Results for the Fourth Quarter of 2019
- Net loss attributable to the company of $39.7 million, or $(1.13) per diluted share including non-cash tax valuation allowance
- Adjusted net loss attributable to the company of $14.4 million, or $(0.41) per diluted share, excluding a non-cash tax valuation adjustment of $25 million which increased income tax expense during the quarter
- Adjusted EBITDA of $16.0 million
- Completion of Wood River Project 24 upgrade with better than expected outcomes
- December platform run rate at 94% utilization and lowest on record platform operating expense per gallon
- Repurchased approximately 0.5 million shares totaling $5.8 million during the quarter
Results for the Full Year of 2019
- Net loss attributable to the company of $166.9 million, or $(4.38) per diluted share
- Excluding the non-cash tax valuation allowance, net loss attributable to the company of $141.5 million, or $(3.71) per diluted share
- Adjusted EBITDA of $(35.1) million
- Repurchased approximately 5.4 million shares totaling $61.6 million
OMAHA, Neb., Feb. 10, 2020 (GLOBE NEWSWIRE) -- Green Plains Inc. (NASDAQ:GPRE) today announced financial results for the fourth quarter of 2019. Net loss attributable to the company was $39.7 million, or $(1.13) per diluted share, for the fourth quarter of 2019 compared to net income of $53.5 million, or $1.13 per diluted share, for the same period in 2018. Revenues were $715.7 million for the fourth quarter of 2019 compared with $583.5 million for the same period last year.
Revenues attributable to the company were $2.4 billion for the year ended 2019, compared with $3.0 billion for the same period in 2018. Net loss attributable to the company for the year ended 2019, was $166.9 million, or $(4.38) per diluted share, compared with net income of $15.9 million, or $0.39 per diluted share, for the same period in 2018.
“As 2019 continued to be a very challenging year for the company, we have launched our Total Transformation Plan to become a leading sustainable high protein and novel feed ingredient producer, while returning to being a low cost, low carbon, closed loop and sustainable biofuels producer,” commented Todd Becker, president and chief executive officer. “This was made possible by the completion of our Portfolio Optimization Plan where we reduced our debt by almost $1 billion and sold approximately $780 million of assets. Our sustainable high protein feed project at Shenandoah is in the final stages of completion and will begin commissioning in February, with full production expected during March. We have increased our offtake quantities with our customers, further validating the economic impact of this project as we embark on a plan to roll out this technology across our platform.”
“Our Project 24 upgrade at Wood River has been transformational and it now operates as one of our best locations. This outcome has exceeded our expectations in terms of operating cost efficiencies and reduced energy consumption,” said Becker. “We remain on track to complete Project 24 upgrades at our next seven plants, with approximately one startup per month beginning in February and finishing by the end of the third quarter. In December, with Wood River complete and Madison running as expected, we achieved record monthly production, and the lowest platform operating cost per gallon in our history.”
“While fourth quarter margins became more challenging as industry production rates increased, we remained free cash flow positive for the period and achieved positive EBITDA overall,” Becker added. “This is why we remain focused on reducing operating costs through Project 24, building out our sustainable high protein feed production and transforming our platform to a highly efficient and focused biorefinery.”
“Last year we faced numerous industry headwinds, however we are encouraged by the Administration finalizing the Phase One trade deal, and we believe the agreement could provide an additional uplift once China begins purchasing biofuels and other agricultural commodities,” said Becker. “In addition, with E15 availability estimated at over 3,000 locations in 2020, this will be an additional positive impetus for demand going forward. We expect the recent 10th Circuit Court ruling on limiting small refinery exemptions to be meaningful to the industry if adhered to by the EPA.”
