Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil Hydroworld Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries Green Plains Partners Reports Second Quarter 2023 Financial Results By: Green Plains Partners via Business Wire August 04, 2023 at 07:32 AM EDT Results for the Second Quarter of 2023 Net income of $9.3 million, or $0.39 per common unit Adjusted EBITDA of $12.7 million and distributable cash flow of $10.7 million Quarterly cash distribution of $0.455 per unit Distribution coverage ratio of 0.99x; LTM distribution coverage ratio of 1.01x Leverage ratio, net of cash; 0.82x Adjusted EBITDA Green Plains Partners LP (NASDAQ:GPP) today announced financial and operating results for the second quarter of 2023. Net income attributable to the partnership was $9.3 million, or $0.39 per common unit, for the second quarter of 2023, compared with net income of $10.5 million, or $0.44 per common unit, for the same period in 2022. The partnership also reported adjusted EBITDA of $12.7 million and distributable cash flow of $10.7 million for the second quarter of 2023, compared with adjusted EBITDA of $12.9 million and distributable cash flow of $11.3 million for the same period in 2022. Distribution coverage was 0.99x for the three months ended June 30, 2023. Second Quarter Highlights and Recent Developments On July 20, 2023, the board of directors of the partnership’s general partner declared a quarterly cash distribution of $0.455 per unit, or approximately $10.8 million, for the second quarter of 2023. The distribution is payable on August 11, 2023, to unitholders of record at the close of business on August 4, 2023. Results of Operations Consolidated revenues for the three months ended June 30, 2023 increased by $0.9 million compared with the same period for 2022 primarily due to an increase in transportation service fees charged as a result of upgrading our leased railcar fleet to comply with government regulations and higher railcar volumetric capacity. Operations and maintenance expenses increased by $0.9 million for the three months ended June 30, 2023, compared with the same period for 2022, primarily due to higher railcar lease expense as a result of upgrading our leased railcar fleet. General and administrative expenses increased $0.7 million for the three months ended June 30, 2023 compared with the same period for 2022 primarily due to transaction costs related to the proposal from our parent to acquire all outstanding units of the partnership. During the second quarter of 2023, Green Plains Inc.’s average production utilization rate was approximately 81.5% of capacity. Ethanol throughput was 196.1 million gallons, which was below the contracted minimum volume commitment. As a result, the Partnership charged Green Plains Trade $1.2 million related to the minimum volume commitment deficiency for the quarter, resulting in a credit to be applied against excess volumes in future periods. The cumulative balance of minimum volume deficiency credits available to Green Plains Trade as of June 30, 2023 was $1.7 million. If these credits are unused by Green Plains Trade, $0.5 million will expire on March 31, 2024 and $1.2 million will expire on June 30, 2024. These credits have been recognized in revenue by the partnership, and as such, future volumes throughput by Green Plains Trade in excess of the quarterly minimum volume commitment, up to the amount of these credits, will not be recognized in revenue in future periods. GREEN PLAINS PARTNERS LP SELECTED OPERATING DATA (unaudited, in million gallons) Three Months Ended June 30, Six Months Ended June 30, 2023 2022 % Var. 2023 2022 % Var. Product volumes (mmg) Storage and throughput services 196.1 232.5 (15.7 )% 404.2 429.7 (5.9 )% Terminal services Affiliate 30.1 27.7 8.7 56.4 55.0 2.5 Non-affiliate 25.9 23.7 9.3 50.5 45.2 11.7 56.0 51.4 8.9 106.9 100.2 6.7 Railcar capacity billed (daily avg.) 70.7 74.5 (5.1 ) 71.7 72.1 (0.6 ) Liquidity and Capital Resources Total liquidity as of June 30, 2023 consisted of $15.6 million in cash and cash equivalents. Total debt outstanding was $57.1 million, net of unamortized debt issuance costs of $0.4 million. Conference Call Information On August 4, 2023, Green Plains Partners LP and Green Plains Inc. will host a joint conference call at 9 a.m. Eastern time (8 a.m. Central time) to discuss second quarter of 2023 financial and operating results for each company. Domestic and international participants can access the conference call by dialing 888.210.4215 and 646.960.0269, respectively, and referencing conference ID 5027523. Participants are