Renewable Energy Group Reports Fourth Quarter and Full Year 2021 Financial Results

Fourth Quarter 2021 Highlights:

  • Revenues of $882 million
  • Net income available to common stockholders of $52 million, or $1.03 per diluted share
  • Adjusted EBITDA of $57 million
  • Acquired Amber Resources, a leading Southern California full-service distributor
  • Entered strategic partnership with Booster to offer mobile delivery of sustainable fuels
  • Carbon reduction of over one million metric tons from fuels produced by REG in the quarter
  • Appointed two new members to REG's Board of Directors

Full Year 2021 Highlights:

  • Record revenues of $3.2 billion
  • Net income available to common stockholders of $212 million, or $4.44 per diluted share
  • Adjusted EBITDA of $285 million
  • Sales of REG Ultra Clean blends of biodiesel with renewable diesel increased 58%
  • Raised a combined $935 million in gross proceeds from equity sale and green bond offering
  • Progressed into construction phase of Geismar improvement and expansion project
  • Carbon reduction of 4.1 million metric tons from fuels produced by REG for the full year
  • Announced global partnership with Manchester United Football Club
  • Record safety achievement: 0.23 OSHA incident rate (industry leading performance)

Post Year 2021 Highlights:

  • Announced strategic investment in expanded low carbon feedstock processing in Europe
  • Launched strategic partnership to advance biodiesel use in marine markets with Bunker Holding Group

AMES, Iowa--(BUSINESS WIRE)-- Renewable Energy Group, Inc. (NASDAQ:REGI) ("REG" or the "Company") today announced its financial results for the fourth quarter and year ended December 31, 2021.

Revenues for the fourth quarter were $882 million on 148 million gallons of fuel sold, and for the full year were $3.2 billion on 621 million gallons. Net income available to common stockholders was $52 million in the fourth quarter of 2021, and was $212 million for full year. Adjusted EBITDA was $57 million in the fourth quarter of 2021, and was $285 million for the full year.

"Delivering a 46% increase in Adjusted EBITDA over 2020 demonstrates ongoing strong growth and further reflects our focus on operational excellence coupled with an exceptional safety achievement," said Cynthia (CJ) Warner, REG President and Chief Executive Officer.

Warner continued, "REG was recently named to the 2022 Carbon Clean200 list by Corporate Knights and As You Sow. As one of only two energy firms making the list, we are proud to be a leader in the transition to sustainability by providing low carbon fuels from renewable resources that help our customers achieve their climate goals NOW."

Fourth Quarter 2021 Highlights

All figures refer to the quarter ended December 31, 2021, unless otherwise noted. All comparisons are to the quarter ended December 31, 2020, unless otherwise noted.

The table below summarizes REG’s financial results for the fourth quarter of 2021.

REG Q4 2021 Results

(dollars and gallons in thousands, except per gallon data)

 

Q4 2021

 

Q4 2020

 

Y/Y Change

 

 

 

 

 

 

Market Data

 

 

 

 

 

B100 (Chicago SME) average price per gallon

$

5.47

 

$

3.34

 

 

63.8

%

NYMEX ULSD average price per gallon

$

2.38

 

$

1.28

 

 

85.9

%

D4 RIN average price per credit

$

1.49

 

$

0.88

 

 

69.3

%

CBOT Soybean oil average price per gallon

$

4.39

 

$

2.74

 

 

60.2

%

HOBO + 1.5xRIN average price per gallon (1)

$

1.22

 

$

0.87

 

 

40.2

%

 

 

 

 

 

 

Gallons sold

 

147,646

 

 

151,359

 

 

(2.5

) %

 

 

 

 

 

 

GAAP

 

 

 

 

 

Total revenues

$

881,744

 

$

547,928

 

 

60.9

%

Risk management gain (loss)

$

2,788

 

$

(19,322

)

 

N/M

 

Operating income

$

43,005

 

$

30,820

 

 

39.5

%

Net income available to common stockholders

$

52,212

 

$

26,685

 

 

95.7

%

 

 

 

 

 

 

Non-GAAP

 

 

 

 

 

Adjusted EBITDA

$

57,271

 

$

46,258

 

 

23.8

%

(1) HOBO = HO NYMEX + 1 - ((CBOT SBO $/lb)/100 x 7.5)

HOBO + RINs = HOBO + 1.5 x D4 RIN as quoted by the Oil Price Information Service.

