Results for the Fourth Quarter of 2018
Green Plains Inc. (NASDAQ:GPRE) today announced financial results
for the fourth quarter of 2018. Net income attributable to the
company was $53.5 million, or $1.13 per diluted share, for the
fourth quarter of 2018 compared to net income of $46.6 million, or
$0.99 per diluted share, for the same period in 2017. Revenues were
$827.5 million for the fourth quarter of 2018 compared with $921.0
million for the same period last year. Net income during the
quarter was impacted by the gain on the sale of certain assets of
$150.4 million, offset by $13.2 million of deferred debt issuance
costs written off as a result of the term loan B pay-off, and $3.4
million of severance expense, yielding a $133.8 million positive
benefit before tax.
Revenues attributable to the company were $3.9 billion for the
year ended 2018, compared with $3.6 billion for the same period in
2017. Net income attributable to the company for the year ended
2018, was $15.9 million, or $0.39 per diluted share, compared with
net income of $61.1 million, or $1.47 per diluted share, for the
same period in 2017.
“Our cash position and balance sheet remain solid even as the
ethanol industry margin environment has been under pressure for an
extended period of time,” stated Todd Becker, president and chief
executive officer. “We executed on each component of the portfolio
optimization plan during the quarter by proving value of our assets
through the sale of certain ethanol plants and the vinegar business
as well as paying off our term loan B which achieved the milestone
of having no direct encumbered ethanol assets for the first time in
the company’s history. We also achieved a nearly $19 million
forward run-rate reduction in annualized controllable expenses, we
executed a small share repurchase and continued construction on our
first high-protein technology project in Shenandoah. We continue to
carry out the portfolio optimization plan, as we look to divest
additional assets and focus on capital allocation in the
future.”
“We remain confident that E15 will be implemented by
the Administration for the upcoming summer driving season and
exports could get a boost from the U.S. and China resolving the
trade issue between the two countries,” commented Becker. “The
ethanol industry needs demand growth, and both of these initiatives
could reduce inventories allowing for a return to a better margin
structure for the industry over the next several months. In
addition, we are encouraged by the recently reported reduction of
industry run rates and inventory levels not much above last
year. We believe that lower overall retail gasoline prices
have kept demand for our products high. Finally, we believe the
addition of high-protein feed co-products over the next several
years will transform our company by improving profitability,”
Becker added.
Full Year Highlights
- On May 7, 2018, Green Plains announced its portfolio
optimization plan in which it would divest assets that do not
support the company’s strategic focus on the production of
high-protein feed ingredients and ethanol exports to significantly
reduce or eliminate the company’s term debt and invest in
high-protein process technology at certain ethanol facilities. The
plan’s five strategic objectives include:
- Prove value of Green Plains’ assets for our shareholders
through strategic divestments;
- Significantly reduce or eliminate term debt by the end of 2018
with sale proceeds;
- Invest in high-protein process technology at the Shenandoah,
Iowa ethanol facility with other locations to follow;
- Repurchase shares with remaining proceeds and free cash flow
when market conditions are optimal; and
- Reduce controllable expenses $10 to $15 million on an annual
run rate basis, starting in the third quarter of 2018.
- On July 31, 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.
- During the third quarter of 2018, the company extended the
maturity date for one year to October 1, 2019 with certain
beneficial owners of $56.8 million of the company’s outstanding
3.25% convertible senior notes due 2018. On October 1, 2018,
the remaining aggregate principal of $6.9 million not extended was
paid in cash.
- On November 15, 2018, the company announced the completion of
the sale of three ethanol plants to Valero Renewable Fuels Company,
LLC for $319.8 million in cash, including preliminary net working
capital and other adjustments. The transaction included ethanol
plants located in Bluffton, Ind., Lakota, Iowa, and Riga, Mich.
which represented approximately 20% of the company’s reported
ethanol production capacity. Also, the company announced the
permanent closure of the Hopewell, VA ethanol facility.
- On November, 28, 2018, the company announced the completion of
the sale of the Fleischmann’s Vinegar Company, Inc. for $353.9
million in cash and restricted cash including preliminary net
working capital and other adjustments.
- On November 28, 2018, the company announced that it repaid its
entire obligation for the $500 million senior secured term loan due
2023. As a result, all of the company’s assets and subsidiaries,
not including Green Plains Partners LP (NASDAQ:GPP), are
unencumbered from term debt.
