Results for the Third Quarter of 2023
and Future Outlook:
- Net income attributable to Green Plains of $22.3 million, or
EPS of $0.35 per diluted share
- EBITDA of $52.0 million
- Plant utilization rate of 93.9%, returning platform to
consistent operations
- Outlook for the fourth quarter of 2023 remains strong based on
solid production operating rates, industry fundamentals and
expanding Ultra-High Protein sales
- Completed successful 60% protein production runs with growing
global customer interest for future sales
Green Plains Inc. (NASDAQ:GPRE) (“Green Plains” or the
“company”) today announced financial results for the third quarter
of 2023. Net income attributable to the company was $22.3 million,
or $0.35 per diluted share, compared to net loss attributable to
the company of $73.5 million, or ($1.27) per diluted share, for the
same period in 2022. Revenues were $892.8 million for the third
quarter of 2023 compared with $955.0 million for the same period
last year. EBITDA was $52.0 million compared with ($35.6) million
for the same period in the prior year.
“During the quarter we achieved strong operating results,” said
Todd Becker, President and Chief Executive Officer. “Our platform
utilization was 93.9%, demonstrating our capabilities of maximizing
our core operations and new technologies. Our fourth quarter
outlook remains strong as margins across all of our products look
favorable based on current market conditions.”
“We achieved new records in production volume and sales for our
Ultra-High Protein as our capacity returned to full rate in July
with Wood River coming back online, and anticipate the fourth
quarter will exceed these levels,” added Becker. “We successfully
executed full-scale production runs of 60% protein at one location
during the quarter and have begun to ship product to customers
globally into full commercial use and expect to expand in a
significant way in all of our target markets in 2024.”
“We expect our first commercial-scale Clean Sugar Technology
facility in Shenandoah, Iowa to be mechanically complete by the end
of the year and begin commissioning in the first quarter of 2024,”
added Becker. “Customer interest has been strong, and we look
forward to demonstrating the true value of this initiative as we
continue customer development.”
“In carbon, we have expanded and diversified our partnerships
for carbon capture and storage and believe that our Nebraska plants
will be at a significant early advantage beginning in 2025,” said
Becker. “Our product portfolio has a significantly lower carbon
intensity score than the market incumbents, from dextrose to
renewable corn oil to Ultra-High Protein and we are seeing growing
customer interest across the board, even before carbon capture
begins. Our team continues to execute on our transformation while
also focusing our efforts on maximizing production of our core
portfolio to take full advantage of positive near-term
fundamentals.”
Highlights and Recent
Developments
- On September 16, 2023, Green Plains and Green Plains Partners
LP (“Green Plains Partners”) entered into a definitive merger
agreement pursuant to which Green Plains will acquire all of the
publicly held common units of Green Plains Partners not already
owned by Green Plains and its affiliates, in exchange for a
combination of Green Plains common stock and cash. Under the merger
agreement, each outstanding common unit of Green Plains Partners
that Green Plains and its affiliates do not already own will be
converted into the right to receive 0.405 shares of Green Plains
common stock and $2.00 in cash, plus an amount of cash equal to
unpaid distributions from the end of the last quarter for which a
quarterly distribution was made to the closing date, as determined
in accordance with the merger agreement, without interest.
Results of Operations
Green Plains’ ethanol production segment sold 223.5 million
gallons of ethanol during the third quarter of 2023, compared with
219.2 million gallons for the same period in 2022. The consolidated
ethanol crush margin was $48.5 million for the third quarter of
2023, compared with ($20.5) million for the same period in 2022.
The consolidated ethanol crush margin is the ethanol production
segment’s operating income before depreciation and amortization,
which includes renewable corn oil and Ultra-High Protein, plus
intercompany storage, transportation, nonrecurring decommissioning
costs, nonethanol operating activities and other fees, net of
related expenses.
