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BioFuel Energy Reports Second Quarter 2012 Results

August 9, 2012

DENVER, Aug. 9, 2012 /PRNewswire/ — BIOFUEL ENERGY CORP. (NASDAQ:BIOF), an ethanol production company, today announced its second quarter 2012 results. For the quarter ended June 30, 2012, the net loss was $12.4 million on revenues of $122.8 million, compared with a net loss of $8.3 million on revenues of $168.5 million for the quarter ended June 30, 2011. For the quarter ended June 30, 2012, the net loss attributable to common stockholders was $10.6 million, or $2.05 per share, while for the three months ended June 30, 2011 the net loss attributable to common stockholders was $7.0 million, or $1.38 per share.

“We continued to face a challenging commodity margin environment, particularly the corn-ethanol crush spread,” said Scott H. Pearce, the Company’s President and Chief Executive Officer. “The industry continued to overproduce well into the quarter, although we have lately seen some meaningful pull back in production. We again produced fewer gallons year over year as we pared back production to optimize the margin realized. Finally, with respect to the drought, we believe that the crops in the immediate vicinity of our locations are doing quite well in comparison to other regions in the corn belt and we do not anticipate any material interruption of supply.”

For the quarter ended June 30, 2012, the Company’s operating loss was $10.7 million, which resulted from $131.1 million in cost of goods sold and $2.4 million in general and administrative expenses. During the second quarter of 2012, the Company also incurred $1.7 million in interest expense, which resulted in a net loss of $12.4 million. For the same period of 2011, our operating loss was $6.3 million, which resulted from $172.3 million in cost of goods sold and $2.5 million in general and administrative expenses. The Company also had $2.0 million of interest expense in the second quarter of 2011, which resulted in a net loss of $8.3 million.

At June 30, 2012, the Company had $170.5 million in term loans outstanding under its senior debt facility. At June 30, 2012, the Company held $9.2 million of cash and cash equivalents and equity totaled $77.2 million, including $2.1 million of noncontrolling interest.

The Company plans to host a conference call on Friday, August 10, 2012 beginning at 11:00 a.m. (EDT) to discuss the results. To participate, please dial (800) 944-8766. The participant code for the call is 29611. Approximately 90 minutes following the call, a phone playback will be available for 30 days by dialing (866) 281-6782. The access code for the replay is 168228.

This release contains certain forward-looking statements within the meaning of the Federal securities laws. Such statements are based on management’s current expectations, estimates and projections, which are subject to a wide range of uncertainties and business risks. Forward-looking statements should not be read as a guarantee of future performance or results, and will not necessarily be accurate indications of whether, or the times by which, our performance or results may be achieved. Factors that could cause actual results to differ from those anticipated are discussed in our Exchange Act filings and our Annual Report on Form 10-K.

BioFuel Energy currently has two 110 million gallons per year ethanol plants in the Midwestern corn belt. The Company’s goal is to become a leading ethanol producer in the United States by acquiring, developing, owning and operating ethanol production facilities.

    Contact: Kelly G. Maguire           For more information:
             Executive Vice President & www.bfenergy.com
             Chief Financial Officer
             (303) 640-6500
             kmaguire@bfenergy.com

                                                                      BioFuel Energy Corp.
                                                            (in thousands, except per share amounts)

                              Three Months Ended June 30,                                           Six Months Ended June
                                                                                                              30,
                               ---------------------------                                         ----------------------

