Green Plains Reports First Quarter 2023 Financial Results
Results for the First Quarter of 2023:
-
EPS of (
$1.20 $1.16 -
Protein technology operating at five facilities achieved record daily production rates in recent weeks and on track to produce approximately 900 tons per day for the remainder of the year to achieve annual run rate capacity of 330,000 tons once
Wood River returns to operation - Sold 52,000 tons of Ultra-High Protein in the first quarter, an increase of 40,000 tons over the same period in the prior year
-
Consolidated crush margin of (
$0.07 - 2023 financial outlook significantly improved based on spot and forward margins hitting recent highs, creating opportunities to partially hedge 2023
-
Financial position remains strong to execute on transformation plan with
$408.3 million $159.0 million
“As of the end of the first quarter, we achieved full production operating rates for Ultra-High Protein across our five MSC locations,” said Todd Becker, President and Chief Executive Officer. “We expect to deliver even greater production levels when
“After a very weak start to the year, margins have improved substantially across our platform,” commented Becker. “In recent weeks, with this expansion, we have brought most of our platform back to full production rates with the exception of our
The construction of the first Clean Sugar Technology™ facility in
“Dextrose fundamentals remain very strong and our thesis remains fully intact that this technology has the potential to significantly change our company’s value in the future,” added Becker.
“We believe the second quarter will begin to demonstrate our capabilities through anticipated stronger protein production and margin contributions,” concluded Becker. “We are focused on continuing to execute on our vision of transforming our platform through expanded protein production, higher renewable corn oil yields, dextrose production and carbon capture. Our vision of the path ahead is clear, and our focus on achieving this transformation is unwavering.”
Highlights and Recent Developments
- Development of a novel Alcohol to Jet Sustainable Aviation Fuel technology underway through a joint venture, Blue Blade Energy, with United Airlines and Tallgrass
- Averaged 900 tons per day of Ultra-High Protein production for 21 days, hitting targeted volume
-
Construction of MSCTM at turnkey solution partner Tharaldson Ethanol in
Casselton, North Dakota , is on track and anticipated to be operational in early 2024 - Published third annual Sustainability Report, providing updates on progress toward emissions, governance and other goals
Results of Operations
Green Plains ethanol production segment sold 206.9 million gallons of ethanol during the first quarter of 2023, compared with 196.3 million gallons for the same period in 2022. The consolidated ethanol crush margin was
Consolidated revenues increased
Net loss attributable to Green Plains increased
Segment Information
The company reports the financial and operating performance for the following three operating segments: (1) ethanol production, which includes the production of ethanol, distillers grains, Ultra-High Protein and renewable 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, Ultra-High Protein, renewable corn oil, grain, natural gas and other commodities and (3) 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
|
||||||||
|
|
2023 |
|
|
|
2022 |
|
|
% Var. |
Revenues |
|
|
|
|
|
||||
Ethanol production |
$ |
695,494 |
|
|
$ |
637,553 |
|
|
|
Agribusiness and energy services |
|
142,386 |
|
|
|
148,712 |
|
|
(4.3) |
Partnership |
|
20,775 |
|
|
|
19,100 |
|
|
8.8 |
Intersegment eliminations |
|
(25,706 |
) |
|
|
(23,930 |
) |
|
7.4 |
|
$ |
832,949 |
|
|
$ |
781,435 |
|
|
|
|
|
|
|
|
|
||||
Gross margin |
|
|
|
|
|
||||
Ethanol production |
$ |
(21,453 |
) |
|
$ |
(24,007 |
) |
|
(10.6)% |
Agribusiness and energy services |
|
9,106 |
|
|
|
14,273 |
|
|
(36.2) |
Partnership |
|
20,775 |
|
|
|
19,100 |
|
|
8.8 |
Intersegment eliminations |
|
(484 |
) |
|
|
(440 |
) |
|
10.0 |
|
$ |
7,944 |
|
|
$ |
8,926 |
|
|
(11.0)% |
|
|
|
|
|
