FutureFuel(FF) - 2022 Q4 - Annual Report

Financial Performance - Total revenue for 2022 was $395,555,000, representing a 23.5% increase from $320,125,000 in 2021[312]. - Gross profit increased to $28,993,000 in 2022, up from $23,537,000 in 2021, reflecting a 23.5% growth[312]. - Net income for 2022 was $15,211,000, a decrease of 42.1% compared to $26,255,000 in 2021[312]. - Total revenue for 2022 was $396.014 million, an increase of 23.2% from $321.386 million in 2021[458]. - Biofuels revenue reached $315.121 million in 2022, up 24.1% from $253.844 million in 2021[458]. - Chemicals revenue increased to $80.893 million in 2022, a rise of 19.7% compared to $67.542 million in 2021[458]. - The company reported a net income of $14.933 million in Q4 2022, compared to a net loss of $12.398 million in Q1 2022[460]. Assets and Liabilities - Total assets increased to $355,969,000 in 2022, up from $344,330,000 in 2021, marking a growth of 3.8%[309]. - Total liabilities rose to $72,969,000 in 2022, compared to $55,402,000 in 2021, indicating a 31.7% increase[309]. - Cash and cash equivalents at the end of 2022 were $175,640,000, an increase of 27.7% from $137,521,000 in 2021[314]. - The carrying value of total inventory as of December 31, 2022, was $26,761 thousand, slightly down from $26,920 thousand in 2021[376]. - The Company’s trade receivables included in accounts receivable were $16,459 thousand as of December 31, 2022, down from $20,780 thousand in 2021[368]. - The total stockholders' equity as of December 31, 2022, was $283,000, down from $371,883 in 2021[326]. Cash Flow and Dividends - Net cash provided by operating activities was $52,451,000 in 2022, an increase from $44,084,000 in 2021[314]. - Dividends payable in 2022 amounted to $10,503,000, compared to no dividends in 2021[309]. - Cash dividends declared in 2022 amounted to $21,006, compared to $109,408 in 2021[326]. Market Risks - A hypothetical 10% adverse change in the average price of biodiesel feedstocks (51,675 GAL) would result in a decrease in gross profit of $26,437,000, representing a 91.2% decrease[296]. - The company seeks to mitigate market risks by entering into term sale contracts with price adjustment protections, although raw material price risk remains significant[291]. - The gross profit is significantly impacted by the prices paid for raw materials and conversion costs, which are subject to wide fluctuations[294]. - A hypothetical 10% adverse change in the price of methanol (8,630 GAL) would lead to a gross profit decrease of $1,102,000, representing a 3.8% decrease[296]. - The company considers its foreign currency risk to be immaterial due to the insignificance of transactions denominated in foreign currency[297]. Tax and Valuation - The company recorded a deferred income tax asset valuation allowance, which requires management's judgment regarding projected future taxable income[305]. - The income tax benefit for 2022 was $1,473, reflecting an effective tax rate of (10.7%), compared to a benefit of $10,325 and an effective rate of (64.8%) in 2021[407]. - The Company recorded a valuation allowance that reduces its net deferred tax asset to $0 in 2022[412]. - The total deferred tax assets as of December 31, 2022, were $20,664,000, slightly down from $20,961,000 in 2021[417]. - The company recorded a valuation allowance of $7,392,000 against its deferred tax assets as of December 31, 2022[417]. Research and Development - Research and development expenses were $3,415,000 in 2022, slightly down from $3,484,000 in 2021[312]. Derivative Instruments - The company had no derivative instruments that qualified as designated accounting hedges in 2022 or 2021[292]. - The Company reported a net loss on derivative instruments of $24,360 thousand for the year ended December 31, 2022, compared to a net loss of $10,377 thousand in 2021[377]. Environmental and Closure Costs - The company established reserves for closure/post-closure costs associated with environmental assets, estimating useful lives of up to 27 years[338]. - The liability for asset retirement obligations and environmental contingencies was $1,396 as of December 31, 2022, compared to $1,363 in 2021[397]. Employee Compensation - The company contributed $1,719,000 to its 401(k) matching savings plan in 2022, a decrease from $1,770,000 in 2021[443]. - The total share-based compensation expense for 2022 was $46,000, compared to $49,000 in 2020[435]. - As of December 31, 2022, there were 44,000 stock options outstanding with a weighted average exercise price of $10.74[439]. - The company has 4,310,167 options available for grant under the Incentive Plan as of December 31, 2022[438]. Customer Concentration - For the year ended December 31, 2022, sales to two biodiesel customers totaled $107,898, representing 27% of total revenue[325]. - Significant portions of the company's sales were made to a small number of customers, with one customer accounting for 12% of revenue in 2020[325].