Green Plains Inc 8-K, filed Nov 4, 2021
Green Plains Inc. (GPRE)
About this 8-K
Green Plains Inc filed this 8-K on November 4, 2021.
Items reported
- Item 2.02: Financial results
- Item 9.01: Financial statements and exhibits
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM
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CURRENT REPORT
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
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Green Plains Inc. issued a press release announcing its financial results for the three months ended September 30, 2021. A copy of this press release is attached as Exhibit 99.1.
The information in this current report on Form 8-K, including Exhibit 99.1, is “furnished,” not “filed,” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and is not subject to liability of that section nor deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, before or after this date and regardless of any general incorporation language in the filing, unless explicitly incorporated by reference in such filing.
(d) Exhibits. The following exhibits are filed as part of this report.
| Exhibit No. | Description of Exhibit | |
| 99.1 | Press Release, dated November 4, 2021 | |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Green Plains Inc. | ||
| Date: November 4, 2021 | By: | /s/ G. Patrich Simpkins Jr. |
| G. Patrich Simpkins Jr. | ||
| Chief Financial Officer (Principal Financial Officer) | ||
EXHIBIT 99.1
 | FOR IMMEDIATE RELEASE |
Green Plains Reports Third Quarter 2021 Financial Results
Results for the Third Quarter of 2021:
- Net loss attributable to the company of $59.6 million, or ($1.18) per diluted share
- Adjusted EBITDA of ($14.8) million
- Consolidated crush margin of $0.01 per gallon for the third quarter and $0.16 per gallon year-to-date
- Cash, cash equivalents and restricted cash of $720.9 million with $312.6 million available under committed credit facilities
Highlights and Recent Developments
- Green Plains Wood River LLC’s MSC™ Ultra-High Protein system is operational, with shipments expected in November
- Broke ground on 4th MSC™ Ultra-High Protein facility, at Green Plains Mount Vernon, and anticipate breaking ground at Obion, Green Plains’ 5th MSC™ location in the coming weeks
- Extended sales commitments to our pet food vertical with higher volumes through 2022 with a signed MOU for additional sales through 2023 and expect to expand our customer base near term
- Announced a turnkey solution for MSC™ protein technology, and inaugural project partner, Tharaldson Ethanol, a 175 million gallon facility in Casselton, N.D.
- Completed offering of 5,462,500 shares of common stock at $32.00 per share
- Announced governance updates, including appointing a lead independent director, ongoing refreshment of the Board with two new board members, rotating committee chairs and various amendments enhancing the Board’s oversight and strengthening shareholder rights
OMAHA, Neb., Nov. 04, 2021 (GLOBE NEWSWIRE) -- Green Plains Inc. (NASDAQ:GPRE) today announced financial results for the third quarter of 2021. Net loss attributable to the company was $59.6 million, or ($1.18) per diluted share compared to a net loss of $34.5 million or ($1.00) per diluted share, for the same period in 2020. Revenues were $746.8 million for the third quarter of 2021 compared with $424.1 million for the same period last year.
Commenting on the results, Green Plains’ President and Chief Executive Officer Todd Becker said,
“The third quarter results of $0.01 per gallon consolidated crush margin were impacted by the near-record physical corn basis levels, accelerated completion of maintenance shutdowns and previously announced MTM timing reversals. Our year-to-date margin averaged $0.16 per gallon, and we anticipate full year to finish strong and above our long-term view of the Green Plains 1.0 platform. While we have experienced volatility between quarters due to the timing of various items, we are pleased to have achieved year-to-date results at or above the market and believe we are on track to deliver improved results into 2022 as we continue to execute on our transformation plan while protecting our balance sheet.”
“Today, we are announcing that final commissioning of the Wood River Fluid Quip MSC system is underway and that we expect to begin shipping value-added ingredients as early as November. Besides protein, a major benefit of MSC technology is improved corn oil yields and the facility’s results are already exceeding our expectations, providing additional confidence that we will see the expected increase in renewable corn oil production as we deploy MSC technology across our platform. We expect renewable corn oil’s financial contribution to remain strong, supported by both higher yields and higher prices. When combined with the return to full run rate capability across our platform after the completion of our Project 24 modernization program, we expect to have the capacity to produce over 330 million pounds of renewable corn oil annually by the end of 2022, and expand further with the deployment of additional MSC systems.”
