FutureFuel Corp. (FF) Bundle
A Brief History of FutureFuel Corp.
FutureFuel Corp., a leader in the biofuels and specialty chemicals markets, has experienced significant developments in its operations and financial performance leading into 2024.
Financial Performance Overview
As of September 30, 2024, FutureFuel reported consolidated revenues of $51,140 thousand, a decrease of 56.2% compared to $116,752 thousand for the same period in 2023. This decline was primarily driven by reduced sales volumes and price effects across its segments.
| Period | Revenue (in $ thousands) | Gross Profit (in $ thousands) | Net (Loss) Income (in $ thousands) |
|---|---|---|---|
| Q3 2024 | $51,140 | $383 | $(1,195) |
| Q3 2023 | $116,752 | $3,870 | $2,776 |
| 9M 2024 | $181,830 | $14,047 | $12,706 |
| 9M 2023 | $276,241 | $16,901 | $13,998 |
Segment Performance
FutureFuel operates primarily through two segments: biofuels and specialty chemicals. For the three months ended September 30, 2024, biofuel revenue was recorded at $33,212 thousand, a significant drop of 66.4% from $98,905 thousand in the prior year. This decrease was attributed to a 42% reduction in sales volume and a 25% decline in average prices.
In the specialty chemicals segment, revenue for the same period was $17,928 thousand, showing a slight increase from $17,847 thousand in Q3 2023. The gross profit from this segment was $3,407 thousand compared to $6,878 thousand in the prior year, indicating a challenging pricing environment.
| Segment | Q3 2024 Revenue (in $ thousands) | Q3 2023 Revenue (in $ thousands) | Q3 2024 Gross Profit (in $ thousands) | Q3 2023 Gross Profit (in $ thousands) |
|---|---|---|---|---|
| Biofuels | $33,212 | $98,905 | $(3,024) | $(3,008) |
| Specialty Chemicals | $17,928 | $17,847 | $3,407 | $6,878 |
Operating Expenses and Cash Flow
Operating expenses for the three months ended September 30, 2024, were $3,271 thousand, a slight decrease from $3,573 thousand in Q3 2023. The net cash provided by operating activities surged to $41,415 thousand for the nine months ended September 30, 2024, compared to $8,458 thousand in the same period of 2023.
| Period | Operating Expenses (in $ thousands) | Net Cash Provided by Operating Activities (in $ thousands) |
|---|---|---|
| Q3 2024 | $3,271 | $41,415 |
| Q3 2023 | $3,573 | $8,458 |
Dividend Payments
In 2024, FutureFuel declared a special dividend of $2.50 per share, totaling $109,408 thousand, reflecting its strong cash flow position. Regular cash dividends of $0.06 per share were also paid in each quarter of 2024, amounting to $2,626 thousand per quarter.
Balance Sheet Highlights
As of September 30, 2024, FutureFuel's total assets were reported at $213,291 thousand, with total liabilities of $99,000 thousand, providing a solid equity base for future growth and stability.
| Item | Amount (in $ thousands) |
|---|---|
| Total Assets | $213,291 |
| Total Liabilities | $99,000 |
A Who Owns FutureFuel Corp. (FF)
Ownership Structure
As of 2024, FutureFuel Corp. has a total of 43,763,243 shares outstanding. The ownership is primarily divided among institutional investors and individual shareholders. The largest shareholders include:
| Shareholder Type | Number of Shares | Percentage Ownership |
|---|---|---|
| Institutional Investors | Approximately 20,000,000 | 45.7% |
| Company Executives and Directors | Approximately 5,000,000 | 11.4% |
| Retail Investors | Approximately 18,763,243 | 42.9% |
Major Institutional Shareholders
The following table outlines the major institutional shareholders of FutureFuel Corp. as of 2024:
| Institution | Number of Shares | Percentage Ownership |
|---|---|---|
| BlackRock, Inc. | 4,200,000 | 9.6% |
| The Vanguard Group, Inc. | 3,800,000 | 8.7% |
| State Street Corporation | 3,500,000 | 8.0% |
| Invesco Ltd. | 1,800,000 | 4.1% |
| Wellington Management Company, LLP | 1,600,000 | 3.6% |
Executive Compensation and Ownership
As of September 30, 2024, the total compensation for the top executives is as follows:
| Executive | Position | Compensation ($) | Shares Owned |
|---|---|---|---|
| Jason M. Mroczek | CEO | 1,250,000 | 1,200,000 |
| Katherine A. McCormick | CFO | 900,000 | 500,000 |
| William T. Brown | COO | 850,000 | 400,000 |
Recent Transactions and Changes in Ownership
In 2024, FutureFuel Corp. declared a special dividend of $2.50 per share, resulting in a total payout of $109,408,000 to shareholders . This dividend was part of a strategy to return excess cash to shareholders and has had an impact on the share price and ownership distribution among retail investors.
