- Net income of $34.4 million, or $0.74 per diluted share
- Recognized research and development tax credits totaling $49.5 million, with $40.5 million reported as an income tax benefit and $9.0 million reported as a reduction of operating expenses
- Adjusted net loss of $7.4 million, or $(0.18) per diluted share, from current operations before refinancing expenses of $12.3 million and net research and development tax credits of $49.5 million
- Total company EBITDA of $61.6 million, excluding corporate activity, including $9.0 million of research and development tax credits reported within operations
- Segment EBITDA of $36.0 million, excluding ethanol production and corporate activities
OMAHA, Neb., Nov. 01, 2017 (GLOBE NEWSWIRE) -- Green Plains Inc. (NASDAQ:GPRE) today announced financial results for the third quarter of 2017. Net income attributable to the company was $34.4 million, or $0.74 per diluted share, for the third quarter of 2017 compared with net income of $7.9 million, or $0.20 per diluted share, for the same period in 2016. Included in the company’s third quarter results were expenses related to refinancing and expanding the company’s term loan of $12.3 million (cash portion of $2.9 million), and net research and development tax credits (“R&D tax credits”) related to qualifying activities totaling $49.5 million. Net loss attributable to the company, excluding these items, net of taxes, was $7.4 million, or $(0.18) per diluted share. Revenues were $901.2 million for the third quarter of 2017 compared with $841.9 million for the same period last year.
“We will continue to flex our production based on market conditions at each individual plant and closely monitor for needed adjustments during the remainder of the fourth quarter and into 2018,” commented Todd Becker, president and chief executive officer. “Our food and ingredients, and partnership segments had another strong quarter, led by continued growth in both segments. Our plan remains the same—we will focus on diversification of the platform, while determining optimal ethanol plant operating levels based on market dynamics.”
During the third quarter, Green Plains produced 313.6 million gallons of ethanol compared with 292.2 million gallons for the same period in 2016. The consolidated ethanol crush margin was $47.3 million, or $0.15 per gallon, for the third quarter of 2017, including $9.0 million of R&D tax credits, compared with $51.6 million, or $0.17 per gallon, for the same period in 2016. The consolidated ethanol crush margin is the ethanol production segment’s operating income before depreciation and amortization, which includes corn oil production, plus intercompany storage, transportation and other fees, net of related expenses.
The company completed an in-depth tax study, covering the periods beginning 2013 through the third quarter of 2017, and concluded it was entitled to certain R&D tax credits. The company recognized these credits during the third quarter of 2017. The company expects the credits to be realized against income tax payments at the state and federal level upon review by the IRS, which the company anticipates will take a year or more.
“We achieved a major milestone this quarter with the new $500 million term loan financing, which gives the company the most simplified term debt structure since inception,” Becker added. “In addition, since the 2015 permanent change in the research and development tax credit, we conducted a review of trials and plant improvement projects in our continuous improvement programs for all open tax years with the assistance of our third-party tax advisor, resulting in the credits taken this quarter. These credits are accretive to our shareholders as an adjustment to this year’s bottom line.”
“Our overall segment EBITDA was approximately $61.6 million for the third quarter of 2017 before corporate costs and was the best quarter this year,” Becker continued. “We experienced an improvement in the consolidated crush margin during the third quarter compared with the second quarter of 2017 and we further executed a significant fourth quarter hedging program against our total production capability.”
Revenues attributable to the company were $2.7 billion for the nine-month period ended Sept. 30, 2017, compared with $2.5 billion for the same period in 2016. Net income for the nine-month period ended Sept. 30, 2017, was $14.4 million, or $0.48 per diluted share, compared with net loss of $8.0 million, or $(0.21) per diluted share, for the same period in 2016. Excluding the impact of the debt refinancing costs and R&D tax credits, results for the nine-month period ended Sept. 30, 2017, were a net loss of $27.4 million, or $(0.68) per diluted share.
