REG Q3 numbers mirror challenging power, asset market problems

Renewable resource Team Inc. revealed its economic outcomes Nov. 3 for the third quarter finished Sept. 30.

Revenues for the quarter were $ 395 million on 120 million gallons of gas sold. As compared to the 3rd quarter of 2014, REG marketed 35.1 percent more gallons of fuel, while profits enhanced by 2.8 percent as a result of a 27.4 percent reduction in the typical cost each gallon marketed. Adjusted EBITDA for the quarter was adverse $ 10 million as compared to positive $ 11 million in the prior year duration, without any sort of modifications for the 2014 Biodiesel Blend Tariff Tax obligation Credit rating (BTC). Adjusted EBITDA for the third quarter of 2014, after offering impact to the retroactive reinstatement of the BTC (as talked about listed below), was $ 35 million. If the BTC is retroactively restored for 2015, we approximate that the internet advantage for 3rd quarter of 2015 would be in between $ 35 as well as $ 40 million.

“Our 3rd quarter results mirror the challenging market problems in the power and also asset sectors,” said REG head of state and CEO Daniel J. Oh. “Even more, RIN rates were depressed due to high industry production levels, which reflect general expectancy of the retroactive reinstatement of the BTC for 2015. We have actually placed the company to take advantage of the potential reinstatement of the BTC for 2015 and a possible change to a manufacturer’s tax credit history in 2016.”

Oh proceeded, “We delight in the California reduced carbon fuel specification has actually been readopted and believe we are well placed to offer that market from our Grays Harbor, Washington, and certain Midwest plants.”

Third quarter 2015 highlights

For the quarter, REG offered an overall of 120 million gallons of gas, a boost of 35.1 percent compared to the third quarter of 2014. REG generated 84.9 million gallons of biomass-based diesel throughout the quarter, a 33 percent rise when as compared to the third quarter of 2014.

Incomes of $ 394.9 million raised 2.8 percent when compared to the 3rd quarter of 2014. The increase is attributable to the 35.1 percent rise in gallons offered offset by the reduced average sales cost due to both lower heating oil and RIN costs. The ordinary rate each gallon of biomass-based diesel sold during the third quarter was $ 2.57, or 27.4 percent below in the same quarter of 2014.

Gross earnings was $ 4.4 million, or 1.1 percent of earnings, compared to gross earnings of $ 22.7 million, or 5.9 percent of incomes, for the third quarter of 2014. The reduction in gross revenue was mainly due to pressed margins, as average sale prices declined much more considerably compared to feedstock costs. Sector volume in the third quarter was raised as individuals made manufacturing choices that consisted of the assumption of a retroactive BTC reinstatement for 2015.

Internet loss attributable to usual investors was $ 0.36 each share on a totally diluted basis, or $ 15.7 million. This compares to a web earnings of $ 0.11 per share on a completely thinned down basis, or $ 4.5 million, in the 3rd quarter of 2014.

REG bought 837,065 shares during the 3rd quarter at an average rate of $ 9.31 each share. With Sept. 30, the company has actually paid $ 19.3 million under its $ 30 million accredited share bought program, to buy 2,030,722 shares at a typical rate of $ 9.51 each share. Through Oct. 31, the company has actually repurchased 2,479,113 shares at an ordinary price of $ 9.40 per share.

At Sept. 30, REG had fluid possessions, which consists of money, cash matchings and also valuable safety and securities, of $ 73.8 million, a decline of $ 27.4 million from the previous quarter end. This decline was mainly the outcome of the negative margin setting the company experienced in the third quarter of 2015, paired with money invested on shares redeemed and funding expenditures.

At Sept. 30, balance due were $ 52 million, or 12 days of sales. Accounts receivable at June 30 were $ 59.9 million. Inventory was $ 78.9 million at Sept. 30, or 18 days of sales, a reduction of $ 16.3 million from the prior quarter end.

Accounts payable was $ 78.7 million and also $ 62.2 million at Sept. 30 and June 30, specifically.

The table listed below sums up REG’s results for the third quarter of 2015.

REG Q3 2015 and 2014 Earnings and Readjusted EBITDA Recap
(bucks as well as gallons in thousands)
								Q3 2015					Q3 2014
		Y/Y Adjustment			Gallons offered						119,966
			88,821					35.1			%
Ordinary market price $			2.57						$			3.54
		(	27.4						Complete earnings
$			394,856						$			384,258

2.8 % Adjusted EBITDA before 2014 BTC allowance ($ 10,360 ) $ 10,893 N/M Adjusted EBITDA ($ 10,360 ) $ 34,780 N/M To find out more as well as monetary tables, click here.