Results for the Third Quarter of 2022
- Net income of $10.2 million, or $0.43 per common unit
- Adjusted EBITDA of $13.0 million and distributable cash flow of $11.3 million
- Quarterly cash distribution increased to $0.455 per unit
- Distribution coverage ratio of 1.05x; LTM distribution coverage ratio of 1.06x
- Leverage ratio, net of cash; 0.84x Adjusted EBITDA
OMAHA, Neb., Nov. 03, 2022 (GLOBE NEWSWIRE) -- Green Plains Partners LP (NASDAQ:GPP) today announced financial and operating results for the third quarter of 2022. Net income attributable to the partnership was $10.2 million, or $0.43 per common unit, for the third quarter of 2022, compared with net income of $9.4 million, or $0.40 per common unit, for the same period in 2021.
The partnership also reported adjusted EBITDA of $13.0 million and distributable cash flow of $11.3 million for the third quarter of 2022, compared with adjusted EBITDA of $13.5 million and distributable cash flow of $11.5 million for the same period in 2021. Distribution coverage was 1.05x for the three months ended September 30, 2022.
“We were pleased to increase the quarterly distribution for the fifth consecutive quarter,” said Todd Becker, President and Chief Executive Officer. “Strong liquidity and achieving higher year over year throughput rates resulted in stable earnings and cash flow at the partnership and higher cash distributions for our unitholders.”
Third Quarter Highlights and Recent Developments
- On October 20, 2022, the board of directors of the partnership’s general partner increased the quarterly cash distribution to $0.455 per unit, or approximately $10.8 million, for the third quarter of 2022. The distribution is payable on November 14, 2022, to unitholders of record at the close of business on November 4, 2022.
Results of Operations
Consolidated revenues for the three months ended September 30, 2022 increased by $0.8 million compared with the same period for 2021. Operations and maintenance expenses increased by $1.1 million for the three months ended September 30, 2022, compared with the same period for 2021.
During the third quarter of 2022, Green Plains Inc.’s average production utilization rate was approximately 90.9% of capacity. Ethanol throughput was 219.7 million gallons, which exceeded the contracted minimum volume commitment. As a result, a prior period deficiency credit of $0.1 million was utilized toward the excess volume. Prior year credits of $1.8 million expired unused, leaving a cumulative balance of minimum volume deficiency credits available to Green Plains Trade as of September 30, 2022 of $1.9 million. If these credits are unused by Green Plains Trade, $0.8 million will expire on December 31, 2022, and $1.1 million will expire on March 31, 2023. 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 prior to expiration.
GREEN PLAINS PARTNERS LP
SELECTED OPERATING DATA
(unaudited, in million gallons)
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||
| 2022 | 2021 | % Var. | 2022 | 2021 | % Var. | ||||||||
| Product volumes (mmg) | |||||||||||||
| Storage and throughput services | 219.7 | 182.2 | 20.6 | % | 649.4 | 553.1 | 17.4 | % | |||||
| Terminal services: | |||||||||||||
| Affiliate | 24.2 | 22.1 | 9.5 | 79.2 | 62.1 | 27.5 | |||||||
| Non-affiliate | 23.7 | 26.2 | (9.5 | ) | 68.9 | 77.7 | (11.3 | ) | |||||
| 47.9 | 48.3 | (0.8 | ) | 148.1 | 139.8 | 5.9 | |||||||
| Railcar capacity billed (daily avg.) | 74.7 | 68.6 | 8.9 | 73.0 | 70.3 | 3.8 | |||||||
Liquidity and Capital Resources
Total liquidity as of September 30, 2022 consisted of $15.7 million in cash and cash equivalents. Total debt outstanding was $58.5 million, net of debt issuance costs of $0.5 million.
Conference Call Information
On November 3, 2022, 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 third quarter 2022 financial and operating results for each company. To participate in the live call, please pre-register here. All registrants will receive dial-in information and a unique PIN. Alternatively, the conference call will be accessible on Green Plains Partners’ website at http://ir.greenplainspartners.com.
