Green Plains Inc.
Oct 21, 2010

Green Plains Renewable Energy, Inc. Reports Third Quarter 2010 Financial Results

Oct 21, 2010 (GlobeNewswire via COMTEX News Network) --

  --  Net income of $7.4 million
  --  Diluted EPS of $0.23


OMAHA, Neb., Oct. 21, 2010 (GLOBE NEWSWIRE) -- Green Plains Renewable Energy, Inc. (Nasdaq:GPRE) announced today its financial results for the third quarter of 2010. Net income attributable to Green Plains was $7.4 million, or $0.23 per diluted share, compared to net income of $5.5 million, or $0.22 per diluted share, for the same period of 2009. Revenues were $496 million for the third quarter of 2010 compared to $362 million for the same period of 2009.

"We are pleased to report our sixth consecutive profitable quarter," said Todd Becker, President and Chief Executive Officer. "All segments of our business contributed to this result with positive operating income. In ethanol production, we continued to take advantage of opportunities to lock away forward margins as they became available. We also had another strong operating quarter, producing over 129 million gallons of ethanol which exceeded our expected capacity due to process improvements implemented over the past year," Becker added.

"We expect to achieve another growth milestone in the near future when we complete the previously-announced acquisition of Global Ethanol, LLC. With the addition of the two Global ethanol plants, we will have an expected annual operating capacity of approximately 657 million gallons of ethanol and expect to market and distribute over one billion gallons annually. We will continue to look for additional consolidation opportunities that may become available at attractive valuations," stated Becker.

"We were pleased that the EPA recently approved the E15 waiver for model year 2007 and newer vehicles. It is a good first step toward higher blends of ethanol in our fuel supply and we anticipate a decision from the EPA in the near future on model year 2001 through 2006 vehicles. This approval demonstrates that ethanol is a permanent and growing piece of our nation's energy needs," commented Becker.

Revenues for the nine-month period ended September 30, 2010 were $1,376 million compared to $867 million for the same period of 2009. Net income attributable to Green Plains for the nine-month period ended September 30, 2010 was $31.6 million, or $1.05 per diluted share, compared to a net loss of $3.3 million, or $(0.13) per share, for the same period of 2009.

"In the past few months, ethanol industry operating margins expanded as ethanol prices increased more than the recent increases in corn prices. As a result, we expect an even stronger fourth quarter. We believe improved ethanol margins combined with a solid harvest quarter from our expanded agribusiness segment and a modest contribution from corn oil extraction should drive a solid finish to 2010," added Becker.

EBITDA, which is defined as earnings before interest, income taxes, noncontrolling interests, depreciation and amortization, was $26.1 million for the third quarter of 2010 compared to $19.3 million for the same period of 2009. Green Plains had $177.0 million total cash and equivalents and $17.6 million available under committed loan agreements (subject to satisfaction of specified lending conditions and covenants) at September 30, 2010. EBITDA for the nine-month period ended September 30, 2010 was $85.6 million compared to $29.9 million for the same period of 2009. (For reconciliations to net income (loss) attributable to Green Plains, see "EBITDA" below.)

Recent Business Highlights

  --  On September 28, 2010, Green Plains announced that it had entered into a
      definitive agreement to acquire Global Ethanol, LLC. Global owns two
      operating ethanol plants which are located in Lakota, IA and Riga, MI
      and have a combined annual production capacity of approximately 157
      million gallons ("mmgy"). The acquisition will increase Green Plains'
      capacity by 31% to approximately 657 mmgy. Once the transaction is
      closed, Green Plains expects to market and distribute more than one
      billion gallons of ethanol production on an annual basis.
  --  On October 13, 2010, the U.S. Environmental Protection Agency waived a
      limitation on selling fuel that is more than 10 percent ethanol for
      certain vehicles. The waiver applies to fuel that contains up to 15
      percent ethanol -- known as E15 -- and currently only applies to model
      year 2007 and newer cars and light trucks.
  --  On October 16, 2010, BioProcess Algae, LLC and Green Plains received
      final approval of the Iowa Power Fund's $2.0 million matching grant for
      Phase II of its Grower Harvester(TM) algae project located at Green
      Plains' Shenandoah, IA ethanol plant. The expansion is expected to cost
      $4.7 million and is scheduled to be operational by the end of 2010. The
      cost of the Phase II project will be shared by the joint venture
      partners and the matching grant provided by the Iowa Power Fund. As part
      of Phase II funding, Green Plains increased its ownership in BioProcess
      Algae to 35%.
  --  In October 2010, Green Plains began producing corn oil at one of its
      ethanol plants and expects to begin corn oil production at two other
      plants later in the fourth quarter. It is anticipated that
      implementation at all of its ethanol plants will cost approximately
      $18.0 million in total and will be completed by the end of the second
      quarter of 2011.


