• Net income attributable to the company of $7.9 million, or $0.20 per diluted share
  • Company completes nearly $500 million in acquisitions over the last 45 days
  • Based on current markets, the company expects a stronger fourth quarter

OMAHA, Neb., Oct. 31, 2016 (GLOBE NEWSWIRE) -- Green Plains Inc. (NASDAQ:GPRE) today announced financial results for the third quarter of 2016. Net income attributable to the company was $7.9 million, or $0.20 per diluted share, for the third quarter of 2016 compared with net income of $6.2 million, or $0.16 per diluted share, for the same period in 2015. Revenues were $841.9 million for the third quarter of 2016 compared with $742.8 million for the same period last year.

"We generated $42 million of segment operating income for the third quarter of 2016, which is our best performance since the end of 2014. Based on current markets, we expect a stronger fourth quarter," said Todd Becker, president and chief executive officer. "We have grown significantly over the last year as we have increased our ethanol production capacity organically and through acquisitions by nearly 50 percent to approximately 1.5 billion gallons per year, and acquired Fleischmann's Vinegar Company. We continue to focus on our core competencies as we efficiently integrate these acquisitions and aggressively grow our platform to create long-term shareholder value."

During the third quarter, Green Plains produced 292.2 million gallons of ethanol compared with 215.6 million gallons for the same period in 2015. The consolidated ethanol crush margin was $52.6 million, or $0.18 per gallon, for the third quarter of 2016 compared with $34.9 million, or $0.16 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 $2.5 billion for the nine-month period ended Sept. 30, 2016, compared with $2.2 billion for the same period in 2015. Net loss for the nine-month period ended Sept. 30, 2016, was $(8.0) million, or $(0.21) per diluted share, compared with net income of $10.7 million, or $0.27 per diluted share, for the same period in 2015.

"We experienced a stable ethanol margin environment in the third quarter as we continued to see strong ethanol demand worldwide driven by increasing consumption of gasoline and broader appetites for an efficient source of octane," added Becker. "As we continue to expand and diversify our operations, we expect to immediately benefit from the recently acquired businesses."

Recent Highlights
  • On Aug. 15, 2016, Green Plains completed a private offering of $170 million aggregate principal amount of 4.125% convertible senior notes that will mature on Sept. 1, 2022. The net proceeds from the offering were used to finance the recent acquisitions. 
  • On Sept. 23, 2016, Green Plains acquired three ethanol plants located in Madison, Ill., Mount Vernon, Ind. and York. Neb. for approximately $237 million in cash plus certain working capital adjustments from Abengoa BioEnergy. Concurrently, the ethanol storage assets were sold to Green Plains Partners LP for $90 million. All three plants are currently operational and will add 236 million gallons per year of ethanol production capacity. 
  • On Oct. 3, 2016, Green Plains acquired SCI Ingredients Holdings, Inc. and its wholly owned subsidiary, Fleischmann's Vinegar Company, Inc., for approximately $250 million, financing the transaction with $135 million of debt and the balance with cash on hand. Fleischmann's Vinegar Company will operate as a standalone business.

Results of OperationsConsolidated revenues increased $99.1 million for the three months ended Sept. 30, 2016, compared with the same period in 2015. Revenues from ethanol, corn oil and cattle sales increased $82.7 million, $20.9 million and $13.1 million, respectively, while revenues from grain decreased $17.1 million. Ethanol and cattle revenues were affected by increased volumes sold , partially offset by lower average realized prices. Corn oil revenues were impacted by increased volumes sold. Grain revenues were impacted by both lower volumes sold and lower average realized prices.

Operating income increased $11.0 million for the three months ended Sept. 30, 2016, compared with the same period last year primarily due to increased margins on ethanol production and cattle. Interest expense increased $1.6 million for the three months ended Sept. 30, 2016, compared with the same period last year primarily due to higher average debt outstanding. Income tax expense was $5.1 million for the three months ended Sept. 30, 2016, compared with income tax benefit of $0.6 million for the same period in 2015.

Earnings before interest, income taxes, depreciation and amortization (EBITDA) for the third quarter of 2016 was $49.1 million compared with $36.3 million for the same period last year.

GREEN PLAINS INC.
SEGMENT OPERATIONS
(unaudited, in thousands)
                             
