FutureFuel Corp.
FutureFuel Corp. (Form: 8-K, Received: 03/16/2017 16:04:20)

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934

 

Date of report (Date of earliest event reported): March 16, 2017

 

FUTUREFUEL CORP.
(Exact Name of Registrant as Specified in Its Charter)

 

Delaware
(State or Other Jurisdiction of Incorporation)

 

0-52577  

20-3340900  

(Commission File Number)

(IRS Employer Identification No.)

 

8235 Forsyth Blvd., Suite 400
St. Louis, Missouri 63105

(Address of Principal Executive Offices)

 

(314) 854-8385
(Registrant’s Telephone Number)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

 

Written communications pursuant to Rule  425 under the Securities Act

   

 

Soliciting material pursuant to Rule 14a-12 under the Exchange Act

   

 

Pre-commencement communications pursuant to Rule  14d-2(b) under the Exchange Act

   

 

Pre-commencement communications pursuant to Rule  13e-4(c) under the Exchange Act

   
 

 

 

 

Item 8.01 – Other Events

 

On March 16, 2017, FutureFuel Corp. (NYSE: FF) (the “Company”) issued a press release announcing the Company’s financial and operating results for 2016. A copy of the press release is furnished as Exhibit 99.1 to this report.

 

Item 9.01 – Financial Statements and Exhibits

 

A copy of the press release is included as Exhibit  99.1.

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

FUTUREFUEL CORP.

 
       
       
 

By:

/s/  Paul A. Novelly

 
   

Paul A. Novelly, Chairman and Chief Executive Officer

 

 

Date: March 16, 2017

 

 

 

    Exhibit 99.1

 

 

March 1 6 , 2017

 

COMPANY CONTACT  

 

FutureFuel Corp.

 

Tom McKinlay

 

(314) 854 -8352

www.futurefuelcorporation.com

 

 

FutureFuel Release s 201 6 Results

 

Reports Net Income of $ 56.3 Million or $1. 29 per Diluted Share, and Adjusted EBITDA of $ 55.3 Million

 

CLAYTON, Mo. ( March 1 6 , 201 7 ) FutureFuel Corp . (NYSE: FF) (“FutureFuel”), a manufacturer of custom and performance chemicals and biofuels, today announced financial results for the year ended December 31, 2016.

 

Fourth Quarter 2016 Financial Highlights (all comparisons are with the fourth quarter of 2015)

 

Revenues were $ 69.4 million, up 104.8% from $33.9 million

Adjusted EBITDA was $ 18.9 million, down 25.3% from $25.4 million

Net income decreased to $18.7 million, or $0.43 per diluted share, from $29.6 million, or $0.68 per diluted share.

 

201 6 Financial Highlights (all comparisons are with the year ended December 31, 2015)

 

Revenues were $253.2 million, down 15.5% from $299.6 million

Adjusted EBITDA was $ 55.3 million, up 10.3% from $50.1 million

Net income increased to $56.3 million, or $1.29 per diluted share, from $46.4 million, or $1.06 per diluted share.

 

 

Net income in 2016 of $56.3 million demonstrated the resilience of our company against the backdrop of a contracted Agro and Energy chemical market. In biodiesel, while the retail fuels market was less favorable to our operation, we responded to a clearly defined regulatory environment and set a new production record at our Batesville plant. In 2017, we return to a less certain biofuels regulatory landscape which we have successfully worked through in the past. We also anticipate some improvement in our chemicals business. " said Tom McKinlay, Chief Operating Officer for FutureFuel Corp.

 

 

 

2016 Regular Cash Dividends

 

FutureFuel declared normal quarterly dividends of $0.06 per share for 2017 and a special cash dividend of $2.29 paid in January 2017.