Conference Call

On October 22, 2010, Green Plains will hold a conference call to discuss its financial results for the quarter ended September 30, 2010. Green Plains' participants will include Todd Becker, President and Chief Executive Officer, Jerry Peters, Chief Financial Officer, and Jeff Briggs, Chief Operating Officer. 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 November 5, 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 500 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 Iowa, southern Minnesota and western Tennessee.

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, the timely completion of corn oil extraction projects, expected corn oil recovery rates and operating expenses, risks related to closing and achieving anticipated results from acquisitions and other risks detailed in the Company's reports filed with the Securities and Exchange Commission, including its Annual Report on Form 10-K, as amended, for the year ended December 31, 2009 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 consolidated statements of operations for Green Plains (in thousands, except per share amounts):


                            Three Months Ended      Nine Months Ended
                              September 30,           September 30,
                           --------------------  ----------------------

                              2010       2009       2010         2009
                           ---------  ---------  -----------  ---------

  Revenues                  $496,299   $361,723   $1,376,132   $867,460

  Cost of goods sold         464,294    340,321    1,275,981    829,296
                           ---------  ---------  -----------  ---------
      Gross profit            32,005     21,402      100,151     38,164
  Selling, general and
   administrative
   expenses                   15,016     10,648       41,582     30,413
                           ---------  ---------  -----------  ---------

      Operating income        16,989     10,754       58,569      7,751
                           ---------  ---------  -----------  ---------
  Other income (expense)
    Interest income               97         18          223        145
    Interest expense         (6,158)    (5,657)     (16,473)   (12,001)

    Other, net                 (430)        245        (540)        752
                           ---------  ---------  -----------  ---------

      Total other expense    (6,491)    (5,394)     (16,790)   (11,104)
                           ---------  ---------  -----------  ---------

  Income (loss) before
   income taxes               10,498      5,360       41,779    (3,353)
  Income tax expense
   (benefit)                   3,083      (189)        9,989      (189)
                           ---------  ---------  -----------  ---------
  Net income (loss)            7,415      5,549       31,790    (3,164)
  Net income attributable
   to noncontrolling
   interests                    (49)       (95)        (163)       (96)
                           ---------  ---------  -----------  ---------
  Net income (loss)
   attributable to Green
   Plains                     $7,366     $5,454      $31,627   $(3,260)
                           =========  =========  ===========  =========
  Earnings (loss) per
   share:

    Basic                      $0.23      $0.22        $1.06    $(0.13)
                           =========  =========  ===========  =========

    Diluted                    $0.23      $0.22        $1.05    $(0.13)
                           =========  =========  ===========  =========
  Weighted average shares
   outstanding:

    Basic                     31,369     24,955       29,769     24,921
                           =========  =========  ===========  =========

    Diluted                   31,584     24.995       30,080     24,921
                           =========  =========  ===========  =========

Revenues and operating income increased in the third quarter of 2010 compared to the same quarter of 2009 primarily as a result of the third quarter of 2010 including a full quarter of operations from the Central City and Ord, NE ethanol plants acquired in July 2009 and from additional agribusiness operations in western Tennessee acquired in April 2010. Ethanol production rates were higher, while operating margins were consistent in the third quarter of 2010 compared to the same period in the prior year. These factors contributed to the overall increase in revenues of $134.6 million, an increase in gross profit of $10.6 million and an increase in operating income of $6.2 million in the third quarter of 2010 compared to the same period of 2009.