- On December 12, 2018, the company announced the formation of
Optimal Aquafeed, a 50/50 joint venture to produce high-quality
aquaculture feeds utilizing proprietary techniques and high-protein
feed ingredients. The joint venture brings together Green Plains’
production capabilities, commodity expertise, and infrastructure
and combines that with Optimal Fish Food’s intellectual property,
industry expertise and customer relationships.
- During the fourth quarter of 2018, we repurchased 209,682
common shares at an average price of $14.18. Approximately $80.3
million remains available from the $100 million stock repurchase
program announced in August of 2014.
Results of Operations
Green Plains produced 205.1 million gallons of ethanol during
the fourth quarter of 2018, compared with 340.8 million gallons for
the same period in 2017. The consolidated ethanol crush margin was
$(16.8) million, or $(0.08) per gallon, for the fourth quarter of
2018, compared with $26.8 million, or $0.08 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 decreased $93.5 million for the fourth
quarter of 2018, compared with the same period in 2017, as a result
of the divestiture of the three ethanol plants and a decrease in
ethanol production.
Operating income increased $99.8 million and earnings before
interest, income taxes, depreciation and amortization (EBITDA)
increased $91.6 million for the fourth quarter of 2018 compared
with the same period last year primarily due to the $150.4 million
gain on the sale of assets during the fourth quarter. Interest
expense increased $13.1 million for the fourth quarter of 2018,
compared with the same period in 2017, primarily due to the $13.2
million write-off of deferred debt issuance costs related to
repayment of the $500 million senior secured term loan due 2023.
Income tax expense was $14.7 million for the fourth quarter of 2018
due to the company’s realized gain on the sale of assets mentioned
above, versus a $63.9 million benefit for the same period in 2017
driven by the recognition of a revaluation of deferred tax
liabilities.
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 and food-grade corn oil operations
and included vinegar production until the sale of Fleischmann’s
Vinegar Company, Inc. during the fourth quarter of 2018 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) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
|
|
2018 |
|
|
2017 |
|
|
% Var. |
|
2018 |
|
|
2017 |
|
|
% Var. |
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ethanol production |
|
$ |
384,958 |
|
|
$ |
643,693 |
|
|
(40.2 |
) |
% |
|
$ |
2,120,661 |
|
|
$ |
2,507,673 |
|
|
(15.4 |
) |
% |
Agribusiness and energy services |
|
|
200,955 |
|
|
|
151,412 |
|
|
32.7 |
|
|
|
|
785,355 |
|
|
|
668,761 |
|
|
17.4 |
|
|
Food and
ingredients |
|
|
249,966 |
|
|
|
142,236 |
|
|
75.7 |
|
|
|
|
1,005,193 |
|
|
|
471,781 |
|
|
113.1 |
|
|
Partnership |
|
|
23,253 |
|
|
|
28,250 |
|
|
(17.7 |
) |
|
|
|
100,748 |
|
|
|
106,993 |
|
|
(5.8 |
) |
|
Intersegment eliminations |
|
|
(31,604 |
) |
|
|
(44,607 |
) |
|
(29.2 |
) |
|
|
|
(152,205 |
) |
|
|
(159,042 |
) |
|
(4.3 |
) |
|
|
|
$ |
827,528 |
|
|
$ |
920,984 |
|
|
(10.1 |
) |
% |
|
$ |
3,859,752 |
|
|
$ |
3,596,166 |
|
|
7.3 |
|
% |
Gross margin: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ethanol