“Our team has made considerable progress on the commercial front. We have signed a multi-year MOU for sales of our Ultra-High Protein ingredients into pet food through 2023, while also increasing sales volumes in 2022. We are finalizing terms with new pet food customers and continue to work alongside our partners on product design and inclusion rates specifically for this vertical. We also continue to negotiate additional multi-year distribution and supply agreements while negotiating and executing commercial agreements in dairy, swine and aquaculture which will start to set baseload volumes for our products as we bring on additional volumes next year. We continue to focus on the unique nutritional requirements of our expanding target markets, differentiating our products from ingredients sold globally today.”
“Our Clean Sugar pilot plant is continuing to produce low-carbon sugars for select customers, resulting in ongoing discussions with key commercial counterparties for potential co-location opportunities, providing additional confidence in our plan as we begin evaluating the engineering and site selection for a larger project. We continue to believe this technology could provide industrial quantities of carbohydrate feedstock for manufacturing applications in the growing biochemical, renewable chemicals and synthetic biology industries at more competitive prices with a lower carbon intensity than other technologies available today. We believe this technology can differentiate Green Plains as we use the Fluid Quip IP portfolio to transform our sites into modern day bio-campuses.”
“We are particularly excited about the progress we have made in deploying Ultra-High Protein technology and expect completion of four Ultra-High Protein facilities over the next 12 months, further accelerating contributions from our high-protein initiative. We have now repeatedly found success in executing longer protein production runs of 58% and higher, made progress in our clean sugar scale-up and we now see new potential for ethanol to become a vital low-carbon feedstock in transportation and sustainable aviation fuels.”
“Across our four strategic areas of growth - value-added ingredients, renewable corn oil, clean sugar and carbon capture and sequestration – we are executing against key milestones. Our transformation continues to progress, and I remain optimistic we can achieve our long-term goals in the pursuit of our low-carbon strategy, not only in clean fuels but also in low-carbon feed ingredients for use around the world and we believe Green Plains will be a leader in this area.”
Results of Operations
Green Plains sold 181.2 million gallons of ethanol during the third quarter of 2021, compared with 189.2 million gallons for the same period in 2020. The consolidated ethanol crush margin was $1.1 million, or $0.01 per gallon, for the third quarter of 2021, compared with $15.8 million, or $0.08 per gallon, for the same period in 2020. The consolidated ethanol crush margin is the ethanol production segment’s operating income before depreciation and amortization, which includes corn oil and Ultra-High Protein, plus intercompany storage, transportation, nonrecurring decommissioning costs and other fees, net of related expenses.
Consolidated revenues increased $322.7 million for the three months ended September 30, 2021, compared with the same period in 2020, primarily due to higher prices for ethanol, distillers grains and corn oil and increased trading revenues within our agribusiness and energy services segment.
Operating loss increased $30.5 million and adjusted EBITDA decreased $21.5 million for the three months ended September 30, 2021, compared with the same period last year, primarily due to decreased margins on ethanol production. Interest expense decreased $0.7 million for the three months ended September 30, 2021, compared with the same period in 2020. Income tax expense was $7,000 for the three months ended September 30, 2021, compared with $7.3 million for the same period in 2020, primarily due to the recording of a valuation allowance against tax NOLs arising during the three months ended September 30, 2020.