“Consistent with our previously discussed capital allocation priorities, we continue to support our Project 24 initiatives, protein ingredients platform as well as stock repurchases,” said Becker. “During 2019 we repurchased $61.6 million in shares, and continued to allocate capital to strategic repurchases during the first quarter by repurchasing $11.5 million in shares. In addition, the sale of our joint venture interest in the Jefferson terminal during December added financial strength to our balance sheet as well,” continued Becker. “This sets the company up for the future as we focus on producing sustainable high protein and novel feed ingredients while continuing to produce low carbon, closed loop and sustainable biofuels, as our energy use and water consumption continues to reduce through the implementation of Project 24.”
Full Year Highlights
- On June 21, 2019, the company issued $105.0 million of 4.00% convertible senior notes due in 2024 (the “4.00% notes”). The company used approximately $57.8 million of the net proceeds to repurchase the $56.8 million outstanding principal amount of the 3.25% convertible senior notes due October 1, 2019, including accrued and unpaid interest, in privately negotiated transactions concurrent with the offering. On July 19, 2019, the company closed on the issuance of an additional $10.0 million aggregate principal amount of the 4.00% notes to the initial purchasers. After this issuance, the total aggregate principal of the 4.00% notes was $115.0 million.
- On September 1, 2019, the company formed a joint venture with TGAM Agribusiness Fund Holdings-B LP and StepStone Atlantic Fund, L.P. to own and operate Green Plains Cattle Company LLC. As a part of the joint venture, these investment funds purchased 50% of the membership interests of Green Plains Cattle Company from Green Plains Inc. for approximately $77 million plus closing adjustments.
- On October 30, 2019, the company’s board of directors approved an additional $100.0 million authorization to repurchase shares, taking the previously authorized amount from $100.0 million to $200.0 million.
- During November 2019, the company completed the first Project 24 upgrade at the company’s Wood River, NE ethanol facility.
- On December 11, 2019, the company completed the sale of the 50% joint venture interest in JGP Energy Partners LLC to the company’s partner, Jefferson Energy Holdings LLC, a subsidiary of Fortress Transportation and Infrastructure Investors LLC for $29 million plus estimated working capital.
- During 2019, the company repurchased a total of 5,396,608 common shares totaling $61.6 million with approximately $118.6 million remaining available as of December 31, 2019, from the $200 million stock repurchase program.
Results of Operations
Green Plains produced 239.1 million gallons of ethanol during the fourth quarter of 2019, compared with 205.1 million gallons for the same period in 2018. The consolidated ethanol crush margin was $4.2 million, or $0.02 per gallon, for the fourth quarter of 2019, compared with $(16.8) million, or $(0.08) per gallon, for the same period in 2018. The consolidated ethanol crush margin is the ethanol production segment’s operating income before depreciation and amortization, which includes corn oil, plus intercompany storage, transportation and other fees, net of related expenses.
Consolidated revenues increased $132.2 million for the fourth quarter of 2019, compared with the same period in 2018, as a result of increased production levels.
Operating income decreased $117.9 million and adjusted EBITDA decreased $111.9 million for the fourth quarter of 2019 compared with the same period last year primarily due to the $150.4 million gain on the sale of assets during the fourth quarter of 2018. Interest expense decreased $20.4 million for the fourth quarter of 2019, compared with the same period in 2018, primarily due to the $13.2 million write-off of deferred debt issuance costs related to repayment of the $500 million senior secured term loan, during the fourth quarter of 2018, as well as lower interest expense in the fourth quarter of 2019 as a result of the reduction of debt. Income tax expense was $19.5 million for the fourth quarter of 2019 versus $14.5 million for the same period in 2018.