REG sold 148 million total gallons of fuel, a decrease of 2%. Self-produced North American biodiesel sales were down 9 million gallons driven primarily by the closure of the Company's Houston facility in the quarter and other optimization choices. Self-produced European biodiesel sales were down 3 million gallons due to supply chain issues. Third party renewable diesel sales increased 8 million gallons, due to an increase in the sale of REG Ultra Clean gallons.

REG produced 122 million gallons of biodiesel and renewable diesel, a decrease of 5%. North American biodiesel production decreased 7 million gallons and European biodiesel production decreased 3 million gallons, both due to the same factors described above for volumes sold. Renewable diesel production at our Geismar, Louisiana facility increased 3 million gallons, due to the lapping of unplanned downtime in the fourth quarter of 2020 as well as continued strong run rates.

Revenues increased from $548 million to $882 million, largely driven by higher selling prices from a combination of an 86% increase in ULSD prices and a 69% increase in D4 RIN prices year over year, offset partially by fewer gallons sold.

Gross profit was $84 million compared to gross profit of $66 million in the fourth quarter of last year. The increase in gross profit was driven by a strong HOBO + 1.5x RIN spread, a $20 million increase in LCFS credit monetization due to the Company's downstream strategy, higher raw material trading and co-products gross profit, and a positive $22 million swing in risk management. These increases were partially offset by increased waste-based feedstock costs resulting in margin compression.

Operating income was $43 million compared to $31 million for the fourth quarter of 2020, driven by the same factors as those described above for gross profit, along with higher selling, general and administrative costs of $8 million, primarily due to a one-time bad debt expense write off as well as increases in travel and marketing costs.

Net income available to common stockholders was $52 million, or $1.03 per share, on a fully diluted basis, compared to $27 million, or $0.60 per share on a fully diluted basis, in the fourth quarter of 2020. The factors driving this difference are the same as those described above for operating income along with a $19 million tax benefit that primarily resulted from the release of a valuation allowance reserve in the US related to the Company's Amber Resources acquisition and the release of a valuation allowance in Europe, partially offset by an increase in interest expense from the green bonds.

Adjusted EBITDA was $57 million compared to $46 million, with the increase resulting from the same factors described above.

At December 31, 2021, REG had cash and cash equivalents, restricted cash, and marketable securities (including long-term) of $960 million, an increase of $603 million from December 31, 2020. The increase in cash and cash equivalents is primarily due to the $535 million in funding, net of fees, from the Company's green bond issuance as well the $365 million in funding, net of fees, from the Company's equity raise, offset by cash used to pay off debt, for the Amber Resources acquisition, and for capital expenditures.

At December 31, 2021, accounts receivable were $158 million, an increase of $15 million from December 31, 2020. Accounts payable at the end of the quarter were $163 million, an increase of $30 million versus the previous year. The value of the Company's inventory at the end of the quarter was $454 million, a $244 million increase from the end of the previous year mostly due to rising commodity values.

Full Year 2021 Results

All figures refer to the year ended December 31, 2021, unless otherwise noted. All comparisons are to the year ended December 31, 2020, unless otherwise noted.

REG 2021 Results

(dollars and gallons in thousands, except per gallon data)

 

 

2021

 

 

2020

 

Y/Y Change

Market Data

 

 

 

 

 

B100 (Chicago SME) average price per gallon

$

5.23

 

$

3.04

 

72.0

%

NYMEX ULSD average price per gallon

$

2.07

 

$

1.25

 

65.6

%

D4 RIN average price per credit

$

1.50

 

$

0.64

 

134.4

%

CBOT Soybean oil average price per gallon

$

4.34

 

$

2.34

 

85.5

%

HOBO + 1.5xRIN average price per gallon

$

0.98

 

$

0.86

 

14.0

%

 

 

 

 

 

 

Gallons sold

 

621,328

 

 

650,509

 

(4.5

) %

 

 

 

 

 

 

GAAP

 

 

 

 

 

Total revenues

$

3,244,050

 

$

2,137,148

 

51.8

%

Risk management gain (loss)

$

2,394

 

$

36,931

 

(93.5

) %

Operating income

$

223,485

 

$

126,853

 

76.2

%

Net income available to common stockholders

$

211,691

 

$

120,415

 

75.8

%

 

 

 

 

 

 

Non-GAAP

 

 

 

 

 

Adjusted EBITDA

$

284,947

 

$

195,836

 

45.5

%

REG sold 621 million total gallons, a decrease of 4% compared to 651 million gallons in 2020. North America biodiesel sales declined 27 million gallons, driven largely by optimization choices and the closure of the Houston facility. Lower margin petroleum diesel sales also decreased by 10 million gallons. These volume declines were partially offset by an 18 million gallon increase in the sale of third party renewable diesel gallons, due to an increase in the sale of REG Ultra Clean gallons.