“We remain on track towards our approximately $150 million goal of segment EBITDA for the full year, excluding ethanol production and corporate activities, and continue to look for opportunities to grow each of these businesses,” said Becker. “We started to execute on our share repurchase program and ended the quarter with a much stronger cash and liquidity position overall. We also expect our new export terminal in Beaumont, Texas to start operations in November. Export demand remains strong for the products we produce, domestic demand is steady and we expect expanded blends to start gaining traction as more retailers start selling E15, which is now at more than 1,000 stations across 29 states.”
Recent Developments
- In November 2017, the company anticipates Phase I of the intermodal export and import fuels terminal at Jefferson Gulf Coast Energy Partner’s existing Beaumont, Texas terminal to be completed.
- During the third quarter, the company repurchased 335,849 shares of common stock for $5.7 million.
- On Sept. 11, 2017, John Neppl joined the company as chief financial officer of Green Plains and Green Plains Partners, replacing Jerry Peters, who retired. Mr. Peters continues as a member of the board of directors of Green Plains Holdings LLC, the general partner of Green Plains Partners. Mr. Neppl most recently served as chief financial officer of The Gavilon Group, LLC and brings extensive experience in commodity processing and trading businesses.
- On Aug. 29, 2017, Green Plains entered into a $500 million term loan agreement, which matures on August 29, 2023, to refinance $405 million of existing debt. The term loan is secured by substantially all of the company’s assets, including 17 ethanol production facilities, vinegar production facilities and a second priority lien on the assets secured under the revolving credit facilities at Green Plains Trade, Green Plains Cattle and Green Plains Grain.
- On July 28, 2017, Green Plains’ wholly owned subsidiary, Green Plains Trade, amended its senior secured revolving credit agreement, increasing the maximum commitment from $150 million to $300 million and extending the maturity date from Nov. 26, 2019, to July 28, 2022. The amendment reduces the interest rate spreads, increases inventory advance rates and expands eligible inventory locations and commodities.
Results of Operations
Consolidated revenues increased $59.4 million for the three months ended Sept. 30, 2017, compared with the same period in 2016. Revenues were impacted by increased ethanol volumes sold, plus the additions of Fleischmann’s Vinegar during the fourth quarter of 2016 and the cattle feedlots during the first and second quarters of 2017.
Operating income decreased $10.1 million for the three months ended Sept. 30, 2017, compared with the same period last year primarily due to decreased margins on ethanol production, partially offset by the Fleischmann’s Vinegar and the cattle feedlot acquisitions. Excluding the impact of $9.0 million of R&D tax credits recorded as a reduction of operating expense, operating income decreased by $19.1 million. Interest expense increased $20.1 million for the three months ended Sept. 30, 2017, compared with the same period in 2016, primarily due to $12.3 million in expense associated with the termination of previous credit facilities, higher average debt outstanding and increased borrowing costs driven by growth in the cattle business and acquisition of Fleischmann’s Vinegar. Income tax benefit was $48.8 million, including net R&D tax credits of $40.5 million for the three months ended Sept. 30, 2017, compared with income tax expense of $5.1 million for the same period in 2016.
Earnings before interest, income taxes, depreciation and amortization (EBITDA) for the third quarter of 2017 was $50.4 million (or $41.4 million excluding the impact of $9.0 million of R&D tax credits recognized within operating expense) compared with $49.1 million for the same period last year.