Segment Information
The company reports the financial and operating performance for the following four operating segments: (1) ethanol production, which includes the production of ethanol, distillers grains and corn oil, (2) agribusiness and energy services, which includes grain handling and storage, commodity marketing and merchant trading for company-produced and third-party ethanol, distillers grains, corn oil, natural gas and other commodities, (3) food and ingredients, which includes food-grade corn oil operations and included vinegar production until the sale of Fleischmann’s Vinegar Company, Inc. during the fourth quarter of 2018 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.
| GREEN PLAINS INC. | |||||||||||||||||||||
| SEGMENT OPERATIONS | |||||||||||||||||||||
| (unaudited, in thousands) | |||||||||||||||||||||
| Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||||||||||
| 2019 | 2018 | % Var. | 2019 | 2018 | % Var. | ||||||||||||||||
| Revenues: | |||||||||||||||||||||
| Ethanol production | $ | 494,532 | $ | 384,958 | 28.5 | % | $ | 1,700,715 | $ | 2,120,661 | (19.8 | )% | |||||||||
| Agribusiness and energy services | 227,381 | 184,556 | 23.2 | 735,500 | 768,956 | (4.4 | ) | ||||||||||||||
| Food and ingredients | - | 18,843 | * | 1,451 | 121,121 | (98.8 | ) | ||||||||||||||
| Partnership | 20,321 | 23,253 | (12.6 | ) | 82,387 | 100,748 | (18.2 | ) | |||||||||||||
| Intersegment eliminations | (26,557 | ) | (28,102 | ) | (5.5 | ) | (102,815 | ) | (127,554 | ) | (19.4 | ) | |||||||||
| $ | 715,677 | $ | 583,508 | 22.7 | % | $ | 2,417,238 | $ | 2,983,932 | (19.0 | )% | ||||||||||
| Gross margin: | |||||||||||||||||||||
| Ethanol production | $ | (7,201 | ) | $ | (26,938 | ) | (73.3 | )% | $ | (90,384 | ) | $ | 1,874 | * | % | ||||||
| Agribusiness and energy services | 17,460 | 13,102 | 33.3 | 39,274 | 51,184 | (23.3 | ) | ||||||||||||||
| Food and ingredients | - | 4,059 | * | (75 | ) | 26,442 | * | ||||||||||||||
| Partnership | 20,321 | 23,253 | (12.6 | ) | 82,387 | 100,748 | (18.2 | ) | |||||||||||||
| Intersegment eliminations | 631 | (3,022 | ) | * | 1,089 | (3,284 | ) | * | |||||||||||||
| $ | 31,211 | $ | 10,454 | 198.6 | % | $ | 32,291 | $ | 176,964 | (81.8 | )% | ||||||||||
| Depreciation and amortization: | |||||||||||||||||||||
| Ethanol production | $ | 16,749 | $ | 14,943 | 12.1 | % | $ | 63,073 | $ | 80,227 | (21.4 | )% | |||||||||
| Agribusiness and energy services | 580 | 547 | 6.0 | 2,222 | 2,470 | (10.0 | ) | ||||||||||||||
| Food and ingredients | - | 765 | * | - | 7,553 | * | |||||||||||||||
| Partnership | 694 | 1,036 | (33.0 | ) | 3,441 | 4,442 | (22.5 | ) | |||||||||||||
| Corporate activities | 1,140 | 797 | 43.0 | 3,391 | 3,566 | (4.9 | ) | ||||||||||||||
| $ | 19,163 | $ | 18,088 | 5.9 | % | $ | 72,127 | $ | 98,258 | (26.6 | )% | ||||||||||
| Operating income (loss): | |||||||||||||||||||||
| Ethanol production | $ | (31,209 | ) | $ | (51,119 | ) | (38.9 | )% | $ | (178,575 | ) | $ | (111,823 | ) | 59.7 | % | |||||
| Agribusiness and energy services | 13,593 | 6,995 | 94.3 | 22,777 | 29,076 | (21.7 | ) | ||||||||||||||
| Food and ingredients | - | 1,927 | * | (76 | ) | 14,354 | (100.5 | ) | |||||||||||||
| Partnership | 12,606 | 16,556 | (23.9 | ) | 50,635 | 64,770 | (21.8 | ) | |||||||||||||
| Intersegment eliminations | 655 | (2,997 | ) | * | 1,188 | (3,110 | ) | * | |||||||||||||
| Corporate activities | (10,567 | ) | 131,566 | * | (38,519 | ) | 96,687 | * | |||||||||||||
| $ | (14,922 | ) | $ | 102,928 | * | % | $ | (142,570 | ) | $ | 89,954 | * | % | ||||||||
| Adjusted EBITDA: | |||||||||||||||||||||
