• Net income attributable to the company of $8.2 million, or $0.21 per diluted share
  • Company produced a record 274.3 million gallons of ethanol

OMAHA, Neb., Aug. 01, 2016 (GLOBE NEWSWIRE) -- Green Plains Inc. (NASDAQ:GPRE) today announced financial results for the second quarter of 2016. Net income attributable to the company was $8.2 million, or $0.21 per diluted share, for the second quarter of 2016 compared with net income of $7.8 million, or $0.19 per diluted share, for the same period in 2015. Revenues were $887.7 million for the second quarter of 2016 compared with $744.5 million for the same period last year.

"We are pleased with our performance in the second quarter of 2016, which resulted in a $50 million increase of operating income compared with the first quarter," said Todd Becker, president and chief executive officer. "Our agribusiness and marketing and distribution segments reported strong results and the partnership segment generated its best results since going public in June of 2015. During the second quarter of 2016, we produced record ethanol volumes and with the current ethanol margin environment, we expect stronger production levels in the last half of the year."

During the second quarter, Green Plains produced 274.3 million gallons of ethanol compared with 238.7 million gallons for the same period in 2015. The consolidated ethanol crush margin was $45.3 million, or $0.17 per gallon, for the second quarter of 2016 compared with $46.5 million, or $0.20 per gallon, for the same period in 2015. The consolidated ethanol crush margin is the ethanol production segment's operating income before depreciation and amortization, which includes corn oil production, plus intercompany storage, transportation and other fees, net of related expenses.

Revenues were $1.6 billion for the six-month period ended June 30, 2016, compared with $1.5 billion for the same period in 2015. Net loss for the six-month period ended June 30, 2016, was $(15.9) million, or $(0.42) per diluted share, compared with net income of $4.5 million, or $0.11 per diluted share, for the same period in 2015.

"Ethanol demand continues to grow, supported by a 3% growth in domestic ethanol consumption and a 6% increase in U.S. ethanol exports year-to-date," commented Becker. "We continue to execute on our core strategy of capital allocation with an intense focus on growing our company, including both organic and acquisitive opportunities."

Second Quarter Highlights
  • During the second quarter of 2016, Green Plains repurchased 323,290 shares of common stock for approximately $6.0 million. To date, 514,990 shares of common stock have been repurchased for approximately $10.0 million under the company's $100 million share repurchase program. 
  • On June 14, 2016, Green Plains and Jefferson Gulf Coast Energy Partners, a subsidiary of Fortress Transportation and Infrastructure Investors LLC, announced the formation of a 50/50 joint venture to construct and operate an intermodal export and import fuels terminal at Jefferson's existing Beaumont, Texas terminal. The joint venture is expected to invest approximately $55 million in its Phase I development, focused initially on storage and throughput capabilities for multiple grades of ethanol. Green Plains will offer its interest in the joint venture to the partnership once commercial development is complete. 
  • On June 12, 2016, Green Plains entered into an asset purchase agreement with Abengoa Bioenergy of Illinois, LLC and Abengoa Bioenergy of Indiana, LLC to acquire two ethanol plants located in Madison, Ill. and Mount Vernon, Ind. for approximately $200 million in cash, plus certain inventory adjustments and liabilities. The two plants have combined annual production capacity of approximately 180 million gallons of ethanol. The sellers and other affiliates have pending cases under Chapter 11 of the U.S. Bankruptcy Code. The asset purchase agreement constitutes a stalking horse bid, which is subject to bidding procedures and receipt of higher or otherwise better bids at the proposed auction for the plants, and approval by the U.S. Bankruptcy Court. If Green Plains is not the successful bidder at the auction, the sellers must pay a break-up fee equal to $2.5 million per plant, plus reimbursement of expenses up to $500,000. Should Green Plains submit the winning bid, the company expects the transaction to close during the third quarter of 2016 and to offer the plants' transportation and storage assets to the partnership.

Results of OperationsConsolidated revenues increased $143.2 million for the three months ended June 30, 2016, compared with the same period in 2015. Revenues from ethanol, corn oil and grain sales increased $103.4 million, $21.4 million and $11.0 million, respectively. Ethanol revenues were affected by increased volumes sold, partially offset by lower average realized prices. Corn oil revenues and grain revenues were impacted by increased volumes sold.

