2020 Q4 Form 10-Q Financial Statement

#000143774920023234 Filed on November 09, 2020

View on sec.gov

Income Statement

Concept 2020 Q4 2020 Q3 2019 Q3
Revenue $49.86M $54.14M $65.68M
YoY Change 147.13% -17.58% -19.33%
Cost Of Revenue $42.30M $47.70M $60.20M
YoY Change -200.71% -20.76% -2.21%
Gross Profit $7.551M $6.446M $5.462M
YoY Change -87.85% 18.02% -56.83%
Gross Profit Margin 15.14% 11.91% 8.32%
Selling, General & Admin $1.300M $1.900M $1.400M
YoY Change -18.75% 35.71% -6.67%
% of Gross Profit 17.22% 29.48% 25.63%
Research & Development $600.0K $791.0K $833.0K
YoY Change -33.33% -5.04% -5.02%
% of Gross Profit 7.95% 12.27% 15.25%
Depreciation & Amortization $2.600M $2.690M $3.620M
YoY Change -13.33% -25.69% 32.6%
% of Gross Profit 34.43% 41.73% 66.28%
Operating Expenses $1.900M $2.642M $2.187M
YoY Change -24.0% 20.8% -9.78%
Operating Profit $5.651M $3.804M $3.275M
YoY Change -90.53% 16.15% -67.98%
Interest Expense $4.000M $32.00K $43.00K
YoY Change 150.0% -25.58% 0.0%
% of Operating Profit 70.78% 0.84% 1.31%
Other Income/Expense, Net $0.00 $2.256M $4.361M
YoY Change -100.0% -48.27% 35.1%
Pretax Income $9.600M $6.060M $7.636M
YoY Change -84.29% -20.64% -43.26%
Income Tax $4.100M -$830.0K $1.014M
% Of Pretax Income 42.71% -13.7% 13.28%
Net Earnings $5.472M $6.890M $6.622M
YoY Change -92.44% 4.05% -29.89%
Net Earnings / Revenue 10.97% 12.73% 10.08%
Basic Earnings Per Share $0.13 $0.16 $0.15
Diluted Earnings Per Share $0.13 $0.16 $0.15
COMMON SHARES
Basic Shares Outstanding 43.74M 43.74M 43.74M
Diluted Shares Outstanding 43.75M 43.74M

Balance Sheet

Concept 2020 Q4 2020 Q3 2019 Q3
SHORT-TERM ASSETS
Cash & Short-Term Investments $262.5M $243.6M $311.5M
YoY Change -17.17% -21.8% 2.98%
Cash & Equivalents $198.1M $180.2M $235.9M
Short-Term Investments $64.40M $63.50M $75.60M
Other Short-Term Assets $1.742M $1.494M $870.0K
YoY Change 16.68% 71.72% 28.51%
Inventory $33.89M $29.09M $42.79M
Prepaid Expenses $3.967M $583.0K $510.0K
Receivables $21.39M $37.21M $20.82M
Other Receivables $17.70M $22.40M $400.0K
Total Short-Term Assets $342.6M $335.9M $377.0M
YoY Change -28.76% -10.91% 0.87%
LONG-TERM ASSETS
Property, Plant & Equipment $91.54M $93.60M $100.3M
YoY Change -7.15% -6.7% -3.77%
Goodwill
YoY Change
Intangibles $1.408M $1.408M $1.408M
YoY Change 0.0% 0.0% 0.0%
Long-Term Investments
YoY Change
Other Assets $5.747M $5.918M $5.548M
YoY Change 2.42% 6.67% 48.14%
Total Long-Term Assets $98.70M $100.9M $107.3M
YoY Change -6.55% -5.92% -2.01%
TOTAL ASSETS
Total Short-Term Assets $342.6M $335.9M $377.0M
Total Long-Term Assets $98.70M $100.9M $107.3M
Total Assets $441.3M $436.8M $484.3M
YoY Change -24.76% -9.81% 0.22%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $12.45M $9.479M $25.63M
YoY Change -79.68% -63.02% -18.41%
Accrued Expenses $5.077M $6.886M $5.227M
YoY Change 15.12% 31.74% -33.44%
Deferred Revenue $3.769M $3.390M $5.025M
YoY Change -25.07% -32.54% -70.69%
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $32.99M $23.50M $39.69M
YoY Change -60.14% -40.79% -23.88%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $0.00 $0.00
YoY Change
Other Long-Term Liabilities $2.240M $2.348M $2.244M
YoY Change -6.2% 4.63% 97.36%
Total Long-Term Liabilities $36.43M $36.46M $39.45M
YoY Change -0.58% -7.59% 18.76%
TOTAL LIABILITIES
Total Short-Term Liabilities $32.99M $23.50M $39.69M
Total Long-Term Liabilities $36.43M $36.46M $39.45M
Total Liabilities $69.42M $59.96M $79.14M
YoY Change -41.86% -24.24% -7.28%
SHAREHOLDERS EQUITY
Retained Earnings $89.46M $94.48M $122.8M
YoY Change -51.55% -23.03% 6.18%
Common Stock $4.000K $4.000K $4.000K
YoY Change 0.0% 0.0% 0.0%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $371.9M $376.8M $405.1M
YoY Change
Total Liabilities & Shareholders Equity $441.3M $436.8M $484.3M
YoY Change -24.76% -9.81% 0.22%

