EXHIBIT 99.1
 | FOR IMMEDIATE RELEASE |
Green Plains Reports First Quarter 2022 Financial Results
Results for the First Quarter of 2022 and Outlook for Remainder of 2022:
- First quarter EPS of ($1.16) per diluted share, compared to ($0.17) for the same period in the prior year
- Adjusted EBITDA of ($27.8) million compared to $15.4 million for the same period in the prior year
- Consolidated crush margin of ($0.07) per gallon for the first quarter
- Cash, cash equivalents, restricted cash and marketable securities of $629.2 million with $45.0 million available under a committed credit facility
- Plant modernization and upgrade programs completed, returning platform to full utilization rate capability
- 2022 outlook improving based on current forward ethanol crush margins
OMAHA, Neb., May 02, 2022 (GLOBE NEWSWIRE) -- Green Plains Inc. (NASDAQ:GPRE) today announced financial results for the first quarter of 2022. Net loss attributable to the company was $61.5 million, or ($1.16) per diluted share compared to a net loss of $6.5 million or ($0.17) per diluted share, for the same period in 2021. Revenues were $781.4 million for the first quarter of 2022 compared with $553.6 million for the same period last year.
“The consolidated crush margin in the first quarter was largely driven by industry overproduction and excess inventories of ethanol, rail shipping delays at our plants as well as forward sales of distillers grains in a rising market,” said Todd Becker, President and Chief Executive Officer. “Our quarter was also impacted by fixed cost absorption as we completed our plant modernization and upgrade programs, and replaced the York bins that collapsed in late November. I am happy to report that all plants can now operate at full run rates and we expect more normalized production going forward.”
“Looking forward to the remainder of 2022, we have seen a significant upward trend in margins across all products,” continued Becker. “Second quarter margins have improved over the past few months, and we have been able to participate in that upturn. As we were open to these higher margins, we have begun to take advantage of this opportunity. The third and fourth quarter margins have also turned positive. With a return to higher run rates, an improving fuel ethanol environment, strong renewable corn oil pricing and ongoing increases in protein economics, we believe we are on track to deliver stronger results going forward as we begin to see the benefit of our modernization and transformation programs across the platform. Low-carbon renewable corn oil continues to be in high demand from the rapidly expanding renewable diesel industry, supporting margin contributions from this valuable low-carbon feedstock.”
The company recently announced that it had achieved technological breakthroughs during the innovation trial at the Wood River biorefinery with both protein concentrations and renewable corn oil yields reaching record highs. The company is focused on building customer acceptance in higher-value markets, expanding and diversifying its customer base for proteins and ingredients and is working with a number of parties on product validation for 60% protein ingredients.
“The economic opportunity resulting from this breakthrough gives us confidence that we are on the right path to expand our margin opportunity over the long-term and we plan to transition our entire high-protein production capacity to 60% concentrations over time,” added Becker. “Our daily protein operations are running consistently at full capacity and rate, and our optimism has been emboldened by the recent successes witnessed at Wood River during our 60% protein trial. We anticipate completing our next three protein builds during the third and fourth quarters, allowing us to have approximately 50% of our platform maximizing our value through the production of innovative, sustainable ingredients once operating at rate.”
“Our financial position remains strong as we ended the first quarter with over $620 million in cash and marketable securities, and expect forward margins to add to that strength as we continue to make progress on our transformation,” concluded Becker. “Our transformation initiatives remain on track, with ongoing substantive customer and partner discussions across protein and ingredients, low-carbon renewable corn oil and clean sugar. We remain focused on execution and achieving additional milestones to deliver on our 2024-25 targets.”
