Q3 2013 Highlights
REG sold 77.6 million gallons of biodiesel in the third quarter 2013, an
increase of 26% compared to the third quarter of 2012. Revenues of
"We are pleased to report excellent performance in EBITDA, gallons
produced, gallons sold, and revenues, driven by expanded nameplate
production capacity and strong market demand," said
"By July, we had upgraded
Operating Highlights
The 77.6 million gallons of biodiesel sold in the quarter represents record volume for REG. Gallons sold in the quarter included 17 million gallons produced by third parties. The Company produced 56.8 million gallons of biodiesel during the quarter, which included 6.5 million toll manufactured gallons. This compares to 45.4 million gallons year-over-year.
The Company continued to increase and enhance its production
capabilities. REG completed the purchase of a 30 million gallon per year
nameplate capacity biorefinery in
Third Quarter 2013 Financial Results
All figures refer to the quarter ending
During the quarter, the average B100 price per gallon (including RINs)
sold by REG was
Revenues of
Gross profit was
Operating income was
Net income attributable to common stockholders was
Adjusted EBITDA was
The table below summarizes the Company's quarterly results.
REG Q3 2013 Revenues and Adjusted EBITDA Summary | |||||||||||
(dollars and gallons in thousands) | |||||||||||
Q3 13 | Q3 12 |
Y/ |
|||||||||
Gallons sold | 77,626 | 61,699 | 26 | % | |||||||
Average Selling Price | $ | 4.95 | $ | 4.44 | 11 | % | |||||
GAAP Treatment — 2012 BTC Benefit from Q1 2013 (1): |
|||||||||||
Total Revenues | $ | 458,444 | $ | 322,912 | 42 | % | |||||
Adjusted EBITDA | $ | 48,901 | $ | (2,288 | ) | N/M | |||||
Adjusted to allocate 2012 BTC benefit into 2012 results: |
|||||||||||
Adjusted EBITDA | $ | 48,901 | $ | 16,624 | (2) | 194 | % | ||||
Adjusted EBITDA margin | 10.7 | % | 5.1 | % | |||||||
(1) |
On |
||
(2) |
The third quarter 2012 Adjusted EBITDA was |
||
Balance Sheet and Liquidity
At
Accounts receivable was
Total inventory was
Adjusted EBITDA Reconciliation
The Company uses earnings before interest, taxes, depreciation and amortization, adjusted for certain additional items, identified in the table below, or Adjusted EBITDA, as a supplemental performance measure. Adjusted EBITDA is presented in order to assist investors in analyzing performance across reporting periods on a consistent basis by excluding items that not believed to be indicative of core operating performance. Adjusted EBITDA is used to evaluate, assess and benchmark financial performance on a consistent and a comparable basis and as a factor in determining incentive compensation for company executives.
The following table provides Adjusted EBITDA for the periods presented, as well as reconciliation to net income:
Three | Three | Nine | Nine | |||||||||||||
Months | Months | Months | Months | |||||||||||||
Ended | Ended | Ended | Ended | |||||||||||||
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|
|
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(In thousands) | 2013 | 2012 | 2013 | 2012 | ||||||||||||
Net income (loss) | $ | 86,703 | $ | (6,040 | ) | $ | 156,236 | $ | 22,410 | |||||||
Adjustments: | ||||||||||||||||
Income tax expense | (42,051 | ) | (2,165 | ) | 3,452 | 3,669 | ||||||||||
Interest expense | 577 | 1,150 | 1,757 | 3,262 | ||||||||||||
Other income (expense), net | (66 | ) | (56 | ) | (276 | ) | (121 | ) | ||||||||
Change in fair value of Seneca Holdco liability | — | — | — | (349 | ) | |||||||||||
Change in fair value of preferred stock conversion feature embedded derivatives | — | — | — | (11,975 | ) | |||||||||||
Stock issued for glycerin agreement termination | — | — | — | 1,898 | ||||||||||||
