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FutureFuel Is Surrounded By Too Much Uncertainty (NYSE:FF)
Seeking Alpha· 2025-10-08 15:38
FutureFuel Corp. (NYSE: FF ) has dramatically underperformed the broad market in almost any time horizon one can examine. The stock has vastly underperformed the S&P 500 over the last decade (-71% vs. +229%), over the last five years (-67% vs. +96%) and overI am a chemical engineer with a MS in Food Technology and Economics, and a MENSA member. I am the author of the book "Investing in Stocks and Bonds: The Early Retirement Project" (2024):I am also the author of the book "Mental Math: How to perform math c ...
Future Fuels Unlocks Historic Geophysical Survey Data; Marketing Update
Accessnewswire· 2025-10-06 23:35
Group 1 - Future Fuels Inc. has acquired high-resolution geophysical data for the Mountain Lake System at its Hornby Basin Project [1] - The Hornby Project is located approximately 95 kilometers southwest of Kugluktuk, Nunavut Territory [1] - The CEO of Future Fuels, Rob Leckie, stated that a primary objective for the Mountain Lake project is the consolidation and digitization of historic data from previous exploration campaigns [1]
Future Fuels Obtains Phase One Exploration Permits to Advance Hornby Basin Project
Accessnewswire· 2025-09-22 20:15
Core Viewpoint - Future Fuels Inc. has received the necessary permits to begin exploration activities at its Hornby Basin Project, marking a significant milestone for the company [1] Company Summary - Future Fuels Inc. is set to initiate fieldwork on the Hornby Project, located approximately 95 kilometers southwest of Kugluktuk, Nunavut [1] - The announcement was made by Rob Leckie, President & CEO, highlighting the importance of this development for the company's future operations [1]
FutureFuel(FF) - 2025 Q2 - Quarterly Report
2025-08-11 20:09
[PART I FINANCIAL INFORMATION](index=2&type=section&id=PART%20I%20FINANCIAL%20INFORMATION) This section provides comprehensive unaudited consolidated financial information for FutureFuel Corp [Item 1. Financial Statements.](index=2&type=section&id=Item%201.%20Financial%20Statements.) This section presents FutureFuel Corp.'s unaudited consolidated financial statements and accompanying notes - The unaudited consolidated financial statements are prepared in accordance with GAAP for interim financial information and SEC Form 10-Q instructions[19](index=19&type=chunk) - The financial statements include consolidated balance sheets, statements of operations, stockholders' equity, and cash flows[5](index=5&type=chunk)[7](index=7&type=chunk)[10](index=10&type=chunk)[15](index=15&type=chunk) [Consolidated Balance Sheets](index=2&type=section&id=Consolidated%20Balance%20Sheets) Presents the company's financial position at specific points in time, detailing assets, liabilities, and equity | Metric | June 30, 2025 ($ thousands) | December 31, 2024 ($ thousands) | Change ($ thousands) | % Change | | :-------------------------------- | :----------------------------- | :------------------------------- | :------------------- | :------- | | Total Assets | 218,212 | 247,691 | (29,479) | (11.9)% | | Total Current Assets | 128,751 | 164,786 | (36,035) | (21.9)% | | Cash and cash equivalents | 95,152 | 109,541 | (14,389) | (13.1)% | | Accounts receivable, net | 10,946 | 21,896 | (10,950) | (50.0)% | | Inventory, net | 9,620 | 20,643 | (11,023) | (53.4)% | | Total Liabilities | 39,988 | 41,870 | (1,882) | (4.5)% | | Total Stockholders' Equity | 178,224 | 205,821 | (27,597) | (13.4)% | [Consolidated Statements of Operations and Net (Loss) Income](index=3&type=section&id=Consolidated%20Statements%20of%20Operations%20and%20Net%20(Loss)%20Income) Details the company's revenues, expenses, and net income or loss over specific reporting periods | Metric | 3 Months Ended June 30, 2025 ($ thousands) | 3 Months Ended June 30, 2024 ($ thousands) | Change ($ thousands) | % Change | | :-------------------------------- | :---------------------------------------- | :---------------------------------------- | :------------------- | :------- | | Revenue | 35,673 | 72,409 | (36,736) | (50.7)% | | Gross (loss) profit | (8,767) | 8,657 | (17,424) | (201.3)% | | (Loss) income from operations | (11,928) | 5,451 | (17,379) | (318.8)% | | Net (loss) income | (10,416) | 9,571 | (19,987) | (208.8)% | | Basic (loss) earnings per common share | (0.24) | 0.22 | (0.46) | (209.1)% | | Metric | 6 Months Ended June 30, 2025 ($ thousands) | 6 Months Ended June 30, 2024 ($ thousands) | Change ($ thousands) | % Change | | :-------------------------------- | :---------------------------------------- | :---------------------------------------- | :------------------- | :------- | | Revenue | 53,211 | 130,690 | (77,479) | (59.3)% | | Gross (loss) profit | (23,330) | 13,664 | (36,994) | (270.7)% | | (Loss) income from operations | (30,766) | 7,649 | (38,415) | (502.2)% | | Net (loss) income | (28,059) | 13,901 | (41,960) | (301.8)% | | Basic (loss) earnings per common share | (0.64) | 0.32 | (0.96) | (300.0)% | [Consolidated Statements of Stockholders' Equity](index=4&type=section&id=Consolidated%20Statements%20of%20Stockholders'%20Equity) Outlines changes in the company's equity accounts, including net income, dividends, and stock-based compensation | Item | Amount ($ thousands) | | :----------------------- | :------------------- | | Balance - December 31, 2024 | 205,821 | | Stock based compensation | 463 | | Net loss | (28,059) | | Balance - June 30, 2025 | 178,224 | | Item | Amount ($ thousands) | | :----------------------- | :------------------- | | Balance - December 31, 2023 | 309,880 | | Cash dividends declared | (109,408) | | Stock based compensation | 22 | | Net income | 13,901 | | Balance - June 30, 2024 | 214,395 | [Consolidated Statements of Cash Flows](index=5&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Reports cash inflows and outflows from operating, investing, and financing activities | Activity | 6 Months Ended June 30, 2025 ($ thousands) | 6 Months Ended June 30, 2024 ($ thousands) | Change ($ thousands) | | :------------------------------------ | :---------------------------------------- | :---------------------------------------- | :------------------- | | Net cash (used in) provided by operating activities | (183) | 15,588 | (15,771) | | Net cash used in investing activities | (8,585) | (5,312) | (3,273) | | Net cash used in financing activities | (5,621) | (114,660) | 109,039 | | Net change in cash and cash equivalents | (14,389) | (104,384) | 89,995 | | Cash and cash equivalents at end of period | 95,152 | 115,060 | (19,908) | [Notes to Consolidated Financial Statements](index=6&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Provides detailed explanations and additional information supporting the consolidated financial statements [1) SIGNIFICANT ACCOUNTING POLICIES](index=6&type=section&id=1)%20SIGNIFICANT%20ACCOUNTING%20POLICIES) Details the key accounting principles and methods used in preparing the financial statements - The unaudited consolidated financial statements are prepared in accordance with GAAP for interim financial information and SEC Form 10-Q instructions[19](index=19&type=chunk) - The Company adopted ASU No. 2023-09 Income Taxes (Topic 740) effective for the year ended December 31, 2025, with immaterial financial statement impact but additional disclosures in the annual report[21](index=21&type=chunk) - The Company is evaluating ASU No. 2024-03 Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-40), effective for annual periods beginning after December 15, 2026, and does not expect a material impact[22](index=22&type=chunk) [2) GOVERNMENT TAX CREDITS](index=7&type=section&id=2)%20GOVERNMENT%20TAX%20CREDITS) Discusses the impact and recognition of various government tax credits on the company's financials - The Biodiesel Blenders' Tax Credit (BTC) and Small Agri-Biodiesel Producer Tax Credit expired on December 31, 2024[24](index=24&type=chunk)[25](index=25&type=chunk) - The Inflation Reduction Act of 2022 created the Clean Fuel Production Credit (CFPC) for 2025-2027, recognized as a reduction in cost of goods sold[26](index=26&type=chunk) - CFPC for the three and six months ended June 30, 2025, was **$2.5 million**[26](index=26&type=chunk) - Subsequent events include modifications to the CFPC (extension to Dec 31, 2029) and reinstatement of the Small Agri-Biodiesel Producers Tax Credit (effective July 1, 2025, to Dec 31, 2026)[72](index=72&type=chunk) [3) REVENUE RECOGNITION](index=8&type=section&id=3)%20REVENUE%20RECOGNITION) Explains the company's policies and methods for recognizing revenue from its various contracts and arrangements - Revenue is primarily recognized when a single performance obligation to transfer product is satisfied, typically upon shipment or when material is available for pickup[30](index=30&type=chunk)[31](index=31&type=chunk) - Contract liabilities (deferred revenue) from advance payments for chemical segment plant expansions were **$929 thousand** (current) and **$3,076 thousand** (noncurrent) at June 30, 2025[35](index=35&type=chunk) - Revenue recognized from contract liability reductions in the chemical segment was **$110 thousand** for the six months ended June 30, 2025, down from **$1,603 thousand** in the prior year[33](index=33&type=chunk) - Approximately **$4,005 thousand** of revenue is expected from remaining performance obligations, recognized ratably over two to six years[36](index=36&type=chunk) | Revenue Type | 2025 ($ thousands) | 2024 ($ thousands) | Change ($ thousands) | % Change | | :------------------------------------ | :------------------ | :------------------ | :------------------- | :------- | | Contract revenue from customers with > one-year arrangements | 5,098 | 17,975 | (12,877) | (71.6)% | | Contract revenue from customers with < one-year arrangements | 48,002 | 112,604 | (64,602) | (57.4)% | | Revenue from non-contractual arrangements | 111 | 111 | 0 | 0.0% | | Total revenue | 53,211 | 130,690 | (77,479) | (59.3)% | - Bill-and-hold revenue for the six months ended June 30, 2025, was **$14,435 thousand**, down from **$22,664 thousand** in 2024[40](index=40&type=chunk) [4) INVENTORY](index=10&type=section&id=4)%20INVENTORY) Details the composition and valuation of the company's inventory, including any significant adjustments | Category | June 30, 2025 ($ thousands) | December 31, 2024 ($ thousands) | Change ($ thousands) | % Change | | :--------------- | :------------------------- | :---------------------------- | :------------------- | :------- | | Finished goods | 6,438 | 10,809 | (4,371) | (40.4)% | | Work in process | 568 | 872 | (304) | (34.9)% | | Raw materials | 4,736 | 15,335 | (10,599) | (69.1)% | | Total inventory | 9,620 | 20,643 | (11,023) | (53.4)% | - A LIFO liquidation of **$2,934 thousand** occurred in the six months ended June 30, 2025, primarily from biodiesel related inventories[41](index=41&type=chunk) [5) DERIVATIVE INSTRUMENTS](index=11&type=section&id=5)%20DERIVATIVE%20INSTRUMENTS) Describes the company's use of derivative instruments and their impact on financial results - Derivative instruments are recorded at fair value, with changes recognized in cost of goods sold[43](index=43&type=chunk)[46](index=46&type=chunk) - The Company had no derivative instruments designated as accounting hedges in 2025 or 2024[45](index=45&type=chunk) - Net gain on derivative instruments for the six months ended June 30, 2025, was **$450 thousand**, compared to a net loss of **$2,050 thousand** in the prior year[46](index=46&type=chunk) - Fair value of regulated fixed price future commitments was an asset of **$46 thousand** at June 30, 2025, compared to a liability of **$235 thousand** at December 31, 2024[47](index=47&type=chunk) [6) ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES](index=12&type=section&id=6)%20ACCRUED%20EXPENSES%20AND%20OTHER%20CURRENT%20LIABILITIES) Provides a breakdown of the company's accrued expenses and other short-term liabilities | Category | June 30, 2025 ($ thousands) | December 31, 2024 ($ thousands) | Change ($ thousands) | % Change | | :------------------------------------ | :------------------------- | :---------------------------- | :------------------- | :------- | | Refundable deposit | 9,000 | 6,500 | 2,500 | 