- Net income attributable to the company of $8.2 million, or $0.21 per diluted share
- Company produced a record 274.3 million gallons of ethanol
OMAHA, Neb., Aug. 01, 2016 (GLOBE NEWSWIRE) — Green Plains Inc. (NASDAQ:GPRE) today announced financial results for the second quarter of 2016. Net income attributable to the company was $8.2 million, or $0.21 per diluted share, for the second quarter of 2016 compared with net income of $7.8 million, or $0.19 per diluted share, for the same period in 2015. Revenues were $887.7 million for the second quarter of 2016 compared with $744.5 million for the same period last year.
“We are pleased with our performance in the second quarter of 2016, which resulted in a $50 million increase of operating income compared with the first quarter,” said Todd Becker, president and chief executive officer. “Our agribusiness and marketing and distribution segments reported strong results and the partnership segment generated its best results since going public in June of 2015. During the second quarter of 2016, we produced record ethanol volumes and with the current ethanol margin environment, we expect stronger production levels in the last half of the year.”
During the second quarter, Green Plains produced 274.3 million gallons of ethanol compared with 238.7 million gallons for the same period in 2015. The consolidated ethanol crush margin was $45.3 million, or $0.17 per gallon, for the second quarter of 2016 compared with $46.5 million, or $0.20 per gallon, for the same period in 2015. The consolidated ethanol crush margin is the ethanol production segment’s operating income before depreciation and amortization, which includes corn oil production, plus intercompany storage, transportation and other fees, net of related expenses.
Revenues were $1.6 billion for the six-month period ended June 30, 2016, compared with $1.5 billion for the same period in 2015. Net loss for the six-month period ended June 30, 2016, was $(15.9) million, or $(0.42) per diluted share, compared with net income of $4.5 million, or $0.11 per diluted share, for the same period in 2015.
“Ethanol demand continues to grow, supported by a 3% growth in domestic ethanol consumption and a 6% increase in U.S. ethanol exports year-to-date,” commented Becker. “We continue to execute on our core strategy of capital allocation with an intense focus on growing our company, including both organic and acquisitive opportunities.”
Second Quarter Highlights
- During the second quarter of 2016, Green Plains repurchased 323,290 shares of common stock for approximately $6.0 million. To date, 514,990 shares of common stock have been repurchased for approximately $10.0 million under the company’s $100 million share repurchase program.
- On June 14, 2016, Green Plains and Jefferson Gulf Coast Energy Partners, a subsidiary of Fortress Transportation and Infrastructure Investors LLC, announced the formation of a 50/50 joint venture to construct and operate an intermodal export and import fuels terminal at Jefferson’s existing Beaumont, Texas terminal. The joint venture is expected to invest approximately $55 million in its Phase I development, focused initially on storage and throughput capabilities for multiple grades of ethanol. Green Plains will offer its interest in the joint venture to the partnership once commercial development is complete.
- On June 12, 2016, Green Plains entered into an asset purchase agreement with Abengoa Bioenergy of Illinois, LLC and Abengoa Bioenergy of Indiana, LLC to acquire two ethanol plants located in Madison, Ill. and Mount Vernon, Ind. for approximately $200 million in cash, plus certain inventory adjustments and liabilities. The two plants have combined annual production capacity of approximately 180 million gallons of ethanol. The sellers and other affiliates have pending cases under Chapter 11 of the U.S. Bankruptcy Code. The asset purchase agreement constitutes a stalking horse bid, which is subject to bidding procedures and receipt of higher or otherwise better bids at the proposed auction for the plants, and approval by the U.S. Bankruptcy Court. If Green Plains is not the successful bidder at the auction, the sellers must pay a break-up fee equal to $2.5 million per plant, plus reimbursement of expenses up to $500,000. Should Green Plains submit the winning bid, the company expects the transaction to close during the third quarter of 2016 and to offer the plants’ transportation and storage assets to the partnership.
Results of Operations
Consolidated revenues increased $143.2 million for the three months ended June 30, 2016, compared with the same period in 2015. Revenues from ethanol, corn oil and grain sales increased $103.4 million, $21.4 million and $11.0 million, respectively. Ethanol revenues were affected by increased volumes sold, partially offset by lower average realized prices. Corn oil revenues and grain revenues were impacted by increased volumes sold.
Operating income increased $3.0 million for the three months ended June 30, 2016, compared with the same period last year primarily due to increased margins on merchant trading activity and cattle. Interest expense remained flat for the three months ended June 30, 2016, compared with the same period in 2015. Income tax expense was $5.5 million for the three months ended June 30, 2016, compared with $5.2 million for the same period in 2015.
