Green Plains Inc. (NASDAQ:GPRE) today announced financial results
for the third quarter of 2018. Net loss attributable to the company
was $12.5 million, or $(0.31) per diluted share, for the third
quarter of 2018 compared to net income of $34.4 million, or $0.74
per diluted share, for the same period in 2017. Revenues were $1.0
billion for the third quarter of 2018 compared with $901.2 million
for the same period last year.
“I am pleased to say that the portfolio optimization plan we
launched six months ago to strengthen our balance sheet and to
reposition our assets for growth remains on track,” commented Todd
Becker, president and chief executive officer. “We estimate that
the cash proceeds from the asset sales, net of fees and taxes, will
be approximately $645 million. This will allow the company to pay
off the outstanding term loan B balance of $495 million and execute
on the other points of our portfolio optimization plan once the
sale transactions close.”
“We will be free of term debt on our assets for the first time
in the company’s history,” added Becker, “We will continue to focus
on enhancing our margin structure for our ethanol production
segment by reducing controllable expenses, investing in
high-protein feed technology, and focusing our efforts on growing
our earnings across our entire business.”
Revenues attributable to the company were $3.0 billion for the
nine-month period ended September 30, 2018, compared with $2.7
billion for the same period in 2017. Net loss for the nine-month
period ended September 30, 2018, was $37.6 million, or $(0.94) per
diluted share, compared with net income of $14.4 million, or $0.48
per diluted share, for the same period in 2017.
“In addition to our food and ingredients segment delivering
results in line with our expectations, we were successful in
generating a consolidated ethanol crush margin of $32.3 million, or
approximately $0.11 per gallon in a challenging third quarter
environment. Ethanol exports continue on their record pace of 1.6
billion gallons for 2018 and we believe exports should grow again
in 2019,” commented Becker. “The expected approval of E15 next
year, along with strong demand for our products worldwide, should
start to clear the way for a fundamental improvement in the
business going forward. While the current environment remains
challenging, our balance sheet has never been stronger due in part
to the execution of our portfolio optimization plan and our
very strong cash and liquidity position.”
Third Quarter Highlights and Recent
Developments
- On October 25, 2018, the company announced the sale of
Fleischmann’s Vinegar Company for $350 million in cash to Kerry
Group, subject to certain post-closing working capital adjustments.
This transaction is subject to customary closing conditions,
regulatory approvals and contains normal and customary
representations, warranties, and indemnification
obligations.
- On October 8, 2018, the company entered into an asset purchase
agreement with Valero Renewable Fuels Company LLC to sell three of
its ethanol plants, located in Bluffton, Ind., Lakota, Iowa,
and Riga, Mich., for $300 million in cash, plus approximately $22
million of working capital also paid in cash. The transaction
involves 280 million gallons of nameplate capacity, or
approximately 20% of the company’s reported ethanol production
capacity. Correspondingly, the company entered into a separate
asset purchase agreement with Green Plains Partners (the
“partnership”) to acquire the storage and transportation assets and
an assignment of railcar leases associated with the Lakota,
Bluffton and Riga ethanol plants. The company will exchange
approximately 8.9 million units it owns of the partnership, valued
at $120.9 million, for the storage and transportation assets and
railcar leases. In addition, the company and the partnership
agreed, upon closing, to extend the storage and throughput services
agreement an additional three years to June 30, 2028. The quarterly
minimum volume commitment associated with the storage and
throughput services agreement will be 235.7 million gallons or,
approximately 80% of the new Green Plains Inc. annual production
capacity of 1.183 billion gallons. Both transactions are
anticipated to close during the fourth quarter of 2018. These
purchase agreements are subject to customary closing conditions,
regulatory approvals and contain normal and customary
representations, warranties, and indemnification
obligations.
- During the third quarter of 2018, the company extended the
maturity date one year with certain beneficial owners of the
company’s outstanding 3.25% convertible senior notes due 2018
totaling $56.8 million in aggregate principal amount. On October 1,
2018, the remaining aggregate principal of $6.9 million was paid in
cash.
- On August 1, 2018, the company acquired two cattle-feeding
operations from Bartlett Cattle Company, L.P. for $16.2 million,
plus working capital of approximately $106.6 million. The
transaction included the feed yards located in Sublette, Kan. and
Tulia, Texas, which added combined feedlot capacity of 97,000 head
of cattle to the company’s operations, now totaling 355,000
head.
Results of Operations
Green Plains produced 304.8 million gallons of ethanol during
the third quarter of 2018, compared with 313.6 million gallons for
the same period in 2017. The consolidated ethanol crush margin was
$32.3 million, or $0.11 per gallon, for the third quarter of 2018,
compared with $47.3 million, or $0.15 per gallon, for the same
period in 2017. The consolidated ethanol crush margin is the
ethanol production segment’s operating income before depreciation
and amortization, which includes corn oil, plus intercompany
storage, transportation and other fees, net of related
expenses.
