Green Plains Inc.
Green Plains Inc. (Form: 8-K, Received: 11/01/2017 17:00:25)

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

Pursuant to Section 13 OR 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date of earliest event reported)

November 1, 2017

 

 

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 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).

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.  ☐

 

 

 


Item 2.02. Results of Operations and Financial Condition.

Green Plains Inc. issued a press release announcing its financial results for the three months ended September 30, 2017. A copy of this press release is attached as Exhibit 99.1.

The information in this current report on Form 8-K, including Exhibit 99.1, is “furnished,” not “filed,” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and is not subject to liability of that section nor deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, before or after this date and regardless of any general incorporation language in the filing, unless explicitly incorporated by reference in such filing.

 

Item 9.01. Financial Statements and Exhibits.

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

 

Number

  

Description

99.1    Press release, dated November 1, 2017

 


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.

 

    Green Plains Inc.
Date: November 1, 2017     By:   /s/ John W. Neppl
    John W. Neppl
    Chief Financial Officer
    (Principal Financial Officer)

Exhibit 99.1

 

LOGO

  

FOR IMMEDIATE RELEASE

Green Plains Reports Third Quarter 2017 Financial Results

 

    Net income of $34.4 million, or $0.74 per diluted share

 

    Recognized research and development tax credits totaling $49.5 million, with $40.5 million reported as an income tax benefit and $9.0 million reported as a reduction of operating expenses

 

    Adjusted net loss of $7.4 million, or $(0.18) per diluted share, from current operations before refinancing expenses of $12.3 million and net research and development tax credits of $49.5 million

 

    Total company EBITDA of $61.6 million, excluding corporate activity, including $9.0 million of research and development tax credits reported within operations

 

    Segment EBITDA of $36.0 million, excluding ethanol production and corporate activities

OMAHA, Neb., Nov. 1, 2017 (GLOBE NEWSWIRE) – Green Plains Inc. (NASDAQ:GPRE) today announced financial results for the third quarter of 2017. Net income attributable to the company was $34.4 million, or $0.74 per diluted share, for the third quarter of 2017 compared with net income of $7.9 million, or $0.20 per diluted share, for the same period in 2016. Included in the company’s third quarter results were expenses related to refinancing and expanding the company’s term loan of $12.3 million (cash portion of $2.9 million), and net research and development tax credits (“R&D tax credits”) related to qualifying activities totaling $49.5 million. Net loss attributable to the company, excluding these items, net of taxes, was $7.4 million, or $(0.18) per diluted share. Revenues were $901.2 million for the third quarter of 2017 compared with $841.9 million for the same period last year.

“We will continue to flex our production based on market conditions at each individual plant and closely monitor for needed adjustments during the remainder of the fourth quarter and into 2018,” commented Todd Becker, president and chief executive officer. “Our food and ingredients, and partnership segments had another strong quarter, led by continued growth in both segments. Our plan remains the same—we will focus on diversification of the platform, while determining optimal ethanol plant operating levels based on market dynamics.”

During the third quarter, Green Plains produced 313.6 million gallons of ethanol compared with 292.2 million gallons for the same period in 2016. The consolidated ethanol crush margin was $47.3 million, or $0.15 per gallon, for the third quarter of 2017, including $9.0 million of R&D tax credits, compared with $51.6 million, or $0.17 per gallon, for the same period in 2016. 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.

The company completed an in-depth tax study, covering the periods beginning 2013 through the third quarter of 2017, and concluded it was entitled to certain R&D tax credits. The company recognized these credits during the third quarter of 2017. The company expects the credits to be realized against income tax payments at the state and federal level upon review by the IRS, which the company anticipates will take a year or more.

“We achieved a major milestone this quarter with the new $500 million term loan financing, which gives the company the most simplified term debt structure since inception,” Becker added. “In addition, since the 2015 permanent change in the research and development tax credit, we conducted a review of trials and plant improvement projects in our continuous improvement programs for all open tax years with the assistance of our third-party tax advisor, resulting in the credits taken this quarter. These credits are accretive to our shareholders as an adjustment to this year’s bottom line.”

