NEWS RELEASE

 

BIOFUEL ENERGY REPORTS FIRST QUARTER 2012 RESULTS

 

DENVER, COLORADO – MAY 10, 2012 – BIOFUEL ENERGY CORP. (NASDAQ:BIOF), an ethanol production company, today announced its first quarter 2012 results. For the quarter ended March 31, 2012, the net loss was $11.1 million on revenues of $139.4 million, compared with a net loss of $9.0 million on revenues of $158.0 million for the quarter ended March 31, 2011. For the quarter ended March 31, 2012, the net loss attributable to common stockholders was $9.4 million, or $.09 per share, while for the three months ended March 31, 2011 the net loss attributable to common stockholders was $7.7 million, or $.11 per share.

 

“We continue to face a challenging commodity margin environment, as the industry continues to over-produce in the face of lower demand for motor fuel,” said Scott H. Pearce, the Company’s President and Chief Executive Officer.  “Over the past two years, we have made a number of improvements to our platform to mitigate losses in periods like this, the most recent example being the installation of corn oil extraction systems, which began generating revenues early in the first quarter of 2012.  We also produced fewer gallons year over year as we pared back production to optimize the margin realized.”

 

For the quarter ended March 31, 2012, the Company’s operating loss was $9.3 million, which resulted from $145.9 million in cost of goods sold and $2.8 million in general and administrative expenses. During the first quarter of 2012, the Company also incurred $1.8 million in interest expense, which resulted in a net loss of $11.1 million. For the same period of 2011, our operating loss was $4.8 million, which resulted from $160.2 million in cost of goods sold and $2.6 million in general and administrative expenses. The Company also had $4.2 million of interest expense in the first quarter of 2011, which resulted in a net loss of $9.0 million

 

At March 31, 2012, the Company had $173.6 million in term loans outstanding under its senior debt facility. At March 31, 2012, the Company held $11.7 million of cash and cash equivalents and equity totaled $89.3 million, including $3.8 million of noncontrolling interest.

 

The Company plans to host a conference call on Friday, May 11, 2012 beginning at 11:00 a.m. (EDT) 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.

 

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Contact: Kelly G. Maguire For more information:
  Executive Vice President & www.bfenergy.com
  Chief Financial Officer  
  (303) 640-6500  
  kmaguire@bfenergy.com  

 

 

1600 Broadway, Suite 2200 • Denver, CO • 303.640-6500 • www.bfenergy.com
 

 

 

BioFuel Energy Corp.

(in thousands, except per share amounts)

 

   Three Months Ended March 31, 
Summary Income Statement  2012   2011 
 Net sales  $139,413   $158,005 
 Cost of goods sold   145,933    160,159 
 Gross loss   (6,520)   (2,154)
 General and administrative expenses:          
   Compensation expense   1,804    1,770 
   Other   931    897 
 Operating loss   (9,255)   (4,821)
 Interest expense   (1,838)   (4,228)
 Net loss   (11,093)   (9,049)
 Less: Net loss attributable to the noncontrolling interest   1,685    1,387 
 Net loss attributable to BioFuel Energy Corp. common stockholders  $(9,408)  $(7,662)
           
 Loss per share - basic and diluted attributable to BioFuel Energy Corp. common stockholders  $(0.09)  $(0.11)
           
 Weighted average shares outstanding - basic and diluted   102,792    71,301 
           
           
 Additional Operational Data          
 Ethanol sold (gallons, in thousands)   51,971    56,658 
 Dry distillers grain sold (tons, in thousands)   54.0    95.8 
 Wet distillers grain sold (tons, in thousands)   251.4    148.7 
 Corn oil sold (pounds, in thousands)   6,842.0    - 
 Corn ground (bushels, in thousands)   18,856    20,340 

   

   March 31,   December 31, 
Summary Balance Sheet  2012   2011 
           
 Cash and cash equivalents  $11,687   $15,139 
 Accounts receivable   18,331    13,591 
 Inventories   18,909    26,188 
 Prepaid expenses   1,925    2,148 
 Other current assets   119    421 
 Property, plant and equipment, net   229,698    235,888 
 Debt issuance costs, net   2,502    2,763 
 Other non-current assets   3,448    3,448 
 Total assets  $286,619   $299,586 
           
 Total current liabilities  $25,500   $24,452 
 Long-term debt, net of current portion   163,784    166,937 
 Tax increment financing, net of current portion   4,867    4,867 
 Other non-current liabilities   3,212    3,388 
 Total liabilities   197,363    199,644 
           
 BioFuel Energy Corp. stockholders' equity   85,484    94,485 
 Noncontrolling interest   3,772    5,457 
 Total equity   89,256    99,942 
 Total liabilities and equity  $286,619   $299,586 

       

   Three Months Ended March 31, 
Reconciliation of Net Loss to EBITDA  2012   2011 
 Net loss  $(11,093)  $(9,049)
 Interest expense   1,838    4,228 
 Depreciation and amortization expense included in cost of goods sold   6,530    6,477 
 Depreciation and amortization expense included in G&A expenses   267    279 
 EBITDA  $(2,458)  $1,935 

 

 

1600 Broadway, Suite 2200 • Denver, CO • 303.640-6500 • www.bfenergy.com