BioFuel Energy Corp. (BIOF, Financial) filed Quarterly Report for the period ended 2012-09-30.
Biofuel Energy Corporation has a market cap of $32.3 million; its shares were traded at around $5.45 with and P/S ratio of 0.1.
Net Sales: Net Sales were $378.4 million for the nine months ended September 30, 2012, compared to $489.1 million for the nine months ended September 30, 2011, a decrease of $110.7 million or 22.6%. This decrease was primarily attributable to a decrease in ethanol revenue of $122.4 million which was offset by an increase in co-product revenue of $11.7 million. The decrease in ethanol revenue was attributable to both a decrease in the per unit price we received for ethanol, reflecting decreases in market prices compared to the year ago period, and a decrease in the quantity of ethanol produced and sold. Lower ethanol production as compared to the prior year resulted primarily from reduced grind rates due to a tightened corn supply in the first nine months of 2012. The increase in co-product revenue was primarily attributable to the commencement of corn oil extraction at both of our plants in the first quarter of 2012, which resulted in $11.1 million of corn oil revenue for the first nine months of 2012. Distillers grains revenue was relatively unchanged as compared to the year ago period. Although distillers grains production was lower resulting from the reduced corn grind, the lower production and resulting sales was offset by higher per unit prices received for our distillers grains.
The Senior Debt Facility is secured by a first priority lien on all right, title and interest in and to the Wood River and Fairmont plants and any accounts receivable or property associated with those plants and a pledge of all of our equity interests in the Operating Subsidiaries. The Operating Subsidiaries have established collateral deposit accounts maintained by an agent of the banks, into which our revenues are deposited, subject to security interests to secure any outstanding obligations under the Senior Debt Facility. These funds are then allocated into various sweep accounts held by the collateral agent, including accounts that provide funds for the operating expenses of the Operating Subsidiaries. The collateral accounts have various provisions, including historical and prospective debt service coverage ratios and debt service reserve requirements, which determine whether there is, and the amount of, cash available to the LLC from the collateral accounts each month. The terms of the Senior Debt Facility also include covenants that impose certain limitations on, among other things, the ability of the Operating Subsidiaries to incur additional debt, grant liens or encumbrances, declare or pay dividends or distributions, conduct asset sales or other dispositions, merge or consolidate, and conduct transactions with affiliates. The terms of the Senior Debt Facility also include customary events of default including failure to meet payment obligations, failure to pay financial obligations, failure of the Operating Subsidiaries of the LLC to remain solvent and failure to obtain or maintain required governmental approvals. Under the terms of separate management services agreements between our Operating Subsidiaries and the LLC, the Operating Subsidiaries pay a monthly management fee of $869,000 to the LLC to cover salaries, rent, and other operating expenses of the LLC, which payments are unaffected by the terms of the Senior Debt Facility or the collateral accounts.
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Biofuel Energy Corporation has a market cap of $32.3 million; its shares were traded at around $5.45 with and P/S ratio of 0.1.
Highlight of Business Operations:
Net Sales: Net Sales were $116.1 million for the three months ended September 30, 2012, compared to $162.5 million for the three months ended September 30, 2011, a decrease of $46.4 million or 28.6%. This decrease was primarily attributable to a decrease in ethanol revenue of $51.4 million which was offset by an increase in co-product revenue of $5.0 million. The decrease in ethanol revenue was attributable to both a decrease in the per unit price we received for ethanol, reflecting decreases in market prices compared to the year ago period, and a decrease in the quantity of ethanol produced and sold. Lower ethanol production as compared to the prior year resulted primarily from reduced grind rates due to a continuing tight corn supply in the third quarter of 2012. The increase in co-product revenue was primarily attributable to the inclusion of corn oil revenue in the three months ended September 30, 2012. The Company commenced corn oil extraction at both plants in the first quarter of 2012, which resulted in $4.4 million of corn oil revenue in the third quarter of 2012. Distillers grains revenue was unchanged as compared to the year ago period. Although distillers grains production was lower resulting from the reduced corn grind, the lower production and resulting sales was offset by higher per unit prices received for our distillers grains.Net Sales: Net Sales were $378.4 million for the nine months ended September 30, 2012, compared to $489.1 million for the nine months ended September 30, 2011, a decrease of $110.7 million or 22.6%. This decrease was primarily attributable to a decrease in ethanol revenue of $122.4 million which was offset by an increase in co-product revenue of $11.7 million. The decrease in ethanol revenue was attributable to both a decrease in the per unit price we received for ethanol, reflecting decreases in market prices compared to the year ago period, and a decrease in the quantity of ethanol produced and sold. Lower ethanol production as compared to the prior year resulted primarily from reduced grind rates due to a tightened corn supply in the first nine months of 2012. The increase in co-product revenue was primarily attributable to the commencement of corn oil extraction at both of our plants in the first quarter of 2012, which resulted in $11.1 million of corn oil revenue for the first nine months of 2012. Distillers grains revenue was relatively unchanged as compared to the year ago period. Although distillers grains production was lower resulting from the reduced corn grind, the lower production and resulting sales was offset by higher per unit prices received for our distillers grains.
The Senior Debt Facility is secured by a first priority lien on all right, title and interest in and to the Wood River and Fairmont plants and any accounts receivable or property associated with those plants and a pledge of all of our equity interests in the Operating Subsidiaries. The Operating Subsidiaries have established collateral deposit accounts maintained by an agent of the banks, into which our revenues are deposited, subject to security interests to secure any outstanding obligations under the Senior Debt Facility. These funds are then allocated into various sweep accounts held by the collateral agent, including accounts that provide funds for the operating expenses of the Operating Subsidiaries. The collateral accounts have various provisions, including historical and prospective debt service coverage ratios and debt service reserve requirements, which determine whether there is, and the amount of, cash available to the LLC from the collateral accounts each month. The terms of the Senior Debt Facility also include covenants that impose certain limitations on, among other things, the ability of the Operating Subsidiaries to incur additional debt, grant liens or encumbrances, declare or pay dividends or distributions, conduct asset sales or other dispositions, merge or consolidate, and conduct transactions with affiliates. The terms of the Senior Debt Facility also include customary events of default including failure to meet payment obligations, failure to pay financial obligations, failure of the Operating Subsidiaries of the LLC to remain solvent and failure to obtain or maintain required governmental approvals. Under the terms of separate management services agreements between our Operating Subsidiaries and the LLC, the Operating Subsidiaries pay a monthly management fee of $869,000 to the LLC to cover salaries, rent, and other operating expenses of the LLC, which payments are unaffected by the terms of the Senior Debt Facility or the collateral accounts.
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