production |
|
$ |
(26,938 |
) |
|
$ |
12,380 |
|
|
* |
|
% |
|
$ |
1,874 |
|
|
$ |
73,672 |
|
|
(97.5 |
) |
% |
Agribusiness and energy services |
|
|
13,102 |
|
|
|
24,069 |
|
|
(45.6 |
) |
|
|
|
51,184 |
|
|
|
54,179 |
|
|
(5.5 |
) |
|
Food and
ingredients |
|
|
12,483 |
|
|
|
12,353 |
|
|
1.1 |
|
|
|
|
65,355 |
|
|
|
60,000 |
|
|
8.9 |
|
|
Partnership |
|
|
23,253 |
|
|
|
28,250 |
|
|
(17.7 |
) |
|
|
|
100,748 |
|
|
|
106,993 |
|
|
(5.8 |
) |
|
Intersegment eliminations |
|
|
(3,060 |
) |
|
|
47 |
|
|
* |
|
|
|
|
(3,441 |
) |
|
|
(265 |
) |
|
* |
|
|
|
|
$ |
18,840 |
|
|
$ |
77,099 |
|
|
(75.6 |
) |
% |
|
$ |
215,720 |
|
|
$ |
294,579 |
|
|
(26.8 |
) |
% |
Depreciation and
amortization: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ethanol
production |
|
$ |
14,943 |
|
|
$ |
20,544 |
|
|
(27.3 |
) |
% |
|
$ |
80,227 |
|
|
$ |
81,987 |
|
|
(2.1 |
) |
% |
Agribusiness and energy services |
|
|
547 |
|
|
|
686 |
|
|
(20.3 |
) |
|
|
|
2,470 |
|
|
|
3,462 |
|
|
(28.7 |
) |
|
Food and
ingredients |
|
|
2,286 |
|
|
|
3,844 |
|
|
(40.5 |
) |
|
|
|
12,914 |
|
|
|
13,103 |
|
|
(1.4 |
) |
|
Partnership |
|
|
1,036 |
|
|
|
1,330 |
|
|
(22.1 |
) |
|
|
|
4,442 |
|
|
|
5,111 |
|
|
(13.1 |
) |
|
Corporate
activities |
|
|
797 |
|
|
|
852 |
|
|
(6.5 |
) |
|
|
|
3,566 |
|
|
|
3,698 |
|
|
(3.6 |
) |
|
|
|
$ |
19,609 |
|
|
$ |
27,256 |
|
|
(28.1 |
) |
% |
|
$ |
103,619 |
|
|
$ |
107,361 |
|
|
(3.5 |
) |
% |
Operating income
(loss): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ethanol
production |
|
$ |
(51,119 |
) |
|
$ |
(19,124 |
) |
|
167.3 |
|
% |
|
$ |
(111,823 |
) |
|
$ |
(45,074 |
) |
|
148.1 |
|
% |
Agribusiness and energy services |
|
|
6,995 |
|
|
|
17,305 |
|
|
(59.6 |
) |
|
|
|
29,076 |
|
|
|
30,443 |
|
|
(4.5 |
) |
|
Food and
ingredients |
|
|
6,240 |
|
|
|
5,489 |
|
|
13.7 |
|
|
|
|
40,130 |
|
|
|
35,961 |
|
|
11.6 |
|
|
Partnership |
|
|
16,556 |
|
|
|
18,002 |
|
|
(8.0 |
) |
|
|
|
64,770 |
|
|
|
65,709 |
|
|
(1.4 |
) |
|
Intersegment eliminations |
|
|
(2,997 |
) |
|
|
86 |
|
|
* |
|
|
|
|
(3,110 |
) |
|
|
(61 |
) |
|
* |
|
|
Corporate
activities |
|
|
131,566 |
|
|
|
(14,334 |
) |
|
* |
|
|
|
|
96,687 |
|
|
|
(45,232 |
) |
|
* |
|
|
|
|
$ |
107,241 |
|
|
$ |
7,424 |
|
|
* |
|
% |
|
$ |
115,730 |
|
|
$ |
41,746 |
|
|
177.2 |
|
% |
EBITDA: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ethanol
production |
|
$ |
(36,365 |
) |
|
$ |
1,548 |
|
|
* |
|
% |
|
$ |
(31,623 |
) |
|
$ |
40,069 |
|
|
* |
|
% |
Agribusiness and energy services |
|
|
7,548 |
|
|
|
17,996 |
|
|
(58.1 |
) |
|
|
|
31,583 |
|
|
|
33,906 |
|
|
(6.9 |
) |
|
Food and
ingredients |
|
|
8,613 |
|
|
|
10,062 |
|
|
(14.4 |
) |
|
|
|
55,805 |
|
|
|
49,803 |
|
|
12.1 |
|
|
Partnership |
|
|
17,725 |
|
|
|
19,492 |
|
|
(9.1 |
) |
|
|
|
69,399 |
|
|
|
71,041 |
|
|
(2.3 |
) |
|
Intersegment eliminations |
|
|
(2,997 |
) |
|
|
86 |
|
|
* |
|
|
|
|
(3,110 |
) |
|
|
(61 |
) |
|
* |
|
|
Corporate
activities |
|
|
133,131 |
|
|
|
(13,113 |
) |
|
* |
|
|
|
|
102,598 |
|
|
|
(40,388 |
) |
|
* |
|
|
|
|
$ |
127,655 |
|
|
$ |
36,071 |
|
|
253.9 |
|
% |
|
$ |
224,652 |
|
|
$ |
154,370 |
|
|
45.5 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*
Percentage variance not considered meaningful. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