     Summary Income Statement                         2012                                   2011                             2012      2011
     ------------------------                         ----                                   ----                             ----      ----
    Net sales                                     $122,820                               $168,531                         $262,233  $326,536
    Cost of goods sold                             131,079                                172,294                          277,012   332,452
                                                   -------                                -------                          -------   -------
    Gross loss                                      (8,259)                                (3,763)                         (14,779)   (5,916)
    General and
     administrative
     expenses:
       Compensation expense                          1,510                                  1,616                            3,314     3,386
       Other                                           923                                    950                            1,854     1,847
                                                       ---                                    ---                            -----     -----
     Operating loss                                (10,692)                                (6,329)                         (19,947)  (11,149)
     Interest expense                               (1,723)                                (1,988)                          (3,561)   (6,216)
                                                    ------                                 ------                           ------    ------
     Net loss                                      (12,415)                                (8,317)                         (23,508)  (17,365)
     Less: Net loss
      attributable to the
      noncontrolling interest                        1,833                                  1,275                            3,518     2,662
                                                     -----                                  -----                            -----     -----
     Net loss attributable to
      BioFuel Energy Corp.
      common stockholders                         $(10,582)                               $(7,042)                        $(19,990) $(14,703)
                                                  ========                                =======                         ========  ========

     Loss per share -basic
      and diluted
      attributable to Biofuel
     Energy Corp. common
      stockholders                                  $(2.05)                                $(1.38)                          $(3.88)   $(3.39)
                                                    ======                                 ======                           ======    ======

    Weighted average shares
     outstanding-basic and
     diluted                                         5,167                                  5,104                            5,154     4,339

     Additional Operational
      Data
     ----------------------
    Ethanol sold (gallons,
     in thousands)                                  46,544                                 55,007                           98,515   111,665
    Dry distillers grain
     sold (tons, in
     thousands)                                       45.3                                   84.4                             99.3     180.1
    Wet distillers grain
     sold (tons, in
     thousands)                                      231.8                                  185.2                            483.2     333.9
    Corn oil sold (pounds,
     in thousands)                                  10,318                                      -                           17,160         -
    Corn ground (bushels, in
     thousands)                                     16,630                                 20,063                           35,435    40,569

                                         June 30,                       December 31,
     Summary Balance Sheet                            2012                                   2011
     ---------------------                            ----                                   ----

     Cash and cash
      equivalents                                   $9,213                                $15,139
     Accounts receivable                            14,925                                 13,591
     Inventories                                    17,293                                 26,188
     Prepaid expenses                                1,690                                  2,148
     Other current assets                            3,852                                    421
     Property, plant and
      equipment, net                               222,865                                235,888
     Debt issuance costs, net                        2,245                                  2,763
     Other non-current
      assets                                         3,008                                  3,448
                                                     -----                                  -----
     Total assets                                 $275,091                               $299,586
                                                  ========                               ========

     Total current
      liabilities                                  $29,556                                $24,452
     Long-term debt, net of
      current portion                              160,631                                166,937
     Tax increment financing,
      net of current portion                         4,573                                  4,867
     Other non-current
      liabilities                                    3,146                                  3,388
                                                     -----                                  -----
     Total liabilities                             197,906                                199,644
                                                   -------                                -------

     BioFuel Energy Corp.
      stockholders' equity                          75,117                                 94,310
     Noncontrolling interest                         2,068                                  5,632
                                                     -----                                  -----
     Total equity                                   77,185                                 99,942
                                                    ------                                 ------
     Total liabilities and
      equity                                      $275,091                               $299,586
                                                  ========                               ========

                              Three Months Ended June 30,                                           Six Months Ended June
                                                                                                              30,
                               ---------------------------                                         ----------------------

     Reconciliation of Net
      Loss to EBITDA                                  2012                                   2011                             2012      2011
     ---------------------                            ----                                   ----                             ----      ----
     Net loss                                     $(12,415)                               $(8,317)                        $(23,508) $(17,365)
     Interest expense                                1,723                                  1,988                            3,561     6,216
     Depreciation and
      amortization expense
      included in cost of
      goods sold                                     6,538                                  6,465                           13,069    12,943
     Depreciation and
      amortization expense
      included in G&A
      expenses                                         267                                    275                              533       553
                                                       ---                                    ---                              ---       ---
     EBITDA                                        $(3,887)                                  $411                          $(6,345)   $2,347
                                                   =======                                   ====                          =======    ======

SOURCE BioFuel Energy Corp.


Source: PR Newswire