“Our overall segment EBITDA was approximately $61.6 million for the third quarter of 2017 before corporate costs and was the best quarter this year,” Becker continued. “We experienced an improvement in the consolidated crush margin during the third quarter compared with the second quarter of 2017 and we further executed a significant fourth quarter hedging program against our total production capability.”

Revenues attributable to the company were $2.7 billion for the nine-month period ended Sept. 30, 2017, compared with $2.5 billion for the same period in 2016. Net income for the nine-month period ended Sept. 30, 2017, was $14.4 million, or $0.48 per diluted share, compared with net loss of $8.0 million, or $(0.21) per diluted share, for the same period in 2016. Excluding the impact of the debt refinancing costs and R&D tax credits, results for the nine-month period ended Sept. 30, 2017, were a net loss of $27.4 million, or $(0.68) per diluted share.

 

1


“We remain on track towards our approximately $150 million goal of segment EBITDA for the full year, excluding ethanol production and corporate activities, and continue to look for opportunities to grow each of these businesses,” said Becker. “We started to execute on our share repurchase program and ended the quarter with a much stronger cash and liquidity position overall. We also expect our new export terminal in Beaumont, Texas to start operations in November. Export demand remains strong for the products we produce, domestic demand is steady and we expect expanded blends to start gaining traction as more retailers start selling E15, which is now at more than 1,000 stations across 29 states.”

Recent Developments

 

    In November 2017, the company anticipates Phase I of the intermodal export and import fuels terminal at Jefferson Gulf Coast Energy Partner’s existing Beaumont, Texas terminal to be completed.

 

    During the third quarter, the company repurchased 335,849 shares of common stock for $5.7 million.

 

    On Sept. 11, 2017, John Neppl joined the company as chief financial officer of Green Plains and Green Plains Partners, replacing Jerry Peters, who retired. Mr. Peters continues as a member of the board of directors of Green Plains Holdings LLC, the general partner of Green Plains Partners. Mr. Neppl most recently served as chief financial officer of The Gavilon Group, LLC and brings extensive experience in commodity processing and trading businesses.

 

    On Aug. 29, 2017, Green Plains entered into a $500 million term loan agreement, which matures on August 29, 2023, to refinance $405 million of existing debt. The term loan is secured by substantially all of the company’s assets, including 17 ethanol production facilities, vinegar production facilities and a second priority lien on the assets secured under the revolving credit facilities at Green Plains Trade, Green Plains Cattle and Green Plains Grain.

 

    On July 28, 2017, Green Plains’ wholly owned subsidiary, Green Plains Trade, amended its senior secured revolving credit agreement, increasing the maximum commitment from $150 million to $300 million and extending the maturity date from Nov. 26, 2019, to July 28, 2022. The amendment reduces the interest rate spreads, increases inventory advance rates and expands eligible inventory locations and commodities.

Results of Operations

Consolidated revenues increased $59.4 million for the three months ended Sept. 30, 2017, compared with the same period in 2016. Revenues were impacted by increased ethanol volumes sold, plus the additions of Fleischmann’s Vinegar during the fourth quarter of 2016 and the cattle feedlots during the first and second quarters of 2017.

Operating income decreased $10.1 million for the three months ended Sept. 30, 2017, compared with the same period last year primarily due to decreased margins on ethanol production, partially offset by the Fleischmann’s Vinegar and the cattle feedlot acquisitions. Excluding the impact of $9.0 million of R&D tax credits recorded as a reduction of operating expense, operating income decreased by $19.1 million. Interest expense increased $20.1 million for the three months ended Sept. 30, 2017, compared with the same period in 2016, primarily due to $12.3 million in expense associated with the termination of previous credit facilities, higher average debt outstanding and increased borrowing costs driven by growth in the cattle business and acquisition of Fleischmann’s Vinegar. Income tax benefit was $48.8 million, including net R&D tax credits of $40.5 million for the three months ended Sept. 30, 2017, compared with income tax expense of $5.1 million for the same period in 2016.

Earnings before interest, income taxes, depreciation and amortization (EBITDA) for the third quarter of 2017 was $50.4 million (or $41.4 million excluding the impact of $9.0 million of R&D tax credits recognized within operating expense) compared with $49.1 million for the same period last year.