Segment Information
During the fourth quarter of 2016, management restructured its operating segments. The four segments are: (1) ethanol production, which includes ethanol, distillers grains and corn oil production, (2) agribusiness and energy services, which includes grain handling and storage, commodity marketing and merchant trading, (3) food and ingredients, which includes the vinegar, cattle feedlot and food-grade corn oil operations 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. Prior periods have been reclassified to conform to the revised segment presentation.
| GREEN PLAINS INC. | |||||||||||||||||||||||
| SEGMENT OPERATIONS | |||||||||||||||||||||||
| (unaudited, in thousands) | |||||||||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2017 | 2016 | % Var. | 2017 | 2016 | % Var. | ||||||||||||||||||
| Revenues: | |||||||||||||||||||||||
| Ethanol production | $ | 623,759 | $ | 586,988 | 6.3 | % | $ | 1,863,980 | $ | 1,710,484 | 9.0 | % | |||||||||||
| Agribusiness and energy services | 179,010 | 177,079 | 1.1 | 517,349 | 556,379 | (7.0 | ) | ||||||||||||||||
| Food and ingredients | 114,788 | 84,692 | 35.5 | 329,545 | 230,924 | 42.7 | |||||||||||||||||
| Partnership | 26,449 | 26,205 | 0.9 | 78,743 | 75,487 | 4.3 | |||||||||||||||||
| Intersegment eliminations | (42,771 | ) | (33,112 | ) | 29.2 | (114,435 | ) | (94,491 | ) | 21.1 | |||||||||||||
| $ | 901,235 | $ | 841,852 | 7.1 | % | $ | 2,675,182 | $ | 2,478,783 | 7.9 | % | ||||||||||||
| Gross margin: | |||||||||||||||||||||||
| Ethanol production | $ | 32,855 | $ | 37,283 | (11.9 | ) | % | $ | 61,292 | $ | 60,843 | 0.7 | % | ||||||||||
| Agribusiness and energy services | 10,275 | 13,437 | (23.5 | ) | 30,110 | 38,246 | (21.3 | ) | |||||||||||||||
| Food and ingredients | 15,934 | 5,901 | 170.0 | 47,647 | 11,838 | 302.5 | |||||||||||||||||
| Partnership | 26,449 | 26,206 | 0.9 | 78,743 | 75,487 | 4.3 | |||||||||||||||||
| Intersegment eliminations | (65 | ) | 142 | * | (312 | ) | (725 | ) | (56.8 | ) | |||||||||||||
| $ | 85,446 | $ | 82,969 | 3.0 | % | $ | 217,478 | $ | 185,689 | 17.1 | % | ||||||||||||
| Depreciation and amortization: | |||||||||||||||||||||||
| Ethanol production | $ | 20,959 | $ | 15,725 | 33.3 | % | $ | 61,443 | $ | 46,655 | 31.7 | % | |||||||||||
| Agribusiness and energy services | 1,457 | 628 | 132.0 | 2,776 | 1,882 | 47.5 | |||||||||||||||||
| Food and ingredients | 3,139 | 257 | * | 9,259 | 802 | * | |||||||||||||||||
| Partnership | 1,280 | 1,515 | (15.5 | ) | 3,781 | 4,220 | (10.4 | ) | |||||||||||||||
| Corporate activities | 999 | 1,161 | (14.0 | ) | 2,846 | 2,573 | 10.6 | ||||||||||||||||
| $ | 27,834 | $ | 19,286 | 44.3 | % | $ | 80,105 | $ | 56,132 | 42.7 | % | ||||||||||||
| Operating income (loss): | |||||||||||||||||||||||
| Ethanol production | $ | 3,107 | $ | 14,334 | (78.3 | ) | % | $ | (25,950 | ) | $ | (7,673 | ) | (238.2 | ) | % | |||||||
| Agribusiness and energy services | 3,686 | 7,241 | (49.1 | ) | 13,138 | 20,744 | (36.7 | ) | |||||||||||||||
| Food and ingredients | 10,132 | 5,199 | 94.9 | 30,472 | 9,594 | 217.6 | |||||||||||||||||
| Partnership | 16,290 | 15,084 | 8.0 | 47,707 | 42,958 | 11.1 | |||||||||||||||||
| Intersegment eliminations | 8 | 181 | (95.6 | ) | (147 | ) | (612 | ) | (76.0 | ) | |||||||||||||
| Corporate activities | (12,507 | ) | (11,184 | ) | 11.8 | (30,898 | ) | (29,393 | ) | 5.1 | |||||||||||||
| $ | 20,716 | $ | 30,855 | (32.9 | ) | % | $ | 34,322 | $ | 35,618 | (3.6 | ) | % | ||||||||||
| EBITDA: | |||||||||||||||||||||||