GREEN PLAINS INC. |
SELECTED OPERATING DATA |
(unaudited, in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
|
|
2018 |
|
2017 |
|
% Var. |
|
2018 |
|
2017 |
|
% Var. |
Ethanol production |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ethanol (gallons) |
|
205,115 |
|
340,754 |
|
(39.8 |
) |
% |
|
1,086,633 |
|
1,256,361 |
|
(13.5 |
) |
% |
Distillers grains (equivalent dried tons) |
|
536 |
|
893 |
|
(40.0 |
) |
|
|
2,815 |
|
3,314 |
|
(15.1 |
) |
|
Corn oil
(pounds) |
|
53,305 |
|
85,438 |
|
(37.6 |
) |
|
|
276,299 |
|
301,920 |
|
(8.5 |
) |
|
Corn
consumed (bushels) |
|
70,689 |
|
118,664 |
|
(40.4 |
) |
|
|
377,084 |
|
437,373 |
|
(13.8 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Agribusiness and energy
services |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic
ethanol sold (gallons) |
|
194,037 |
|
296,404 |
|
(34.5 |
) |
|
|
1,107,105 |
|
1,279,350 |
|
(13.5 |
) |
|
Export
ethanol sold (gallons) |
|
91,820 |
|
62,265 |
|
47.5 |
|
|
|
254,115 |
|
199,677 |
|
27.3 |
|
|
|
|
285,857 |
|
358,669 |
|
(20.3 |
) |
|
|
1,361,220 |
|
1,479,027 |
|
(8.0 |
) |
|
Food and
ingredients |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cattle
sold (head) |
|
146 |
|
72 |
|
102.8 |
|
|
|
548 |
|
199 |
|
175.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Partnership |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Storage
and throughput (gallons) |
|
208,063 |
|
334,975 |
|
(37.9 |
) |
% |
|
1,134,733 |
|
1,248,869 |
|
(9.1 |
) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GREEN PLAINS INC. |
CONSOLIDATED CRUSH MARGIN |
(unaudited, in thousands except per gallon
amounts) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, |
|
Three Months Ended December
31, |
|
|
2018 |
|
|
2017 |
|
|
2018 |
|
|
2017 |
|
|
|
($ in thousands) |
|
($ per gallon produced) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Ethanol production
operating (loss) |
|
$ |
(51,119 |
) |
|
$ |
(19,124 |
) |
|
$ |
(0.25 |
) |
|
$ |
(0.06 |
) |
Depreciation and amortization |
|
|
14,943 |
|
|
|
20,544 |
|
|
|
0.07 |
|
|
|
0.07 |
|
Total
ethanol production |
|
|
(36,176 |
) |
|
|
1,420 |
|
|
|
(0.18 |
) |
|
|
0.01 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Intercompany fees,
net: |
|
|
|
|
|
|
|
|
|
|
|
|
Storage
and logistics (partnership) |
|
|
14,395 |
|
|
|
18,047 |
|
|
|
0.08 |
|
|
|
0.05 |
|
Marketing
and agribusiness fees (agribusiness and energy services) |
|
|
4,969 |
|
|
|
7,336 |
|
|
|
0.02 |
|
|
|
0.02 |
|
Consolidated crush margin |
|
$ |
(16,812 |
) |
|
$ |
26,803 |
|
|
$ |
(0.08 |
) |
|
$ |
0.08 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liquidity and Capital ResourcesOn December 31,
2018, Green Plains had $318.2 million in total cash, cash
equivalents and restricted cash, and $467.0 million available under
revolving credit agreements, some of which are subject to
restrictions and other lending conditions. Total debt outstanding
at December 31, 2018, was $891.2 million, including $538.2 million
outstanding under working capital revolvers and other short-term
borrowing arrangements for the agribusiness and energy services,
and food and ingredients segments and $142.0 million of debt
related to Green Plains Partners. Total long-term debt, excluding
Green Plains Partners, is $210.9 million.