Segment Information

During the fourth quarter of 2016, management restructured its operating segments. The four segments are: (1) ethanol production, which includes ethanol, distillers grains and corn oil production, (2) agribusiness and energy services, which includes grain handling and storage, commodity marketing and merchant trading, (3) food and ingredients, which includes the vinegar, cattle feedlot and food-grade corn oil operations and (4) partnership, which includes fuel storage and transportation services. Intercompany fees charged to the ethanol production segment for storage and logistics services, grain procurement and product sales are included in the partnership, and agribusiness and energy services segments and eliminated upon consolidation. Third party costs of grain consumed and revenues from product sales are reported directly in the ethanol production segment. Prior periods have been reclassified to conform to the revised segment presentation.

 

2


GREEN PLAINS INC.

SEGMENT OPERATIONS

(unaudited, in thousands)

 

     Three Months Ended
September 30,
    Nine Months Ended
September 30,
 
     2017     2016     %
Var.
    2017     2016     % Var.  

Revenues:

            

Ethanol production

   $ 623,759     $ 586,988       6.3   $ 1,863,980     $ 1,710,484       9.0

Agribusiness and energy services

     179,010       177,079       1.1       517,349       556,379       (7.0

Food and ingredients

     114,788       84,692       35.5       329,545       230,924       42.7  

Partnership

     26,449       26,205       0.9       78,743       75,487       4.3  

Intersegment eliminations

     (42,771     (33,112     29.2       (114,435     (94,491     21.1  
  

 

 

   

 

 

     

 

 

   

 

 

   
   $ 901,235     $ 841,852       7.1   $ 2,675,182     $ 2,478,783       7.9
  

 

 

   

 

 

     

 

 

   

 

 

   

Gross margin:

            

Ethanol production

   $ 32,855     $ 37,283       (11.9 )%    $ 61,292     $ 60,843       0.7

Agribusiness and energy services

     10,275       13,437       (23.5     30,110       38,246       (21.3

Food and ingredients

     15,934       5,901       170.0       47,647       11,838       302.5  

Partnership

     26,449       26,206       0.9       78,743       75,487       4.3  

Intersegment eliminations

     (65     142       *       (312     (725     (56.8
  

 

 

   

 

 

     

 

 

   

 

 

   
   $ 85,446     $ 82,969       3.0   $ 217,478     $ 185,689       17.1
  

 

 

   

 

 

     

 

 

   

 

 

   

Depreciation and amortization:

            

Ethanol production

   $ 20,959     $ 15,725       33.3   $ 61,443     $ 46,655       31.7

Agribusiness and energy services

     1,457       628       132.0       2,776       1,882       47.5  

Food and ingredients

     3,139       257       *       9,259       802       *  

Partnership

     1,280       1,515       (15.5     3,781       4,220       (10.4

Corporate activities

     999       1,161       (14.0     2,846       2,573       10.6  
  

 

 

   

 

 

     

 

 

   

 

 

   
   $ 27,834     $ 19,286       44.3   $ 80,105     $ 56,132       42.7
  

 

 

   

 

 

     

 

 

   

 

 

   

Operating income (loss):

            

Ethanol production

   $ 3,107     $ 14,334       (78.3 )%    $ (25,950   $ (7,673     (238.2 )% 

Agribusiness and energy services

     3,686       7,241       (49.1     13,138       20,744       (36.7

Food and ingredients

     10,132       5,199       94.9       30,472       9,594       217.6  

Partnership

     16,290       15,084       8.0       47,707       42,958       11.1  

Intersegment eliminations

     8       181       (95.6     (147     (612     (76.0

Corporate activities

     (12,507     (11,184     11.8       (30,898     (29,393     5.1  
  

 

 

   

 

 

     

 

 

   

 

 

   
   $ 20,716     $ 30,855       (32.9 )%    $ 34,322     $ 35,618       (3.6 )% 
  

 

 

   

 

 

     

 

 

   

 

 

   

EBITDA:

            

Ethanol production

   $ 25,570     $ 30,155       (15.2 )%    $ 38,521     $ 39,164       (1.6 )% 

Agribusiness and energy services

     5,150       6,310       (18.4     15,910       21,246       (25.1

Food and ingredients

     13,272       5,465       142.9       39,741       10,430       281.0  

Partnership

     17,589       16,620       5.8       51,549       47,241       9.1  

Intersegment eliminations

     8       (39     120.5       (147     (1,174     (87.5

Corporate activities

     (11,212     (9,439     18.8       (27,275     (25,944     5.1  
  

 

 

   

 

 

     

 

 

   

 

 

   
   $ 50,377     $ 49,072       2.7   $ 118,299     $ 90,963       30.1
  

 

 

   

 

 

     

 

 

   

 

 

   

 

* Percentage variance not considered meaningful.

