√
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2011
OR
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from _____________
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Delaware
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20-3340900
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(State or Other Jurisdiction of Incorporation or Organization)
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(IRS Employer Identification No.)
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Large accelerated filer
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Accelerated filer √
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Non-accelerated filer
(do not check if a smaller reporting company)
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Smaller reporting company
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(Unaudited) June 30, 2011
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December 31, 2010
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|||||||
Assets
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||||||||
Cash and cash equivalents
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$ | 94,525 | $ | 91,057 | ||||
Accounts receivable, net of allowances of $10
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30,251 | 35,165 | ||||||
Accounts receivable – related parties
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247 | - | ||||||
Inventory
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40,376 | 37,372 | ||||||
Income taxes receivable
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- | 519 | ||||||
Prepaid expenses
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854 | 1,240 | ||||||
Marketable securities
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52,756 | 28,200 | ||||||
Restricted cash and cash equivalents
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- | 21,086 | ||||||
Other current assets
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1,666 | 1,015 | ||||||
Total current assets
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220,675 | 215,654 | ||||||
Property, plant and equipment, net
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137,605 | 125,007 | ||||||
Intangible assets
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38 | 94 | ||||||
Other assets
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2,221 | 2,401 | ||||||
Total noncurrent assets
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139,864 | 127,502 | ||||||
Total Assets
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$ | 360,539 | $ | 343,156 | ||||
Liabilities and Stockholders’ Equity
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||||||||
Accounts payable
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$ | 14,260 | $ | 14,628 | ||||
Accounts payable - related parties
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418 | 468 | ||||||
Income taxes payable
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1,850 | - | ||||||
Current deferred income tax liability
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4,831 | 4,661 | ||||||
Deferred revenue – short-term
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1,726 | 1,758 | ||||||
Short position – marketable debt securities
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- | 19,295 | ||||||
Accrued expenses and other current liabilities
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5,174 | 3,341 | ||||||
Accrued expenses and other current liabilities - related parties
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32 | 8 | ||||||
Total current liabilities
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28,291 | 44,159 | ||||||
Deferred revenue – long-term
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29,712 | 17,118 | ||||||
Contingent liability – long-term
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2,464 | 2,289 | ||||||
Other noncurrent liabilities
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913 | 903 | ||||||
Noncurrent deferred income tax liability
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26,945 | 26,364 | ||||||
Total noncurrent liabilities
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60,034 | 46,674 | ||||||
Total Liabilities
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88,325 | 90,833 | ||||||
Commitments and contingencies
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||||||||
Preferred stock, $0.0001 par value, 5,000,000 shares authorized, none issued and outstanding
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- | - | ||||||
Common stock, $0.0001 par value, 75,000,000 shares authorized, 41,297,834 and 39,978,849 issued and outstanding as of June 30, 2011 and December 31, 2010, respectively
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4 | 4 | ||||||
Accumulated other comprehensive income
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959 | 525 | ||||||
Additional paid in capital
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253,423 | 237,123 | ||||||
Retained earnings
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17,828 | 14,671 | ||||||
Total stockholders’ equity
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272,214 | 252,323 | ||||||
Total Liabilities and Stockholders’ Equity
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$ | 360,539 | $ | 343,156 |
Three Months Ended June 30,
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||||||||
2011
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2010
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|||||||
Revenues
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$ | 73,963 | $ | 51,714 | ||||
Revenues – related parties
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765 | - | ||||||
Cost of goods sold
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56,962 | 43,484 | ||||||
Cost of goods sold – related parties
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1,407 | 895 | ||||||
Distribution
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829 | 932 | ||||||
Distribution – related parties
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101 | 101 | ||||||
Gross profit
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15,429 | 6,302 | ||||||
Selling, general and administrative expenses
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||||||||
Compensation expense (inclusive of $502 and $0 of stock based compensation for the three months ended June 30, 2011 and 2010, respectively)
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1,320 | 731 | ||||||