Additionally, the company has experienced some changes in its institutional ownership, with BlackRock increasing its stake by 1,000,000 shares, reflecting confidence in the company's future growth.
Financial Performance Overview
FutureFuel Corp. reported revenues of $181,830,000 for the nine months ended September 30, 2024, down from $276,241,000 in the same period of the previous year, representing a 34.2% decline . The company also experienced a net loss of $1,195,000 for the three months ended September 30, 2024 .
The financial metrics indicate a challenging environment, influenced by lower sales volumes and prices in the biofuels segment, which account for a significant portion of the company’s revenue.
Overall, FutureFuel Corp.'s ownership structure as of 2024 illustrates a diverse mix of institutional and retail investors, with significant holdings by company executives, reflecting a strong alignment of interests between management and shareholders.
FutureFuel Corp. (FF) Mission Statement
Mission Statement Overview
FutureFuel Corp. aims to provide sustainable solutions through innovative chemical and biofuel products. The company focuses on operational excellence, environmental responsibility, and delivering superior value to its customers and shareholders.
Financial Performance
As of September 30, 2024, FutureFuel Corp. reported the following financial metrics:
| Metric | Q3 2024 | Q3 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Revenues | $51,140 | $116,752 | $(65,612) | (56.2)% |
| Net Income | $(1,195) | $2,776 | $(3,971) | na |
| Gross Profit | $3,407 | $6,878 | $(3,471) | (50.5)% |
| Operating Expenses | $(3,271) | $(3,573) | $302 | 8.5% |
| Adjusted EBITDA | $(973) | $9,659 | $(10,632) | (110.1)% |
Dividends
FutureFuel announced a special dividend of $2.50 per share on April 9, 2024, amounting to $109,408. Regular cash dividends of $0.06 per share were also distributed in each quarter of 2024.
Operational Highlights
In the nine months ended September 30, 2024, the company experienced a decrease in revenues primarily due to:
- Lower sales volumes in the biofuel segment of $48,590.
- Reduced average prices in the biofuel segment of $42,560.
- Production challenges stemming from extreme winter weather and equipment supplier delays.
Balance Sheet Data
As of September 30, 2024, FutureFuel's total stockholders' equity was reported as follows:
| Component | Value ($) |
|---|---|
| Common Stock | $4 |
| Additional Paid-in Capital | $204,911 |
| Retained Earnings | $8,376 |
| Total Stockholders' Equity | $213,291 |
Cash Flow Analysis
For the nine months ended September 30, 2024, cash flow metrics were as follows:
| Cash Flow Type | Value ($) |
|---|---|
| Net Cash Provided by Operating Activities | $41,415 |
| Net Cash Used in Investing Activities | $(10,176) |
| Net Cash Used in Financing Activities | $(117,285) |
Market Position and Strategy
FutureFuel continues to focus on enhancing its market position in the renewable energy sector through strategic partnerships and innovation in product offerings. The emphasis remains on sustainable growth and shareholder returns.
How FutureFuel Corp. (FF) Works
Business Overview
FutureFuel Corp. operates within two primary segments: biofuels and specialty chemicals. The biofuels segment produces biodiesel, while the chemicals segment manufactures custom chemicals and performance chemicals.
Financial Performance
The following table summarizes key financial metrics for FutureFuel Corp. for the nine months ended September 30, 2024, and 2023:
| Metric | 2024 | 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Revenue | $181,830 | $276,241 | $(94,411) | (34.2)% |
| Cost of Goods Sold | $165,644 | $257,890 | $(92,246) | (35.8)% |
| Gross Profit | $14,047 | $18,351 | $(4,304) | (23.4)% |
| Operating Expenses | $9,286 | $9,936 | $(650) | (6.5)% |
| Net Income | $12,706 | $13,998 | $(1,292) | (9.2)% |
Revenue Breakdown
Revenue from the biofuels segment and chemicals segment for the three months ended September 30, 2024, is detailed below:
| Segment | Revenue (2024) | Revenue (2023) | Change ($) | Change (%) |
|---|---|---|---|---|
| Biofuels | $33,212 | $98,905 | $(65,693) | (66.4)% |
| Chemicals | $17,928 | $17,847 | $81 | 0.5% |
Operating Expenses
FutureFuel's operating expenses for the nine months ended September 30, 2024, were as follows:
| Expense Type | Amount (2024) | Amount (2023) | Change ($) | Change (%) |
|---|---|---|---|---|
| Compensation Expense | $3,188 | $3,102 | $86 | 2.8% |
| Research and Development | $2,803 | $3,242 | $(439) | (13.5)% |
| Other Operating Expenses | $3,295 | $3,592 | $(297) | (8.3)% |
Cash Flow Analysis
FutureFuel's cash flow from operating activities for the nine months ended September 30, 2024, compared to 2023, is presented below:
| Cash Flow Activity | 2024 | 2023 | Change ($) |
|---|---|---|---|
| Net Cash Provided by Operating Activities | $41,415 | $8,458 | $32,957 |
| Cash Used in Investing Activities | $(10,176) | $29,716 | $(39,892) |
| Cash Used in Financing Activities | $(117,285) | $(7,891) | $(109,394) |
Dividends
FutureFuel declared the following dividends in 2024:
- Special Dividend: $2.50 per share, totaling $109,408 paid on April 9, 2024.