| Ethanol production | $ | (13,467 | ) | $ | (36,365 | ) | (63.0 | )% | $ | (114,494 | ) | $ | (31,623 | ) | * | % | |||||
| Agribusiness and energy services | 14,364 | 7,548 | 90.3 | 25,050 | 31,583 | (20.7 | ) | ||||||||||||||
| Food and ingredients | - | 2,693 | * | (76 | ) | 21,908 | (100.3 | ) | |||||||||||||
| Partnership | 13,471 | 17,725 | (24.0 | ) | 54,853 | 69,399 | (21.0 | ) | |||||||||||||
| Intersegment eliminations | 655 | (2,997 | ) | * | 1,188 | (3,110 | ) | * | |||||||||||||
| Corporate activities | (2,133 | ) | 133,131 | * | (24,339 | ) | 102,598 | * | |||||||||||||
| EBITDA | 12,890 | 121,735 | (89.4 | ) | (57,818 | ) | 190,755 | * | |||||||||||||
| EBITDA adjustments related to discontinued operations | - | 5,920 | * | 17,703 | 33,897 | (47.8 | ) | ||||||||||||||
| Proportional share of EBITDA adjustments of equity method investees | 3,147 | 298 | 956.0 | 4,974 | 1,128 | 341.0 | |||||||||||||||
| Adjusted EBITDA | $ | 16,037 | $ | 127,953 | (87.5 | )% | $ | (35,141 | ) | $ | 225,780 | * | % | ||||||||
* Percentage variance not considered meaningful.
| GREEN PLAINS INC. | |||||||||||||
| SELECTED OPERATING DATA | |||||||||||||
| (unaudited, in thousands) | |||||||||||||
| Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||
| 2019 | 2018 | % Var. | 2019 | 2018 | % Var. | ||||||||
| Ethanol production | |||||||||||||
| Ethanol sold (gallons) | 239,087 | 205,115 | 16.6 | % | 856,623 | 1,086,633 | (21.2 | )% | |||||
| Distillers grains sold (equivalent dried tons) | 633 | 536 | 18.1 | 2,234 | 2,815 | (20.6 | ) | ||||||
| Corn oil sold (pounds) | 63,441 | 53,305 | 19.0 | 212,071 | 276,299 | (23.2 | ) | ||||||
| Corn consumed (bushels) | 83,444 | 70,689 | 18.0 | 298,178 | 377,084 | (20.9 | ) | ||||||
| Agribusiness and energy services | |||||||||||||
| Domestic ethanol sold (gallons) | 290,543 | 194,037 | 49.7 | 940,728 | 1,107,105 | (15.0 | ) | ||||||
| Export ethanol sold (gallons) | 96,933 | 91,820 | 5.6 | 314,473 | 254,115 | 23.8 | |||||||
| 387,476 | 285,857 | 35.5 | 1,255,201 | 1,361,220 | (7.8 | ) | |||||||
| Partnership | |||||||||||||
| Storage and throughput (gallons) | 240,092 | 208,063 | 15.4 | % | 859,796 | 1,134,733 | (24.2 | )% | |||||
| GREEN PLAINS INC. | |||||||||||||||
| CONSOLIDATED CRUSH MARGIN | |||||||||||||||
| (unaudited, in thousands except per gallon amounts) | |||||||||||||||
| Three Months Ended December 31, | Three Months Ended December 31, | ||||||||||||||
| 2019 | 2018 | 2019 | 2018 | ||||||||||||
| ($ per gallon produced) | |||||||||||||||
| Ethanol production operating loss | $ | (31,209 | ) | $ | (51,119 | ) | $ | (0.13 | ) | $ | (0.25 | ) | |||
| Depreciation and amortization | 16,749 | 14,943 | 0.07 | 0.07 | |||||||||||
| Total ethanol production | (14,460 | ) | (36,176 | ) | (0.06 | ) | (0.18 | ) | |||||||
| Intercompany fees, net: | |||||||||||||||
| Storage and logistics (partnership) | 12,560 | 14,395 | 0.05 | 0.08 | |||||||||||
| Marketing and agribusiness fees (agribusiness and energy services) | 6,085 | 4,969 | 0.03 | 0.02 | |||||||||||
| Consolidated crush margin | $ | 4,185 | $ | (16,812 | ) | $ | 0.02 | $ | (0.08 | ) | |||||
Liquidity and Capital Resources
On December 31, 2019, Green Plains had $269.9 million in total cash, cash equivalents and restricted cash, and $289.7 million available under committed revolving credit agreements, some of which are subject to restrictions and other lending conditions. Total debt outstanding at December 31, 2019, was $564.4 million, including $187.8 million outstanding under working capital revolvers and other short-term borrowing arrangements for the agribusiness and energy services, and food and ingredients segments and $132.1 million of debt related to Green Plains Partners.