38.5% | | Employment tax credit | 1,351 | 1,856 | (505) | (27.2)% | | Accrued employee liabilities | 2,515 | 1,743 | 772 | 44.3% | | Accrued property, franchise, motor fuel and other taxes | 1,761 | 881 | 880 | 99.9% | | Other | 241 | 102 | 139 | 136.3% | | Total | 14,868 | 11,082 | 3,786 | 34.2% | [7) BORROWINGS](index=12&type=section&id=7)%20BORROWINGS) Details the company's debt arrangements, including credit facilities and outstanding balances - The Company amended and restated its credit agreement on February 21, 2025, establishing a five-year revolving credit facility of up to **$75,000 thousand**, expiring February 21, 2030[50](index=50&type=chunk) - Interest rates float over SOFR or base rate, dependent on the consolidated leverage ratio[51](index=51&type=chunk)[52](index=52&type=chunk) - There were no borrowings under the Credit Agreement at June 30, 2025, or December 31, 2024[53](index=53&type=chunk) [8) INCOME TAX PROVISION](index=13&type=section&id=8)%20INCOME%20TAX%20PROVISION) Explains the company's income tax expense, effective tax rate, and deferred tax positions | Metric | 3 Months Ended June 30, 2025 ($ thousands) | 3 Months Ended June 30, 2024 ($ thousands) | 6 Months Ended June 30, 2025 ($ thousands) | 6 Months Ended June 30, 2024 ($ thousands) | | :-------------------- | :---------------------------------------- | :---------------------------------------- | :---------------------------------------- | :---------------------------------------- | | Income tax provision | 35 | 6 | 41 | 638 | | Effective tax rate | 0.3% | 0.1% | (0.1)% | 4.4% | - The income tax provision for 2025 periods is mainly due to an increase in net deferred tax liability and immaterial state taxes[56](index=56&type=chunk) - The Company's deferred tax assets have been reduced to zero since March 31, 2024, with an additional net liability recognized[95](index=95&type=chunk) [9) EARNINGS PER SHARE](index=13&type=section&id=9)%20EARNINGS%20PER%20SHARE) Presents basic and diluted earnings per share calculations and related factors | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :------------------------------------ | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Net (loss) income ($ thousands) | (10,416) | 9,571 | (28,059) | 13,901 | | Weighted average shares outstanding – basic | 43,803,243 | 43,763,243 | 43,803,243 | 43,763,243 | | Basic (loss) earnings per share | (0.24) | 0.22 | (0.64) | 0.32 | | Diluted (loss) earnings per share | (0.24) | 0.22 | (0.64) | 0.32 | - Stock options and restricted stock units were excluded from diluted EPS computation for 2025 and 2024 as they were anti-dilutive[58](index=58&type=chunk)[59](index=59&type=chunk) [10) RELATED PARTY TRANSACTIONS](index=13&type=section&id=10)%20RELATED%20PARTY%20TRANSACTIONS) Discloses transactions with affiliated entities and their financial impact - FutureFuel engages in transactions with affiliated companies controlled by a director and significant shareholder[60](index=60&type=chunk) - Related party cost of goods sold and distribution expenses arise from net sales and purchases of blended biodiesel, and associated storage and terminalling services[61](index=61&type=chunk) [11) SEGMENT INFORMATION](index=15&type=section&id=11)%20SEGMENT%20INFORMATION) Provides financial data and operational details for the company's distinct business segments [Chemicals Segment](index=15&type=section&id=Chemicals) Focuses on the financial performance and operational aspects of the company's chemical product lines - Manufactures diversified chemical products, categorized into "custom manufacturing" and "performance chemicals"[64](index=64&type=chunk) | Metric | 3 Months Ended June 30, 2025 ($ thousands) | 3 Months Ended June 30, 2024 ($ thousands) | 6 Months Ended June 30, 2025 ($ thousands) | 6 Months Ended June 30, 2024 ($ thousands) | | :-------------------- | :---------------------------------------- | :---------------------------------------- | :---------------------------------------- | :---------------------------------------- | | Revenue | 19,054 | 53,173 | 25,984 | 37,295 | | Gross profit (loss) | 1,667 | 3,980 | (4,062) | 8,698 | - Chemical revenue decreased **14% ($2,617 thousand)** for the three months and **30% ($11,311 thousand)** for the six months ended June 30, 2025, primarily due to lower sales volumes in energy markets and reduced glycerin production from a plant turnaround[96](index=96&type=chunk)[97](index=97&type=chunk) - Gross profit (loss) for the chemical segment decreased by **$3,010 thousand** for the three months and **$12,760 thousand** for the six months ended June 30, 2025, primarily from reduced throughput and lower amortization of deferred revenue[98](index=98&type=chunk) [Biofuels Segment](index=15&type=section&id=Biofuels) Details the financial results and market conditions affecting the company's biofuel production and sales - Primarily manufactures and markets biodiesel, with revenues also from biodiesel blends, petrodiesel, RINs, and byproducts[65](index=65&type=chunk) - Held **0.5 million RINs** with a fair market value of **$604 thousand** at June 30, 2025, down from **2.1 million RINs ($1,055 thousand)** at June 30, 2024[66](index=66&type=chunk) | Metric | 3 Months Ended June 30, 2025 ($ thousands) | 3 Months Ended June 30, 2024 ($ thousands) | 6 Months Ended June 30, 2025 ($ thousands) | 6 Months Ended June 30, 2024 ($ thousands) | | :-------------------- | :---------------------------------------- | :---------------------------------------- | :---------------------------------------- | :---------------------------------------- | | Revenue | 16,619 | 19,236 | 27,227 | 93,395 | | Gross profit (loss) | (10,434) | 3,980 | (19,268) | 4,966 | - Biofuels revenue decreased by **$34,119 thousand (64%)** for the three months and **$66,168 thousand (71%)** for the six months ended June 30, 2025, due to temporary idling of biodiesel production amid market uncertainty and an extended plant turnaround[99](index=99&type=chunk)[100](index=100&type=chunk) - Biofuel gross loss was **$10,434 thousand** for the three months and **$19,268 thousand** for the six months ended June 30, 2025, primarily due to reduced sales