REG gallons produced for the year decreased 7%, from 519 million gallons in 2020 to 480 million gallons in 2021. North American biodiesel production was down 32 million gallons, or 8%, primarily due to Houston shut down and production optimization choices cited above. Renewable diesel production was largely flat year over year in spite of the impact of Hurricane Ida on 2021 production.

Revenues increased from $2.1 billion to $3.2 billion, or 52%. The increase was largely driven by higher selling prices from a combination of a 134% increase in D4 RIN prices and a 66% increase in ULSD prices year over year, partially offset by fewer gallons sold.

Gross profit was $370 million, compared to gross profit of $268 million. The increase in gross profit was driven by a stronger margin environment, various optimization factors, including a $28 million increase in LCFS credit monetization and an improved sales mix, as well as a benefit from opportunistic feedstock sourcing. The HOBO + 1.5x RIN spread was up 14% year-over-year, and the overall margin improvement was reflected in the increase in gross profit from separated RINs, which was up $193 million year over year, mostly due to the price increase but also due to increased RIN monetization through execution of the Company's downstream optimization strategy. The increase in gross profit was partially offset by increased feedstock costs, which worked in tandem with D4 RIN pricing to keep the HOBO + 1.5x RIN spread relatively stable, and risk management gains that were $35 million less than full year 2020.

Operating income was $223 million compared to $127 million for the full-year 2020, driven by the same factors as those described above for gross profit. This increase was partially offset by a $21 million increase in selling, general, and administrative costs, primarily driven by increases in wages and benefits and legal expenses, and a one-time bad debt expense write off.

Net income available to common stockholders was $212 million, or $4.44 per share on a fully diluted basis for 2021, compared to $120 million, or $2.76 per share on a fully diluted basis for 2020. The factors driving this difference are the same as those described above for operating income along with an increase in interest expense from the green bonds and a $14 million tax benefit, that is primarily resulting from the release of a valuation allowance reserve in the U.S. related to the Company's Amber Resources acquisition as well as the release of a valuation allowance in Europe, offsetting overall tax expense through the third quarter.

Adjusted EBITDA was $285 million compared to $196 million, with the increase resulting from the same factors described above.

REG Annual Results Summary

(dollars and gallons in thousands except per gallon data)

 

1Q

 

2Q

 

3Q

 

4Q

 

Year

Gallons sold 2021

 

134,208

 

 

 

163,142

 

 

 

176,331

 

 

 

147,647

 

 

 

621,328

 

Gallons sold 2020

 

139,771

 

 

 

183,160

 

 

 

176,219

 

 

 

151,359

 

 

 

650,509

 

Y/Y Change

 

(4.0

) %

 

 

(10.9

) %

 

 

0.1

%

 

 

(2.5

) %

 

 

(4.5

) %

 

 

 

 

 

 

 

 

 

 

Total revenues 2021

$

539,744

 

 

$

816,220

 

 

$

1,006,342

 

 

$

881,744

 

 

$

3,244,050

 

Total revenues 2020

$

472,957

 

 

$

543,905

 

 

$

572,358

 

 

$

547,928

 

 

$

2,137,148

 

Y/Y Change

 

14.1

%

 

 

50.1

%

 

 

75.8

%

 

 

60.9

%

 

 

51.8

%

 

 

 

 

 

 

 

 

 

 

Net income available to common stockholders 2021

$

38,583

 

 

$

78,787

 

 

$

42,133

 

 

$

52,212

 

 

$

211,691

 

Net income (loss) available to common stockholders 2020

$

73,158

 

 

$

(1,685

)

 

$

22,223

 

 

$

26,685

 

 

$

120,415

 

Y/Y Change

 

(47.3

) %

 

 

N/M

 

 

 

89.6

%

 

 

95.7

%

 

 

75.8

%

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA 2021 (1)

$

56,054

 

 

$

103,130

 

 

$

68,492

 

 

$

57,271

 

 

$

284,947

 

Adjusted EBITDA 2020 (1)

$

88,730

 

 

$

6,161

 

 

$

54,687

 

 

$

46,258

 

 

$

195,836

 

Y/Y Change

 

(36.8

) %

 

 

1,573.9

%

 

 

25.2

%

 

 

23.8

%

 

 

45.5

%

(1) See Adjusted EBITDA Reconciliation below.