Consolidated revenues decreased $62.2 million for the three
months ended September 30, 2023, compared with the same period in
2022, primarily due to lower weighted average selling prices on
ethanol and distillers grains, as well as lower volumes sold on
distillers grains, partially offset by higher volumes sold on
ethanol and renewable corn oil, as well as higher weighted average
selling prices on renewable corn oil within our ethanol production
segment. Revenues were also lower within our agribusiness and
energy services segment as a result of decreased ethanol and
distillers grains trading volumes.
Net income attributable to Green Plains increased $95.8 million
and EBITDA increased $87.5 million for the three months ended
September 30, 2023, compared with the same period last year,
primarily due to higher margins in our ethanol production segment
and in our agribusiness and energy services segment. Interest
expense was consistent for the three months ended September 30,
2023 compared with the same period in 2022. Income tax benefit was
$7.8 million for the three months ended September 30, 2023 compared
with income tax benefit of $1.9 million for the same period in
2022, primarily due to a decrease in the valuation allowance
recorded against certain deferred tax assets for the three months
ended September 30, 2023.
Segment Information
The company reports the financial and operating performance for
the following three operating segments: (1) ethanol production,
which includes the production of ethanol, distillers grains,
Ultra-High Protein and renewable 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, Ultra-High Protein,
renewable corn oil, grain, natural gas and other commodities and
(3) 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.
GREEN PLAINS INC.
SEGMENT OPERATIONS
(unaudited, in thousands)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2023
2022
% Var.
2023
2022
% Var.
Revenues
Ethanol production
$
773,367
$
811,015
(4.6)%
$
2,195,600
$
2,309,734
(4.9)%
Agribusiness and energy services
125,081
149,762
(16.5)
403,290
456,033
(11.6)
Partnership
20,145
20,066
0.4
61,443
58,820
4.5
Intersegment eliminations
(25,823
)
(25,866
)
(0.2)
(76,982
)
(75,781
)
1.6
$
892,770
$
954,977
(6.5)%
$
2,583,351
$
2,748,806
(6.0)%
Gross margin
Ethanol production
$
45,007
$
(32,828
)
237.1%
$
19,347
$
(490
)
*%
Agribusiness and energy services
15,789
9,840
60.5
31,309
38,016
(17.6)
Partnership
20,145
20,066
0.4
61,443
58,820
4.5
Intersegment eliminations
530
1,042
(49.1)
(143
)
1,780
(108.0)
$
81,471
$
(1,880
)
*%
$
111,956
$
98,126
14.1%
Depreciation and amortization
Ethanol production
$
21,816
$
21,555
1.2%
$
67,179
$
59,101
13.7%
Agribusiness and energy services
534
1,280
(58.3)
1,883
2,214
(15.0)
Partnership
780
1,194
(34.7)
2,424
2,915
(16.8)
Corporate activities
769
618
24.4
2,425
1,783
36.0
$
23,899
$
24,647
(3.0%)
$
73,911
$
66,013
12.0%
Operating income (loss)
Ethanol production (1)
$
11,973
$
(64,121
)
118.7%
$
(77,759
)
$
(87,773
)
(11.4)%
Agribusiness and energy services
11,313
5,205
117.3
17,612
25,894
(32.0)
Partnership
11,428
11,993
(4.7)
34,744
35,906
(3.2)
Intersegment eliminations
530
1,042
(49.1)
(143
)
1,780
(108.0)
Corporate activities (2)
(14,070
)
(15,999
)
(12.1)
(52,300
)
(51,748
)
1.1
$
21,174
$
(61,880
)
134.2%
$
(77,846
)
$
(75,941
)
2.5%
Adjusted EBITDA
Ethanol production (1)
$
37,815
$
(42,471
)
189.0%
$
(6,201
)
$
(517
)
*%
Agribusiness and energy services
12,160
6,536
86.0
20,258
28,009
(27.7)
Partnership
12,638
13,270
(4.8)
38,382
39,275
(2.3)
Intersegment eliminations
530
1,042
(49.1)
(143
)
1,780
(108.0)
Corporate activities (2)
(11,165
)
(13,945
)
(19.9)
(42,986
)
(47,553
)
(9.6)
EBITDA
51,978
(35,568
)
246.1
9,310
20,994
(55.7)
Other income (3)
(3,440
)
—
*
(3,440
)
(27,712
)
(87.6)
Gain on sale of assets
(5,651
)
—
*
(5,651
)
—
*
Proportional share of EBITDA adjustments
to equity method investees
45
45
—
135
135
—
$
42,932
$
(35,523
)
220.9%
$
354
$
(6,583
)
105.4%
(1) Ethanol production includes an
inventory lower of cost or net realizable value adjustment of $1.7
million for the three and nine months ended September 30, 2023 and
$11.2 million for the three and nine months ended September 30,
2022.
