Green Plains Inc.
Feb 22, 2010

Green Plains Renewable Energy, Inc. Reports Fourth Quarter and Year-End 2009 Results

Results for the Fourth Quarter of 2009 , Feb 22, 2010 (GlobeNewswire via COMTEX News Network) -- Net income of $23.1 million -- Diluted earnings per share of $0.91

Results for the Full Year of 2009

  --  Net income of $19.8 million
  --  Diluted earnings per share of $0.79


OMAHA, Neb., Feb. 22, 2010 (GLOBE NEWSWIRE) -- Green Plains Renewable Energy, Inc. (Nasdaq:GPRE) announced today its financial results for the fourth quarter and full-year ended December 31, 2009. Net income attributable to Green Plains was $23.1 million, or $0.91 per diluted share, for the quarter ended December 31, 2009, compared to a net loss attributable to Green Plains of $1.8 million, or $0.08 per share, for the same period of 2008. Revenues were $436.7 million for the fourth quarter of 2009, compared to revenues of $183.2 million for the same period in 2008. For the twelve months ended December 31, 2009, revenues were $1.3 billion, with net income attributable to Green Plains of $19.8 million, or $0.79 per diluted share.

"All of our businesses performed well in the fourth quarter," said Todd Becker, President and Chief Executive Officer. "We generated significantly higher operating income during the quarter primarily due to a strong performance from our ethanol production segment. In the fourth quarter, we produced 122 million gallons of ethanol which exceeds our expected capacity. The combination of higher production volumes, a stronger margin environment, and harvest activities for agribusiness resulted in a record quarter."

"During 2009 and more recently, we have continued to see demand for ethanol increase driven by expanded mandates and positive blend margins. This combined with a record corn harvest resulted in an improved margin environment in late 2009 and early 2010. While we are pleased with these trends, our focus remains on risk management, operational excellence, safety and expanding our platform in the coming year as opportunities present themselves," commented Becker.

"I am proud of the many accomplishments our team achieved during 2009. We fortified our operating, administrative and commercial activities while at the same time demonstrated our ability to significantly grow our operating segments. Our business model has been tested through one of the most challenging environments the ethanol industry has seen and continues to prove itself. As a result, we were able to reach profitability for the full year. We believe our industry, and more importantly, our company is on solid footing for the coming years," said Becker.

EBITDA, which is defined as earnings before interest, income taxes, noncontrolling interests, depreciation and amortization, was $37.8 million for the quarter ended December 31, 2009, compared with $6.5 million for the same period in 2008. Green Plains had available liquidity of $138.7 million, including $102.3 million total cash and equivalents, and $36.4 million available under committed loan agreements (subject to satisfaction of specified lending conditions and covenants) at December 31, 2009. EBITDA for the twelve months ended December 31, 2009 was $67.7 million.

2009 Business Highlights

  --  On October 14, 2009, Green Plains unveiled BioProcessAlgae, LLC's Phase
      I Grower Harvester TM pilot project. BioProcessAlgae has completed the
      installation of Phase I of the multi-phase pilot project and algae
      production has commenced at the company's Shenandoah ethanol plant.
  --  Green Plains Trade Group LLC, a wholly-owned subsidiary, entered into an
      agreement to provide third-party ethanol marketing services to
      Lincolnway Energy, LLC at the end of the third quarter. The addition of
      Lincolnway, located near Nevada, Iowa, increased our third-party
      marketing services to four plants with annual expected ethanol
      production totaling 360 million gallons.
  --  On July 2, 2009, Green Plains completed the acquisition of two Nebraska
      ethanol plants located near Central City and Ord. The addition of these
      plants increased the company's expected ethanol production capacity by
      45%. Green Plains acquired the ethanol plants from a lender group for
      $121.0 million which provided debt financing to fund the purchases.
  --  On January 15, 2009, Green Plains Trade entered into an agreement to
      provide third-party ethanol marketing services to Bushmills Ethanol,
      Inc. of Atwater, Minnesota.
  --  Green Plains acquired majority interest in Houston-based biofuel
      terminal operator Blendstar, LLC as of January 1, 2009. The transaction
      involved a membership interest purchase whereby Green Plains acquired
      51% of Blendstar for $8.9 million. Blendstar currently operates nine
      blending and terminaling facilities in the south central United States.


Conference Call

On February 22, 2010, Green Plains will hold a conference call to discuss its financial results for the fourth quarter and full-year ended December 31, 2009. Green Plains' participants will include Todd Becker, President and Chief Executive Officer, Jerry Peters, Chief Financial Officer and Steve Bleyl, Executive Vice President -- Ethanol Marketing. The time of the call is 11:00 a.m. ET / 10:00 a.m. CT. To participate by telephone, the domestic dial-in number is 877-868-1833 and the international dial-in number is 914-495-8604. The conference call will be webcast and accessible at www.gpreinc.com. Listeners are advised to go to the website at least 10 minutes prior to the call to register, download and install any necessary audio software. The conference call will also be archived and available for replay through March 8, 2010.