Consolidated revenues increased $98.9 million for the third
quarter of 2018, compared with the same period in 2017 as a result
of the acquisitions of cattle feeding operations in 2018 and 2017,
partially offset by a decrease in ethanol production and trading
activity.
Operating income decreased $20.1 million and earnings before
interest, income taxes, depreciation and amortization (EBITDA)
decreased $18.3 million for the third quarter of 2018 compared with
the same period last year primarily due to the compression of
ethanol production margins. Interest expense decreased $8.5 million
for the third quarter of 2018, compared with the same period in
2017, primarily due to higher expense associated with the
termination of previous credit facilities during the third quarter
of 2017. Income tax benefit was $14.7 million for the third quarter
of 2018, compared with $48.8 million for the same period in 2017
due to the company’s recognition of tax benefits related to R&D
Credits during the third quarter of 2017 for all open tax
years.
Segment InformationThe company reports the
financial and operating performance for the following four
operating segments: (1) ethanol production, which includes the
production of ethanol and distillers grains, and recovery of corn
oil, (2) agribusiness and energy services, which includes grain
handling and storage, commodity marketing and merchant trading for
company-produced and third-party ethanol, distillers grains, corn
oil, natural gas and other commodities, (3) food and ingredients,
which includes cattle feeding, vinegar production and food-grade
corn oil operations and (4) partnership, which includes fuel
storage and transportation services. Intercompany fees charged to
the ethanol production segment for storage and logistics services,
grain procurement and product sales are included in the
partnership, and agribusiness and energy services segments and
eliminated upon consolidation. Third party costs of grain consumed
and revenues from product sales are reported directly in the
ethanol production segment.
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| GREEN PLAINS
INC. |
| SEGMENT
OPERATIONS |
| (unaudited, in thousands) |
| |
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Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
|
|
|
2018 |
|
2017 |
|
% Var. |
|
2018 |
|
2017 |
|
% Var. |
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Ethanol production |
|
$ |
576,512 |
|
|
$ |
623,759 |
|
|
(7.6 |
) |
% |
|
$ |
1,735,703 |
|
|
$ |
1,863,980 |
|
|
(6.9 |
) |
% |
| Agribusiness and energy services |
|
|
186,982 |
|
|
|
179,010 |
|
|
4.5 |
|
|
|
|
584,400 |
|
|
|
517,349 |
|
|
13.0 |
|
|
| Food and ingredients |
|
|
251,151 |
|
|
|
114,788 |
|
|
118.8 |
|
|
|
|
755,227 |
|
|
|
329,545 |
|
|
129.2 |
|
|
| Partnership |
|
|
25,770 |
|
|
|
26,449 |
|
|
(2.6 |
) |
|
|
|
77,495 |
|
|
|
78,743 |
|
|
(1.6 |
) |
|
| Intersegment eliminations |
|
|
(40,315 |
) |
|
|
(42,771 |
) |
|
(5.7 |
) |
|
|
|
(120,601 |
) |
|
|
(114,435 |
) |
|
5.4 |
|
|
|
|
|
$ |
1,000,100 |
|
|
$ |
901,235 |
|
|
11.0 |
|
% |
|
$ |
3,032,224 |
|
|
$ |
2,675,182 |
|
|
13.3 |
|
% |
|
Gross margin: |
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|
|
|
|
|
|
|
|
|
|
|
|
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| Ethanol production |
|
$ |
15,793 |
|
|
$ |
32,855 |
|
|
(51.9 |
) |
% |
|
$ |
28,812 |
|
|
$ |
61,292 |
|
|
(53.0 |
) |
% |
| Agribusiness and energy services |
|
|
7,550 |
|
|
|
10,275 |
|
|
(26.5 |
) |
|
|
|
38,082 |
|
|
|
30,110 |
|
|
26.5 |
|
|
| Food and ingredients |
|
|
15,001 |
|
|
|
15,934 |
|
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(5.9 |
) |
|
|
|
52,872 |
|
|
|
47,647 |
|
|
11.0 |
|
|
| Partnership |
|
|
25,770 |
|
|
|
26,449 |
|
|
(2.6 |
) |
|
|
|
77,495 |
|
|
|
78,743 |
|
|
(1.6 |
) |
|
| Intersegment eliminations |
|
|
(398 |
) |
|
|
(65 |
) |
|
512.3 |
|
|
|
|
(381 |
) |
|
|
(312 |
) |
|
22.1 |
|
|
|
|
|
$ |
63,716 |
|
|
$ |
85,448 |
|
|
(25.4 |
) |
% |
|
$ |
196,880 |
|
|
$ |
217,480 |
|
|
(9.5 |
) |
% |
|
Depreciation and amortization: |