Conference Call Information
On February 11, 2020, 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 fourth quarter 2019 financial and operating results for each company. Domestic and international participants can access the conference call by dialing 877.711.2374 and 281.542.4862, respectively, and referencing conference ID 6099835. 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 adjusted EBITDA, segment EBITDA and consolidated ethanol crush margins to measure the company’s financial performance and to internally manage its businesses. EBITDA is defined as earnings before interest expense, income tax expense, depreciation and amortization excluding the amortization of right-of-use assets. Adjusted EBITDA includes adjustments related to operational results of Green Plains Cattle prior to its disposition which are recorded as discontinued operations and our proportional share of EBITDA adjustments of our equity method investees. 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 adjusted EBITDA, segment EBITDA and consolidated ethanol crush margins may not be comparable with similarly titled measures of another company.
About Green Plains Inc.
Green Plains Inc. (NASDAQ:GPRE) is a diversified commodity-processing business with operations that include corn processing, grain handling and storage and commodity marketing and logistics services. The company is one of the leading corn processors in the world and, through its adjacent businesses, is focused on the production of sustainable biofuels and sustainable high-protein and novel feed ingredients. Green Plains owns a 50% interest in Green Plains Cattle Company LLC and owns a 49.0% limited partner interest and a 2.0% general partner interest in Green Plains Partners LP. 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 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, including changes to tax laws; risks related to closing and achieving anticipated results from acquisitions and disposals. Other factors can include risks associated with Green Plains’ ability to realize higher margins anticipated from the company’s high protein feed initiative or to achieve anticipated savings from Project 24 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.
| GREEN PLAINS INC. | |||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | |||||
| (in thousands) | |||||
| December 31, | |||||
| 2019 | 2018 | ||||
| ASSETS | (unaudited) | ||||
| Current assets | |||||
| Cash and cash equivalents | $ | 245,977 | $ | 251,681 | |
| Restricted cash | 23,919 | 31,603 | |||
| Accounts receivable, net | 107,183 | 88,501 | |||
| Income tax receivable | 6,216 | 12,418 | |||
| Inventories | 252,992 | 302,600 | |||
| Other current assets | 31,626 | 40,440 | |||
| Current assets of discontinued operations | - | 479,399 | |||
| Total current assets | 667,913 | 1,206,642 | |||
| Property and equipment, net | 827,271 | 815,235 | |||
| Operating lease right-of-use assets | 52,476 | - | |||
| Investment in equity method investees | 68,998 | 29,714 | |||
| Other assets | 81,560 | 91,781 | |||
| Noncurrent assets of discontinued operations | - | 73,060 | |||
| Total assets | $ | 1,698,218 | $ | 2,216,432 | |
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||
| Current liabilities | |||||
| Accounts payable | $ | 156,693 | $ | 135,829 | |
