Form 8-KA_

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549



FORM 8-K/A



CURRENT REPORT

Pursuant to Section 13 OR 15(d) of the

Securities Exchange Act of 1934





8



Date of Report (Date of earliest event reported)

November 15, 2018



GREEN PLAINS INC.

(Exact name of registrant as specified in its charter)



Iowa

(State or other jurisdiction of incorporation)





 



 

001-32924

84-1652107

(Commission file number)

(IRS employer identification no.)

 

 

1811 Aksarben Drive, Omaha, Nebraska

68106

(Address of principal executive offices)

(Zip code)





(402) 884-8700

(Registrant’s telephone number, including area code)





Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:



Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)



Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)



Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))



Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))



Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).  Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.


 

 

EXPLANATORY NOTE



On November 15, 2018, Green Plains Inc. (the Company”) filed with the Securities and Exchange Commission a Current Report on Form 8-K (the “Initial 8-K”) to disclose that it had closed on its previously announced sale (the “Valero Transaction”) of three ethanol plants located in Bluffton, Indiana, Lakota, Iowa, and Riga, Michigan to Valero Renewable Fuels Company, LLC (“Valero”). Correspondingly, the Company also announced it had closed on the acquisition of storage assets and assignment of rail transportation assets from Green Plains Partners LP (the “Partnership Transaction”) which were then disposed of in the Valero Transaction.



This Form 8-K/A amends the Initial 8-K to provide pro forma financial information for the Valero Transaction and the Partnership Transaction as described in Item 9.01 below. Except as otherwise provided in this Form 8-K/A, the Initial 8-K remains unchanged.



Item 9.01.  Financial Statements and Exhibits.



(b) Pro Forma Financial Information.



The unaudited pro forma condensed consolidated balance sheet of Green Plains Inc. as of September 30, 2018, and the unaudited pro forma condensed consolidated statements of operations for the nine months ended September 30, 2018, and for the fiscal year ended December 31, 2017, and notes thereto, are attached as Exhibit 99.1 to this Form 8-K/A and incorporated in this Item 9.01(b) by reference.



(d) Exhibits. The following exhibits are filed as part of this report.





 

Number

Description

99.1

Unaudited Pro Forma Condensed Consolidated Financial Statements.











 


 

 

SIGNATURES



Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.





 



 

Date: November 21, 2018

 

Green Plains Inc.

 

 

By: /s/ John W. Neppl                  

John W. Neppl
Chief Financial Officer

(Principal Financial Officer)



 


Exhibit 991_

Exhibit 99.1

GREEN PLAINS INC. AND SUBSIDIARIES

UNAUDITED PRO FORMA CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

AND RELATED NOTES THERETO



Introduction and Basis of Presentation



On October 8, 2018, Green Plains Inc. (the “Company”) entered into an asset purchase agreement for the sale of three ethanol plants located in Bluffton, Indiana, Lakota, Iowa, and Riga, Michigan, and certain related assets from subsidiaries, to Valero Renewable Fuels Company, LLC (“Valero”) for the sale price of $319.8 million, including net working capital and other adjustments (the “Valero Transaction”). Correspondingly, the Company entered into a separate asset purchase agreement with Green Plains Partners LP (the “Partnership”) for $120.9 million (the “Partnership Transaction”) to acquire the related storage assets to be disposed of in the sale to Valero and convey 460 of the 3,500 railcars leased by the Partnership to the Company. The transactions were previously described in a Current Report of the Partnership on Form 8-K filed with the United States Securities and Exchange Commission on October 10, 2018. On November 15, 2018, the Company closed on both the Partnership Transaction and the Valero Transaction. The Company received as consideration from Valero approximately $319.8 million, while the Partnership received as consideration from the Company 8.7 million Partnership units and a portion of the general partner interest equating to 0.2 million hypothetical limited partner units to maintain the general partner’s 2% interest. In addition, the Partnership also received as additional consideration approximately $2.6 million in cash related to the present value gain on railcars transferred, subject to certain post-closing adjustments.



The following unaudited pro forma condensed consolidated balance sheet as of September 30, 2018, of the Company is presented as if the Valero Transaction and the Partnership Transaction had occurred on September 30, 2018. The unaudited pro forma condensed consolidated statements of operations for the nine months ended September 30, 2018, and for the year ended December 31, 2017, are presented as if such events had occurred on January 1, 2017.