Other expense
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521 | 409 | ||||||
Related party expense
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71 | 35 | ||||||
Research and development expenses
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861 | 886 | ||||||
2,773 | 2,061 | |||||||
Income from operations
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12,656 | 4,241 | ||||||
Interest income
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811 | 222 | ||||||
Interest expense
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(36 | ) | (5 | ) | ||||
Loss on marketable securities
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(37 | ) | (4 | ) | ||||
Other (expense) income
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(22 | ) | 18 | |||||
716 | 231 | |||||||
Income before income taxes
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13,372 | 4,472 | ||||||
Provision for income taxes
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4,933 | 1,709 | ||||||
Net income
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$ | 8,439 | $ | 2,763 | ||||
Earnings per common share
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||||||||
Basic
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$ | 0.21 | $ | 0.08 | ||||
Diluted
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$ | 0.21 | $ | 0.07 | ||||
Weighted average shares outstanding
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||||||||
Basic
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40,234,242 | 36,773,695 | ||||||
Diluted
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40,438,023 | 37,522,593 | ||||||
Comprehensive Income
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||||||||
Net income
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$ | 8,439 | $ | 2,763 | ||||
Other comprehensive loss, net of tax of $(346) in 2011 and of $(41) in 2010
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(553 | ) | (66 | ) | ||||
Comprehensive income
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$ | 7,886 | $ | 2,697 |
Six Months Ended June 30,
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||||||||
2011
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2010
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|||||||
Revenues
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$ | 126,179 | $ | 99,477 | ||||
Revenues – related parties
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3,790 | - | ||||||
Cost of goods sold
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102,349 | 80,953 | ||||||
Cost of goods sold – related parties
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5,610 | 2,363 | ||||||
Distribution
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1,349 | 1,703 | ||||||
Distribution – related parties
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234 | 215 | ||||||
Gross profit
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20,427 | 14,243 | ||||||
Selling, general and administrative expenses
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||||||||
Compensation expense (inclusive of $502 and $0 of stock based compensation for the six months ended June 30, 2011 and 2010, respectively)
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2,129 | 1,462 | ||||||
Other expense
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691 | 905 | ||||||
Related party expense
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119 | 70 | ||||||
Research and development expenses
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1,614 | 1,786 | ||||||
4,553 | 4,223 | |||||||
Income from operations
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15,874 | 10,020 | ||||||
Interest income
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1,587 | 344 | ||||||
Interest expense
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(170 | ) | (11 | ) | ||||
Gain/(loss) on marketable securities
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58 | (4 | ) | |||||
Other (expense) income
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(27 | ) | 42 | |||||
1,448 | 371 | |||||||
Income before income taxes
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17,322 | 10,391 | ||||||
Provision for income taxes
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6,169 | 3,969 | ||||||
Net income
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$ | 11,153 | $ | 6,422 | ||||
Earnings per common share
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||||||||
Basic
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$ | 0.28 | $ | 0.19 | ||||
Diluted
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$ | 0.28 | $ | 0.19 | ||||
Weighted average shares outstanding
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||||||||
Basic
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40,109,268 | 33,040,280 | ||||||
Diluted
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40,285,249 | 34,261,022 | ||||||
Comprehensive Income
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||||||||
Net income
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$ | 11,153 | $ | 6,422 | ||||
Other comprehensive income, net of tax of $272 in 2011 and of $37 in 2010
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434 | 60 | ||||||
Comprehensive income
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$ | 11,587 | $ | 6,482 |
Six Months Ended June 30,
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||||||||
2011
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2010
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|||||||
Cash flows provided by operating activities
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||||||||
Net income
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$ | 11,153 | $ | 6,422 | ||||
Adjustments to reconcile net income to net cash provided by operating activities:
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||||||||
Depreciation
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3,884 | 3,803 | ||||||
Provision for (benefit from) deferred income taxes
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478 | (253 | ) | |||||
Change in fair value of derivative instruments and marketable securities
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984 | (430 | ) | |||||
Loss on the sale of investments
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148 | 4 | ||||||
Losses on disposals of fixed assets
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27 | 42 | ||||||
Stock based compensation
