FutureFuel(US:FF)2025-11-10 21:14Revenue and Profitability - Revenue for the three months ended September 30, 2025, was $22,689, a decrease of $28,451 or 56% compared to $51,140 in the same period of 2024[85] - Net loss for the three months ended September 30, 2025, was $9,327, representing an increase in loss of $8,132 or 681% compared to a net loss of $1,195 in the same period of 2024[85] - Adjusted EBITDA for the nine months ended September 30, 2025, was $(32,715), a decrease of $45,757 compared to $13,042 in the same period of 2024[85] - Gross profit for the three months ended September 30, 2025, decreased by $7,214 compared to the same period in 2024, primarily due to reduced throughput from adverse market conditions[93] - Revenues for the three months ended September 30, 2025, decreased by 13% or $2,350 to $15,578 compared to $17,928 in the same period of 2024[100] - Chemical revenue for the nine months ended September 30, 2025, decreased by 25% or $13,661 to $41,562 compared to $55,223 in the same period of 2024[100] - Biofuels revenue for the three months ended September 30, 2025, decreased by 79% or $26,101 to $33,212 compared to $7,111 in the same period of 2024[105] - Biofuels revenue for the nine months ended September 30, 2025, decreased by 73% or $92,269 to $34,338 compared to $126,607 in the same period of 2024[106] - Gross loss for the chemical segment was $4,412 for the three months ended September 30, 2025, worsening by $7,819 compared to the same period in 2024[104] - Gross loss for the biofuel segment was $2,419 for the three months ended September 30, 2025, a decrease in gross loss of $605 from the comparative period in 2024[108] Cash Flow and Financing - Cash used in operating activities was $1,299 for the nine months ended September 30, 2025, compared to cash provided of $41,415 in the same period of 2024[120] - Cash used in investing activities increased to $14,426 for the nine months ended September 30, 2025, from $10,176 in the same period of 2024[121] - Cash used in financing activities was $8,256 for the nine months ended September 30, 2025, significantly lower than $117,285 in the same period of 2024[122] - The company believes existing cash balances and cash flow from operating activities will be sufficient to fund operations and capital requirements for the foreseeable future[119] - The company has a credit agreement with a syndicated group of commercial banks for $75 million, which terminates on February 21, 2030[124] - The company intends to fund future capital requirements from cash flow and existing cash, without the need to issue securities[125] - The company has accumulated excess working capital, some of which has been distributed as dividends[127] Dividends - Regular cash dividends of $0.06 per share were paid in each quarter of 2025 and 2024, totaling $2,628 thousand and $2,626 thousand respectively[126] - A special dividend of $2.50 per share was paid on April 9, 2024, amounting to $109,408 thousand[126] Market Conditions and Risks - The biofuel segment was significantly impacted by uncertainty surrounding the Clean Fuel Production Credit (CFPC), leading to idling of the biodiesel production line[92] - Other income decreased by $1,309 in the three months ended September 30, 2025, primarily due to a reduction in interest income[96] - The EPA proposed a rule that could increase RINs for biomass-based diesel from 5.36 billion in 2025 to 7.12 billion in 2026 and 2027, which may materially affect the company's operations[82] - The Budget Reconciliation Act of 2025 reduced the tax credit for sustainable aviation fuel from $1.75 per gallon to $1.00 per gallon effective January 1, 2026[83] - A hypothetical adverse 10% change in the average price of biodiesel feedstocks would result in a gross profit decrease of $2,839 thousand, representing a 9.4% decrease[137] - The company had no borrowings at September 30, 2025, indicating no exposure to interest rate risk for that period[138] - The company engages in transactions to mitigate market risks associated with commodity prices, including futures contracts and options[129] - The company has not experienced material adverse impacts from general economic inflation, passing some price increases to customers[130] Derivative Instruments - The fair value of derivative instruments was a net asset of $169 thousand at September 30, 2025, compared to a net liability of $235 thousand at December 31, 2024[134]