Highlights and Recent Developments
- Achieved 60% protein concentration, as fed, over the course of a month-long innovation trial at Green Plains Wood River, reaching as high as 63.1%, using Fluid Quip Technologies’ MSC™ system combined with biological solutions exclusive to Green Plains
- Produced record-high yields, up to 1.4 pounds per bushel, of low-carbon renewable corn oil, a strategic feedstock to the fast-growing renewable diesel market, during the innovation trial, using Fluid Quip Technologies’ patented processes
- Published second Sustainability Report providing updates on progress toward emissions, governance and other ESG goals
- Announced Shenandoah, Iowa, biorefinery as the first location to deploy Fluid Quip Technologies’ Clean Sugar Technology™ at commercial scale
- Achieved significant commercial progress on diversifying protein sales by expanding the number of customers, and completing first protein ingredient sale to an aquaculture customer in Asia
- Announced Fluid Quip Technologies’ new patented DCO+™ technology upgrade which will be made widely available to the ethanol industry
Results of Operations
Green Plains sold 196.3 million gallons of ethanol during the first quarter of 2022, compared with 178.0 million gallons for the same period in 2021. The consolidated ethanol crush margin was ($14.2) million, or ($0.07) per gallon, for the first quarter of 2022, compared with $18.9 million, or $0.11 per gallon, for the same period in 2021. 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 $227.8 million for the three months ended March 31, 2022, compared with the same period in 2021, 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 $79.2 million and adjusted EBITDA decreased $43.2 million for the three months ended March 31, 2022, compared with the same period last year, primarily due to decreased margins on ethanol production. Interest expense decreased $22.9 million for the three months ended March 31, 2022, compared with the same period in 2021 due to the loss upon extinguishment of convertible notes of $22.1 million recorded during the prior year quarter. Income tax benefit was $1.2 million for the three months ended March 31, 2022, compared with income tax expense of $1.9 million for the same period in 2021.
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, 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 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 March 31, | ||||||||||||
| 2022 | 2021 | % Var. | ||||||||||
| Revenues: | ||||||||||||
| Ethanol production | $ | 637,553 | $ | 423,722 | 50.5 | % | ||||||
| Agribusiness and energy services | 148,712 | 133,944 | 11.0 | |||||||||
| Partnership | 19,100 | 20,406 | (6.4 | ) | ||||||||
| Intersegment eliminations | (23,930 | ) | (24,432 | ) | (2.1 | ) | ||||||
| $ | 781,435 | $ | 553,640 | 41.1 | % | |||||||
| Gross margin: | ||||||||||||
| Ethanol production | $ | (24,007 | ) | $ | 8,197 | * | % | |||||
| Agribusiness and energy services | 14,273 | 17,870 | (20.1 | ) | ||||||||
| Partnership | 19,100 | 20,406 | (6.4 | ) | ||||||||
| Intersegment eliminations | (440 | ) | (2,066 | ) | (78.7 | ) | ||||||
| $ | 8,926 | $ | 44,407 | (79.9 | ) | % | ||||||
| Depreciation and amortization: | ||||||||||||
| Ethanol production | $ | 18,432 | $ | 18,528 | (0.5 | ) | % | |||||
| Agribusiness and energy services | 464 | 607 | (23.6 | ) | ||||||||
| Partnership | 898 | 887 | 1.2 | |||||||||
| Corporate activities | 605 | 659 | (8.2 | ) | ||||||||
| $ | 20,399 | $ | 20,681 | (1.4 | ) | % | ||||||
| Operating income (loss): | ||||||||||||
| Ethanol production (1) | $ | (51,158 | ) | $ | (20,320 | ) | 151.8 | % | ||||
| Agribusiness and energy services | 10,408 | 13,346 | (22.0 | ) | ||||||||
| Partnership | 11,809 | 12,871 | (8.3 | ) | ||||||||