|
|
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|
|
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|
|
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|
|
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|
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| Ethanol production |
|
$ |
24,289 |
|
|
$ |
20,959 |
|
|
15.9 |
|
% |
|
$ |
65,284 |
|
|
$ |
61,443 |
|
|
6.3 |
|
% |
| Agribusiness and energy services |
|
|
675 |
|
|
|
1,457 |
|
|
(53.7 |
) |
|
|
|
1,923 |
|
|
|
2,776 |
|
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(30.7 |
) |
|
| Food and ingredients |
|
|
3,780 |
|
|
|
3,139 |
|
|
20.4 |
|
|
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|
10,628 |
|
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|
9,259 |
|
|
14.8 |
|
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| Partnership |
|
|
1,120 |
|
|
|
1,280 |
|
|
(12.5 |
) |
|
|
|
3,406 |
|
|
|
3,781 |
|
|
(9.9 |
) |
|
| Corporate activities |
|
|
849 |
|
|
|
999 |
|
|
(15.0 |
) |
|
|
|
2,769 |
|
|
|
2,846 |
|
|
(2.7 |
) |
|
|
|
|
$ |
30,713 |
|
|
$ |
27,834 |
|
|
10.3 |
|
% |
|
$ |
84,010 |
|
|
$ |
80,105 |
|
|
4.9 |
|
% |
|
Operating income (loss): |
|
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Ethanol production |
|
$ |
(15,961 |
) |
|
$ |
3,107 |
|
|
* |
|
% |
|
$ |
(60,704 |
) |
|
$ |
(25,950 |
) |
|
(133.9 |
) |
% |
| Agribusiness and energy services |
|
|
2,851 |
|
|
|
3,686 |
|
|
(22.7 |
) |
|
|
|
22,081 |
|
|
|
13,138 |
|
|
68.1 |
|
|
| Food and ingredients |
|
|
8,324 |
|
|
|
10,132 |
|
|
(17.8 |
) |
|
|
|
33,890 |
|
|
|
30,472 |
|
|
11.2 |
|
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| Partnership |
|
|
16,725 |
|
|
|
16,290 |
|
|
2.7 |
|
|
|
|
48,214 |
|
|
|
47,707 |
|
|
1.1 |
|
|
| Intersegment eliminations |
|
|
(325 |
) |
|
|
8 |
|
|
* |
|
|
|
|
(113 |
) |
|
|
(147 |
) |
|
23.1 |
|
|
| Corporate activities |
|
|
(10,965 |
) |
|
|
(12,507 |
) |
|
12.3 |
|
|
|
|
(34,879 |
) |
|
|
(30,898 |
) |
|
(12.9 |
) |
|
|
|
|
$ |
649 |
|
|
$ |
20,716 |
|
|
(96.9 |
) |
% |
|
$ |
8,489 |
|
|
$ |
34,322 |
|
|
(75.3 |
) |
% |
|
EBITDA: |
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|
|
|
| Ethanol production |
|
$ |
8,475 |
|
|
$ |
25,570 |
|
|
(66.9 |
) |
% |
|
$ |
4,742 |
|
|
$ |
38,521 |
|
|
(87.7 |
) |
% |
| Agribusiness and energy services |
|
|
3,537 |
|
|
|
5,150 |
|
|
(31.3 |
) |
|
|
|
24,035 |
|
|
|
15,910 |
|
|
51.1 |
|
|
| Food and ingredients |
|
|
12,151 |
|
|
|
13,272 |
|
|
(8.4 |
) |
|
|
|
47,192 |
|
|
|
39,741 |
|
|
18.7 |
|
|
| Partnership |
|
|
17,913 |
|
|
|
17,589 |
|
|
1.8 |
|
|
|
|
51,674 |
|
|
|
51,549 |
|
|
0.2 |
|
|
| Intersegment eliminations |
|
|
(325 |
) |
|
|
8 |
|
|
* |
|
|
|
|
(113 |
) |
|
|
(147 |
) |
|
23.1 |
|
|
| Corporate activities |
|
|
(9,716 |
) |
|
|
(11,212 |
) |
|
13.3 |
|
|
|
|
(30,533 |
) |
|
|
(27,275 |
) |
|
(11.9 |
) |
|
|
|
|
$ |
32,035 |
|
|
$ |
50,377 |
|
|
(36.4 |
) |
% |
|
$ |
96,997 |
|
|
$ |
118,299 |
|
|
(18.0 |
) |
% |
|
|
|
|
|
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| * Percentage variance not considered
meaningful. |
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| GREEN PLAINS
INC. |
| SELECTED OPERATING
DATA |
| (unaudited, in thousands) |
| |
|
|
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|
|
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|
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|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
|
|
|
2018 |
|
2017 |
|
% Var. |
|
2018 |
|
2017 |
|
% Var. |
|
Ethanol production |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Ethanol (gallons) |
|
304,826 |
|
313,642 |
|
(2.8 |
) |
% |
|
881,518 |
|
915,607 |
|
(3.7 |
) |
% |
| Distillers grains (equivalent dried tons) |
|
811 |
|
817 |
|
(0.7 |
) |
|
|
2,279 |
|
2,421 |
|
(5.9 |
) |
|
| Corn oil (pounds) |
|
78,304 |
|
75,440 |
|
3.8 |
|
|
|
222,994 |
|
216,482 |
|
3.0 |
|
|
| Corn consumed (bushels) |
|
105,965 |
|
109,544 |
|
(3.3 |
) |
|
|
306,395 |
|
318,709 |
|