Earnings before interest, income taxes, depreciation and amortization (EBITDA) for the second quarter of 2016 was $47.7 million compared with $39.7 million for the same period last year.
| GREEN PLAINS INC. | |||||||||||||||||||||||
| SEGMENT OPERATIONS | |||||||||||||||||||||||
| (unaudited, in thousands) | |||||||||||||||||||||||
| Three Months Ended June 30, |
Six Months Ended June 30, |
||||||||||||||||||||||
| 2016 | 2015 | % Var. | 2016 | 2015 | % Var. | ||||||||||||||||||
| Revenues: | |||||||||||||||||||||||
| Ethanol production | $ | 515,726 | $ | 464,879 | 10.9 | % | $ | 939,316 | $ | 896,601 | 4.8 | % | |||||||||||
| Agribusiness | 472,140 | 343,576 | 37.4 | 857,532 | 664,694 | 29.0 | |||||||||||||||||
| Marketing and distribution | 771,653 | 656,768 | 17.5 | 1,437,844 | 1,310,030 | 9.8 | |||||||||||||||||
| Partnership | 25,493 | 3,445 | * | 49,281 | 6,841 | * | |||||||||||||||||
| Intersegment eliminations | (897,285 | ) | (724,178 | ) | 23.9 | (1,647,042 | ) | (1,395,288 | ) | 18.0 | |||||||||||||
| 887,727 | 744,490 | 19.2 | 1,636,931 | 1,482,878 | 10.4 | ||||||||||||||||||
| Gross margin: | |||||||||||||||||||||||
| Ethanol production | 32,695 | 53,982 | * | 22,821 | 77,371 | * | |||||||||||||||||
| Agribusiness | 8,392 | 4,256 | 97.2 | 13,903 | 9,709 | 43.2 | |||||||||||||||||
| Marketing and distribution | 15,377 | 7,515 | 104.6 | 16,364 | 16,552 | (1.1 | ) | ||||||||||||||||
| Partnership | 25,493 | 3,445 | * | 49,281 | 6,841 | * | |||||||||||||||||
| Intersegment eliminations | (3,754 | ) | (1,303 | ) | 188.0 | 350 | 3,381 | (89.6 | ) | ||||||||||||||
| 78,203 | 67,895 | 15.2 | 102,719 | 113,854 | (9.8 | ) | |||||||||||||||||
| Operating income (loss): | |||||||||||||||||||||||
| Ethanol production | 10,555 | 34,192 | * | (22,696 | ) | 37,612 | * | ||||||||||||||||
| Agribusiness | 5,560 | 2,258 | 146.2 | 8,788 | 5,468 | 60.7 | |||||||||||||||||
| Marketing and distribution | 10,626 | 3,453 | 207.7 | 8,656 | 7,858 | 10.2 | |||||||||||||||||
| Partnership | 14,803 | (5,284 | ) | * | 27,874 | (10,432 | ) | * | |||||||||||||||
| Intersegment eliminations | (3,754 | ) | (1,303 | ) | 188.1 | 350 | 3,381 | (89.6 | ) | ||||||||||||||
| Segment operating income | 37,790 | 33,316 | 13.4 | 22,972 | 43,887 | (47.7 | ) | ||||||||||||||||
| Corporate activities | (10,381 | ) | (8,914 | ) | 16.5 | (18,209 | ) | (15,381 | ) | 18.4 | |||||||||||||
| $ | 27,409 | $ | 24,402 | 12.3 | $ | 4,763 | $ | 28,506 | (83.3 | ) | |||||||||||||
| * Percentage variance not considered meaningful. | |||||||||||||||||||||||
| GREEN PLAINS INC. | |||||||||||||||
| OPERATING DATA BY PRODUCT | |||||||||||||||
| (unaudited, in thousands) | |||||||||||||||
| Three Months Ended June 30, |
Six Months Ended June 30, |
||||||||||||||
| 2016 | 2015 | % Var. | 2016 | 2015 | % Var. | ||||||||||
| Ethanol production | |||||||||||||||
| Ethanol sold (gallons) | 274,271 | 238,737 | 14.9 | % | 521,226 | 471,230 | 10.6 | % | |||||||
| Distillers grains sold (tons) | 734 | 631 | 16.5 | 1,381 | 1,260 | 9.6 | |||||||||
| Corn oil sold (pounds) | 64,514 | 62,355 | 3.5 | 124,354 | 120,057 | 3.6 | |||||||||
| Corn consumed (bushels) | 95,638 | 84,162 | 13.6 | 182,169 | 166,209 | 9.6 | |||||||||
| Agribusiness | |||||||||||||||
| Grain sold (bushels) | 98,973 | 72,959 | 35.7 | 186,930 | 143,384 | 30.4 | |||||||||
| Marketing and distribution | |||||||||||||||
| Ethanol sold (gallons) | 355,665 | 299,717 | 18.7 | 681,825 | 575,641 | 18.4 | |||||||||
| Partnership | |||||||||||||||
| Storage and throughput (gallons) |
274,271 | – | * | 521,226 | – | * | |||||||||
| * Percentage variance not considered meaningful. | |||||||||||||||
| GREEN PLAINS INC. | |||||||||||||||
| CONSOLIDATED CRUSH MARGIN | |||||||||||||||
