 FutureFuel Second Quarter Net Income of 15.2 MillionReports Net Income of 15.2 Million or 0.35 per Diluted Share, and Adjusted EBITDA of 2.7 MillionCLAYTON, Mo., Aug. 07, 2020 GLOBE NEWSWIRE -- FutureFuel Corp. NYSE:FF FutureFuel, a manufacturer of custom and performance chemicals and biofuels, today announced financial results for the second quarter and the six months ended June 30, 2020.Second quarter 2020 Financial Highlights all comparisons are with the second quarter of 2019 Revenues were 47.4 million, down 33.1 from 70.9 million Adjusted EBITDA was 2.7 million, down 24.5 from 3.5 million Net income increased to 15.2 million, or 0.35 per diluted share, from 3.7 million, or 0.08 per diluted share. Six month 2020 Financial Highlights all comparisons are with the first half of 2019 Revenues were 100.5 million, down 15.8 from 119.4 million Adjusted EBITDA was 12.8 million, up 43.7 from 8.9 million Net income increased to 34.2 million, or 0.78 per diluted share, from 9.2 million, or 0.21 per diluted share. Our manufacturing operation has continued to perform well against the backdrop of the global COVID-19 pandemic in both our Chemical and Biofuels segments. The certainty of the Blenders Tax Credit has allowed us to operate our Biodiesel operation at full capacity, albeit in a lower margin environment given low energy prices. Results from the Chemicals segment of our business are also reflective of the challenges facing domestic markets, specifically in the agrochemical and energy sectors related to foreign competition and overall lower demand, said Tom McKinlay, Chief Operating Officer for FutureFuel Corp.2020 Cash DividendsFutureFuel paid a regular quarterly cash dividend in the amount of 0.06 per share on our common stock in the second quarter of 2020. In addition to the normal quarterly cash dividend of 0.06 per share paid in the first quarter of 2020, we also declared a special cash dividend of 3.00 per share paid in April. The remaining quarterly dividends of 0.06 per share are expected to be paid in September and December.Financial Overview and Key Operating MetricsFinancial and operating metrics, which include non-GAAP financial measures, include dollars in thousands, except per share amounts: FutureFuel Corp. Certain Financial and Operating Metrics Unaudited Three Months Ended June 30, Dollar 2020 2019 Change Change Revenue 47,422 70,864 23,442 33.1 Loss income from operations 1,139 1,185 2,324 196.2 Net income 15,159 3,687 11,472 311.1 Earnings per common share: Basic 0.35 0.08 0.27 337.5 Diluted 0.35 0.08 0.27 337.5 Capital expenditures net of customer reimbursements 563 451 112 24.8 Adjusted EBITDA 2,652 3,514 862 24.5 Six Months Ended June 30, Dollar 2020 2019 Change Change Revenue 100,504 119,365 18,861 15.8 Income from operations 12,840 2,396 10,444 435.9 Net income 34,202 9,186 25,016 272.3 Earnings per common share: Basic 0.78 0.21 0.57 271.4 Diluted 0.78 0.21 0.57 271.4 Capital expenditures net of customer reimbursements 1,133 874 259 29.6 Adjusted EBITDA 12,829 8,929 3,900 43.7 Financial and Business SummaryConsolidated revenue in the three and six months ended June 30, 2020, decreased 23,442 and 18,861, compared to the three and six months ended June 30, 2019, respectively. The decrease in the three months ended June 30, 2020 primarily resulted from lower selling prices in the biofuel segment of 19,473 which was negatively impacted by supply demand imbalance and lower sales volume in the chemical segment of 6,032 from an agrochemical product we no longer make. The decrease in the six months ended June 30, 2020 primarily resulted from lower prices in the biofuel segment of 27,116 and lower sales volume in the chemical segment of 5,153. Partially offsetting this decrease in the six-month comparison period was higher sales volumes in the biofuels segment of 10,935 given the favorable market conditions with the reinstatement of the blenders tax credit BTC.Gross profit in the three months ended June 30, 2020 decreased 2,359 compared to the three months ended June 30, 2019. This decrease was driven by lower prices in the biofuels segment and lower volumes in both the chemicals and biofuels segments resulting from reduced demand from the weakened global fuel market and the impact of the COVID-19 pandemic as well as an agrochemical product we no longer make. Gross profit was also reduced by the change in the unrealized and realized activity in derivative instruments with a loss of 935 in the three months ended June 30, 2020 and a gain of 443 in the three months ended June 30, 2019.Gross profit in the six months ended June 