Green Plains Renewable Energy: Q4 & Full-Year Results
Results for the Fourth Quarter of 2012
Net income of $33.0 million, or $0.94 per diluted share
Net income of $6.7 million, or $0.21 per diluted share, excluding the gain on the sale of agribusiness assets
Results for the Full Year of 2012
Net income of $11.8 million, or $0.39 per diluted share
OMAHA, Neb. - Green Plains Renewable Energy, Inc. (Nasdaq:GPRE) announced its financial results for the fourth quarter and full year ended December 31, 2012. Net income attributable to Green Plains for the full year of 2012 was $11.8 million, or $0.39 per diluted share, compared to net income of $38.4 million, or $1.01 per diluted share, in 2011. Revenues were $3.5 billion for 2012 compared to $3.6 billion in 2011.
For the quarter ended December 31, 2012, net income attributable to Green Plains was $33.0 million, or $0.94 per diluted share, compared to $13.3 million, or $0.36 per diluted share, for the same period in 2011. Revenues were $883.7 million for the fourth quarter of 2012 compared to $922.8 million during the same period in 2011.
"All of our business segments reported positive operating income during both the fourth quarter and the last half of 2012. We believe this demonstrates the effectiveness of our low-cost platform and our ability to manage risk. For the fourth year in a row, our business was profitable and, with the sale of the 12 grain elevators, we continue to focus on creating value for our shareholders," stated Todd Becker, President and Chief Executive Officer. "We ended 2012 with $280 million in cash and the lowest ethanol plant debt in our history. This positions us for the future to take advantage of growth and diversification opportunities and to continue to withstand the cyclicality of our business."
"The forward curve for ethanol margins has not given our team a reason to execute significant amounts of forward hedges. Recently, nearby margins have recovered somewhat but remain below historical levels. With that said, our growth in non-ethanol operating income over the last two years will continue to cushion the effect of a compressed margin structure," said Becker. "We expect to generate over $60 million of non-ethanol operating income this year, even considering the recent sale of certain agribusiness assets."
In December 2012, Green Plains completed the previously-announced sale of 12 grain elevators located in northwestern Iowa and western Tennessee. The sale resulted in an after-tax gain of $26.3 million which is included in fourth quarter 2012 results. Excluding the gain on the sale of agribusiness assets, net income attributable to Green Plains was $6.7 million, or $0.21 per diluted share, for the fourth quarter.
"Over the next two years, we plan to realign our agribusiness investment," stated Becker. "We plan to add between five and ten million bushels of grain storage capacity per year. These assets will be located around our ethanol plants to take advantage of our current infrastructure and enhance our corn origination and trading capabilities. Redefining our agribusiness strategy in this way should allow us to leverage our seven million ton processing capacity to aggressively compete for first-handle grain margins. This minimal investment per bushel should provide solid long-term returns for our shareholders."
Full-year 2012 EBITDA, which is defined as earnings before interest, income taxes, noncontrolling interests, depreciation and amortization, was $115.5 million compared to $148.6 million in 2011. Green Plains had $280.1 million in total cash and equivalents and $121.4 million available under committed loan agreements at subsidiaries (subject to satisfaction of specified lending conditions and covenants) at December 31, 2012. For reconciliations of EBITDA to net income attributable to Green Plains, see "EBITDA" below.
2012 Business Highlights
BioProcess Algae initiated and completed construction of Phase III Grower HarvesterTM reactors in Shenandoah, Iowa. Construction of Phase IV, involving an additional 4.25 acres of reactors and a new downstream processing facility, has begun with completion expected in September 2013. BioProcess Algae and a subsidiary of Bioseutica BV entered into a commercial agreement for the production of EPA-rich Omega-3 oils for use in concentrated EPA products for nutritional and/or pharmaceutical applications. Under the agreement, BioProcess Algae will supply microalgal oils which will be refined by Bioseutica to produce highly-concentrated vegetable sourced EPA oils.
In December, BlendStar LLC, a wholly-owned subsidiary of Green Plains, completed construction and began operations at its 96-car unit train terminal in Birmingham, Ala. The terminal is served by the BNSF Railway and has a throughput capacity of 300 million gallons of ethanol annually. This facility expands the geographic footprint of the Company's downstream distribution capabilities. The Birmingham terminal has 160,000 barrels of storage and a four-lane covered truck rack, both with expansion capabilities.
Green Plains completed the sale of 12 grain elevators located in northwestern Iowa and western Tennessee in December 2012. The sale included approximately 32.6 million bushels of the Company's reported agribusiness grain storage capacity and all of its agronomy and retail petroleum operations. The sale resulted in an after-tax gain of $26.3 million which is included in fourth quarter 2012 results.
In March 2012, Green Plains repurchased 3.7 million shares of its common stock from a subsidiary of NTR plc for $37.2 million. The Company issued a one-year promissory note for $27.2 million and paid cash for the balance of the repurchase.
On February 7, 2013, Green Plains will hold a conference call to discuss its fourth quarter and full-year 2012 financial results and other recent developments. 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 12:00 p.m. ET / 11:00 a.m. CT. To participate by telephone, the domestic dial-in number is 888-471-3843 and the international dial-in number is 719-325-2463. 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 investor.gpreinc.com/events.cfm. The conference call will be archived and available for replay through February 14, 2013.
About Green Plains Renewable Energy, Inc.
Green Plains Renewable Energy, Inc. (Nasdaq: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.
CONTACT: Jim Stark
Vice President - Investor and Media Relations
Green Plains Renewable Energy, Inc.
Source: Green Plains Renewable Energy