|
||||
Depreciation and amortization |
|
|
|
|
|
||||
Ethanol production |
$ |
22,938 |
|
|
$ |
18,432 |
|
|
|
Agribusiness and energy services |
|
813 |
|
|
|
464 |
|
|
75.2 |
Partnership |
|
816 |
|
|
|
898 |
|
|
(9.1) |
Corporate activities |
|
819 |
|
|
|
605 |
|
|
35.4 |
|
$ |
25,386 |
|
|
$ |
20,399 |
|
|
|
|
|
|
|
|
|
||||
Operating income (loss) |
|
|
|
|
|
||||
Ethanol production (1) |
$ |
(53,362 |
) |
|
$ |
(51,158 |
) |
|
|
Agribusiness and energy services |
|
4,126 |
|
|
|
10,408 |
|
|
(60.4) |
Partnership |
|
11,896 |
|
|
|
11,809 |
|
|
0.7 |
Intersegment eliminations |
|
(484 |
) |
|
|
(440 |
) |
|
10.0 |
Corporate activities |
|
(18,716 |
) |
|
|
(18,521 |
) |
|
1.1 |
|
$ |
(56,540 |
) |
|
$ |
(47,902 |
) |
|
|
|
|
|
|
|
|
||||
Adjusted EBITDA |
|
|
|
|
|
||||
Ethanol production (1) |
$ |
(30,267 |
) |
|
$ |
(32,726 |
) |
|
(7.5)% |
Agribusiness and energy services |
|
5,227 |
|
|
|
10,723 |
|
|
(51.3) |
Partnership |
|
12,947 |
|
|
|
12,882 |
|
|
0.5 |
Intersegment eliminations |
|
(484 |
) |
|
|
(919 |
) |
|
(47.3) |
Corporate activities |
|
(15,119 |
) |
|
|
(17,780 |
) |
|
(15.0) |
EBITDA |
|
(27,696 |
) |
|
|
(27,820 |
) |
|
(0.4) |
Proportional share of EBITDA adjustments to equity method investees |
|
45 |
|
|
|
45 |
|
|
— |
|
$ |
(27,651 |
) |
|
$ |
(27,775 |
) |
|
(0.4)% |
(1) Ethanol production includes an inventory lower of cost or net realizable value adjustment of |
|||||||||
GREEN PLAINS INC. SELECTED OPERATING DATA (unaudited, in thousands) |
|||||
|
Three Months Ended March 31, |
||||
|
2023 |
|
2022 |
|
% Var. |
|
|
|
|
|
|
Ethanol production |
|
|
|
|
|
Ethanol sold (gallons) |
206,880 |
|
196,348 |
|
|
Distillers grains sold (equivalent dried tons) |
482 |
|
504 |
|
(4.4) |
Ultra-High Protein sold (tons) |
52 |
|
12 |
|
333.3 |
Renewable corn oil sold (pounds) |
68,011 |
|
59,295 |
|
14.7 |
Corn consumed (bushels) |
71,235 |
|
68,304 |
|
4.3 |
|
|
|
|
|
|
Agribusiness and energy services (1) |
|
|
|
|
|
Domestic ethanol sold (gallons) |
258,275 |
|
181,725 |
|
42.1 |
Export ethanol sold (gallons) |
2,381 |
|
51,260 |
|
(95.4) |
|
260,656 |
|
232,985 |
|
11.9 |
|
|
|
|
|
|
Partnership |
|
|
|
|
|
Storage and throughput (gallons) |
208,072 |
|
197,247 |
|
|
(1) Includes gallons from the ethanol production segment |
|||||
GREEN PLAINS INC. CONSOLIDATED CRUSH MARGIN (unaudited, in thousands except per gallon amounts) |
|||||||||||||||
|
Three Months Ended
|
|
Three Months Ended
|
||||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
|
($ per gallon produced) |
||||||||||
|
|
|
|
|
|
|
|
||||||||
Ethanol production operating loss (1) |
$ |
(53,362 |
) |
|
$ |
(51,158 |
) |
|
$ |
(0.26 |
) |
|
$ |
(0.26 |
) |
Depreciation and amortization |
|
22,938 |
|
|
|
18,432 |
|
|
|
0.11 |
|
|
|
0.10 |
|
Total adjusted ethanol production |
|
(30,424 |
) |
|
|
(32,726 |
) |
|
|
(0.15 |
) |
|
|
(0.16 |
) |
|
|
|
|
|
|
|
|
||||||||
Intercompany fees, net |
|
|
|
|
|
|
|
||||||||
Storage and logistics (partnership) |
|
9,458 |
|
|
|
12,128 |
|
|
|
0.05 |
|
|
|
0.06 |
|
Marketing and agribusiness fees (2) (agribusiness and energy services) |
|
5,662 |
|
|
|
6,384 |
|
|
|
0.03 |
|
|
|
0.03 |
|
Consolidated ethanol crush margin |
$ |
(15,304 |
) |
|
$ |
(14,214 |
) |
|
$ |
(0.07 |
) |
|
$ |
(0.07 |
) |
(1) Ethanol production includes an inventory lower of cost or net realizable value adjustment of
(2) For the three months ended March 31, 2023 and 2022, includes |
|||||||||||||||
Liquidity and Capital Resources
As of March 31, 2023, Green Plains had
Conference Call Information
On May 4, 2023, Green Plains Inc. and Green Plains Partners LP will host a joint conference call at 9 a.m. Eastern time (8 a.m. Central time) to discuss first quarter 2023 operating results for each company. Domestic and international participants can access the conference call by dialing 888.210.4215 and 646.960.0269, respectively, and referencing conference ID 5027523. Participants are advised to call at least 10 minutes prior to the start time. Alternatively, the conference call and presentation will be accessible on Green Plains’ website here.