volumes[102](index=102&type=chunk)[103](index=103&type=chunk) [12) LEGAL MATTERS](index=16&type=section&id=12)%20LEGAL%20MATTERS) Addresses any ongoing legal proceedings and their potential financial implications for the company - The Company is involved in routine legal matters but does not believe their ultimate resolution will have a material adverse effect on its financial condition, results of operations, or cash flows[70](index=70&type=chunk) [13) SUBSEQUENT EVENTS](index=16&type=section&id=13)%20SUBSEQUENT%20EVENTS) Reports significant events occurring after the balance sheet date that may affect financial statements - The Budget Reconciliation Act of 2025, signed July 4, 2025, extended the Clean Fuel Production Credit (CFPC) to December 31, 2029, and reinstated the Small Agri-Biodiesel Producers Tax Credit[72](index=72&type=chunk) - On July 9, 2025, the Company reduced its workforce by **75 employees** and idled biodiesel manufacturing due to high feedstock prices and negative profit margins, incurring an estimated **$386 thousand** in separation costs[73](index=73&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations.](index=18&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations.) Management discusses the company's financial condition, operational results, liquidity, and critical accounting estimates - The Company is managed in two segments: chemicals (custom and performance) and biofuels[76](index=76&type=chunk) - EPA proposed RFS rule changes for 2026-2027, including increased RINs for biomass-based diesel, reduced RINs for imported/foreign-feedstock renewable fuel, and a lower RIN equivalency factor for renewable diesel[78](index=78&type=chunk) - The Budget Reconciliation Act of 2025 modified the CFPC, extending it and reducing the tax credit for sustainable aviation fuel (SAF)[79](index=79&type=chunk) [Overview](index=18&type=section&id=Overview) Provides a general introduction to the company's business segments and key operational factors - FutureFuel Corp. operates in two reportable segments: chemicals (custom and performance) and biofuels[76](index=76&type=chunk) - The Company generates **1.5 Renewable Identification Numbers (RINs)** for each gallon of biodiesel sold in the United States[77](index=77&type=chunk) - Held **0.5 million D4 RINs** with a fair market value of **$604 thousand** at June 30, 2025, a decrease from **2.1 million RINs ($1,055 thousand)** at June 30, 2024[77](index=77&type=chunk) - EPA proposed RFS rule changes for 2026-2027, potentially increasing RINs for biomass-based diesel but reducing RINs for imported/foreign-feedstock renewable fuel[78](index=78&type=chunk) - The Budget Reconciliation Act of 2025 extended the CFPC through December 31, 2029, and reduced the tax credit for sustainable aviation fuel (SAF)[79](index=79&type=chunk) [Summary of Financial Results](index=19&type=section&id=Summary%20of%20Financial%20Results) Presents a high-level summary of key financial performance metrics, including non-GAAP measures | Metric | 2025 ($ thousands) | 2024 ($ thousands) | Dollar Change ($ thousands) | % Change | | :-------------------------------- | :------------------ | :------------------ | :-------------------------- | :------- | | Revenue | 35,673 | 72,409 | (36,736) | (51)% | | (Loss) income from operations | (11,928) | 5,451 | (17,379) | na | | Net (loss) income | (10,416) | 9,571 | (19,987) | na | | Basic (loss) earnings per common share | (0.24) | 0.22 | (0.46) | na | | Adjusted EBITDA | (9,823) | 6,907 | (16,730) | na | | Metric | 2025 ($ thousands) | 2024 ($ thousands) | Dollar Change ($ thousands) | % Change | | :-------------------------------- | :------------------ | :------------------ | :-------------------------- | :------- | | Revenue | 53,211 | 130,690 | (77,479) | (59)% | | (Loss) income from operations | (30,766) | 7,649 | (38,415) | na | | Net (loss) income | (28,059) | 13,901 | (41,960) | na | | Basic (loss) earnings per common share | (0.64) | 0.32 | (0.96) | na | | Adjusted EBITDA | (25,880) | 14,015 | (39,895) | na | - Adjusted EBITDA is a non-GAAP measure used by management to assess performance and liquidity, excluding non-cash items and certain non-operating income/expenses[82](index=82&type=chunk) | Item | 2025 ($ thousands) | 2024 ($ thousands) | | :---------------------------------------------------- | :------------------ | :------------------ | | Net (loss) income | (28,059) | 13,901 | | Depreciation | 4,739 | 4,760 | | Non-cash stock-based compensation | 462 | 22 | | Interest and dividend income | (2,305) | (4,321) | | Non-cash interest expense and amortization of deferred financing costs | 62 | 69 | | Gain on disposal of property and equipment | (34) | - | | Unrealized (gain) loss on derivative instruments | (281) | 1,696 | | Other income | (505) | (2,750) | | Income tax provision | 41 | 638 | | **Adjusted EBITDA** | **(25,880)** | **14,015** | [Results of Operations](index=21&type=section&id=Results%20of%20Operations) Analyzes the company's financial performance, detailing revenue, expenses, and profitability trends [Consolidated Results](index=21&type=section&id=Consolidated) Examines the overall financial performance of the company on a consolidated basis - Consolidated revenue decreased by **$36,736 thousand (51%)** for the three months and **$77,479 thousand (59%)** for the six months ended June 30, 2025, primarily due to uncertainty surrounding the CFPC and an extended plant turnaround impacting the biofuel segment[88](index=88&type=chunk) - Gross profit decreased by **$17,424 thousand** for the three months and **$36,994 thousand** for the six months ended June 30, 2025, mainly due to reduced throughput and changes in LIFO inventory adjustments[89](index=89&type=chunk)[90](index=90&type=chunk) - Operating expenses decreased **$45 thousand** for the three months but increased **$1,421 thousand** for the six months ended June 30, 2025, due to increased compensation, board fees, and R&D expenses[91](index=91&type=chunk) - Other income, net, decreased by **$2,579 thousand** for the three months and **$4,142 thousand** for the six months ended June 30, 2025, primarily due to a legal settlement