| Accrued and other liabilities | 39,384 | 52,563 | |||
| Derivative financial instruments | 8,721 | 7,852 | |||
| Current operating lease liabilities | 16,626 | - | |||
| Short-term notes payable and other borrowings | 187,812 | 163,751 | |||
| Current maturities of long-term debt | 132,555 | 54,769 | |||
| Current liabilities of discontinued operations | - | 418,936 | |||
| Total current liabilities | 541,791 | 833,700 | |||
| Long-term debt | 243,990 | 298,110 | |||
| Deferred income taxes | - | 10,123 | |||
| Long-term operating lease liabilities | 38,314 | - | |||
| Other liabilities | 8,837 | 11,428 | |||
| Noncurrent liabilities of discontinued operations | - | 82 | |||
| Total liabilities | 832,932 | 1,153,443 | |||
| Stockholders' equity | |||||
| Total Green Plains stockholders' equity | 751,905 | 946,819 | |||
| Noncontrolling interests | 113,381 | 116,170 | |||
| Total liabilities and stockholders' equity | $ | 1,698,218 | $ | 2,216,432 | |
| GREEN PLAINS INC. | |||||||||||||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||||||||
| (unaudited, in thousands except per share amounts) | |||||||||||||||||||||
| Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||||||||||
| 2019 | 2018 | % Var. | 2019 | 2018 | % Var. | ||||||||||||||||
| Revenues | |||||||||||||||||||||
| Product | $ | 714,136 | $ | 581,573 | 22.8 | % | $ | 2,410,382 | $ | 2,977,451 | (19.0 | )% | |||||||||
| Services | 1,541 | 1,935 | (20.4 | ) | 6,856 | 6,481 | 5.8 | ||||||||||||||
| Total revenues | 715,677 | 583,508 | 22.7 | 2,417,238 | 2,983,932 | (19.0 | ) | ||||||||||||||
| Costs and expenses | |||||||||||||||||||||
| Cost of goods sold (excluding depreciation and amortization expenses reflected below) | 684,466 | 573,054 | 19.4 | 2,384,947 | 2,806,968 | (15.0 | ) | ||||||||||||||
| Operations and maintenance | 6,343 | 7,280 | (12.9 | ) | 25,657 | 30,844 | (16.8 | ) | |||||||||||||
| Selling, general and administrative | 20,627 | 32,509 | (36.5 | ) | 77,077 | 108,259 | (28.8 | ) | |||||||||||||
| Gain on sale of assets, net | - | (150,351 | ) | * | - | (150,351 | ) | * | |||||||||||||
| Depreciation and amortization | 19,163 | 18,088 | 5.9 | 72,127 | 98,258 | (26.6 | ) | ||||||||||||||
| Total costs and expenses | 730,599 | 480,580 | 52.0 | 2,559,808 | 2,893,978 | (11.5 | ) | ||||||||||||||
| Operating income (loss) from continuing operations | (14,922 | ) | 102,928 | * | (142,570 | ) | 89,954 | * | |||||||||||||
| Other income (expense) | |||||||||||||||||||||
| Interest income | 1,520 | 908 | 67.4 | 4,333 | 2,961 | 46.3 | |||||||||||||||
| Interest expense | (8,672 | ) | (29,118 | ) | (70.2 | ) | (40,200 | ) | (87,449 | ) | (54.0 | ) | |||||||||
| Other, net | 4,866 | (82 | ) | * | 5,495 | 178 | * | ||||||||||||||
| Total other expense | (2,286 | ) | (28,292 | ) | (91.9 | ) | (30,372 | ) | (84,310 | ) | (64.0 | ) | |||||||||
| Income (loss) from continuing operations before income taxes and income (loss) from equity method investees | (17,208 | ) | 74,636 | * | (172,942 | ) | 5,644 | * | |||||||||||||
| Income tax benefit (expense) | (19,514 | ) | (14,457 | ) | 35.0 | 21,316 | 20,147 | 5.8 | |||||||||||||
| Income (loss) from equity method investees, net of income taxes | 2,263 | (107 | ) | * | 2,797 | (596 | ) | * | |||||||||||||