Non-GAAP Financial Measures
Management uses EBITDA, 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 change in right-of-use assets. Adjusted EBITDA includes adjustments related to 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
About Green Plains Inc.
Green Plains Inc. (NASDAQ:GPRE) is a leading biorefining company focused on the development and utilization of fermentation, agricultural and biological technologies in the processing of annually renewable crops into sustainable value-added ingredients. This includes the production of cleaner low carbon biofuels, renewable feedstocks for advanced biofuels and high purity alcohols for use in cleaners and disinfectants. Green Plains is an innovative producer of Ultra-High Protein and novel ingredients for animal and aquaculture diets to help satisfy a growing global appetite for sustainable protein. The Company also owns a
About Green Plains Partners LP
Green Plains Partners LP (NASDAQ:GPP) is a fee-based
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 benefits from its plant upgrade and modernization program, disruption caused by health epidemics, such as the COVID-19 outbreak, 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) |
|||||
|
March 31,
|
|
December 31,
|
||
|
(unaudited) |
|
|
||
ASSETS |
|||||
Current assets |
|
|
|
||
Cash and cash equivalents |
$ |
354,204 |
|
$ |
444,661 |
Restricted cash |
|
54,139 |
|
|
55,615 |
Accounts receivable, net |
|
106,546 |
|
|
108,610 |
Income taxes receivable |
|
771 |
|
|
1,286 |
Inventories |
|
279,707 |
|
|
278,950 |
Other current assets |
|
35,187 |
|
|
39,628 |
Total current assets |
|
830,554 |
|
|
928,750 |
Property and equipment, net |
|
1,028,491 |
|
|
1,029,327 |
Operating lease right-of-use assets |
|
84,362 |
|
|
73,244 |
Other assets |
|
91,425 |
|
|
91,810 |
Total assets |
$ |
2,034,832 |
|
$ |
2,123,131 |
|
|
|
|
||
LIABILITIES AND STOCKHOLDERS' EQUITY |
|||||
Current liabilities |
|
|
|
||
Accounts payable |
$ |
128,557 |
|
$ |
234,301 |
Accrued and other liabilities |
|
47,258 |
|
|
44,443 |
Derivative financial instruments |
|
65,149 |
|
|
47,941 |
Operating lease current liabilities |
|
23,373 |
|
|
20,721 |
Short-term notes payable and other borrowings |
|
212,670 |
|
|
137,678 |
Current maturities of long-term debt |
|
1,832 |
|
|
1,838 |
Total current liabilities |
|
478,839 |
|
|
486,922 |
Long-term debt |
|
495,114 |
|
|
495,243 |
Operating lease long-term liabilities |
|
64,406 |
|
|
55,515 |
Other liabilities |
|
23,436 |
|
|
24,385 |
Total liabilities |
|
1,061,795 |
|
|
1,062,065 |
|
|
|
|
||
Stockholders' equity |
|
|
|
||
Total Green Plains stockholders' equity |
|
822,988 |
|
|
910,031 |
Noncontrolling interests |
|
150,049 |
|
|
151,035 |
Total stockholders' equity |
|
973,037 |
|
|
1,061,066 |
Total liabilities and stockholders' equity |
$ |
2,034,832 |
|
$ |
2,123,131 |
GREEN PLAINS INC. CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited, in thousands except per share amounts) |
|||||||
|
Three Months Ended
|
||||||
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
||||
Revenues |
$ |
832,949 |
|
|
$ |
781,435 |
|
|
|
|
|
||||
Costs and expenses |
|
|
|
||||
Cost of goods sold (excluding depreciation and amortization expenses reflected below) |
|
825,005 |
|
|
|
772,509 |
|
Operations and maintenance expenses |
|
7,253 |
|
|
|
5,566 |
|
Selling, general and administrative expenses |
|
31,845 |
|
|
|
30,863 |
|
Depreciation and amortization expenses |
|
25,386 |
|
|
|
20,399 |
|
Total costs and expenses |
|
889,489 |
|
|
|
829,337 |
|
Operating loss |
|
(56,540 |
) |
|
|
(47,902 |
) |
|
|
|
|
||||
Other income (expense) |
|
|
|
||||
Interest income |