(2) Corporate activities includes a $5.7
million pretax gain on sale of assets for the three and nine months
ended September 30, 2023.
(3) Other income includes grants received
from the USDA related to the Biofuel Producer Program of $3.4
million for the three and nine months ended September 30, 2023 and
$27.7 million for the nine months ended September 30, 2022.
* Percentage variances not considered meaningful
GREEN PLAINS INC.
SELECTED OPERATING
DATA
(unaudited, in thousands)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2023
2022
% Var.
2023
2022
% Var.
Ethanol production
Ethanol sold (gallons)
223,469
219,166
2.0%
625,102
646,927
(3.4)%
Distillers grains sold (equivalent dried
tons)
514
571
(10.0)
1,454
1,650
(11.9)
Ultra-High Protein sold (tons)
61
15
306.7
157
45
248.9
Renewable corn oil sold (pounds)
74,227
72,975
1.7
206,927
204,502
1.2
Corn consumed (bushels)
76,544
75,308
1.6
215,115
223,830
(3.9)
Agribusiness and energy services (1)
Domestic ethanol sold (gallons)
290,572
276,866
5.0
825,574
689,684
19.7
Export ethanol sold (gallons)
1,293
13,076
(90.1)
5,693
122,049
(95.3)
291,865
289,942
0.7
831,267
811,733
2.4
Partnership
Storage and throughput (gallons)
225,042
219,719
2.4%
629,273
649,417
(3.1)%
(1) Includes gallons from the ethanol
production segment.
GREEN PLAINS INC.
CONSOLIDATED CRUSH
MARGIN
(unaudited, in thousands)
Three Months Ended September
30,
2023
2022
Ethanol production operating income (loss)
(1)
$
11,973
$
(64,121
)
Depreciation and amortization
21,816
21,555
Adjusted ethanol production operating
income (loss)
33,789
(42,566
)
Intercompany fees, net
Storage and logistics (partnership)
8,288
12,589
Marketing and agribusiness fees (2)
6,420
9,514
Consolidated ethanol crush margin
$
48,497
$
(20,463
)
(1) Ethanol production includes an
inventory lower of cost or net realizable value adjustment of $1.7
million and $11.2 million for the three months ended September 30,
2023 and 2022, respectively.
(2) For the three months ended September
30, 2023 and 2022, includes $1.5 million and $3.8 million,
respectively, for certain nonrecurring decommissioning costs and
nonethanol operating activities.
Liquidity and Capital Resources
As of September 30, 2023, Green Plains had $366.2 million in
total cash and cash equivalents, and restricted cash, and $200.0
million available under a committed revolving credit facility,
which is subject to restrictions and other lending conditions.
Total debt outstanding at September 30, 2023 was $653.6 million,
including $159.7 million outstanding debt under working capital
revolvers and other short-term borrowing arrangements and $55.6
million of non-recourse debt related to Green Plains Partners, net
of debt issuance costs.
Conference Call Information
On October 31, 2023 Green Plains Inc. and Green Plains Partners
LP will host a joint conference call at 9 a.m. Eastern time (8 a.m.
Central time) to discuss third quarter 2023 operating results for
each company. Domestic and international participants can access
the live conference by dialing 888.210.4215 and 646.960.0269,
respectively, and referencing conference ID 5027523. Participants
are advised to call at least 10 minutes prior to the start time.
Alternatively, the conference call and presentation will be
accessible on Green Plains’ website
https://investor.gpreinc.com/events-presentations.