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, including industrial-grade alcohol, distillers grains, Ultra-High Protein 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 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 September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||
| 2021 | 2020 | % Var. | 2021 | 2020 | % Var. | |||||||||||||||||||
| Revenues: | ||||||||||||||||||||||||
| Ethanol production | $ | 588,349 | $ | 332,978 | 76.7 | % | $ | 1,567,344 | $ | 1,099,245 | 42.6 | % | ||||||||||||
| Agribusiness and energy services | 162,774 | 95,428 | 70.6 | 470,205 | 359,108 | 30.9 | ||||||||||||||||||
| Partnership | 19,251 | 21,382 | (10.0 | ) | 59,358 | 62,034 | (4.3 | ) | ||||||||||||||||
| Intersegment eliminations | (23,583 | ) | (25,726 | ) | (8.3 | ) | (72,058 | ) | (75,432 | ) | (4.5 | ) | ||||||||||||
| $ | 746,791 | $ | 424,062 | 76.1 | % | $ | 2,024,849 | $ | 1,444,955 | 40.1 | % | |||||||||||||
| Gross margin: | ||||||||||||||||||||||||
| Ethanol production | $ | (9,505 | ) | $ | 2,816 | * | % | $ | 60,309 | $ | (4,241 | ) | * | % | ||||||||||
| Agribusiness and energy services | 8,347 | 8,401 | (0.6 | ) | 29,523 | 19,776 | 49.3 | |||||||||||||||||
| Partnership | 19,251 | 21,382 | (10.0 | ) | 59,358 | 62,034 | (4.3 | ) | ||||||||||||||||
| Intersegment eliminations | (1,481 | ) | (2,470 | ) | (40.0 | ) | (3,161 | ) | (4,671 | ) | (32.3 | ) | ||||||||||||
| $ | 16,612 | $ | 30,129 | (44.9 | ) | % | $ | 146,029 | $ | 72,898 | 100.3 | % | ||||||||||||
| Depreciation and amortization: | ||||||||||||||||||||||||
| Ethanol production | $ | 25,644 | $ | 17,493 | 46.6 | % | $ | 62,655 | $ | 50,575 | 23.9 | % | ||||||||||||
| Agribusiness and energy services | 870 | 655 | 32.8 | 2,072 | 1,764 | 17.5 | ||||||||||||||||||
| Partnership | 1,089 | 940 | 15.9 | 2,771 | 2,867 | (3.3 | ) | |||||||||||||||||
| Corporate activities | 677 | 665 | 1.8 | 1,995 | 2,002 | (0.3 | ) | |||||||||||||||||
| $ | 28,280 | $ | 19,753 | 43.2 | % | $ | 69,493 | $ | 57,208 | 21.5 | % | |||||||||||||
| Operating income (loss): | ||||||||||||||||||||||||
| Ethanol production (1) | $ | (44,192 | ) | $ | (21,351 | ) | 107.0 | % | $ | (30,969 | ) | $ | (100,924 | ) | (69.3 | ) | % | |||||||
| Agribusiness and energy services | 3,225 | 4,296 | (24.9 | ) | 15,720 | 7,207 | 118.1 | |||||||||||||||||
| Partnership | 12,417 | 12,986 | (4.4 | ) | 37,204 | 37,641 | (1.2 | ) | ||||||||||||||||
| Intersegment eliminations | (1,481 | ) | (2,447 | ) | (39.5 | ) | (3,161 | ) | (4,597 | ) | (31.2 | ) | ||||||||||||
| Corporate activities (2) | (14,644 | ) | (7,689 | ) | 90.5 | (1,089 | ) | (27,228 | ) | (96.0 | ) | |||||||||||||
| $ | (44,675 | ) | $ | (14,205 | ) | * | % | $ | 17,705 | $ | (87,901 | ) | * | % | ||||||||||
| Adjusted EBITDA: | ||||||||||||||||||||||||
| Ethanol production | $ | (18,524 | ) | $ | (3,856 | ) | * | % | $ | 31,739 | $ | (49,588 | ) | 164.0 | % | |||||||||
| Agribusiness and energy services | 3,818 | 4,950 | (22.9 | ) | 17,515 | 9,115 | 92.2 | |||||||||||||||||
| Partnership | 13,679 | 14,082 | (2.9 | ) | 40,492 | 40,996 | (1.2 | ) | ||||||||||||||||
| Intersegment eliminations | (1,480 | ) | (2,447 | ) | (39.5 | ) | (3,160 | ) | (4,597 | ) | (31.3 | ) | ||||||||||||
| Corporate activities (3) | (14,129 | ) | (6,022 | ) | 134.6 | (55 | ) | 2,307 | (102.4 | ) | ||||||||||||||
| EBITDA | (16,636 | ) | 6,707 | * | 86,531 | (1,767 | ) | * | ||||||||||||||||