(3.9 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Agribusiness and energy services |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Domestic ethanol sold (gallons) |
|
317,708 |
|
345,038 |
|
(7.9 |
) |
|
|
913,068 |
|
982,946 |
|
(7.1 |
) |
|
| Export ethanol sold (gallons) |
|
23,476 |
|
34,773 |
|
(32.5 |
) |
|
|
162,295 |
|
137,412 |
|
18.1 |
|
|
|
|
|
341,184 |
|
379,811 |
|
(10.2 |
) |
|
|
1,075,363 |
|
1,120,358 |
|
(4.0 |
) |
|
|
Food and ingredients |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cattle sold (head) |
|
147 |
|
48 |
|
206.3 |
|
|
|
402 |
|
128 |
|
214.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Partnership |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Storage and throughput (gallons) |
|
314,061 |
|
308,316 |
|
1.9 |
|
|
|
926,671 |
|
913,894 |
|
1.4 |
|
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| |
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| |
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| GREEN PLAINS
INC. |
| CONSOLIDATED CRUSH
MARGIN |
| (unaudited, in thousands except
per gallon amounts) |
| |
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|
|
|
|
|
|
|
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| |
|
Three Months Ended
September 30, |
|
Three Months Ended
September 30, |
|
|
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
|
|
|
|
($ per gallon produced) |
|
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|
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|
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|
|
| Ethanol production
operating income (loss) |
|
$ |
(15,961 |
) |
|
$ |
3,107 |
|
$ |
(0.05 |
) |
|
$ |
0.01 |
| Depreciation and amortization |
|
|
24,289 |
|
|
|
20,959 |
|
|
0.08 |
|
|
|
0.07 |
| Total ethanol production |
|
|
8,328 |
|
|
|
24,066 |
|
|
0.03 |
|
|
|
0.08 |
|
|
|
|
|
|
|
|
|
|
|
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|
Intercompany fees, net: |
|
|
|
|
|
|
|
|
|
|
|
|
| Storage and logistics (partnership) |
|
|
16,647 |
|
|
|
16,205 |
|
|
0.06 |
|
|
|
0.05 |
| Marketing and agribusiness fees (agribusiness and
energy services) |
|
|
7,372 |
|
|
|
7,047 |
|
|
0.02 |
|
|
|
0.02 |
| Consolidated ethanol crush margin |
|
$ |
32,347 |
|
|
$ |
47,318 |
|
$ |
0.11 |
|
|
$ |
0.15 |
Liquidity and Capital ResourcesOn September 30,
2018, Green Plains had $234.5 million in total cash, cash
equivalents and restricted cash, and $491.6 million available under
revolving credit agreements, some of which are subject to
restrictions and other lending conditions. Total debt outstanding
at September 30, 2018, was $1,389.4 million, including $556.6
million outstanding under working capital revolvers and other
short-term borrowing arrangements for the agribusiness and energy
services, and food and ingredients segments and $136.0 million of
debt related to Green Plains Partners.
Conference Call InformationGreen Plains Inc.
and Green Plains Partners LP will host a joint conference call
Thursday Nov. 8th at 11 a.m. Eastern time (10 a.m. Central time),
to discuss third quarter 2018 financial and operating results for
each company. Domestic and international participants can access
the conference call by dialing 877.711.2374 and 281.542.4862,
respectively, and referencing conference ID 1476588. The company
advises participants to call at least 10 minutes prior to the start
time. Alternatively, the conference call, transcript and
presentation will be accessible on Green Plains’ website at
http://investor.gpreinc.com/events.cfm.
Non-GAAP Financial MeasuresManagement uses
earnings before interest, income taxes, depreciation and
amortization, or EBITDA, segment EBITDA and consolidated ethanol
crush margins 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 alternatives to net income or segment operating income,
which are determined in accordance with generally accepted
accounting principles (GAAP). These non-GAAP calculations may vary
from company to company. Accordingly, the company’s computation of
EBITDA, segment EBITDA and consolidated ethanol crush margins may
not be comparable with similarly titled measures of another
company.