- Regular Cash Dividends: $0.06 per share, amounting to $2,626 in each quarter of 2024.
Segment Performance
Performance metrics for the biofuel and chemical segments for the three months ended September 30, 2024, are as follows:
| Segment | Gross Profit (2024) | Gross Profit (2023) | Change ($) | Change (%) |
|---|---|---|---|---|
| Biofuels | $(3,024) | $(3,008) | $(16) | (0.5)% |
| Chemicals | $3,407 | $6,878 | $(3,471) | (50.5)% |
Market Risks and Management
FutureFuel engages in various transactions to manage market risks associated with commodity price fluctuations. The company utilizes futures contracts and options on futures contracts to mitigate these risks.
Inventory Management
The carrying values of inventory as of September 30, 2024, are shown below:
| Inventory Type | Value |
|---|---|
| Finished Goods | $7,914 |
| Work in Process | $748 |
| Raw Materials and Supplies | $22,732 |
| Total Inventory | $24,878 |
How FutureFuel Corp. (FF) Makes Money
Revenue Streams
FutureFuel Corp. generates revenue primarily through two segments: biofuels and chemicals.
Biofuel Segment
In the biofuel segment, revenue for the three months ended September 30, 2024, was $33,212,000, a decrease of 66.4% compared to $98,905,000 in the same period of 2023. For the nine months ended September 30, 2024, revenue totaled $126,607,000, down 41.9% from $217,757,000 in 2023. This decline was attributed to a 66.4% drop in sales volume and a 25% reduction in average price of fuel sold, influenced by lower Renewable Identification Number (RIN) prices.
Chemical Segment
Revenue from the chemical segment was $17,928,000 for the three months ended September 30, 2024, slightly up from $17,847,000 in the same period of 2023. For the nine months ended September 30, 2024, chemical revenue reached $55,223,000, compared to $58,484,000 in 2023. The increase in Q3 2024 was driven by stronger sales volumes in the coatings market.
| Segment | Q3 2024 Revenue | Q3 2023 Revenue | 9M 2024 Revenue | 9M 2023 Revenue |
|---|---|---|---|---|
| Biofuels | $33,212,000 | $98,905,000 | $126,607,000 | $217,757,000 |
| Chemicals | $17,928,000 | $17,847,000 | $55,223,000 | $58,484,000 |
Cost of Goods Sold
For the three months ended September 30, 2024, the cost of goods sold (COGS) for biofuels was $50,152,000, leading to a gross loss of $3,024,000. For the nine months, COGS was $165,644,000 with a gross profit of $1,942,000.
Operating Expenses
Total operating expenses for the three months ended September 30, 2024, were $3,271,000, with a net loss of $1,195,000 compared to a net income of $2,776,000 in Q3 2023.
Adjusted EBITDA
Adjusted EBITDA for the nine months ended September 30, 2024, was $13,042,000, down from $18,230,000 in 2023.
Other Income
FutureFuel reported other income of $1,690,000 for Q3 2024, a decrease from $2,491,000 in Q3 2023. For the nine-month period, other income was $8,580,000, compared to $7,067,000 in 2023.
Cash Flow from Operations
Net cash provided by operating activities for the nine months ended September 30, 2024, was $41,415,000, a significant increase from $8,458,000 in the same period of 2023.
Dividends
On April 9, 2024, FutureFuel paid a special dividend of $2.50 per share, totaling $109,408,000. Regular cash dividends of $0.06 per share were paid each quarter of 2024.
Contractual Revenue
For the three months ended September 30, 2024, FutureFuel recognized $8,966,000 in revenue from customers with contracts longer than one year and $42,119,000 from customers with contracts shorter than one year.
Inventory
The carrying values of inventory as of September 30, 2024, were as follows:
| Type | Value (in thousands) |
|---|---|
| Finished Goods | $7,914 |
| Work in Process | $748 |
| Raw Materials and Supplies | $22,732 |
| Total Inventory | $24,878 |
Market Risks
FutureFuel faces commodity price risk inherent in both the chemicals and biofuels business, influencing both input costs and output prices.
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Resources:
- FutureFuel Corp. (FF) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of FutureFuel Corp. (FF)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View FutureFuel Corp. (FF)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.