| Loss (gain) on sale of assets, net | 1,823 | (2,000 | ) | * | (31,245 | ) | (2,000 | ) | * | |||||||||||||||
| Proportional share of EBITDA adjustments to equity method investees | 45 | 2,071 | (97.8 | ) | 139 | 7,049 | (98.0 | ) | ||||||||||||||||
| Noncash goodwill impairment | - | - | * | - | 24,091 | * | ||||||||||||||||||
| Adjusted EBITDA | $ | (14,768 | ) | $ | 6,778 | * | % | $ | 55,425 | $ | 27,373 | 102.5 | % | |||||||||||
| (1) Operating loss for ethanol production includes a goodwill impairment charge of $24.1 million for the nine months ended September 30, 2020. | ||||||||||||||||||||||||
| (2) Corporate activities for the three and nine months ended September 30, 2021 include a $1.8 million loss on sale of assets and a $31.2 million gain on sale of assets, respectively, as well as a gain on sale of assets of $2.0 million for both the three and nine months ended September 30, 2020. | ||||||||||||||||||||||||
| (3) Includes corporate expenses, offset by the loss on sale of assets of $1.8 million and the gain on sale of assets of $31.2 million for the three and nine months ended September 30, 2021, respectively, and earnings from equity method investments of $0.6 million and $20.4 million for the three and nine months ended September 30, 2020, respectively, as well as a gain on sale of assets of $2.0 million for both the three and nine months ended September 30, 2020. | ||||||||||||||||||||||||
| * Percentage variances not considered meaningful | ||||||||||||||||||||||||
| GREEN PLAINS INC. | ||||||||||||||||
| SELECTED OPERATING DATA | ||||||||||||||||
| (unaudited, in thousands) | ||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2021 | 2020 | % Var. | 2021 | 2020 | % Var. | |||||||||||
| Ethanol production | ||||||||||||||||
| Ethanol sold (gallons) | 181,214 | 189,202 | (4.2 | ) | % | 550,127 | 579,540 | (5.1 | ) | % | ||||||
| Distillers grains sold (equivalent dried tons) | 492 | 479 | 2.7 | 1,459 | 1,504 | (3.0 | ) | |||||||||
| Corn oil sold (pounds) | 55,397 | 50,953 | 8.7 | 156,835 | 153,001 | 2.5 | ||||||||||
| Corn consumed (bushels) | 62,524 | 65,284 | (4.2 | ) | 189,544 | 201,075 | (5.7 | ) | ||||||||
| Agribusiness and energy services | ||||||||||||||||
| Domestic ethanol sold (gallons) | 213,348 | 189,716 | 12.5 | 620,442 | 578,049 | 7.3 | ||||||||||
| Export ethanol sold (gallons) | 23,721 | 26,190 | (9.4 | ) | 112,146 | 161,802 | (30.7 | ) | ||||||||
| 237,069 | 215,906 | 9.8 | 732,588 | 739,851 | (1.0 | ) | ||||||||||
| Partnership | ||||||||||||||||
| Storage and throughput (gallons) | 182,240 | 189,641 | (3.9 | ) | 553,058 | 581,326 | (4.9 | ) | ||||||||
| GREEN PLAINS INC. | |||||||||||||||
| CONSOLIDATED CRUSH MARGIN | |||||||||||||||
| (unaudited, in thousands except per gallon amounts) | |||||||||||||||
| Three Months Ended September 30, | Three Months Ended September 30, | ||||||||||||||
| 2021 | 2020 | 2021 | 2020 | ||||||||||||
| ($ per gallon produced) | |||||||||||||||
| Ethanol production operating loss | $ | (44,192 | ) | $ | (21,351 | ) | $ | (0.24 | ) | $ | (0.11 | ) | |||
| Depreciation and amortization | 25,644 | 17,493 | 0.14 | 0.09 | |||||||||||
| Total adjusted ethanol production | (18,548 | ) | (3,858 | ) | (0.10 | ) | (0.02 | ) | |||||||
| Intercompany fees, net: | |||||||||||||||
| Storage and logistics (partnership) | 12,775 | 13,185 | 0.07 | 0.07 | |||||||||||
| Marketing and agribusiness fees (1) (agribusiness and energy services) | 6,846 | 6,444 | 0.04 | 0.03 | |||||||||||
