BioFuel Energy Reports Fourth Quarter and Year End 2011 Results

IMPROVED PROFITABILITY OVER THE THIRD QUARTER WITH $4.5 MILLION OF NET INCOME IN THE FOURTH QUARTER

News provided by

BioFuel Energy Corp.

Mar 01, 2012, 04:15 ET

DENVER, March 1, 2012 /PRNewswire/ -- BIOFUEL ENERGY CORP. (NASDAQ:BIOF), an ethanol production company, today announced that, for the quarter ended December 31, 2011, it generated   $4.5 million of net income on revenues of $164.0 million, compared with a net loss of $1.1 million on revenues of $141.4 million in the year-ago quarter.  For the year ended December 31, 2011, the net loss was $10.4 million on revenues of $653.1 million, compared with a net loss of $25.2 million on revenues of $453.4 million for the year ended December 31, 2010.  For the quarter ended December 31, 2011, the net income attributable to common stockholders was $3.8 million, or $.03 per diluted share, while for the year ended December 31, 2011 the net loss attributable to common stockholders was $8.7 million, or $.09 per share.

"We were very pleased with our results for the fourth quarter and appreciate the efforts of our entire team in achieving them," said Scott H. Pearce, the Company's President and Chief Executive Officer.  "Of particular note, we have successfully installed corn oil extraction systems at both plants and are excited about the prospects for this new co-product revenue stream.  As everyone knows, commodity margins contracted severely towards the end of the year and have remained at challenging levels during the first quarter.  We expect, however, that seasonal factors will bring more favorable margins as the year goes on, as they have in the past."

For the quarter ended December 31, 2011, the Company's operating income was $6.4 million, which resulted from $154.6 million in cost of goods sold and $3.0 million in general and administrative expenses.  During the fourth quarter of 2011 the Company also incurred $1.9 million in interest expense, which resulted in net income of $4.5 million. For the full year 2011, the Company's operating loss was $0.2 million, which resulted from $642.5 million in cost of goods sold and $10.8 million in general and administrative expenses.  The Company also incurred $10.2 million of interest expense during the year, which resulted in a net loss of $10.4 million.  

At December 31, 2011, the Company had $176.8 million in term loans outstanding under its senior debt facility.  At December 31, 2011, the Company held $15.1 million of cash and cash equivalents and equity totaled $99.9 million, including $5.5 million of noncontrolling interest.

The Company plans to host a conference call on Friday, March 2, 2012 beginning at 11:00 a.m. (EST) to discuss the results.  To participate, please dial (800) 944-8766.  The participant code for the call is 84358.  Approximately 90 minutes following the call, a phone playback will be available for 30 days by dialing (866) 281-6782.  The access code for the replay is 167702.

This release contains certain forward-looking statements within the meaning of the Federal securities laws.  Such statements are based on management's current expectations, estimates and projections, which are subject to a wide range of uncertainties and business risks.  Forward-looking statements should not be read as a guarantee of future performance or results, and will not necessarily be accurate indications of whether, or the times by which, our performance or results may be achieved.  Factors that could cause actual results to differ from those anticipated are discussed in our Exchange Act filings and our Annual Report on Form 10-K.

BioFuel Energy currently has two 110 million gallons per year ethanol plants in the Midwestern corn belt.  The Company's goal is to become a leading ethanol producer in the United States by acquiring, developing, owning and operating ethanol production facilities.

Contact:

Kelly G. Maguire

For more information:

Executive Vice President &

www.bfenergy.com

Chief Financial Officer

(303) 640-6500

[email protected]

BioFuel Energy Corp.  

(in thousands, except per share amounts)









Three Months Ended December 31,


Years Ended December 31,









Summary Income Statement

2011

2010

2011

2010

Net sales

$            163,990

$            141,383


$ 653,073

$ 453,415


Cost of goods sold

              154,553

              136,301


   642,504

   454,638


Gross profit (loss)

                  9,437

                  5,082


     10,569

     (1,223)

General and administrative expenses:





  Compensation expense

                  2,175

                  1,678


       7,237

       6,830


  Other

                     874

                     923


       3,567

       5,565


Operating income (loss)

                  6,388

                  2,481


        (235)

   (13,618)

Interest expense

                 (1,932)

                 (3,544)

   (10,126)

   (11,605)

Net income (loss)

                  4,456

                 (1,063)

   (10,361)

   (25,223)

Less: Net (income) loss attributable to the noncontrolling interest

                    (663)

                       16


       1,644

       5,240


Net income (loss) attributable to BioFuel Energy Corp. common stockholders

$                3,793

$               (1,047)

$   (8,717)

$ (19,983)








Income (loss) per share attributable to BioFuel Energy Corp. common stockholders:







Basic

$                  0.04

$                 (0.04)

$     (0.09)

$     (0.79)

Diluted

$                  0.03

$                 (0.04)

$     (0.09)

$     (0.79)








Weighted average shares outstanding:





Basic

              102,545

                25,449


     94,687

     25,421


Diluted

              123,184

                25,449


     94,687

     25,421









Depreciation Expense

$                6,763

$                6,755


$   26,995

$   26,894









Additional operational data  





Ethanol sold (gallons, in thousands)

                54,314

                56,511


   216,694

   224,187


Dry distillers grain sold (tons, in thousands)

                    75.3

                  120.7


       335.6

       498.1


Wet distillers grain sold (tons, in thousands)

                  216.5

                    95.8


       715.6

       362.1


Corn ground (bushels, in thousands)

                19,710

                20,718


     78,286

     80,568










December 31,  

December 31,  



Summary Balance Sheet  

2011

2010










Cash and cash equivalents

$              15,139

$                7,428





Accounts receivable

                13,591

                27,802





Inventories

                26,188

                23,689





Prepaid expenses

                  2,148

                  1,561





Other current assets

                     421

                  3,330





Property, plant and equipment, net

              235,888

              260,078





Debt issuance costs, net

                  2,763

                  4,979





Other non-current assets

                  3,448

                  2,844





Total assets

$            299,586

$            331,711












Total current liabilities

$              24,452

$              52,238





Long-term debt, net of current portion

              166,937

              215,479





Tax increment financing, net of current portion

                  4,867

                  5,245





Other non-current liabilities

                  3,388

                  4,327





Total liabilities

              199,644

              277,289












BioFuel Energy Corp. stockholders' equity

                94,485

                54,170





Noncontrolling interest

                  5,457

                     252





Total equity

                99,942

                54,422





Total liabilities and equity  

$            299,586

$            331,711



















Total Common Stock shares outstanding at February 28, 2012, net of







809,606 shares held in treasury.

       104,573,689





SOURCE BioFuel Energy Corp.

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