| Intersegment eliminations | (440 | ) | (2,066 | ) | (78.7 | ) | ||||||
| Corporate activities (2) | (18,521 | ) | 27,516 | * | ||||||||
| $ | (47,902 | ) | $ | 31,347 | * | % | ||||||
| Adjusted EBITDA: | ||||||||||||
| Ethanol production (1) | $ | (32,726 | ) | $ | (1,789 | ) | * | % | ||||
| Agribusiness and energy services | 10,723 | 13,951 | (23.1 | ) | ||||||||
| Partnership | 12,882 | 13,933 | (7.5 | ) | ||||||||
| Intersegment eliminations | (919 | ) | (2,066 | ) | (55.5 | ) | ||||||
| Corporate activities (2) | (17,780 | ) | 28,214 | * | ||||||||
| EBITDA | (27,820 | ) | 52,243 | * | ||||||||
| Gain on sale of assets, net | - | (36,893 | ) | * | ||||||||
| Proportional share of EBITDA adjustments to equity method investees | 45 | 44 | 2.3 | |||||||||
| Adjusted EBITDA | $ | (27,775 | ) | $ | 15,394 | * | % | |||||
| (1) Includes an inventory lower of cost or net realizable value adjustment of $13.2 million for the three months ended March 31, 2022. | ||||||||||||
| (2) Includes corporate expenses, offset by the gain on sale of assets of $36.9 million for the three months ended March 31, 2021. | ||||||||||||
| * Percentage variances not considered meaningful | ||||||||||||
| GREEN PLAINS INC. | ||||||||
| SELECTED OPERATING DATA | ||||||||
| (unaudited, in thousands) | ||||||||
| Three Months Ended March 31, | ||||||||
| 2022 | 2021 | % Var. | ||||||
| Ethanol production | ||||||||
| Ethanol sold (gallons) | 196,348 | 178,000 | 10.3 | % | ||||
| Distillers grains sold (equivalent dried tons) | 516 | 465 | 11.0 | |||||
| Corn oil sold (pounds) | 59,295 | 46,563 | 27.3 | |||||
| Corn consumed (bushels) | 68,304 | 62,505 | 9.3 | |||||
| Agribusiness and energy services (1) | ||||||||
| Domestic ethanol sold (gallons) | 181,725 | 178,820 | 1.6 | |||||
| Export ethanol sold (gallons) | 51,260 | 67,735 | (24.3 | ) | ||||
| 232,985 | 246,555 | (5.5 | ) | |||||
| Partnership | ||||||||
| Storage and throughput (gallons) | 197,247 | 178,976 | 10.2 | |||||
| (1) Includes gallons from the ethanol production segment | ||||||||
| GREEN PLAINS INC. | |||||||||||||||
| CONSOLIDATED CRUSH MARGIN | |||||||||||||||
| (unaudited, in thousands except per gallon amounts) | |||||||||||||||
| Three Months Ended March 31, | Three Months Ended March 31, | ||||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||
| ($ per gallon produced) | |||||||||||||||
| Ethanol production operating loss | $ | (51,158 | ) | $ | (20,320 | ) | $ | (0.26 | ) | $ | (0.11 | ) | |||
| Depreciation and amortization | 18,432 | 18,528 | 0.10 | 0.10 | |||||||||||
| Total adjusted ethanol production | (32,726 | ) | (1,792 | ) | (0.16 | ) | (0.01 | ) | |||||||
| Intercompany fees, net: | |||||||||||||||
| Storage and logistics (partnership) | 12,128 | 13,246 | 0.06 | 0.07 | |||||||||||
| Marketing and agribusiness fees (1) (agribusiness and energy services) | 6,384 | 7,423 | 0.03 | 0.05 | |||||||||||
| Consolidated ethanol crush margin | $ | (14,214 | ) | $ | 18,877 | $ | (0.07 | ) | $ | 0.11 | |||||
| (1) For the three months ended March 31, 2022 and 2021, includes certain nonrecurring decommissioning and nonethanol operations costs of $1.9 million and $3.5 million, respectively. | |||||||||||||||
Liquidity and Capital Resources
On March 31, 2022, Green Plains had $629.2 million in total cash, cash equivalents, restricted cash and marketable securities, and $45.0 million available under a committed revolving credit facility, which is subject to restrictions and other lending conditions. Total debt outstanding at March 31, 2022 was $903.8 million, including $310.2 million outstanding debt under working capital revolvers and other short-term borrowing arrangements and $58.4 million of non-recourse debt related to Green Plains Partners, net of debt issuance costs.