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 expense, income tax expense, 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, 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)
| September 30, 2022 | December 31, 2021 | ||||
| (unaudited) | |||||
| ASSETS | |||||
| Current assets | |||||
| Cash and cash equivalents | $ | 15,742 | $ | 17,645 | |
| Accounts receivable, including from affiliates | 16,925 | 14,555 | |||
| Other current assets | 1,219 | 845 | |||
| Total current assets | 33,886 | 33,045 | |||
| Property and equipment, net | 26,579 | 28,773 | |||
| Operating lease right-of-use assets | 36,898 | 38,863 | |||
| Other assets | 14,561 | 13,791 | |||
| Total assets | $ | 111,924 | $ | 114,472 | |
| LIABILITIES AND PARTNERS' EQUITY | |||||
| Current liabilities | |||||
| Accounts payable, including to affiliates | $ | 4,753 | $ | 4,954 | |
| Operating lease current liabilities | 12,007 | 12,108 | |||
| Other current liabilities | 6,055 | 5,420 | |||
| Total current liabilities | 22,815 | 22,482 | |||
| Long-term debt | 58,531 | 59,467 | |||
| Asset retirement obligations | 2,279 | 2,658 | |||
| Operating lease long-term liabilities | 26,431 | 27,562 | |||
| Total liabilities | 110,056 | 112,169 | |||
| Partners' equity | 1,868 | 2,303 | |||
| Total liabilities and partners' equity | $ | 111,924 | $ | 114,472 | |
GREEN PLAINS PARTNERS LP
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited, in thousands except per unit amounts)
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||
| 2022 | 2021 | % Var. | 2022 | 2021 | % Var. | ||||||||||||||||
| Revenues | |||||||||||||||||||||
| Affiliate | $ | 19,030 | $ | 18,221 | 4.4 | % | $ | 55,867 | $ | 56,061 | (0.3 | )% | |||||||||
| Non-affiliate | 1,036 | 1,030 | 0.6 | 2,953 | 3,297 | (10.4 | ) | ||||||||||||||
| Total revenues | 20,066 | 19,251 | 4.2 | 58,820 | 59,358 | (0.9 | ) | ||||||||||||||
| Operating expenses | |||||||||||||||||||||
| Operations and maintenance (excluding depreciation and amortization reflected below) | 6,287 | 5,161 | 21.8 | 18,012 | 17,153 | 5.0 | |||||||||||||||
| General and administrative | 949 | 892 | 6.4 | 3,059 | 3,152 | (3.0 | ) | ||||||||||||||
| Depreciation and amortization | 1,194 | 1,089 | 9.6 | 2,915 | 2,771 | 5.2 | |||||||||||||||
| Total operating expenses | 8,430 | 7,142 | 18.0 | 23,986 | 23,076 | 3.9 | |||||||||||||||
| Operating income | 11,636 | 12,109 | (3.9 | ) | 34,834 | 36,282 | (4.0 | ) | |||||||||||||
| Interest expense | (1,516 | ) | (2,781 | ) | (45.5 | ) | (4,139 | ) | (6,120 | ) | (32.4 | ) | |||||||||
| Income before income taxes and income from equity method investee | 10,120 | 9,328 | 8.5 | 30,695 | 30,162 | 1.8 | |||||||||||||||
| Income tax expense | (37 | ) | (77 | ) | (51.9 | ) | (114 | ) | (229 | ) | (50.2 | ) | |||||||||
| Income from equity method investee | 83 | 174 | (52.3 | ) | 454 | 517 | (12.2 | ) | |||||||||||||
| Net income | $ | 10,166 | $ | 9,425 | 7.9 | % | $ | 31,035 | $ | 30,450 | 1.9 | % | |||||||||
| Net income attributable to partners' ownership interests: | |||||||||||||||||||||
| General partner | $ | 204 | $ | 188 | 8.5 | % | $ | 621 | $ | 609 | 2.0 | % | |||||||||
| Limited partners - common unitholders | 9,962 | 9,237 | 7.8 | 30,414 | 29,841 | 1.9 | |||||||||||||||
| Earnings per limited partner unit (basic and diluted): | |||||||||||||||||||||
| Common units | $ | 0.43 | $ | 0.40 | 7.5 | % | $ | 1.31 | $ | 1.29 | 1.6 | % | |||||||||
| Weighted average limited partner units outstanding (basic and diluted): | |||||||||||||||||||||
| Common units | 23,228 | 23,208 | 23,215 | 23,177 | |||||||||||||||||
| Supplemental Revenues Data: | |||||||||||||||||||||
| Storage and throughput services | $ | 11,565 | $ | 11,564 | — | % | $ | 34,693 | $ | 35,389 | (2.0 | )% | |||||||||
| Railcar transportation services | 5,615 | 4,688 | 19.8 | 15,386 | 14,525 | 5.9 | |||||||||||||||
| Terminal services | 1,864 | 1,998 | (6.7 | ) | 5,984 | 6,258 | (4.4 | ) | |||||||||||||
| Trucking and other | 1,022 | 1,001 | 2.1 | 2,757 | 3,186 | (13.5 | ) | ||||||||||||||