Cashflow Statement

Concept 2020 Q4 2020 Q3 2019 Q3
OPERATING ACTIVITIES
Net Income $5.472M $6.890M $6.622M
YoY Change -92.44% 4.05% -29.89%
Depreciation, Depletion And Amortization $2.600M $2.690M $3.620M
YoY Change -13.33% -25.69% 32.6%
Cash From Operating Activities $19.82M -$7.620M $10.83M
YoY Change 92.8% -170.36% -21.58%
INVESTING ACTIVITIES
Capital Expenditures -$740.0K -$960.0K -$1.480M
YoY Change -10.84% -35.14% -25.25%
Acquisitions
YoY Change
Other Investing Activities $1.380M $3.550M $6.350M
YoY Change 146.43% -44.09% -166.08%
Cash From Investing Activities $630.0K $2.590M $4.870M
YoY Change -333.33% -46.82% -142.06%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -2.510M -2.620M -2.620M
YoY Change -4.56% 0.0% -6.43%
NET CHANGE
Cash From Operating Activities 19.82M -7.620M 10.83M
Cash From Investing Activities 630.0K 2.590M 4.870M
Cash From Financing Activities -2.510M -2.620M -2.620M
Net Change In Cash 17.94M -7.650M 13.08M
YoY Change 143.09% -158.49% -2394.74%
FREE CASH FLOW
Cash From Operating Activities $19.82M -$7.620M $10.83M
Capital Expenditures -$740.0K -$960.0K -$1.480M
Free Cash Flow $20.56M -$6.660M $12.31M
YoY Change 85.06% -154.1% -22.04%