Conference Call Information
On May 2, 2022 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 first quarter 2022 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 4449669. 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) | |||||
| March 31, 2022 | December 31, 2021 | ||||
| (unaudited) | |||||
| ASSETS | |||||
| Current assets | |||||
| Cash and cash equivalents | $ | 509,195 | $ | 426,220 | |
| Restricted cash | 95,070 | 134,739 | |||
| Marketable securities | 24,942 | 124,859 | |||
| Accounts receivable, net | 142,041 | 119,961 | |||
| Income tax receivable | 646 | 911 | |||
| Inventories | 313,950 | 267,838 | |||
| Other current assets | 76,762 | 43,221 | |||
| Total current assets | 1,162,606 | 1,117,749 | |||
| Property and equipment, net | 940,912 | 893,517 | |||
| Operating lease right-of-use assets | 64,376 | 64,042 | |||
| Other assets | 84,607 | 84,447 | |||
| Total assets | $ | 2,252,501 | $ | 2,159,755 | |
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||
| Current liabilities | |||||
| Accounts payable | $ | 106,308 | $ | 146,063 | |
| Accrued and other liabilities | 46,979 | 56,980 | |||
| Derivative financial instruments | 64,620 | 43,244 | |||
| Current operating lease liabilities | 16,859 | 16,814 | |||
| Short-term notes payable and other borrowings | 310,190 | 173,418 | |||
| Current maturities of long-term debt | 35,701 | 35,285 | |||
| Total current liabilities | 580,657 | 471,804 | |||
| Long-term debt | 557,937 | 514,006 | |||
| Long-term operating lease liabilities | 50,233 | 49,795 | |||
| Other liabilities | 21,067 | 22,131 | |||
| Total liabilities | 1,209,894 | 1,057,736 | |||
| Stockholders' equity | |||||
| Total Green Plains stockholders' equity | 890,525 | 950,500 | |||
| Noncontrolling interests | 152,082 | 151,519 | |||
| Total stockholders' equity | 1,042,607 | 1,102,019 | |||
| Total liabilities and stockholders' equity | $ | 2,252,501 | $ | 2,159,755 | |
| GREEN PLAINS INC. | ||||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||
| (unaudited, in thousands except per share amounts) | ||||||||||||
| Three Months Ended March 31, | ||||||||||||
| 2022 | 2021 | % Var. | ||||||||||
| Revenues | ||||||||||||
| Product | $ | 776,690 | $ | 551,980 | 40.7 | % | ||||||
| Services | 4,745 | 1,660 | * | |||||||||
| Total revenues | 781,435 | 553,640 | 41.1 | |||||||||
| Costs and expenses | ||||||||||||
| Cost of goods sold (excluding depreciation and amortization expenses reflected below) | 772,509 | 509,233 | 51.7 | |||||||||
| Operations and maintenance | 5,566 | 5,754 | (3.3 | ) | ||||||||
| Selling, general and administrative | 30,863 | 23,518 | 31.2 | |||||||||
| Gain on sale of assets, net | - | (36,893 | ) | * | ||||||||
| Depreciation and amortization | 20,399 | 20,681 | (1.4 | ) | ||||||||
| Total costs and expenses | 829,337 | 522,293 | 58.8 | |||||||||
| Operating income (loss) | (47,902 | ) | 31,347 | * | ||||||||
| Other income (expense) | ||||||||||||
| Interest income | 71 | 30 | * | |||||||||
| Interest expense | (8,806 | ) | (31,679 | ) | (72.2 | ) | ||||||
| Other, net | 411 | 10 | * | |||||||||
| Total other expense | (8,324 | ) | (31,639 | ) | (73.7 | ) | ||||||
| Loss before income taxes and income (loss) from equity method investees | (56,226 | ) | (292 | ) | * | |||||||
| Income tax benefit (expense) | 1,153 | (1,862 | ) | * | ||||||||
