Green Plains Reports Third Quarter 2019 Financial Results
Results for the Third Quarter of 2019:
- Net loss attributable to the company of $39.0 million, or $(1.06) per diluted share
- Adjusted EBITDA of $(13.4) million
- Cash, cash equivalents and restricted cash of $254.0 million
- As of Sept. 30, 2019, the Company is net debt zero excluding working capital financing and non-recourse partnership debt
- Repurchased approximately 1.7 million shares totaling $16.0 million
- Fourth quarter 2019 ethanol EBITDA margins have turned positive
- Green Plains Inc. Board of Directors approves an additional $100 million authorization to repurchase shares
OMAHA, Neb., Nov. 05, 2019 (GLOBE NEWSWIRE) -- Green Plains Inc. (NASDAQ:GPRE) today announced financial results for the third quarter of 2019. Net loss attributable to the company was $39.0 million, or $(1.06) per diluted share, for the third quarter of 2019 compared with net loss of $12.5 million, or $(0.31) per diluted share, for the same period in 2018. Revenues were $632.4 million for the third quarter of 2019 compared with $789.0 million for the same period last year.
“As expected, our third quarter results were attributable to a continued weak ethanol margin environment that began to show improvement in late September,” commented Todd Becker, president and chief executive officer. “Based on the current environment, we have seen ethanol margins turn positive for our platform, which should result in a positive outlook for cash flow from operations for the fourth quarter. While margins remain volatile, we have seen some industry rationalization taking place and our balance sheet strength and strategic initiatives have put us in a very good position to take advantage of the recent expansion in ethanol margins.”
“During the quarter we made significant strides both strategically and operationally. We were successful in selling a 50% share of our cattle feeding business to a group of strategic investors enabling us to take the business off balance sheet and provide investors better clarity of our financial strength,” said Becker. “More importantly, our operating expense per gallon continues to decline as we move into the expanded construction phase of our project 24 and operate at higher utilization rates. Finally, consistent with our previous messaging, we supported our share value by investing in substantial open market share repurchases during the third quarter and the beginning of the fourth quarter totaling approximately $21.8 million for 2.2 million shares.”
Green Plains Inc. today announced that its board of directors approved an increase in the current share repurchase authorization by $100 million during October of 2019. The authorization now totals $200 million, with approximately $119 million available under the repurchase program authorized by the Board of Directors in 2014.
Green Plains Inc. is also announcing today that it has signed a definitive agreement to sell its 50% joint venture interest in JGP Energy Partners LLC to its partner, Jefferson Energy Holdings LLC, a subsidiary of Fortress Transportation and Infrastructure Investors LLC for $29 million. The transaction is expected to close on or before December 15, 2019. “Based on current energy infrastructure markets, and our ability to secure long term competitive elevation agreements at third party terminals, selling our interest in this terminal will allow us to re-deploy capital into our current projects and achieve higher returns for our shareholders,” commented Becker.
“We expect commissioning of our protein project in Shenandoah, IA late in the 4th quarter with full production rates approximately 60 days thereafter. More importantly, we have signed a term sheet with one of the premier pet food raw material processors and suppliers in the industry. Initially, this customer will guarantee purchase of 60% of Shenandoah’s production, priced at a premium to high protein soymeal prices and we continue negotiations for the remainder of the production along with the potential for a second location to be named,” stated Becker. “This, we believe, validates the expected returns of the project which gives us the confidence to continue to build out the high protein technology throughout the platform.”
“We completed the first Project 24 upgrade at our Wood River, NE ethanol facility and the plant is ramping up to its operating capacity this week,” said Becker. “This upgrade is transformational in terms of operating cost per gallon related to the base technology of the plant. This location will now be one of our lowest operating costs plants per gallon and clearly puts this plant in the top 10% of all plants in the industry. This investment in Wood River, more importantly, reduces its carbon intensity score in order to take advantage of markets that pay premiums for low carbon fuels. We continue on our path to 24 cents a gallon by the middle of 2020 and believe we might achieve lower costs based on the preliminary results of the first project.”