Conference Call InformationGreen Plains Inc.
and Green Plains Partners LP will host a joint conference call
Monday Feb. 11th at 11 a.m. Eastern time (10 a.m. Central time), to
discuss fourth 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 3273159. 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 and tax reform credits
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, 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 49.1% 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.
|
|
|
|
|
|
|
GREEN PLAINS INC. |
CONDENSED CONSOLIDATED BALANCE
SHEETS |
(unaudited, in thousands) |
|
|
|
|
|
|
|
|
|
December 31, 2018 |
|
December 31, 2017 |
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
Cash and
cash equivalents |
|
$ |
251,683 |
|
$ |
266,651 |
Restricted cash |
|
|
66,512 |
|
|
45,709 |
Accounts
receivable, net |
|
|
100,361 |
|
|
151,122 |
Income
tax receivable |
|
|
11,644 |
|
|
6,413 |
Inventories |
|
|
734,883 |
|
|
711,878 |
Other
current assets |
|
|
40,785 |
|
|
24,698 |
Total
current assets |
|
|
1,205,868 |
|
|
1,206,471 |
Property and equipment,
net |
|
|
886,576 |
|
|
1,176,707 |
Goodwill |
|
|
34,689 |
|
|
182,879 |
Other assets |
|
|
88,525 |
|
|
218,593 |
Total
assets |
|
$ |
2,215,658 |
|
$ |
2,784,650 |
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities |
|
|
|
|
|
|
Accounts
payable |
|
$ |
156,901 |
|
$ |
205,479 |
Accrued
and other liabilities |
|
|
58,973 |
|
|
63,886 |
Derivative financial instruments |
|
|
24,776 |
|
|
12,884 |
Income
taxes payable |
|
|
- |
|
|
9,909 |
Short-term notes payable and other borrowings |
|
|
538,243 |
|
|
526,180 |
Current
maturities of long-term debt |
|
|
54,807 |
|
|
67,923 |
Total
current liabilities |
|
|
833,700 |
|
|
886,261 |
Long-term debt |
|
|
298,190 |
|
|
767,396 |
Deferred income
taxes |
|
|
9,349 |
|
|
56,801 |
Other liabilities |
|
|
11,430 |
|
|
15,056 |
Total
liabilities |
|
|
1,152,669 |
|
|
1,725,514 |
|
|
|
|
|
|
|
Stockholders'
equity |
|
|
|
|
|
|
Total
Green Plains stockholders' equity |
|
|
946,819 |
|
|
942,182 |
Noncontrolling interests |
|
|
116,170 |
|
|
116,954 |
Total
liabilities and stockholders' equity |
|
$ |
2,215,658 |
|
$ |
2,784,650 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GREEN PLAINS INC. |
CONSOLIDATED STATEMENTS OF
OPERATIONS |
(unaudited, in thousands except per share
amounts) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
|
|
2018 |
|
|
2017 |
|
|
% Var. |
|
2018 |
|
|
2017 |
|
|
% Var. |
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product |
|
$ |
825,593 |
|
|
$ |
919,523 |
|
|
(10.2 |
) |
% |
|
$ |
3,853,271 |
|
|
$ |
3,589,981 |
|
|
7.3 |
|
% |
Services |
|
|
1,935 |
|
|
|
1,461 |
|
|
32.4 |
|
|
|
|
6,481 |
|
|
|
6,185 |
|
|
4.8 |
|
|
Total
revenues |
|
|
827,528 |
|
|
|
920,984 |
|
|
(10.1 |
) |
|
|
|
3,859,752 |
|
|
|
3,596,166 |
|
|
7.3 |
|
|
Costs and expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
goods sold (excluding depreciation and amortization expenses
reflected below) |
|
|
808,688 |
|
|
|
843,885 |
|
|
(4.2 |
) |
|
|
|
3,644,032 |
|
|
|
3,301,587 |
|
|
10.4 |
|
|
Operations and maintenance |
|
|
7,280 |
|
|
|
8,341 |
|
|
(12.7 |
) |
|
|
|
30,844 |
|
|
|
33,448 |