 

3


GREEN PLAINS INC.

SELECTED OPERATING DATA

(unaudited, in thousands)

 

     Three Months Ended
September 30,
    Nine Months Ended
September 30,
 
     2017      2016      % Var.     2017      2016      % Var.  

Ethanol production

                

Ethanol (gallons)

     313,642        292,238        7.3     915,607        813,464        12.6

Distillers grains (equivalent dried tons)

     817        790        3.4       2,421        2,170        11.6  

Corn oil (pounds)

     75,440        72,176        4.5       216,482        196,530        10.2  

Corn consumed (bushels)

     109,544        102,113        7.3       318,709        284,282        12.1  

Agribusiness and energy services

                

Domestic ethanol sold (gallons)

     345,038        301,077        14.6       982,946        902,930        8.9  

Export ethanol sold (gallons)

     34,773        34,903        (0.4     137,412        114,875        19.6  
  

 

 

    

 

 

      

 

 

    

 

 

    
     379,811        335,980        13.0       1,120,358        1,017,805        10.1  

Food and ingredients

                

Company cattle on feed (daily average head)

     148        68        117.6       100        65        53.8  

Customer cattle on feed (daily average head)

     70        1        *       59        1        *  

Partnership

                

Storage and throughput (gallons)

     308,316        292,667        5.3       913,894        819,056        11.6  

 

* 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,
 
     2017      2016      2017      2016  
     ($ in thousands)      ($ per gallon produced)  

Ethanol production operating income

   $ 3,107      $ 14,334      $ 0.01      $ 0.05  

Depreciation and amortization

     20,959        15,725        0.07        0.05  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total ethanol production

     24,066        30,059        0.08        0.10  

Intercompany fees, net:

           

Storage and logistics (partnership)

     16,205        15,675        0.05        0.05  

Marketing and agribusiness fees (agribusiness and energy services)

     7,047        5,893        0.02        0.02  
  

 

 

    

 

 

    

 

 

    

 

 

 

Consolidated crush margin

   $ 47,318      $ 51,627      $ 0.15      $ 0.17  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

4


Liquidity and Capital Resources

On Sept. 30, 2017, Green Plains had $292.4 million in total cash and cash equivalents, and $297.0 million available under revolving credit agreements, some of which are subject to restrictions and other lending conditions. Total debt outstanding was $1,294.2 million, including $457.8 million outstanding under working capital revolvers and other short-term borrowing arrangements for the agribusiness and energy services, and the food and ingredients segments at Sept. 30, 2017.

Conference Call Information

On Nov. 2, 2017, 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 2017 financial and operating results for each company. Domestic and international participants can access the conference call by dialing 888.349.9582 and 719.785.1768, respectively. The company advises participants to call at least 10 minutes prior to the start time. Alternatively, the conference call, transcript and presentation will be accessible 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, segment 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 alternatives to net income or segment operating income, which are determined in accordance with generally accepted accounting principles (GAAP). These non-GAAP calculations may vary from company to company. Accordingly, the company’s computation of EBITDA, segment EBITDA and consolidated ethanol crush margins may not be comparable with similarly titled measures of another company.

To supplement our condensed consolidated statements of operations presented in accordance with GAAP, the company has provided non-GAAP adjusted financial measures of operating results that excludes certain items. Basic and diluted earnings per share attributable to Green Plains are presented in the Reconciliation to Non-GAAP Adjusted Financial Measures as reported on a GAAP and non-GAAP basis related to the impact of the expenses for refinancing and expanding the company’s term loan and net R&D tax credits related to qualifying activities. Management believes including these additional measures may enhance the investor’s overall understanding of the company’s ongoing operations. These measures should not be considered alternatives to net income or segment operating income, which are determined in accordance with GAAP.

About Green Plains Inc.