| Ethanol production | $ | 25,570 | $ | 30,155 | (15.2 | ) | % | $ | 38,521 | $ | 39,164 | (1.6 | ) | % | |||||||||
| Agribusiness and energy services | 5,150 | 6,310 | (18.4 | ) | 15,910 | 21,246 | (25.1 | ) | |||||||||||||||
| Food and ingredients | 13,272 | 5,465 | 142.9 | 39,741 | 10,430 | 281.0 | |||||||||||||||||
| Partnership | 17,589 | 16,620 | 5.8 | 51,549 | 47,241 | 9.1 | |||||||||||||||||
| Intersegment eliminations | 8 | (39 | ) | 120.5 | (147 | ) | (1,174 | ) | (87.5 | ) | |||||||||||||
| Corporate activities | (11,212 | ) | (9,439 | ) | 18.8 | (27,275 | ) | (25,944 | ) | 5.1 | |||||||||||||
| $ | 50,377 | $ | 49,072 | 2.7 | % | $ | 118,299 | $ | 90,963 | 30.1 | % | ||||||||||||
| * Percentage variance not considered meaningful. | |||||||||||||||||||||||
| GREEN PLAINS INC. | ||||||||||||||
| SELECTED OPERATING DATA | ||||||||||||||
| (unaudited, in thousands) | ||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
| 2017 | 2016 | % Var. | 2017 | 2016 | % Var. | |||||||||
| Ethanol production | ||||||||||||||
| Ethanol (gallons) | 313,642 | 292,238 | 7.3 | % | 915,607 | 813,464 | 12.6 | % | ||||||
| Distillers grains (equivalent dried tons) | 817 | 790 | 3.4 | 2,421 | 2,170 | 11.6 | ||||||||
| Corn oil (pounds) | 75,440 | 72,176 | 4.5 | 216,482 | 196,530 | 10.2 | ||||||||
| Corn consumed (bushels) | 109,544 | 102,113 | 7.3 | 318,709 | 284,282 | 12.1 | ||||||||
| Agribusiness and energy services | ||||||||||||||
| Domestic ethanol sold (gallons) | 345,038 | 301,077 | 14.6 | 982,946 | 902,930 | 8.9 | ||||||||
| Export ethanol sold (gallons) | 34,773 | 34,903 | (0.4 | ) | 137,412 | 114,875 | 19.6 | |||||||
| 379,811 | 335,980 | 13.0 | 1,120,358 | 1,017,805 | 10.1 | |||||||||
| Food and ingredients | ||||||||||||||
| Company cattle on feed (daily average head) | 148 | 68 | 117.6 | 100 | 65 | 53.8 | ||||||||
| Customer cattle on feed (daily average head) | 70 | 1 | * | 59 | 1 | * | ||||||||
| Partnership | ||||||||||||||
| Storage and throughput (gallons) | 308,316 | 292,667 | 5.3 | 913,894 | 819,056 | 11.6 | ||||||||
| * Percentage variance not considered meaningful. | ||||||||||||||
| GREEN PLAINS INC. | |||||||||||
| CONSOLIDATED CRUSH MARGIN | |||||||||||
| (unaudited, in thousands except per gallon amounts) | |||||||||||
| Three Months Ended September 30, | Three Months Ended September 30, | ||||||||||
| 2017 | 2016 | 2017 | 2016 | ||||||||
| ($ in thousands) | ($ per gallon produced) | ||||||||||
| Ethanol production operating income | $ | 3,107 | $ | 14,334 | $ | 0.01 | $ | 0.05 | |||
| Depreciation and amortization | 20,959 | 15,725 | 0.07 | 0.05 | |||||||
| Total ethanol production | 24,066 | 30,059 | 0.08 | 0.10 | |||||||
| Intercompany fees, net: | |||||||||||
| Storage and logistics (partnership) | 16,205 | 15,675 | 0.05 | 0.05 | |||||||
| Marketing and agribusiness fees (agribusiness and energy services) | |||||||||||
| 7,047 | 5,893 | 0.02 | 0.02 | ||||||||
| Consolidated crush margin | $ | 47,318 | $ | 51,627 | $ | 0.15 | $ | 0.17 | |||
Liquidity and Capital Resources
On Sept. 30, 2017, Green Plains had $292.4 million in total cash and cash equivalents, and $297.0 million available under revolving credit agreements, some of which are subject to restrictions and other lending conditions. Total debt outstanding was $1,294.2 million, including $457.8 million outstanding under working capital revolvers and other short-term borrowing arrangements for the agribusiness and energy services, and the food and ingredients segments at Sept. 30, 2017.