| (unaudited, in thousands except per gallon amounts) | |||||||||||||||
| Three Months Ended June 30, |
Three Months Ended June 30, |
||||||||||||||
| 2016 | 2015 | 2016 | 2015 | ||||||||||||
| ($ in thousands) | ($ per gallon produced) | ||||||||||||||
| Ethanol production operating income | $ | 10,555 | $ | 34,192 | $ | 0.04 | $ | 0.14 | |||||||
| Depreciation and amortization | 15,150 | 13,783 | 0.06 | 0.06 | |||||||||||
| Total ethanol production | 25,705 | 47,975 | 0.10 | 0.20 | |||||||||||
| Intercompany fees, net: | |||||||||||||||
| Storage and logistics (partnership) | 15,006 | (5,630 | ) | 0.05 | (0.02 | ) | |||||||||
| Marketing and agribusiness fees | 4,630 | 4,115 | 0.02 | 0.02 | |||||||||||
| Consolidated crush margin | $ | 45,341 | $ | 46,460 | $ | 0.17 | $ | 0.20 | |||||||
Liquidity and Capital Resources
On June 30, 2016, Green Plains had $405.7 million in cash and cash equivalents, and $182.4 million available under revolving credit agreements, some of which are subject to restrictions and other lending conditions. Total debt outstanding was $730.7 million, including $245.6 million outstanding under working capital revolvers and other short-term borrowing arrangements for the marketing and distribution, and agribusiness segments at June 30, 2016.
Conference Call Information
On Aug. 2, 2016, Green Plains Inc. and Green Plains Partners LP will host a joint conference call at 11 a.m. Eastern time (10 a.m. Central time) to discuss second quarter 2016 financial and operating results for each company. Domestic and international participants can access the conference call by dialing 888.427.9376 and 719.457.2689, respectively. Participants are advised to call at least 10 minutes prior to the start time. Alternatively, the conference call and presentation can be accessed on Green Plains’ website at http://investor.gpreinc.com/events.cfm.
Non-GAAP Financial Measures
Management uses earnings before interest, income taxes, depreciation and amortization, or EBITDA, and consolidated ethanol crush margin to measure the company’s financial performance and to internally manage its businesses. Management believes these measures provide useful information to investors for comparison with peer and other companies. These measures should not be considered an alternative to net income or segment operating income, which are determined in accordance with generally accepted accounting principles. EBITDA calculations may vary from company to company. Accordingly, the company’s computation of EBITDA may not be comparable with a similarly-titled measure of another company.
About Green Plains Inc.
Green Plains Inc. (NASDAQ:GPRE) is a diversified commodity-processing business with operations related to ethanol, distillers grains and corn oil production; grain handling and storage; a cattle feedlot; and commodity marketing and distribution services. The company processes 12 million tons of corn annually, producing over 1.2 billion gallons of ethanol, approximately 3.5 million tons of livestock feed and 275 million pounds of industrial grade corn oil at full capacity. Green Plains owns a 62.5% limited partner interest and a 2.0% general partner interest in Green Plains Partners. For more information about Green Plains, visit www.gpreinc.com.
About Green Plains Partners LP
Green Plains Partners LP (NASDAQ:GPP) is a fee-based Delaware limited partnership formed by Green Plains Inc. to provide fuel storage and transportation services by owning, operating, developing and acquiring ethanol and fuel storage tanks, terminals, transportation assets and other related assets and businesses. For more information about Green Plains Partners, visit www.greenplainspartners.com.