|
|
(7.8 |
) |
|
Selling,
general and administrative |
|
|
35,061 |
|
|
|
34,078 |
|
|
2.9 |
|
|
|
|
115,878 |
|
|
|
112,024 |
|
|
3.4 |
|
|
Gain on
sale of assets, net |
|
|
(150,351 |
) |
|
|
- |
|
|
* |
|
|
|
|
(150,351 |
) |
|
|
- |
|
|
* |
|
|
Depreciation and amortization |
|
|
19,609 |
|
|
|
27,256 |
|
|
(28.1 |
) |
|
|
|
103,619 |
|
|
|
107,361 |
|
|
(3.5 |
) |
|
Total
costs and expenses |
|
|
720,287 |
|
|
|
913,560 |
|
|
(21.2 |
) |
|
|
|
3,744,022 |
|
|
|
3,554,420 |
|
|
5.3 |
|
|
Operating
income |
|
|
107,241 |
|
|
|
7,424 |
|
|
* |
|
|
|
|
115,730 |
|
|
|
41,746 |
|
|
177.2 |
|
|
Other income
(expense) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income |
|
|
972 |
|
|
|
536 |
|
|
81.3 |
|
|
|
|
3,108 |
|
|
|
1,597 |
|
|
94.6 |
|
|
Interest
expense |
|
|
(33,477 |
) |
|
|
(20,345 |
) |
|
64.5 |
|
|
|
|
(101,025 |
) |
|
|
(90,160 |
) |
|
12.1 |
|
|
Other,
net |
|
|
(167 |
) |
|
|
855 |
|
|
* |
|
|
|
|
2,195 |
|
|
|
3,666 |
|
|
(40.1 |
) |
|
Total
other expense |
|
|
(32,672 |
) |
|
|
(18,954 |
) |
|
72.4 |
|
|
|
|
(95,722 |
) |
|
|
(84,897 |
) |
|
12.8 |
|
|
Income (loss) before
income taxes |
|
|
74,569 |
|
|
|
(11,530 |
) |
|
* |
|
|
|
|
20,008 |
|
|
|
(43,151 |
) |
|
* |
|
|
Income tax benefit
(expense) |
|
|
(14,712 |
) |
|
|
63,877 |
|
|
* |
|
|
|
|
16,726 |
|
|
|
124,782 |
|
|
(86.6 |
) |
|
Net income |
|
|
59,857 |
|
|
|
52,347 |
|
|
14.3 |
|
|
|
|
36,734 |
|
|
|
81,631 |
|
|
(55.0 |
) |
|
Net income attributable
to noncontrolling interest |
|
|
6,354 |
|
|
|
5,717 |
|
|
11.1 |
|
|
|
|
20,811 |
|
|
|
20,570 |
|
|
1.2 |
|
|
Net income attributable
to Green Plains |
|
$ |
53,503 |
|
|
$ |
46,630 |
|
|
14.7 |
|
% |
|
$ |
15,923 |
|
|
$ |
61,061 |
|
|
(73.9 |
) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income attributable to Green Plains - basic |
|
$ |
1.32 |
|
|
$ |
1.16 |
|
|
|
|
|
$ |
0.39 |
|
|
$ |
1.56 |
|
|
|
|
Net
income attributable to Green Plains - diluted |
|
$ |
1.13 |
|
|
$ |
0.99 |
|
|
|
|
|
$ |
0.39 |
|
|
$ |
1.47 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
40,383 |
|
|
|
40,091 |
|
|
|
|
|
|
40,320 |
|
|
|
39,247 |
|
|
|
|
Diluted |
|
|
50,607 |
|
|
|
50,061 |
|
|
|
|
|
|
41,254 |
|
|
|
50,240 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*
Percentage variance not considered meaningful. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GREEN PLAINS INC. |
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS |
(unaudited, in thousands) |
|
|
|
|
|
|
|
|
|
Twelve Months Ended December 31, |
|
|
|
2018 |
|
|
|
2017 |
|
Cash flows from
operating activities: |
|
|
|
|
|
|
Net income |
|
$ |
36,734 |
|
|
$ |
81,631 |
|
Other
noncash operating adjustments: |
|
|
|
|
|
|
Gain on
the disposal of assets |
|
|
(150,351 |
) |
|
|
- |
|
Depreciation and amortization |
|
|
103,619 |
|
|
|
107,361 |
|
Deferred
income taxes |
|
|
(25,258 |
) |
|
|
(81,077 |
) |
Other |
|
|
25,301 |
|
|
|
26,825 |
|
Net
change in working capital |
|
|
48,922 |
|
|
|
(316,903 |
) |
Net cash
provided by (used in) operating activities |
|
|
38,967 |
|
|
|
(182,163 |
) |
|
|
|
|
|
|
|
Cash flows from
investing activities: |
|
|
|
|
|
|
Purchases
of property and equipment, net |
|
$ |
(44,187 |
) |