To supplement our condensed consolidated statements of
operations presented in accordance with GAAP, the company has
provided non-GAAP adjusted financial measures of operating results
that excludes certain items. Basic and diluted earnings per share
attributable to Green Plains are presented in the Reconciliation to
Non-GAAP Adjusted Financial Measures as reported on a GAAP and
non-GAAP basis related to the impact of the expenses for
refinancing and expanding the company's term loan and net R&D
tax credits related to qualifying activities during fiscal year
2017. Management believes including these additional measures may
enhance the investor's overall understanding of the company's
ongoing operations. These measures should not be considered
alternatives to net income or segment operating income, which are
determined in accordance with GAAP.
About Green Plains Inc.Green Plains Inc.
(NASDAQ:GPRE) is a diversified commodity-processing business with
operations related to ethanol production, grain handling and
storage, cattle feeding, food ingredients, and commodity marketing
and logistics services. The company is one of the leading producers
of ethanol in the world and, through its adjacent businesses, is
focused on the production of high-protein feed ingredients and
export growth opportunities. Green Plains owns a 62.4% 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 LPGreen 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 StatementsThis news release
includes forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995, as amended.
Forward-looking statements reflect management’s current views,
which are subject to risks and uncertainties including, but not
limited to, anticipated financial and operating results, plans and
objectives that are not historical in nature. These statements may
be identified by words such as “believe,” “expect,” “may,”
“should,” “will” and similar expressions. Factors that could cause
actual results to differ materially from those expressed or implied
include: competition in the industries in which Green Plains
operates; commodity market risks, financial market risks;
counterparty risks; risks associated with changes to federal policy
or regulation, including changes to tax laws; risks related to
closing and achieving anticipated results from acquisitions. Other
factors can include risks associated with the Green Plains’ ability
to successfully complete the sale of assets related to the
company’s announced portfolio optimization plan and other risks
discussed in Green Plains’ reports filed with the Securities and
Exchange Commission. Investors are cautioned not to place undue
reliance on forward-looking statements, which speak only as of the
date of this news release. Green Plains assumes no obligation to
update any such forward-looking statements, except as required by
law.
Consolidated Financial Results
| |
|
|
|
|
|
|
| GREEN PLAINS
INC. |
| CONDENSED CONSOLIDATED
BALANCE SHEETS |
| (in thousands) |
| |
|
|
|
|
|
|
|
|
|
September 30,
2018 |
|
December 31,
2017 |
|
|
|
(unaudited) |
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
| Cash and cash equivalents |
|
$ |
171,674 |
|
$ |
266,651 |
| Restricted cash |
|
|
62,797 |
|
|
45,709 |
| Accounts receivable, net |
|
|
134,950 |
|
|
151,122 |
| Income tax receivable |
|
|
13,211 |
|
|
6,413 |
| Inventories |
|
|
765,198 |
|
|
711,878 |
| Other current assets |
|
|
39,783 |
|
|
24,698 |
| Total current assets |
|
|
1,187,613 |
|
|
1,206,471 |
|
Property and equipment, net |
|
|
1,143,551 |
|
|
1,176,707 |
|
Other assets |
|
|
353,670 |
|
|
401,472 |
| Total assets |
|
$ |
2,684,834 |
|
$ |
2,784,650 |