Straight-line lease expense | (163 | ) | (31 | ) | (484 | ) | (237 | ) | ||||||||
Depreciation | 2,598 | 2,097 | 6,974 | 6,192 | ||||||||||||
Amortization | (181 | ) | (208 | ) | (571 | ) | (553 | ) | ||||||||
Non-recurring business interruption (1) | — | — | (863 | ) | — | |||||||||||
Stock-based compensation | 1,484 | 2,965 | 3,869 | 12,687 | ||||||||||||
Adjusted EBITDA before 2012 blenders tax credit is allocated into historical results: | 48,901 | (2,288 | ) | 170,094 | 36,883 | |||||||||||
2012 Retroactive blenders tax credit (2) | — | 18,912 | (57,745 | ) | 45,985 | |||||||||||
Adjusted EBITDA | $ | 48,901 | $ | 16,624 | $ | 112,349 | $ | 82,868 | ||||||||
(1) |
Non-recurring business interruption charge at an REG production
facility in |
|
(2) |
On |
|
Adjusted EBITDA is a supplemental performance measure that is not required by, or presented in accordance with, generally accepted accounting principles, or GAAP. Adjusted EBITDA should not be considered as an alternative to net income or any other performance measure derived in accordance with GAAP, or as alternatives to cash flows from operating activities or a measure of liquidity or profitability. Adjusted EBITDA has limitations as an analytical tool, and should not be considered in isolation, or as a substitute for any of the results as reported under GAAP. Some of these limitations are:
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. 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,
potential changes in governmental programs requiring or encouraging the
use of biofuels; 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 annual report on Form 10-K, quarterly reports on Forms 10-Q and
other periodic filings with the
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) |
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FOR THE THREE AND NINE MONTHS ENDED |
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(IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS) |
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Three Months | Three Months | Nine Months | Nine Months | |||||||||||||
Ended | Ended | Ended | Ended | |||||||||||||
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2013 | 2012 | 2013 | 2012 | |||||||||||||
REVENUES: | ||||||||||||||||
Biodiesel | $ | 458,429 | $ | 322,873 | $ | 1,107,443 | $ | 782,890 | ||||||||
Services | 15 | 39 | 104 | 196 | ||||||||||||
458,444 | 322,912 | 1,107,547 | 783,086 | |||||||||||||
COSTS OF GOODS SOLD: | ||||||||||||||||
Biodiesel | 400,575 | 320,078 | 912,673 | 732,113 | ||||||||||||
Services | 20 | 43 | 149 | 199 | ||||||||||||
400,595 | 320,121 | 912,822 | 732,312 | |||||||||||||
GROSS PROFIT | 57,849 | 2,791 | 194,725 | 50,774 | ||||||||||||
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES | 12,686 | 9,902 | 33,556 | 33,878 | ||||||||||||
INCOME (LOSS) FROM OPERATIONS | 45,163 | (7,111 | ) | 161,169 | 16,896 | |||||||||||
OTHER INCOME (EXPENSE), NET: | ||||||||||||||||
Change in fair value of preferred stock conversion embedded derivative | — | — | — | 11,975 | ||||||||||||
Change in fair value of Seneca Holdco liability | — | — | — | 349 | ||||||||||||
Other income | 66 | 56 | 276 | 121 | ||||||||||||
Interest expense | (577 | ) | (1,150 | ) | (1,757 | ) | (3,262 | ) | ||||||||
(511 | ) | (1,094 | ) | (1,481 | ) | 9,183 | ||||||||||
INCOME (LOSS) BEFORE INCOME TAXES | 44,652 | (8,205 | ) | 159,688 | 26,079 | |||||||||||
INCOME TAX BENEFIT (EXPENSE) | 42,051 | 2,165 | (3,452 | ) | (3,669 | ) | ||||||||||
NET INCOME (LOSS) | 86,703 | (6,040 | ) | 156,236 | 22,410 | |||||||||||
EFFECTS OF RECAPITALIZATION | — | — | — | 39,107 | ||||||||||||