|
$ |
(46,467 |
) |
Proceeds
from the sale of assets, net |
|
|
671,650 |
|
|
|
- |
|
Acquisition of businesses, net of cash acquired |
|
|
(124,407 |
) |
|
|
(61,727 |
) |
Investments in unconsolidated subsidiaries |
|
|
(3,091 |
) |
|
|
(20,286 |
) |
Other
investing activities |
|
|
7,500 |
|
|
|
- |
|
Net cash
provided by (used in) investing activities |
|
|
507,465 |
|
|
|
(128,480 |
) |
|
|
|
|
|
|
|
Cash flows from
financing activities: |
|
|
|
|
|
|
Net
proceeds (payments) - long-term debt |
|
$ |
(493,327 |
) |
|
$ |
60,391 |
|
Net
proceeds - short-term borrowings |
|
|
4,787 |
|
|
|
234,452 |
|
Other |
|
|
(52,057 |
) |
|
|
(78,631 |
) |
Net cash
provided by (used in) financing activities |
|
|
(540,597 |
) |
|
|
216,212 |
|
|
|
|
|
|
|
|
Net change in cash and
cash equivalents |
|
|
5,835 |
|
|
|
(94,431 |
) |
Cash and cash
equivalents, beginning of period |
|
|
312,360 |
|
|
|
406,791 |
|
Cash and cash
equivalents, end of period |
|
$ |
318,195 |
|
|
$ |
312,360 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended December 31, |
|
|
|
2018 |
|
|
2017 |
|
|
|
|
|
|
|
|
|
Reconciliation of total
cash, cash equivalents and restricted cash: |
|
|
|
|
|
|
|
|
Cash and
cash equivalents |
|
$ |
251,683 |
|
|
$ |
266,651 |
|
Restricted cash |
|
|
66,512 |
|
|
|
45,709 |
|
Total cash, cash
equivalents and restricted cash |
|
$ |
318,195 |
|
|
$ |
312,360 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GREEN PLAINS INC. |
RECONCILIATIONS TO NON-GAAP FINANCIAL
MEASURES |
(unaudited, in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
|
|
2018 |
|
2017 |
|
|
2018 |
|
|
2017 |
|
Net income |
|
$ |
59,857 |
|
|
$ |
52,347 |
|
|
$ |
36,734 |
|
|
$ |
81,631 |
|
Interest
expense |
|
|
33,477 |
|
|
|
20,345 |
|
|
|
101,025 |
|
|
|
90,160 |
|
Income
tax expense (benefit) |
|
|
14,712 |
|
|
|
(63,877 |
) |
|
|
(16,726 |
) |
|
|
(124,782 |
) |
Depreciation and amortization |
|
|
19,609 |
|
|
|
27,256 |
|
|
|
103,619 |
|
|
|
107,361 |
|
EBITDA |
|
$ |
127,655 |
|
|
$ |
36,071 |
|
|
$ |
224,652 |
|
|
$ |
154,370 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GREEN PLAINS INC. |
RECONCILIATIONS TO NON-GAAP ADJUSTED FINANCIAL
MEASURES |
(unaudited, in thousands except for per share
amounts) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31,
2018 |
|
Three Months Ended December 31,
2017 |
|
|
GAAP Basis as Reported |
|
GAAP Basis as Reported |
|
Non-GAAP Adjustment Tax Credit |
|
Non-GAAP Basis as Adjusted |
Basic EPS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to Green Plains |
|
$ |
53,503 |
|
|
$ |
46,630 |
|
|
$ |
(52,845 |
) |
|
$ |
(6,215 |
) |
Weighted
average shares outstanding - basic |
|
|
40,383 |
|
|
|
40,091 |
|
|
|
- |
|
|
|
40,091 |
|
Earnings
(loss) per share attributable to Green Plains - basic |
|
$ |
1.32 |
|
|
$ |
1.16 |
|
|
$ |
(1.32 |
) |
|
$ |
(0.16 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted EPS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income (loss) attributable to Green Plains |
|
$ |
53,503 |
|
|
$ |
46,630 |
|
|
$ |
(52,845 |
) |
|
$ |
(6,215 |
) |
Interest
and amortization on convertible debt, net of tax |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3.25%
