FutureFuel Releases 2024 Results

Financial Performance - FutureFuel Corp. reported a net income of $15.5 million or $0.35 per diluted share for the year ended December 31, 2024, down from $37.4 million or $0.85 per diluted share in 2023, representing a 59% decrease [8][9][12] - For the fourth quarter of 2024, revenues were $61.5 million, a decrease of 33% or $30.5 million compared to $92.0 million in the same quarter of 2023 [8][10] - Adjusted EBITDA for the year was $17.6 million, down from $35.0 million in 2023, indicating a 50% decline [8][9][12] Operational Challenges - The company experienced a notable volume decline in Q4 2024 due to destocking among chemical customers and lower-than-expected yields from biodiesel production [2][10] - A temporary shutdown for a turnaround in biodiesel production occurred in late December 2024, which extended into the first quarter of 2025, impacting both biodiesel and chemicals production [2][10] Segment Performance - The biofuels segment revenue decreased significantly, with a reported revenue of $36.7 million in Q4 2024 compared to $71.2 million in Q4 2023 [34] - The chemical segment showed resilience with an increase in revenue to $24.8 million in Q4 2024 from $20.8 million in Q4 2023, driven by the amortization of deferred revenue [10][34] Future Outlook - FutureFuel's new customer and product pipeline within the chemical segment remains robust, with plans to bring new production capacity online in 2025 [3] - The expiration of the blenders tax credit at the end of 2024 and its replacement by the Inflation Reduction Act, Section 45Z, has created uncertainty regarding future credits and support levels, prompting the company to seek clarity from the Department of the Treasury [4] Capital Expenditures and Cash Position - Capital expenditures increased to $14.7 million in 2024 from $6.0 million in 2023, primarily for the construction of a custom chemical plant expected to be completed in mid-2025 [14][15] - Cash and cash equivalents decreased to $109.5 million as of December 31, 2024, down from $219.4 million a year earlier, largely due to a special cash dividend paid in April 2024 [16][29]