant and equipment, net | 242,885 | 185,391 | ||||||||
| Property, plant and equipment, net - variable interest entities | 5,405 | 46,832 | ||||||||
| Goodwill | 84,864 | 84,864 | ||||||||
| Intangible assets, net | 4,609 | 4,438 | ||||||||
| Deferred income taxes | 969 | 4,051 | ||||||||
| Investments | 2,618 | 2,581 | ||||||||
|
Other assets (includes amounts owed by related party of |
5,351 | 6,268 | ||||||||
| TOTAL ASSETS | $ | 495,784 | $ | 484,447 | ||||||
| LIABILITIES AND EQUITY | ||||||||||
| CURRENT LIABILITIES: | ||||||||||
| Revolving line of credit | $ | - | $ | 4,035 | ||||||
| Current maturities of notes payable | 4,955 | 6,427 | ||||||||
| Current maturities of notes payable - variable interest entities | 283 | 2,046 | ||||||||
|
Accounts payable (includes amounts owed to related parties of
|
28,131 | 30,166 | ||||||||
| Accrued expenses and other liabilities | 6,475 | 10,440 | ||||||||
| Deferred revenue | - | 6,748 | ||||||||
| Total current liabilities | 39,844 | 59,862 | ||||||||
| Unfavorable lease obligation | 9,035 | 10,164 | ||||||||
| Preferred stock embedded conversion feature derivatives | - | 53,822 | ||||||||
|
Seneca |
- | 11,903 | ||||||||
|
Notes payable (includes amounts owed to related parties of |
27,776 | 34,327 | ||||||||
| Notes payable - variable interest entities | 4,030 | 38,752 | ||||||||
| Other liabilities | 7,292 | 7,262 | ||||||||
| Total liabilities | 87,977 | 216,092 | ||||||||
| COMMITMENTS AND CONTINGENCIES (NOTE 22) | ||||||||||
|
|
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|
Series A preferred stock ( |
- | 147,779 | ||||||||
|
Series B preferred stock ( |
83,043 | - | ||||||||
| EQUITY: | ||||||||||
| Company stockholders' equity: | ||||||||||
|
Common stock ( |
3 | - | ||||||||
|
Class A Common stock ( |
- | 1 | ||||||||
| Common stock - additional paid-in-capital | 273,989 | 80,747 | ||||||||
| Warrants - additional paid-in-capital | 147 | 3,698 | ||||||||
| Retained earnings | 53,823 | 36,528 | ||||||||
| Total paid-in capital and retained earnings | 327,962 | 120,974 | ||||||||
|
Treasury stock (462,985 and 21,036 shares outstanding as of
|
(3,198 | ) | (398 | ) | ||||||
| Total equity | 324,764 | 120,576 | ||||||||
| TOTAL LIABILITIES AND EQUITY | $ | 495,784 | $ | 484,447 | ||||||
| See notes to consolidated financial statements. | ||||||||||
Investor Relations:
Senior Vice President
gary.dvorchak@icrinc.com
or
Company:
Chief Financial
Officer
Chad.Stone@regi.com
Source:
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