advised to call at least 10 minutes prior to the start time. Alternatively, the conference call will be accessible on Green Plains Partners’ website here. Non-GAAP Financial Measures Adjusted EBITDA and distributable cash flow are supplemental financial measures used to assess the partnership’s financial performance. Management believes adjusted EBITDA and distributable cash flow provide investors useful information in assessing the partnership’s financial condition and results of operations. Adjusted EBITDA is defined as earnings before interest, depreciation and amortization, plus adjustments for transaction costs related to acquisitions or financing transactions, unit-based compensation expense, net gains or losses on asset sales, and the partnership’s proportional share of EBITDA adjustments of our equity method investee. Distributable cash flow is defined as adjusted EBITDA less interest paid or payable, net of interest received, income taxes paid or payable, maintenance capital expenditures and the partnership’s proportionate share of distributable cash flow adjustments of our equity method investee. References to LTM refer to results from the immediately preceding twelve-month period. Adjusted EBITDA and distributable cash flow are not presented in accordance with U.S. Generally Accepted Accounting Principles (GAAP) and therefore should not be considered in isolation or as alternatives to net income or any other measure of financial performance presented in accordance with GAAP to analyze the partnership’s results. 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. 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 48.8% limited partner interest and a 2.0% general partner interest in Green Plains Partners LP. For more information, visit www.gpreinc.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 are discussed in Green Plains Partners’ 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 Partners assumes no obligation to update any such forward-looking statements, except as required by law. Consolidated Financial Results GREEN PLAINS PARTNERS LP CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) June 30, 2023 December 31, 2022 (unaudited) ASSETS Current assets Cash and cash equivalents $ 15,550 $ 20,166 Accounts receivable, including from affiliates 15,200 12,997 Other current assets 1,520 1,410 Total current assets 32,270 34,573 Property and equipment, net 25,984 26,137 Operating lease right-of-use assets 55,189 47,002 Other assets 14,076 13,710 Total assets $ 127,519 $ 121,422 LIABILITIES AND PARTNERS' EQUITY (DEFICIT) Current liabilities Accounts payable, including to affiliates $ 4,043 $ 4,225 Operating lease current liabilities 17,226 14,734 Other current liabilities 7,498 6,710 Total current liabilities 28,767 25,669 Long-term debt 57,101 58,559 Asset retirement obligations 3,534 2,862 Operating lease long-term liabilities 39,583 33,582 Total liabilities 128,985 120,672 Partners' equity (deficit) (1,466 ) 750 Total liabilities and partners' equity (deficit) $ 127,519 $ 121,422 GREEN PLAINS PARTNERS LP CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited, in thousands except per unit amounts) Three Months Ended June 30, Six Months Ended June 30, 2023 2022 % Var. 2023 2022 % Var. Revenues Affiliate $ 19,460 $ 18,742 3.8 % $ 39,116 $ 36,837 6.2 % Non-affiliate 1,063 912 16.6 2,182 1,917 13.8 Total revenues 20,523 19,654 4.4 41,298 38,754 6.6 Operating expenses Operations and maintenance (excluding depreciation and amortization reflected below) 7,070 6,160 14.8 14,323 11,725 22.2 General and administrative 1,625 925 75.7 2,855 2,110 35.3 Depreciation and amortization 828 823 0.6 1,644 1,721 (4.5 ) Total operating expenses 9,523 7,908 20.4 18,822 15,556 21.0 Operating income 11,000 11,746 (6.4 ) 22,476 23,198 (3.1 ) Interest income 238 — 100.0 363 — 100.0 Interest expense (1,910 ) (1,384 ) 38.0 (3,807 ) (2,623 ) 45.1 Income before income taxes and income from equity method investee 9,328 10,362 (10.0 ) 19,032 20,575 (7.5 ) Income tax expense (293 ) (39 ) 651.3 (194 ) (77 ) 151.9 Income from equity method investee 311 196 58.7 420 371 13.2 Net income $ 9,346 $ 10,519 (11.2 )% $ 19,258 $ 20,869 (7.7 )% Net income attributable to partners' ownership interests General partner $ 188 $ 210 (10.5 )% $ 386 $ 417 (7.4 )% Limited partners - common unitholders 9,158 10,309 (11.2 ) 18,872 20,452 (7.7 ) Earnings per limited partner unit (basic and diluted) Common units $ 0.39 $ 0.44 (11.4 )% $ 0.81 $ 0.88 (8.0 )% Weighted average limited partner units outstanding (basic and diluted) Common units 23,227 23,208 23,227 23,208 