The unaudited pro forma condensed consolidated balance sheet and statements of operations included herein are for informational purposes only and are not necessarily indicative of the results that might have occurred had the Valero Transaction and the Partnership Transaction taken place on the respective dates assumed. Actual results may differ significantly from those reflected in the unaudited condensed consolidated pro forma financial statements for various reasons, including but not limited to, the differences between the assumptions used to prepare the unaudited pro forma condensed consolidated financial statements and actual results. The pro forma adjustments in the unaudited pro forma condensed consolidated balance sheet and the statements of operations included herein include the use of estimates and assumptions as described in the accompanying notes. The pro forma adjustments are based on information available to the Company at the time these unaudited pro forma condensed consolidated financial statements were prepared. The Company believes its current estimates provide a reasonable basis of presenting the significant effects of the Valero Transaction and the Partnership Transaction.



The unaudited pro forma condensed consolidated financial statements should be read in conjunction with the accompanying notes in addition to the following:



the historical financial statements of the Company as of and for the year ended December 31, 2017, and the related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017;



the historical unaudited financial statements of the Company as of and for the nine months ended September 30, 2018, and the related notes included in the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2018.













 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

GREEN PLAINS INC. AND SUBSIDIARIES

UNAUDITED PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET

AS OF SEPTEMBER 30, 2018

(in thousands)



 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

Pro Forma

 

 

 



Green

 

Disposition of

 

Adjustments

 

 

Pro Forma



Plains Inc.

 

Ethanol Plants

 

(Note 2)

 

 

Consolidated



 

 

 

 

 

 

 

 

ASSETS

Current assets

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

$

171,674 

 

$

(3,622)

 

$

319,829 

(a)

 

$

224,320 



 

 

 

 

 

 

 

(271,023)

(b)

 

 

 



 

 

 

 

 

 

 

218 

(c)

 

 

 

Restricted cash

 

62,797 

 

 

8,252 

 

 

 -

 

 

 

54,545 

Accounts receivable, net

 

134,950 

 

 

4,314 

 

 

 -

 

 

 

130,636 

Income taxes receivable

 

13,211 

 

 

 -

 

 

(15)

(d)

 

 

13,196 

Inventories

 

765,198 

 

 

30,514 

 

 

 -

 

 

 

734,684 

Prepaid expenses and other

 

15,529 

 

 

1,076 

 

 

 -

 

 

 

14,453 

Derivative financial instruments

 

24,254 

 

 

4,649 

 

 

 -

 

 

 

19,605 

Total current assets

 

1,187,613 

 

 

45,183 

 

 

49,009 

 

 

 

1,191,439 

Property and equipment, net

 

1,143,551 

 

 

184,476 

 

 

 -

 

 

 

959,075 

Goodwill

 

182,879 

 

 

6,188 

 

 

 -

 

 

 

176,691 

Other assets

 

170,791 

 

 

4,897 

 

 

 -

 

 

 

165,894 

Total assets

$

2,684,834 

 

$

240,744 

 

$

49,009 

 

 

$

2,493,099 



 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Accounts payable

$

155,663 

 

$

8,012 

 

$

 -

 

 

$

147,651 

Accrued and other liabilities

 

47,955 

 

 

5,437 

 

 

 -

 

 

 

42,518 

Derivative financial instruments

 

41,725 

 

 

3,841 

 

 

 -

 

 

 

37,884 

Short-term notes payable and other borrowings

 

556,566 

 

 

 -

 

 

(21,023)

(b)

 

 

535,543 

Current maturities of long-term debt

 

65,614 

 

 

 -

 

 

 -

 

 

 

65,614 

Total current liabilities

 

867,523 

 

 

17,290 

 

 

(21,023)

 

 

 

829,210 



 

 

 

 

 

 

 

 

 

 

 

 

Long-term debt

 

767,177 

 

 

 -

 

 

(250,000)

(b)

 

 

523,933 



 

 

 

 

 

 

 

6,756 

(e)

 

 

 

Deferred income taxes

 

21,764 

 

 

25,272 

 

 

3,713 

(d)

 

 

205 

Other liabilities

 

14,235 

 

 

4,662 

 

 

 -

 

 

 

9,573 

Total liabilities

 

1,670,699 

 

 

47,224 

 

 

(260,554)

 

 

 

1,362,921 



 

 

 

 

 

 

 

 

 

 

 

 

Stockholders' equity

 

 

 

 

 

 

 

 

 

 

 

 

Common stock

 

47 

 

 

 -

 

 

 -

 

 

 

47 

Additional paid-in capital

 

695,143 

 

 

 -

 

 

 -

 

 

 

695,143 

Retained earnings

 