Non-GAAP Financial Measures
Management uses EBITDA, adjusted EBITDA, segment EBITDA and
consolidated ethanol crush margins to measure the company’s
financial performance and to internally manage its businesses.
EBITDA is defined as earnings before interest expense, income
taxes, depreciation and amortization excluding the change in
right-of-use assets. Adjusted EBITDA includes adjustments related
to our proportional share of EBITDA adjustments of our equity
method investees, gains and losses related to the sale of assets,
and other income associated with the USDA COVID-19 relief grant.
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
U.S. Generally Accepted Accounting Principles (“GAAP”). These
non-GAAP calculations may vary from company to company.
Accordingly, the company’s computation of adjusted EBITDA, segment
EBITDA and consolidated ethanol crush margins may not be comparable
with similarly titled measures of another company.
About Green Plains Inc.
Green Plains Inc. (NASDAQ:GPRE) is a leading biorefining company
focused on the development and utilization of fermentation,
agricultural and biological technologies in the processing of
annually renewable crops into sustainable value-added ingredients.
This includes the production of cleaner low carbon biofuels,
renewable feedstocks for advanced biofuels and high purity alcohols
for use in cleaners and disinfectants. Green Plains is an
innovative producer of Ultra-High Protein and novel ingredients for
animal and aquaculture diets to help satisfy a growing global
appetite for sustainable protein. Green Plains also owns a 48.8%
limited partner interest and a 2.0% general partner interest in
Green Plains Partners LP. For more information, 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 terminals,
transportation assets and other related assets and businesses. For
more information about Green Plains Partners, visit
www.greenplainspartners.com.
Forward-Looking Statements
All statements in this press release (and oral statements made
regarding the subjects of this communication), including those that
express a belief, expectation or intention, may be considered
forward-looking statements (as defined in Section 21E of the
Securities Exchange Act, as amended, and Section 27A of the
Securities Act of 1933, as amended) that involve risks and
uncertainties that could cause actual results to differ materially
from projected results. Without limiting the generality of the
foregoing, forward-looking statements contained in this
communication include statements relying on a number of assumptions
concerning future events and are subject to a number of
uncertainties and factors, many of which are outside the control of
the company, which could cause actual results to differ materially
from such statements. Accordingly, investors should not place undue
reliance on forward-looking statements as a prediction of actual
results. The forward-looking statements may include, but are not
limited to, statements regarding the ability of the company and
Green Plains Partners to consummate the transactions contemplated
by the merger agreement; the anticipated completion of the proposed
transaction and the timing thereof; and the expected future growth,
dividends and distributions of the combined company; and plans and
objectives of management for future operations. Forward-looking
statements may be identified by words such as “believe,” “intend,”
“expect,” “may,” “should,” “will,” “anticipate,” “could,”
“estimate,” “plan,” “predict,” “project” and variations of these
words or similar expressions (or the negative versions of such
words or expressions). While the company believes that the
assumptions concerning future events are reasonable, it cautions
that there are inherent difficulties in predicting certain
important factors that could impact the future performance or
results of its business. Among the factors that could cause results
to differ materially from those indicated by such forward-looking
statements are: the failure to realize the anticipated costs
savings, synergies and other benefits of the proposed transaction;
the possible diversion of management time on transaction-related
issues; local, regional and national economic conditions and the
impact they may have on the company, Green Plains Partners and
their customers; disruption caused by health epidemics, such as the
COVID-19 outbreak; conditions in the ethanol and biofuels industry,
including a sustained decrease in the level of supply or demand for
ethanol and biofuels or a sustained decrease in the price of
ethanol or biofuels; commodity market risks, including those that
may result from weather conditions; the financial condition of the
company’s or Green Plains Partners’ customers; any non-performance
by customers of their contractual obligations; changes in customer,
employee or supplier relationships resulting from the proposed
transaction; changes in safety, health, environmental and other
governmental policy and regulation, including changes to tax laws;
the results of any reviews, investigations or other proceedings by
government authorities; and the performance of the company and
Green Plains Partners.