Supplemental Revenues Data Storage and throughput services $ 11,565 $ 11,570 — % $ 23,129 $ 23,128 — % Railcar transportation services 6,369 5,119 24.4 12,678 9,771 29.8 Terminal services 2,173 2,036 6.7 4,250 4,120 3.2 Trucking and other 416 929 (55.2 ) 1,241 1,735 (28.5 ) Total revenues $ 20,523 $ 19,654 4.4 % $ 41,298 $ 38,754 6.6 % GREEN PLAINS PARTNERS LP CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (unaudited, in thousands) Six Months Ended June 30, 2023 2022 Cash flows from operating activities Net income $ 19,258 $ 20,869 Noncash operating adjustments Depreciation and amortization 1,644 1,721 Other (399 ) (53 ) Net change in working capital (1,888 ) (1,343 ) Net cash provided by operating activities 18,615 21,194 Cash flows from investing activities Purchases of property and equipment (129 ) (305 ) Net cash used in investing activities (129 ) (305 ) Cash flows from financing activities Payments of distributions (21,586 ) (20,976 ) Principal payments on long-term debt (1,500 ) (1,031 ) Other (16 ) — Net cash used in financing activities (23,102 ) (22,007 ) Net change in cash and cash equivalents (4,616 ) (1,118 ) Cash and cash equivalents, beginning of period 20,166 17,645 Cash and cash equivalents, end of period $ 15,550 $ 16,527 GREEN PLAINS PARTNERS LP RECONCILIATIONS TO NON-GAAP FINANCIAL MEASURES (unaudited, in thousands except ratios) Three Months Ended June 30, Six Months Ended June 30, LTM Ended June 30, 2023 2022 2023 2022 2023 Net income 9,346 10,519 19,258 20,869 39,039 Interest expense, net 1,672 1,384 3,444 2,623 6,745 Income tax expense 293 39 194 77 198 Depreciation and amortization 828 823 1,644 1,721 4,016 Transaction costs 455 — 455 — 455 Unit-based compensation expense 60 60 119 119 240 Proportional share of EBITDA adjustments of equity method investee (1) 45 45 90 90 180 Adjusted EBITDA 12,699 12,870 25,204 25,499 50,873 Interest paid or payable, net of interest received (1,672 ) (1,384 ) (3,444 ) (2,623 ) (6,745 ) Income taxes paid or payable (293 ) (39 ) (194 ) (77 ) (198 ) Maintenance capital expenditures (4 ) (126 ) (84 ) (258 ) (410 ) Distributable cash flow (2) $ 10,730 $ 11,321 $ 21,482 $ 22,541 $ 43,520 Distributions declared (3) $ 10,802 $ 10,666 $ 21,595 $ 21,213 $ 43,190 Coverage ratio 0.99x 1.06x 0.99x 1.06x 1.01x Long-term debt $ 57,101 Less: Cash and cash equivalents 15,550 Long-term debt, net of cash and cash equivalents $ 41,551 Adjusted EBITDA $ 50,873 Leverage ratio 0.82x (1) Represents our proportional share of depreciation and amortization of our equity method investee. (2) Distributable cash flow does not include adjustments for the principal payment on the term loan of $1.5 million for the three and six months ended June 30, 2023. Distributable cash flow does not include adjustments for the principal payments on the term loan of $1.0 million for the six months ended June 30, 2022. (3) Represents distributions declared for the applicable period and paid in the subsequent quarter. View source version on businesswire.com: https://www.businesswire.com/news/home/20230804529911/en/Contacts Green Plains 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 Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. By accessing this page, you agree to the following Privacy Policy and Terms and Conditions.
Green Plains Partners Reports Second Quarter 2023 Financial Results By: Green Plains Partners via Business Wire August 04, 2023 at 07:32 AM EDT Results for the Second Quarter of 2023 Net income of $9.3 million, or $0.39 per common unit Adjusted EBITDA of $12.7 million and distributable cash flow of $10.7 million Quarterly cash distribution of $0.455 per unit Distribution coverage ratio of 0.99x; LTM distribution coverage ratio of 1.01x Leverage ratio, net of cash; 0.82x Adjusted EBITDA Green Plains Partners LP (NASDAQ:GPP) today announced financial and operating results for the second quarter of 2023. Net income attributable to the partnership was $9.3 million, or $0.39 per common unit, for the second quarter of 2023, compared with net income of $10.5 million, or $0.44 per common unit, for the same period in 2022. The partnership also reported adjusted EBITDA of $12.7 million and distributable cash flow of $10.7 million for the second quarter of 2023, compared with adjusted EBITDA of $12.9 million and distributable cash flow of $11.3 million for the same period in 2022. Distribution coverage was 0.99x for the three months ended June 30, 2023. Second Quarter Highlights and Recent Developments On July 20, 2023, the board of directors of the partnership’s general partner declared a quarterly