“We are encouraged that the recent announcements by the EPA and the potential trade deal with China will turn what we believe could be tail winds for the ethanol industry,” concluded Becker. “With that said, for the first time in over a year, we are experiencing positive ethanol margins in the current period. While cautious in our guidance, it is nice to see our projects over the last two years have put the company in the position to have these discussions.”
Third Quarter Highlights and Recent Developments
- On September 9, 2019, we announced that we and a group of investment funds that include AGR Partners, StepStone Group, and several of their respective affiliates, had formed a joint venture to own and operate Green Plains Cattle Company LLC. As a part of the joint venture, these investment funds have purchased 50% of the membership interests of Green Plains Cattle Company from Green Plains Inc. for approximately $77 million plus closing adjustments. The transaction was signed on September 6, 2019 with an effective date of September 1, 2019.
- During the third quarter, the company repurchased 1.7 million shares of common stock for $16.0 million. For 2019 year-to-date, Green Plains Inc. has repurchased approximately 5.4 million shares for approximately $61.6 million.
Revenues attributable to the company were $1.7 billion for the nine-month period ended September 30, 2019, compared with $2.4 billion for the same period in 2018. With the disposition of our cattle operations, there were $638.1 million and $652.9 million of revenues for the nine-month period ended September 30, 2019 and September 30, 2018, respectively, that are now included in discontinued operations. Net loss for the nine-month period ended September 30, 2019, was $127.1 million, or $(3.25) per diluted share, compared with net loss of $37.6 million, or $(0.94) per diluted share, for the same period in 2018.
Results of Operations
Green Plains produced 238.5 million gallons of ethanol during the third quarter of 2019, compared with 304.8 million gallons for the same period in 2018. The consolidated ethanol crush margin was $(15.4) million, or $(0.06) per gallon, for the third quarter of 2019, compared with $32.3 million, or $0.11 per gallon, for the same period in 2018. The consolidated ethanol crush margin is the ethanol production segment’s operating income (loss) before depreciation and amortization, which includes corn oil, plus intercompany storage, transportation and other fees, net of related expenses.
Consolidated revenues decreased $156.7 million for the three months ended September 30, 2019 compared with the same period in 2018 primarily due to the disposition of three ethanol plants and the sale of Fleischmann’s Vinegar during the fourth quarter of 2018.
Operating income decreased $38.6 million and adjusted EBITDA decreased $45.7 million for the three months ended September 30, 2019 compared with the same period last year primarily due to decreased margins on ethanol production as well as the disposition of Fleischmann’s Vinegar during the fourth quarter of 2018. Interest expense decreased $9.2 million for the three months ended September 30, 2019, compared with the same period in 2018, primarily due to the repayment of the $500 million senior secured term loan during the fourth quarter of 2018. Income tax benefit was $12.5 million for the three months ended September 30, 2019 compared with $15.0 million for the same period in 2018.
Adjusted EBITDA, which is earnings before interest, income taxes, depreciation and amortization, plus adjustments related to operational results of Green Plains Cattle prior to its disposition which are recorded as discontinued operations and our proportional share of EBITDA adjustments of our equity method investees, for the third quarter of 2019 was $(13.4) million compared with $32.3 million for the same period last year.