 

 

 

 

 

 

Financial Overview and Key Operating Metrics

 

Financial 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 December 31:

 
                   

Dollar

   

%

 
   

2016

   

2015

   

Change

   

Change

 

Revenues

  $ 69,373     $ 33,872     $ 35,501      104.8 %  

Income from operations

  $ 14,777     $ 27,084     $ (12,307 )    (45.4 % )

Net income

  $ 18,680     $ 29,647     $ (10,967 )    (37.0 % )

Earnings per common share:

                               

Basic

  $ 0.43     $ 0.68     $ (0.25 )    (36.8 % )

Diluted

  $ 0.43     $ 0.68     $ (0.25 )    (36.8 % )

Capital expenditures and intangibles (net of customer reimbursements and regulatory grants)

  $ 2,088     $ 831     $ 1,257      151.3 %  

Adjusted EBITDA

  $ 18,933     $ 25,352     $ (6,419 )    (25.3 % )
                                 
                                 
   

Twelve months ended December 31:

 
                   

Dollar

   

%

 
   

2016

   

2015

   

Change

   

Change

 

Revenues

  $ 253,193     $ 299,611     $ (46,418 )    (15.5 % )

Income from operations

  $ 36,523     $ 46,971     $ (10,448 )    (22.2 % )

Net income

  $ 56,341     $ 46,421     $ 9,920      21.4 %  

Earnings per common share:

                               

Basic

  $ 1.29     $ 1.06     $ 0.23      21.8 %  

Diluted

  $ 1.29     $ 1.06     $ 0.23      21.8 %  

Capital expenditures and intangibles (net of customer reimbursements and regulatory grants)

  $ 4,223     $ 6,798     $ (2,575 )    (37.9 % )

Adjusted EBITDA

  $ 55,261     $ 50,097     $ 5,164      10.3 %  

 

 

201 6 Financial and Business Summary

 

Revenues for the year ended December 31, 2016 were $253.2 million as compared to revenues for the year ended December 31, 2015 of $299.6 million, a decrease of 15.5%. 

 

Chemical sales revenue decreased 19.8% or $24,941 in 2016 compared with 2015. Sales revenue for our custom chemicals product line (chemicals produced for specific customers) totaled $82,667, a decline of $25,493 from 2015. The decline in the laundry detergent additive with the decline in custom manufacturing products from contraction in the Agro chemical and energy markets were the most significant reductions in the custom chemical product line. In addition, sales of custom chemicals declined as result of customers insourcing some external production during contraction in the Agro chemical and energy markets. Performance chemicals (comprised of multi-customer products which are sold based on specification) revenue was $18,240 in 2016, an increase of $552 from 2015. This increase was from sales of polymer modifier products and glycerin.

 

Biofuels sales revenue decreased 12.4% or $21,477 in 2016 compared to 2015 primarily from reduced gross sales in common carrier pipelines. Common carrier pipeline sales totaled $ 9,018 compared to $66,544 in 2015. Increased sales volumes of biodiesel and diesel in a favorable market (with both the blenders tax credit and the renewable fuel volume obligation in place) helped offset the decline in common carrier pipeline revenue. The market faced greater headwinds in 2015 without either benefit in place for the majority of the year. The renewable volume obligation was set in late 2015 and the BTC was reinstated in December 2015 and made retroactive to January 1, 2015. At the end of 2015, as a result of contractual provisions with certain customers, a share of the BTC was owed upon reinstatement of the BTC to customers. No such adjustment was made in 2016 as the BTC was in full effect for the year and expired on December 31, 2016.

 

 

FutureFuel reported net income of $ 56.3 million, or $1.29 per diluted share, for 2016, compared with net income of $46.4 million, or $1.06 per diluted share in 2015. Adjusted EBITDA for 2016 totaled $55.3 million, up from $50.1 million in 2015.

 

Capital Expenditures

 

Capital expenditures and intangibles were $4.5 million in 2016, compared with $8.6 million in 2015. FutureFuel was reimbursed for a portion of these expenditures by certain customers as summarized in the following table.

 

(Dollars in thousands)  

 

   

2016

   

2015

 

Cash paid for capital expenditures and intangibles

  $ 4,495     $ 8,630  

Cash received as reimbursement of capital expenditures

  $ (272 )   $ (1,832 )

Cash paid, net of reimbursement, for capital expenditures

  $ 4,223     $ 6,798  

 

 

Cash and Cash Equivalents and Marketable Securities

 

Cash and cash equivalents and marketable securities totaled $305 million as of December 31, 2016, compared with $229 million as of December 31, 2015.