cash distribution of $0.455 per unit, or approximately $10.8 million, for the second quarter of 2023. The distribution is payable on August 11, 2023, to unitholders of record at the close of business on August 4, 2023. Results of Operations Consolidated revenues for the three months ended June 30, 2023 increased by $0.9 million compared with the same period for 2022 primarily due to an increase in transportation service fees charged as a result of upgrading our leased railcar fleet to comply with government regulations and higher railcar volumetric capacity. Operations and maintenance expenses increased by $0.9 million for the three months ended June 30, 2023, compared with the same period for 2022, primarily due to higher railcar lease expense as a result of upgrading our leased railcar fleet. General and administrative expenses increased $0.7 million for the three months ended June 30, 2023 compared with the same period for 2022 primarily due to transaction costs related to the proposal from our parent to acquire all outstanding units of the partnership. During the second quarter of 2023, Green Plains Inc.’s average production utilization rate was approximately 81.5% of capacity. Ethanol throughput was 196.1 million gallons, which was below the contracted minimum volume commitment. As a result, the Partnership charged Green Plains Trade $1.2 million related to the minimum volume commitment deficiency for the quarter, resulting in a credit to be applied against excess volumes in future periods. The cumulative balance of minimum volume deficiency credits available to Green Plains Trade as of June 30, 2023 was $1.7 million. If these credits are unused by Green Plains Trade, $0.5 million will expire on March 31, 2024 and $1.2 million will expire on June 30, 2024. These credits have been recognized in revenue by the partnership, and as such, future volumes throughput by Green Plains Trade in excess of the quarterly minimum volume commitment, up to the amount of these credits, will not be recognized in revenue in future periods. GREEN PLAINS PARTNERS LP SELECTED OPERATING DATA (unaudited, in million gallons) Three Months Ended June 30, Six Months Ended June 30, 2023 2022 % Var. 2023 2022 % Var. Product volumes (mmg) Storage and throughput services 196.1 232.5 (15.7 )% 404.2 429.7 (5.9 )% Terminal services Affiliate 30.1 27.7 8.7 56.4 55.0 2.5 Non-affiliate 25.9 23.7 9.3 50.5 45.2 11.7 56.0 51.4 8.9 106.9 100.2 6.7 Railcar capacity billed (daily avg.) 70.7 74.5 (5.1 ) 71.7 72.1 (0.6 ) Liquidity and Capital Resources Total liquidity as of June 30, 2023 consisted of $15.6 million in cash and cash equivalents. Total debt outstanding was $57.1 million, net of unamortized debt issuance costs of $0.4 million. Conference Call Information On August 4, 2023, Green Plains Partners LP and Green Plains Inc. will host a joint conference call at 9 a.m. Eastern time (8 a.m. Central time) to discuss second quarter of 2023 financial and operating results for each company. Domestic and international participants can access the conference call by dialing 888.210.4215 and 646.960.0269, respectively, and referencing conference ID 5027523. Participants are advised to call at least 10 minutes prior to the start time. Alternatively, the conference call will be accessible on Green Plains Partners’ website here. Non-GAAP Financial Measures Adjusted EBITDA and distributable cash flow are supplemental financial measures used to assess the partnership’s financial performance. Management believes adjusted EBITDA and distributable cash flow provide investors useful information in assessing the partnership’s financial condition and results of operations. Adjusted EBITDA is defined as earnings before interest, depreciation and amortization, plus adjustments for transaction costs related to acquisitions or financing transactions, unit-based compensation expense, net gains or losses on asset sales, and the partnership’s proportional share of EBITDA adjustments of our equity method investee. Distributable cash flow is defined as adjusted EBITDA less interest paid or payable, net of interest received, income taxes paid or payable, maintenance capital expenditures and the partnership’s proportionate share of distributable cash flow adjustments of our equity method investee. References to LTM refer to results from the immediately preceding twelve-month period. Adjusted EBITDA and distributable cash flow are not presented in accordance with U.S. Generally Accepted Accounting Principles (GAAP) and therefore should not be considered in isolation or as alternatives to net income or any other measure of financial performance presented in accordance with GAAP to analyze the partnership’s results. 