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
| Accounts payable |
|
$ |
155,663 |
|
$ |
205,479 |
| Accrued and other liabilities |
|
|
47,955 |
|
|
63,886 |
| Derivative financial instruments |
|
|
41,725 |
|
|
12,884 |
| Income taxes payable |
|
|
- |
|
|
9,909 |
| Short-term notes payable and other borrowings |
|
|
556,566 |
|
|
526,180 |
| Current maturities of long-term debt |
|
|
65,614 |
|
|
67,923 |
| Total current liabilities |
|
|
867,523 |
|
|
886,261 |
|
Long-term debt |
|
|
767,177 |
|
|
767,396 |
|
Deferred income taxes |
|
|
21,764 |
|
|
56,801 |
|
Other liabilities |
|
|
14,235 |
|
|
15,056 |
| Total liabilities |
|
|
1,670,699 |
|
|
1,725,514 |
|
|
|
|
|
|
|
|
|
Stockholders' equity |
|
|
|
|
|
|
| Total Green Plains stockholders' equity |
|
|
898,913 |
|
|
942,182 |
| Noncontrolling interests |
|
|
115,222 |
|
|
116,954 |
| Total liabilities and stockholders' equity |
|
$ |
2,684,834 |
|
$ |
2,784,650 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| GREEN PLAINS
INC. |
| CONSOLIDATED STATEMENTS
OF OPERATIONS |
| (unaudited, in thousands except
per share amounts) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
|
|
2018 |
|
2017 |
|
% Var. |
|
2018 |
|
2017 |
|
% Var. |
|
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Product |
$ |
998,802 |
|
|
$ |
899,534 |
|
|
11.0 |
% |
|
$ |
3,027,678 |
|
|
$ |
2,670,458 |
|
|
13.4 |
% |
| Services |
|
1,298 |
|
|
|
1,701 |
|
|
(23.7) |
|
|
|
4,546 |
|
|
|
4,724 |
|
|
(3.8) |
|
| Total revenues |
|
1,000,100 |
|
|
|
901,235 |
|
|
11.0 |
|
|
|
3,032,224 |
|
|
|
2,675,182 |
|
|
13.3 |
|
|
Costs and expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cost of goods sold (excluding depreciation and
amortization expenses reflected below) |
|
936,384 |
|
|
|
815,787 |
|
|
14.8 |
|
|
|
2,835,344 |
|
|
|
2,457,702 |
|
|
15.4 |
|
| Operations and maintenance |
|
7,271 |
|
|
|
8,309 |
|
|
(12.5) |
|
|
|
23,564 |
|
|
|
25,107 |
|
|
(6.1) |
|
| Selling, general and administrative |
|
25,083 |
|
|
|
28,589 |
|
|
(12.3) |
|
|
|
80,817 |
|
|
|
77,946 |
|
|
3.7 |
|
| Depreciation and amortization |
|
30,713 |
|
|
|
27,834 |
|
|
10.3 |
|
|
|
84,010 |
|
|
|
80,105 |
|
|
4.9 |
|
| Total costs and expenses |
|
999,451 |
|
|
|
880,519 |
|
|
13.5 |
|
|
|
3,023,735 |
|
|
|
2,640,860 |
|
|
14.5 |
|
| Operating income |
|
649 |
|
|
|
20,716 |
|
|
(96.9) |
|
|
|
8,489 |
|
|
|
34,322 |
|
|
(75.3) |
|
|
Other income (expense) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest income |
|
790 |
|
|
|
383 |
|
|
106.3 |
|
|
|
2,136 |
|
|
|
1,061 |
|
|
101.3 |
|
| Interest expense |
|
(23,399 |
) |
|
|
(31,889 |
) |
|
26.6 |
|
|
|
(67,548 |
) |
|
|
(69,815 |
) |
|
3.2 |
|
| Other, net |
|
(117 |
) |
|
|
1,444 |
|
|
* |
|
|
|
2,362 |
|
|
|
2,811 |
|
|
(16.0) |
|
| Total other expense |
|
(22,726 |
) |
|
|
(30,062 |
) |
|
(24.4) |
|
|
|
(63,050 |
) |
|
|
(65,943 |
) |
|
(4.4) |
|
|
Loss before income taxes |
|
(22,077 |
) |
|
|
(9,346 |
) |
|
(136.2) |
|
|
|
(54,561 |
) |
|
|
(31,621 |
) |
|
(72.5) |
|
|
Income tax benefit |
|
14,658 |
|
|
|
48,775 |
|
|
(69.9) |
|
|
|
31,438 |
|
|
|
60,905 |
|
|
(48.4) |
|
|
Net income (loss) |
|
(7,419 |
) |
|
|
39,429 |
|
|
* |
|
|
|
(23,123 |
) |
|
|
29,284 |
|
|
* |
|
|
Net income attributable to noncontrolling interest |
|
5,050 |
|
|
|
5,035 |
|
|
0.3 |
|
|
|
14,457 |
|
|
|
14,853 |
|
|
(2.7) |
|
|
Net income (loss) attributable to Green Plains |
$ |
(12,469 |
) |
|
$ |
34,394 |
|
|
* |
% |
|
$ |
(37,580 |
) |
|
$ |
14,431 |
|
|
* |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income (loss) attributable to Green Plains -
basic |
$ |
(0.31 |
) |
|
$ |
0.83 |
|
|
|
|
|
$ |
(0.94 |
) |
|
$ |
0.36 |
|
|
|
|
| Net Income (loss) attributable to Green Plains -