The foregoing list of factors is not exhaustive. The
forward-looking statements in this press release speak only as of
the date they are made and the company assumes no obligation and
does not intend to update or revise these forward-looking
statements, whether as a result of new information, future events
or otherwise, except as required by securities and other applicable
laws. We have based these forward-looking statements on our current
expectations and assumptions about future events. While the
company’s management considers these expectations and assumptions
to be reasonable, they are inherently subject to significant
business, economic, competitive, regulatory and other risks,
contingencies and uncertainties, most of which are difficult to
predict and many of which are beyond the company’s control. These
risks, contingencies and uncertainties relate to, among other
matters, the risks and uncertainties set forth in the “Risk
Factors” section of the company’s Annual Report on Form 10-K for
the year ended December 31, 2022, and Quarterly Report on Form 10-Q
for the three months ended June 30, 2023, each filed with the
Securities and Exchange Commission (the “SEC”), and any subsequent
reports filed by the company with the SEC. These filings identify
and address other important risks and uncertainties that could
cause actual events and results to differ materially from those
contained in the forward-looking statements.
GREEN PLAINS INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(in thousands)
September 30,
2023
December 31,
2022
(unaudited)
ASSETS
Current assets
Cash and cash equivalents
$
326,701
$
444,661
Restricted cash
39,459
55,615
Accounts receivable, net
142,790
108,610
Income taxes receivable
1,097
1,286
Inventories
208,061
278,950
Other current assets
39,435
39,628
Total current assets
757,543
928,750
Property and equipment, net
1,011,287
1,029,327
Operating lease right-of-use assets
79,376
73,244
Other assets
102,938
91,810
Total assets
$
1,951,144
$
2,123,131
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current liabilities
Accounts payable
$
138,350
$
234,301
Accrued and other liabilities
57,276
44,443
Derivative financial instruments
21,828
47,941
Operating lease current liabilities
23,335
20,721
Short-term notes payable and other
borrowings
159,747
137,678
Current maturities of long-term debt
1,936
1,838
Total current liabilities
402,472
486,922
Long-term debt
491,945
495,243
Operating lease long-term liabilities
59,297
55,515
Other liabilities
22,934
24,385
Total liabilities
976,648
1,062,065
Stockholders' equity
Total Green Plains stockholders'
equity
828,149
910,031
Noncontrolling interests
146,347
151,035
Total stockholders' equity
974,496
1,061,066
Total liabilities and stockholders'
equity
$
1,951,144
$
2,123,131
GREEN PLAINS INC.
CONSOLIDATED STATEMENTS OF
OPERATIONS
(unaudited, in thousands except
per share amounts)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2023
2022
2023
2022
Revenues
$
892,770
$
954,977
$
2,583,351
$
2,748,806
Costs and expenses
Cost of goods sold (excluding depreciation
and amortization expenses reflected below)
811,299
956,857
2,471,395
2,650,680
Operations and maintenance expenses
6,709
6,287
21,032
18,012
Selling, general and administrative
expenses
35,340
29,066
100,510
90,042
Gain on sale of assets
(5,651
)
—
(5,651
)
—
Depreciation and amortization expenses
23,899
24,647
73,911
66,013
Total costs and expenses
871,596
1,016,857
2,661,197
2,824,747
Operating income (loss)
21,174
(61,880
)
(77,846
)
(75,941
)
Other income (expense)
Interest income
2,467
1,763
8,403
2,640
Interest expense
(9,550
)
(9,576
)
(29,029
)
(26,182
)
Other, net
4,282
(182
)
4,310
28,394
Total other income (expense)
(2,801
)
(7,995
)
(16,316
)
4,852
Income (loss) before income taxes and
income (loss) from equity method investees
18,373
(69,875
)
(94,162
)
(71,089
)
Income tax benefit
7,763
1,888
5,353
146
Income (loss) from equity method
investees
156
84
532
(112
)
Net income (loss)
26,292
(67,903
)
(88,277
)
(71,055
)
Net income attributable to noncontrolling
interests
3,981
5,623
12,340
17,547
Net income (loss) attributable to Green
Plains
$
22,311
$
(73,526
)
$
(100,617
)
$
(88,602
)
Earnings per share
Net income (loss) attributable to Green
Plains - basic
$
0.38
$
(1.27
)
$
(1.71
)
$
(1.62
)
Net income (loss) attributable to Green
Plains - diluted
$
0.35
$
(1.27
)
$
(1.71
)
$
(1.62
)
Weighted average shares outstanding
Basic
58,910
57,677
58,780
54,550
Diluted
67,402
57,677
58,780
54,550
GREEN PLAINS INC.