About Green Plains Renewable Energy, Inc.

Green Plains Renewable Energy, Inc. (Nasdaq:GPRE) is North America's fourth largest ethanol producer, operating a total of six ethanol plants in Indiana, Iowa, Nebraska and Tennessee with annual expected operating capacity totaling approximately 480 million gallons. Green Plains also markets and distributes ethanol for four third-party ethanol producers with annual expected operating capacity totaling approximately 360 million gallons. Green Plains owns 51% of Blendstar, LLC, a biofuel terminal operator which operates nine blending or terminaling facilities with approximately 495 million gallons per year of total throughput capacity in seven states in the south central United States. Green Plains operates grain storage facilities and complementary agronomy and petroleum businesses in northern Iowa and southern Minnesota.

Safe Harbor

This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Such statements are identified by the use of words such as "anticipates," "estimates," "expects," "will," "predicts," "intends," "plans," "believes," and other words and terms of similar meaning in connection with any discussion of future operating or financial performance. Such statements are based on management's current expectations and are subject to various factors, risks and uncertainties that may cause actual results, outcome of events, timing and performance to differ materially from those expressed or implied by such forward-looking statements. Green Plains may experience significant fluctuations in future operating results due to a number of economic conditions, including, but not limited to, competition in the ethanol and other industries in which the company competes; commodity market risks, financial market risks, counter-party risks, risks associated with changes to federal policy or regulation, and other risks detailed in the company's reports filed with the Securities and Exchange Commission, including its Annual Report on Form 10-KT/A and any amendments thereto for the nine-month transition period ended December 31, 2008 and in the company's subsequent filings with the SEC. Green Plains assumes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. The cautionary statements in this report expressly qualify all of our forward-looking statements. In addition, the company is not obligated, and does not intend, to update any of its forward-looking statements at any time unless an update is required by applicable securities laws.

Consolidated Financial Results

The following are our consolidated statements of operations (in thousands, except per share amounts):



                                                                  Nine-Month

                                                                  Transition
                                                                    Period
                                Three Months Ended    Year Ended     Ended
                                   December 31,       December     December
                               --------------------      31,         31,

                                  2009       2008       2009         2008
                               ---------  ---------  -----------  ----------

  Revenues                      $436,714   $183,221   $1,304,174    $188,758

  Cost of goods sold             392,449    167,898    1,221,745     175,444
                               ---------  ---------  -----------  ----------
    Gross profit                  44,265     15,323       82,429      13,314
  Selling, general and
   administrative expenses        14,501     14,444       44,923      18,467
                               ---------  ---------  -----------  ----------

    Operating income (loss)       29,763        879       37,506     (5,153)
                               ---------  ---------  -----------  ----------

  Other income (expense)
   Interest income                    80        121          225         150
   Interest expense, net of
    amounts capitalized          (6,048)    (3,871)     (18,049)     (3,933)

  Other, net                       (197)        783          563         887
                               ---------  ---------  -----------  ----------
    Total other income
     (expense)                   (6,165)    (2,967)     (17,261)     (2,896)
                               ---------  ---------  -----------  ----------

  Income (loss) before income
   taxes                          23,598    (2,088)       20,245     (8,049)

  Income tax provision               280         --           91          --
                               ---------  ---------  -----------  ----------
  Net income (loss)               23,318    (2,088)       20,154     (8,049)
  Net (income) loss
   attributable to

   noncontrolling interests        (268)        239        (364)       1,152
                               ---------  ---------  -----------  ----------

  Net income (loss)
   attributable to Green
   Plains                        $23,050   $(1,849)      $19,790   $ (6,897)
                               =========  =========  ===========  ==========

  Earnings (loss) per share:

   Basic                           $0.92    $(0.08)        $0.79     $(0.56)
                               =========  =========  ===========  ==========

   Diluted                         $0.91    $(0.08)        $0.79     $(0.56)
                               =========  =========  ===========  ==========

  Weighted average shares
   outstanding:

   Basic                          24,930     22,048       24,895      12,366
                               =========  =========  ===========  ==========

   Diluted                        25,313     22,048       25,069      12,366
                               =========  =========  ===========  ==========

