CLAYTON, Mo. - FutureFuel Corp. (NYSE: FF), a manufacturer of chemicals and biofuels, disclosed its financial outcomes for the fourth quarter and the full year ended December 31, 2023. The company reported a significant increase in net income for the year, alongside the declaration of a special cash dividend and the initiation of a share repurchase program.
For the fourth quarter of 2023, FutureFuel's revenues stood at $92.0 million, a decrease from $117.8 million in the same period the previous year. Nevertheless, net income for the quarter rose to $23.4 million, or $0.53 per diluted share, up from $14.9 million, or $0.34 per diluted share, in the fourth quarter of 2022.
Adjusted EBITDA for the quarter was slightly down at $16.8 million compared to $17.1 million in the prior year.
The full year 2023 saw revenues decrease to $368.3 million from $396.0 million in 2022. However, net income more than doubled to $37.4 million, or $0.85 per diluted share, from $15.2 million, or $0.35 per diluted share. Adjusted EBITDA for the year increased to $35.0 million from $27.8 million.
Tom McKinlay, CEO of FutureFuel, expressed satisfaction with the year's net income and was pleased to announce a special cash dividend of $2.50 per share. In addition, the Board of Directors authorized a share repurchase program of up to $25 million over the next 24 months.
McKinlay highlighted the record production volume of biodiesel achieved in 2023 and the company's focus on operational excellence and risk management.
The company declared a regular quarterly cash dividend of $0.06 per share in the fourth quarter of 2023. Moreover, on March 12, 2024, a special cash dividend of $2.50 per share was declared, payable on April 9, 2024, to shareholders of record as of March 26, 2024.
FutureFuel's capital expenditures were $6,022 in 2023, up from $4,778 in 2022. The company's cash and cash equivalents increased to $219,444 as of December 31, 2023, from $175,640 at the end of 2022.
The share repurchase program, which expires on March 12, 2026, may be adjusted or discontinued depending on market, economic, or business conditions. FutureFuel specializes in custom and performance chemicals and biofuels, aiming to continue its growth in the chemicals sector and maintain strong production and margins in its biodiesel business.
This report is based on a press release statement from FutureFuel Corp.
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