Biofuel Energy Reports Earnings

BIOFUEL ENERGY CORP. (Nasdaq:BIOF – News), an ethanol production company, today announced its fourth quarter and year end 2009 results. Net income attributable to common shareholders was $6.8 million, or $.21 per diluted share, for the quarter ended December 31, 2009. For the year ended December 31, 2009, the net loss attributable to common shareholders was $13.6 million, or $.57 per share. For the quarter ended December 31, 2009, revenues totaled $120.4 million, which were comprised of $105.8 million from sales of ethanol and $14.6 million from sales of distillers grain. For the year ended December 31, 2009, revenues totaled $415.5 million, comprised of $353.7 million from sales of ethanol and $61.8 million from sales of distillers grain.

Operating income for the fourth quarter was $11.7 million, which resulted from $105.8 million in cost of goods sold, including $73.1 million for corn, and $2.9 million in general and administrative expenses. The Company also had $2.9 million of interest expense in the fourth quarter, which resulted in net income of $8.8 million. For the full year, our operating loss was $4.9 million, which resulted from $404.8 million in cost of goods sold, including $284.9 million for corn, and $15.6 million in general and administrative and other operating expenses. During the year the Company had $14.9 million in interest expense, partially offset by $.1 million in interest income, which resulted in a net loss of $19.7 million for the year.

As tracked by the Company (using CBOT spot closing prices for corn and ethanol), crush spreads ranged from $0.06 per gallon to $0.68 per gallon during the year ended December 31, 2009, averaging $0.28 per gallon during the year, and during the fourth quarter ranged from $0.31 per gallon to $0.68 per gallon, with an average spread of $0.49 per gallon during that time. During the first two months of 2010, by comparison, crush spreads ranged from $0.28 per gallon to $0.47 per gallon, with an average spread of $0.37 per gallon during that time.

Scott H. Pearce, the Company’s President and Chief Executive Officer, stated: “Overall we had a solid fourth quarter. Our entire operations team can be proud of delivering on our first profitable quarter. However, the more recent contraction in margins due to the narrowing of the spread between our cost of corn and the price of ethanol presents challenges for the first quarter of 2010.”

At December 31, 2009, amounts outstanding under the senior debt facilities included $195.4 million in term loans and $16.5 million borrowed under the working capital facility. At December 31, 2009, the Company held $6.1 million of cash and equivalents and equity totaled $77.9 million, including $5.7 million of noncontrolling interest.

The Company also reported that its auditors have included an explanatory paragraph with its audit opinion on the Company’s December 31, 2009 financial statements, expressing substantial doubt about the Company’s ability to continue as a going concern. This explanatory paragraph was included primarily because the Company’s working capital facility will mature in September 2010, unless extended.