Reconciliation of Non - GAAP Measures

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 are not believed to be indicative of core operating performance. Adjusted EBITDA is used by the Company 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 sets forth Adjusted EBITDA for the periods presented, as well as a reconciliation to net income (loss) determined in accordance with GAAP for the applicable period:

(In thousands)

 

 

 

 

 

 

 

 

Year ended
December 31,

 

 

 

 

 

 

 

 

 

Year ended
December 31,

 

1Q-2021

 

2Q-2021

 

3Q-2021

 

4Q-2021

 

 

2021

 

 

1Q-2020

 

2Q-2020

 

3Q-2020

 

4Q-2020

 

 

2020

 

Net income (loss)

$

39,222

 

 

$

79,516

 

 

$

42,467

 

 

$

52,614

 

 

$

213,819

 

 

$

74,667

 

 

$

(1,685

)

 

$

22,663

 

 

$

27,168

 

 

$

122,813

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax (benefit) expense

 

1,633

 

 

 

2,250

 

 

 

652

 

 

 

(19,014

)

 

 

(14,479

)

 

 

1,331

 

 

 

1,630

 

 

 

1,046

 

 

 

1,922

 

 

 

5,929

 

Interest expense

 

1,117

 

 

 

4,271

 

 

 

8,619

 

 

 

7,942

 

 

 

21,949

 

 

 

2,946

 

 

 

1,664

 

 

 

1,544

 

 

 

1,757

 

 

 

7,911

 

Depreciation

 

10,915

 

 

 

11,088

 

 

 

11,098

 

 

 

10,329

 

 

 

43,430

 

 

 

8,934

 

 

 

9,103

 

 

 

9,388

 

 

 

9,890

 

 

 

37,315

 

Amortization of intangible and other assets

 

671

 

 

 

918

 

 

 

876

 

 

 

1,010

 

 

 

3,475

 

 

 

353

 

 

 

318

 

 

 

591

 

 

 

510

 

 

 

1,772

 

EBITDA

 

53,558

 

 

 

98,043

 

 

 

63,712

 

 

 

52,881

 

 

 

268,194

 

 

 

88,231

 

 

 

11,030

 

 

 

35,232

 

 

 

41,247

 

 

 

175,740

 

Gain on sale of assets

 

 

 

 

(39

)

 

 

 

 

 

(1,423

)

 

 

(1,462

)

 

 

 

 

 

(187

)

 

 

 

 

 

(18

)

 

 

(205

)

(Gain) loss on debt extinguishment

 

1,922

 

 

 

2,527

 

 

 

 

 

 

 

 

 

4,449

 

 

 

(1,172

)

 

 

(619

)

 

 

(18

)

 

 

 

 

 

(1,809

)

Gain on lease termination

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(4,459

)

 

 

 

 

 

 

 

 

(4,459

)

Interest income

 

(652

)

 

 

(399

)

 

 

(424

)

 

 

(592

)

 

 

(2,067

)

 

 

 

 

 

(550

)

 

 

(777

)

 

 

(898

)

 

 

(2,225

)

Other (income) expense, net

 

(1,440

)

 

 

(543

)

 

 

(258

)

 

 

2,055

 

 

 

(186

)

 

 

304

 

 

 

(1,665

)

 

 

(817

)

 

 

870

 

 

 

(1,308

)

Impairment of assets

 

822

 

 

 

916

 

 

 

3,498

 

 

 

2,123

 

 

 

7,359

 

 

 

 

 

 

 

 

 

19,256

 

 

 

3,148

 

 

 

22,404

 

Executive severance

 

 

 

 

663

 

 

 

 

 

 

 

 

 

663

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock compensation expense

 

1,844

 

 

 

1,962

 

 

 

1,964

 

 

 

2,227

 

 

 

7,997

 

 

 

1,367

 

 

 

2,611

 

