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BioFuel Energy Reports Third Quarter 2012 Results

November 13, 2012

DENVER, Nov. 13, 2012 /PRNewswire/ – BIOFUEL ENERGY CORP. (NASDAQ:BIOF), an ethanol production company, today announced its third quarter 2012 results. For the quarter ended September 30, 2012, the net loss was $11.3 million on revenues of $116.1 million, compared with net income of $2.5 million on revenues of $162.5 million for the quarter ended September 30, 2011. For the quarter ended September 30, 2012, the net loss attributable to common stockholders was $9.8 million, or $1.88 per share, while for the three months ended September 30, 2011 the net income attributable to common stockholders was $2.2 million, or $.36 per diluted share.

“We continue to try to make the appropriate operating decisions in managing our assets. Given the continuation of a weak corn-ethanol crush spread, and additional pressure from local corn basis, we are currently operating only our Nebraska plant.” said Scott H. Pearce, the Company’s President and Chief Executive Officer. “We look forward to an improved crush spread environment in which we can restart our Minnesota facility. In the meantime, we continue to have ongoing dialogue with our senior lenders to resolve our current liquidity issues and enhance our working capital position going forward.”

For the quarter ended September 30, 2012, the Company’s operating loss was $10.1 million, which resulted from $124.2 million in cost of goods sold and $2.1 million in general and administrative expenses. During the third quarter of 2012, the Company also had $0.7 million of other income while incurring $1.9 million in interest expense, which resulted in a net loss of $11.3 million. For the same period of 2011, our operating income was $4.5 million, which resulted from $155.5 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 third quarter of 2011, which resulted in net income of $2.5 million.

As previously disclosed, the Company’s operating subsidiaries did not make the regularly-scheduled payments of principal and interest that were due on September 28, 2012, in an aggregate amount of $3.6 million, on the term loans outstanding under their senior debt facility, which resulted in the Company receiving a notice of default from the lenders of the senior debt facility. As a result, the Company has classified the entire $170.5 million in term loans outstanding as a current liability on the Company’s September 30, 2012 balance sheet. The Company, on behalf of its operating subsidiaries, has had, and intends to continue to have, discussions with the lenders regarding the terms of a potential forbearance, reinstatement and/or restructuring of the term loans. At September 30, 2012, the Company held $10.8 million of cash and cash equivalents and equity totaled $66.2 million, including $0.3 million of noncontrolling interest.

The Company plans to host a conference call on Wednesday, November 14, 2012 beginning at 11:00 a.m. (EST) to discuss the results. To participate, please dial (800) 944-8766. The participant code for the call is 41876. 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 168656.

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 September 30,           Nine Months Ended September 30,
                                                   --------------------------------           -------------------------------

      Summary Income Statement                              2012                2011                2012                2011
     ------------------------                               ----                ----                ----                ----
     Net sales                                          $116,149            $162,547            $378,382            $489,083
     Cost of goods sold                                  124,192             155,498             401,204             487,950
                                                          -------             -------                                 -------
     Gross profit (loss)                                  (8,043)              7,049  #          (22,822)              1,133
     General and administrative expenses:
        Compensation expense                               1,435               1,676               4,750               5,062
        Other                                                629                 846               2,482               2,693
                                                             ---                 ---                                   -----
     Operating income (loss)                             (10,107)              4,527             (30,054)             (6,622)
     Other income                                            680                   -                 680                   -
     Interest expense                                     (1,901)             (1,978)             (5,461)             (8,195)
                                                         -------              ------                                  ------
     Net income (loss)                                   (11,328)              2,549             (34,835)            (14,817)
      Less: Net (income) loss attributable
      to the noncontrolling interest                       1,498                (355)              5,015               2,307
                                                           -----               -----                                   -----
      Net income (loss) attributable to
      BioFuel Energy Corp. common
      stockholders                                       $(9,830)             $2,194            $(29,820)           $(12,510)
     ==================================                  =======                                ========

      Income (loss) per share attributable
      to BioFuel Energy Corp. common
      stockholders:
      Basic                                               $(1.88)              $0.43              $(5.76)             $(2.72)
     =====                                                ======                                  ======
      Diluted                                             $(1.88)              $0.36              $(5.76)             $(2.72)
     =======                                              ======                                  ======

     Weighted average shares outstanding:
      Basic                                                5,224               5,120               5,178               4,602
                                                           =====               =====                                   =====
      Diluted                                              5,224               6,152               5,178               4,602
                                                           =====               =====                                   =====

      Additional Operational Data
     ---------------------------
     Ethanol sold (gallons, in thousands)                 36,271              50,716             134,786             162,381
      Dry distillers grain sold (tons, in
      thousands)                                            32.6                80.1               131.9               260.2
      Wet distillers grain sold (tons, in
      thousands)                                           170.8               165.2               654.0               499.1
     Corn oil sold (pounds, in thousands)                 11,466                   -              28,626                   -
     Corn ground (bushels, in thousands)                  12,632              18,010              48,120              58,558

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

      Cash and cash equivalents                          $10,842             $15,139
      Accounts receivable                                 13,939              13,591
      Inventories                                         12,917              26,188
      Prepaid expenses                                       900               2,148
      Other current assets                                 3,500                 421
      Property, plant and equipment, net                 216,073             235,888
      Debt issuance costs, net                             1,990               2,763
      Other non-current assets                             3,008               3,448
                                                           -----               -----
      Total assets                                      $263,169            $299,586
     ============                                       ========

      Total current liabilities                         $186,524             $24,452
      Long-term debt, net of current
       portion                                             2,708             166,937
      Tax increment financing, net of
       current portion                                     4,573               4,867
      Other non-current liabilities                        3,138               3,388
                                                           -----               -----
      Total liabilities                                  196,943             199,644
                                                         -------             -------

      BioFuel Energy Corp. stockholders'
       equity                                             65,882              94,310
      Noncontrolling interest                                344               5,632
                                                             ---                 ---
      Total equity                                        66,226              99,942
                                                          ------              ------
      Total liabilities and equity                      $263,169            $299,586
     ============================                       ========

                                                Three Months Ended September 30,        Nine Months Ended September 30,
                                                --------------------------------        -------------------------------

      Reconciliation of Net Income (Loss) to
      EBITDA                                                2012                2011                2012                2011
      Net income (loss)                                 $(11,328)             $2,549            $(34,835)           $(14,817)
      Interest expense                                     1,901               1,978               5,461               8,195
      Depreciation and amortization expense
       included in cost of goods sold                      6,541               6,467              19,610              19,410
      Depreciation and amortization expense
       included in G&A expenses                              265                 269                 798                 822
                                                             ---                 ---                                     ---
      EBITDA                                             $(2,621)            $11,263             $(8,966)            $13,610
     ------                                              -------                                 -------

SOURCE BioFuel Energy Corp.


Source: PR Newswire