Forward-Looking Statements
This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Forward-looking statements include words such as “anticipates,” “believes,” “estimates,” “expects,” “goal,” “intends,” “plans,” “potential,” “predicts,” “should,” “will,” and other words with similar meanings in connection with future operating or financial performance. Such statements are based on management’s current expectations, which are subject to various factors, risks and uncertainties that may cause actual results, outcomes, timing and performance to differ materially from those expressed or implied. Green Plains may experience significant fluctuations in future operating results due to a number of economic conditions, including competition in the industries in which Green Plains operates; commodity market risks, including those resulting from current weather conditions; financial market risks; counterparty risks; risks associated with changes to federal policy or regulation; risks related to closing and achieving anticipated results from acquisitions; risks associated with the joint venture to commercialize algae production; and other risks detailed in Green Plains’ reports filed with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended Dec. 31, 2015, and subsequent filings with the SEC. Green Plains is not obligated nor intends to update its forward-looking statements at any time unless it is required by applicable securities laws. Unpredictable or unknown factors not discussed in this release could also have material adverse effects on forward-looking statements.
Consolidated Operating Data and Financial Results
| GREEN PLAINS INC. | |||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
| (in thousands) | |||||||
| June 30, 2016 |
December 31, 2015 |
||||||
| (unaudited) | |||||||
| ASSETS | |||||||
| Current assets | |||||||
| Cash and cash equivalents | $ | 386,920 | $ | 384,867 | |||
| Restricted cash | 18,785 | 27,018 | |||||
| Accounts receivable | 140,597 | 96,150 | |||||
| Inventories | 280,700 | 353,957 | |||||
| Other current assets | 73,597 | 50,585 | |||||
| Total current assets | 900,599 | 912,577 | |||||
| Property and equipment, net | 915,726 | 922,070 | |||||
| Other assets | 82,580 | 83,273 | |||||
| Total assets | $ | 1,898,905 | $ | 1,917,920 | |||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
| Current liabilities | |||||||
| Accounts payable | $ | 111,465 | $ | 166,963 | |||
| Accrued and other liabilities | 35,644 | 32,026 | |||||
| Short-term notes payable and other borrowings | 245,637 | 226,928 | |||||
| Current maturities of long-term debt | 6,603 | 4,507 | |||||
| Other current liabilities | 22,644 | 8,245 | |||||
| Current liabilities | 421,993 | 438,669 | |||||
| Long-term debt | 478,489 | 432,139 | |||||
| Other liabilities | 68,503 | 88,203 | |||||
| Total liabilities | 968,985 | 959,011 | |||||
| Stockholders’ equity | |||||||
| Total Green Plains stockholders’ equity | 786,994 | 797,830 | |||||
| Noncontrolling interests | 142,926 | 161,079 | |||||
| Total liabilities and stockholders’ equity | $ | 1,898,905 | $ | 1,917,920 | |||
| GREEN PLAINS INC. | |||||||||||||||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||||||||||
| (unaudited, in thousands except per share amounts) | |||||||||||||||||||||||
| Three Months Ended June 30, |
Six Months Ended June 30, |
||||||||||||||||||||||
| 2016 | 2015 | % Var. | 2016 | 2015 | % Var. | ||||||||||||||||||
| Revenues | |||||||||||||||||||||||
| Product revenues | $ | 885,772 | $ | 742,383 | 19.3 | % | $ | 1,632,956 | $ | 1,478,686 | 10.4 | % | |||||||||||
| Service revenues | 1,955 | 2,107 | (7.2 | ) | 3,975 | 4,192 | (5.2 | ) | |||||||||||||||
| Total revenues | 887,727 | 744,490 | 19.2 | 1,636,931 | 1,482,878 | 10.4 | |||||||||||||||||
| Costs and expenses | |||||||||||||||||||||||
| Cost of goods sold | 809,524 | 676,595 | 19.6 | 1,534,212 | 1,369,024 | 12.1 | |||||||||||||||||
| Operations and maintenance expenses | 8,504 | 7,102 | 19.7 | 17,149 | 14,135 | 21.3 | |||||||||||||||||
| Selling, general and administrative expenses | 23,589 | 20,226 | 16.6 | 43,961 | 39,201 | 12.1 | |||||||||||||||||