 

 

1,811

 

 

 

1,909

 

 

 

7,698

 

Adjusted EBITDA

$

56,054

 

 

$

103,130

 

 

$

68,492

 

 

$

57,271

 

 

$

284,947

 

 

$

88,730

 

 

$

6,161

 

 

$

54,687

 

 

$

46,258

 

 

$

195,836

 

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 an alternative 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:

  • Adjusted EBITDA does not reflect cash expenditures or the impact of certain cash clauses that the Company considers not to be an indication of ongoing operations;
  • Adjusted EBITDA does not reflect changes in, or cash requirements for, working capital requirements;
  • Adjusted EBITDA does not reflect the interest expense, or the cash requirements necessary to service interest or principal payments, on indebtedness;
  • Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and Adjusted EBITDA does not reflect cash requirements for such replacements;
  • Stock-based compensation expense is an important element of the Company’s long term incentive compensation program, although the Company has excluded it as an expense when evaluating our operating performance; and
  • Other companies, including other companies in the same industry, may calculate these measures differently, limiting their usefulness as a comparative measure.

Cancellation of Earnings Conference Call and Suspension of Guidance

As announced yesterday, February 28, 2022, REG has entered into an agreement to be acquired by Chevron for $61.50 per share in cash. In light of the transaction with Chevron, REG will not be holding a conference call to discuss these results. The Company will also not be providing financial guidance for the first quarter or fiscal year 2022 as a result of the pending transaction.

About Renewable Energy Group

Renewable Energy Group is leading the energy and transportation industries’ transition to sustainability by converting renewable resources into high-quality, sustainable fuels. Renewable Energy Group is an international producer of sustainable fuels that significantly lower greenhouse gas emissions to immediately reduce carbon impact. Renewable Energy Group utilizes a global integrated procurement, distribution and logistics network to operate 11 biorefineries in the U.S. and Europe. In 2021, Renewable Energy Group produced 480 million gallons delivering 4.1 million metric tons of carbon reduction. Renewable Energy Group is meeting the growing global demand for lower-carbon fuels and leading the way to a more sustainable future.

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 REG’s growth and strategy. 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 inability to consummate or obtain shareholder or regulatory approval of, or satisfy the other conditions to, REG’s proposed merger with Chevron Corporation (the “Merger”); the effect of the announcement of the Merger on the ability of REG to retain and hire key personnel and maintain relationships with its customers, suppliers and others with whom it does business; the effect of the announcement of the Merger on REG’s operating results and business generally or that it interrupts or disrupts REG’s current plans or diverts management’s attention from its ongoing business; the amount of costs, fees and expenses related to the Merger; the nature, cost and outcome of any litigation and other legal proceedings, including any such proceedings related to the Merger and instituted against REG and others; the amount of costs, fees and expenses related to the Merger; the risk that REG’s stock price may decline significantly if the Merger is not consummated, the risk that the merger agreement may be terminated in circumstances requiring REG to pay a termination fee; the impact of COVID-19 on REG’s business and operations, financial performance, including revenues, cost of revenues and operating expenses; changes in governmental programs and policies requiring or encouraging the use of biofuels, including RFS2 on the federal level, and on the state level, programs such as California’s Low Carbon Fuel Standard; availability of federal and state governmental tax incentives and incentives for biomass-based diesel production; changes in the spread between biomass-based diesel prices and feedstock costs; the availability, future price, and volatility of feedstocks; the availability, future price and volatility of petroleum and products derived from petroleum; risks associated with fire, explosions, leaks, weather related events and other natural disasters at REG’s facilities; any disruption of operations at the Geismar renewable diesel refinery (which would have a disproportionately adverse effect on REG’s profitability); the effect of excess capacity in the biomass-based diesel industry and announced large plant expansions and potential co-processing of renewable diesel by petroleum refiners; unanticipated changes in the biomass-based diesel market; potential failure to comply with government regulations; competition in the markets in which the Company operates; technological advances or new methods of biomass-based diesel production or the development of energy alternatives to biomass-based diesel; the Company’s indebtedness and compliance, or failure to comply, with restrictive and financial covenants in our various debt agreements; risks associated with customer negotiations; and other risks and uncertainties described in the Company’s annual report on Form 10-K for the year ended December 31, 2020 and subsequent periodic filings with the Securities and Exchange Commission. All forward-looking statements are made as of the date of this press release and the Company does not undertake to update any forward-looking statements based on new developments or changes in its expectations.

