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Green Plains Reports First Quarter 2016 Financial Results

  • Net loss attributable to the company of $(24.1) million, or $(0.63) per diluted share, for the first quarter of 2016
  • Forward production margins, including corn oil values, have improved since the end of the first quarter
  • Marketing and distribution segment loss expected to be recovered over the remainder of the year

Green Plains Inc. GPRE, +0.94% today announced financial results for the first quarter of 2016. Net loss attributable to the company was $(24.1) million, or $(0.63) per diluted share, for the first quarter of 2016 compared with net loss of $(3.3) million, or $(0.09) per diluted share, for the same period in 2015. Revenues were $749.2 million for the first quarter of 2016 compared with $738.4 million for the same period last year.

"The margin environment remained weak, providing little opportunity to generate a profit in the first quarter," stated Todd Becker, president and chief executive officer. "We focused on maintaining our strong liquidity position to remain well-positioned, not only during this cyclical downturn, but also for future growth opportunities within our supply chain. Our marketing and distribution segment reported an operating loss for the quarter which was primarily related to the valuation of inventories held for forward business that is fully hedged. We anticipate the profits on these positions will be realized over the remainder of this year and operating income for the marketing and distribution segment will remain in the $25 to $30 million range for fiscal 2016."

During the first quarter, Green Plains produced 247.0 million gallons of ethanol compared with 232.5 million gallons for the same period in 2015. The consolidated ethanol crush margin was $0.5 million, or $0.00 per gallon, for the first quarter of 2016 compared with $14.9 million, or $0.06 per gallon, for the same period in 2015. 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.

"The forward ethanol margin environment has improved since the beginning of the second quarter and we have hedged a portion of our future production," continued Becker. "We believe the ongoing growth in global and domestic ethanol blending will continue to drive better market fundamentals for the industry and are optimistic the margin environment will improve during the balance of 2016."

Earnings before interest, income taxes, depreciation and amortization (EBITDA) for the first quarter of 2016 was $(5.8) million compared with $19.2 million for the same period last year. As of March 31, 2016, Green Plains had $400.7 million in cash and cash equivalents, and $146.6 million available under revolving credit agreements subject to restrictions and other lending conditions. Total debt outstanding was $776.6 million, including $277.4 million outstanding under working capital revolvers and other short-term borrowing arrangements for the marketing and distribution, and agribusiness segments at March 31, 2016.

First Quarter 2016 Conference Call Information
On May 3, 2016, Green Plains Inc. and Green Plains Partners LP will host a joint conference call at 10 a.m. Eastern time (9 a.m. Central time) to discuss first quarter 2016 financial and operating results for each company. Domestic and international participants can access the conference call by dialing 888.504.7963 and 719.457.1512, respectively. Participants are advised to call at least 10 minutes prior to the start time. Alternatively, the conference call and presentation can be accessed on Green Plains' website at http://investor.gpreinc.com/events.cfm.

About Green Plains Inc.
Green Plains Inc. GPRE, +0.94% is a diversified commodity-processing business with operations related to ethanol, distillers grains and corn oil production; grain handling and storage; a cattle feedlot; and commodity marketing and distribution services. The company processes 12 million tons of corn annually, producing over 1.2 billion gallons of ethanol, approximately 3.5 million tons of livestock feed and 275 million pounds of industrial grade corn oil 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 GPP, -0.14% 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 contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Forward-looking statements include words such as "anticipates," "believes," "estimates," "expects," "goal," "intends," "plans," "potential," "predicts," "should," "will," and other words with similar meanings in connection with future operating or financial performance. Such statements are based on management's current expectations, which are subject to various factors, risks and uncertainties that may cause actual results, outcomes, timing and performance to differ materially from those expressed or implied. Green Plains may experience significant fluctuations in future operating results due to a number of economic conditions, including competition in the industries in which Green Plains operates; commodity market...


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