Renewable Energy Group, Inc. (NASDAQ:REGI) Q2 2019 Earnings Conference Call - Final Transcript

Aug 06, 2019 • 04:30 pm ET


Renewable Energy Group, Inc. (NASDAQ:REGI) Q2 2019 Earnings Conference Call - Final Transcript


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Greetings, and welcome to the Renewable Energy Group Second Quarter 2019 Earnings Conference Call. [Operator Instructions]

It is now my pleasure to introduce your host, Todd Robinson, Treasurer. Thank you, sir. You may begin.

Todd Robinson

Thank you, operator. Good afternoon, everyone, and welcome to our second quarter 2019 earnings conference call.

With me today is our President and Chief Executive Officer, C.J. Warner; and our Chief Financial Officer, Chad Stone. Let me cover a few housekeeping items, before I turn the call over to C.J.

First, I would like to remind everyone that this call is being webcast and is available at the Investor Relations section of our website at A replay will be available on our website beginning later this afternoon. The webcast includes an accompanying slide deck for your reference. This will appear automatically with the webcast, but you will need to advance the slides manually as we prompt you. For those of you dialing-in, the slide deck can be downloaded along with the earnings press release, in the Investor Relations section of our website.

Turning to Slide 3, we would like to advise you that some of the information discussed on this conference call will contain forward-looking statements. These statements involve risks, uncertainties and assumptions that are difficult to predict and such forward-looking statements are not a guarantee of performance. The Company's actual results could differ materially from those contained in such statements. Several factors could cause or contribute to those differences. These factors are described in detail in the Risk Factors and other sections of our annual report on Form 10-K and subsequent quarterly reports on Form 10-Q, which are on file with the SEC. These forward-looking statements speak only as of the date of this call. The Company undertakes no obligation to publicly update any forward-looking statements based on new information or revised expectations.

Today's discussion also includes non-GAAP financial measures. We believe these metrics will help investors assess the operating performance of our core business. Please see the press release or the appendix to the accompanying slide deck for a reconciliation of the non-GAAP measures to the most comparable GAAP measures.

With that, let me turn the call over to C.J. Warner. CJ?

Cynthia J. Warner

Thank you, Todd, and good afternoon to those on the call. I will discuss our second quarter high level results, margin and regulatory environment and operating highlights and then Chad will provide more details on our financial results. Then I will come back to discuss our outlook.

Our second quarter reported financial results were disappointing as we and the entire industry navigated through a very low margin environment. These results do, however, reflect continuing strong underlying operating performance. As reflected on Slide 4, our second quarter adjusted EBITDA of negative $42.3 million was well below our expectations. Since we provided guidance at the last earnings call, customer sentiment around the Biodiesel Mixture Excise Tax Credit, otherwise known as BTC, has started to shift. The decision as to whether or not to reinstate