    Three Months Ended September 30,   Nine Months Ended September 30,
     
      2016       2015     % Var.     2016       2015     % Var.
Revenues:                            
Ethanol production   $ 532,441     $ 389,917       36.6   %   $ 1,471,757     $ 1,286,519       14.4   %
Agribusiness     443,330       310,190       42.9         1,300,862       974,883       33.4    
Marketing and distribution     735,983       670,327       9.8         2,173,826       1,980,360       9.8    
Partnership     26,205       21,410       22.4         75,487       28,251       *    
Intersegment eliminations     (896,107 )     (649,047 )     38.1         (2,543,149 )     (2,044,338 )     24.4    
      841,852       742,797       13.3         2,478,783       2,225,675       11.4    
Gross margin:                            
Ethanol production     38,216       24,569       55.5         61,037       101,924       (40.1 )  
Agribusiness     8,748       2,195       298.5         22,651       11,904       90.3    
Marketing and distribution     9,660       13,393       (27.9 )       26,023       30,033       (13.4 )  
Partnership     26,205       21,410       22.4         75,487       28,251       *    
Intersegment eliminations     140       1,882       (92.6 )       490       5,184       (90.5 )  
      82,969       63,449       30.8         185,688       177,296       4.7    
Operating income (loss):                            
Ethanol production     15,311       5,528       177.0         (7,385 )     43,139       (117.1 )  
Agribusiness     6,251       365       *         15,039       5,833       157.8    
Marketing and distribution     5,252       9,406       (44.2 )       13,908       17,446       (20.3 )  
Partnership     15,084       11,030       36.8         42,958       416       *    
Intersegment eliminations     141       1,882       (92.5 )       491       5,264       (90.7 )  
Segment operating income     42,039       28,211       49.0         65,011       72,098       (9.8 )  
Corporate activities     (11,184 )     (8,378 )     33.5         (29,393 )     (23,759 )     23.7    
    $ 30,855     $ 19,833       55.6   %   $ 35,618     $ 48,339       (26.3 ) %
                             
* Percentage variance not considered meaningful.
                             

 
GREEN PLAINS INC.
OPERATING DATA BY PRODUCT
(unaudited, in thousands)
                                             
    Three Months Ended September 30,       Nine Months Ended September 30,
         
    2016     2015     % Var.       2016     2015     % Var.
Ethanol production                                            
Ethanol sold (gallons)   292,238     215,561     35.6   %       813,464     686,791     18.4   %
Distillers grains sold (tons)   790     577     36.8           2,170     1,837     18.1    
Corn oil sold (pounds)   72,176     55,918     29.1           196,530     175,975     11.7    
Corn consumed (bushels)   102,113     75,538     35.2           284,282     241,720     17.6    
                                             
Agribusiness                                            
Grain sold (bushels)   112,754     63,171     78.5           320,612     206,554     55.2    
                                             
Marketing and distribution                                            
Ethanol sold (gallons)   335,980     294,348     14.1           1,017,806     869,989     17.0    
                                             
Partnership                                            
Storage and throughput (gallons)   292,238     215,561     35.6           813,464     215,561     *    
                                             
* Percentage variance not considered meaningful.
                                             

 
  GREEN PLAINS INC.
CONSOLIDATED CRUSH MARGIN
(unaudited, in thousands except per gallon amounts)
                 
    Three Months Ended September 30,   Three Months Ended September 30,
     
      2016       2015       2016       2015  
    ($ in thousands)   ($ per gallon produced)
                 
Ethanol production operating income   $ 15,311     $ 5,528     $ 0.05     $ 0.03  
Depreciation and amortization     15,725       13,887       0.06       0.06  
Total ethanol production     31,036       19,415       0.11       0.09  
                 
Intercompany fees, net:                
Storage and logistics (partnership)     15,675       11,852       0.05       0.05  
Marketing and agribusiness fees     5,885       3,622       0.02       0.02  
Consolidated crush margin   $ 52,596     $ 34,889     $ 0.18     $ 0.16  
                 

Liquidity and Capital ResourcesOn Sept. 30, 2016, Green Plains had $441.6 million in cash and cash equivalents, and $168.9 million available under revolving credit agreements, some of which are subject to restrictions and other lending conditions. Total debt outstanding was $923.5 million, including $229.1 million outstanding under working capital revolvers and other short-term borrowing arrangements for the marketing and distribution, and agribusiness segments at Sept. 30, 2016.

Conference Call InformationOn Nov. 1, 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 third quarter 2016 financial and operating results for each company. Domestic and international participants can access the conference call by dialing 888.765.5576 and 913.312.0837, 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. A transcript of the conference call will also be made available on the company's website as soon as practicable.

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 is the second largest consolidated owner of ethanol production facilities in the world, with 17 dry mill plants, producing nearly 1.5 billion gallons of ethanol at full capacity. Green Plains, through its wholly owned subsidiary Fleischmann's Vinegar Company, provides specialized ingredient solutions for leading food and feed manufacturers. 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 growth potential of the algal biomass industry; risks associated with the recent acquisitions of three Abengoa BioEnergy ethanol plants and Fleischmann's Vinegar; 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 Financial Results
GREEN PLAINS INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
         
  September 30, 2016     December 31,2015
     
  (unaudited)      
ASSETS        
Current assets        
Cash and cash equivalents $ 407,359       $ 384,867  
Restricted cash   34,219         27,018  
Accounts receivable, net   132,574         96,150  
Inventories   324,287         353,957  
Other current assets   54,583         50,585  
Total current assets   953,022         912,577  
Property and equipment, net   1,139,592         922,070  
Other assets   84,344         83,273  
Total assets $ 2,176,958       $ 1,917,920  
         