Segment Information
The company reports the financial and operating performance for the following four operating segments: (1) ethanol production, which includes the production of ethanol, distillers grains and 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 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.
| GREEN PLAINS INC. | ||||||||||||||||||||||||
| SEGMENT OPERATIONS | ||||||||||||||||||||||||
| (unaudited, in thousands) | ||||||||||||||||||||||||
| Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||||||||||||
| 2019 | 2018 | % Var. | 2019 | 2018 | % Var. | |||||||||||||||||||
| Revenues: | ||||||||||||||||||||||||
| Ethanol production | $ | 484,406 | $ | 576,512 | (16.0 | ) | % | $ | 1,206,182 | $ | 1,735,703 | (30.5 | ) | % | ||||||||||
| Agribusiness and energy services | 153,943 | 186,982 | (17.7 | ) | 508,119 | 584,400 | (13.1 | ) | ||||||||||||||||
| Food and ingredients | - | 33,443 | (100.0 | ) | 1,451 | 102,277 | (98.6 | ) | ||||||||||||||||
| Partnership | 20,154 | 25,770 | (21.8 | ) | 62,066 | 77,495 | (19.9 | ) | ||||||||||||||||
| Intersegment eliminations | (26,153 | ) | (33,659 | ) | (22.3 | ) | (76,258 | ) | (99,452 | ) | (23.3 | ) | ||||||||||||
| $ | 632,350 | $ | 789,048 | (19.9 | ) | % | $ | 1,701,560 | $ | 2,400,423 | (29.1 | ) | % | |||||||||||
| Gross margin: | ||||||||||||||||||||||||
| Ethanol production | $ | (28,121 | ) | $ | 15,793 | * | % | $ | (83,184 | ) | $ | 28,812 | * | % | ||||||||||
| Agribusiness and energy services | 3,478 | 7,550 | (53.9 | ) | 21,814 | 38,082 | (42.7 | ) | ||||||||||||||||
| Food and ingredients | (3 | ) | 7,215 | * | (75 | ) | 22,383 | * | ||||||||||||||||
| Partnership | 20,154 | 25,770 | (21.8 | ) | 62,066 | 77,495 | (19.9 | ) | ||||||||||||||||
| Intersegment eliminations | 4,713 | (360 | ) | * | 458 | (263 | ) | * | ||||||||||||||||
| $ | 221 | $ | 55,968 | (99.6 | ) | % | $ | 1,079 | $ | 166,509 | (99.4 | ) | % | |||||||||||
| Depreciation and amortization: | ||||||||||||||||||||||||
| Ethanol production | $ | 15,547 | $ | 24,289 | (36.0 | ) | % | $ | 46,324 | $ | 65,284 | (29.0 | ) | % | ||||||||||
| Agribusiness and energy services | 541 | 675 | (19.9 | ) | 1,642 | 1,923 | (14.6 | ) | ||||||||||||||||
| Food and ingredients | - | 2,333 | (100.0 | ) | - | 6,788 | (100.0 | ) | ||||||||||||||||
| Partnership | 991 | 1,120 | (11.5 | ) | 2,747 | 3,406 | (19.3 | ) | ||||||||||||||||
| Corporate activities | 749 | 849 | (11.8 | ) | 2,250 | 2,769 | (18.7 | ) | ||||||||||||||||
| $ | 17,828 | $ | 29,266 | (39.1 | ) | % | $ | 52,963 | $ | 80,170 | (33.9 | ) | % | |||||||||||
| Operating income (loss): | ||||||||||||||||||||||||
| Ethanol production | $ | (49,289 | ) | $ | (15,961 | ) | 208.8 | % | $ | (147,366 | ) | $ | (60,704 | ) | 142.8 | % | ||||||||
| Agribusiness and energy services | (461 | ) | 2,850 | * | 9,184 | 22,080 | (58.4 | ) | ||||||||||||||||
| Food and ingredients | (6 | ) | 3,892 | * | (76 | ) | 12,426 | * | ||||||||||||||||
| Partnership | 12,322 | 16,725 | (26.3 | ) | 38,029 | 48,214 | (21.1 | ) | ||||||||||||||||