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 Months Ended       Nine Months Ended
                                      September 30,           September 30,
                                 ----------------------  -----------------------

                                    2010        2009        2010         2009
                                 ----------  ----------  -----------  ----------

  Revenues:
    Ethanol production             $250,358    $205,808     $740,962    $495,365
    Agribusiness                     98,469      44,579      203,315     149,547
    Marketing and distribution      419,863     317,915    1,205,184     727,477

    Intersegment eliminations     (272,391)   (206,579)    (773,329)   (504,929)
                                 ----------  ----------  -----------  ----------

                                   $496,299    $361,723   $1,376,132    $867,460
                                 ==========  ==========  ===========  ==========

  Gross profit:
    Ethanol production              $19,793     $16,764      $69,995     $18,668
    Agribusiness                      6,113       1,876       14,557      11,965
    Marketing and distribution        6,221       3,389       15,625       8,071

    Intersegment eliminations         (122)       (627)         (26)       (540)
                                 ----------  ----------  -----------  ----------

                                    $32,005     $21,402     $100,151     $38,164
                                 ==========  ==========  ===========  ==========

  Operating income (loss):
    Ethanol production              $17,152     $14,143      $62,102     $12,416
    Agribusiness                        537     (1,094)          991       3,062
    Marketing and distribution        3,264       1,204        6,996       1,237

    Intersegment eliminations         (122)       (627)         (26)       (540)
                                 ----------  ----------  -----------  ----------
    Segment operating income         20,831      13,626       70,063      16,175

    Corporate activities            (3,842)     (2,872)     (11,494)     (8,424)
                                 ----------  ----------  -----------  ----------

                                    $16,989     $10,754      $58,569      $7,751
                                 ==========  ==========  ===========  ==========

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 Months Ended   Nine Months Ended
                                  September 30,       September 30,
                               ------------------  ------------------

                                  2010     2009       2010     2009
                               ---------  -------  ---------  -------

  Ethanol sold                   128,924  107,335    382,783  257,599
   (thousands of gallons)

  Distillers grains sold             370      306      1,099      745
   (thousands of equivalent
    dried tons)

  Corn consumed                   46,299   38,872    137,358   92,639
   (thousands of bushels)

Revenues for the ethanol production segment increased $44.6 million to $250.4 million for the third quarter of 2010 compared to the same period of 2009. The Company sold 128.9 million gallons of ethanol within the ethanol production segment during the quarter, an increase of 21.6 million gallons over the same period of 2009. These increases in revenues and sales volumes are primarily due to the addition of the two Nebraska ethanol plants acquired in July 2009.

Cost of goods sold in the ethanol production segment during the third of 2010 increased $41.5 million to $230.6 million compared to the same period of 2009. This increase was primarily due to an increase in the consumption of corn by 7.4 million bushels during the third quarter of 2010 when compared to the same period of 2009. Depreciation and amortization expense for the ethanol production segment was $7.9 million during the third quarter of 2010 compared to $7.5 million during the same period of 2009. Operating income for the ethanol production segment for the third quarter of 2010 increased by $3.0 million to $17.2 million compared to the same quarter of 2009. The improvement in operating income was primarily a result of higher production and sales volumes due to the addition of the two Nebraska ethanol plants.

The following chart summarizes the approximate percentages of forecasted production or usage, excluding the effects of the pending Global acquisition, for the next 12 months under fixed-price contracts as of September 30, 2010:


                            Portion
                            Subject
                               to
                           Fixed-Pr
                              ice
                            Contrac
                              ts
                           --------
       Ethanol Production     15%
       Distillers Grains
        Production            18%
       Corn Usage             19%
       Natural Gas Usage      23%

Agribusiness Segment

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


                           Three Months
                          Ended September  Nine Months Ended
                                30,          September 30,
                         ----------------  -----------------

                            2010     2009     2010     2009
                         ---------  -----  ---------  ------