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502 | - | ||||||
Noncash interest expense
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11 | 11 | ||||||
Changes in operating assets and liabilities:
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||||||||
Accounts receivable
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4,915 | (1,715 | ) | |||||
Accounts receivable – related parties
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(247 | ) | - | |||||
Inventory
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(3,004 | ) | (2,843 | ) | ||||
Income taxes receivable
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519 | 112 | ||||||
Prepaid expenses
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386 | 537 | ||||||
Prepaid expenses – related parties
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- | 23 | ||||||
Accrued interest on marketable securities
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(123 | ) | (5 | ) | ||||
Other assets
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274 | 194 | ||||||
Accounts payable
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(368 | ) | (4,281 | ) | ||||
Accounts payable – related parties
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(50 | ) | (284 | ) | ||||
Income taxes payable
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1,849 | - | ||||||
Accrued expenses and other current liabilities
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1,832 | 1,856 | ||||||
Accrued expenses and other current liabilities – related parties
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23 | (47 | ) | |||||
Deferred revenue
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11,602 | 4,647 | ||||||
Other noncurrent liabilities
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- | 21 | ||||||
Net cash provided by operating activities
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34,795 | 7,814 | ||||||
Cash flows from investing activities
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||||||||
Restricted cash
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21,086 | - | ||||||
Collateralization of derivative instruments
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(1,920 | ) | 9 | |||||
Purchase of marketable securities
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(70,072 | ) | (6,034 | ) | ||||
Proceeds from the sale of marketable securities
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27,090 | 425 | ||||||
Proceeds from the sale of fixed assets
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12 | - | ||||||
Capital expenditures
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(15,325 | ) | (3,896 | ) | ||||
Net cash used in investing activities
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(39,129 | ) | (9,496 | ) | ||||
Cash flows from financing activities
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||||||||
Proceeds from the issuance of stock
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15,798 | 67,994 | ||||||
Purchase of warrants
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- | (878 | ) | |||||
Payment of dividend
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(7,996 | ) | (15,062 | ) | ||||
Net cash provided by financing activities
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7,802 | 52,054 | ||||||
Net change in cash and cash equivalents
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3,468 | 50,372 | ||||||
Cash and cash equivalents at beginning of period
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91,057 | 65,512 | ||||||
Cash and cash equivalents at end of period
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$ | 94,525 | $ | 115,884 | ||||
Cash paid for interest
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$ | - | $ | - | ||||
Cash paid for income taxes
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$ | 2,857 | $ | 4,090 | ||||
Non-cash capital expenditures
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$ | 1,134 | $ | - |
June 30, 2011
|
December 31, 2010
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|||||||
At average cost (approximates current cost)
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||||||||
Finished goods
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$ | 15,513 | $ | 6,659 | ||||
Work in process
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2,118 | 1,999 | ||||||
Raw materials and supplies
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37,385 | 36,652 | ||||||
55,016 | 45,310 | |||||||
LIFO reserve
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(14,640 | ) | (7,938 | ) | ||||
Total inventories
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$ | 40,376 | $ | 37,372 |
Asset/(Liability)
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||||||||||||||||
June 30, 2011
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December 31, 2010
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|||||||||||||||
Quantity (Contracts) Long/ (Short)
|
Fair Value
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Quantity (Contracts) Long/ (Short)
|
Fair Value
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|||||||||||||
Regulated options, included in other current assets
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(175 | ) | $ | (2,353 | ) | (225 | ) | $ | (1,620 | ) | ||||||
Regulated fixed price future commitments, included in other current assets
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(65 | ) | $ | (469 | ) | (44 | ) | $ | (29 | ) |
June 30, 2011
|
December 31, 2010
|
|||||||
Accrued employee liabilities
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$ | 3,660 | $ | 1,727 | ||||
Accrued property, use and franchise taxes
|
1,546 | 1,174 | ||||||
Other
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- | 448 | ||||||
Total
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$ | 5,206 | $ | 3,349 |
Leverage
Ratio
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Base Rate
Margin
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LIBOR
Margin
|
||||||
> 3
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-0.55% | 1.70% | ||||||
> 2 < 3
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-0.70% | 1.55% | ||||||
> 1 < 2
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-0.85% | 1.40% | ||||||
< 1
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-1.00% | 1.25% |
For the three months ended June 30,
|
For the six months ended June 30,
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