Facts In Submission

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<table border="0" cellpadding="0" cellspacing="0" style="width: 100%; text-indent: 0px;"><tbody><tr style="vertical-align: top;"><td style="width: 27pt;"> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:0pt;margin-right:0.8pt;margin-top:0pt;text-align:left;"><b><em style="font: inherit;">1</em></b> <b>)</b></p> </td><td> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:0pt;margin-right:0.8pt;margin-top:0pt;text-align:left;"><b>NATURE OF OPERATIONS AND BASIS OF PRESENTATION</b></p> </td></tr> </tbody></table> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 15pt;text-align:left;"> </p> <p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt 0pt 0pt 36pt; text-align: justify;"><i>Organization</i></p> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:51pt;margin-right:15pt;margin-top:0pt;text-align:left;"> </p> <p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt 0pt 0pt 36pt; text-align: justify;">FutureFuel Corp. (“FutureFuel” or “the Company”), through its wholly-owned subsidiary, FutureFuel Chemical Company (“FutureFuel Chemical”), owns and operates a chemical production facility located on approximately 2,200 acres of land <em style="font: inherit;">six</em> miles southeast of Batesville in north central Arkansas fronting the White River (the “Batesville Plant”). FutureFuel Chemical manufactures diversified chemical products, biobased products composed of biofuels, and biobased specialty chemical products. FutureFuel Chemical’s operations are reported in <span style="-sec-ix-hidden:c66853585">two</span> segments: chemicals and biofuels.</p> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:51pt;margin-right:15pt;margin-top:0pt;text-align:left;"> </p> <p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt 0pt 0pt 36pt; text-align: justify;">The chemicals segment manufactures a diversified portfolio of chemical products that are sold to <em style="font: inherit;">third</em> party customers. The majority of the revenues from the chemicals segment are derived from the custom manufacturing of specialty chemicals for specific customers.</p> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:51pt;margin-right:15pt;margin-top:0pt;text-align:left;"> </p> <p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt 0pt 0pt 36pt; text-align: justify;">The biofuels segment primarily produces and sells biodiesel. FutureFuel Chemical also sells petrodiesel in blends with the Company’s biodiesel and, from time to time, with <em style="font: inherit;">no</em> biodiesel added. FutureFuel Chemical is a shipper of refined petroleum products on common carrier pipelines and buys and sells petroleum products to maintain an active shipper status on these pipelines.</p> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:51pt;margin-right:15pt;margin-top:0pt;text-align:left;"> </p> <p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt 0pt 0pt 36pt; text-align: justify;"><i>Basis</i> <i>of</i> <i>Presentation</i></p> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:51pt;margin-right:15pt;margin-top:0pt;text-align:left;"> </p> <p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt 0pt 0pt 36pt; text-align: justify;">The unaudited consolidated financial statements have been prepared by FutureFuel in accordance and consistent with the accounting policies stated in FutureFuel’s <em style="font: inherit;">2019</em> audited consolidated financial statements and should be read in conjunction with the <em style="font: inherit;">2019</em> audited consolidated financial statements of FutureFuel.</p> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:51pt;margin-right:15pt;margin-top:0pt;text-align:left;"> </p> <p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt 0pt 0pt 36pt; text-align: justify;">In the opinion of FutureFuel, all normal recurring adjustments necessary for a fair presentation have been included in the unaudited consolidated financial statements. The unaudited consolidated financial statements have been prepared in compliance with the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) accounting principles generally accepted in the United States (“GAAP”) for interim financial information and with instructions to Form <em style="font: inherit;">10</em>-Q adopted by the Securities and Exchange Commission (“SEC”). Accordingly, the unaudited consolidated financial statements do <em style="font: inherit;">not</em> include all the information and footnotes required by GAAP for complete financial statements, and do include amounts that are based upon management estimates and judgments. Future actual results could differ from such current estimates. The unaudited consolidated financial statements include assets, liabilities, revenues, and expenses of FutureFuel and its direct and indirect wholly owned subsidiaries; namely, FutureFuel Chemical Company; FFC Grain, L.L.C.; FutureFuel Warehouse Company, L.L.C.; and Legacy Regional Transport, L.L.C. Intercompany transactions and balances have been eliminated in consolidation.</p>
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us-gaap Contract With Customer Liability Revenue Recognized
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us-gaap Contract With Customer Liability Revenue Recognized
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AmortizationOfContractWithCustomerLiability