| Depreciation and amortization expenses |
18,701 | 16,165 | 15.7 | 36,846 | 32,012 | 15.1 | |||||||||||||||||
| Total costs and expenses | 860,318 | 720,088 | 19.5 | 1,632,168 | 1,454,372 | 12.2 | |||||||||||||||||
| Operating income | 27,409 | 24,402 | 12.3 | 4,763 | 28,506 | (83.3 | ) | ||||||||||||||||
| Other income (expense) | |||||||||||||||||||||||
| Interest income | 368 | 210 | 75.2 | 778 | 430 | 80.9 | |||||||||||||||||
| Interest expense | (10,499 | ) | (10,564 | ) | (0.6 | ) | (21,297 | ) | (19,722 | ) | 8.0 | ||||||||||||
| Other, net | 1,178 | (1,034 | ) | (213.9 | ) | (497 | ) | (1,965 | ) | (74.7 | ) | ||||||||||||
| Total other expense | (8,953 | ) | (11,388 | ) | (21.4 | ) | (21,016 | ) | (21,257 | ) | (1.1 | ) | |||||||||||
| Income (loss) before income taxes | 18,456 | 13,014 | 41.8 | (16,253 | ) | 7,249 | (324.2 | ) | |||||||||||||||
| Income tax expense (benefit) | 5,471 | 5,222 | 4.8 | (9,422 | ) | 2,775 | (439.5 | ) | |||||||||||||||
| Net income (loss) | 12,985 | 7,792 | 66.6 | (6,831 | ) | 4,474 | (252.7 | ) | |||||||||||||||
| Net income attributable to noncontrolling interests |
4,794 | – | * | 9,116 | – | * | |||||||||||||||||
| Net income (loss) attributable to Green Plains |
$ | 8,191 | $ | 7,792 | 5.1 | $ | (15,947 | ) | $ | 4,474 | (456.4 | ) | |||||||||||
| Earnings per share: | |||||||||||||||||||||||
| Net income (loss) attributable to Green Plains – basic |
$ | 0.21 | $ | 0.20 | $ | (0.42 | ) | $ | 0.12 | ||||||||||||||
| Net income (loss) attributable to Green Plains – diluted |
$ | 0.21 | $ | 0.19 | $ | (0.42 | ) | $ | 0.11 | ||||||||||||||
| Weighted avg. shares outstanding: | |||||||||||||||||||||||
| Basic | 38,425 | 38,027 | 38,311 | 37,916 | |||||||||||||||||||
| Diluted | 38,536 | 40,075 | 38,311 | 39,565 | |||||||||||||||||||
| * Percentage variance not considered meaningful. | |||||||||||||||||||||||
| GREEN PLAINS INC. | |||||||
| CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS | |||||||
| (unaudited, in thousands) | |||||||
| Six Months Ended June 30, |
|||||||
| 2016 | 2015 | ||||||
| Cash flows from operating activities: | |||||||
| Net income (loss) | $ | (6,831 | ) | $ | 4,474 | ||
| Noncash operating adjustments: | |||||||
| Depreciation and amortization | 36,846 | 32,012 | |||||
| Deferred income taxes | (17,936 | ) | 11,323 | ||||
| Other | 10,662 | 6,985 | |||||
| Net change in working capital | (36,946 | ) | (31,590 | ) | |||
| Net cash provided (used) by operating activities | (14,205 | ) | 23,204 | ||||
| Cash flows from investing activities: | |||||||
| Purchases of property and equipment | (29,084 | ) | (28,690 | ) | |||
| Acquisition of businesses, net of cash acquired | 65 | – | |||||
| Other | 994 | (3,309 | ) | ||||
| Net cash used by investing activities | (28,025 | ) | (31,999 | ) | |||
| Cash flows from financing activities: | |||||||
| Net proceeds (payments) – long-term debt | 44,777 | (10,344 | ) | ||||
| Net proceeds (payments) – short-term borrowings | 15,387 | (9,426 | ) | ||||
| Other | (15,881 | ) | 2,543 | ||||
| Net cash provided (used) by financing activities | 44,283 | (17,227 | ) | ||||
| Net change in cash and cash equivalents | 2,053 | (26,022 | ) | ||||
| Cash and cash equivalents, beginning of period | 384,867 | 425,510 | |||||
| Cash and cash equivalents, end of period | $ | 386,920 | $ | 399,488 | |||
| GREEN PLAINS INC. | |||||||||||||||
| RECONCILIATIONS TO NON-GAAP FINANCIAL MEASURES | |||||||||||||||
| (unaudited, in thousands) | |||||||||||||||
| Three Months Ended June 30, |
Six Months Ended June 30, |
||||||||||||||
| 2016 | 2015 | 2016 | 2015 | ||||||||||||
| Net income | $ | 12,985 | $ | 7,792 | $ | (6,831 | ) | $ | 4,474 | ||||||
| Interest expense | 10,499 | 10,564 | 21,297 | 19,722 | |||||||||||
| Income taxes | 5,471 | 5,222 | (9,422 | ) | 2,775 | ||||||||||
| Depreciation and amortization | 18,701 | 16,165 | 36,846 | 32,012 | |||||||||||
| EBITDA | $ | 47,656 | $ | 39,743 | $ | 41,890 | $ | 58,983 | |||||||
CONTACT: Contact: Jim Stark, Vice President - Investor and Media Relations, Green Plains Inc. (402) 884-8700