Lincolnway reports positive Q1 FY2017 results, improved yields
Lincolnway Energy LLC, a 62 MMgy ethanol producer in Nevada, Iowa, announced net income of $2.4 million for the first quarter of its fiscal year ending Dec. 31. That compares with a net loss of $1.4 million for the same period in the prior year. Earnings before interest taxes and depreciation was $3.4 million, compared to $300,000 for Q1 of the previous year.
"We are very happy with the progress of our business in the last year,” Eric Hakmiller, Lincolnway's president and CEO stated in the earnings release. “We have focused on improving the technology in the facility and we are beginning to see the results. This is the third quarter in a row of solid production and along with a relatively steady margin environment; this has led to steadily improving profitability."
In the January newsletter posted to the company website, Hakmiller outlined recent improvements. “We are producing over 180,000 gallons of ethanol per operating day in Q1 FY17 (a 9 percent improvement in the last three years) and have moved yields up to the high 2.80s,” he wrote in his end of the year recap. He described the company’s technology improvements, which have been trademarked PureStream by the company, as “a concept were we use physical separation techniques (all commercial today, but often from other industries) to break the bushel into its component parts.”
In 2013, plant installed SMT for uniform grinding. The next target was to free up more corn oil and Lincolnway is now extracted nearly twice the amount of corn oil than three years ago, he reported. Last year, Hakmiller wrote, they brought in operational talent and made further changes. “By adding more grinding and washing we would be able to hyper concentrate the starches and sugars in a way that would increase production and yields.”