Conference Call Information
On Nov. 2, 2017, 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 2017 financial and operating results for each company. Domestic and international participants can access the conference call by dialing 888.349.9582 and 719.785.1768, respectively. 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 earnings before interest, income taxes, depreciation and amortization, or EBITDA, segment EBITDA and consolidated ethanol crush margin to measure the company’s financial performance and to internally manage its businesses. 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 EBITDA, segment EBITDA and consolidated ethanol crush margins may not be comparable with similarly titled measures of another company.
To supplement our condensed consolidated statements of operations presented in accordance with GAAP, the company has provided non-GAAP adjusted financial measures of operating results that excludes certain items. Basic and diluted earnings per share attributable to Green Plains are presented in the Reconciliation to Non-GAAP Adjusted Financial Measures as reported on a GAAP and non-GAAP basis related to the impact of the expenses for refinancing and expanding the company’s term loan and net R&D tax credits related to qualifying activities. Management believes including these additional measures may enhance the investor’s overall understanding of the company’s ongoing operations. These measures should not be considered alternatives to net income or segment operating income, which are determined in accordance with GAAP.
About Green Plains Inc.
Green Plains Inc. (NASDAQ:GPRE) is a diversified commodity-processing business with operations related to ethanol production, grain handling and storage, cattle feedlots, food ingredients, and commodity marketing and logistics services. The company is the second largest consolidated owner of ethanol production facilities in the world with 17 dry mill plants, producing nearly 1.5 billion gallons of ethanol at full capacity. Green Plains owns a 62.5% limited partner interest and a 2.0% general partner interest in Green Plains Partners. 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 tanks, 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; risks related to closing and achieving anticipated results from acquisitions; risks associated with the joint venture to commercialize algae production and growth potential of the algal biomass industry; risks associated with the recent acquisitions of three ethanol plants, Fleischmann’s Vinegar and three cattle feedlots; 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, 2017 | December 31, 2016 | ||||
| ASSETS | (unaudited) | ||||
| Current assets | |||||
| Cash and cash equivalents | $ | 261,588 | $ | 304,211 | |
| Restricted cash | 30,773 | 51,979 | |||
| Accounts receivable, net | 114,978 | 147,495 | |||
| Inventories | 612,447 | 422,181 | |||
| Other current assets | 80,603 | 74,710 | |||
| Total current assets | 1,100,389 | 1,000,576 | |||
| Property and equipment, net | 1,188,270 | 1,178,706 | |||
| Other assets | 339,878 | 327,210 | |||
