FutureFuel (FF) Q2 2024 earnings summary

Executive summary

• Q2 2024 net income was $9.6M ($0.22/share), reversing a $9.9M loss in Q2 2023; adjusted EBITDA was $6.9M, up from negative $7.3M, driven by improved gross profit and a legal settlement.

• Revenue for Q2 2024 was $72.4M, down 15% year-over-year, mainly due to lower biofuel sales volumes and prices.

• Six-month 2024 net income rose 24% to $13.9M ($0.32/share), and adjusted EBITDA increased 63% to $14.0M.

Financial highlights

• Q2 2024 gross profit was $8.7M, reversing a $8.6M loss in Q2 2023; six-month gross profit rose to $13.7M.

• Q2 2024 income from operations was $5.5M vs. a loss of $11.6M in Q2 2023; six-month operating income was $7.6M, up 15%.

• Q2 2024 EPS was $0.22 (basic and diluted), up from a loss of $0.23 per share in Q2 2023; six-month EPS was $0.32, up from $0.26.

• Cash and cash equivalents at June 30, 2024 were $115.1M, down from $219.4M at year-end 2023, mainly due to a special dividend.

• Capital expenditures for the first six months were $5.3M, up from $3.9M year-over-year.

Outlook and guidance

• Management expects existing cash, operating cash flow, and credit facility to be sufficient for foreseeable operations, development, and dividends.

• Management notes a recovering chemical industry and a competitive biofuels market, with ongoing margin pressure from low biodiesel and RIN prices.

• Future quarterly dividends of $0.06/share are scheduled for September and December 2024.

• No material changes to risk factors or forward-looking statements since the last annual report.