BioFuel Reports Second Quarter Results

DENVER, Aug. 13 /PRNewswire-FirstCall/ -- BIOFUEL ENERGY CORP. , an ethanol production company, today announced its second quarter 2010 results. For the quarter ended June 30, 2010, revenues totaled $96.4 million, resulting in a net loss of $12.0 million, compared to revenues of $106.5 million and a net loss of $9.0 million for the same period in 2009. Net loss attributable to common shareholders was $9.4 million, or $.37 per share, for the quarter ended June 30, 2010, compared to a net loss attributable to common shareholders of $6.5 million, or $.28 per share, for the same period in 2009.

Operating loss for the second quarter of 2010 was $9.4 million, which resulted from $102.6 million in cost of goods sold, including $70.3 million for corn, and $3.2 million in general and administrative expenses. The Company also had $2.6 million of interest expense in the second quarter of 2010. For the same period of 2009, our operating loss was $5.1 million, which resulted from $107.3 million in cost of goods sold, including $79.5 million for corn, and $4.3 million in general and administrative expenses. During the second quarter of 2009, the Company had $3.9 million in interest expense. Depreciation expense for the second quarter of 2010 was $6.7 million, compared to $6.6 million for the same period in 2009.

Scott H. Pearce, the Company's President and Chief Executive Officer, stated: "We are disappointed that margins continued to retreat faster than our cost saving initiatives, resulting in the loss for the quarter. However, we were able to accomplish our major plant improvement projects during the quarter, on schedule and within budget. We expect these initiatives will lead to further reductions in our production costs, which showed steady improvement throughout the quarter. We are also carefully monitoring developments with the EPA to expand the ethanol market via E-12 or E-15, which we see as supportive of margin improvements."

At June 30, 2010, amounts outstanding under the senior debt facilities included $195.7 million in term loans, and $16.4 million borrowed under the working capital facility which will mature in September 2010, unless extended. At June 30, 2010, the Company held $12.3 million of cash and equivalents and equity totaled $56.5 million, including $.6 million of noncontrolling interest.

The Company plans to host a conference call on Monday, August 16, 2010 beginning at 1:00 p.m. (EDT) to discuss the results. To participate, please dial [phone]. The participant code for the call is 13119. Approximately 90 minutes following the call, a phone playback will be available for 30 days by dialing [phone]. The access code for the replay is 153871.

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. Readers are directed in particular to the Company's disclosures concerning liquidity matters and going concern considerations contained in our most recent Quarterly Report on Form 10-Q.

BioFuel Energy currently has two 115 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.

BioFuel Energy Corp. (in thousands, except per share amounts) Three Months Ended June 30, Summary Income Statement 2010 2009 ------------------------ ---- ---- Net sales $96,398 $106,464 Cost of goods sold 102,613 107,307 ------- ------- Gross loss (6,215) (843) General and administrative expenses: Compensation expense 1,667 1,580 Other 1,514 2,652 ----- ----- Operating loss (9,396) (5,075) ------ ------ Interest income - 27 Interest expense (2,580) (3,937) Other non-operating expense - (3) --- --- Net loss (11,976) (8,988) Less: Net loss attributable to the noncontrolling interest 2,571 2,454 Net loss attributable to BioFuel Energy Corp. common shareholders $(9,405) $(6,534) ======= ======= Loss per share -basic and diluted attributable to BioFuel Energy Corp. common shareholders $(0.37) $(0.28) ====== ====== Weighted average shares outstanding-basic and diluted 25,441 23,335 Additional operational data ---------------------- Ethanol sold (gallons, in thousands) 56,715 55,950 Dry distillers grain sold (tons, in thousands) 119.1 123.7 Wet distillers grain sold (tons, in thousands) 96.9 94.6 Average FOB price of ethanol sold (per gallon) $1.49 $1.59 Average FOB price of dry distillers grain sold (per ton) $91.34 $119.76 Average FOB price of wet distillers grain sold (per ton) $23.59 $40.81 Average corn cost (per bushel) $3.48 $3.99 Six Months Ended June 30, Summary Income Statement 2010 2009 ------------------------ ---- ---- Net sales $197,285 $203,958 Cost of goods sold 208,197 209,872 ------- ------- Gross loss (10,912) (5,914) General and administrative expenses: Compensation expense 3,546 3,084 Other 2,666 3,790 ----- ----- Operating loss (17,124) (12,788) ------- ------- Interest income - 61 Interest expense (5,278) (7,438) Other non-operating expense - (1) --- --- Net loss (22,402) (20,166) Less: Net loss attributable to the noncontrolling interest 4,843 5,922 Net loss attributable to BioFuel Energy Corp. common shareholders $(17,559) $(14,244) ======== ======== Loss per share -basic and diluted attributable to BioFuel Energy Corp. common shareholders $(0.69) $(0.62) ====== ====== Weighted average shares outstanding-basic and diluted 25,391 22,921 Additional operational data ---------------------- Ethanol sold (gallons, in thousands) 111,548 111,011 Dry distillers grain sold (tons, in thousands) 246.1 243.5 Wet distillers grain sold (tons, in thousands) 200.8 198.8 Average FOB price of ethanol sold (per gallon) $1.54 $1.53 Average FOB price of dry distillers grain sold (per ton) $95.19 $119.51 Average FOB price of wet distillers grain sold (per ton) $22.98 $39.11 Average corn cost (per bushel) $3.58 $3.83 June 30, December 31, Summary Balance Sheet 2010 2009 --------------------- ---- ---- Cash and equivalents $12,290 $6,109 Accounts receivable 18,050 23,745 Inventories 13,515 20,885 Prepaid expenses 1,809 2,529 Other current assets - 325 Property, plant and equipment, net 273,019 284,362 Debt issuance costs, net 5,729 6,472 Other non-current assets 2,595 2,348 ----- ----- Total assets $327,007 $346,775 ======== ======== Total current liabilities $41,586 $40,830 Long-term debt, net of current portion 221,263 220,754 Tax increment financing, net of current portion 5,413 5,591 Other non-current liabilities 2,227 1,705 ----- ----- Total liabilities 270,489 268,880 BioFuel Energy Corp. stockholders' equity 55,869 72,235 Noncontrolling interest 649 5,660 --- ----- Total equity 56,518 77,895 ------ ------ Total liabilities and equity $327,007 $346,775 ======== ======== Total shares outstanding at August 11, 2010 (a) 32,575,838 (a) Includes common shares and class B common shares, net of 809,606 shares held in treasury. Contact: Kelly G. Maguire For more information: Vice President - Finance & http://www.bfenergy.com/ Chief Financial Officer [phone] [e-mail]

BioFuel Energy Corp.

CONTACT: Kelly G. Maguire, Vice President - Finance & Chief Financial
Officer of BioFuel Energy Corp., [phone], [e-mail]

Web Site: http://www.bfenergy.com/