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. 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 48.8% limited partner interest and a 2.0% general partner interest in Green Plains Partners LP. For more information, visit www.gpreinc.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 are discussed in Green Plains Partners’ 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 Partners assumes no obligation to update any such forward-looking statements, except as required by law. Consolidated Financial Results GREEN PLAINS PARTNERS LP CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) June 30, 2023 December 31, 2022 (unaudited) ASSETS Current assets Cash and cash equivalents $ 15,550 $ 20,166 Accounts receivable, including from affiliates 15,200 12,997 Other current assets 1,520 1,410 Total current assets 32,270 34,573 Property and equipment, net 25,984 26,137 Operating lease right-of-use assets 55,189 47,002 Other assets 14,076 13,710 Total assets $ 127,519 $ 121,422 LIABILITIES AND PARTNERS' EQUITY (DEFICIT) Current liabilities Accounts payable, including to affiliates $ 4,043 $ 4,225 Operating lease current liabilities 17,226 14,734 Other current liabilities 7,498 6,710 Total current liabilities 28,767 25,669 Long-term debt 57,101 58,559 Asset retirement obligations 3,534 2,862 Operating lease long-term liabilities 39,583 33,582 Total liabilities 128,985 120,672 Partners' equity (deficit) (1,466 ) 750 Total liabilities and partners' equity (deficit) $ 127,519 $ 121,422 GREEN PLAINS PARTNERS LP CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited, in thousands except per unit amounts) Three Months Ended June 30, Six Months Ended June 30, 2023 2022 % Var. 2023 2022 % Var. Revenues Affiliate $ 19,460 $ 18,742 3.8 % $ 39,116 $ 36,837 6.2 % Non-affiliate 1,063 912 16.6 2,182 1,917 13.8 Total revenues 20,523 19,654 4.4 41,298 38,754 6.6 Operating expenses Operations and maintenance (excluding depreciation and amortization reflected below) 7,070 6,160 14.8 14,323 11,725 22.2 General and administrative 1,625 925 75.7 2,855 2,110 35.3 Depreciation and amortization 828 823 0.6 1,644 1,721 (4.5 ) Total operating expenses 9,523 7,908 20.4 18,822 15,556 21.0 Operating income 11,000 11,746 (6.4 ) 22,476 23,198 (3.1 ) Interest income 238 — 100.0 363 — 100.0 Interest expense (1,910 ) (1,384 ) 38.0 (3,807 ) (2,623 ) 45.1 Income before income taxes and income from equity method investee 9,328 10,362 (10.0 ) 19,032 20,575 (7.5 ) Income tax expense (293 ) (39 ) 651.3 (194 ) (77 ) 151.9 Income from equity method investee 311 196 58.7 420 371 13.2 Net income $ 9,346 $ 10,519 (11.2 )% $ 19,258 $ 20,869 (7.7 )% Net income attributable to partners' ownership interests General partner $ 188 $ 210 (10.5 )% $ 386 $ 417 (7.4 )% Limited partners - common unitholders 9,158 10,309 (11.2 ) 18,872 20,452 (7.7 ) Earnings per limited partner unit (basic and diluted) Common units $ 0.39 $ 0.44 (11.4 )% $ 0.81 $ 0.88 (8.0 )% Weighted average limited partner units outstanding (basic and diluted) Common units 23,227 23,208 23,227 23,208 Supplemental Revenues Data Storage and throughput services $ 11,565 $ 11,570 — % $ 23,129 $ 23,128 — % Railcar transportation services 6,369 5,119 24.4 12,678 9,771 29.8 Terminal services 2,173 2,036 6.7 4,250 4,120 3.2 Trucking and other 416 929 (55.2 ) 1,241 1,735 (28.5 ) Total revenues $ 20,523 $ 19,654 4.4 % $ 41,298 $ 38,754 6.6 % GREEN PLAINS PARTNERS LP CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (unaudited, in thousands) Six Months Ended June 30, 2023 2022 Cash flows from operating activities Net income $ 19,258 $ 20,869 Noncash operating adjustments Depreciation and amortization 1,644 1,721 Other (399 ) (53 ) Net change in working capital (1,888 ) (1,343 ) Net cash provided by operating activities 18,615 21,194 Cash flows from investing activities Purchases of property and equipment (129 ) (305 ) Net cash used in investing activities (129 ) (305 ) Cash flows from financing activities Payments of distributions (21,586 ) (20,976 ) Principal payments on long-term debt (1,500 ) (1,031 ) Other (16 ) — Net cash used in financing activities (23,102 ) (22,007 ) Net change in cash and cash equivalents (4,616 ) (1,118 ) Cash and cash equivalents, beginning of period 20,166 17,645 Cash and cash equivalents, end of period $ 15,550 $ 16,527 GREEN PLAINS PARTNERS LP RECONCILIATIONS TO NON-GAAP FINANCIAL MEASURES (unaudited, in thousands except ratios) Three Months Ended June 30, Six Months Ended June 