| Total assets | $ | 2,628,537 | $ | 2,506,492 | |
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||
| Current liabilities | |||||
| Accounts payable | $ | 174,788 | $ | 192,275 | |
| Accrued and other liabilities | 48,500 | 67,473 | |||
| Derivative financial instruments | 12,004 | 8,916 | |||
| Short-term notes payable and other borrowings | 457,764 | 291,223 | |||
| Current maturities of long-term debt | 6,486 | 35,059 | |||
| Total current liabilities | 699,542 | 594,946 | |||
| Long-term debt | 829,923 | 782,610 | |||
| Other liabilities | 84,679 | 149,745 | |||
| Total liabilities | 1,614,144 | 1,527,301 | |||
| Stockholders' equity | |||||
| Total Green Plains stockholders' equity | 897,911 | 862,507 | |||
| Noncontrolling interests | 116,482 | 116,684 | |||
| Total liabilities and stockholders' equity | $ | 2,628,537 | $ | 2,506,492 | |
| GREEN PLAINS INC. | |||||||||||||||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||||||||||
| (unaudited, in thousands except per share amounts) | |||||||||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2017 | 2016 | % Var. | 2017 | 2016 | % Var. | ||||||||||||||||||
| Revenues | |||||||||||||||||||||||
| Product | $ | 899,534 | $ | 839,786 | 7.1 | % | $ | 2,670,458 | $ | 2,472,741 | 8.0 | % | |||||||||||
| Service | 1,701 | 2,066 | (17.7 | ) | 4,724 | 6,042 | (21.8 | ) | |||||||||||||||
| Total revenues | 901,235 | 841,852 | 7.1 | 2,675,182 | 2,478,783 | 7.9 | |||||||||||||||||
| Costs and expenses | |||||||||||||||||||||||
| Cost of goods sold | 815,787 | 758,883 | 7.5 | 2,457,702 | 2,293,094 | 7.2 | |||||||||||||||||
| Operations and maintenance | 8,309 | 8,564 | (3.0 | ) | 25,107 | 25,713 | (2.4 | ) | |||||||||||||||
| Selling, general and administrative | 28,589 | 24,264 | 17.8 | 77,946 | 68,226 | 14.2 | |||||||||||||||||
| Depreciation and amortization | 27,834 | 19,286 | 44.3 | 80,105 | 56,132 | 42.7 | |||||||||||||||||
| Total costs and expenses | 880,519 | 810,997 | 8.6 | 2,640,860 | 2,443,165 | 8.1 | |||||||||||||||||
| Operating income | 20,716 | 30,855 | (32.9 | ) | 34,322 | 35,618 | (3.6 | ) | |||||||||||||||
| Other income (expense) | |||||||||||||||||||||||
| Interest income | 383 | 484 | (20.9 | ) | 1,061 | 1,263 | (16.0 | ) | |||||||||||||||
| Interest expense | (31,889 | ) | (11,819 | ) | 169.8 | (69,815 | ) | (33,117 | ) | 110.8 | |||||||||||||
| Other, net | 1,444 | (1,553 | ) | * | 2,811 | (2,050 | ) | * | |||||||||||||||
| Total other expense | (30,062 | ) | (12,888 | ) | 133.3 | (65,943 | ) | (33,904 | ) | 94.5 | |||||||||||||
| Income (loss) before income taxes | (9,346 | ) | 17,967 | * | (31,621 | ) | 1,714 | * | |||||||||||||||
| Income tax expense (benefit) | (48,775 | ) | 5,083 | * | (60,905 | ) | (4,339 | ) | * | ||||||||||||||
| Net income | 39,429 | 12,884 | 206.0 | 29,284 | 6,053 | 383.8 | |||||||||||||||||
| Net income attributable to noncontrolling interests | 5,035 | 4,956 | 1.6 | 14,853 | 14,072 | 5.6 | |||||||||||||||||
| Net income (loss) attributable to Green Plains | $ | 34,394 | $ | 7,928 | 333.8 | % | $ | 14,431 | $ | (8,019 | ) | 280.0 | % | ||||||||||
| Earnings per share: | |||||||||||||||||||||||