LESS—ACCRETION OF SERIES A PREFERRED STOCK TO REDEMPTION VALUE | — | — | — | (1,808 | ) | |||||||||||
LESS—CHANGE IN UNDISTRIBUTED DIVIDENDS ALLOCATED TO PREFERRED STOCKHOLDERS | (147 | ) | (862 | ) | (147 | ) | (1,685 | ) | ||||||||
LESS—DISTRIBUTED DIVIDENDS TO PREFERRED STOCKHOLDERS | (258 | ) | — | (1,848 | ) | (1,470 | ) | |||||||||
LESS—EFFECT OF PARTICIPATING PREFERRED STOCK | (6,455 | ) | — | (18,010 | ) | (8,952 | ) | |||||||||
LESS—EFFECT OF PARTICIPATING SHARE-BASED AWARDS | (1,381 | ) | — | (2,273 | ) | (3,145 | ) | |||||||||
NET INCOME (LOSS) ATTRIBUTABLE TO THE COMPANY'S COMMON STOCKHOLDERS | $ | 78,462 | $ | (6,902 | ) | $ | 133,958 | $ | 44,457 | |||||||
NET INCOME (LOSS) PER SHARE ATTRIBUTABLE TO COMMON STOCKHOLDERS: | ||||||||||||||||
BASIC | $ | 2.32 | $ | (0.24 | ) | $ | 4.20 | $ | 1.60 | |||||||
DILUTED | $ | 2.31 | $ | (0.24 | ) | $ | 4.20 | $ | 0.28 | |||||||
WEIGHTED AVERAGE SHARES USED TO COMPUTE NET INCOME (LOSS) PER SHARE ATTRIBUTABLE TO COMMON STOCKHOLDERS: | ||||||||||||||||
BASIC | 33,790,034 | 29,292,349 | 31,918,951 | 27,729,676 | ||||||||||||
DILUTED | 34,016,476 | 29,292,349 | 31,924,197 | 33,676,699 | ||||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) |
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AS OF |
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(IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS) |
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|
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2013 | 2012 | |||||||
ASSETS | ||||||||
CURRENT ASSETS: | ||||||||
Cash and cash equivalents | $ | 135,883 | $ | 66,785 | ||||
Accounts receivable, net | 66,621 | 18,768 | ||||||
Inventories | 59,887 | 45,206 | ||||||
Deferred income taxes | — | 2,512 | ||||||
Prepaid expenses and other assets | 39,985 | 15,812 | ||||||
Total current assets | 302,376 | 149,083 | ||||||
PROPERTY, PLANT AND EQUIPMENT, NET | 280,907 | 242,885 | ||||||
PROPERTY, PLANT AND EQUIPMENT, NET—VARIABLE INTEREST ENTITY | 5,233 | 5,405 | ||||||
GOODWILL | 84,864 | 84,864 | ||||||
DEFERRED INCOME TAXES | 22 | 969 | ||||||
OTHER ASSETS | 12,392 | 12,578 | ||||||
TOTAL ASSETS | $ | 685,794 | $ | 495,784 | ||||
LIABILITIES AND EQUITY | ||||||||
CURRENT LIABILITIES: | ||||||||
Current maturities of notes payable | $ | 22,020 | $ | 4,955 | ||||
Current maturities of notes payable—variable interest entity | 296 | 283 | ||||||
Accounts payable | 51,650 | 28,131 | ||||||
Accrued expenses and other liabilities | 10,156 | 6,475 | ||||||
Deferred income taxes | 5,413 | — | ||||||
Deferred revenue | 987 | — | ||||||
Total current liabilities | 90,522 | 39,844 | ||||||
UNFAVORABLE LEASE OBLIGATION | 8,188 | 9,035 | ||||||
NOTES PAYABLE | 9,366 | 27,776 | ||||||
NOTES PAYABLE—VARIABLE INTEREST ENTITY | 3,806 | 4,030 | ||||||
OTHER LIABILITIES | 6,945 | 7,292 | ||||||
Total liabilities | 118,827 | 87,977 | ||||||
COMMITMENTS AND CONTINGENCIES (Note 14) | ||||||||
SERIES B PREFERRED STOCK ( |
14,564 | 83,043 | ||||||
EQUITY: | ||||||||
Company stockholders' equity: | ||||||||
Common stock ( |
4 | 3 | ||||||
Common stock—additional paid-in-capital | 347,397 | 273,989 | ||||||
Warrants—additional paid-in-capital | 147 | 147 | ||||||
Retained earnings | 208,211 | 53,823 | ||||||
Total paid-in-capital and retained earnings | 555,759 | 327,962 | ||||||
Treasury stock (484,660 and 462,985 shares outstanding at |
(3,356 | ) | (3,198 | ) | ||||
Total stockholders' equity | 552,403 | 324,764 | ||||||
TOTAL LIABILITIES AND EQUITY | $ | 685,794 | $ | 495,784 | ||||
Investor Relations:
Senior Vice President
gary.dvorchak@icrinc.com
or
Company:
Chief Financial
Officer
Chad.Stone@regi.com
Source:
News Provided by Acquire Media