Green Plains Inc. (NASDAQ:GPRE) is a diversified commodity-processing business with operations related to ethanol production, grain handling and storage, cattle feedlots, food ingredients, and commodity marketing and logistics 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 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 includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Forward-looking statements reflect management’s current views, which are subject to risks and uncertainties including, but not limited to, anticipated financial and operating results, plans and objectives that are not historical in nature. These statements may be identified by words such as “believe,” “expect,” “may,” “should,” “will” and similar expressions. Factors that could cause actual results to differ materially from those expressed or implied include: competition in the industries in which Green Plains operates; commodity market risks, 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 ethanol plants, Fleischmann’s Vinegar and three cattle feedlots; and other risks discussed in Green Plains’ reports filed with the Securities and Exchange Commission. Investors are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date of this news release. Green Plains assumes no obligation to update any such forward-looking statements, except as required by law.

 

5


Consolidated Financial Results

GREEN PLAINS INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)

 

     September 30,
2017
     December 31,
2016
 
     (unaudited)         

ASSETS

     

Current assets

     

Cash and cash equivalents

   $ 261,588      $ 304,211  

Restricted cash

     30,773        51,979  

Accounts receivable, net

     114,978        147,495  

Inventories

     612,447        422,181  

Other current assets

     80,603        74,710  
  

 

 

    

 

 

 

Total current assets

     1,100,389        1,000,576  

Property and equipment, net

     1,188,270        1,178,706  

Other assets

     339,878        327,210  
  

 

 

    

 

 

 

Total assets

   $ 2,628,537      $ 2,506,492  
  

 

 

    

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

     

Current liabilities

     

Accounts payable

   $ 174,788      $ 192,275  

Accrued and other liabilities

     48,500        67,473  

Derivative financial instruments

     12,004        8,916  

Short-term notes payable and other borrowings

     457,764        291,223  

Current maturities of long-term debt

     6,486        35,059  
  

 

 

    

 

 

 

Total current liabilities

     699,542        594,946  

Long-term debt

     829,923        782,610  

Other liabilities

     84,679        149,745  
  

 

 

    

 

 

 

Total liabilities

     1,614,144        1,527,301  

Stockholders’ equity

     

Total Green Plains stockholders’ equity

     897,911        862,507  

Noncontrolling interests

     116,482        116,684  
  

 

 

    

 

 

 

Total liabilities and stockholders’ equity

   $ 2,628,537      $ 2,506,492  
  

 

 

    

 

 

 

 

6


GREEN PLAINS INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited, in thousands except per share amounts)

 

     Three Months Ended
September 30,
    Nine Months Ended
September 30,
 
     2017     2016     % Var.     2017     2016     %
Var.
 

Revenues

            

Product

   $ 899,534     $ 839,786       7.1   $ 2,670,458     $ 2,472,741       8.0

Service

     1,701       2,066       (17.7     4,724       6,042       (21.8
  

 

 

   

 

 

     

 

 

   

 

 

   

Total revenues

     901,235       841,852       7.1       2,675,182       2,478,783       7.9  
  

 

 

   

 

 

     

 

 

   

 

 

   

Costs and expenses

            

Cost of goods sold

     815,787       758,883       7.5       2,457,702       2,293,094       7.2  

Operations and maintenance

     8,309       8,564       (3.0     25,107       25,713       (2.4

Selling, general and administrative

     28,589       24,264       17.8       77,946       68,226       14.2  

Depreciation and amortization

     27,834       19,286       44.3       80,105       56,132       42.7  
  

 

 

   

 

 

     

 

 

   

 

 

   

Total costs and expenses

     880,519       810,997       8.6       2,640,860       2,443,165       8.1  
  

 

 

   

 

 

     

 

 

   

 

 

   

Operating income

     20,716       30,855       (32.9     34,322       35,618       (3.6
  

 

 

   

 

 

     

 

 

   

 

 

   

Other income (expense)

            

Interest income

     383       484       (20.9     1,061       1,263       (16.0

Interest expense

     (31,889     (11,819     169.8       (69,815     (33,117     110.8  

Other, net

     1,444       (1,553     *       2,811       (2,050     *  
  

 

 

   

 

 

     

 

 

   

 

 

   

Total other expense

     (30,062     (12,888     133.3       (65,943     (33,904     94.5  
  

 