RENEWABLE ENERGY GROUP, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

FOR THE YEARS ENDED DECEMBER 31, 2021, 2020 AND 2019

(IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS)

(UNAUDITED)

 

 

 

2021

 

 

 

2020

 

 

 

2019

 

REVENUES:

 

 

 

 

 

Bio-based diesel sales

$

2,597,731

 

 

$

1,700,724

 

 

$

1,875,076

 

Separated RIN sales

 

355,541

 

 

 

129,715

 

 

 

98,285

 

Bio-based diesel government incentives

 

290,778

 

 

 

305,302

 

 

 

650,215

 

 

 

3,244,050

 

 

 

2,135,741

 

 

 

2,623,576

 

Other revenues

 

 

 

 

1,407

 

 

 

1,640

 

 

 

3,244,050

 

 

 

2,137,148

 

 

 

2,625,216

 

 

 

 

 

 

 

COSTS OF GOODS SOLD

 

2,874,157

 

 

 

1,868,794

 

 

 

2,111,324

 

GROSS PROFIT

 

369,893

 

 

 

268,354

 

 

 

513,892

 

SELLING, GENERAL, AND ADMINISTRATIVE EXPENSES

 

140,511

 

 

 

119,302

 

 

 

118,209

 

GAIN ON DISPOSAL OF PROPERTY, PLANT AND EQUIPMENT

 

(1,462

)

 

 

(205

)

 

 

 

IMPAIRMENT OF PROPERTY, PLANT, AND EQUIPMENT

 

7,359

 

 

 

22,404

 

 

 

12,208

 

INCOME FROM OPERATIONS

 

223,485

 

 

 

126,853

 

 

 

383,475

 

OTHER INCOME (EXPENSE), NET:

 

(24,145

)

 

 

1,889

 

 

 

(11,550

)

INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES

 

199,340

 

 

 

128,742

 

 

 

371,925

 

INCOME TAX BENEFIT (EXPENSE)

 

14,479

 

 

 

(5,929

)

 

 

570

 

NET INCOME FROM CONTINUING OPERATIONS

$

213,819

 

 

$

122,813

 

 

$

372,495

 

NET LOSS ON DISCONTINUED OPERATIONS

$

 

 

$

 

 

$

(9,667

)

NET INCOME

$

213,819

 

 

$

122,813

 

 

$

362,828

 

 

 

 

 

 

 

NET INCOME FROM CONTINUING OPERATIONS AVAILABLE TO COMMON STOCKHOLDERS

$

211,691

 

 

$

120,415

 

 

$

364,257

 

NET LOSS FROM DISCONTINUED OPERATIONS AVAILABLE TO COMMON STOCKHOLDERS

$

 

 

$

 

 

$

(9,667

)

Basic net income (loss) per share available to common stockholders

 

 

 

 

 

Continuing operations

$

4.48

 

 

$

3.07

 

 

$

9.51

 

Discontinued operations

$

 

 

$

 

 

$

(0.25

)

Net income per share

$

4.48

 

 

$

3.07

 

 

$

9.27

 

Diluted net income (loss) per share available to common stockholders

 

 

 

 

 

Continuing operations

$

4.44

 

 

$

2.76

 

 

$

8.61

 

Discontinued operations

$

 

 

$

 

 

$

(0.25

)

Net income per share

$

4.44

 

 

$

2.76

 

 

$

8.38

 

Weighted-average shares used to compute basic net income (loss) per share available to common stockholders:

 

 

 

 

 

Basic

 

47,302,924

 

 

 

39,199,687

 

 

 

38,288,610

 

Weighted-average shares used to compute diluted net income (loss) per share available to common stockholders:

 

 

 

 

 

Continuing operations

 

47,718,228

 

 

 

43,686,989

 

 

 

42,320,980

 

Discontinued operations

 

47,718,228

 

 

 

43,686,989

 

 

 

38,288,610

 

Net income

 

47,718,228

 

 

 

43,686,989

 

 

 

42,320,980

 

RENEWABLE ENERGY GROUP, INC. AND SUBSIDIARIES

CONDENSED SUPPLEMENTAL QUARTERLY RESULTS OF OPERATIONS

FOR THE THREE AND TWELVE MONTHS ENDED DECEMBER 31, 2021 AND 2020

(IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS)