30, 2020 increased 10,778 compared to the six months ended June 30, 2019. This increase primarily resulted from: i the BTC being in effect for the current period versus not being in effect in the prior six-month period; and ii the change in the unrealized and realized activity in derivative instruments with a gain of 5,922 in the six months ended June 30, 2020 and a loss of 1,033 in the six months ended June 30, 2019. Also benefiting gross profit in both the three and six months ended June 30, 2020 and 2019 was the adjustment in the carrying value of our inventory as determined utilizing the LIFO method of inventory accounting. In the three months ended June 30, 2020 and 2019, this adjustment increased gross profit 1,575 and 287, respectively. In the six months ended June 30, 2020 and 2019, this adjustment increased gross profit 2,893 and 1,924, respectively. Net IncomeNet income for the three and six months ended June 30, 2020 increased 11,472 and 25,016, respectively, as compared to the same periods in 2019. This increase resulted primarily from biodiesel tax credits and incentives that were in effect in the three and six months ended June 30, 2020 that were not in effect for 2019 see Note 2 to our consolidated financial statements and tax benefits in effect in the first half of 2020 not in effect for the same period in 2019. In the three and six months ended June 30, 2020, income was also benefited by other income from the resolution of a prior year contractual matter. Partially offsetting this increase in the six-month period was the unrealized loss on equity securities.Capital ExpendituresCapital expenditures were 2,759 in the first half of 2020, compared with 4,659 in the same period in 2019. FutureFuel was reimbursed for a portion of these expenditures by certain customers as summarized in the following table. Six Months Ended June 30, 2020 2019 Cash paid for capital expenditures 2,759 4,659 Cash received from customers as reimbursement of capital expenditures 1,626 3,785 Cash paid for capital expenditures, net of reimbursements 1,133 874 Cash and Cash Equivalents and Marketable SecuritiesCash and cash equivalents and marketable securities totaled 249,918 as of June 30, 2020, compared with 316,951 as of December 31, 2019.About FutureFuelFutureFuel is a leading manufacturer of diversified chemical products, specialty chemical products, and biofuel products. In its chemicals business, FutureFuel manufactures specialty chemicals for specific customers custom chemicals as well as multi-customer specialty chemicals performance chemicals. FutureFuels custom chemicals product portfolio includes proprietary herbicide and intermediates for major life sciences companies, and chlorinated polyolefin adhesion promoters and antioxidant precursors for a major chemical company. FutureFuels performance chemicals product portfolio includes polymer nylon modifiers and several small-volume specialty chemicals for diverse applications. FutureFuels biofuels segment primarily produces and sells biodiesel to its customers. Please visit for more information. Forward-Looking StatementsThis document contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements deal with FutureFuels current plans, intentions, beliefs, and expectations, and statements of future economic performance. Statements containing such terms as believe, do not believe, plan, expect, intend, estimate, anticipate, and other phrases of similar meaning are considered to contain uncertainty and are forward-looking statements. In addition, from time to time FutureFuel or its representatives have made or will make forward-looking statements orally or in writing. Furthermore, such forward-looking statements may be included in various filings that the company makes with United States Securities and Exchange Commission the SEC, in press releases, or in oral statements made by or with the approval of one of FutureFuels authorized executive officers.These forward-looking statements are subject to certain known and unknown risks and uncertainties, including, but not limited to the COVID-19 pandemic and the response thereto, as well as assumptions that could cause actual results to differ materially from those reflected in these forward-looking statements. Factors that might cause actual results to differ include, but are not limited to, those set forth under the headings Risk Factors and Managements Discussion and Analysis of Financial Condition and Results of Operations in FutureFuels Form 10-K Annual Report for the year ended December 31, 2019 and in its future filings made with the SEC. 