Renewable Energy Group releases Q4, full year 2012 financials

By Renewable Energy Group Inc. | March 05, 2013

Renewable Energy Group Inc. announced its financial results for the quarter and full year ended Dec. 31, 2012.

Revenues for the fourth quarter were $232 million, a decline of 13 percent compared to revenues of $267 million for the same period in 2011. Fourth quarter 2012 adjusted earnings before interest, taxes, depreciation and a mortization (EBITDA) was $13.6 million, a decrease of 54 percent compared to $29.5 million for the same period in 2011. Fourth quarter 2012 adjusted EBITDA includes an allocation of part of the $58 million benefit that will be received from the Jan. 3, 2013 retroactive reinstatement of the federal blenders tax credit. The balance sheet remained strong with cash of $66.8 million, and the company improved its financial position by retiring $34.5 million of Seneca plant debt. Total debt was reduced to $37 million from the third quarter 2012 balance of $76.4 million.

Revenues for the full year 2012 were $1.02 billion, an increase of 23 percent compared to $824 million for the full year 2011. Full year 2012 adjusted EBITDA was $96.5 million, a decrease of 10 percent compared to $107.3 million for the full year 2011.

“2012 was an excellent year for REG and positions us well for 2013,” said Daniel J. Oh, president and CEO. “In addition to generating $1 billion in revenue, we met the strategic commitments we made at the start of the year to expand our production network, upgrade existing facilities and extend our distribution network to both coasts of the country. We strengthened our financial position both through the IPO and substantial cash flow generation. This enabled us to increase our cash balance while continuing to invest in plant modernization and pay down debt. We enter 2013 as one of the stronger players in the biodiesel industry. Both the 2013 RVO and the extension of the blenders tax credit lead us to anticipate industry growth of nearly 30 percent this year. We intend to protect our market share and capture a portion of this growth.”

REG produced 36 million gallons of biodiesel in the fourth quarter of 2012, compared to 43 million gallons in the same period in 2011. REG sold 38 million gallons of biodiesel in the fourth quarter, a decrease of 19 percent compared to the same period in 2011. The decrease in Q4 2012 as compared to 2011 is the result of the expiration of the blenders tax credit and RVO requirements making Q4 2011 unusually strong.

For the full year 2012, REG produced 163 million gallons of biodiesel, compared to 135 million gallons in the same period in 2011. REG sold 188 million gallons of biodiesel in 2012, an increase of 25 percent compared to the same period in 2011.

During the quarter, REG executed its plan to grow its domestic distribution footprint by acquiring two additional biorefineries and entering into distribution relationships creating a large biodiesel terminal network in New York/New Jersey.

On Oct. 26, 2012, REG acquired a 15 MMgy multifeedstock biorefinery in New Boston, Texas, near Texarkana. The company purchased the off-line refinery for 900,000 shares of common stock and cash of $0.3 million. The acquisition expands the company's nameplate production capacity to 227 MMgy, strengthening its leadership position within the industry. The company expects to commence production at REG New Boston in the second quarter of 2013.

On Nov. 16, 2012, REG acquired a 15 MMgy capacity biorefinery in Ellenwood, Ga., near Atlanta. REG acquired the former BullDog Biodiesel operation for cash and in-kind consideration of approximately $2.6 million. The biorefinery has run intermittently since January 2008 and ceased operations in April 2012 due to a combination of poor market conditions and upgrades needed to make the facility more efficient. The plant was idled prior to REG's acquisition and will remain so until repairs and upgrades are completed. The company has not yet set a date for restarting production.

On Nov. 29, 2012, REG announced new biodiesel distribution points in Whippany, N.J., and metropolitan New York locations in New Hyde Park, Port Chester and near Brookhaven. In addition to these four distribution points, REG is also selling biodiesel from a terminal located inOntario, N.Y. These distribution agreements advanced the company's strategy to expand into the northeast market. These distribution points offer quick access for blending biodiesel to augment heating oil and diesel supplies. The company expects growing demand in the region, due in part to the 2012 implementation of New York City's Bioheat law requiring 2 percent biodiesel content in heating oil.

The fourth quarter capacity acquisitions and distribution deals extended the expansive footprint that REG built throughout the year. Earlier in 2012, the company announced new terminal distribution from its own REG Clovis facility as well as terminal agreements in Long Beach, Calif., and Lebanon, Ohio.

For the complete financial report, click here

 

 

 
 
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