Green Plains Renewable Energy: Q3 results
Green Plains Renewable Energy, Inc. announced its financial results for the third quarter of 2011. Net income attributable to Green Plains for the quarter ended September 30, 2011 was $12.4 million, or $0.32 per diluted share, compared to $7.4 million, or $0.23 per diluted share, for the same period in 2010. Revenues were $957.0 million for the third quarter of 2011 compared to $496.1 million during the same period in 2010.
"All of our business segments performed well, resulting in higher net income and earnings per share this quarter compared with the third quarter of 2010 and last quarter," said Todd Becker, President and Chief Executive Officer. "Non-ethanol operating income from the corn oil production, agribusiness, and marketing and distribution segments was $13.7 million in the third quarter, or 40% of total segment operating income. We set a goal to diversify our business model to provide our shareholders with more predictable and recurring income streams and this quarter continues the momentum we started earlier this year. We remain confident that we will reach our goal of $50 million of annual operating income from these segments. Corn oil production contributed a record $9.6 million in operating income and our agribusiness segment performed well as our Tennessee operations benefited from an excellent local soft wheat harvest."
"Our ethanol production margins were more robust than expected, due in large part to our strategy to secure physical corn supply to each of our plants while waiting to opportunistically lock margins. This approach, along with our continued focus on efficient plant operations, generated our highest level of quarterly operating income for the ethanol production segment this year," commented Becker. "We continue to expect our overall profitability to improve in the fourth quarter as a result of seasonal activity from the agribusiness segment. Ethanol production should also have a good finish for the year, although securing some of the early-harvested corn has been challenging as demonstrated by basis levels that are unprecedented for this time of the year."
"We are excited about the successful completion of the first round of poultry feed trials for algae strains produced by BioProcess Algae at our Shenandoah plant," stated Becker. "We continue to invest in algae production technology with a focus on reducing production costs and developing new markets for algae, including human nutrition, animal feed and biofuels."
Revenues for the nine-month period ended September 30, 2011 were $2.6 billion compared to $1.4 billion for the same period of 2010. Net income attributable to Green Plains for the nine-month period ended September 30, 2011 was $25.2 million, or $0.66 per diluted share, compared to net income of $31.6 million, or $1.05 per diluted share, for the same period of 2010.
EBITDA, which is defined as earnings before interest, income taxes, noncontrolling interests, depreciation and amortization, was $41.6 million for the third quarter of 2011 compared to $26.1 million during the same period of 2010. Green Plains had $154.4 million total cash and equivalents and $102.7 million available under committed loan agreements (subject to satisfaction of specified lending conditions and covenants) at September 30, 2011. EBITDA for the nine-month period ended September 30, 2011 was $103.4 million compared to $85.6 million for the same period of 2010. For reconciliations of EBITDA to net income attributable to Green Plains, see "EBITDA" below.
Recent Business Highlights
On October 17, 2011, Green Plains and BioProcess Algae announced the successful completion of the first round of algae-based poultry feed trials. BioProcess Algae plans to proceed with further testing for poultry and begin evaluating a replacement product for the fishmeal market.
On September 12, 2011, Green Plains announced the repurchase 3.5 million shares of its common stock from a subsidiary of NTR plc, its largest shareholder, at a price of $8.00 per share. After this transaction, NTR holds approximately 7.7 million shares, or 23.5%, of Green Plains' outstanding shares.
FORTUNE Magazine ranked Green Plains 8th on its 2011 "100 Fastest-Growing Companies" list. The full list and related stories were published in the September 26, 2011 print issue and are available online.
During the third quarter of 2011, Green Plains completed the installation of corn oil extraction technology at its Otter Tail ethanol plant. All nine of the Company's ethanol plants are now producing corn oil.
Green Plains' agribusiness segment expects to close in the near future on a $195 million syndicated revolving line of credit and a $30 million amortizing term loan. Proceeds from the facilities will be used to repay existing indebtedness, provide working capital funding and for other general corporate purposes.
On October 27, 2011, Green Plains will hold a conference call to discuss its third quarter 2011 financial results. 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 866-290-0883 and the international dial-in number is 913-312-0410. 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. A slide presentation will be available on Green Plains' website at http://investor.gpreinc.com/events.cfm. The conference call will also be archived and available for replay through November 3, 2011.
About Green Plains Renewable Energy, Inc.
Green Plains Renewable Energy, Inc. is North America's fourth largest ethanol producer. The Company markets and distributes approximately one billion gallons of renewable motor fuel on an annual basis, including 740 million gallons of expected production from the Company's nine ethanol plants located throughout the U.S. Green Plains owns and operates grain handling and storage assets and provides complementary agronomy services to local grain producers through its agribusiness segment. Green Plains owns Blendstar LLC, a biofuels terminal operator with locations 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 the growing and harvesting of algal biomass.
Jim Stark, Vice President - Investor and Media Relations
Green Plains Renewable Energy, Inc.