REG reports record biodiesel gallons sold in Q3 financials

Renewable Energy Group Inc. announced its financial results for the third quarter ended Sept. 30. REG sold 77.6 million gallons of biodiesel in the third quarter 2013, an increase of 26 percent compared to the third quarter of 2012. Revenues of $458.4 million increased 42 percent year over year. The company achieved Adjusted EBITDA of $48.9 million during the third quarter 2013.

“We are pleased to report excellent performance in EBITDA, gallons produced, gallons sold, and revenues, driven by expanded nameplate production capacity and strong market demand,” said Daniel J. Oh, president and CEO. “By July, we had upgraded Albert Lea and commenced operations at the New Boston biorefinery. During the quarter, we focused on increasing production at these new facilities. We now have eight biorefineries in production, including the recent addition of our Mason City, Iowa plant, with an annual nameplate capacity of 257 million gallons. In addition, network expansion enabled us to increase the gallons of biodiesel we market and sell from other biodiesel plants.”

The 77.6 million gallons of biodiesel sold in the quarter represents record volume for REG. Gallons sold in the quarter included 17 million gallons produced by third parties. The company produced 56.8 million gallons of biodiesel during the quarter, which included 6.5 million toll-manufactured gallons. This compares to 45.4 million gallons year-over-year.

The company continued to increase and enhance its production capabilities. REG completed the purchase of a 30 MMgy nameplate capacity biorefinery in Mason City, Iowa. REG's New Boston, Texas, plant commenced operations in July and steadily improved its production rate during the quarter. Finally, third quarter was the first full quarter of lower cost feedstock operations at the Albert Lea, Minn., facility.

All figures refer to the quarter ending Sept. 30, 2013, unless otherwise noted. Adjusted EBITDA comparisons with the third quarter of 2012 include pro-rata volume based adjustments to the 2012 results to reflect the retroactive reinstatement of the Biodiesel Mixture Excise Tax Credit, commonly referred to as the blenders tax credit (BTC).

During the quarter, the average B100 price per gallon (including RINs) sold by REG was $4.95, an 11 percent increase year over year. REG sold 77.6 million gallons of biodiesel, an increase of 26 percent when compared to the third quarter of 2012.

Revenues of $458.4 million increased 42 percent when compared to the third quarter of 2012.

Gross profit was $57.8 million, compared to gross profit of $2.8 million for the third quarter of 2012.

Operating income was $45.2 million, compared to an operating loss of $7.1 million for the third quarter of 2012.

Net income attributable to common stockholders was $78.5 million, or $2.31 per share on a fully diluted basis. This compares to a net loss of $6.9 million, or $(0.24) per share on a fully diluted basis in the third quarter of 2012. The company recognized a tax benefit of $42.1 million, or $1.12 per share on a fully diluted basis. This benefit reflects the recent letter from the IRS that certain governmental incentive income is excluded from taxable income.

Adjusted EBITDA was $48.9 million, which compares to third quarter 2012 Adjusted EBITDA of $16.6 million, after adjusting for the allocation of the retroactive reinstatement of the 2012 BTC. Adjusted EBITDA is defined as earnings before interest, taxes, depreciation and amortization.

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