(UNAUDITED)

 

 

 

Three Months
Ended
December 31,
2021

 

Three Months
Ended
December 31,
2020

 

Twelve Months
Ended
December 31,
2021

 

Twelve Months
Ended
December 31,
2020

Revenues

 

$

881,744

 

 

$

547,928

 

 

$

3,244,050

 

 

$

2,137,148

 

Gross profit

 

 

83,670

 

 

 

66,281

 

 

 

369,893

 

 

 

268,354

 

Selling, general, and administrative expenses including research and development expense

 

 

39,965

 

 

 

32,331

 

 

 

140,511

 

 

 

119,302

 

Gain on disposal of property, plant, and equipment

 

 

(1,423

)

 

 

(18

)

 

 

(1,462

)

 

 

(205

)

Impairment of property, plant and equipment

 

 

2,123

 

 

 

3,148

 

 

 

7,359

 

 

 

22,404

 

Income from operations

 

 

43,005

 

 

 

30,820

 

 

 

223,485

 

 

 

126,853

 

Other income (expense), net

 

 

(9,405

)

 

 

(1,729

)

 

 

(24,145

)

 

 

1,889

 

Income tax benefit (expense)

 

 

19,014

 

 

 

(1,922

)

 

 

14,479

 

 

 

(5,929

)

Net income

 

 

52,614

 

 

 

27,168

 

 

 

213,819

 

 

 

122,813

 

Net income available to common stockholders

 

 

52,212

 

 

 

26,685

 

 

 

211,691

 

 

 

120,415

 

Basic net income per share available to common stockholders:

 

 

 

 

 

 

 

 

Net income per share

 

$

1.04

 

 

$

0.68

 

 

$

4.48

 

 

$

3.07

 

Diluted net income per share available to common stockholders;

 

 

 

 

 

 

 

 

Net income per share

 

$

1.03

 

 

 $

0.60

 

 

$

4.44

 

 

$

2.76 

RENEWABLE ENERGY GROUP, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

AS OF DECEMBER 31, 2021 AND 2020 (IN THOUSANDS)

(UNAUDITED)

 

 

 

2021

 

 

2020

ASSETS

 

 

 

CURRENT ASSETS:

 

 

 

Cash and cash equivalents

$

497,653

 

$

84,441

Marketable securities

 

290,818

 

 

149,521

Accounts receivable, net

 

158,187

 

 

143,475

Inventories

 

453,592

 

 

209,361

Prepaid expenses and other assets

 

93,443

 

 

67,657

Restricted cash

 

4,218

 

 

3,777

Total current assets

 

1,497,911

 

 

658,232

Long-term marketable securities

 

167,767

 

 

120,022

Property, plant and equipment, net

 

677,444

 

 

594,796

Right of use assets

 

51,730

 

 

28,840

Goodwill

 

43,864

 

 

16,080

Intangible assets, net

 

53,175

 

 

10,708

Deferred tax assets - noncurrent

 

6,171

 

 

Other assets

 

60,882

 

 

32,720

TOTAL ASSETS

$

2,558,944

 

$

1,461,398

LIABILITIES AND EQUITY

 

 

 

CURRENT LIABILITIES:

 

 

 

Current maturities of long-term debt

$

 

$

50,088

Current maturities of operating lease obligations

 

13,026

 

 

14,581

Accounts payable

 

162,847

 

 

132,938

Accrued expenses and other liabilities

 

53,884

 

 

34,875

Deferred revenue

 

16,856

 

 

13,488

Total current liabilities

 

246,613

 

 

245,970

Deferred income taxes

 

4,659

 

 

6,607

Long-term debt, net

 

536,757

 

 

15,158

Long-term operating lease obligations

 

38,989

 

 

15,223

Other liabilities

 

4,100

 

 

4,485

Total liabilities

 

831,118

 

 

287,443

COMMITMENTS AND CONTINGENCIES

 

 

 

 

 

 

 

TOTAL EQUITY

 

1,727,826

 

 

1,173,955

TOTAL LIABILITIES AND EQUITY

$

2,558,944

 

$

1,461,398

 

Renewable Energy Group
Todd Robinson
Deputy CFO & Treasurer
+1 (515) 239-8048
Todd.Robinson@regi.com

Source: Renewable Energy Group, Inc.