FutureFuel(FF) - 2025 Q1 - Quarterly Results

Management Commentary and Strategic Outlook FutureFuel's Q1 2025 results show lower biofuel volumes and a net loss due to a strategic plant turnaround, while advancing new capacity and advocating for tax credits - Lower Q1 biofuel volumes resulted from a strategic plant turnaround in Batesville, Arkansas, from December through March, aimed at enhancing reliability, quality, and capacity[4] - The company leverages its 20 years of experience to manage the cyclical biodiesel business, anticipating low-margin periods will eliminate less-efficient competitors and restore profitability[5] - FutureFuel actively advocates for clarity on the Clean Fuel Producers Tax Credit (IRA 45Z) and reinstatement of the blenders' tax credit (BTC 40A)[6] - A new backward-integrated capacity project is on track to launch in late summer 2025, expected to contribute revenue by the end of Q3 2025[7] - Pam Butcher was appointed to the Board of Directors to advance the company's growth strategy[8] Financial Highlights FutureFuel's Q1 2025 saw revenue decrease 70% to $17.5 million, leading to a $17.6 million net loss and negative $16.1 million Adjusted EBITDA Q1 2025 Financial Highlights vs. Q1 2024 (Millions USD, except EPS) | Metric | Q1 2025 (Millions USD) | Q1 2024 (Millions USD) | Change (Millions USD) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Revenue | $17.5 | $58.3 | ($40.7) | (70)% | | Net (Loss) Income | ($17.6) | $4.3 | ($22.0) | na | | Diluted (Loss) EPS | ($0.40) | $0.10 | ($0.50) | na | | Adjusted EBITDA | ($16.1) | $7.1 | ($23.2) | na | Detailed Financial Performance Analysis Q1 2025 revenue decreased $40.7 million due to lower sales volumes and prices, resulting in an $18.8 million operating loss and reduced cash - The $40.7 million revenue decline stemmed from lower sales volumes due to the extended plant turnaround, impacting the biofuel segment by $29.9 million and chemical segment by $7.9 million, further reduced by $2.2 million from lower biofuel prices[14] - Operating income decreased by $21.0 million compared to Q1 2024, primarily due to reduced throughput, increased plant turnaround expenses, and a lower LIFO inventory adjustment benefit ($0.6 million vs. $3.0 million)[15] Capital Expenditures and Cash Position (Millions USD) | Metric | Q1 2025 | Q1 2024 / YE 2024 | | :--- | :--- | :--- | | Capital Expenditures | $4.0 | $2.3 | | Cash and Cash Equivalents | $97.1 | $109.5 (at Dec 31, 2024) | Segment Performance Both FutureFuel segments experienced significant Q1 2025 declines, with chemical revenue falling 48% and biofuel revenue plummeting 80%, both incurring gross losses Segment Revenue and Gross (Loss) Profit (Thousands USD) | Segment | Metric | Q1 2025 (Thousands USD) | Q1 2024 (Thousands USD) | | :--- | :--- | :--- | :--- | | Chemicals | Revenue | $9,365 | $18,059 | | | Gross (Loss) Profit | $(5,729) | $4,021 | | Biofuel | Revenue | $8,173 | $40,222 | | | Gross (Loss) Profit | $(8,834) | $986 | Shareholder Returns FutureFuel maintained shareholder returns by paying a $0.06 per share quarterly cash dividend in Q1 2025, with continued payments planned - The company paid a regular quarterly cash dividend of $0.06 per share in Q1 2025[11] - Quarterly dividends of $0.06 per share are scheduled for June, September, and December 2025[11] Consolidated Financial Statements Q1 2025 consolidated financial statements show a $17.6 million net loss, $227.7 million in total assets, and $12.5 million net cash usage Condensed Consolidated Statements of Operations Q1 2025 revenues decreased 70% to $17.5 million, resulting in a $14.6 million gross loss, $18.8 million operating loss, and a $17.6 million net loss Q1 2025 Statement of Operations (Thousands USD, except per share amounts) | Line Item | Q1 2025 (Thousands USD) | Q1 2024 (Thousands USD) | | :--- | :--- | :--- | | Revenue | $17,538 | $58,281 | | Gross (Loss) Profit | $(14,563) | $5,007 | | (Loss) Income from Operations | $(18,838) | $2,198 | | Net (Loss) Income | $(17,643) | $4,330 | | Diluted (Loss) EPS | $(0.40) | $0.10 | Condensed Consolidated Balance Sheets As of March 31, 2025, FutureFuel's total assets decreased to $227.7 million, primarily from reduced cash to $97.1 million, with liabilities at $39.3 million and equity at $188.4 million Balance Sheet Summary (Thousands USD) | Account | March 31, 2025 (Thousands USD) | Dec 31, 2024 (Thousands USD) | | :--- | :--- | :--- | | Cash and cash equivalents | $97,071 | $109,541 | | Total current assets | $143,377 | $164,786 | | Total Assets | $227,669 | $247,691 | | Total current liabilities | $30,536 | $33,307 | | Total Liabilities | $39,265 | $41,870 | | Total Stockholders' Equity | $188,404 | $205,821 | Consolidated Statements of Cash Flows Q1 2025 saw $5.4 million net cash used in operations, $4.1 million in investing, and $3.0 million in financing, resulting in a $12.5 million decrease in cash Cash Flow Summary (Thousands USD) | Cash Flow Activity | Q1 2025 (Thousands USD) | Q1 2024 (Thousands USD) | | :--- | :--- | :--- | | Net cash used in operating activities | $(5,395) | $(12,211) | | Net cash used in investing activities | $(4,082) | $(3,485) | | Net cash used in financing activities | $(2,993) | $(2,626) | | Net change in cash | $(12,470) | $(18,322) | | Cash at end of period | $97,071 | $201,122 | Reconciliation of Non-GAAP Financial Measures FutureFuel reconciles non-GAAP Adjusted EBITDA to GAAP, reporting Q1 2025 Adjusted EBITDA of ($16.1) million by adjusting the $17.6 million net loss for non-cash and non-operating items - Adjusted EBITDA is defined as net income before interest, taxes, depreciation, and amortization, with further adjustments for non-cash or non-operating items[21] Reconciliation of Adjusted EBITDA to Net Income (Thousands USD) | Line Item | Q1 2025 (Thousands USD) | Q1 2024 (Thousands USD) | | :--- | :--- | :--- | | Net (loss) income | $(17,643) | $4,330 | | Depreciation | $2,328 | $2,615 | | Interest and dividend income | $(1,237) | $(2,800) | | Other adjustments | $509 | $2,963 | | Adjusted EBITDA | $(16,057) | $7,108 | Reconciliation of Adjusted EBITDA to Net Cash from Operations (Thousands USD) | Line Item | Q1 2025 (Thousands USD) | Q1 2024 (Thousands USD) | | :--- | :--- | :--- | | Net cash used in operating activities | $(5,395) | $(12,211) | | Adjustments | $(10,662) | $19,319 | | Adjusted EBITDA | $(16,057) | $7,108 |