- Published: 30 March 2010
- Written by Editor
BioFuel Reports Fourth Quarter and Year End 2009 Results
BIOFUEL ENERGY CORP. (Nasdaq: BIOF), an ethanol production company, today announced its fourth quarter and year end 2009 results. Net income attributable to common shareholders was $6.8 million, or $.21 per diluted share, for the quarter ended December 31, 2009. For the year ended December 31, 2009, the net loss attributable to common shareholders was $13.6 million, or $.57 per share. For the quarter ended December 31, 2009, revenues totaled $120.4 million, which were comprised of $105.8 million from sales of ethanol and $14.6 million from sales of distillers grain. For the year ended December 31, 2009, revenues totaled $415.5 million, comprised of $353.7 million from sales of ethanol and $61.8 million from sales of distillers grain.
Operating income for the fourth quarter was $11.7 million, which resulted from $105.8 million in cost of goods sold, including $73.1 million for corn, and $2.9 million in general and administrative expenses. The Company also had $2.9 million of interest expense in the fourth quarter, which resulted in net income of $8.8 million. For the full year, our operating loss was $4.9 million, which resulted from $404.8 million in cost of goods sold, including $284.9 million for corn, and $15.6 million in general and administrative and other operating expenses. During the year the Company had $14.9 million in interest expense, partially offset by $.1 million in interest income, which resulted in a net loss of $19.7 million for the year.
As tracked by the Company (using CBOT spot closing prices for corn and ethanol), crush spreads ranged from $0.06 per gallon to $0.68 per gallon during the year ended December 31, 2009, averaging $0.28 per gallon during the year, and during the fourth quarter ranged from $0.31 per gallon to $0.68 per gallon, with an average spread of $0.49 per gallon during that time. During the first two months of 2010, by comparison, crush spreads ranged from $0.28 per gallon to $0.47 per gallon, with an average spread of $0.37 per gallon during that time.
Scott H. Pearce, the Company's President and Chief Executive Officer, stated: "Overall we had a solid fourth quarter. Our entire operations team can be proud of delivering on our first profitable quarter. However, the more recent contraction in margins due to the narrowing of the spread between our cost of corn and the price of ethanol presents challenges for the first quarter of 2010."
At December 31, 2009, amounts outstanding under the senior debt facilities included $195.4 million in term loans and $16.5 million borrowed under the working capital facility. At December 31, 2009, the Company held $6.1 million of cash and equivalents and equity totaled $77.9 million, including $5.7 million of noncontrolling interest.
The Company also reported that its auditors have included an explanatory paragraph with its audit opinion on the Company's December 31, 2009 financial statements, expressing substantial doubt about the Company's ability to continue as a going concern. This explanatory paragraph was included primarily because the Company's working capital facility will mature in September 2010, unless extended.
The Company plans to host a conference call on Tuesday, March 30, 2010 beginning at 1:00 p.m. (EDT) to discuss the results. To participate, please dial (800) 944-8766 begin_of_the_skype_highlighting (800) 944-8766 end_of_the_skype_highlighting. The participant code for the call is 13119. Approximately 90 minutes following the call, a phone playback will be available for 30 days by dialing (866) 281-6782 begin_of_the_skype_highlighting (866) 281-6782 end_of_the_skype_highlighting. The access code for the replay is 153871.
This release contains certain forward-looking statements within the meaning of the Federal securities laws. Such statements are based on management's current expectations, estimates and projections, which are subject to a wide range of uncertainties and business risks. Forward-looking statements should not be read as a guarantee of future performance or results, and will not necessarily be accurate indications of whether, or the times by which, our performance or results may be achieved. Factors that could cause actual results to differ from those anticipated are discussed in our Exchange Act filings and our Annual Report on Form 10-K.
BioFuel Energy currently has two 115 million gallons per year ethanol plants in the Midwestern corn belt. The Company's goal is to become a leading ethanol producer in the United States by acquiring, developing, owning and operating ethanol production facilities.
Contact: Kelly G. Maguire For more information:
Vice President - Finance & www.bfenergy.com
Chief Financial Officer
(303) 640.6500 begin_of_the_skype_highlighting (303) 640.6500 end_of_the_skype_highlighting
This email address is being protected from spambots. You need JavaScript enabled to view it.
BioFuel Energy Corp.