 

About FutureFuel

 

FutureFuel is a leading manufacturer of diversified chemical products and biofuels. FutureFuel's chemicals segment manufactures specialty chemicals for specific customers ("custom manufacturing") as well as multi-customer specialty chemicals ("performance chemicals"). FutureFuel's custom manufacturing product portfolio includes a laundry detergent additive, proprietary agrochemicals, adhesion promoters, a biocide intermediate, and an antioxidant precursor.  FutureFuel's performance chemicals products include a portfolio of proprietary nylon and polyester polymer modifiers and several small-volume specialty chemicals and solvents for diverse applications. FutureFuel's biofuels segment primarily produces and sells biodiesel to its customers. Please visit  www.futurefuelcorporation.com  for more information.

 

Forward-Looking Statements

 

This document contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements deal with FutureFuel ’s 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 FutureFuel’s authorized executive officers.

 

These forward-looking statements are subject to certain known and unknown risks and uncertainties, 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 “Management ’s Discussion and Analysis of Financial Condition and Results of Operations” in FutureFuel’s Form 10-K Annual Report for the year ended December 31, 2016 and in its future filings made with the SEC. An investor should not place undue reliance on any forward-looking statements contained in this document, which reflect FutureFuel management’s opinions only as of their respective dates. Except as required by law, the company undertakes no obligation to revise or publicly release the results of any revisions to forward-looking statements. The risks and uncertainties described in this document and in current and future filings with the SEC are not the only ones faced by FutureFuel. New factors emerge from time to time, and it is not possible for the company to predict which will arise. There may be additional risks not presently known to the company or that the company currently believes are immaterial to its business. In addition, FutureFuel cannot assess the impact of each factor on its business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. If any such risks occur, FutureFuel’s business, operating results, liquidity, and financial condition could be materially affected in an adverse manner. An investor should consult any additional disclosures FutureFuel has made or will make in its reports to the SEC on Forms 10-K, 10-Q, and 8-K, and any amendments thereto. All subsequent written and oral forward-looking statements attributable to FutureFuel or persons acting on its behalf are expressly qualified in their entirety by the cautionary statements contained in this document.

 

Non-GAAP Financial Measures

 

In this press release, FutureFuel used adjusted EBITDA as a key operating metric to measure both performance and liquidity. Adjusted EBITDA is a non-GAAP financial measure. Adjusted EBITDA is not a substitute for operating income, net income, or cash flow from operating activities (each as determined in accordance with GAAP), as a measure of performance or liquidity. Adjusted EBITDA has limitations as an analytical tool, and should not be considered in isolation or as a substitute for analysis of results as reported under GAAP. FutureFuel defines adjusted EBITDA as net income before interest, income taxes, depreciation, and amortization expenses, excluding, when applicable, non-cash share-based compensation expense, public offering expenses, acquisition-related transaction costs, purchase accounting adjustments, loss on disposal of property and equipment, gains or losses on derivative instruments, other non-operating income or expense. Information relating to adjusted EBITDA is provided so that investors have the same data that management employs in assessing the overall operation and liquidity of FutureFuel ’s business. FutureFuel’s calculation of adjusted EBITDA may be different from similarly titled measures used by other companies; therefore, the results of its calculation are not necessarily comparable to the results of other companies.

 

Adjusted EBITDA allows FutureFuel ’s chief operating decision makers to assess the performance and liquidity of FutureFuel’s business on a consolidated basis to assess the ability of its operating segments to produce operating cash flow to fund working capital needs, to fund capital expenditures, and to pay dividends. In particular, FutureFuel management believes that adjusted EBITDA permits a comparative assessment of FutureFuel’s operating performance and liquidity, relative to a performance and liquidity based on GAAP results, while isolating the effects of depreciation and amortization, which may vary among its operating segments without any correlation to their underlying operating performance, and of non-cash stock-based compensation expense, which is a non-cash expense that varies widely among similar companies, and gains and losses on derivative instruments, whose immediate recognition can cause net income to be volatile from quarter to quarter due to the timing of the valuation change in the derivative instruments relative to the sale of biofuel.