received in the prior year and lower interest income[92](index=92&type=chunk)[93](index=93&type=chunk) - The income tax provision for the three and six months ended June 30, 2025, was **$35 thousand** and **$41 thousand**, respectively, mainly from an increase in net deferred tax liability[94](index=94&type=chunk) [Chemical Segment Results](index=23&type=section&id=Chemical%20Segment) Analyzes the financial performance and key drivers of the company's chemical segment - Chemical revenue decreased **14% ($2,617 thousand)** for the three months and **30% ($11,311 thousand)** for the six months ended June 30, 2025[96](index=96&type=chunk)[97](index=97&type=chunk) - Custom chemicals revenue decreased due to lower sales volumes in energy markets and less amortization of revenue[96](index=96&type=chunk)[97](index=97&type=chunk) - Performance chemicals revenue decreased due to lower volumes of glycerin and polymer modifier chemicals, impacted by the plant turnaround[96](index=96&type=chunk)[97](index=97&type=chunk) - Gross profit (loss) for the chemical segment decreased by **$3,010 thousand** for the three months and **$12,760 thousand** for the six months ended June 30, 2025, primarily from reduced throughput and lower amortization of deferred revenue[98](index=98&type=chunk) [Biofuel Segment Results](index=24&type=section&id=Biofuel%20Segment) Reviews the financial performance and market factors impacting the company's biofuel segment - Biofuels revenue decreased by **$34,119 thousand (64%)** for the three months and **$66,168 thousand (71%)** for the six months ended June 30, 2025[99](index=99&type=chunk)[100](index=100&type=chunk) - The decrease was attributed to the temporary idling of biodiesel production due to market uncertainty regarding the CFPC and an extended plant turnaround[99](index=99&type=chunk)[100](index=100&type=chunk) - Biofuel gross loss was **$10,434 thousand** for the three months and **$19,268 thousand** for the six months ended June 30, 2025, primarily due to reduced sales volumes[102](index=102&type=chunk)[103](index=103&type=chunk) - Derivative instrument activity resulted in a net gain of **$450 thousand** for the six months ended June 30, 2025, compared to a net loss of **$2,050 thousand** in the prior year[103](index=103&type=chunk) - The Company's derivative instruments do not qualify for hedge accounting[104](index=104&type=chunk) [Critical Accounting Estimates](index=26&type=section&id=Critical%20Accounting%20Estimates) Highlights significant accounting judgments and assumptions that materially affect financial reporting - Revenue recognition under ASC Topic 606 involves estimating contractual volumes and sales prices for long-term custom chemical contracts with material rights[107](index=107&type=chunk) - Revenue from most product sales is recognized upon shipment when risk of loss and title pass to the customer[108](index=108&type=chunk) - Biodiesel selling prices can fluctuate based on the timing of unsold, internally generated RINs, which are not reflected in revenue until sold[109](index=109&type=chunk) - Bill-and-hold revenue for custom chemicals was **$14,435 thousand** for the six months ended June 30, 2025, with **$6,309 thousand** of this revenue not yet shipped[110](index=110&type=chunk) [Liquidity and Capital Resources](index=27&type=section&id=Liquidity%20and%20Capital%20Resources) Assesses the company's ability to meet short-term and long-term obligations and fund operations | Activity | 2025 ($ thousands) | 2024 ($ thousands) | | :------------------------------------ | :------------------ | :------------------ | | Net cash (used in) provided by operating activities | (183) | 15,588 | | Net cash used in investing activities | (8,585) | (5,312) | | Net cash used in financing activities | (5,621) | (114,660) | - Cash used in operating activities increased by **$15,771 thousand** for the six months ended June 30, 2025, primarily due to a change in net (loss) income[114](index=114&type=chunk) - Cash used in investing activities increased by **$3,273 thousand**, mainly due to a **$4,208 thousand** increase in capital expenditures[115](index=115&type=chunk) - Cash used in financing activities decreased by **$109,039 thousand**, primarily due to a special dividend of **$109,408 thousand** paid in the prior year[116](index=116&type=chunk) - The Company has a **$75,000 thousand** revolving credit facility, amended on February 21, 2025, expiring February 21, 2030, with no borrowings outstanding[118](index=118&type=chunk) - Regular cash dividends of **$0.06 per share** were paid quarterly in 2025 and 2024[120](index=120&type=chunk) [Off- Balance Sheet Arrangements](index=28&type=section&id=Off-%20Balance%20Sheet%20Arrangements) Describes contractual arrangements not recognized on the balance sheet but impacting financial condition - The Company uses exchange-traded commodity futures and options contracts for biofuel sales to mitigate price volatility, recorded as derivative instruments on the balance sheet[123](index=123&type=chunk) - For biofuel feedstocks, the Company uses purchase contracts and supply agreements that may qualify for the normal purchase and normal sales exception of ASC 815, thus not recorded on the balance sheet[123](index=123&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk.](index=29&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk.) Discusses the company's exposure to market risks, primarily commodity price fluctuations, and strategies for mitigation - The Company is exposed to commodity price risk for both inputs (raw materials, biofuel feedstock) and outputs (chemicals, biofuels)[125](index=125&type=chunk) - Market risks for chemicals are mitigated through long-term sales contracts with price adjustment protections[126](index=126&type=chunk) - Exchange-traded commodity futures and options contracts are used to manage biofuel price risk, with changes in fair value recognized in cost of goods sold[127](index=127&type=chunk) - The fair value of derivative instruments was a net asset of **$46 thousand** at June 30, 2025, compared to a net liability of **$235 thousand** at December 31, 2024[128](index=128&type=chunk) - A hypothetical **10% adverse change** in average prices for biodiesel feedstocks and electricity would decrease gross profit by **3.5% ($822 thousand)** and **1.2% ($270 thousand)**, respectively, for the six months ended June 30, 2025[131](index=131&type=chunk) - The Company had no borrowings at June 30, 2025, or December 31, 2024, and considers foreign currency risk immaterial[132](index=132&type=chunk) [Item 4. Controls and Procedures.](index=30&type=section&id=Item%204.