Provision for income taxes
|
$ | 4,933 | $ | 1,709 | $ | 6,169 | $ | 3,969 | ||||||||
Effective tax rate
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36.9 | % | 38.2 | % | 35.6 | % | 38.2 | % |
For the three months ended June 30,
|
For the six months ended June 30,
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
Net income available to common stockholders
|
$ | 8,439 | $ | 2,763 | $ | 11,153 | $ | 6,422 | ||||||||
Weighted average number of common shares outstanding
|
40,234,242 | 36,773,695 | 40,109,268 | 33,040,280 | ||||||||||||
Effect of warrants
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- | 721,575 | - | 1,193,092 | ||||||||||||
Effect of stock options
|
203,781 | 27,323 | 175,981 | 27,650 | ||||||||||||
Weighted average diluted number of common shares outstanding
|
40,438,023 | 37,522,593 | 40,285,249 | 34,261,022 | ||||||||||||
Basic earnings per share
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$ | 0.21 | $ | 0.08 | $ | 0.28 | $ | 0.19 | ||||||||
Diluted earnings per share
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$ | 0.21 | $ | 0.07 | $ | 0.28 | $ | 0.19 |
Three Months Ended
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United States
|
All Foreign Countries
|
Total
|
|||||||||
June 30, 2011
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$ | 73,512 | $ | 1,216 | $ | 74,728 | ||||||
June 30, 2010
|
$ | 47,011 | $ | 4,703 | $ | 51,714 |
Six Months Ended
|
United States
|
All Foreign Countries
|
Total
|
|||||||||
June 30, 2011
|
$ | 125,089 | $ | 4,880 | $ | 129,969 | ||||||
June 30, 2010
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$ | 89,940 | $ | 9,537 | $ | 99,477 |
For the three months ended June 30,
|
For the six months ended June 30,
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
Revenues
|
||||||||||||||||
Chemicals
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$ | 36,851 | $ | 40,255 | $ | 81,547 | $ | 83,857 | ||||||||
Biofuels
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37,877 | 11,459 | 48,422 | 15,620 | ||||||||||||
Revenues
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$ | 74,728 | $ | 51,714 | $ | 129,969 | $ | 99,477 | ||||||||
Segment gross profit
|
||||||||||||||||
Chemicals
|
$ | 7,068 | $ | 8,706 | $ | 14,842 | $ | 17,932 | ||||||||
Biofuels
|
8,361 | (2,404 | ) | 5,585 | (3,689 | ) | ||||||||||
Segment gross margins
|
15,429 | 6,302 | 20,427 | 14,243 | ||||||||||||
Corporate expenses
|
(2,773 | ) | (2,061 | ) | (4,553 | ) | (4,223 | ) | ||||||||
Income before interest and taxes
|
12,656 | 4,241 | 15,874 | 10,020 | ||||||||||||
Interest and other income
|
811 | 240 | 1,645 | 386 | ||||||||||||
Interest and other expense
|
(95 | ) | (9 | ) | (197 | ) | (15 | ) | ||||||||
Provision for income taxes
|
(4,933 | ) | (1,709 | ) | (6,169 | ) | (3,969 | ) | ||||||||
Net income
|
$ | 8,439 | $ | 2,763 | $ | 11,153 | $ | 6,422 |
Asset/(Liability)
|
||||||||||||||||
Fair Value at June 30,
|
Fair Value Measurements Using
Inputs Considered as
|
|||||||||||||||
Description
|
2011
|
Level 1
|
Level 2
|
Level 3
|
||||||||||||
Derivative instruments
|
$ | (2,822 | ) | $ | (2,822 | ) | $ | - | $ | - | ||||||
Preferred stock, trust preferred securities, and other equity instruments
|
$ | 52,756 | $ | 52,756 | $ | - | $ | - |
Asset/(Liability)
|
||||||||||||||||
Fair Value at December 31,
|
Fair Value Measurements Using
Inputs Considered as
|
|||||||||||||||
Description
|
2010
|
Level 1
|
Level 2
|
Level 3
|
||||||||||||
Derivative instruments
|
$ | (1,649 | ) | $ | (1,649 | ) | $ | - | $ | - | ||||||
Preferred stock, trust preferred securities, and other equity instruments
|
$ | 28,200 | $ | 28,200 | $ | - | $ | - | ||||||||
Short position on marketable debt securities
|
$ | (19,295 | ) | $ | - | $ | (19,295 | ) | $ | - |
First Half, 2011
|
First Half, 2010
|
|||||||
Net cash provided by operating activities
|
$ | 34,795 | $ | 7,814 | ||||
Net cash used in investing activities
|
$ | (39,129 | ) | $ | (9,496 | ) | ||
Net cash provided by financing activities
|
$ | 7,802 | $ | 52,054 |
First Half, 2011
|
First Half, 2010
|
|||||||
Capital expenditures
|
$ | 15,325 | $ | 3,896 | ||||
Cash received as reimbursement of capital expenditures
|
(10,456 | ) | (895 | ) | ||||
Net cash paid for capital expenditures
|
$ | 4,869 | $ | 3,001 |
Number of Shares Sold
|
Net Proceeds
|
Compensation to Stifel
|
1,313,985
|
$15,763,000
|
$488,000
|
Item
|
Volume(a) Requirements
|
Units
|
Hypothetical Adverse Change in Price
|
Decrease in Gross Profit
|
Percentage Decrease in Gross Profit
|
||||||||||||
Biodiesel feedstock
|
59,652,627 |
LB
|
10% | $ | 2,428 | 11.9% | |||||||||||
Ultra low sulphur diesel
|
2,024,489 |
GAL
|
10% | $ | 533 | 2.6% | |||||||||||
Electricity
|
47,183 |
MWH
|
10% | $ | 253 | 1.2% | |||||||||||
Natural gas
|
448,383 |
MCF
|
10% | $ | 221 | 1.1% | |||||||||||
Proprionic anhydride
|
1,959,930 |
LB
|
10% | $ | 201 | 1.0% |
(a)
|
Volume requirements and average price information are based upon volumes used and prices obtained for the six months ended June 30, 2011. Volume requirements may differ materially from these quantities in future years as our business evolves.
|
Number of Shares Sold
|
Net Proceeds
|
Compensation to Stifel
|
1,313,985
|
$15,763,000
|
$488,000
|
Exhibit
|
Description
|
3.1.
|
Fourth Amended and Restated Certificate of Incorporation (incorporated by reference to Exhibit No. 3.3.f to Amendment No. 2 to Form 10 filed February 29, 2008)
|
3.2.
|
FutureFuel Corp.’s Bylaws (incorporated by reference to Exhibit No. 3.2.a to Form 10 filed April 24, 2007)
|
4.1.
|
Investor Rights Agreement dated July 12, 2006 among FutureFuel Corp., CRT Capital Group LLC and KBC Peel Hunt Ltd (incorporated by reference to Exhibit No. 4.4 to Form 10 filed April 24, 2007)
|
4.2.
|
Registration Rights Agreement dated July 12, 2006 among FutureFuel Corp., St. Albans Global Management, Limited Partnership, LLLP, Lee E. Mikles as Trustee of the Lee E. Mikles Gift Trust dated October 6, 1999, Lee E. Mikles as Trustee of the Lee E. Mikles Revocable Trust dated March 26, 1996, Douglas D. Hommert as Trustee of the Douglas D. Hommert Revocable Trust, Edwin A. Levy, Joe C. Leach, Mark R. Miller, RAS LLC, Edwin L. Wahl, Jeffery H. Call and Ken Fenton (incorporated by reference to Exhibit No. 4.5 to Form 10 filed April 24, 2007)
|
Exhibit |
Description
|
10.1.
|
Registrar Agreement dated June 27, 2008 between FutureFuel Corp. and Computershare Investor Services (Channel Islands) Limited (incorporated by reference to Exhibit No. 10.2 to Form 10-K filed March 16, 2009)
|
10.2.