diluted |
$ |
(0.31 |
) |
|
$ |
0.74 |
|
|
|
|
|
$ |
(0.94 |
) |
|
$ |
0.48 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Basic |
|
40,229 |
|
|
|
41,348 |
|
|
|
|
|
|
40,189 |
|
|
|
40,008 |
|
|
|
|
| Diluted |
|
40,229 |
|
|
|
50,647 |
|
|
|
|
|
|
40,189 |
|
|
|
50,693 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| GREEN PLAINS
INC. |
| CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS |
| (unaudited, in thousands) |
| |
|
|
|
|
|
|
|
|
|
Nine Months Ended
September 30, |
|
|
|
2018 |
|
2017 |
|
Cash flows from operating activities: |
|
|
|
|
|
|
| Net loss |
|
$ |
(23,123 |
) |
|
$ |
29,284 |
|
| Noncash operating adjustments: |
|
|
|
|
|
|
| Depreciation and amortization |
|
|
84,010 |
|
|
|
80,105 |
|
| Deferred income taxes |
|
|
(37,980 |
) |
|
|
(88,565 |
) |
| Other |
|
|
17,815 |
|
|
|
46,477 |
|
| Net change in working capital |
|
|
43,666 |
|
|
|
(181,536 |
) |
| Net cash provided by (used in) operating
activities |
|
|
84,388 |
|
|
|
(114,235 |
) |
|
|
|
|
|
|
|
|
|
Cash flows from investing activities: |
|
|
|
|
|
|
| Purchases of property and equipment, net |
|
|
(31,114 |
) |
|
|
(36,475 |
) |
| Acquisition of businesses, net of cash
acquired |
|
|
(124,407 |
) |
|
|
(61,727 |
) |
| Investments in unconsolidated subsidiaries |
|
|
(2,446 |
) |
|
|
(12,033 |
) |
| Other investing activities |
|
|
7,500 |
|
|
|
- |
|
| Net cash used in investing activities |
|
|
(150,467 |
) |
|
|
(110,235 |
) |
|
|
|
|
|
|
|
|
|
Cash flows from financing activities: |
|
|
|
|
|
|
| Net proceeds (payments) - long-term debt |
|
|
(3,837 |
) |
|
|
64,050 |
|
| Net proceeds - short-term borrowings |
|
|
29,974 |
|
|
|
166,283 |
|
| Other |
|
|
(37,947 |
) |
|
|
(66,000 |
) |
| Net cash provided by (used in) financing
activities |
|
|
(11,810 |
) |
|
|
164,333 |
|
|
|
|
|
|
|
|
|
|
Net change in cash, cash equivalents and restricted cash |
|
|
(77,889 |
) |
|
|
(60,137 |
) |
|
Cash, cash equivalents and restricted cash, beginning of
period |
|
|
312,360 |
|
|
|
406,791 |
|
|
Cash, cash equivalents and restricted cash, end of period |
|
$ |
234,471 |
|
|
$ |
346,654 |
|
| |
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
September 30, |
|
|
|
|
2018 |
|
2017 |
|
|
|
|
|
|
|
|
|
Reconciliation of total cash, cash equivalents and restricted
cash: |
|
|
|
|
|
|
| Cash and cash equivalents |
|
$ |
171,674 |
|
$ |
261,588 |
| Restricted cash |
|
|
62,797 |
|
|
85,066 |
|
Total cash, cash equivalents and restricted cash |
|
$ |
234,471 |
|
$ |
346,654 |
| GREEN PLAINS
INC. |
| RECONCILIATIONS TO
NON-GAAP FINANCIAL MEASURES |
| (unaudited, in thousands) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
|
|
|
2018 |
|
2017 |
|
2018 |
|
2017 |
| Net income (loss) |
|
$ |
(7,419 |
) |
|
$ |
39,429 |
|
|
$ |
(23,123 |
) |
|
$ |
29,284 |
|
| Interest expense |
|
|
23,399 |
|
|
|
31,889 |
|
|
|
67,548 |
|
|
|
69,815 |
|
| Income tax benefit |
|
|
(14,658 |
) |
|
|
(48,775 |
) |
|
|
(31,438 |
) |
|
|
(60,905 |
) |
| Depreciation and amortization |
|
|
30,713 |
|
|
|
27,834 |
|
|
|
84,010 |
|
|
|
80,105 |
|
|
EBITDA |
|
$ |
32,035 |
|
|
$ |
50,377 |
|
|
$ |
96,997 |
|
|
$ |
118,299 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| GREEN PLAINS
INC. |
| RECONCILIATIONS TO
NON-GAAP ADJUSTED FINANCIAL MEASURES |
| (unaudited, in thousands except
for per share amounts) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30, 2018 |
|
Three Months Ended
September 30, 2017 |
|
|
|
GAAP Basis as
Reported |
|
GAAP Basis as
Reported |
|
Non-GAAPAdjustmentTax
Credit &Interest Exp. |
|
Non-GAAP Basis as
Adjusted |
|
Basic EPS: |
|
|
|
|
|
|
|
|
|
|
|
|
| Net income (loss)
attributable to Green Plains |