| Total revenues | $ | 20,066 | $ | 19,251 | 4.2 | % | $ | 58,820 | $ | 59,358 | (0.9 | )% | |||||||||
GREEN PLAINS PARTNERS LP
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(unaudited, in thousands)
| Nine Months Ended September 30, | |||||||
| 2022 | 2021 | ||||||
| Cash flows from operating activities: | |||||||
| Net income | $ | 31,035 | $ | 30,450 | |||
| Noncash operating adjustments | |||||||
| Depreciation and amortization | 2,915 | 2,771 | |||||
| Other | (355 | ) | 1,772 | ||||
| Net change in working capital | (2,385 | ) | (1,317 | ) | |||
| Net cash provided by operating activities | 31,210 | 33,676 | |||||
| Cash flows from investing activities: | |||||||
| Purchases of property and equipment | (432 | ) | (494 | ) | |||
| Disposition of assets | — | 27,500 | |||||
| Net cash provided by (used in) investing activities | (432 | ) | 27,006 | ||||
| Cash flows from financing activities: | |||||||
| Payments of distributions | (31,650 | ) | (8,528 | ) | |||
| Net payments on long-term debt | (1,031 | ) | (40,000 | ) | |||
| Payments of loan fees | — | (436 | ) | ||||
| Other | — | 5 | |||||
| Net cash used in financing activities | (32,681 | ) | (48,959 | ) | |||
| Net change in cash and cash equivalents | (1,903 | ) | 11,723 | ||||
| Cash and cash equivalents, beginning of period | 17,645 | 2,478 | |||||
| Cash and cash equivalents, end of period | $ | 15,742 | $ | 14,201 | |||
GREEN PLAINS PARTNERS LP
RECONCILIATIONS TO NON-GAAP FINANCIAL MEASURES
(unaudited, in thousands except ratios)
| Three Months Ended September 30, | Nine Months Ended September 30, | LTM Ended Sept. 30, | |||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | 2022 | |||||||||||||||
| Net income | $ | 10,166 | $ | 9,425 | $ | 31,035 | $ | 30,450 | $ | 40,947 | |||||||||
| Interest expense | 1,516 | 2,781 | 4,139 | 6,120 | 5,411 | ||||||||||||||
| Income tax expense | 37 | 77 | 114 | 229 | 73 | ||||||||||||||
| Depreciation and amortization | 1,194 | 1,089 | 2,915 | 2,771 | 3,881 | ||||||||||||||
| Transaction costs | — | — | — | 5 | — | ||||||||||||||
| Unit-based compensation expense | 61 | 60 | 180 | 219 | 240 | ||||||||||||||
| Proportional share of EBITDA adjustments of equity method investee (1) | 45 | 45 | 135 | 139 | 180 | ||||||||||||||
| Adjusted EBITDA | 13,019 | 13,477 | 38,518 | 39,933 | 50,732 | ||||||||||||||
| Interest paid or payable | (1,516 | ) | (1,781 | ) | (4,139 | ) | (5,120 | ) | (5,411 | ) | |||||||||
| Income taxes paid or payable | (37 | ) | (77 | ) | (114 | ) | (229 | ) | (73 | ) | |||||||||
| Maintenance capital expenditures | (124 | ) | (137 | ) | (382 | ) | (139 | ) | (382 | ) | |||||||||
| Distributable cash flow (2) | $ | 11,342 | $ | 11,482 | $ | 33,883 | $ | 34,445 | $ | 44,866 | |||||||||
| Distributions declared (3) | $ | 10,793 | $ | 10,310 | $ | 32,015 | $ | 15,996 | $ | 42,443 | |||||||||
| Coverage ratio | 1.05x | 1.11x | 1.06x | 2.15x | 1.06x | ||||||||||||||
| Long-term debt | $ | 58,531 | |||||||||||||||||
| Less: Cash and cash equivalents | 15,742 | ||||||||||||||||||
| Long-term debt, net of cash and cash equivalents | $ | 42,789 | |||||||||||||||||
| Adjusted EBITDA | $ | 50,732 | |||||||||||||||||
| Leverage ratio | 0.84x | ||||||||||||||||||
(1) Represents the partnership’s proportional share of depreciation and amortization of its equity method investee.
(2) Distributable cash flow does not include adjustments for the principal payments on the term loan of $1.0 million for the nine months ended and the last twelve months ended September 30, 2022. Distributable cash flow does not include adjustments for the principal payments on the term loan of $3.2 million for the three months ended September 30, 2021, and $50.0 million for the nine months ended September 30, 2021.
(3) Represents distributions declared for the applicable period and paid in the subsequent quarter for the three months ended September 30, 2022 and 2021, and distributions declared for each quarter of the applicable period for the nine months ended September 30, 2022 and 2021.
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