The merger with VBV, the startup of our Bluffton and Obion plants, the acquisition of Blendstar and the acquisitions of our Central City and Ord ethanol plants affected comparability of results for the periods presented. The nine-month transition period reflects only the activity for VBV prior to the merger on October 15, 2008, and the results of the combined entity for the period following the merger through December 31, 2008. As a result, the nine-month transition period includes less than four months of activity at our Bluffton ethanol plant, along with the results of our Shenandoah and Superior ethanol plants and Green Plains Grain from October 15, 2008 to the end of the year, and less than two months of activity at our Obion ethanol plant. The year ended December 31, 2009 includes a full year of activity at our Bluffton, Obion, Shenandoah and Superior ethanol plants, as well as at Green Plains Grain and Blendstar, and approximately five months of activity at our Central City and Ord ethanol plants. Similarly, the comparison of the fourth quarter of 2009 to the fourth quarter of 2008 are affected by the timing of the above mentioned plant startups and acquisitions.

The events described above account for most of the overall increase in revenues of $253.5 million, the increase in gross profit of $28.9 million and the increase in operating income of $28.9 million when the fourth quarter of 2009 is compared with the same period of 2008. Interest expense increased $2.2 million for the fourth quarter of 2009 as compared to the same quarterly period in 2008, due to interest expense relating to businesses developed or acquired. Income tax expense was $0.3 million during the quarter ended December 31, 2009. Current period income tax expense reflected a tax benefit for the reversal of a valuation allowance for deferred tax assets established in prior periods due to the uncertainty of realizing these assets. At December 31, 2009, Green Plains had approximately $5.1 million in valuation allowances remaining for federal deferred tax assets which may be available to reduce future income tax expense.

Operating Segment Information

Green Plains' operating segments are as follows: (1) production of ethanol and related co-products (collectively referred to as "ethanol production"); (2) grain warehousing and marketing, as well as sales and related services of agronomy and petroleum products (collectively referred to as "agribusiness"); and (3) marketing and distribution of company-produced and third-party ethanol and distillers grains (collectively referred to as "marketing and distribution"). Corporate operating expenses not directly related to a specific operating segment are reflected in the table below as "corporate activities."

The following are revenues, gross profit and operating income by segment for the periods indicated (in thousands):

                                Three      Three
                               Months     Months
                                Ended      Ended     Year Ended

                              December    December   December
                              31, 2009    31, 2008   31, 2009
                             ----------  ---------  -----------

  Revenues
   Ethanol production          $235,888   $131,114     $731,253
   Agribusiness                  71,068     68,785      220,615
   Marketing and
    distribution                368,615     71,408    1,096,091
   Intersegment
    eliminations              (238,857)   (88,086)    (743,785)
                             ----------  ---------  -----------

   Total revenues              $436,714   $183,221   $1,304,174
                             ==========  =========  ===========

  Gross profit
   Ethanol production            31,121      6,674       49,155
   Agribusiness                   9,245      8,554       21,210
   Marketing and
    distribution                  3,904        192       11,975
   Intersegment
    eliminations                    (5)       (97)           89
                             ----------  ---------  -----------

   Total gross profit           $44,265    $15,323      $82,429
                             ==========  =========  ===========

  Operating income (loss)
   Ethanol production           $28,653        $11      $40,435
   Agribusiness                   4,592      5,310        7,654
   Marketing and
    distribution                  1,524       (48)        2,761
   Intersegment
    eliminations                    (9)       (97)           85
                             ----------  ---------  -----------
   Segment operating income      34,760      5,176       50,935

   Corporate activities         (4,996)    (4,297)     (13,429)
                             ----------  ---------  -----------

   Total operating income       $29,763       $879      $37,506
                             ==========  =========  ===========

Intersegment revenues and corresponding costs were eliminated in consolidation. Certain amounts previously reported have been reclassified to conform to the current presentation.

Ethanol Production Segment

The chart below presents key operating data within our ethanol production segment for the periods indicated:

                                Three     Three
                                Months    Months     Year
                                Ended     Ended     Ended

                               December  December  December
                               31, 2009  31, 2008  31, 2009
                               --------  --------  --------

  Ethanol sold                  121,794    61,547   379,393
   (thousands of gallons)

  Distillers grains sold            353       174     1,098
   (thousands of equivalent
    dried tons)

  Corn consumed                  43,930    23,169   136,569
   (thousands of bushels)

Revenues for the ethanol production segment increased $104.8 million to $235.9 million for the quarter ended December 31, 2009. The company sold 121.8 million gallons of ethanol within the ethanol production segment during the quarter, an increase of 60.2 million gallons over the same period of 2008. This increase is primarily due to the commencement of production at certain ethanol plants and several acquisitions summarized above. Ethanol production during the fourth quarter of 2009 represented 101% of the company's average daily operating capacity.