| Intersegment eliminations | 4,738 | (325 | ) | * | 533 | (113 | ) | * | ||||||||||||||||
| Corporate activities | (9,669 | ) | (10,965 | ) | 11.8 | (27,952 | ) | (34,879 | ) | 19.9 | ||||||||||||||
| $ | (42,365 | ) | $ | (3,784 | ) | * | % | $ | (127,648 | ) | $ | (12,976 | ) | * | % | |||||||||
| Adjusted EBITDA: | ||||||||||||||||||||||||
| Ethanol production | $ | (33,787 | ) | $ | 8,475 | * | % | $ | (101,027 | ) | $ | 4,742 | * | % | ||||||||||
| Agribusiness and energy services | (75 | ) | 3,537 | * | 10,686 | 24,035 | (55.5 | ) | ||||||||||||||||
| Food and ingredients | (7 | ) | 6,226 | * | (76 | ) | 19,213 | * | ||||||||||||||||
| Partnership | 13,594 | 17,913 | (24.1 | ) | 41,382 | 51,674 | (19.9 | ) | ||||||||||||||||
| Intersegment eliminations | 4,738 | (325 | ) | * | 533 | (113 | ) | * | ||||||||||||||||
| Corporate activities | (7,501 | ) | (9,716 | ) | 22.8 | (22,206 | ) | (30,533 | ) | 27.3 | ||||||||||||||
| EBITDA | (23,038 | ) | 26,110 | * | (70,708 | ) | 69,018 | * | ||||||||||||||||
| EBITDA adjustments related to discontinued operations | 8,469 | 5,925 | 42.9 | 17,703 | 27,979 | (36.7 | ) | |||||||||||||||||
| Proportional share of EBITDA adjustments of equity method investees | 1,186 | 311 | 281.4 | 1,827 | 745 | 145.2 | ||||||||||||||||||
| Adjusted EBITDA | $ | (13,383 | ) | $ | 32,346 | * | % | $ | (51,178 | ) | $ | 97,742 | * | % | ||||||||||
| * Percentage variance not considered meaningful. | ||||||||||||||||||||||||
| GREEN PLAINS INC. | ||||||||||||||||
| SELECTED OPERATING DATA | ||||||||||||||||
| (unaudited, in thousands) | ||||||||||||||||
| Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||||
| 2019 | 2018 | % Var. | 2019 | 2018 | % Var. | |||||||||||
| Ethanol production | ||||||||||||||||
| Ethanol sold (gallons) | 238,473 | 304,826 | (21.8 | ) | % | 617,536 | 881,518 | (29.9 | ) | % | ||||||
| Distillers grains sold (equivalent dried tons) | 617 | 811 | (23.9 | ) | 1,601 | 2,279 | (29.7 | ) | ||||||||
| Corn oil sold (pounds) | 60,607 | 78,304 | (22.6 | ) | 148,630 | 222,994 | (33.3 | ) | ||||||||
| Corn consumed (bushels) | 82,730 | 105,965 | (21.9 | ) | 214,734 | 306,395 | (29.9 | ) | ||||||||
| Agribusiness and energy services | ||||||||||||||||
| Domestic ethanol sold (gallons) | 255,537 | 317,708 | (19.6 | ) | 650,185 | 913,068 | (28.8 | ) | ||||||||
| Export ethanol sold (gallons) | 55,109 | 23,476 | 134.7 | 217,540 | 162,295 | 34.0 | ||||||||||
| 310,646 | 341,184 | (9.0 | ) | 867,725 | 1,075,363 | (19.3 | ) | |||||||||
| Partnership | ||||||||||||||||
| Storage and throughput (gallons) | 238,872 | 314,061 | (23.9 | ) | 619,704 | 926,671 | (33.1 | ) | ||||||||
| GREEN PLAINS INC. | ||||||||||||||||
| CONSOLIDATED CRUSH MARGIN | ||||||||||||||||
| (unaudited, in thousands except per gallon amounts) | ||||||||||||||||
| Three Months Ended September 30, |
Three Months Ended September 30, |
|||||||||||||||
| 2019 | 2018 | 2019 | 2018 | |||||||||||||
| ($ per gallon produced) | ||||||||||||||||