LIABILITIES AND STOCKHOLDERS' EQUITY        
Current liabilities        
Accounts payable $ 129,317       $ 166,963  
Accrued and other liabilities   46,373         32,026  
Short-term notes payable and other borrowings   229,086         226,928  
Current maturities of long-term debt   13,244         4,507  
Other current liabilities   24,927         8,245  
Current liabilities   442,947         438,669  
Long-term debt   681,182         432,139  
Other liabilities   87,290         88,203  
Total liabilities   1,211,419         959,011  
         
Stockholders' equity        
Total Green Plains stockholders' equity   849,833         797,830  
Noncontrolling interests   115,706         161,079  
Total liabilities and stockholders' equity $ 2,176,958       $ 1,917,920  
         

GREEN PLAINS INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited, in thousands except per share amounts)
                             
    Three Months Ended September 30,   Nine Months Ended September 30,
     
      2016       2015     % Var.     2016       2015     % Var.
Revenues                            
Product   $ 839,786     $ 740,634       13.4   %   $ 2,472,741     $ 2,219,319       11.4   %
Service     2,066       2,163       (4.5 )       6,042       6,356       (4.9 )  
Total revenues     841,852       742,797       13.3         2,478,783       2,225,675       11.4    
Costs and expenses                            
Cost of goods sold     758,883       679,348       11.7         2,293,095       2,048,379       11.9    
Operations and maintenance     8,564       7,715       11.0         25,713       21,850       17.7    
General and administrative     24,264       19,280       25.9         68,225       58,473       16.7    
Depreciation and amortization     19,286       16,621       16.0         56,132       48,634       15.4    
Total costs and expenses     810,997       722,964       12.2         2,443,165       2,177,336       12.2    
Operating income     30,855       19,833       55.6         35,618       48,339       (26.3 )  
Other income (expense)                            
Interest income     484       319       51.7         1,263       749       68.5    
Interest expense     (11,819 )     (10,196 )     15.9         (33,117 )     (29,918 )     10.7    
Other, net     (1,553 )     (519 )     199.2         (2,050 )     (2,484 )     (17.5 )  
Total other expense     (12,888 )     (10,396 )     24.0         (33,904 )     (31,653 )     7.1    
Income before income taxes     17,967       9,437       90.4         1,714       16,686       (89.7 )  
Income tax expense (benefit)     5,083       (604 )     *         (4,339 )     2,171       *    
Net income     12,884       10,041       28.3         6,053       14,515       (58.3 )  
Net income attributable to noncontrolling interests     4,956       3,862       28.3         14,072       3,862       264.4    
Net income (loss) attributable to Green Plains   $ 7,928     $ 6,179       28.3   %   $ (8,019 )   $ 10,653       (175.3 ) %
                             
Earnings per share:                            
Net income (loss) attributable to Green Plains - basic   $ 0.21     $ 0.16           $ (0.21 )   $ 0.28        
Net income (loss) attributable to Green Plains - diluted   $ 0.20     $ 0.16           $ (0.21 )   $ 0.27        
                             
Weighted average shares outstanding:                            
Basic     38,282       38,066             38,301       37,966        
Diluted     39,136       38,556             38,301       39,266        
                             
* Percentage variance not considered meaningful.                        

GREEN PLAINS INC.
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(unaudited, in thousands)
         
    Nine Months Ended September 30,
   
      2016       2015  
Cash flows from operating activities:        
Net income   $ 6,053     $ 14,515  
Noncash operating adjustments:        
Depreciation and amortization     56,132       48,634  
Deferred income taxes     (16,413 )     (39,645 )
Other     14,549       11,745  
Net change in working capital     660       (42,729 )
Net cash provided (used) by operating activities     60,981       (7,480 )
         
Cash flows from investing activities:        
Purchases of property and equipment     (35,658 )     (44,464 )
Acquisition of businesses, net of cash acquired     (252,488 )     -  
Investments in unconsolidated subsidiaries     (1,388 )     (3,309 )
Net cash used by investing activities     (289,534 )     (47,773 )
         
Cash flows from financing activities:        
Net proceeds (payments) - long-term debt     296,422       (16,419 )
Net proceeds (payments) - short-term borrowings     1,843       (9,285 )
Other     (47,220 )     151,310  
Net cash provided by financing activities     251,045       125,606  
         
Net change in cash and cash equivalents     22,492       70,353  
Cash and cash equivalents, beginning of period     384,867       425,510  
Cash and cash equivalents, end of period   $ 407,359     $ 495,863  
         

GREEN PLAINS INC.
RECONCILIATIONS TO NON-GAAP FINANCIAL MEASURES
(unaudited, in thousands)
                       
    Three Months Ended September 30,     Nine Months Ended September 30,
       
      2016         2015         2016         2015  
Net income   $ 12,884       $ 10,041       $ 6,053       $ 14,515  
Interest expense     11,819         10,196         33,117         29,918  
Income taxes     5,083         (604 )       (4,339 )       2,171  
Depreciation and amortization     19,286         16,621         56,132         48,634  
EBITDA   $ 49,072       $ 36,254       $ 90,963       $ 95,238  
                       

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

Primary Logo