30, LTM Ended June 30, 2023 2022 2023 2022 2023 Net income 9,346 10,519 19,258 20,869 39,039 Interest expense, net 1,672 1,384 3,444 2,623 6,745 Income tax expense 293 39 194 77 198 Depreciation and amortization 828 823 1,644 1,721 4,016 Transaction costs 455 — 455 — 455 Unit-based compensation expense 60 60 119 119 240 Proportional share of EBITDA adjustments of equity method investee (1) 45 45 90 90 180 Adjusted EBITDA 12,699 12,870 25,204 25,499 50,873 Interest paid or payable, net of interest received (1,672 ) (1,384 ) (3,444 ) (2,623 ) (6,745 ) Income taxes paid or payable (293 ) (39 ) (194 ) (77 ) (198 ) Maintenance capital expenditures (4 ) (126 ) (84 ) (258 ) (410 ) Distributable cash flow (2) $ 10,730 $ 11,321 $ 21,482 $ 22,541 $ 43,520 Distributions declared (3) $ 10,802 $ 10,666 $ 21,595 $ 21,213 $ 43,190 Coverage ratio 0.99x 1.06x 0.99x 1.06x 1.01x Long-term debt $ 57,101 Less: Cash and cash equivalents 15,550 Long-term debt, net of cash and cash equivalents $ 41,551 Adjusted EBITDA $ 50,873 Leverage ratio 0.82x (1) Represents our proportional share of depreciation and amortization of our equity method investee. (2) Distributable cash flow does not include adjustments for the principal payment on the term loan of $1.5 million for the three and six months ended June 30, 2023. Distributable cash flow does not include adjustments for the principal payments on the term loan of $1.0 million for the six months ended June 30, 2022. (3) Represents distributions declared for the applicable period and paid in the subsequent quarter. View source version on businesswire.com: https://www.businesswire.com/news/home/20230804529911/en/Contacts Green Plains 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
Results for the Second Quarter of 2023 Net income of $9.3 million, or $0.39 per common unit Adjusted EBITDA of $12.7 million and distributable cash flow of $10.7 million Quarterly cash distribution of $0.455 per unit Distribution coverage ratio of 0.99x; LTM distribution coverage ratio of 1.01x Leverage ratio, net of cash; 0.82x Adjusted EBITDA
Green Plains Partners LP (NASDAQ:GPP) today announced financial and operating results for the second quarter of 2023. Net income attributable to the partnership was $9.3 million, or $0.39 per common unit, for the second quarter of 2023, compared with net income of $10.5 million, or $0.44 per common unit, for the same period in 2022. The partnership also reported adjusted EBITDA of $12.7 million and distributable cash flow of $10.7 million for the second quarter of 2023, compared with adjusted EBITDA of $12.9 million and distributable cash flow of $11.3 million for the same period in 2022. Distribution coverage was 0.99x for the three months ended June 30, 2023. Second Quarter Highlights and Recent Developments On July 20, 2023, the board of directors of the partnership’s general partner declared a quarterly cash distribution of $0.455 per unit, or approximately $10.8 million, for the second quarter of 2023. The distribution is payable on August 11, 2023, to unitholders of record at the close of business on August 4, 2023. Results of Operations Consolidated revenues for the three months ended June 30, 2023 increased by $0.9 million compared with the same period for 2022 primarily due to an increase in transportation service fees charged as a result of upgrading our leased railcar fleet to comply with government regulations and higher railcar volumetric capacity. Operations and maintenance expenses increased by $0.9 million for the three months ended June 30, 2023, compared with the same period for 2022, primarily due to higher railcar lease expense as a result of upgrading our leased railcar fleet. General and administrative expenses increased $0.7 million for the three months ended June 30, 2023 compared with the same period for 2022 primarily due to transaction costs related to the proposal from our parent to acquire all outstanding units of the partnership. During the second quarter of 2023, Green Plains Inc.’s average production utilization rate was approximately 81.5% of capacity. Ethanol throughput was 196.1 million gallons, which was below the contracted minimum volume commitment. As a result, the Partnership charged Green Plains Trade $1.2 million related to the minimum volume commitment deficiency for the quarter, resulting in a credit to be applied against excess volumes in future periods. The cumulative balance of minimum volume deficiency credits available to Green Plains Trade as of June 30, 2023 was $1.7 million. If these credits are unused by Green Plains Trade, $0.5 million will expire