convertible senior notes due 2018 |
|
|
1,236 |
|
|
|
851 |
|
|
|
(851 |
) |
|
|
- |
|
4.125%
convertible senior notes due 2022 |
|
|
2,594 |
|
|
|
2,071 |
|
|
|
(2,071 |
) |
|
|
- |
|
Net
income (loss) attributable to Green Plains - diluted |
|
$ |
57,333 |
|
|
$ |
49,552 |
|
|
$ |
(55,767 |
) |
|
$ |
(6,215 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding - basic |
|
|
40,383 |
|
|
|
40,091 |
|
|
|
- |
|
|
|
40,091 |
|
Effect of
dilutive 3.25% convertible senior notes due 2018 |
|
|
3,175 |
|
|
|
3,193 |
|
|
|
(3,193 |
) |
|
|
- |
|
Effect of
dilutive 4.125% convertible senior notes due 2022 |
|
|
6,071 |
|
|
|
6,071 |
|
|
|
(6,071 |
) |
|
|
- |
|
Effect of
dilutive stock compensation awards |
|
|
978 |
|
|
|
706 |
|
|
|
(706 |
) |
|
|
- |
|
Total
potential shares outstanding |
|
|
50,607 |
|
|
|
50,061 |
|
|
|
(9,970 |
) |
|
|
40,091 |
|
Earnings (loss) per
share attributable to Green Plains - diluted |
|
$ |
1.13 |
|
|
$ |
0.99 |
|
|
$ |
(1.15 |
) |
|
$ |
(0.16 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended December 31,
2018 |
|
Twelve Months Ended December 31,
2017 |
|
|
GAAP Basis as Reported |
|
GAAP Basis as Reported |
|
Non-GAAP Adjustment Tax Credit & Interest
Exp. |
|
Non-GAAP Basis as Adjusted |
Basic EPS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income (loss) attributable to Green Plains |
|
$ |
15,923 |
|
|
$ |
61,061 |
|
|
$ |
(94,661 |
) |
|
$ |
(33,600 |
) |
Weighted
average shares outstanding - basic |
|
|
40,320 |
|
|
|
39,247 |
|
|
|
- |
|
|
|
39,247 |
|
Earnings
(loss) per share attributable to Green Plains - basic |
|
$ |
0.39 |
|
|
$ |
1.56 |
|
|
$ |
(2.42 |
) |
|
$ |
(0.86 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted EPS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income (loss) attributable to Green Plains |
|
$ |
15,923 |
|
|
$ |
61,061 |
|
|
$ |
(94,661 |
) |
|
$ |
(33,600 |
) |
Interest
and amortization on convertible debt, net of tax |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3.25%
convertible senior notes due 2018 |
|
|
- |
|
|
|
4,433 |
|
|
|
(4,433 |
) |
|
|
- |
|
4.125%
convertible senior notes due 2022 |
|
|
- |
|
|
|
8,159 |
|
|
|
(8,159 |
) |
|
|
- |
|
Net
income (loss) attributable to Green Plains - diluted |
|
$ |
15,923 |
|
|
$ |
73,653 |
|
|
$ |
(107,253 |
) |
|
$ |
(33,600 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding - basic |
|
|
40,320 |
|
|
|
39,247 |
|
|
|
- |
|
|
|
39,247 |
|
Effect of
dilutive 3.25% convertible senior notes due 2018 |
|
|
- |
|
|
|
4,209 |
|
|
|
(4,209 |
) |
|
|
- |
|
Effect of
dilutive 4.125% convertible senior notes due 2022 |
|
|
- |
|
|
|
6,071 |
|
|
|
(6,071 |
) |
|
|
- |
|
Effect of
dilutive stock compensation awards |
|
|
934 |
|
|
|
713 |
|
|
|
(713 |
) |
|
|
- |
|
Total
potential shares outstanding |
|
|
41,254 |
|
|
|
50,240 |
|
|
|
(10,993 |
) |
|
|
39,247 |
|
Earnings (loss) per
share attributable to Green Plains - diluted |
|
$ |
0.39 |
|
|
$ |
1.47 |
|
|
$ |
(2.33 |
) |
|
$ |
(0.86 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contact: Jim Stark | Vice President, Investor
& Media Relations | 402.884.8700 | jim.stark@gpreinc.com
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