| Consolidated ethanol crush margin | $ | 1,073 | $ | 15,771 | $ | 0.01 | $ | 0.08 | |||||||
| (1) For the three months ended September 30, 2021 and 2020, includes $2.5 million and $2.3 million, respectively, for certain nonrecurring decommissioning and nonethanol operations costs. | |||||||||||||||
Liquidity and Capital Resources
On September 30, 2021, Green Plains had $720.9 million in total cash, cash equivalents and restricted cash, and $312.6 million available under committed credit facilities, which are subject to restrictions and other lending conditions. Total debt outstanding at September 30, 2021 was $711.4 million, including $162.5 million outstanding debt under working capital revolvers and other short-term borrowing arrangements and $59.6 million of non-recourse debt related to Green Plains Partners, net of debt issuance costs.
Conference Call Information
On November 4, 2021, 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 third quarter 2021 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 2049686. 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 https://investor.gpreinc.com/events-presentations.
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 change in right-of-use assets. Adjusted EBITDA includes adjustments related to our proportional share of EBITDA adjustments of our equity method investees, gains and losses related to the sale of assets, and noncash goodwill impairment. 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 U.S. 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 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 48.9% limited partner interest and a 2.0% general partner interest in Green Plains Partners LP. For more information, 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: disruption caused by health epidemics, such as the coronavirus outbreak, 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.
Consolidated Financial Results
| GREEN PLAINS INC. | |||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | |||||
| (in thousands) | |||||
| September 30, 2021 | December 31, 2020 | ||||
| (unaudited) | |||||
| ASSETS | |||||
| Current assets | |||||
| Cash and cash equivalents | $ | 589,822 | $ | 233,860 | |
| Restricted cash | 131,073 | 40,950 | |||
| Accounts receivable, net | 90,271 | 55,568 | |||
| Income tax receivable | 1,732 | 661 | |||
| Inventories | 243,207 | 269,491 | |||
| Other current assets | 61,421 | 41,823 | |||
| Total current assets | 1,117,526 | 642,353 | |||
| Property and equipment, net | 842,141 | 801,690 | |||
| Operating lease right-of-use assets | 66,971 | 61,883 | |||
| Other assets | 86,566 | 72,991 | |||
| Total assets | $ | 2,113,204 | $ | 1,578,917 | |
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||
| Current liabilities | |||||
| Accounts payable | $ | 112,459 | $ | 140,058 | |
| Accrued and other liabilities | 42,731 | 38,471 | |||
| Derivative financial instruments | 35,401 | 20,265 | |||
| Current operating lease liabilities | 16,766 | 14,902 | |||
| Short-term notes payable and other borrowings | 162,470 | 140,808 | |||
| Current maturities of long-term debt | 34,477 | 98,052 | |||
| Total current liabilities | 404,304 | 452,556 | |||
| Long-term debt | 514,434 | 287,299 | |||
| Long-term operating lease liabilities | 53,050 | 49,549 | |||
| Other liabilities | 23,798 | 12,849 | |||
| Total liabilities | 995,586 | 802,253 | |||