 

   

 

 

     

 

 

   

 

 

   

Income (loss) before income taxes

     (9,346     17,967       *       (31,621     1,714       *  

Income tax expense (benefit)

     (48,775     5,083       *       (60,905     (4,339     *  
  

 

 

   

 

 

     

 

 

   

 

 

   

Net income

     39,429       12,884       206.0       29,284       6,053       383.8  

Net income attributable to noncontrolling interests

     5,035       4,956       1.6       14,853       14,072       5.6  
  

 

 

   

 

 

     

 

 

   

 

 

   

Net income (loss) attributable to Green Plains

   $ 34,394     $ 7,928       333.8   $ 14,431     $ (8,019     280.0
  

 

 

   

 

 

     

 

 

   

 

 

   

Earnings per share:

            

Net income (loss) attributable to Green Plains – basic

   $ 0.83     $ 0.21       $ 0.36     $ (0.21  
  

 

 

   

 

 

     

 

 

   

 

 

   

Net income (loss) attributable to Green Plains – diluted

   $ 0.74     $ 0.20       $ 0.48     $ (0.21  
  

 

 

   

 

 

     

 

 

   

 

 

   

Weighted average shares outstanding:

            

Basic

     41,348       38,282         40,008       38,301    
  

 

 

   

 

 

     

 

 

   

 

 

   

Diluted

     50,647       39,136         50,693       38,301    
  

 

 

   

 

 

     

 

 

   

 

 

   

 

* Percentage variance not considered meaningful.

 

7


GREEN PLAINS INC.

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

(unaudited, in thousands)

 

     Nine Months Ended
September 30,
 
     2017     2016  

Cash flows from operating activities:

    

Net income

   $ 29,284     $ 6,053  

Noncash operating adjustments:

    

Depreciation and amortization

     80,105       56,132  

Deferred income taxes

     (88,565     (16,413

Other

     58,752       16,755  

Net change in working capital

     (201,792     660  
  

 

 

   

 

 

 

Net cash provided (used) by operating activities

     (122,216     63,187  
  

 

 

   

 

 

 

Cash flows from investing activities:

    

Purchases of property and equipment

     (36,475     (35,658

Acquisition of a business, net of cash acquired

     (61,727     (252,488

Investments in unconsolidated subsidiaries

     (12,033     (1,388
  

 

 

   

 

 

 

Net cash used by investing activities

     (110,235     (289,534
  

 

 

   

 

 

 

Cash flows from financing activities:

    

Net proceeds – long-term debt

     64,050       296,422  

Net proceeds – short-term borrowings

     166,283       1,843  

Other

     (40,505     (49,426
  

 

 

   

 

 

 

Net cash provided by financing activities

     189,828       248,839  
  

 

 

   

 

 

 

Net change in cash and cash equivalents

     (42,623     22,492  

Cash and cash equivalents, beginning of period

     304,211       384,867  
  

 

 

   

 

 

 

Cash and cash equivalents, end of period

   $ 261,588     $ 407,359  
  

 

 

   

 

 

 

GREEN PLAINS INC.

RECONCILIATIONS TO NON-GAAP FINANCIAL MEASURES

(unaudited, in thousands)

 

     Three Months Ended
September 30,
     Nine Months Ended
September 30,
 
     2017     2016      2017     2016  

Net income

   $ 39,429     $ 12,884      $ 29,284     $ 6,053  

Interest expense

     31,889       11,819        69,815       33,117  

Income tax expense (benefit)

     (48,775     5,083        (60,905     (4,339

Depreciation and amortization

     27,834       19,286        80,105       56,132  
  

 

 

   

 

 

    

 

 

   

 

 

 

EBITDA

   $ 50,377     $ 49,072      $ 118,299     $ 90,963  
  

 

 

   

 

 

    

 

 

   

 

 

 

 

8


GREEN PLAINS INC.