on March 31, 2024 and $1.2 million will expire on June 30, 2024. These credits have been recognized in revenue by the partnership, and as such, future volumes throughput by Green Plains Trade in excess of the quarterly minimum volume commitment, up to the amount of these credits, will not be recognized in revenue in future periods. GREEN PLAINS PARTNERS LP SELECTED OPERATING DATA (unaudited, in million gallons) Three Months Ended June 30, Six Months Ended June 30, 2023 2022 % Var. 2023 2022 % Var. Product volumes (mmg) Storage and throughput services 196.1 232.5 (15.7 )% 404.2 429.7 (5.9 )% Terminal services Affiliate 30.1 27.7 8.7 56.4 55.0 2.5 Non-affiliate 25.9 23.7 9.3 50.5 45.2 11.7 56.0 51.4 8.9 106.9 100.2 6.7 Railcar capacity billed (daily avg.) 70.7 74.5 (5.1 ) 71.7 72.1 (0.6 ) Liquidity and Capital Resources Total liquidity as of June 30, 2023 consisted of $15.6 million in cash and cash equivalents. Total debt outstanding was $57.1 million, net of unamortized debt issuance costs of $0.4 million. Conference Call Information On August 4, 2023, Green Plains Partners LP and Green Plains Inc. will host a joint conference call at 9 a.m. Eastern time (8 a.m. Central time) to discuss second quarter of 2023 financial and operating results for each company. Domestic and international participants can access the conference call by dialing 888.210.4215 and 646.960.0269, respectively, and referencing conference ID 5027523. Participants are advised to call at least 10 minutes prior to the start time. Alternatively, the conference call will be accessible on Green Plains Partners’ website here. Non-GAAP Financial Measures Adjusted EBITDA and distributable cash flow are supplemental financial measures used to assess the partnership’s financial performance. Management believes adjusted EBITDA and distributable cash flow provide investors useful information in assessing the partnership’s financial condition and results of operations. Adjusted EBITDA is defined as earnings before interest, depreciation and amortization, plus adjustments for transaction costs related to acquisitions or financing transactions, unit-based compensation expense, net gains or losses on asset sales, and the partnership’s proportional share of EBITDA adjustments of our equity method investee. Distributable cash flow is defined as adjusted EBITDA less interest paid or payable, net of interest received, income taxes paid or payable, maintenance capital expenditures and the partnership’s proportionate share of distributable cash flow adjustments of our equity method investee. References to LTM refer to results from the immediately preceding twelve-month period. Adjusted EBITDA and distributable cash flow are not presented in accordance with U.S. Generally Accepted Accounting Principles (GAAP) and therefore should not be considered in isolation or as alternatives to net income or any other measure of financial performance presented in accordance with GAAP to analyze the partnership’s results. 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. 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 48.8% limited partner interest and a 2.0% general partner interest in Green Plains Partners LP. For more information, visit www.gpreinc.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 are discussed in Green Plains Partners’ 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 Partners assumes no obligation to update any such forward-looking statements, except as required by law. Consolidated Financial Results GREEN PLAINS PARTNERS LP CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) June 30, 2023 December 31, 2022 (unaudited) ASSETS Current assets Cash and cash equivalents $ 15,550 $ 20,166 Accounts receivable, including from affiliates 15,200 12,997 Other current assets 1,520 1,410 Total current assets 32,270 34,573 Property and equipment, net 25,984 26,137 Operating lease right-of-use assets 55,189 47,002 Other assets 14,076 13,710 Total assets $ 127,519 $ 121,422 LIABILITIES AND PARTNERS' EQUITY (DEFICIT) Current liabilities Accounts payable, including to affiliates $ 4,043 $ 4,225 Operating lease current liabilities 17,226 14,734 Other current liabilities 7,498 6,710 Total current liabilities 28,767 25,669 Long-term debt 57,101 58,559 Asset retirement obligations 3,534 2,862 Operating lease long-term liabilities 39,583 33,582 Total liabilities 128,985 120,672 Partners' equity (deficit) (1,466 ) 750 Total liabilities and partners' equity (deficit) $ 127,519 $ 121,422 GREEN PLAINS PARTNERS LP CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited, in thousands