276,083 

 

 

193,520 

 

 

309,563 

(f)

 

 

392,126 

Accumulated other comprehensive loss

 

(17,176)

 

 

 -

 

 

 -

 

 

 

(17,176)

Treasury stock

 

(55,184)

 

 

 -

 

 

 -

 

 

 

(55,184)

Total Green Plains stockholders' equity

 

898,913 

 

 

193,520 

 

 

309,563 

 

 

 

1,014,956 

Noncontrolling interests

 

115,222 

 

 

 -

 

 

 -

 

 

 

115,222 

Total stockholders' equity

 

1,014,135 

 

 

193,520 

 

 

309,563 

 

 

 

1,130,178 

Total liabilities and stockholders' equity

$

2,684,834 

 

$

240,744 

 

$

49,009 

 

 

$

2,493,099 



 

 

 

 

 

 

 

 

 

 

 

 







 

 


 









 

 

 

 

 

 

 

 

 

 

 

 

GREEN PLAINS INC. AND SUBSIDIARIES

UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS

FOR THE YEAR ENDED DECEMBER 31, 2017

(in thousands, except per share amounts)



 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

Pro Forma

 

 

 

 



Green

 

Disposition of

 

Adjustments

 

 

Pro Forma



Plains Inc.

 

Ethanol Plants

 

(Note 2)

 

 

Consolidated

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

Product revenues

$

3,589,981 

 

$

421,866 

 

$

 -

 

 

$

3,168,115 

Service revenues

 

6,185 

 

 

 -

 

 

 -

 

 

 

6,185 

Total revenues

 

3,596,166 

 

 

421,866 

 

 

 -

 

 

 

3,174,300 



 

 

 

 

 

 

 

 

 

 

 

 

Costs and expenses

 

 

 

 

 

 

 

 

 

 

 

 

Cost of goods sold (excluding depreciation and amortization expenses reflected below)

 

3,301,587 

 

 

401,165 

 

 

 -

 

 

 

2,900,422 

Operations and maintenance expenses

 

33,448 

 

 

3,915 

 

 

 -

 

 

 

29,533 

Selling, general and administrative expenses

 

112,024 

 

 

6,084 

 

 

 -

 

 

 

105,940 

Depreciation and amortization expenses

 

107,361 

 

 

21,056 

 

 

 -

 

 

 

86,305 

Total costs and expenses

 

3,554,420 

 

 

432,220 

 

 

 -

 

 

 

3,122,200 

Operating income (loss)

 

41,746 

 

 

(10,354)

 

 

 -

 

 

 

52,100 



 

 

 

 

 

 

 

 

 

 

 

 

Other income (expense)

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

1,597 

 

 

11 

 

 

 -

 

 

 

1,586 

Interest expense

 

(90,160)

 

 

 -

 

 

18,621 

(g)

 

 

(71,539)

Other, net

 

3,666 

 

 

2,759 

 

 

 -

 

 

 

907 

Total other income (expense)

 

(84,897)

 

 

2,770 

 

 

18,621 

 

 

 

(69,046)

Income (loss) before income taxes

 

(43,151)

 

 

(7,584)

 

 

18,621 

 

 

 

(16,946)

Income tax benefit (expense)

 

124,782 

 

 

29,305 

 

 

(7,020)

(d)

 

 

88,457 

Net income

 

81,631 

 

 

21,721 

 

 

11,601 

 

 

 

71,511 

Net income attributable to noncontrolling interests

 

20,570 

 

 

305 

 

 

 -

 

 

 

20,265 

Net income attributable to Green Plains

$

61,061 

 

$

21,416 

 

$

11,601 

 

 

$

51,246 



 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to Green Plains - basic

$

1.56 

 

 

 

 

 

 

 

 

$

1.31 

Net income attributable to Green Plains - diluted

$

1.47 

 

 

 

 

 

 

 

 

$

1.27 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

39,247 

 

 

 

 

 

 

 

 

 

39,247 

Diluted

 

50,240 

 

 

 

 

 

 

 

 

 

50,240 



 

 

 

 

 

 

 

 

 

 

 

 



 

 


 



 

 

 

 

 

 

 

 

 

 

 

 

GREEN PLAINS INC. AND SUBSIDIARIES

UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2018

(in thousands, except per share amounts)



 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

Pro Forma

 

 

 

 



Green

 

Disposition of

 

Adjustments

 

 

Pro Forma



Plains Inc.