 

A table included in this earnings release reconciles adjusted EBITDA with net income, the most directly comparable GAAP performance financial measure, and a table reconciles adjusted EBITDA with cash flows from operations, the most directly comparable GAAP liquidity financial measure.

 

FutureFuel Corp.

Condensed Consolidated Balance Sheets

(Dollars in thousands)

(Audited)

 

 

   

December 31, 2016

   

December 31, 2015

 

Assets

               

Cash and cash equivalents

  $ 199,272     $ 154,049  

Accounts receivable, inclusive of the blenders' tax credit of $5,495 and $30,895 and net of allowances for bad debt of $0 and $0, at December 31, 2016 and December 31, 2015, respectively

    24,744       46,329  

Inventory

    52,093       64,957  

Marketable securities

    106,146       74,667  

Other current assets

    23,027       19,822  

Total current assets

    405,282       359,824  

Property, plant and equipment, net

    118,152       124,330  

Other assets

    5,609       4,955  

Total noncurrent assets

    123,761       129,285  

Total Assets

  $ 529,043     $ 489,109  

Liabilities and Stockholders ’ Equity

               

Accounts payable

  $ 24,053     $ 34,686  

Dividends payable

    110,688          

Other current liabilities

    9,308       13,867  

Total current liabilities

    144,049       48,553  

Deferred revenue – long-term

    16,792       15,908  

Other noncurrent liabilities

    35,389       30,336  

Total noncurrent liabilities

    52,181       46,244  

Total liabilities

    196,230       94,797  

Commitments and contingencies:

               

Preferred stock, $0.0001 par value, 5,000,000 shares authorized, none issued and outstanding

    -       -  

Common stock, $0.0001 par value, 75,000,000 shares authorized, 43,749,970 and 43,715,832, issued and outstanding as of December 31, 2016 and 2015, respectively

    4       4  

Accumulated other comprehensive income

    3,540       2,055  

Additional paid in capital

    281,087       279,231  

Retained earnings

    48,182       113,022  

Total Stockholders ’ Equity

    332,813       394,312  

Total Liabilities and Stockholders ’ Equity

  $ 529,043     $ 489,109  

 

 

 

FutureFuel Corp.

Condensed Consolidated Statements of Operations and Comprehensive Income

(Dollars in thousands, except per share amounts)

(Unaudited)  

 

 

   

Three months ended December 31:

 
   

2016

   

2015

 

Revenue

  $ 69,373     $ 33,872  

Cost of goods sold and distribution

    51,859       4,359  

Gross profit

    17,514       29,513  

Selling, general, and administrative expenses

    2,135       1,811  

Research and development expenses

    602       618  
      2,737       2,429  

Income from operations

    14,777       27,084  

Other income, net

    1,025       (51 )

Income before income taxes

    15,802       27,033  

Benefit for income taxes

    (2,878 )     (2,614 )

Net income

  $ 18,680     $ 29,647  
                 

Earnings per common share

               

Basic

  $ 0.43     $ 0.68  

Diluted

  $ 0.43     $ 0.68  

Weighted average shares outstanding

               

Basic

    43,595,456       43,473,416  

Diluted

    43,600,386       43,509,199  
                 

Comprehensive Income

               

Net income

  $ 18,680     $ 29,647  

Other comprehensive income from unrealized

               

net gains on available-for-sale securities

    929       1,517  

Income tax effect

    (326 )     (556 )

Total unrealized gains, net of tax

    603       961  

Comprehensive income

  $ 19,283     $ 30,608  

 

 

FutureFuel Corp.