|
Storage and Thruput Agreement dated November 1, 2006 between FutureFuel Chemical Company and Center Point Terminal Company (incorporated by reference to Exhibit No. 10. to Form 10 filed April 24, 2007)
|
10.3.
|
Commodity Trading Advisor Agreement dated November 1, 2006 between FutureFuel Chemical Company and Apex Oil Company, Inc. (incorporated by reference to Exhibit No. 10.5 to Form 10 filed April 24, 2007)
|
10.4.
|
Service Agreement dated November 1, 2006 between FutureFuel Corp. and Pinnacle Consulting, Inc. (incorporated by reference to Exhibit No. 10.6 to Form 10 filed April 24, 2007)
|
10.5.
|
Purchase Agreement made and entered into as of April 1, 2008 between The Procter & Gamble Manufacturing Company, The Procter & Gamble Distributing LLC and Procter & Gamble International Operations SA, as buyer, and FutureFuel Chemical Company, as seller (portions of the exhibit have been omitted pursuant to a request for confidential treatment) (incorporated by reference to Exhibit 10.7 to Form 10-Q filed August 14, 2008.)
|
10.6.
|
Custom Manufacturing Agreement dated September 1, 1992 between Tomen Corporation and Eastman Kodak Company, as amended October 2, 1992, February 1, 1993, March 19, 1993, September 28, 1995, October 30, 1998, May 24, 1999, November 10, 1999, December 12, 2000 and July 25, 2006 (portions of the exhibit have been omitted pursuant to a request for confidential treatment) (incorporated by reference to Exhibit No. 10.8 to Form 10 filed April 24, 2007)
|
10.7.
|
Credit Agreement dated March 14, 2007 between FutureFuel Chemical Company and Regions Bank (portions of the exhibit have been omitted pursuant to a request for confidential treatment) (incorporated by reference to Exhibit No. 10.10 to Form 10 filed April 24, 2007)
|
10.8.
|
Revolving Credit Promissory Note dated March 14, 2007 executed by FutureFuel Chemical Company and payable to the order of Regions Bank (incorporated by reference to Exhibit No. 10.11 to Form 10 filed April 24, 2007)
|
10.9.
|
Security Agreement -Accounts and Inventory dated March 14, 2007 executed by FutureFuel Chemical Company in favor of Regions Bank (incorporated by reference to Exhibit No. 10.12 to Form 10 filed April 24, 2007)
|
10.10.
|
Continuing Unlimited Guaranty Agreement dated March 14, 2007 executed by FutureFuel Corp. in favor of Regions Bank (incorporated by reference to Exhibit No. 10.13 to Form 10 filed April 24, 2007)
|
10.11.
|
Second Modification Agreement dated March 14, 2010 between FutureFuel Chemical Company and Regions Bank (incorporated by reference to Exhibit 10.12 to Form 10-K filed March 16, 2011)
|
10.12.
|
Time Sharing Agreement dated April 18, 2007 between Apex Oil Company, Inc. and FutureFuel Corp. (incorporated by reference to Exhibit No. 10.15 to Form 10 filed April 24, 2007)
|
10.13.
|
Omnibus Incentive Plan (incorporated by reference to Exhibit No. 10.16 to Amendment No. 1 to Form 10 filed June 26, 2007)
|
10.14. | Assistance Agreement effective June 16, 2010 between FutureFuel Chemical Company and the U.S. Department of Energy/National Energy Technology Laboratory (portions of exhibit omitted pursuant to a request for confidential treatment) (incorporated by reference to Exhibit 10.15 to Form 10-K filed March 16,2011) |
Exhibit |
Description
|
10.15.
|
At-The-Market Equity Offering Sales Agreement, dated May 10, 2011, between FutureFuel Corp. and Stifel, Nicolaus & Company, Incorporated (incorporated by reference to Exhibit 1.1 to Form 8-K filed May 10,2011)
|
11.
|
Statement re Computation of per Share Earnings
|
31(i).
|
Rule 13a-15(e)/15d-15(e) Certification of chief executive officer
|
31(ii).
|
Rule 13a-15(e)/15d-15(e) Certification of principal financial officer
|
32.
|
Section 1350 Certification of chief executive officer and principal financial officer
|
FUTUREFUEL CORP.
|
|||
By: /s/ Douglas D. Hommert | |||
Douglas D. Hommert, Executive Vice President, Secretary and Treasurer
|
|||
Date: August 9, 2011 |
For the three months ended June 30,
|
For the six months ended June 30,
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
Net income available to common stockholders
|
$ | 8,439 | $ | 2,763 | $ | 11,153 | $ | 6,422 | ||||||||
Weighted average number of common shares outstanding
|
40,234,242 | 36,773,695 | 40,109,268 | 33,040,280 | ||||||||||||
Effect of warrants
|
- | 721,575 | - | 1,193,092 | ||||||||||||
Effect of stock options
|
203,781 | 27,323 | 175,981 | 27,650 | ||||||||||||
Weighted average diluted number of common shares outstanding
|
40,438,023 | 37,522,593 | 40,285,249 | 34,261,022 | ||||||||||||
Basic earnings per share
|
$ | 0.21 | $ | 0.08 | $ | 0.28 | $ | 0.19 | ||||||||
Diluted earnings per share
|
$ | 0.21 | $ | 0.07 | $ | 0.28 | $ | 0.19 |
|
1.