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(unaudited, in thousands)
Nine Months Ended
September 30,
2023
2022
Cash flows from operating activities
Net loss
$
(88,277
)
$
(71,055
)
Noncash operating adjustments
Depreciation and amortization
73,911
66,013
Gain on sale of assets
(5,651
)
—
Loss on extinguishment of debt
—
419
Inventory lower of cost or net realizable
value adjustment
1,663
11,177
Other
6,628
10,707
Net change in working capital
(43,660
)
(51,727
)
Net cash used in operating activities
(55,386
)
(34,466
)
Cash flows from investing activities
Purchases of property and equipment,
net
(77,876
)
(183,225
)
Proceeds from the sale of assets
25,106
—
Proceeds from the sale of marketable
securities
—
99,917
Investment in equity method investees
(16,299
)
(6,976
)
Net cash used in investing activities
(69,069
)
(90,284
)
Cash flows from financing activities
Net proceeds (borrowings) - long term
debt
(4,325
)
43,653
Net proceeds - short-term borrowings
21,105
33,602
Other
(26,441
)
(26,016
)
Net cash provided by (used in) financing
activities
(9,661
)
51,239
Net change in cash and cash equivalents,
and restricted cash
(134,116
)
(73,511
)
Cash and cash equivalents, and restricted
cash, beginning of period
500,276
560,959
Cash and cash equivalents, and restricted
cash, end of period
$
366,160
$
487,448
Reconciliation of total cash and cash
equivalents, and restricted cash
Cash and cash equivalents
$
326,701
$
420,838
Restricted cash
39,459
66,610
Total cash and cash equivalents, and
restricted cash
$
366,160
$
487,448
GREEN PLAINS INC.
RECONCILIATIONS TO NON-GAAP
FINANCIAL MEASURES
(unaudited, in thousands)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2023
2022
2023
2022
Net income (loss)
$
26,292
$
(67,903
)
$
(88,277
)
$
(71,055
)
Interest expense
9,550
9,576
29,029
26,182
Income tax benefit
(7,763
)
(1,888
)
(5,353
)
(146
)
Depreciation and amortization (1)
23,899
24,647
73,911
66,013
EBITDA
51,978
(35,568
)
9,310
20,994
Other income (2)
(3,440
)
—
(3,440
)
(27,712
)
Gain on sale of assets
(5,651
)
—
(5,651
)
—
Proportional share of EBITDA adjustments
to equity method investees
45
45
135
135
Adjusted EBITDA
$
42,932
$
(35,523
)
$
354
$
(6,583
)
(1) Excludes amortization of operating
lease right-of-use assets and amortization of debt issuance
costs.
(2) Other income includes grants received
from the USDA related to the Biofuel Producer Program of $3.4
million for the three and nine months ended September 30, 2023 and
$27.7 million for the nine months ended September 30, 2022.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231031796669/en/
Green Plains Inc. Contacts Investors: Phil Boggs |
Executive Vice President, Investor Relations | 402.884.8700 |
phil.boggs@gpreinc.com Media: Lisa Gibson | Communications
Manager | 402.952.4971 | lisa.gibson@gpreinc.com
Green Plains (NASDAQ:GPRE)
Historical Stock Chart
From Apr 2024 to May 2024
Green Plains (NASDAQ:GPRE)
Historical Stock Chart
From May 2023 to May 2024