Condensed Consolidated Statements of Operations and Comprehensive Income

(Dollars in thousands, except per share amounts)

( Audited)

 

 

   

Twelve months ended December 31:

 
   

2016

   

2015

 

Revenue

  $ 253,193     $ 299,611  

Cost of goods sold and distribution

    206,335       242,565  

Gross profit

    46,858       57,046  

Selling, general, and administrative expenses

    7,620       7,334  

Research and development expenses

    2,715       2,741  
      10,335       10,075  

Income from operations

    36,523       46,971  

Other income, net

    4,283       4,898  

Income before income taxes

    40,806       51,869  

(Benefit)/provision for income taxes

    (15,535 )     5,448  

Net income

  $ 56,341     $ 46,421  
                 

Earnings per common share

               

Basic

  $ 1.29     $ 1.06  

Diluted

  $ 1.29     $ 1.06  

Weighted average shares outstanding

               

Basic

    43,542,785       43,432,149  

Diluted

    43,547,538       43,445,730  
                 

Comprehensive Income

               

Net income

  $ 56,341     $ 46,421  

Other comprehensive income/(loss) from unrealized

               

net gains/(losses) on available-for-sale securities

    2,643       (3,518 )

Income tax effect

    (1,158 )     1,314  

Total unrealized gains/(losses), net of tax

    1,485       (2,204 )

Comprehensive income

  $ 57,826     $ 44,217  

 

 

 

F utureFuel Corp.

Consolidated Statements of Cash Flows

For the   Years Ended December 31 , 201 6 and 201 5

(Dollars in thousands)

(Audited)

 

   

2016

   

2015

 

Cash flows provided by operating activities

               

Net income

  $ 56,341     $ 46,421  

Adjustments to reconcile net income to net cash provided by operating activities:

               

Depreciation

    10,819       10,187  

Amortization of deferred financing costs

    144       -  

B enefit for deferred income taxes

    (5,271 )     (3,721 )

Change in fair value of derivative instruments

    3,621       (3,295 )

Other than temporary impairment of marketable securities

    2,184       606  

Impairment of fixed assets

    178       -  

Gain on the sale of investments

    (843 )     (713 )

Stock based compensation

    1,908       2,043  

Losses on disposals of fixed assets

    147       178  

Noncash interest expense

    27       26  

Changes in operating assets and liabilities:

               

Accounts receivable

    21,960       3,816  

Accounts receivable – related parties

    (375 )     1,163  

Inventory

    12,864       (19,604 )

Income tax receivable

    (6,394 )     5,602  

Prepaid expenses

    (52 )     28  

Prepaid expenses – related party

    23       (35 )

Accrued interest on marketable securities

    (110 )     30  

Other assets

    (556 )     (668 )

Accounts payable

    (11,643 )     4,056  

Accounts payable – related parties

    1,010       (2,668 )

Accrued expenses and other current liabilities

    (645 )     (1,673 )

Accrued expenses and other current liabilities – related parties

    142       (46 )

Deferred revenue

    3,734       721  

Other noncurrent liabilities

    1,762       (2,831 )

Net cash provided by operating activities

    90,975       39,623  

Cash flows from investing activities

               

Collateralization of derivative instruments

    (535 )     1,239  

Purchase of marketable securities

    (60,664 )     (39,136 )

Proceeds from the sale of marketable securities

    30,487       48,546  

Proceeds from the sale of fixed assets

    -       6  

Expenditures for intangible assets

    -       (1,408 )

Capital expenditures

    (4,495 )     (7,222 )

Net cash (used in)/ provided by investing activities

    (35,207 )     2,025  

Cash flows from financing activities

               

Minimum tax withholding on stock options exercised and awards vested

    (128 )     (120 )

Excess tax benefits associated with stock options and awards

    (137 )     (344 )

Deferred financing costs

    -       (721 )

Proceeds from issuance of stock

    213       -  

Payment of dividends

    (10,493 )     (10,493 )

Net cash used in financing activities

    (10,545 )     (11,678 )

Net change in cash and cash equivalents

    45,223       29,970  

Cash and cash equivalents at beginning of period

    154,049       124,079  

Cash and cash equivalents at end of period

  $ 199,272     $ 154,049  
                 

Cash paid for interest

  -     -  

Cash paid for income taxes

  $ 987     $ 13,381  

Noncash items incurred:

               

Noncash dividends declared

  $ 110,688     $ -  

Noncash items incurred for capital expenditures

  $ 417     $ -  

 

 

 

 

FutureFuel Corp.