|
I have reviewed this report on Form 10-Q of FutureFuel Corp. (the “registrant”).
|
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report.
|
|
3.
|
Based on my knowledge, the financial statements, and the other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report.
|
|
4.
|
The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have:
|
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under my supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
(c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially effect, the registrant’s internal control over financial reporting.
|
|
5.
|
The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors:
|
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date: August 9, 2011 | |||
/s/ Lee E. Mikles
|
|||
Lee E. Mikles
|
|||
President and Chief Executive Officer | |||
|
1.
|
I have reviewed this report on Form 10-Q of FutureFuel Corp. (the “registrant”).
|
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report.
|
|
3.
|
Based on my knowledge, the financial statements, and the other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report.
|
|
4.
|
The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have:
|
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under my supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
(c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially effect, the registrant’s internal control over financial reporting.
|
|
5.
|
The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors:
|
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date: August 9, 2011 | |||
/s/ Douglas D. Hommert | |||
Douglas D. Hommert, Principal Financial Officer, | |||
Executive Vice President, Secretary and Treasurer |
1.
|
The Report fully complies with the requirements of §13(a) of the Securities Exchange Act of 1934, as amended.
|
2.
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
|
/s/ Lee E. Mikles | ||
Lee E. Mikles,
|
|||
President and Chief Executive Officer | |||
/s/ Douglas D. Hommert | |||
Douglas D. Hommert, Principal Financial Officer, | |||
Executive Vice President, Secretary and Treasurer
|
|||
August 9, 2011 | |||
Consolidated Balance Sheets(Unaudited) (Parentheticals) (USD $)
In Thousands, except Share data |
Jun. 30, 2011
|
Dec. 31, 2010
|
---|---|---|
Accounts receivable net allowances (in Dollars) | $ 10 | $ 10 |
Preferred stock par value (in Dollars per share) | $ 0 | $ 0 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock par value (in Dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock shares authorized | 75,000,000 | 75,000,000 |
Common stock shares issued | 41,297,834 | 39,978,849 |
Common stock shares outstanding | 41,297,834 | 39,978,849 |
FutureFuel Corp. Consolidated Statements of Operations and Comprehensive Income Three and Six Months(Unaudited) (USD $)
In Thousands, except Share data |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2011
|
Jun. 30, 2010
|
Jun. 30, 2011
|
Jun. 30, 2010
|
|
Revenues | $ 73,963 | $ 51,714 | $ 126,179 | $ 99,477 |
Revenues – related parties | 765 | 0 | 3,790 | 0 |
Cost of goods sold | 56,962 | 43,484 | 102,349 | 80,953 |
Cost of goods sold – related parties | 1,407 | 895 | 5,610 | 2,363 |
Distribution | 829 | 932 | 1,349 | 1,703 |
Distribution – related parties | 101 | 101 | 234 | 215 |
Gross profit | 15,429 | 6,302 | 20,427 | 14,243 |
Selling, general and administrative expenses | Â | Â | Â | Â |
Compensation expense (inclusive of $502 and $0 of stock based compensation for the three months ended June 30, 2011 and 2010, respectively) | 1,320 | 731 | 2,129 | 1,462 |
Other expense | 521 | 409 | 691 | 905 |
Related party expense | 71 | 35 | 119 | 70 |
Research and development expenses | 861 | 886 | 1,614 | 1,786 |
[OperatingExpenses] | 2,773 | 2,061 | 4,553 | 4,223 |
Income from operations | 12,656 | 4,241 | 15,874 | 10,020 |
Interest income | 811 | 222 | 1,587 | 344 |
Interest expense | (36) | (5) | (170) | (11) |
Loss on marketable securities | (37) | (4) | 58 | (4) |
Other (expense) income | (22) | 18 | (27) | 42 |
[NonoperatingIncomeExpense] | 716 | 231 | 1,448 | 371 |
Income before income taxes | 13,372 | 4,472 | 17,322 | 10,391 |
Provision for income taxes | 4,933 | 1,709 | 6,169 | 3,969 |
Net income | 8,439 | 2,763 | 11,153 | 6,422 |
Basic (in Dollars per share) | $ 0.21 | $ 0.08 | $ 0.28 | $ 0.19 |
Diluted (in Dollars per share) | $ 0.21 | $ 0.07 | $ 0.28 | $ 0.19 |
Basic (in Shares) | 40,234,242 | 36,773,695 | 40,109,268 | 33,040,280 |
Diluted (in Shares) | 40,438,023 | 37,522,593 | 40,285,249 | 34,261,022 |
Net income | 8,439 | 2,763 | 11,153 | 6,422 |
Other comprehensive loss, net of tax of $(346) in 2011 and of $(41) in 2010 Other comprehensive income, net of tax of $272 in 2011 and of $37 in 2010 | (553) | (66) | 434 | 60 |
Comprehensive income | $ 7,886 | $ 2,697 | $ 11,587 | $ 6,482 |
Document And Entity Information
|
6 Months Ended | |
---|---|---|
Jun. 30, 2011
|
Aug. 09, 2011
|
|
Document and Entity Information [Abstract] | Â | Â |
Entity Registrant Name | FUTUREFUEL CORP. | Â |
Document Type | 10-Q | Â |
Current Fiscal Year End Date | --12-31 | Â |
Entity Common Stock, Shares Outstanding | Â | 41,297,834 |
Amendment Flag | false | Â |
Entity Central Index Key | 0001337298 | Â |
Entity Current Reporting Status | Yes | Â |
Entity Voluntary Filers | No | Â |
Entity Filer Category | Accelerated Filer | Â |
Entity Well-known Seasoned Issuer | No | Â |
Document Period End Date | Jun. 30, 2011 | |
Document Fiscal Year Focus | 2011 | Â |
Document Fiscal Period Focus | Q2 | Â |
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Note 6 - Borrowings
|
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2011