| Ethanol production operating loss | $ | (49,289 | ) | $ | (15,961 | ) | $ | (0.21 | ) | $ | (0.05 | ) | ||||
| Depreciation and amortization | 15,547 | 24,289 | 0.07 | 0.08 | ||||||||||||
| Total ethanol production | (33,742 | ) | 8,328 | (0.14 | ) | 0.03 | ||||||||||
| Intercompany fees, net: | ||||||||||||||||
| Storage and logistics (partnership) | 12,473 | 16,647 | 0.05 | 0.06 | ||||||||||||
| Marketing and agribusiness fees (agribusiness and energy services) |
5,910 | 7,372 | 0.03 | 0.02 | ||||||||||||
| Consolidated ethanol crush margin | $ | (15,359 | ) | $ | 32,347 | $ | (0.06 | ) | $ | 0.11 | ||||||
Liquidity and Capital Resources
On September 30, 2019, Green Plains had $254.0 million in total cash, cash equivalents and restricted cash, and $260.4 million available under committed revolving credit agreements, some of which are subject to restrictions and other lending conditions. Total debt outstanding at September 30, 2019, was $530.4 million, including $143.7 million outstanding under working capital revolvers and other short-term borrowing arrangements for the agribusiness and energy services segment and $140.1 million of debt related to Green Plains Partners.
Conference Call Information
On November 6, 2019, Green Plains Inc. and Green Plains Partners LP will host a joint conference call at 11 a.m. Eastern time (10 a.m. Central time) to discuss third quarter 2019 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 6652949. 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 Measures
Management uses 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 tax expense, depreciation and amortization excluding the amortization of right-of-use assets and debt issuance costs. Adjusted EBITDA includes adjustments related to operational results of Green Plains Cattle prior to its disposition which are recorded as discontinued operations and our proportional share of EBITDA adjustments of our equity method investees. 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 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 diversified commodity-processing business with operations that include corn processing, grain handling and storage and commodity marketing and logistics services. The company is one of the leading corn processors in the world and, through its adjacent businesses, is focused on the production of high-protein feed ingredients. Green Plains owns a 50% interest in Green Plains Cattle Company LLC and owns a 49.1% limited partner interest and a 2.0% general partner interest in Green Plains Partners LP. For more information about Green Plains, visit www.gpreinc.com.
About Green Plains Partners LP
Green Plains Partners LP (NASDAQ:GPP) is a fee-based Delaware limited partnership formed by Green Plains Inc. to provide fuel storage and transportation services by owning, operating, developing and acquiring ethanol and fuel storage tanks, terminals, transportation assets and other related assets and businesses. For more information about Green Plains Partners, visit www.greenplainspartners.com.