|
$ |
(12,469 |
) |
|
$ |
34,394 |
|
$ |
(41,816 |
) |
|
$ |
(7,422 |
) |
| Weighted average shares outstanding - basic |
|
|
40,229 |
|
|
|
41,348 |
|
|
- |
|
|
|
41,348 |
|
| Earnings (loss) per share attributable to Green
Plains - basic |
|
$ |
(0.31 |
) |
|
$ |
0.83 |
|
$ |
(1.01 |
) |
|
$ |
(0.18 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted EPS: |
|
|
|
|
|
|
|
|
|
|
|
|
| Net income (loss) attributable to Green Plains |
|
$ |
(12,469 |
) |
|
$ |
34,394 |
|
$ |
(41,816 |
) |
|
$ |
(7,422 |
) |
| Interest and amortization on convertible debt, net
of tax |
|
|
|
|
|
|
|
|
|
|
|
|
| 3.25% convertible senior notes due 2018 |
|
|
- |
|
|
|
840 |
|
|
(840 |
) |
|
|
- |
|
| 4.125% convertible senior notes due 2022 |
|
|
- |
|
|
|
2,050 |
|
|
(2,050 |
) |
|
|
- |
|
| Net income (loss) attributable to Green Plains -
diluted |
|
$ |
(12,469 |
) |
|
$ |
37,284 |
|
$ |
(44,706 |
) |
|
$ |
(7,422 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding - basic |
|
|
40,229 |
|
|
|
41,348 |
|
|
- |
|
|
|
41,348 |
|
| Effect of dilutive 3.25% convertible senior notes
due 2018 |
|
|
- |
|
|
|
3,178 |
|
|
(3,178 |
) |
|
|
- |
|
| Effect of dilutive 4.125% convertible senior notes
due 2022 |
|
|
- |
|
|
|
6,071 |
|
|
(6,071 |
) |
|
|
- |
|
| Effect of dilutive stock compensation awards |
|
|
- |
|
|
|
50 |
|
|
(50 |
) |
|
|
- |
|
| Total potential shares outstanding |
|
|
40,229 |
|
|
|
50,647 |
|
|
(9,299 |
) |
|
|
41,348 |
|
|
Earnings (loss) per share attributable to Green Plains -
diluted |
|
$ |
(0.31 |
) |
|
$ |
0.74 |
|
$ |
(0.92 |
) |
|
$ |
(0.18 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
September 30, 2018 |
|
Nine Months Ended
September 30, 2017 |
|
|
|
GAAP Basis as
Reported |
|
GAAP Basis as
Reported |
|
Non-GAAPAdjustmentTax
Credit &Interest Exp. |
|
Non-GAAP Basis as
Adjusted |
|
Basic EPS: |
|
|
|
|
|
|
|
|
|
|
|
|
| Net income (loss) attributable to Green Plains |
|
$ |
(37,580 |
) |
|
$ |
14,431 |
|
$ |
(41,816 |
) |
|
$ |
(27,385 |
) |
| Weighted average shares outstanding - basic |
|
|
40,189 |
|
|
|
40,008 |
|
|
- |
|
|
|
40,008 |
|
| Earnings (loss) per share attributable to Green
Plains - basic |
|
$ |
(0.94 |
) |
|
$ |
0.36 |
|
$ |
(1.04 |
) |
|
$ |
(0.68 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted EPS: |
|
|
|
|
|
|
|
|
|
|
|
|
| Net income (loss) attributable to Green Plains |
|
$ |
(37,580 |
) |
|
$ |
14,431 |
|
$ |
(41,816 |
) |
|
$ |
(27,385 |
) |
| Interest and amortization on convertible debt, net
of tax |
|
|
|
|
|
|
|
|
|
|
|
|
| 3.25% convertible senior notes due 2018 |
|
|
- |
|
|
|
3,582 |
|
|
(3,582 |
) |
|
|
- |
|
| 4.125% convertible senior notes due 2022 |
|
|
- |
|
|
|
6,089 |
|
|
(6,089 |
) |
|
|
- |
|
| Net income (loss) attributable to Green Plains -
diluted |
|
$ |
(37,580 |
) |
|
$ |
24,102 |
|
$ |
(51,487 |
) |
|
$ |
(27,385 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding - basic |
|
|
40,189 |
|
|
|
40,008 |
|
|
- |
|
|
|
40,008 |
|
| Effect of dilutive 3.25% convertible senior notes
due 2018 |
|
|
- |
|
|
|
4,551 |
|
|
(4,551 |
) |
|
|
- |
|
| Effect of dilutive 4.125% convertible senior notes
due 2022 |
|
|
- |
|
|
|
6,071 |
|
|
(6,071 |
) |
|
|
- |
|
| Effect of dilutive stock compensation awards |
|
|
- |
|
|
|
63 |
|
|
(63 |
) |
|
|
- |
|
| Total potential shares outstanding |
|
|
40,189 |
|
|
|
50,693 |
|
|
(10,685 |
) |
|
|
40,008 |
|
|
Earnings (loss) per share attributable to Green Plains -
diluted |
|
$ |
(0.94 |
) |
|
$ |
0.48 |
|
$ |
(1.16 |
) |
|
$ |
(0.68 |
) |
Contact: Jim Stark | Vice President, Investor
& Media Relations | 402.884.8700 | jim.stark@gpreinc.com
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