| Stockholders' equity | |||||
| Total Green Plains stockholders' equity | 971,429 | 646,852 | |||
| Noncontrolling interests | 146,189 | 129,812 | |||
| Total liabilities and stockholders' equity | $ | 2,113,204 | $ | 1,578,917 | |
| GREEN PLAINS INC. | ||||||||||||||||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||||||||||
| (unaudited, in thousands except per share amounts) | ||||||||||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||
| 2021 | 2020 | % Var. | 2021 | 2020 | % Var. | |||||||||||||||||||
| Revenues | ||||||||||||||||||||||||
| Product | $ | 745,240 | $ | 423,027 | 76.2 | % | $ | 2,019,006 | $ | 1,441,248 | 40.1 | % | ||||||||||||
| Services | 1,551 | 1,035 | 49.9 | 5,843 | 3,707 | 57.6 | ||||||||||||||||||
| Total revenues | 746,791 | 424,062 | 76.1 | 2,024,849 | 1,444,955 | 40.1 | ||||||||||||||||||
| Costs and expenses | ||||||||||||||||||||||||
| Cost of goods sold (excluding depreciation and amortization expenses reflected below) | 730,179 | 393,933 | 85.4 | 1,878,820 | 1,372,057 | 36.9 | ||||||||||||||||||
| Operations and maintenance | 5,162 | 6,647 | (22.3 | ) | 17,153 | 19,410 | (11.6 | ) | ||||||||||||||||
| Selling, general and administrative | 26,022 | 19,934 | 30.5 | 72,923 | 62,090 | 17.4 | ||||||||||||||||||
| Loss (gain) on sale of assets, net | 1,823 | (2,000 | ) | * | (31,245 | ) | (2,000 | ) | * | |||||||||||||||
| Goodwill impairment | - | - | * | - | 24,091 | * | ||||||||||||||||||
| Depreciation and amortization | 28,280 | 19,753 | 43.2 | 69,493 | 57,208 | 21.5 | ||||||||||||||||||
| Total costs and expenses | 791,466 | 438,267 | 80.6 | 2,007,144 | 1,532,856 | 30.9 | ||||||||||||||||||
| Operating income (loss) | (44,675 | ) | (14,205 | ) | * | 17,705 | (87,901 | ) | * | |||||||||||||||
| Other income (expense) | ||||||||||||||||||||||||
| Interest income | 25 | 3 | * | 496 | 643 | (22.9 | ) | |||||||||||||||||
| Interest expense | (9,488 | ) | (10,169 | ) | (6.7 | ) | (60,225 | ) | (29,536 | ) | 103.9 | |||||||||||||
| Other, net | (440 | ) | 12 | * | (1,680 | ) | 862 | * | ||||||||||||||||
| Total other expense | (9,903 | ) | (10,154 | ) | (2.5 | ) | (61,409 | ) | (28,031 | ) | 119.1 | |||||||||||||
| Loss before income taxes and income from equity method investees | (54,578 | ) | (24,359 | ) | 124.1 | (43,704 | ) | (115,932 | ) | (62.3 | ) | |||||||||||||
| Income tax benefit (expense) | (7 | ) | (7,280 | ) | (99.9 | ) | 2,914 | 48,461 | (94.0 | ) | ||||||||||||||
| Income from equity method investees, net of income taxes | 174 | 906 | (80.8 | ) | 517 | 20,917 | (97.5 | ) | ||||||||||||||||
| Net loss | (54,411 | ) | (30,733 | ) | 77.0 | (40,273 | ) | (46,554 | ) | (13.5 | ) | |||||||||||||
| Net income attributable to noncontrolling interests | 5,211 | 3,753 | 38.8 | 16,151 | 12,591 | 28.3 | ||||||||||||||||||
| Net loss attributable to Green Plains | $ | (59,622 | ) | $ | (34,486 | ) | 72.9 | % | $ | (56,424 | ) | $ | (59,145 | ) | (4.6 | ) | % | |||||||
| Earnings per share: | ||||||||||||||||||||||||
| Net loss attributable to Green Plains - basic and diluted | $ | (1.18 | ) | $ | (1.00 | ) | $ | (1.27 | ) | $ | (1.71 | ) | ||||||||||||
| Weighted average shares outstanding: | ||||||||||||||||||||||||
| Basic and diluted | 50,482 | 34,629 | 44,581 | 34,632 | ||||||||||||||||||||
| * Percentage variances not considered meaningful | ||||||||||||||||||||||||
| GREEN PLAINS INC. | |||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