|
||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Text Block] |
6)
Borrowings
In
March 2007 FutureFuel Chemical entered into a
$50 million credit agreement with a commercial
bank. The loan is a revolving facility the
proceeds of which may be used for working capital, capital
expenditures, and the general corporate purposes of
FutureFuel Chemical. The facility terminates on
June 30, 2013. Advances are made pursuant to
a borrowing base comprised of 85% of eligible accounts plus
60% of eligible direct inventory plus 50% of eligible
indirect inventory. Advances are secured by a
perfected first priority security interest in accounts
receivable and inventory. The interest rate floats
at certain margins over the London Interbank Offered Rate
(“LIBOR”) or base rate based upon the leverage
ratio from time to time as set forth in the following
table.
There
is an unused commitment fee of 0.325% per
annum. On the last day of each fiscal quarter, the
ratio of EBITDA to fixed charges may not be less than
3:1. FutureFuel has guaranteed FutureFuel
Chemical’s obligations under this credit
agreement.
There
were no borrowings at June 30, 2011 or December 31,
2010.
|
Note 11 - Related party transactions
|
6 Months Ended |
---|---|
Jun. 30, 2011
|
|
Related Party Transactions Disclosure [Text Block] |
11) Related
party transactions
FutureFuel
enters into transactions with companies affiliated with or
controlled by a director and significant
shareholder. Revenues, expenses, prepaid amounts
and unpaid amounts related to these transactions are captured
in the accompanying consolidated financial statements of
FutureFuel as related party line items.
Related
party revenues are the result of sales of biodiesel,
petrodiesel and blends to these related parties.
Related
party cost of goods sold and distribution are the result of
sales of biodiesel, petrodiesel and blends to these related
parties along with the associated expense from the purchase
of natural gas, storage and terminalling services and income
tax and consulting services by FutureFuel from these related
parties.
|
Note 2 - Inventories
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2011
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Text Block] |
2)
Inventories
The
carrying values of inventory were as follows as of:
|
Note 8 - Earnings per share
|
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2011
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Text Block] |
8)
Earnings per share
The
computation of basic and diluted earnings per common share
was as follows:
Certain
options to purchase shares of FutureFuel’s common stock
were not included in the computation of diluted earnings per
share for the three and six months ended June 30, 2011
and 2010 as they were anti-dilutive. The weighted
average number of options excluded on this basis was 60,000
and 120,000 for the three and six month periods ended June
30, 2011, respectively. The weighted average
number of options excluded on this basis was 285,500 and
283,000 for the three and six month periods ended June 30,
2010, respectively.
|
Note 9 - Segment information
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2011
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting Disclosure [Text Block] |
9) Segment
information
FutureFuel
has determined that is has two reportable segments organized
along product lines – chemicals and biofuels.
Chemicals
FutureFuel’s
chemicals segment manufactures diversified chemical products
that are sold externally to third party
customers. This segment comprises two components:
“custom manufacturing” (manufacturing chemicals
for specific customers); and “performance
chemicals” (multi-customer specialty chemicals).
Biofuels
FutureFuel’s
biofuels business segment manufactures and markets
biodiesel. Biodiesel revenues are generated
through the sale of biodiesel to customers through
FutureFuel’s distribution network at the Batesville
Plant and through distribution facilities available at a
leased oil storage facility near Little Rock, Arkansas at
negotiated prices.
Summary
of long-lived assets and revenues by geographic area
All
of FutureFuel’s long-lived assets are located in the
U.S.
Most
of FutureFuel’s sales are transacted with title passing
at the time of shipment from the Batesville Plant, although
some sales are transacted based on title passing at the
delivery point. While many of FutureFuel’s
chemicals are utilized to manufacture products that are
shipped, further processed, and/or consumed throughout the
world, the chemical products, with limited exceptions,
generally leave the United States only after ownership has
transferred from FutureFuel to the
customer. Rarely is FutureFuel the exporter of
record, never is FutureFuel the importer of record into
foreign countries, and FutureFuel is not always aware of the
exact quantities of its products that are moved into foreign
markets by its customers. FutureFuel does track
the addresses of its customers for invoicing purposes and
uses this address to determine whether a particular sale is
within or without the United
States. FutureFuel’s revenues attributable
to the United States and foreign countries (based upon the
billing addresses of its customers) were as follows:
For
the three months ended June 30, 2011 and 2010, revenues
from Mexico accounted for 1% and 8%, respectively, of total
revenues. For the six months ended June 30,
2011 and 2010, revenues from Mexico accounted for 3% and 9%,
respectively, of total revenues. Other than
Mexico, revenues from a single foreign country during the
three or six months ended June 30, 2011 and 2010 did not
exceed 1% of total revenues.