Operating income increased $3.0 million for the three months ended June 30, 2016, compared with the same period last year primarily due to increased margins on merchant trading activity and cattle. Interest expense remained flat for the three months ended June 30, 2016, compared with the same period in 2015. Income tax expense was $5.5 million for the three months ended June 30, 2016, compared with $5.2 million for the same period in 2015.

Earnings before interest, income taxes, depreciation and amortization (EBITDA) for the second quarter of 2016 was $47.7 million compared with $39.7 million for the same period last year.

 
GREEN PLAINS INC.
SEGMENT OPERATIONS
(unaudited, in thousands)
                                               
  Three Months Ended June 30,   Six Months Ended June 30,
    2016       2015     % Var.     2016       2015     % Var.
Revenues:                      
Ethanol production $   515,726     $   464,879       10.9 %   $   939,316     $   896,601       4.8 %
Agribusiness     472,140         343,576       37.4         857,532         664,694       29.0  
Marketing and distribution     771,653         656,768       17.5         1,437,844         1,310,030       9.8  
Partnership     25,493         3,445     *       49,281         6,841     *
Intersegment eliminations    (897,285 )      (724,178 )     23.9       (1,647,042 )     (1,395,288 )     18.0  
      887,727         744,490       19.2         1,636,931         1,482,878       10.4  
Gross margin:                      
Ethanol production     32,695         53,982     *       22,821         77,371     *
Agribusiness     8,392         4,256       97.2         13,903         9,709       43.2  
Marketing and distribution     15,377         7,515       104.6         16,364         16,552       (1.1 )
Partnership     25,493         3,445     *       49,281         6,841     *
Intersegment eliminations     (3,754 )       (1,303 )     188.0         350         3,381       (89.6 )
      78,203         67,895       15.2         102,719         113,854       (9.8 )
Operating income (loss):                      
Ethanol production     10,555         34,192     *       (22,696 )       37,612     *
Agribusiness     5,560         2,258       146.2         8,788         5,468       60.7  
Marketing and distribution     10,626         3,453       207.7         8,656         7,858       10.2  
Partnership     14,803         (5,284 )   *       27,874         (10,432 )   *
Intersegment eliminations     (3,754 )       (1,303 )     188.1         350         3,381       (89.6 )
Segment operating income     37,790         33,316       13.4         22,972         43,887       (47.7 )
Corporate activities     (10,381 )       (8,914 )     16.5         (18,209 )       (15,381 )     18.4  
  $   27,409     $   24,402       12.3     $   4,763     $   28,506       (83.3 )
                       
* Percentage variance not considered meaningful. 

GREEN PLAINS INC.
OPERATING DATA BY PRODUCT
(unaudited, in thousands)
                               
  Three Months Ended June 30,   Six Months Ended June 30,
  2016   2015   % Var.   2016   2015   % Var.
                       
Ethanol production                      
Ethanol sold (gallons)   274,271     238,737     14.9 %     521,226     471,230     10.6 %
Distillers grains sold (tons) 734   631     16.5     1,381   1,260     9.6  
Corn oil sold (pounds)   64,514     62,355     3.5       124,354     120,057     3.6  
Corn consumed (bushels)   95,638     84,162     13.6       182,169     166,209     9.6  
                       
Agribusiness                      
Grain sold (bushels)   98,973     72,959     35.7       186,930     143,384     30.4  
                       
Marketing and distribution                      
Ethanol sold (gallons)   355,665     299,717     18.7       681,825     575,641     18.4  
                       
Partnership                      
Storage and throughput  (gallons)   274,271     -      *       521,226     -      *  
                       
* Percentage variance not considered meaningful.

GREEN PLAINS INC.
CONSOLIDATED CRUSH MARGIN
(unaudited, in thousands except per gallon amounts)
                               
  Three Months Ended June 30,   Three Months Ended June 30,
    2016       2015       2016       2015  
  ($ in thousands)   ($ per gallon produced)
               
Ethanol production operating income $   10,555     $   34,192     $   0.04     $   0.14  
Depreciation and amortization     15,150         13,783         0.06         0.06  
Total ethanol production     25,705         47,975         0.10         0.20  
               
Intercompany fees, net:              
Storage and logistics (partnership)     15,006         (5,630 )       0.05         (0.02 )
Marketing and agribusiness fees     4,630         4,115         0.02         0.02  
Consolidated crush margin $   45,341     $   46,460     $   0.17     $   0.20  
               

Liquidity and Capital Resources On June 30, 2016, Green Plains had $405.7 million in cash and cash equivalents, and $182.4 million available under revolving credit agreements, some of which are subject to restrictions and other lending conditions. Total debt outstanding was $730.7 million, including $245.6 million outstanding under working capital revolvers and other short-term borrowing arrangements for the marketing and distribution, and agribusiness segments at June 30, 2016.