%20Controls%20and%20Procedures.) Management evaluates the effectiveness of disclosure controls and procedures and reports on internal control changes - The CEO and CFO concluded that disclosure controls and procedures were effective as of June 30, 2025[133](index=133&type=chunk) - No material changes in internal control over financial reporting occurred during the quarter ended June 30, 2025[134](index=134&type=chunk) [PART II OTHER INFORMATION](index=31&type=section&id=PART%20II%20OTHER%20INFORMATION) This section presents additional information, including legal matters, risk factors, and other disclosures [Item 1. Legal Proceedings.](index=31&type=section&id=Item%201.%20Legal%20Proceedings.) The company is not involved in material legal proceedings and anticipates no adverse financial effects from current matters - The Company is not involved in any material pending legal proceedings, only ordinary routine litigation[137](index=137&type=chunk) - Management does not believe the ultimate resolution of pending matters will have a material adverse effect on financial condition, results of operations, or cash flows[137](index=137&type=chunk) [Item 1A. Risk Factors.](index=31&type=section&id=Item%201A.%20Risk%20Factors.) Refers to previously disclosed risk factors, noting no material changes but emphasizing current economic uncertainty - No material changes to risk factors have occurred[138](index=138&type=chunk) - Readers are encouraged to refer to the risk factors in the 2024 Annual Report on Form 10-K due to current economic uncertainty[138](index=138&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.](index=31&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds.) Reports no unregistered sales of equity securities or use of proceeds during the period - No unregistered sales of equity securities or use of proceeds to report[139](index=139&type=chunk) [Item 3. Defaults Upon Senior Securities.](index=31&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities.) Confirms no defaults occurred on any senior securities during the reporting period - No defaults upon senior securities[141](index=141&type=chunk) [Item 4. Mine Safety Disclosures.](index=31&type=section&id=Item%204.%20Mine%20Safety%20Disclosures.) States that there are no mine safety disclosures required for the reporting period - No mine safety disclosures[142](index=142&type=chunk) [Item 5. Other Information.](index=31&type=section&id=Item%205.%20Other%20Information.) Confirms no Rule 10b5-1 plan adoptions or terminations by Section 16 officers or directors - No adoptions or terminations of Rule 10b5-1 plans or non-Rule 10b5-1 trading arrangements by Section 16 officers or directors during the quarter ended June 30, 2025[144](index=144&type=chunk) [Item 6. Exhibits.](index=32&type=section&id=Item%206.%20Exhibits.) Lists all exhibits filed with the Form 10-Q, including corporate documents, agreements, and certifications - Includes corporate documents (Certificate of Incorporation, Bylaws), Registration Rights Agreement, Description of common stock[145](index=145&type=chunk) - Certifications by CEO and CFO as required by Sarbanes-Oxley Act of 2002 (Sections 302 and 906)[145](index=145&type=chunk) - Interactive Data Files (XBRL) are included as Exhibit 101[145](index=145&type=chunk) [Special Note Regarding Forward-Looking Information](index=33&type=section&id=Special%20Note%20Regarding%20Forward-Looking%20Information) Provides a cautionary statement on forward-looking information, noting inherent risks and uncertainties that may affect actual results - The report contains forward-looking statements subject to known and unknown risks and uncertainties[146](index=146&type=chunk)[147](index=147&type=chunk) - Factors causing actual results to differ are detailed under "Risk Factors" and "Management's Discussion and Analysis" in the Annual Report on Form 10-K and future SEC filings[147](index=147&type=chunk) - The Company undertakes no obligation to revise or publicly release results of any revisions to forward-looking statements, except as required by law[147](index=147&type=chunk) [SIGNATURES](index=34&type=section&id=SIGNATURES) Contains the signatures of the Chief Executive Officer and Chief Financial Officer, certifying the report filing - Report signed by Roeland Polet, Chief Executive Officer, and Rose M. Sparks, Chief Financial Officer, on August 11, 2025[152](index=152&type=chunk)
FutureFuel(FF) - 2025 Q2 - Quarterly Results
2025-08-11 20:06
[Company Overview & Executive Summary](index=1&type=section&id=1.%20Company%20Overview%20%26%20Executive%20Summary) FutureFuel Corp. provides an overview of its chemical and biofuel operations, detailing Q2 and YTD 2025 financial performance and strategic outlook [Company Profile](index=1&type=section&id=1.1%20Company%20Profile) FutureFuel Corp. (NYSE: FF) manufactures custom and performance chemicals and biofuels, specializing in specialty chemicals and biodiesel - **FutureFuel Corp. (NYSE: FF)** specializes in manufacturing custom and performance chemicals and biofuels, with segments covering proprietary agrochemicals and biodiesel production[2](index=2&type=chunk)[20](index=20&type=chunk) [Second Quarter and Six Months 2025 Financial Highlights](index=1&type=section&id=1.2%20Second%20Quarter%20and%20Six%20Months%202025%20Financial%20Highlights) FutureFuel reported significant Q2 and H1 2025 financial declines, with net losses and negative Adjusted EBITDA, driven by BioDiesel challenges Q2 and Six Months 2025 Financial Highlights (YoY Comparison) | Metric | Q2 2025 (in thousands) | Q2 2024 (in thousands) | Dollar Change (in thousands) | % Change | Six Months 2025 (in thousands) | Six Months 2024 (in