GPRE reports second quarter financial results

By | July 15, 2010
News release posted July 29, 2010

OMAHA, Neb. -- Green Plains Renewable Energy, Inc. announced today its financial results for the second quarter of 2010. Net income attributable to Green Plains was $8.7 million, or 27 cents per diluted share, compared to net income of $600,000 or 3 cents per diluted share, for the same period of 2009. Revenues were $453.4 million for the second quarter of 2010 compared to $284.7 million for the same period of 2009.

"We produced solid results in the second quarter because of our focus on managing margins and maintaining a low cost operating platform," said Todd Becker, president and CEO. "Ethanol production increased again this quarter to over 129 million gallons as a result of our incremental investment in process enhancements. We believe our six plants are now capable of sustained production of over 500 million gallons per year, which has driven our operating cost per gallon lower. We are continually looking for ways to become more efficient and more effective throughout our operations," Becker added.

Revenues for the six-month period ended June 30, 2010 were $879.8 million compared to $505.7 million for the same period of 2009. Net income for the six-month period ended June 30, was $24.3 million or 83 cents per diluted share compared to a net loss of $8.7 million or 35 cents per share for the same period of 2009.

EBITDA, which is defined as earnings before interest, income taxes, noncontrolling interests, depreciation and amortization, was $26.3 million for the quarter ended June 30 compared with $11.2 million for the same period of 2009. Green Plains had available liquidity of $224.0 million, including $180.9 million total cash and equivalents, and $43.1 million available under committed loan agreements (subject to satisfaction of specified lending conditions and covenants) at June 30. EBITDA for the six-month period ended June 30, 2010 was $59.5 million, compared to $10.6 million for the same period of 2009.

"We continued to strengthen our balance sheet during the second quarter as we applied approximately $21 million of our cash flow towards debt reduction," added Becker. "As a result, we ended the quarter with less than $390 million in debt related to our ethanol plants while maintaining a strong liquidity position."

"While ethanol industry margins are currently weaker than the first half of the year, we expect to remain profitable for the last half of 2010. We believe expanded mandates for renewable fuels in 2011 combined with the profitability of ethanol blending should allow for a recovery in margins for the remainder of the year. A favorable decision from the EPA on E15, allowing higher blend rates, would certainly be another factor in a stronger margin environment going forward," said Becker.

"Our diversified ethanol platform has enabled us to produce five consecutive quarters of profitable results, including a great start to 2010 with almost $25 million of net income year to date," commented Becker. "We remain focused on growing our cash flows and diversifying our operations through a number of new initiatives. In particular, we believe our deployment of corn oil extraction technology at all of our plants will provide attractive returns for our shareholders."

Recent Business Highlights

On July 21, 2010, Green Plains announced plans to implement corn oil extraction technology at its ethanol plants and on July 20 said that BioProcess Algae is scheduled to begin construction of Phase II of its Grower Harvester, a trademarked technology, within the next two weeks.

Green Plains completed the integration of the five grain elevators acquired during the second quarter located in western Tennessee and began construction on a 1.1 million bushel grain storage expansion located in northwest Iowa. When construction is completed in the fall of 2010, grain storage capacity for Green Plains will total approximately 31.4 million bushels.

About Green Plains Renewable Energy Inc.

Green Plains Renewable Energy Inc. is North America's fourth largest ethanol producer, operating a total of six ethanol plants in Indiana, Iowa, Nebraska and Tennessee with annual expected operating capacity totaling approximately 500 million gallons. Green Plains also markets and distributes ethanol for four third-party ethanol producers with annual expected operating capacity totaling approximately 360 million gallons. Green Plains owns 51 percent of Blendstar, LLC, a biofuel terminal operator which operates nine blending or terminaling facilities with approximately 495 million gallons per year of total throughput capacity in seven states in the south central United States. Green Plains operates grain storage facilities and complementary agronomy and petroleum businesses in Iowa, southern Minnesota and western Tennessee.

SOURCE: GPRE