Conference Call InformationOn Aug. 2, 2016, Green Plains Inc. and Green Plains Partners LP will host a joint conference call at 11 a.m. Eastern time (10 a.m. Central time) to discuss second quarter 2016 financial and operating results for each company. Domestic and international participants can access the conference call by dialing 888.427.9376 and 719.457.2689, respectively. Participants are advised to call at least 10 minutes prior to the start time. Alternatively, the conference call and presentation can be accessed on Green Plains' website at http://investor.gpreinc.com/events.cfm.

Non-GAAP Financial MeasuresManagement uses earnings before interest, income taxes, depreciation and amortization, or EBITDA, and consolidated ethanol crush margin to measure the company's financial performance and to internally manage its businesses. Management believes these measures provide useful information to investors for comparison with peer and other companies. These measures should not be considered an alternative to net income or segment operating income, which are determined in accordance with generally accepted accounting principles. EBITDA calculations may vary from company to company. Accordingly, the company's computation of EBITDA may not be comparable with a similarly-titled measure of another company.

About Green Plains Inc.Green Plains Inc. (NASDAQ:GPRE) is a diversified commodity-processing business with operations related to ethanol, distillers grains and corn oil production; grain handling and storage; a cattle feedlot; and commodity marketing and distribution services. The company processes 12 million tons of corn annually, producing over 1.2 billion gallons of ethanol, approximately 3.5 million tons of livestock feed and 275 million pounds of industrial grade corn oil at full capacity. Green Plains owns a 62.5% limited partner interest and a 2.0% general partner interest in Green Plains Partners. For more information about Green Plains, visit www.gpreinc.com.

About Green Plains Partners 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 contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Forward-looking statements include words such as "anticipates," "believes," "estimates," "expects," "goal," "intends," "plans," "potential," "predicts," "should," "will," and other words with similar meanings in connection with future operating or financial performance. Such statements are based on management's current expectations, which are subject to various factors, risks and uncertainties that may cause actual results, outcomes, timing and performance to differ materially from those expressed or implied. Green Plains may experience significant fluctuations in future operating results due to a number of economic conditions, including competition in the industries in which Green Plains operates; commodity market risks, including those resulting from current weather conditions; financial market risks; counterparty risks; risks associated with changes to federal policy or regulation; risks related to closing and achieving anticipated results from acquisitions; risks associated with the joint venture to commercialize algae production; and other risks detailed in Green Plains' reports filed with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended Dec. 31, 2015, and subsequent filings with the SEC. Green Plains is not obligated nor intends to update its forward-looking statements at any time unless it is required by applicable securities laws. Unpredictable or unknown factors not discussed in this release could also have material adverse effects on forward-looking statements.

Consolidated Operating Data and Financial Results
 
GREEN PLAINS INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
  June 30, 2016   December 31, 2015
  (unaudited)    
ASSETS      
Current assets      
Cash and cash equivalents $   386,920     $   384,867  
Restricted cash     18,785         27,018  
Accounts receivable     140,597         96,150  
Inventories     280,700         353,957  
Other current assets     73,597         50,585  
Total current assets     900,599         912,577  
Property and equipment, net     915,726         922,070  
Other assets     82,580         83,273  
Total assets $   1,898,905     $   1,917,920  
       
LIABILITIES AND STOCKHOLDERS' EQUITY      
Current liabilities      
Accounts payable $   111,465     $   166,963  
Accrued and other liabilities     35,644         32,026  
Short-term notes payable and other borrowings     245,637         226,928  
Current maturities of long-term debt     6,603         4,507  
Other current liabilities     22,644         8,245  
Current liabilities     421,993         438,669  
Long-term debt     478,489         432,139  
Other liabilities     68,503         88,203  
Total liabilities     968,985         959,011  
       
Stockholders' equity      
Total Green Plains stockholders' equity     786,994         797,830  
Noncontrolling interests     142,926         161,079  
Total liabilities and stockholders' equity $   1,898,905     $   1,917,920  

GREEN PLAINS INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited, in thousands except per share amounts)
                                               