(in thousands, except per share amounts)
Three Months Ended December
31,
----------------------------
Summary Income Statement 2008 2009
------------------------ ---- ----
Net sales $89,026 $120,418
Cost of goods sold 95,143 105,839
------ -------
Gross profit (loss) (6,117) 14,579
General and administrative expenses:
Compensation expense 1,503 1,609
Other 574 1,267
Other operating expense 5 -
---
Operating income (loss) (8,199) 11,703
------ ------
Interest income 101 4
Interest expense (4,199) (2,870)
Other non-operating income (expense) 4 -
Loss on derivative financial
instruments - -
--- ---
Net income (loss) (12,293) 8,837
Less: Net (income) loss attributable to
the noncontrolling interest 5,406 (1,989)
----- ------
Net income (loss) attributable to
BioFuel Energy Corp. common
shareholders $(6,887) $6,848
======= ======
Income (loss) per share -basic
attributable to BioFuel Energy Corp.
common shareholders $(0.43) $0.27
====== =====
Income (loss) per share -diluted
attributable to BioFuel Energy Corp.
common shareholders $(0.43) $0.21
====== =====
Weighted average shares outstanding:
Basic 15,920 24,902
Diluted 15,920 32,593
Additional operational data
---------------------------
Ethanol sold (gallons, in thousands) 46,983 55,821
Dry distillers grain sold (tons, in
thousands) 102.3 123.8
Wet distillers grain sold (tons, in
thousands) 96.3 87.7
Average FOB price of ethanol sold (per
gallon) $1.58 $1.91
Average FOB price of dry distillers
grain sold (per ton) $123.14 $101.78
Average FOB price of wet distillers
grain sold (per ton) $34.79 $29.44
Average corn cost (per bushel) $3.66 $3.67
Years Ended December 31,
Summary Income Statement 2008 2009
------------------------ ---- ----
Net sales $179,867 $415,514
Cost of goods sold 199,163 404,750
------- -------
Gross profit (loss) (19,296) 10,764
General and administrative expenses:
Compensation expense 8,063 6,160
Other 8,981 9,327
Other operating expense 1,350 150
----- ---
Operating income (loss) (37,690) (4,873)
------- ------
Interest income 1,087 78
Interest expense (5,831) (14,906)
Other non-operating income (expense) (1,781) (1)
Loss on derivative financial
instruments (39,912) -
------- ---
Net income (loss) (84,127) (19,702)
Less: Net (income) loss attributable to
the noncontrolling interest 43,262 6,072
------ -----
Net income (loss) attributable to
BioFuel Energy Corp. common
shareholders $(40,865) $(13,630)
======== ========
Income (loss) per share -basic
attributable to BioFuel Energy Corp.
common shareholders $(2.65) $(0.57)
====== ======
Income (loss) per share -diluted
attributable to BioFuel Energy Corp.
common shareholders $(2.65) $(0.57)
====== ======
Weighted average shares outstanding:
Basic 15,419 23,792
Diluted - -
Additional operational data
---------------------------
Ethanol sold (gallons, in thousands) 82,582 218,389
Dry distillers grain sold (tons, in
thousands) 170.9 484.6
Wet distillers grain sold (tons, in
thousands) 185.8 370.8
Average FOB price of ethanol sold (per
gallon) $1.85 $1.64
Average FOB price of dry distillers
grain sold (per ton) $133.68 $106.45
Average FOB price of wet distillers
grain sold (per ton) $37.21 $33.18
Average corn cost (per bushel) $4.54 $3.61
December 31, December 31,
Summary Balance Sheet 2008 2009
--------------------- ---- ----
Cash and equivalents $12,299 $6,109
Accounts receivable 16,669 23,745
Inventories 14,929 20,885
Prepaid expenses 2,153 2,529
Restricted cash - current 612 -
Other current assets 203 325
Property, plant and equipment, net 305,350 284,362
Certificates of deposit - non-current 4,015 -
Debt issuance costs, net 7,917 6,472
Restricted cash - non-current 1,003 -
Other non-current assets 574 2,348
--- -----
Total assets $365,724 $346,775
======== ========
Total current liabilities $38,157 $40,830
Long-term debt, net of current portion 226,351 220,754
Tax increment financing, net of current
portion 5,887 5,591
Derivative financial instrument, net of
current portion 83 -
Other non-current liabilities 487 1,705
--- -----
Total liabilities 270,965 268,880
BioFuel Energy Corp. stockholders'
equity 80,690 72,235
Noncontrolling interest 14,069 5,660
------ -----
Total equity 94,759 77,895
------ ------
Total liabilities and stockholders'
equity $365,724 $346,775
======== ========
Total shares outstanding at March 25,
2010 (a) 32,571,720
(a) Includes common shares and class B common shares, net of
809,606 shares held in treasury.