Cost of goods sold in the ethanol production segment during the quarter ended December 31, 2009 increased $80.3 million to $204.8 million. This increase was primarily due to the consumption of 20.8 million more bushels of corn during the fourth quarter of 2009 when compared to the same period in 2008. Operating income for the quarter ended December 31, 2009 increased by $28.6 million from breakeven during the same quarter of 2008. The improvement in operating income was a result of improved margins and higher production volumes as mentioned above. Depreciation and amortization expense for the ethanol production segment was $7.9 million during the fourth quarter of 2009 compared to $6.1 million during the same period of 2008.

The following chart summarizes the approximate percentage of forecasted production or usage, as applicable, for the next 12 months under fixed-price contracts as of December 31, 2009:


                             Portion
                            Subject to
                           Fixed-Price
                            Contracts
                           -----------
  Ethanol Production               15%
  Distillers Grains
   Production                      19%
  Corn Usage                       16%
  Natural Gas Usage                15%

Agribusiness Segment

The agribusiness segment revenues increased $2.3 million to $71.1 million for the quarter ended December 31, 2009. The company sold 10.5 million bushels of grain and 22.8 thousand tons of fertilizer during the fourth quarter of 2009. Cost of goods sold in the agribusiness segment during the quarter ended December 31, 2009 was $61.9 million, an increase of $1.6 million over the same period of 2008. Operating income was $4.6 million during the quarter ended December 31, 2009, compared to operating income of $5.3 million during the same period of 2008.

Marketing and Distribution Segment

Revenues of the marketing and distribution segment increased $297.2 million to $368.6 million during the quarter ended December 31, 2009 when compared to the same period of 2008. The increase is driven by the volumes marketed from our ethanol production segment as well as production from the third-party plants. The company sold 186.8 million gallons of ethanol within the marketing and distribution segment during the quarter ended December 31, 2009, compared to 61.6 million gallons sold during the same period of 2008. Operating income was $1.5 million during the quarter ended December 31, 2009 compared to a slight loss during the same period of 2008.

EBITDA

Management uses EBITDA to compare the financial performance of its business segments and to internally manage those segments. Management believes that EBITDA provides useful information to investors as a measure of comparison with peer and other companies. EBITDA should not be considered an alternative to, or more meaningful than, net income or cash flow as determined in accordance with generally accepted accounting principles. EBITDA calculations may vary from company to company. Accordingly, our computation of EBITDA may not be comparable with a similarly-titled measure of another company. The following sets forth the reconciliation of net income attributable to Green Plains to EBITDA for the periods indicated (in thousands):

                                      Three      Three
                                      Months    Months      Year
                                      Ended      Ended     Ended

                                     December   December  December
                                     31, 2009   31, 2008  31, 2009
                                     --------  ---------  --------

  Net income (loss) attributable
   to Green Plains                    $23,050   $(1,849)   $19,790
  Net (income) loss attributable
   to noncontrolling interests            268      (239)       364
   Interest expense                     6,048      3,871    18,049
   Income taxes                           280         --        91

   Depreciation and amortization        8,151      4,675    29,414
                                     --------  ---------  --------

  EBITDA                              $37,797     $6,458   $67,708
                                     ========  =========  ========

Summary Balance Sheets

The following is condensed consolidated balance sheet information (in thousands):

                           December   December
                             31,        31,

                             2009       2008
                          ---------  ---------
   ASSETS

  Current assets           $252,446   $190,655
  Property and
   equipment, net           596,235    495,772

  Other assets               29,400      6,694
                          ---------  ---------

   Total assets            $878,081   $693,121
                          =========  =========

   LIABILITIES AND
    STOCKHOLDERS' EQUITY

  Current liabilities      $174,332   $108,304
  Long-term debt            388,573    299,011

  Other liabilities           4,468      5,821
                          ---------  ---------
   Total liabilities        567,373    413,136

  Total stockholders'
   equity                   310,708    279,985
                          ---------  ---------
   Total liabilities and
    stockholders' equity   $878,081   $693,121
                          =========  =========

At December 31, 2009, Green Plains had $102.3 million in total cash and equivalents and $36.4 million available under committed loan agreements (subject to satisfaction of specified lending conditions and covenants). Green Plains had total assets of approximately $878.1 million and total stockholders' equity of approximately $310.7 million. As of December 31, 2009, Green Plains had approximately 25.0 million common shares outstanding.

This news release was distributed by GlobeNewswire, www.globenewswire.com

SOURCE: Green Plains Renewable Energy

CONTACT:  Green Plains Renewable Energy, Inc.
Jim Stark, Vice President - Investor and Media Relations
(402) 884-8700
BPC Financial Marketing
Investor Contact:
John Baldissera
(800) 368-1217

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