RECONCILIATIONS TO NON-GAAP ADJUSTED FINANCIAL MEASURES

(unaudited, in thousands except per share amounts)

 

     Three Months Ended September 30, 2017     Three Months
Ended
September 30,
2016,
GAAP Basis
as Reported
 
     GAAP Basis
as Reported
     Non-GAAP
Adjustment
Tax Credit &
Interest Exp.
    Non-GAAP
Basis
as Adjusted
   

Basic EPS:

         

Net income (loss) attributable to Green Plains

   $ 34,394      $ (41,816   $ (7,422   $ 7,928  
  

 

 

    

 

 

   

 

 

   

 

 

 

Weighted average shares outstanding—basic

     41,348        —         41,348       38,282  
  

 

 

    

 

 

   

 

 

   

 

 

 

Earnings (loss) per share attributable to Green Plains—basic

   $ 0.83      $ (1.01   $ (0.18   $ 0.21  
  

 

 

    

 

 

   

 

 

   

 

 

 

Diluted EPS:

         

Net income (loss) attributable to Green Plains

   $ 34,394      $ (41,816   $ (7,422   $ 7,928  

Interest and amortization on convertible debt, net of tax

         

3.25% convertible notes

     840        (840     —         —    

4.125% convertible notes

     2,050        (2,050     —         —    
  

 

 

    

 

 

   

 

 

   

 

 

 

Net income (loss) attributable to Green Plains—diluted

   $ 37,284      $ (44,706   $ (7,422   $ 7,928  
  

 

 

    

 

 

   

 

 

   

 

 

 

Weighted average shares outstanding—basic

     41,348        —         41,348       38,282  

Effect of dilutive 3.25% convertible notes

     3,178        (3,178     —         760  

Effect of dilutive 4.125% convertible notes

     6,071        (6,071     —         —    

Effect of dilutive stock-based compensation awards

     50        (50     —         94  
  

 

 

    

 

 

   

 

 

   

 

 

 

Weighted average shares outstanding—diluted

     50,647        (9,299     41,348       39,136  
  

 

 

    

 

 

   

 

 

   

 

 

 

Earnings (loss) per share attributable to Green Plains—diluted

   $ 0.74      $ (0.92   $ (0.18   $ 0.20  
  

 

 

    

 

 

   

 

 

   

 

 

 
     Nine Months Ended September 30, 2017     Nine Months
Ended
September 30,
2016
GAAP Basis
as Reported
 
     GAAP Basis
as Reported
     Non-GAAP
Adjustment
Tax Credit &
Interest Exp.
    Non-GAAP
Basis
as Adjusted
   

Basic EPS:

         

Net income (loss) attributable to Green Plains

   $ 14,431      $ (41,816   $ (27,385   $ (8,019
  

 

 

    

 

 

   

 

 

   

 

 

 

Weighted average shares outstanding—basic

     40,008        —         40,008       38,301  
  

 

 

    

 

 

   

 

 

   

 

 

 

Earnings (loss) per share attributable to Green Plains—basic

   $ 0.36      $ (1.04   $ (0.68   $ (0.21
  

 

 

    

 

 

   

 

 

   

 

 

 

Diluted EPS:

         

Net income (loss) attributable to Green Plains

   $ 14,431      $ (41,816   $ (27,385   $ (8,019

Interest and amortization on convertible debt, net of tax

         

3.25% convertible notes

     3,582        (3,582     —         —    

4.125% convertible notes

     6,089        (6,089     —         —    
  

 

 

    

 

 

   

 

 

   

 

 

 

Net income (loss) attributable to Green Plains—diluted

   $ 24,102      $ (51,487   $ (27,385   $ (8,019
  

 

 

    

 

 

   

 

 

   

 

 

 

Weighted average shares outstanding—basic

     40,008        —         40,008       38,301  

Effect of dilutive 3.25% convertible notes

     4,551        (4,551     —         —    

Effect of dilutive 4.125% convertible notes

     6,071        (6,071     —         —    

Effect of dilutive stock-based compensation awards

     63        (63     —         —    
  

 

 

    

 

 

   

 

 

   

 

 

 

Weighted average shares outstanding—diluted

     50,693        (10,685     40,008       38,301  
  

 

 

    

 

 

   

 

 

   

 

 

 

Earnings (loss) per share attributable to Green Plains—diluted

   $ 0.48      $ (1.16   $ (0.68   $ (0.21
  

 

 

    

 

 

   

 

 

   

 

 

 

 

9


Contact: Jim Stark | Vice President, Investor & Media Relations | 402.884.8700 | jim.stark@gpreinc.com

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