| Net income (loss) from continuing operations including noncontrolling interest | (34,459 | ) | 60,072 | * | (148,829 | ) | 25,195 | * | |||||||||||||
| Net income (loss) from discontinued operations, net of income taxes | - | (215 | ) | * | 829 | 11,539 | (92.8 | ) | |||||||||||||
| Net income (loss) | (34,459 | ) | 59,857 | * | (148,000 | ) | 36,734 | * | |||||||||||||
| Net income attributable to noncontrolling interests | 5,290 | 6,354 | (16.7 | ) | 18,860 | 20,811 | (9.4 | ) | |||||||||||||
| Net income (loss) attributable to Green Plains | $ | (39,749 | ) | $ | 53,503 | * | % | $ | (166,860 | ) | $ | 15,923 | * | % | |||||||
| Earnings (loss) per share - basic: | |||||||||||||||||||||
| Net income (loss) from continuing operations | $ | (1.13 | ) | $ | 1.33 | $ | (4.40 | ) | $ | 0.11 | |||||||||||
| Net income (loss) from discontinued operations | - | (0.01 | ) | 0.02 | 0.28 | ||||||||||||||||
| Net income (loss) attributable to Green Plains | $ | (1.13 | ) | $ | 1.32 | $ | (4.38 | ) | $ | 0.39 | |||||||||||
| Earnings (loss) per share - diluted: | |||||||||||||||||||||
| Net income (loss) from continuing operations | $ | (1.13 | ) | $ | 1.13 | $ | (4.40 | ) | $ | 0.11 | |||||||||||
| Net income (loss) from discontinued operations | - | - | 0.02 | 0.28 | |||||||||||||||||
| Net income (loss) attributable to Green Plains | $ | (1.13 | ) | $ | 1.13 | $ | (4.38 | ) | $ | 0.39 | |||||||||||
| Weighted average shares outstanding: | |||||||||||||||||||||
| Basic | 35,202 | 40,383 | 38,111 | 40,320 | |||||||||||||||||
| Diluted | 35,202 | 50,607 | 38,111 | 41,254 | |||||||||||||||||
* Percentage variance not considered meaningful.
| GREEN PLAINS INC. | |||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
| (unaudited, in thousands) | |||||||
| Twelve Months Ended December 31, | |||||||
| 2019 | 2018 | ||||||
| Cash flows from operating activities: | |||||||
| Loss from continuing operations including noncontrolling interest | $ | (148,829 | ) | $ | 25,195 | ||
| Income from discontinued operations, net of income taxes | 829 | 11,539 | |||||
| Net income (loss) | (148,000 | ) | 36,734 | ||||
| Noncash operating adjustments: | |||||||
| Depreciation and amortization | 72,127 | 98,258 | |||||
| Deferred income taxes | (17,252 | ) | (24,484 | ) | |||
| Gain on disposal of assets | (3,680 | ) | (150,351 | ) | |||
| Other | 27,259 | 26,867 | |||||
| Net change in working capital | 42,545 | 42,506 | |||||
| Net cash provided by (used in) operating activities - continuing operations | (27,001 | ) | 29,530 | ||||
| Net cash provided by operating activities - discontinued operations | 17,469 | 9,437 | |||||
| Net cash provided by (used in) operating activities | (9,532 | ) | 38,967 | ||||
| Cash flows from investing activities: | |||||||
| Purchases of property and equipment, net | (75,481 | ) | (40,529 | ) | |||
| Proceeds from the sale of assets, net | 3,469 | 671,650 | |||||
| Proceeds from sale of discontinued operations, net of cash divested | 76,884 | - | |||||
| Disposition of equity method investee | 29,721 | - | |||||
| Other investing activities | 220 | (11,891 | ) | ||||
| Net cash provided by investing activities - continuing operations | 34,813 | 619,230 | |||||
| Net cash used in investing activities - discontinued operations | (4,169 | ) | (111,765 | ) | |||