thousands) | Dollar Change (in thousands) | % Change | | :-------------------------- | :---------- | :---------- | :------------ | :------- | :-------------- | :-------------- | :------------ | :------- | | Revenues | $35,673 | $72,409 | $(36,736) | (51)% | $53,211 | $130,690 | $(77,479) | (59)% | | Net (Loss) Income | $(10,416) | $9,571 | $(19,987) | na | $(28,059) | $13,901 | $(41,960) | na | | (Loss) Earnings Per Diluted Share | $(0.24) | $0.22 | $(0.46) | na | $(0.64) | $0.32 | $(0.96) | na | | Adjusted EBITDA | $(9,823) | $6,907 | $(16,730) | na | $(25,880) | $14,015 | $(39,895) | na | [CEO Commentary and Business Outlook](index=1&type=section&id=1.3%20CEO%20Commentary%20and%20Business%20Outlook) CEO commentary addresses BioDiesel challenges, plant idling, Chemicals segment growth, and strategic investments for future expansion - BioDiesel segment faced expected downside due to challenging market conditions, **historically high input pricing**, and initial lack of clarity on IRA 45Z support, leading to a temporary plant idle in June[4](index=4&type=chunk)[5](index=5&type=chunk) - Chemicals segment started slower due to weaker market demand and delayed production post-turnaround, but has successfully expanded its opportunity pipeline and commercialized multiple projects for production by **Q4 2025 and Q1 2026**[6](index=6&type=chunk) - A new production facility is nearing completion, expected to be commissioned in **Q3**, enabling backward integration and expanded market participation, while the company focuses on cost control and maintaining a strong balance sheet during the BioDiesel downturn[7](index=7&type=chunk)[9](index=9&type=chunk)[10](index=10&type=chunk) [Consolidated Financial Results](index=6&type=section&id=2.%20Consolidated%20Financial%20Results) This section details FutureFuel's condensed consolidated statements of operations, balance sheets, and cash flows for Q2 and H1 2025 [Condensed Consolidated Statements of Operations and Net Income](index=7&type=section&id=2.1%20Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Net%20Income) FutureFuel reported significant gross and net losses for Q2 and H1 2025, a sharp decline from profits in the prior year periods Condensed Consolidated Statements of Operations and Net Income (Dollars in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :---------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Revenue | $35,673 | $72,409 | $53,211 | $130,690 | | Cost of goods sold and distribution | $44,440 | $63,752 | $76,541 | $117,026 | | Gross (loss) profit | $(8,767) | $8,657 | $(23,330) | $13,664 | | Selling, general, and administrative expenses | $2,228 | $2,290 | $5,112 | $4,193 | | Research and development expenses | $933 | $916 | $2,324 | $1,822 | | Total operating expenses | $3,161 | $3,206 | $7,436 | $6,015 | | (Loss) income from operations | $(11,928) | $5,451 | $(30,766) | $7,649 | | Interest and dividend income | $1,068 | $1,521 | $2,305 | $4,321 | | Other income, net | $479 | $2,605 | $443 | $2,569 | | (Loss) income before income taxes | $(10,381) | $9,577 | $(28,018) | $14,539 | | Income tax provision | $35 | $6 | $41 | $638 | | Net (loss) income | $(10,416) | $9,571 | $(28,059) | $13,901 | | (Loss) earnings per common share - Basic | $(0.24) | $0.22 | $(0.64) | $0.32 | | (Loss) earnings per common share - Diluted | $(0.24) | $0.22 | $(0.64) | $0.32 | [Condensed Consolidated Balance Sheets](index=6&type=section&id=2.2%20Condensed%20Consolidated%20Balance%20Sheets) Total assets decreased to **$218.21 million** by June 30, 2025, driven by lower cash, receivables, and inventory, with equity also declining Condensed Consolidated Balance Sheets (Dollars in thousands) | Asset/Liability/Equity | June 30, 2025 | December 31, 2024 | | :---------------------------------- | :-------------- | :---------------- | | Cash and cash equivalents | $95,152 | $109,541 | | Accounts receivable, net | $10,946 | $21,896 | | Inventory, net | $9,620 | $20,643 | | Total current assets | $128,751 | $164,786 | | Property, plant and equipment, net | $84,610 | $78,538 | | Total Assets | $218,212 | $247,691 | | Total current liabilities | $30,939 | $33,307 | | Total liabilities | $39,988 | $41,870 | | Total Stockholders' Equity | $178,224 | $205,821 | [Consolidated Statements of Cash Flows](index=8&type=section&id=2.3%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash used in operating activities for H1 2025 was **$0.18 million**, a significant decrease, with overall cash declining by **$14.39 million** Consolidated Statements of Cash Flows (Six Months Ended June 30, Dollars in thousands) | Cash Flow Activity | 2025 | 2024 | | :------------------------------------------ | :--------- | :---------- | | Net cash (used in) provided by operating activities | $(183) | $15,588 | | Net cash used in investing activities | $(8,585) | $(5,312) | | Net cash used in financing activities | $(5,621) | $(114,660) | | Net change in cash and cash equivalents | $(14,389) | $(104,384) | | Cash and cash equivalents at end of period | $95,152 | $115,060 | [Segment Performance](index=1&type=section&id=3.%20Segment%20Performance) This section details the financial performance of FutureFuel's Chemical and Biofuel segments for Q2 and H1 2025 [Chemical Segment Performance](index=1&type=section&id=3.1%20Chemical%20Segment%20Performance) The Chemicals segment faced slower Q2 2025 demand and production delays, but expanded its project pipeline, despite revenue and gross profit declines - The Chemicals segment started Q2 slower due to weaker market demand and delayed production following a turnaround[6](index=6&type=chunk) - The company has successfully expanded its chemicals business opportunity pipeline with new projects and commercialized multiple projects, with production expected to begin by the end of **Q4 2025 and in Q1 2026**[6](index=6&type=chunk) Chemical Segment Revenue and Gross Profit (Dollars in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Chemical revenue | $16,619 | $19,236 | $25,984 | $3
FutureFuel Releases Second Quarter 2025 Results
Globenewswire· 2025-08-11 20:05
