Green Plains Renewable Energy: Q1 Results
OMAHA, Nebraska - Green Plains Renewable Energy, Inc. (GPRE) announced its financial results for the first quarter ended March 31, 2013. Net income attributable to Green Plains for the quarter was $2.6 million, or $0.08 per diluted share, compared to a net loss of ($12.7) million, or ($0.39) per diluted share, for the same period in 2012. The first quarter of 2012 included a one-time charge of $2.4 million, after tax, or $0.08 per share, as a result of a legal settlement. Revenues were $765.5 million for the first quarter of 2013 compared to $775.4 million for the same period in 2012.
"We achieved a significant improvement in our financial performance for the first quarter of 2013 compared to last year," stated Todd Becker, President and Chief Executive Officer. "The benefits of our multi-year diversification strategy, combined with operational excellence and risk management were all factors that contributed to the positive results, with nearly a $24 million increase in operating income year over year."
Green Plains' ethanol production segment produced and sold approximately 170 million gallons of ethanol, or approximately 92 percent of the Company's production capacity. Non-ethanol operating income, from the corn oil production, agribusiness, and marketing and distribution segments, was a record $21.2 million in the first quarter of 2013 compared to $9.0 million for the same period in 2012.
"We continued to strengthen our balance sheet with total payments of $38.6 million on our term debt while maintaining a cash balance of more than $241 million. With an improving margin environment, we are well positioned to take advantage of our financial flexibility to further grow our businesses," said Becker.
"Ethanol margins have improved as industry production levels have rationalized and inventories have been drawn down steadily over the last several months. We expect our second quarter earnings will show further improvement compared to the first quarter of 2013. We will maintain our risk management discipline and continue to focus on locking positive forward margins. Our objective to generate $60 million of non-ethanol operating income in 2013 is on track," commented Becker.
First quarter 2013 EBITDA, which is defined as earnings before interest, income taxes, noncontrolling interests, depreciation and amortization, was $24.8 million compared to $1.5 million for the same period in 2012. Green Plains had $241.6 million in total cash and equivalents and $107.0 million available under committed loan agreements at subsidiaries (subject to satisfaction of specified lending conditions and covenants) at March 31, 2013. For reconciliations of EBITDA to net income attributable to Green Plains, see "EBITDA" below.
Current Business Highlights
Green Plains Trade Group recently completed a new $130 million senior secured asset-based revolving credit facility arranged by PNC Capital Markets LLC and Merrill Lynch Pierce Fenner & Smith Incorporated. Availability under the facility, which matures on April 26, 2016, is subject to certain conditions and will be used to finance the company's accounts receivables and ethanol inventories. The new credit facility replaced the $70 million revolving loan scheduled to expire on March 31, 2014.
In April 2013, Green Plains Bluffton LLC extended the maturities for its amortizing and revolving term loans with its lenders from November 2013 to January 2015. As part of the extension, a $10 million payment of the outstanding balance was completed and principal payments were reduced by approximately $4 million annually through maturity.
On April 22, 2013, BioProcess Algae LLC was selected to receive a grant of up to $6.4 million from the U.S. Department of Energy as part of a pilot-scale biorefinery project related to production of hydrocarbon fuels meeting military specifications. The project will use renewable carbon dioxide, lignocellulosic sugars and waste heat through BioProcess Algae's Grower HarvesterTM technology platform, co-located with the Green Plains' ethanol plant in Shenandoah, Iowa.
About Green Plains Renewable Energy, Inc.
Green Plains Renewable Energy, Inc. (GPRE), which is North America's fourth largest ethanol producer, markets and distributes approximately one billion gallons of ethanol annually. Green Plains owns and operates grain storage assets in the corn belt and biofuel terminals in the southern U.S. Green Plains is a joint venture partner in BioProcess Algae LLC, which was formed to commercialize advanced photo-bioreactor technologies for growing and harvesting algal biomass.
Jim Stark, Vice President - Investor and Media Relations,
Green Plains Renewable Energy, Inc. (402) 884-8700