  Grain sold                18,966  9,263     36,715  22,091
   (thousands of
    bushels)

  Fertilizer sold              385    700     33,607  25,352
   (tons)

Agribusiness segment revenues increased $53.9 million to $98.5 million for the third quarter of 2010 compared to the same period of 2009. The Company sold 19.8 million bushels of grain during the third quarter of 2010 compared to 9.5 million bushels of grain during the third quarter of 2009. Gross profit and operating income for the agribusiness segment increased $4.2 million and $1.6 million, respectively, for the third quarter of, 2010 as compared to same period in 2009. Operating income was $0.5 million during the third quarter of 2010 compared to an operating loss of $1.1 million during the same period of 2009. The increases in revenues, gross profit and operating income in the agribusiness segment were due primarily to the addition of the Tennessee agribusiness assets in the second quarter of 2010. The agribusiness segment's quarterly performance fluctuates on a seasonal basis with generally stronger results expected in the second and fourth quarter of each year.

Marketing and Distribution Segment

Revenues of the marketing and distribution segment increased $101.9 million for the third quarter of 2010, as compared to the quarter ended September 30, 2009. The increase in revenues was primarily due to an increase in ethanol marketed. The Company sold 222.0 million gallons of ethanol within the marketing and distribution segment during the third quarter of 2010, compared to 162.2 million gallons sold during the same period of 2009. The increase in ethanol-related revenue is due to expanded production at owned plants, as well as expanded third-party marketing. During the first quarter of 2009, Green Plains began providing marketing services for three third-party ethanol plants. The third quarter of 2010 includes revenues for marketing services for those three third-party ethanol plants plus a fourth third-party ethanol plant that Green Plains began marketing for in the fourth quarter of 2009. Gross profit for the marketing and distribution segment increased $2.8 million for the third quarter of 2010 as compared to the same period of 2009. Operating income was $3.3 million during the third quarter of 2010 compared to operating income of $1.2 million during the same period of 2009. The increase in gross profit and operating income were primarily due to greater volume of ethanol and distillers grains marketed as compared to the prior year.

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 Months Ended   Nine Months Ended
                                          September 30,        September 30,
                                       -------------------  --------------------

                                          2010      2009       2010       2009
                                       ---------  --------  ---------  ---------
  Net income (loss) attributable to
   Green Plains                           $7,366    $5,454    $31,627   $(3,260)
    Net income attributable to
     noncontrolling interests                 49        95        163         96
    Interest expense                       6,158     5,657     16,473     12,001
    Income taxes                           3,083     (189)      9,989      (189)

    Depreciation and amortization          9,489     8,267     27,362     21,262
                                       ---------  --------  ---------  ---------

  EBITDA                                 $26,145   $19,284    $85,614    $29,910
                                       =========  ========  =========  =========

Summary Balance Sheets

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


                           September    December
                              30,         31,
                             2010         2009
                          -----------  ---------
     ASSETS

  Current assets             $435,167   $252,446
  Property and
   equipment, net             600,744    596,235

  Other assets                 29,989     29,400
                          -----------  ---------

     Total assets          $1,065,900   $878,081
                          ===========  =========

     LIABILITIES AND
      STOCKHOLDERS'
      EQUITY

  Current liabilities        $256,185   $174,332
  Long-term debt              367,915    388,573

  Other liabilities            17,074      4,468
                          -----------  ---------
     Total liabilities        641,174    567,373
  Total stockholders'
   equity                     424,726    310,708
                          -----------  ---------
     Total liabilities
      and stockholders'
      equity               $1,065,900   $878,081
                          ===========  =========

At September 30, 2010, Green Plains had $177.0 million in total cash and equivalents and $17.6 million available under committed loan agreements (subject to satisfaction of specified lending conditions and covenants). Total debt was $470 million, including $64.2 million outstanding under commodity and trade receivable revolvers in the marketing and distribution and agribusiness segments. Green Plains had total assets of approximately $1,066 million and total stockholders' equity of approximately $425 million. As of September 30, 2010, Green Plains had approximately 31.4 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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