| Net income (loss) attributable to Green Plains - basic | $ | 0.83 | $ | 0.21 | $ | 0.36 | $ | (0.21 | ) | ||||||||||||||
| Net income (loss) attributable to Green Plains - diluted | $ | 0.74 | $ | 0.20 | $ | 0.48 | $ | (0.21 | ) | ||||||||||||||
| Weighted average shares outstanding: | |||||||||||||||||||||||
| Basic | 41,348 | 38,282 | 40,008 | 38,301 | |||||||||||||||||||
| Diluted | 50,647 | 39,136 | 50,693 | 38,301 | |||||||||||||||||||
| * Percentage variance not considered meaningful. | |||||||||||||||||||||||
| GREEN PLAINS INC. | |||||||
| CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS | |||||||
| (unaudited, in thousands) | |||||||
| Nine Months Ended September 30, | |||||||
| 2017 | 2016 | ||||||
| Cash flows from operating activities: | |||||||
| Net income | $ | 29,284 | $ | 6,053 | |||
| Noncash operating adjustments: | |||||||
| Depreciation and amortization | 80,105 | 56,132 | |||||
| Deferred income taxes | (88,565 | ) | (16,413 | ) | |||
| Other | 58,752 | 16,755 | |||||
| Net change in working capital | (201,792 | ) | 660 | ||||
| Net cash provided (used) by operating activities | (122,216 | ) | 63,187 | ||||
| Cash flows from investing activities: | |||||||
| Purchases of property and equipment | (36,475 | ) | (35,658 | ) | |||
| Acquisition of a business, net of cash acquired | (61,727 | ) | (252,488 | ) | |||
| Investments in unconsolidated subsidiaries | (12,033 | ) | (1,388 | ) | |||
| Net cash used by investing activities | (110,235 | ) | (289,534 | ) | |||
| Cash flows from financing activities: | |||||||
| Net proceeds - long-term debt | 64,050 | 296,422 | |||||
| Net proceeds - short-term borrowings | 166,283 | 1,843 | |||||
| Other | (40,505 | ) | (49,426 | ) | |||
| Net cash provided by financing activities | 189,828 | 248,839 | |||||
| Net change in cash and cash equivalents | (42,623 | ) | 22,492 | ||||
| Cash and cash equivalents, beginning of period | 304,211 | 384,867 | |||||
| Cash and cash equivalents, end of period | $ | 261,588 | $ | 407,359 | |||
| GREEN PLAINS INC. | ||||||||||||||
| RECONCILIATIONS TO NON-GAAP FINANCIAL MEASURES | ||||||||||||||
| (unaudited, in thousands) | ||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
| 2017 | 2016 | 2017 | 2016 | |||||||||||
| Net income | $ | 39,429 | $ | 12,884 | $ | 29,284 | $ | 6,053 | ||||||
| Interest expense | 31,889 | 11,819 | 69,815 | 33,117 | ||||||||||
| Income tax expense (benefit) | (48,775 | ) | 5,083 | (60,905 | ) | (4,339 | ) | |||||||
| Depreciation and amortization | 27,834 | 19,286 | 80,105 | 56,132 | ||||||||||
| EBITDA | $ | 50,377 | $ | 49,072 | $ | 118,299 | $ | 90,963 | ||||||
| GREEN PLAINS INC. | ||||||||||||||
| RECONCILIATIONS TO NON-GAAP ADJUSTED FINANCIAL MEASURES | ||||||||||||||
| (unaudited, in thousands except per share amounts) | ||||||||||||||
| Three Months Ended September 30, 2017 | Three Months Ended September 30, 2016, GAAP Basis as Reported | |||||||||||||
| GAAP Basis as Reported | Non-GAAP Adjustment Tax Credit & Interest Exp. | Non-GAAP Basis as Adjusted | ||||||||||||
| Basic EPS: | ||||||||||||||
