BioFuel Energy Corp.: Second Quarter Results
DENVER, Aug. 13 / BIOFUEL ENERGY CORP., an ethanol production company, today announced its second quarter results. For the three months ended June 30, 2009, revenues totaled $106.5 million, which was comprised of $88.3 million from sales of ethanol and $18.2 million from sales of distillers grain. Net loss attributable to common shareholders was $6.5 million, or $.28 a share, for the three months ended June 30, 2009. The net loss for the three months ended June 30, 2009 was $9.0 million, which included $2.5 million of losses attributable to noncontrolling interests.
Operating loss for the second quarter was $5.1 million, which resulted from $107.3 million in cost of goods sold, including $79.5 million for corn, and $4.3 million in general and administrative expenses. The Company also had $3.9 million of interest expense in the second quarter, which resulted in the net loss of $9.0 million. Included in the net loss were $2.0 million of non-recurring expenses such as legal and financial advisory expenses and additional interest expense. These were related to the Company's negotiations with the lenders under its senior debt facility arising out of their declaration of Events of Default on May 22, 2009, as previously disclosed. The Company had $6.6 million of depreciation expense for the quarter. On a combined basis, the plants ran at 100% of their nameplate capacity during the quarter.
For the six months ended June 30, 2009, revenues totaled $204.0 million. Operating loss for the six months ended June 30, 2009 was $12.8 million, which resulted from $209.9 million in cost of goods sold and $6.9 million in general and administrative expenses. Net loss attributable to common shareholders was $14.2 million, or $.62 a share, for the six months ended June 30, 2009. The net loss for the six months ended June 30, 2009 was $20.2 million, which included $6.0 million of losses attributable to noncontrolling interests.
Scott H. Pearce, the Company's President and Chief Executive Officer, stated, "The second quarter's results, while disappointing financially, contained several positive elements. First, our plants again averaged 100% of capacity for the quarter, while we also reduced operating costs through our ongoing optimization initiatives. We also saw an improvement in crush spreads throughout the quarter, and a return to positive margins beginning in May, that has been part of an ongoing trend since that time. We accomplished this, despite the declaration of an event of default by our lenders and the resultant operational impacts that such action predictably causes. We remain in negotiations with our banks and while nothing can be assured, we are optimistic that we will be able to resolve this matter and get back to running the business without the ongoing drag on our financial results and operational performance."
In the second quarter, the Company borrowed $1.2 million under its construction loan facility and $1.0 million under its working capital facility. At June 30, 2009, amounts outstanding under the facilities included $194.9 in construction loans and $20.0 million borrowed in working capital loans. Under the original terms of the senior debt facility, there remained $15.1 million in construction loan availability at June 30, 2009. Although the Company had expected to use the proceeds from the construction loan availability to fund a debt service reserve of $10.8 million required under the senior debt facility and to pay for remaining project costs, given its continuing discussions with the lenders under the senior debt facility regarding asserted events of default, it is uncertain whether the Company will have access to this remaining availability. Also, as a result of the assertion of Events of Default by the lenders, the entire $214.9 million drawn under the senior debt facility, and the $19.8 million of subordinated debt, have been reclassified as current on the Company's most recent balance sheet. At June 30, 2009, the Company held $4.6 million of cash and equivalents and stockholders' equity totaled $76.1 million, including $5.9 million of noncontrolling interest.
BioFuel Energy currently has two 115 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.
Kelly G. Maguire
Vice President - Finance &
Chief Financial Officer
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