except per unit amounts) Three Months Ended June 30, Six Months Ended June 30, 2023 2022 % Var. 2023 2022 % Var. Revenues Affiliate $ 19,460 $ 18,742 3.8 % $ 39,116 $ 36,837 6.2 % Non-affiliate 1,063 912 16.6 2,182 1,917 13.8 Total revenues 20,523 19,654 4.4 41,298 38,754 6.6 Operating expenses Operations and maintenance (excluding depreciation and amortization reflected below) 7,070 6,160 14.8 14,323 11,725 22.2 General and administrative 1,625 925 75.7 2,855 2,110 35.3 Depreciation and amortization 828 823 0.6 1,644 1,721 (4.5 ) Total operating expenses 9,523 7,908 20.4 18,822 15,556 21.0 Operating income 11,000 11,746 (6.4 ) 22,476 23,198 (3.1 ) Interest income 238 — 100.0 363 — 100.0 Interest expense (1,910 ) (1,384 ) 38.0 (3,807 ) (2,623 ) 45.1 Income before income taxes and income from equity method investee 9,328 10,362 (10.0 ) 19,032 20,575 (7.5 ) Income tax expense (293 ) (39 ) 651.3 (194 ) (77 ) 151.9 Income from equity method investee 311 196 58.7 420 371 13.2 Net income $ 9,346 $ 10,519 (11.2 )% $ 19,258 $ 20,869 (7.7 )% Net income attributable to partners' ownership interests General partner $ 188 $ 210 (10.5 )% $ 386 $ 417 (7.4 )% Limited partners - common unitholders 9,158 10,309 (11.2 ) 18,872 20,452 (7.7 ) Earnings per limited partner unit (basic and diluted) Common units $ 0.39 $ 0.44 (11.4 )% $ 0.81 $ 0.88 (8.0 )% Weighted average limited partner units outstanding (basic and diluted) Common units 23,227 23,208 23,227 23,208 Supplemental Revenues Data Storage and throughput services $ 11,565 $ 11,570 — % $ 23,129 $ 23,128 — % Railcar transportation services 6,369 5,119 24.4 12,678 9,771 29.8 Terminal services 2,173 2,036 6.7 4,250 4,120 3.2 Trucking and other 416 929 (55.2 ) 1,241 1,735 (28.5 ) Total revenues $ 20,523 $ 19,654 4.4 % $ 41,298 $ 38,754 6.6 % GREEN PLAINS PARTNERS LP CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (unaudited, in thousands) Six Months Ended June 30, 2023 2022 Cash flows from operating activities Net income $ 19,258 $ 20,869 Noncash operating adjustments Depreciation and amortization 1,644 1,721 Other (399 ) (53 ) Net change in working capital (1,888 ) (1,343 ) Net cash provided by operating activities 18,615 21,194 Cash flows from investing activities Purchases of property and equipment (129 ) (305 ) Net cash used in investing activities (129 ) (305 ) Cash flows from financing activities Payments of distributions (21,586 ) (20,976 ) Principal payments on long-term debt (1,500 ) (1,031 ) Other (16 ) — Net cash used in financing activities (23,102 ) (22,007 ) Net change in cash and cash equivalents (4,616 ) (1,118 ) Cash and cash equivalents, beginning of period 20,166 17,645 Cash and cash equivalents, end of period $ 15,550 $ 16,527 GREEN PLAINS PARTNERS LP RECONCILIATIONS TO NON-GAAP FINANCIAL MEASURES (unaudited, in thousands except ratios) Three Months Ended June 30, Six Months Ended June 30, LTM Ended June 30, 2023 2022 2023 2022 2023 Net income 9,346 10,519 19,258 20,869 39,039 Interest expense, net 1,672 1,384 3,444 2,623 6,745 Income tax expense 293 39 194 77 198 Depreciation and amortization 828 823 1,644 1,721 4,016 Transaction costs 455 — 455 — 455 Unit-based compensation expense 60 60 119 119 240 Proportional share of EBITDA adjustments of equity method investee (1) 45 45 90 90 180 Adjusted EBITDA 12,699 12,870 25,204 25,499 50,873 Interest paid or payable, net of interest received (1,672 ) (1,384 ) (3,444 ) (2,623 ) (6,745 ) Income taxes paid or payable (293 ) (39 ) (194 ) (77 ) (198 ) Maintenance capital expenditures (4 ) (126 ) (84 ) (258 ) (410 ) Distributable cash flow (2) $ 10,730 $ 11,321 $ 21,482 $ 22,541 $ 43,520 Distributions declared (3) $ 10,802 $ 10,666 $ 21,595 $ 21,213 $ 43,190 Coverage ratio 0.99x 1.06x 0.99x 1.06x 1.01x Long-term debt $ 57,101 Less: Cash and cash equivalents 15,550 Long-term debt, net of cash and cash equivalents $ 41,551 Adjusted EBITDA $ 50,873 Leverage ratio 0.82x (1) Represents our proportional share of depreciation and amortization of our equity method investee. (2) Distributable cash flow does not include adjustments for the principal payment on the term loan of $1.5 million for the three and six months ended June 30, 2023. Distributable cash flow does not include adjustments for the principal payments on the term loan of $1.0 million for the six months ended June 30, 2022. (3) Represents distributions declared for the applicable period and paid in the subsequent quarter. View source version on businesswire.com: https://www.businesswire.com/news/home/20230804529911/en/
Green Plains 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