Forward-Looking Statements
This news release 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 and disposals. Other factors can include risks associated with the Green Plains’ ability to realize higher margins anticipated from the company’s high protein feed initiative or achieve anticipated savings from the opex equalization 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, 2019 |
December 31, 2018 |
|||||
| (unaudited) | ||||||
| ASSETS | ||||||
| Current assets | ||||||
| Cash and cash equivalents | $ | 235,537 | $ | 251,681 | ||
| Restricted cash | 18,502 | 31,603 | ||||
| Accounts receivable, net | 64,322 | 88,501 | ||||
| Income tax receivable | 12,933 | 12,418 | ||||
| Inventories | 250,614 | 302,600 | ||||
| Other current assets | 40,147 | 40,440 | ||||
| Current assets of discontinued operations | - | 479,399 | ||||
| Total current assets | 622,055 | 1,206,642 | ||||
| Property and equipment, net | 809,041 | 815,235 | ||||
| Operating lease right-of-use assets | 56,437 | - | ||||
| Investment in equity method investees | 93,029 | 29,714 | ||||
| Other assets | 111,509 | 91,781 | ||||
| Noncurrent assets of discontinued operations | - | 73,060 | ||||
| Total assets | $ | 1,692,071 | $ | 2,216,432 | ||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||
| Current liabilities | ||||||
| Accounts payable | $ | 126,815 | $ | 135,829 | ||
| Accrued and other liabilities | 43,440 | 52,563 | ||||
| Derivative financial instruments | 14,564 | 7,852 | ||||
| Current operating lease liabilities | 16,954 | - | ||||
| Short-term notes payable and other borrowings | 149,143 | 163,751 | ||||
| Current maturities of long-term debt | 132,999 | 54,769 | ||||
| Current liabilities of discontinued operations | - | 418,936 | ||||
| Total current liabilities | 483,915 | 833,700 | ||||
| Long-term debt | 248,289 | 298,110 | ||||
| Deferred income taxes | 1,903 | 10,123 | ||||
| Long-term operating lease liabilities | 42,142 | - | ||||
| Other liabilities | 9,360 | 11,428 | ||||
| Noncurrent liabilities of discontinued operations | - | 82 | ||||
| Total liabilities | 785,609 | 1,153,443 | ||||
| Stockholders' equity | ||||||
| Total Green Plains stockholders' equity | 792,954 | 946,819 | ||||
| Noncontrolling interests | 113,508 | 116,170 | ||||
| Total liabilities and stockholders' equity | $ | 1,692,071 | $ | 2,216,432 | ||
| GREEN PLAINS INC. | ||||||||||||||||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||||||||||
| (unaudited, in thousands except per share amounts) | ||||||||||||||||||||||||
| Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||||||||||||
| 2019 | 2018 | % Var. | 2019 | 2018 | % Var. | |||||||||||||||||||
| Revenues | ||||||||||||||||||||||||
| Product | $ | 631,032 | $ | 787,750 | (19.9 | ) | % | $ | 1,696,245 | $ | 2,395,877 | (29.2 | ) | % | ||||||||||
| Services | 1,318 | 1,298 | 1.5 | 5,315 | 4,546 | 16.9 | ||||||||||||||||||
| Total revenues | 632,350 | 789,048 | (19.9 | ) | 1,701,560 | 2,400,423 | (29.1 | ) | ||||||||||||||||
| Costs and expenses | ||||||||||||||||||||||||
| Cost of goods sold (excluding depreciation and amortization expenses reflected below) | 632,129 | 733,080 | (13.8 | ) | 1,700,481 | 2,233,914 | (23.9 | ) | ||||||||||||||||
| Operations and maintenance | 6,216 | 7,271 | (14.5 | ) | 19,314 | 23,564 | (18.0 | ) | ||||||||||||||||
| Selling, general and administrative | 18,542 | 23,215 | (20.1 | ) | 56,450 | 75,751 | (25.5 | ) | ||||||||||||||||
| Depreciation and amortization | 17,828 | 29,266 | (39.1 | ) | 52,963 | 80,170 | (33.9 | ) | ||||||||||||||||