  Three Months Ended June 30,   Six Months Ended June 30,
    2016       2015     % Var.     2016       2015     % Var.
Revenues                      
Product revenues $   885,772     $   742,383       19.3 %   $   1,632,956     $   1,478,686       10.4 %
Service revenues     1,955         2,107       (7.2 )       3,975         4,192       (5.2 )
Total revenues     887,727         744,490       19.2         1,636,931         1,482,878       10.4  
Costs and expenses                      
Cost of goods sold     809,524         676,595       19.6         1,534,212         1,369,024       12.1  
Operations and maintenance expenses     8,504         7,102       19.7         17,149         14,135       21.3  
Selling, general and administrative expenses     23,589         20,226       16.6         43,961         39,201       12.1  
Depreciation and amortization   expenses     18,701         16,165       15.7         36,846         32,012       15.1  
Total costs and expenses     860,318         720,088       19.5         1,632,168         1,454,372       12.2  
Operating income     27,409         24,402       12.3         4,763         28,506       (83.3 )
Other income (expense)                      
Interest income     368         210       75.2         778         430       80.9  
Interest expense     (10,499 )       (10,564 )     (0.6 )       (21,297 )       (19,722 )     8.0  
Other, net     1,178         (1,034 )     (213.9 )       (497 )       (1,965 )     (74.7 )
Total other expense     (8,953 )       (11,388 )     (21.4 )       (21,016 )       (21,257 )     (1.1 )
Income (loss) before income taxes     18,456         13,014       41.8         (16,253 )       7,249       (324.2 )
Income tax expense (benefit)     5,471         5,222       4.8         (9,422 )       2,775       (439.5 )
Net income (loss)     12,985         7,792       66.6         (6,831 )       4,474       (252.7 )
Net income attributable to noncontrolling  interests     4,794         -       *       9,116         -       *
Net income (loss) attributable to Green  Plains $   8,191     $   7,792       5.1     $   (15,947 )   $   4,474       (456.4 )
                       
Earnings per share:                      
Net income (loss) attributable to Green  Plains - basic $   0.21     $   0.20         $   (0.42 )   $   0.12      
Net income (loss) attributable to Green  Plains - diluted $   0.21     $   0.19         $   (0.42 )   $   0.11      
                       
Weighted avg. shares outstanding:                      
Basic     38,425         38,027             38,311         37,916      
Diluted     38,536         40,075             38,311         39,565      
                       
* Percentage variance not considered meaningful.

GREEN PLAINS INC.
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(unaudited, in thousands)
       
  Six Months Ended June 30,
    2016       2015  
Cash flows from operating activities:      
Net income (loss) $   (6,831 )   $   4,474  
Noncash operating adjustments:      
Depreciation and amortization     36,846         32,012  
Deferred income taxes     (17,936 )       11,323  
Other     10,662         6,985  
Net change in working capital     (36,946 )       (31,590 )
Net cash provided (used) by operating activities     (14,205 )       23,204  
       
Cash flows from investing activities:      
Purchases of property and equipment     (29,084 )       (28,690 )
Acquisition of businesses, net of cash acquired     65         -   
Other     994         (3,309 )
Net cash used by investing activities     (28,025 )       (31,999 )
       
Cash flows from financing activities:      
Net proceeds (payments) - long-term debt     44,777         (10,344 )
Net proceeds (payments) - short-term borrowings     15,387         (9,426 )
Other     (15,881 )       2,543  
Net cash provided (used) by financing activities     44,283         (17,227 )
       
Net change in cash and cash equivalents     2,053         (26,022 )
Cash and cash equivalents, beginning of period     384,867         425,510  
Cash and cash equivalents, end of period $   386,920     $   399,488  
       

GREEN PLAINS INC.
RECONCILIATIONS TO NON-GAAP FINANCIAL MEASURES
(unaudited, in thousands)
                               
  Three Months Ended June 30,   Six Months Ended June 30,
    2016       2015       2016       2015  
Net income $   12,985     $   7,792     $   (6,831 )   $   4,474  
Interest expense     10,499         10,564         21,297         19,722  
Income taxes     5,471         5,222         (9,422 )       2,775  
Depreciation and amortization     18,701         16,165         36,846         32,012  
EBITDA $   47,656     $   39,743     $   41,890     $   58,983  
               

Contact: Jim Stark, Vice President - Investor and Media Relations, Green Plains Inc. (402) 884-8700

Primary Logo