Financial Performance - FutureFuel Corp. reported a net loss of $10.4 million, or $0.24 per diluted share, for the second quarter of 2025, compared to a net income of $9.6 million, or $0.22 per diluted share, in the same period of 2024 [10][28] - Revenues for the second quarter were $35.7 million, a decrease of 51% from $72.4 million year-over-year [10][12] - Adjusted EBITDA was ($9.8) million, down from $6.9 million in the prior year [10][31] Segment Performance - The BioDiesel segment faced significant challenges due to high input prices and uncertainty regarding support under the IRA 45Z, leading to a decision to temporarily idle the biodiesel plant in June 2025 [3][4] - The Chemicals segment experienced a slower start due to weaker market demand but has expanded its project pipeline with new opportunities expected to commercialize by the end of Q4 2025 and Q1 2026 [5][6] Capital Expenditures and Investments - Capital expenditures increased to $9.5 million in 2025 from $5.3 million in the same period in 2024, primarily due to the construction of a new custom chemical plant [16] - The company continues to invest in plant reliability and efficiency during the downturn in the BioDiesel market [7][8] Cash and Dividends - Cash and cash equivalents totaled $95.2 million as of June 30, 2025, down from $109.5 million at the end of 2024 [17][26] - FutureFuel paid a regular quarterly cash dividend of $0.06 per share in the second quarter of 2025, with additional dividends planned for September and December [9] Market Conditions and Future Outlook - The company anticipates that feedstock prices will normalize, allowing for the resumption of biodiesel production later in 2025 or early 2026 [4] - FutureFuel's management remains focused on maintaining cost control and leveraging its diversified chemical activities to support revenue during the BioDiesel downturn [8][18]
First Mining Announces Public Offering and Non-Brokered Private Placement for up to $20 Million
Globenewswire· 2025-07-14 20:09
Core Viewpoint - First Mining Gold Corp. has announced a public offering of up to 27,800,000 units at a price of $0.18 per unit, aiming for gross proceeds of up to $5,004,000, alongside a non-brokered private placement for additional funding [1][5]. Offering Details - The public offering will consist of units, each comprising one common share and one-half of a common share purchase warrant, with warrants priced at $0.27 per share, valid for 36 months [2][3]. - An over-allotment option allows agents to purchase an additional 15% of the units at the offering price, exercisable up to 48 hours before closing [4]. - The non-brokered private placement aims to raise up to $15,008,600 through 55,600,000 units and 22,730,000 flow-through units priced at $0.22 each [5][6]. Use of Proceeds - Proceeds from the offerings will be allocated to advancing the Springpole and Duparquet gold projects, as well as for general working capital [7]. - Funds from the flow-through units will be used for eligible Canadian exploration expenses related to the gold projects, with expenditures to be renounced by December 31, 2025 [7]. Timeline and Regulatory Approval - The public offering is expected to close around July 22, 2025, while the non-brokered offering is anticipated to close by August 5, 2025, pending Toronto Stock Exchange approval [8]. Company Overview - First Mining Gold Corp. is focused on developing two major gold projects in Canada: the Springpole Gold Project and the Duparquet Project, along with other gold project interests [12].
FutureFuel to Release Second Quarter 2025 Financial Results on August 11, 2025
Globenewswire· 2025-07-01 20:10
Company Overview - FutureFuel Corp. is a leading manufacturer of diversified chemical products, specialty chemical products, and biofuels [2] - The company produces custom chemicals for specific customers and performance chemicals for multiple customers [2] - FutureFuel's product portfolio includes proprietary intermediates, chlorinated polyolefin adhesion promoters, antioxidant precursors, polymer modifiers, and small-volume specialty chemicals [2] Financial Results Announcement - FutureFuel will release its second quarter 2025 financial results after market close on August 11, 2025 [1]
Balancing Decline And Potential: Why FutureFuel Remains A Hold
Seeking Alpha· 2025-06-25 04:12
Core Insights - FutureFuel Corp reported disappointing financial results for Q1 2025, showing a loss of $17.64 million compared to a profit of $4.33 million in Q1 2024 [1] Financial Performance - The company experienced a significant decline in profitability, moving from a profit of $4.33 million in Q1 2024 to a loss of $17.64 million in Q1 2025 [1]
FutureFuel Idles Biodiesel Production Amidst Regulatory Uncertainty, Shifts Full Focus to Specialty Chemicals Growth
Globenewswire· 2025-06-17 21:00
Core Viewpoint - FutureFuel Corp. has decided to temporarily idle its biodiesel production despite the U.S. EPA's proposed increase in biomass-based diesel mandates for 2026 and 2027, due to uncertainty regarding the Clean Fuel Producers Tax Credit [1][2][3]. Company Actions - The company will complete its remaining contractual obligations for biodiesel production by the end of June 2025 [1]. - FutureFuel plans to redirect certain production capacity from biodiesel to enhance its specialty chemicals business [4]. - The company anticipates new product capacity investments to come online in mid-2025 and is actively pursuing a pipeline of chemical projects for the latter half of 2025 and 2026 [4]. Industry Context - The EPA has proposed increasing biomass-based diesel mandates to 7.12 billion RINs for 2026 and 7.50 billion RINs for 2027, a significant increase from 3.35 billion gallons in 2025 and 5.36 billion gallons in 2026 [2]. - The uncertainty surrounding the Clean Fuel Producers Tax Credit has influenced FutureFuel's decision to pause biodiesel production [3]. Company Overview - FutureFuel is a manufacturer of custom and performance chemicals and biofuels, with a diverse product portfolio that includes specialty chemicals and biodiesel [5]. - The company's Batesville facility has flexible production capacity, allowing it to switch between specialty chemicals and biodiesel [3].