| Total costs and expenses | 674,715 | 792,832 | (14.9 | ) | 1,829,208 | 2,413,399 | (24.2 | ) | ||||||||||||||||
| Operating loss from continuing operations | (42,365 | ) | (3,784 | ) | * | (127,648 | ) | (12,976 | ) | * | ||||||||||||||
| Other income (expense) | ||||||||||||||||||||||||
| Interest income | 767 | 745 | 3.0 | 2,813 | 2,053 | 37.0 | ||||||||||||||||||
| Interest expense | (10,548 | ) | (19,703 | ) | (46.5 | ) | (31,528 | ) | (58,330 | ) | (45.9 | ) | ||||||||||||
| Other, net | 88 | 133 | (33.8 | ) | 630 | 260 | 142.3 | |||||||||||||||||
| Total other expense | (9,693 | ) | (18,825 | ) | (48.5 | ) | (28,085 | ) | (56,017 | ) | (49.9 | ) | ||||||||||||
| Loss from continuing operations before income taxes and income (loss) from equity method investees | (52,058 | ) | (22,609 | ) | 130.3 | (155,733 | ) | (68,993 | ) | 125.7 | ||||||||||||||
| Income tax benefit | 12,530 | 14,973 | (16.3 | ) | 40,692 | 34,524 | 17.9 | |||||||||||||||||
| Income (loss) from equity method investees, net of income taxes | 644 | (250 | ) | * | 534 | (489 | ) | * | ||||||||||||||||
| Net loss from continuing operations including noncontrolling interest | (38,884 | ) | (7,886 | ) | 393.1 | (114,507 | ) | (34,958 | ) | 227.6 | ||||||||||||||
| Net income from discontinued operations, net of income taxes | 3,393 | 467 | 626.6 | 966 | 11,835 | (91.8 | ) | |||||||||||||||||
| Net loss | (35,491 | ) | (7,419 | ) | 378.4 | (113,541 | ) | (23,123 | ) | 391.0 | ||||||||||||||
| Net income attributable to noncontrolling interests | 3,479 | 5,050 | (31.1 | ) | 13,570 | 14,457 | (6.1 | ) | ||||||||||||||||
| Net loss attributable to Green Plains | $ | (38,970 | ) | $ | (12,469 | ) | 212.5 | % | $ | (127,111 | ) | $ | (37,580 | ) | 238.2 | % | ||||||||
| Earnings (loss) per share - basic and diluted: | ||||||||||||||||||||||||
| Net loss from continuing operations | $ | (1.15 | ) | $ | (0.32 | ) | $ | (3.28 | ) | $ | (1.23 | ) | ||||||||||||
| Net income from discontinued operations | 0.09 | 0.01 | 0.03 | 0.29 | ||||||||||||||||||||
| Net loss attributable to Green Plains | $ | (1.06 | ) | $ | (0.31 | ) | $ | (3.25 | ) | $ | (0.94 | ) | ||||||||||||
| Weighted average shares outstanding: | ||||||||||||||||||||||||
| Basic | 36,913 | 40,229 | 39,092 | 40,189 | ||||||||||||||||||||
| Diluted | 36,913 | 40,229 | 39,092 | 40,189 | ||||||||||||||||||||
* Percentage variance not considered meaningful.
| GREEN PLAINS INC. | ||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
| (unaudited, in thousands) | ||||||||
| Nine Months Ended September 30, |
||||||||
| 2019 | 2018 | |||||||
| Cash flows from operating activities: | ||||||||
| Loss from continuing operations including noncontrolling interest | $ | (114,507 | ) | $ | (34,958 | ) | ||
| Income from discontinued operations, net of income taxes | 966 | 11,835 | ||||||
| Net loss | (113,541 | ) | (23,123 | ) | ||||
| Noncash operating adjustments: | ||||||||
| Depreciation and amortization | 52,963 | 80,170 | ||||||
| Deferred income taxes | (38,918 | ) | (37,980 | ) | ||||
| Other | 23,750 | 19,680 | ||||||
| Net change in working capital | 57,913 | 19,315 | ||||||
| Net cash provided by (used in) operating activities - continuing operations | (17,833 | ) | 58,062 | |||||
| Net cash provided by operating activities - discontinued operations | 17,469 | 26,326 | ||||||
| Net cash provided by (used in) operating activities | (364 | ) | 84,388 | |||||
| Cash flows from investing activities: | ||||||||
| Purchases of property and equipment, net | (43,372 | ) | (29,892 | ) | ||||
| Proceeds from sale of discontinued operations, net of cash divested | 77,240 | - | ||||||