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55000 USD
us-gaap Capitalized Contract Cost Amortization
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166000 USD
us-gaap Capitalized Contract Cost Amortization
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166000 USD
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20121000 USD
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45453000 USD
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37573000 USD
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6789000 USD
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322000 USD
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1730000 USD
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us-gaap Description Of New Accounting Pronouncements Not Yet Adopted
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<table border="0" cellpadding="0" cellspacing="0" style="width: 100%; text-indent: 0px;"><tbody><tr style="vertical-align: top;"><td style="width: 27pt;"> <p style="margin: 0pt; text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;"><b><em style="font: inherit;">17</em>) </b></p> </td><td> <p style="margin: 0pt; text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;"><b>RECENTLY ISSUED ACCOUNTING STA</b><b>NDARDS</b><b> </b></p> </td></tr> </tbody></table> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 15pt;text-align:left;"> </p> <p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt 0pt 0pt 36pt; text-align: justify;"><i><b>Recently </b></i><i><b>Adopted </b></i><i><b>Accounting Standards </b></i></p> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt 15pt;text-align:left;"> </p> <p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt 0pt 0pt 36pt; text-align: justify;">In the <em style="font: inherit;">first</em> quarter of <em style="font: inherit;">2020,</em> the Company adopted ASU <em style="font: inherit;">2016</em>-<em style="font: inherit;">13,</em> <i>Financial Instruments - Credit Losses</i> (Topic <em style="font: inherit;">326</em>): <i>Measurement of Credit Losses on Financial Instruments</i> and the associated ASUs (collectively “Topic <em style="font: inherit;">326”</em>) on a modified retrospective approach. The amendments replace the incurred loss impairment methodology with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The Company recorded a $12 reduction to opening retained earnings and an allowance for bad debt of $12 on our consolidated financial statements.</p> <p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt 15pt 0pt 51pt; text-align: left;"> </p> <p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt 0pt 0pt 36pt; text-align: justify;"><i><b>Recently Issued Accounting Standards <em style="font: inherit;">Not</em> Adopted </b></i></p> <p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt 15pt 0pt 51pt; text-align: left;"> </p> <p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt 0pt 0pt 36pt; text-align: justify;">In <em style="font: inherit;"> December 2019, </em>the FASB issued ASU <em style="font: inherit;">2019</em>-<em style="font: inherit;">12,</em> <i>Income Taxes</i> (Topic <em style="font: inherit;">740</em>): <i>Simplifying the Accounting for Income Taxes</i>. The amendments simplify the accounting for income taxes by removing certain exceptions to the general principles of Topic <em style="font: inherit;">740,</em> "Income Taxes" and improve consistent application by clarifying and amending existing guidance. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after <em style="font: inherit;"> December 15, 2020. </em>Early adoption is permitted, with the amendments to be applied on a retrospective, modified retrospective or prospective basis, depending on the specific amendment. The Company is currently evaluating the impact of adopting this guidance. </p> <p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt 15pt 0pt 51pt; text-align: left;"> </p> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:137.9pt;margin-right:137.3pt;margin-top:0pt;text-align:center;"/> <p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt 0pt 0pt 36pt; text-align: justify;"><i><b>Other</b></i></p> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:27pt;margin-right:0pt;margin-top:0pt;text-align:left;"><i><b> </b></i></p> <p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt 0pt 0pt 36pt; text-align: justify;">ASU <em style="font: inherit;">2020</em>-<em style="font: inherit;">04,</em> <i>Reference Rate Reform </i>(Topic <em style="font: inherit;">848</em>):<i> Facilitation of the Effects of Reference Rate Reform on Financial Reporting</i>. Effective <em style="font: inherit;"> March 12, 2020, </em>the guidance in the update is in response to concerns about structural risks of interbank offered rates (IBORs), and, particularly, the risk of cessation of the London Interbank Offered Rate (LIBOR). Regulators in several jurisdictions around the world have undertaken reference rate reform initiatives to identify alternative reference rates that are more observable or transaction based and less susceptible to manipulation. This guidance will ease the accounting burden associated with transitioning away from reference rates that are expected to be discontinued within our credit facility as described in Note <em style="font: inherit;">10.</em></p>

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