 

Ethanol Plants

 

(Note 2)

 

 

Consolidated

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

Product revenues

$

3,027,678 

 

$

330,850 

 

$

 -

 

 

$

2,696,828 

Service revenues

 

4,546 

 

 

 -

 

 

 -

 

 

 

4,546 

Total revenues

 

3,032,224 

 

 

330,850 

 

 

 -

 

 

 

2,701,374 



 

 

 

 

 

 

 

 

 

 

 

 

Costs and expenses

 

 

 

 

 

 

 

 

 

 

 

 

Cost of goods sold (excluding depreciation and amortization expenses reflected below)

 

2,835,344 

 

 

310,765 

 

 

 -

 

 

 

2,524,579 

Operations and maintenance expenses

 

23,564 

 

 

2,562 

 

 

 -

 

 

 

21,002 

Selling, general and administrative expenses

 

80,817 

 

 

4,138 

 

 

(218)

(c)

 

 

76,461 

Depreciation and amortization expenses

 

84,010 

 

 

16,890 

 

 

 -

 

 

 

67,120 

Total costs and expenses

 

3,023,735 

 

 

334,355 

 

 

(218)

 

 

 

2,689,162 

Operating income (loss)

 

8,489 

 

 

(3,505)

 

 

218 

 

 

 

12,212 



 

 

 

 

 

 

 

 

 

 

 

 

Other income (expense)

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

2,136 

 

 

 

 

 -

 

 

 

2,127 

Interest expense

 

(67,548)

 

 

 -

 

 

15,016 

(g)

 

 

(52,532)

Other, net

 

2,362 

 

 

 

 

 -

 

 

 

2,361 

Total other income (expense)

 

(63,050)

 

 

10 

 

 

15,016 

 

 

 

(48,044)

Loss before income taxes

 

(54,561)

 

 

(3,495)

 

 

15,234 

 

 

 

(35,832)

Income tax benefit (expense)

 

31,438 

 

 

5,429 

 

 

(3,728)

(d)

 

 

22,281 

Net income (loss)

 

(23,123)

 

 

1,934 

 

 

11,506 

 

 

 

(13,551)

Net income attributable to noncontrolling interests

 

14,457 

 

 

238 

 

 

 -

 

 

 

14,219 

Net income (loss) attributable to Green Plains

$

(37,580)

 

$

1,696 

 

$

11,506 

 

 

$

(27,770)



 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

Net loss attributable to Green Plains - basic

$

(0.94)

 

 

 

 

 

 

 

 

$

(0.69)

Net loss attributable to Green Plains - diluted

$

(0.94)

 

 

 

 

 

 

 

 

$

(0.69)

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

40,189 

 

 

 

 

 

 

 

 

 

40,189 

Diluted

 

40,189 

 

 

 

 

 

 

 

 

 

40,189 



 

 

 

 

 

 

 

 

 

 

 

 



 

 


 

GREEN PLAINS INC. AND SUBSIDIARIES

NOTES TO PRO FORMA CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

1.

BASIS OF PRESENTATION

See “Introduction” for more information regarding the basis of presentation for our unaudited pro forma condensed consolidated financial statements. For the purpose of this pro forma analysis, the sale price, including estimated working capital adjustments, have been allocated. Finalization of working capital adjustments is not expected to materially impact the adjustments shown above. 



2.

PRO FORMA ADJUSTMENTS

Adjustments under the heading “Pro Forma Adjustment” in the accompanying pro forma condensed consolidated financial statements represent the following:



(a)

Reflects cash received at closing on the sale of the ethonal plants, including working capital considerations.

(b)

Reflects the actual re-payment of debt that occurred upon closing.

(c)

Reflects the reversal of transaction costs incurred through September 30, 2018.

(d)

Reflects the income tax impact related to interest savings as a result of repayment of debt.

(e)

Reflects the write-off of a portion of debt issuance costs totaling $6.8 million, which is not presented in the pro forma condensed consolidated statement of operations as it is nonrecurring in nature and will not have a continuing impact on the Company.

(f)

Reflects the impact on equity related to the cash received at closing on the sale of the ethanol plants,  the gain on the sale of the ethanol plants of $96.6 million and the reversal of transaction costs incurred through September 30, 2018. The gain on the sale of the ethanol plants is not presented in the pro forma condensed consolidated statement of operations as it is nonrecurring in nature and will not have a continuing impact on the Company.

(g)

Reflects the interest foregone as a result of repayment of debt. For the periods ended December 31, 2017 and September 30, 2018, the weighted average interest rate on the debt repaid was approximately 6.9% and 7.4%, respectively.