| Proceeds from the sale of assets, net | 3,469 | - | ||||||
| Investments in unconsolidated subsidiaries | (100 | ) | (2,446 | ) | ||||
| Other investing activities | - | 7,500 | ||||||
| Net cash provided by (used in) investing activities - continuing operations | 37,237 | (24,838 | ) | |||||
| Net cash used in investing activities - discontinued operations | (4,169 | ) | (125,629 | ) | ||||
| Net cash provided (used in) investing activities | 33,068 | (150,467 | ) | |||||
| Cash flows from financing activities: | ||||||||
| Net proceeds (payments) - long-term debt | 111,865 | (3,837 | ) | |||||
| Net payments - short-term borrowings | (75,496 | ) | (75,850 | ) | ||||
| Payment for repurchase of common stock | (55,884 | ) | - | |||||
| Other | (26,881 | ) | (37,359 | ) | ||||
| Net cash used in financing activities - continuing operations | (46,396 | ) | (117,046 | ) | ||||
| Net cash provided by (used in) financing activities - discontinued operations | (50,464 | ) | 105,236 | |||||
| Net cash used in financing activities | (96,860 | ) | (11,810 | ) | ||||
| Net change in cash, cash equivalents and restricted cash | (64,156 | ) | (77,889 | ) | ||||
| Cash, cash equivalents and restricted cash, beginning of period | 283,284 | 289,667 | ||||||
| Discontinued operations cash activity included above: | ||||||||
| Add: Cash balance included in current assets of discontinued operations at beginning of period | 34,911 | 22,693 | ||||||
| Less: Cash balance included in current assets of discontinued operations at end of period | - | (40,461 | ) | |||||
| Cash, cash equivalents and restricted cash, end of period | $ | 254,039 | $ | 194,010 | ||||
| Continued on following page | ||||||||
| GREEN PLAINS INC. | |||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
| (unaudited, in thousands) | |||||||
| Continued from previous page | |||||||
| Nine Months Ended September 30, |
|||||||
| 2019 | 2018 | ||||||
| Reconciliation of total cash, cash equivalents and restricted cash: | |||||||
| Cash and cash equivalents | $ | 235,537 | $ | 171,674 | |||
| Restricted cash | 18,502 | 62,797 | |||||
| Discontinued operations cash activity included above: | |||||||
| Less: Cash balance included in current assets of discontinued operations at end of period | - | (40,461 | ) | ||||
| Total cash, cash equivalents and restricted cash | $ | 254,039 | $ | 194,010 | |||
| GREEN PLAINS INC. | ||||||||||||||||
| RECONCILIATIONS TO NON-GAAP FINANCIAL MEASURES | ||||||||||||||||
| (unaudited, in thousands) | ||||||||||||||||
| Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||||
| 2019 | 2018 | 2019 | 2018 | |||||||||||||
| Net loss from continuing operations including noncontrolling interest | $ | (38,884 | ) | $ | (7,886 | ) | $ | (114,507 | ) | $ | (34,958 | ) | ||||
| Interest expense | 10,548 | 19,703 | 31,528 | 58,330 | ||||||||||||
| Income tax benefit | (12,530 | ) | (14,973 | ) | (40,692 | ) | (34,524 | ) | ||||||||
| Depreciation and amortization (1) | 17,828 | 29,266 | 52,963 | 80,170 | ||||||||||||
| EBITDA | (23,038 | ) | 26,110 | (70,708 | ) | 69,018 | ||||||||||
| EBITDA adjustments related to discontinued operations | 8,469 | 5,925 | 17,703 | 27,979 | ||||||||||||
| Proportional share of EBITDA adjustments of equity method investees | 1,186 | 311 | 1,827 | 745 | ||||||||||||
| Adjusted EBITDA | $ | (13,383 | ) | $ | 32,346 | $ | (51,178 | ) | $ | 97,742 | ||||||
| (1) Excludes amortization of operating lease right-of-use assets and amortization of debt issuance costs. | ||||||||||||||||
Contact: Jim Stark | Executive Vice President, Investor & Media Relations | 402.884.8700 | jim.stark@gpreinc.com