Summary
of business by segment
Depreciation
is allocated to segment costs of goods sold based on plant
usage. The total assets and capital expenditures
of FutureFuel have not been allocated to individual segments
as large portions of these assets are shared to varying
degrees by each segment, causing such an allocation to be of
little value.
|
Note 7 - Provision for income taxes
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2011
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Text Block] |
7)
Provision for income taxes
The
effective tax rates for the three and six months ended
June 30, 2011 and 2010 reflect FutureFuel’s
expected tax rate on reported operating earnings before
income tax.
FutureFuel
has no unrecognized tax benefits at June 30, 2011 or
December 31, 2010.
FutureFuel
records interest and penalties net as a component of income
tax expense. FutureFuel had no accrual for
interest or tax penalties at June 30, 2011 or
December 31, 2010.
FutureFuel
and its subsidiary, FutureFuel Chemical, file tax returns in
the U.S. federal jurisdiction and with various state
jurisdictions. FutureFuel was incorporated in 2005
and is subject to U.S., state, and local examinations by tax
authorities from 2007 forward. FutureFuel Chemical
is subject to the effects of tax examinations that may impact
the carry-over basis of its assets and liabilities.
|
Note 3 - Derivative instruments
|
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2011
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Text Block] |
3)
Derivative instruments
FutureFuel
is exposed to certain risks relating to its ongoing business
operations. The primary risk managed by using
derivative instruments is commodity price
risk. Regulated fixed price futures and option
contracts are utilized to manage the price risk associated
with future purchases of feedstock used in FutureFuel’s
biodiesel production along with physical feedstock and
finished product inventories attributed to this
process.
FutureFuel
recognizes all derivative instruments as either assets or
liabilities at fair value in its consolidated balance
sheet. FutureFuel’s derivative instruments
do not qualify for hedge accounting under the specific
guidelines of ASC 815-20-25, Derivatives and
Hedging, Hedging-General,
Recognition. While management believes each
of these instruments are entered into in order to effectively
manage various risks, none of the derivative instruments are
designated and accounted for as hedges primarily as a result
of the extensive record keeping requirements.
The
fair value of FutureFuel’s derivative instruments is
determined based on the closing prices of the derivative
instruments on relevant commodity exchanges at the end of an
accounting period. Changes in fair value of the
derivative instruments are recorded in the statement of
operations as a component of cost of goods sold, and amounted
to a gain of $1,957 and $1,876 for the three months ended
June 30, 2011 and 2010, respectively, and a loss of
$1,793 and a gain of $1,477 for the six months ended
June 30, 2011 and 2010, respectively.
The
volumes and carrying values of FutureFuel’s derivative
instruments were as follows at:
The
margin account maintained with a broker to collateralize
these derivative instruments carried an account balance of
$4,149 and $2,230 at June 30, 2011 and December 31,
2010, respectively. The carrying values of the
margin account and of the derivative instruments are
included, net, in other current assets.
|
Note 4 - Marketable securities
|
6 Months Ended |
---|---|
Jun. 30, 2011
|
|
Marketable Securities [Text Block] |
4)
Marketable securities
At
June 30, 2011 and December 31, 2010, FutureFuel had
investments in certain preferred stock, trust preferred
securities, and other equity instruments. These
investments have been classified as current assets in the
accompanying consolidated balance
sheet. FutureFuel has designated these securities
as being available-for-sale. Accordingly, they are
recorded at fair value, with the unrealized gains and losses,
net of taxes, reported as a component of stockholders’
equity. The amortized cost, unrealized gains,
unrealized losses, and fair value of these securities totaled
$51,198, $2,331, $(773), and $52,756, respectively, at
June 30, 2011. The amortized cost, unrealized
gains, unrealized losses, and fair value of these securities
totaled $27,348, $1,056, $(204), and $28,200, respectively,
as December 31, 2010.
At
December 31, 2010, FutureFuel had a short position in
certain marketable debt securities. No such
position existed at June 30, 2011. The purpose of
this position was to help mitigate the potential negative
impact an increase in interest rates would have had on other
marketable securities FutureFuel has
purchased. The securities comprising this position
were carried at fair value, with unrealized gains and losses
reported as a component of net income. The
amortized cost, unrealized gains, unrealized losses, and fair
value, including accrued interest, of these securities
totaled $(19,107), $0, $(188), and $(19,295), respectively,
at December 31, 2010. The margin account
maintained with a broker to collateralize these securities
carried a balance of $21,086 at December 31, 2010 and
was classified as restricted cash and cash equivalents in the
consolidated balance sheet.
|
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