| Income (loss) from equity method investees | (799 | ) | 175 | * | ||||||||
| Net loss | (55,872 | ) | (1,979 | ) | * | |||||||
| Net income attributable to noncontrolling interests | 5,602 | 4,566 | 22.7 | |||||||||
| Net loss attributable to Green Plains | $ | (61,474 | ) | $ | (6,545 | ) | * | % | ||||
| Earnings per share: | ||||||||||||
| Net loss attributable to Green Plains - basic and diluted | $ | (1.16 | ) | $ | (0.17 | ) | ||||||
| Weighted average shares outstanding: | ||||||||||||
| Basic and diluted | 52,887 | 37,695 | ||||||||||
| * Percentage variances not considered meaningful | ||||||||||||
| GREEN PLAINS INC. | |||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
| (unaudited, in thousands) | |||||||
| Three Months Ended March 31, | |||||||
| 2022 | 2021 | ||||||
| Cash flows from operating activities: | |||||||
| Net loss | $ | (55,872 | ) | $ | (1,979 | ) | |
| Noncash operating adjustments: | |||||||
| Depreciation and amortization | 20,399 | 20,681 | |||||
| Gain on sale of assets, net | - | (36,303 | ) | ||||
| Loss on extinguishment of debt | - | 22,100 | |||||
| Other | 2,859 | 5,257 | |||||
| Net change in working capital | (129,926 | ) | (46,737 | ) | |||
| Net cash used in operating activities | (162,540 | ) | (36,981 | ) | |||
| Cash flows from investing activities: | |||||||
| Purchases of property and equipment, net | (61,984 | ) | (31,524 | ) | |||
| Proceeds from the sale of assets | - | 73,846 | |||||
| Proceeds from the sale of marketable securities | 99,917 | - | |||||
| Net cash provided by investing activities | 37,933 | 42,322 | |||||
| Cash flows from financing activities: | |||||||
| Net proceeds - long-term debt | 43,823 | 219,165 | |||||
| Net proceeds (payments) - short-term borrowings | 135,472 | (4,680 | ) | ||||
| Proceeds from issuance of common stock | - | 191,134 | |||||
| Other | (11,382 | ) | (31,344 | ) | |||
| Net cash provided by financing activities | 167,913 | 374,275 | |||||
| Net change in cash, cash equivalents and restricted cash | 43,306 | 379,616 | |||||
| Cash, cash equivalents and restricted cash, beginning of period | 560,959 | 274,810 | |||||
| Cash, cash equivalents and restricted cash, end of period | $ | 604,265 | $ | 654,426 | |||
| Reconciliation of total cash, cash equivalents and restricted cash: | |||||||
| Cash and cash equivalents | $ | 509,195 | $ | 446,833 | |||
| Restricted cash | 95,070 | 207,593 | |||||
| Total cash, cash equivalents and restricted cash | $ | 604,265 | $ | 654,426 | |||
| GREEN PLAINS INC. | ||||||||
| RECONCILIATIONS TO NON-GAAP FINANCIAL MEASURES | ||||||||
| (unaudited, in thousands) | ||||||||
| Three Months Ended March 31, | ||||||||
| 2022 | 2021 | |||||||
| Net loss | $ | (55,872 | ) | $ | (1,979 | ) | ||
| Interest expense (1) | 8,806 | 31,679 | ||||||
| Income tax expense (benefit) | (1,153 | ) | 1,862 | |||||
| Depreciation and amortization (2) | 20,399 | 20,681 | ||||||
| EBITDA | (27,820 | ) | 52,243 | |||||
| Gain on sale of assets, net | - | (36,893 | ) | |||||
| Proportional share of EBITDA adjustments to equity method investees | 45 | 44 | ||||||
| Adjusted EBITDA | $ | (27,775 | ) | $ | 15,394 | |||
| (1) Interest expense for the three months ended March 31, 2021 includes a loss upon extinguishment of convertible notes of $22.1 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 |