| Net cash provided investing activities | 30,644 | 507,465 | |||||
| Cash flows from financing activities: | |||||||
| Net proceeds (payments) - long-term debt | 112,008 | (493,289 | ) | ||||
| Net payments - short-term borrowings | (38,306 | ) | (98,845 | ) | |||
| Payment for repurchase of common stock | (61,646 | ) | (2,978 | ) | |||
| Other | (31,003 | ) | (48,492 | ) | |||
| Net cash used in financing activities - continuing operations | (18,947 | ) | (643,604 | ) | |||
| Net cash provided by (used in) financing activities - discontinued operations | (50,464 | ) | 103,007 | ||||
| Net cash used in financing activities | (69,411 | ) | (540,597 | ) | |||
| Net change in cash, cash equivalents and restricted cash | (48,299 | ) | 5,835 | ||||
| Cash, cash equivalents and restricted cash, beginning of period | 283,284 | 289,667 | |||||
| Discontinued operations cash activity included above: | |||||||
| Add: Cash balance included in current assets of discontinued operations at beginning of period | 34,911 | 22,693 | |||||
| Less: Cash balance included in current assets of discontinued operations at end of period | - | (34,911 | ) | ||||
| Cash, cash equivalents and restricted cash, end of period | $ | 269,896 | $ | 283,284 | |||
| Continued on following page | |||||||
| GREEN PLAINS INC. | ||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||
| (unaudited, in thousands) | ||||||
| Continued from previous page | ||||||
| Twelve Months Ended December 31, | ||||||
| 2019 | 2018 | |||||
| Reconciliation of total cash, cash equivalents and restricted cash: | ||||||
| Cash and cash equivalents | $ | 245,977 | $ | 251,683 | ||
| Restricted cash | 23,919 | 66,512 | ||||
| Discontinued operations cash activity included above: | ||||||
| Less: Cash balance included in current assets of discontinued operations at end of period | - | (34,911 | ) | |||
| Total cash, cash equivalents and restricted cash | $ | 269,896 | $ | 283,284 | ||
| GREEN PLAINS INC. | ||||||||||||||
| RECONCILIATIONS TO NON-GAAP FINANCIAL MEASURES | ||||||||||||||
| (unaudited, in thousands) | ||||||||||||||
| Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||
| 2019 | 2018 | 2019 | 2018 | |||||||||||
| Net income (loss) from continuing operations including noncontrolling interest | $ | (34,459 | ) | $ | 60,072 | $ | (148,829 | ) | $ | 25,195 | ||||
| Interest expense | 8,672 | 29,118 | 40,200 | 87,449 | ||||||||||
| Income tax expense (benefit) | 19,514 | 14,457 | (21,316 | ) | (20,147 | ) | ||||||||
| Depreciation and amortization (1) | 19,163 | 18,088 | 72,127 | 98,258 | ||||||||||
| EBITDA | 12,890 | 121,735 | (57,818 | ) | 190,755 | |||||||||
| EBITDA adjustments related to discontinued operations | - | 5,920 | 17,703 | 33,897 | ||||||||||
| Proportional share of EBITDA adjustments of equity method investees | 3,147 | 298 | 4,974 | 1,128 | ||||||||||
| Adjusted EBITDA | $ | 16,037 | $ | 127,953 | $ | (35,141 | ) | $ | 225,780 | |||||
(1) Excludes amortization of operating lease right-of-use assets and amortization of debt issuance costs.
| Green Plains Inc. Contacts |
| Investors: Phil Boggs | Senior Vice President - Investor Relations and Treasurer | 402.884.8700 | phil.boggs@gpreinc.com |
| Media: Leighton Eusebio | Manager - Public Relations | 402.952.4971 | leighton.eusebio@gpreinc.com |