Reconciliation of Non-GAAP Financial Measure to Financial Measure

(Dollars in thousands)

( Audited )

 

Reconciliation of Adjusted EBITDA to Net Income

 

 

 

   

  Three months ended December 31:

   

Twelve months ended December 31:

 
   

2016

   

2015

   

2016

   

2015

 

Adjusted EBITDA

  $ 21,805     $ 25,352     $ 55,261     $ 50,097  

Depreciation and amortization

    (2,889 )     (2,639 )     (10,963 )     (10,187 )

Non-cash stock-based compensation

    (477 )     (612 )     (1,908 )     (2,043 )

Interest and dividend income

    1,706       1,098       6,152       5,106  

Interest expense

    (7 )     (43 )     (27 )     (134 )

Losses on disposal of property and equipment

    -       (10 )     (147 )     (178 )

(L osses)/gains on derivative instruments

    (845 )     4,982       (6,220 )     9,101  

(Losses)/g ains on marketable securities

    (613 )     (1,095 )     (1,340 )     107  

Income tax benefit/(expense)

    2       2,614       15,535       (5,448 )

Other

    (2 )             (2 )        

Net income

  $ 18,680     $ 29,647     $ 56,341     $ 46,421  

 

 

Reconciliation of Adjusted EBITDA to Net Cash Provided by Operating Activities

 

 

 

   

Twelve months ended December 31:

 
   

2016

   

2015

 

Adjusted EBITDA

  $ 55,261     $ 50,097  

Amortization of deferred financing costs

    -       (108 )

Benefit for deferred income taxes

    (5,271 )     (3,721 )

Impairment of fixed assets

    178       -  

Interest and dividend income

    6,152       5,106  

Income tax benefit/(expense)

    15,535       (5,448 )

(Losses)/g ains on derivative instruments

    (6,220 )     9,101  

Change in fair value of derivative instruments

    3,621       (3,295 )

Changes in operating assets and liabilities, net

    21,720       (12,109 )

Other

    (1 )     -  

Net cash provided by operating activities

  $ 90,975     $ 39,623  

 

 

 

 

 

 

 

 

FutureFuel Corp.

Condensed Consolidated Segment Income

(Dollars in thousands)

( Audited)

 

   

Three months ended

December 31:

   

Twelve months ended

December 31:

 
   

2016

   

2015

   

2016

   

2015

 

Revenue

                               

Custom chemicals

  $ 22,519     $ 23,539     $ 82,667     $ 108,160  

Performance chemicals

    4,458       3,808       18,240       17,688  

Chemicals revenue

  $ 26,977     $ 27,347     $ 100,907     $ 125,848  

Biofuels revenue

    42,396       6,525       152,286       173,763  

Total Revenue

  $ 69,373     $ 33,872     $ 253,193     $ 299,611  
                                 

Segment gross profit

                               

Chemicals

  $ 9,332     $ 7,293     $ 32,055     $ 35,452  

Biofuels

    8,181       22,220       14,803       21,594  

Total gross profit

  $ 17,513     $ 29,513     $ 46,858     $ 57,046  

Corporate expenses

    (2,736 )     (2,429 )     (10,335 )     (10,075 )

Income before interest and taxes

  $ 14,777     $ 27,084     $ 36,523     $ 46,971  

Interest and other income

    1,706       1,098       6,152       5,213  

Interest and other expense

    (681 )     (1,149 )     (1,869 )     (315 )

Benefit/(provision) for income taxes

    2,878       2,614       15,535       (5,448 )

Net income

  $ 18,680     $ 29,647     $ 56,341     $ 46,421  

 

 

 

 

 

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.

 

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