Green Plains Inc.
Aug 1, 2016

Green Plains Reports Second Quarter 2016 Financial Results

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

Results of Operations
Consolidated 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 Information
On 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 Measures
Management 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 LP
Green 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 Statements
This 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