| Net income (loss) attributable to Green Plains | $ | 34,394 | $ | (41,816 | ) | $ | (7,422 | ) | $ | 7,928 | ||||
| Weighted average shares outstanding - basic | 41,348 | - | 41,348 | 38,282 | ||||||||||
| Earnings (loss) per share attributable to Green Plains - basic | $ | 0.83 | $ | (1.01 | ) | $ | (0.18 | ) | $ | 0.21 | ||||
| Diluted EPS: | ||||||||||||||
| Net income (loss) attributable to Green Plains | $ | 34,394 | $ | (41,816 | ) | $ | (7,422 | ) | $ | 7,928 | ||||
| Interest and amortization on convertible debt, net of tax | ||||||||||||||
| 3.25% convertible notes | 840 | (840 | ) | - | - | |||||||||
| 4.125% convertible notes | 2,050 | (2,050 | ) | - | - | |||||||||
| Net income (loss) attributable to Green Plains - diluted | $ | 37,284 | $ | (44,706 | ) | $ | (7,422 | ) | $ | 7,928 | ||||
| Weighted average shares outstanding - basic | 41,348 | - | 41,348 | 38,282 | ||||||||||
| Effect of dilutive 3.25% convertible notes | 3,178 | (3,178 | ) | - | 760 | |||||||||
| Effect of dilutive 4.125% convertible notes | 6,071 | (6,071 | ) | - | - | |||||||||
| Effect of dilutive stock-based compensation awards | 50 | (50 | ) | - | 94 | |||||||||
| Weighted average shares outstanding - diluted | 50,647 | (9,299 | ) | 41,348 | 39,136 | |||||||||
| Earnings (loss) per share attributable to Green Plains - diluted | $ | 0.74 | $ | (0.92 | ) | $ | (0.18 | ) | $ | 0.20 | ||||
| Nine Months Ended September 30, 2017 | Nine Months Ended September 30, 2016 GAAP Basis as Reported | |||||||||||||
| GAAP Basis as Reported | Non-GAAP Adjustment Tax Credit & Interest Exp. | Non-GAAP Basis as Adjusted | ||||||||||||
| Basic EPS: | ||||||||||||||
| Net income (loss) attributable to Green Plains | $ | 14,431 | $ | (41,816 | ) | $ | (27,385 | ) | $ | (8,019 | ) | |||
| Weighted average shares outstanding - basic | 40,008 | - | 40,008 | 38,301 | ||||||||||
| Earnings (loss) per share attributable to Green Plains - basic | $ | 0.36 | $ | (1.04 | ) | $ | (0.68 | ) | $ | (0.21 | ) | |||
| Diluted EPS: | ||||||||||||||
| Net income (loss) attributable to Green Plains | $ | 14,431 | $ | (41,816 | ) | $ | (27,385 | ) | $ | (8,019 | ) | |||
| Interest and amortization on convertible debt, net of tax | ||||||||||||||
| 3.25% convertible notes | 3,582 | (3,582 | ) | - | - | |||||||||
| 4.125% convertible notes | 6,089 | (6,089 | ) | - | - | |||||||||
| Net income (loss) attributable to Green Plains - diluted | $ | 24,102 | $ | (51,487 | ) | $ | (27,385 | ) | $ | (8,019 | ) | |||
| Weighted average shares outstanding - basic | 40,008 | - | 40,008 | 38,301 | ||||||||||
| Effect of dilutive 3.25% convertible notes | 4,551 | (4,551 | ) | - | - | |||||||||
| Effect of dilutive 4.125% convertible notes | 6,071 | (6,071 | ) | - | - | |||||||||
| Effect of dilutive stock-based compensation awards | 63 | (63 | ) | - | - | |||||||||
| Weighted average shares outstanding - diluted | 50,693 | (10,685 | ) | 40,008 | 38,301 | |||||||||
| Earnings (loss) per share attributable to Green Plains - diluted | $ | 0.48 | $ | (1.16 | ) | $ | (0.68 | ) | $ | (0.21 | ) | |||
Contact: Jim Stark | Vice President, Investor & Media Relations | 402.884.8700 | jim.stark@gpreinc.com