| (unaudited, in thousands) | |||||||
| Nine Months Ended September 30, | |||||||
| 2021 | 2020 | ||||||
| Cash flows from operating activities: | |||||||
| Net loss | $ | (40,273 | ) | $ | (46,554 | ) | |
| Noncash operating adjustments: | |||||||
| Depreciation and amortization | 69,493 | 57,208 | |||||
| Gain on sale of assets, net | (31,245 | ) | (1,405 | ) | |||
| Loss on extinguishment of debt | 32,645 | - | |||||
| Goodwill impairment | - | 24,091 | |||||
| Deferred income taxes | (3,008 | ) | (10,569 | ) | |||
| Other | 11,619 | 28,828 | |||||
| Net change in working capital | (67,103 | ) | 24,849 | ||||
| Net cash provided by (used in) operating activities | (27,872 | ) | 76,448 | ||||
| Cash flows from investing activities: | |||||||
| Purchases of property and equipment, net | (123,687 | ) | (85,376 | ) | |||
| Proceeds from the sale of assets | 87,217 | - | |||||
| Other investing activities | (7,000 | ) | (4,098 | ) | |||
| Net cash used in investing activities | (43,470 | ) | (89,474 | ) | |||
| Cash flows from financing activities: | |||||||
| Net proceeds - long-term debt | 178,995 | 67 | |||||
| Net proceeds (payments) - short-term borrowings | 17,863 | (49,705 | ) | ||||
| Proceeds from issuance of common stock | 356,011 | - | |||||
| Payment for repurchase of common stock | - | (11,479 | ) | ||||
| Other | (35,442 | ) | (13,469 | ) | |||
| Net cash provided by (used in) financing activities | 517,427 | (74,586 | ) | ||||
| Net change in cash, cash equivalents and restricted cash | 446,085 | (87,612 | ) | ||||
| Cash, cash equivalents and restricted cash, beginning of period | 274,810 | 269,896 | |||||
| Cash, cash equivalents and restricted cash, end of period | $ | 720,895 | $ | 182,284 | |||
| Reconciliation of total cash, cash equivalents and restricted cash: | |||||||
| Cash and cash equivalents | $ | 589,822 | $ | 150,407 | |||
| Restricted cash | 131,073 | 31,877 | |||||
| Total cash, cash equivalents and restricted cash | $ | 720,895 | $ | 182,284 | |||
| GREEN PLAINS INC. | ||||||||||||||||
| RECONCILIATIONS TO NON-GAAP FINANCIAL MEASURES | ||||||||||||||||
| (unaudited, in thousands) | ||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||
| Net loss | $ | (54,411 | ) | $ | (30,733 | ) | $ | (40,273 | ) | $ | (46,554 | ) | ||||
| Interest expense (1) | 9,488 | 10,169 | 60,225 | 29,536 | ||||||||||||
| Income tax expense (benefit), net of equity method income tax expense | 7 | 7,518 | (2,914 | ) | (41,957 | ) | ||||||||||
| Depreciation and amortization (2) | 28,280 | 19,753 | 69,493 | 57,208 | ||||||||||||
| EBITDA | (16,636 | ) | 6,707 | 86,531 | (1,767 | ) | ||||||||||
| Loss (gain) on sale of assets, net | 1,823 | (2,000 | ) | (31,245 | ) | (2,000 | ) | |||||||||
| Proportional share of EBITDA adjustments to equity method investees | 45 | 2,071 | 139 | 7,049 | ||||||||||||
| Noncash goodwill impairment | - | - | - | 24,091 | ||||||||||||
| Adjusted EBITDA | $ | (14,768 | ) | $ | 6,778 | $ | 55,425 | $ | 27,373 | |||||||
| (1) Interest expense for the nine months ended September 30, 2021 includes a loss upon extinguishment of convertible notes of $22.1 million and a loss on settlement of convertible notes of $9.5 million. | ||||||||||||||||
| (2) Excludes amortization of operating lease right-of-use assets and amortization of debt issuance costs. | ||||||||||||||||
| 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 |