BioFuel Reports Fourth Quarter and Year End 2010 Results

Mar 28, 2011, 19:19 ET from BioFuel Energy Corp.

DENVER, March 28, 2011 /PRNewswire/ -- BIOFUEL ENERGY CORP. (Nasdaq: BIOF), an ethanol production company, today announced its fourth quarter and year end 2010 results.  For the year ended December 31, 2010, the net loss was $25.2 million on revenues of $453.4 million, compared with a net loss of $19.7 million on revenues of $415.5 million for the year ended December 31, 2009.  For the quarter ended December 31, 2010, the net loss was $1.1 million on revenues of $141.4 million, compared with net income of $8.8 million on revenues of $120.4 million in the year-ago quarter.  For the year ended December 31, 2010, the net loss attributable to common shareholders was $20.0 million, or $.79 per share, while for the fourth quarter the net loss attributable to common shareholders was $1.0 million, or $.04 per share.

For the full year 2010, the Company's operating loss was $13.6 million, which resulted from $454.6 million in cost of goods sold, including $323.9 million for corn, and $12.4 million in general and administrative expenses.  During the year the Company had $11.6 million in interest expense which resulted in a net loss of $25.2 million. Operating income for the fourth quarter 2010 was $2.5 million, which resulted from $136.3 million in cost of goods sold, including $104.8 million for corn, and $2.6 million in general and administrative expenses. The Company also had $3.5 million of interest expense in the fourth quarter, which resulted in a net loss of $1.1 million.

Scott H. Pearce, the Company's President and Chief Executive Officer, stated: "During the quarter we launched the rights offering at the end of December, which successfully closed in early February and improved our balance sheet.  While we are disappointed with our net loss for the year, we think our entire operations team can be proud of showing significant improvement in driving out operating costs over the course of the year."

At December 31, 2010, the Company had $189.4 million in term loans outstanding under its senior debt facility, $20.0 million borrowed under its bridge loan facility, and $21.4 million borrowed under its subordinated debt facility.  At December 31, 2010, the Company held $7.4 million of cash and equivalents and equity totaled $54.4 million, including $0.3 million of noncontrolling interest.  As previously announced, the Company completed its rights offering and concurrent LLC private placement on February 4, 2011, which generated aggregate gross proceeds of $46.0 million.  The Company used the proceeds to repay in full its bridge loan facility and subordinated debt facility and to make certain other payments.

The Company plans to host a conference call on Tuesday, March 29, 2011 beginning at 1:00 p.m. (EDT) to discuss the results.  To participate, please dial (800) 944-8766.  The participant code for the call is 13119.  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 153871.

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.

Contact:

Kelly G. Maguire

For more information:

Executive Vice President &

www.bfenergy.com

Chief Financial Officer

(303) 640-6500

kmaguire@bfenergy.com

BioFuel Energy Corp.  

(in thousands, except per share amounts)

Three Months Ended December 31,

Years Ended December 31,

Summary Income Statement  

2009

2010

2009

2010

Net sales

$            120,418

$            141,383

$ 415,514

$ 453,415

Cost of goods sold

105,839

136,301

404,750

454,638

Gross profit (loss)

14,579

5,082

10,764

(1,223)

General and administrative expenses:

  Compensation expense

1,609

1,678

6,160

6,830

  Other

1,267

923

9,327

5,565

Other operating expense

-

-

150

-

Operating income (loss)

11,703

2,481

(4,873)

(13,618)

Interest income

4

-

78

-

Interest expense

(2,870)

(3,544)

(14,906)

(11,605)

Other non-operating expense

-

-

(1)

-

Net income (loss)

8,837

(1,063)

(19,702)

(25,223)

Less: Net (income) loss attributable to the noncontrolling interest

(1,989)

16

6,072

5,240

Net income (loss) attributable to BioFuel Energy Corp. common shareholders

$                6,848

$               (1,047)

$ (13,630)

$ (19,983)

Income (loss) per share - basic attributable to BioFuel Energy Corp. common shareholders

$                  0.27

$                 (0.04)

$     (0.57)

$     (0.79)

Income (loss) per share - diluted attributable to BioFuel Energy Corp. common shareholders

$                  0.21

$                 (0.04)

$     (0.57)

$     (0.79)

Weighted average shares outstanding:

 Basic

24,902

25,449

23,792

25,421

 Diluted

32,593

25,449

23,792

25,421

Additional operational data  

Ethanol sold (gallons, in thousands)

55,821

56,511

218,389

224,187

Dry distillers grain sold (tons, in thousands)

123.8

120.7

484.6

498.1

Wet distillers grain sold (tons, in thousands)

87.7

95.8

370.8

362.1

Average FOB price of ethanol sold (per gallon)

$                  1.91

$                  2.16

$       1.64

$       1.77

Average FOB price of dry distillers grain sold (per ton)

$              101.78

$              132.57

$   106.45

$   102.38

Average FOB price of wet distillers grain sold (per ton)

$                29.44

$                44.76

$     33.18

$     28.61

Average corn cost (per bushel)

$                  3.67

$                  5.06

$       3.61

$       4.02

December 31,

December 31,

Summary Balance Sheet  

2009

2010

Cash and equivalents

$                6,109

$                7,428

Accounts receivable

23,745

27,802

Inventories

20,885

23,689

Prepaid expenses

2,529

1,561

Other current assets

325

3,330

Property, plant and equipment, net

284,362

260,078

Debt issuance costs, net

6,472

4,979

Other non-current assets

2,348

2,844

Total assets

$            346,775

$            331,711

Total current liabilities

$              40,830

$              52,238

Long-term debt, net of current portion

220,754

215,479

Tax increment financing, net of current portion

5,591

5,245

Other non-current liabilities

1,705

4,327

Total liabilities

268,880

277,289

BioFuel Energy Corp. stockholders' equity

72,235

54,170

Noncontrolling interest

5,660

252

Total equity

77,895

54,422

Total liabilities and stockholders' equity  

$            346,775

$            331,711

Total shares outstanding at March 22, 2011 (a)

123,064,368

(a) Includes common shares and Class B common shares, net of 809,606 shares held in treasury.

SOURCE BioFuel Energy Corp.



RELATED LINKS

http://www.bfenergy.com