|
3,165 |
|
|
|
71 |
|
Interest expense |
|
(9,738 |
) |
|
|
(8,806 |
) |
Other, net |
|
189 |
|
|
|
411 |
|
Total other expense |
|
(6,384 |
) |
|
|
(8,324 |
) |
Loss before income taxes and income (loss) from equity method investees |
|
(62,924 |
) |
|
|
(56,226 |
) |
Income tax benefit (expense) |
|
(3,429 |
) |
|
|
1,153 |
|
Income (loss) from equity method investees |
|
104 |
|
|
|
(799 |
) |
Net loss |
|
(66,249 |
) |
|
|
(55,872 |
) |
Net income attributable to noncontrolling interests |
|
4,075 |
|
|
|
5,602 |
|
Net loss attributable to Green Plains |
$ |
(70,324 |
) |
|
$ |
(61,474 |
) |
|
|
|
|
||||
Earnings per share |
|
|
|
||||
Net loss attributable to Green Plains - basic and diluted |
$ |
(1.20 |
) |
|
$ |
(1.16 |
) |
|
|
|
|
||||
Weighted average shares outstanding |
|
|
|
||||
Basic and diluted |
|
58,549 |
|
|
|
52,887 |
|
GREEN PLAINS INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited, in thousands) |
|||||||
|
Three Months Ended
|
||||||
|
|
2023 |
|
|
|
2022 |
|
Cash flows from operating activities |
|
|
|
||||
Net loss |
$ |
(66,249 |
) |
|
$ |
(55,872 |
) |
Noncash operating adjustments |
|
|
|
||||
Depreciation and amortization |
|
25,386 |
|
|
|
20,399 |
|
Other |
|
8,557 |
|
|
|
2,859 |
|
Net change in working capital |
|
(84,662 |
) |
|
|
(129,926 |
) |
Net cash used in operating activities |
|
(116,968 |
) |
|
|
(162,540 |
) |
|
|
|
|
||||
Cash flows from investing activities |
|
|
|
||||
Purchases of property and equipment, net |
|
(32,591 |
) |
|
|
(61,984 |
) |
Proceeds from the sale of marketable securities |
|
— |
|
|
|
99,917 |
|
Other investing activities |
|
(2,829 |
) |
|
|
— |
|
Net cash provided by (used in) investing activities |
|
(35,420 |
) |
|
|
37,933 |
|
|
|
|
|
||||
Cash flows from financing activities |
|
|
|
||||
Net proceeds (payments) - long term debt |
|
(515 |
) |
|
|
43,823 |
|
Net proceeds - short-term borrowings |
|
74,677 |
|
|
|
135,472 |
|
Other |
|
(13,707 |
) |
|
|
(11,382 |
) |
Net cash provided by financing activities |
|
60,455 |
|
|
|
167,913 |
|
|
|
|
|
||||
Net change in cash and cash equivalents, and restricted cash |
|
(91,933 |
) |
|
|
43,306 |
|
Cash and cash equivalents, and restricted cash, beginning of period |
|
500,276 |
|
|
|
560,959 |
|
Cash and cash equivalents, and restricted cash, end of period |
$ |
408,343 |
|
|
$ |
604,265 |
|
|
|
|
|
||||
|
|
|
|
||||
Reconciliation of total cash and cash equivalents, and restricted cash |
|
|
|
||||
Cash and cash equivalents |
$ |
354,204 |
|
|
$ |
509,195 |
|
Restricted cash |
|
54,139 |
|
|
|
95,070 |
|
Total cash and cash equivalents, and restricted cash |
$ |
408,343 |
|
|
$ |
604,265 |
|
GREEN PLAINS INC. RECONCILIATIONS TO NON-GAAP FINANCIAL MEASURES (unaudited, in thousands) |
|||||||
|
Three Months Ended
|
||||||
|
|
2023 |
|
|
|
2022 |
|
Net loss |
$ |
(66,249 |
) |
|
$ |
(55,872 |
) |
Interest expense |
|
9,738 |
|
|
|
8,806 |
|
Income tax expense (benefit) |
|
3,429 |
|
|
|
(1,153 |
) |
Depreciation and amortization (1) |
|
25,386 |
|
|
|
20,399 |
|
EBITDA |
|
(27,696 |
) |
|
|
(27,820 |
) |
Proportional share of EBITDA adjustments to equity method investees |
|
45 |
|
|
|
45 |
|
Adjusted EBITDA |
$ |
(27,651 |
) |
|
$ |
(27,775 |
) |
(1) Excludes amortization of operating lease right-of-use assets and amortization of debt issuance costs. |
|||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20230504005329/en/
Green Plains Inc. Contacts
Investors: Phil Boggs | Executive Vice President, Investor Relations | 402.884.8700 | phil.boggs@gpreinc.com
Media: Lisa Gibson | Communications Manager | 402.952.4971 | lisa.gibson@gpreinc.com
Source: Green Plains Inc.
