Second Quarter Highlights
- Quarterly cash distribution increased 0.5 cent to $0.41 per unit
- Net income of $14.0 million, or $0.43 per common unit
- Adjusted EBITDA of $16.0 million and distributable cash flow of $15.4 million, distribution coverage ratio of 1.16x
OMAHA, Neb., Aug. 01, 2016 (GLOBE NEWSWIRE) -- Green Plains Partners LP (NASDAQ:GPP) today announced financial and operating
results for the second quarter of 2016. Second quarter 2016 net income was $14.0 million, or $0.43 per common unit. The partnership
reported adjusted EBITDA of $16.0 million and distributable cash flow of $15.4 million, indicating a 1.16x coverage ratio of the
second quarter distribution.
“The partnership benefited from record production volumes from Green Plains Inc., driven by the stronger margin structure from
improved supply and demand fundamentals,” said Todd Becker, president and chief executive officer of Green Plains Partners. “We
expect to continue on a trajectory of growth from both incremental production volumes and the acquisition of assets that can
ultimately be dropped down to the partnership.”
During the second quarter of 2016, Green Plains Inc. entered into an asset purchase agreement to acquire two ethanol plants with
combined annual production capacity of 180 million gallons for approximately $200 million in cash, plus certain inventory
adjustments and liabilities. The agreement constitutes a stalking horse bid, which is subject to bidding procedures and receipt of
higher or otherwise better bids at the proposed auction for the plants, and approval by the U.S. Bankruptcy Court. Should Green
Plains submit the winning bid, the company expects the transaction to close during the third quarter of 2016 and to offer the
plants’ transportation and storage assets to the partnership. In addition, Green Plains Inc. and Jefferson Gulf Coast Energy
Partners announced the formation of a 50/50 joint venture to construct and operate an intermodal export and import fuels terminal
at Jefferson’s existing Beaumont, Texas terminal. Green Plains will offer its interest in the joint venture to the partnership
once commercial development is complete.
Results of Operations
Revenues generated from the partnership’s storage and throughput agreement and rail transportation services agreement were $13.9
million and $7.9 million, respectively, for the three months ended June 30, 2016. There are no comparable revenues for the same
quarter last year. Operations and maintenance expenses increased $1.4 million for the three months ended June 30, 2016, compared
with the same period for 2015, primarily due to higher railcar lease expense and wages, partially offset by lower terminal
throughput unloading fees. General and administrative expenses increased $0.6 million for the second quarter of 2016 due to
administrative costs incurred as a publicly traded entity.
Second quarter revenues for 2016 increased $1.7 million over revenues for the first quarter primarily due to the incremental
throughput volumes from the partnership’s sponsor. Product volumes from storage and transportation services increased 11% over the
first quarter to 274.3 million gallons in the second quarter of 2016. Operations and maintenance expenses decreased $0.1 million
from the previous quarter due to lower railcar lease expense, partially offset by higher terminal throughput unloading fees,
insurance and repairs and maintenance. General and administrative expenses also decreased $0.2 million due to lower administrative
costs incurred during the second quarter of 2016 compared with the previous quarter.
| |
| GREEN PLAINS PARTNERS LP |
| KEY OPERATING DATA |
| (unaudited) |
| |
|
|
|
|
|
|
|
| |
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
| |
2016 |
|
2015 |
|
2016 |
|
2015 |
| Product volumes (mmg) |
|
|
|
|
|
|
|
| Storage and throughput services(1) |
274.3 |
|
- |
|
521.2 |
|
- |
| |
|
|
|
|
|
|
|
| Terminal services: |
|
|
|
|
|
|
|
| Affiliate |
30.2 |
|
27.2 |
|
58.9 |
|
56.8 |
| Non-affiliate |
47.4 |
|
56.9 |
|
91.6 |
|
107.8 |
| |
77.6 |
|
84.1 |
|
150.5 |
|
164.6 |
| |
|
|
|
|
|
|
|
| Railcar capacity billed (daily average)(1) |
77.2 |
|
- |
|
75.0 |
|
- |
| |
|
|
|
|
|
|
|
| (1) Volumetric data for periods before July 1, 2015, is not considered
meaningful. |
| |
Liquidity and Capital Resources
Total liquidity as of June 30, 2016, was $55.8 million, including $2.8 million in cash and cash equivalents, and $53.0 million
available under the partnership’s revolving credit facility. The partnership incurred maintenance capital expenditures of $0.1
million primarily for terminal upgrades during the second quarter of 2016.
Quarterly Distribution
On July 20, 2016, the board of directors of the partnership’s general partner declared a quarterly cash distribution of $0.41 per
unit on all outstanding common and subordinated units, or $1.64 per unit on an annualized basis, for the second quarter of 2016.
The 0.5 cent increase over the previous quarterly distribution of $0.4050 is the third consecutive increase since the partnership’s
initial public offering (IPO). The distribution will be paid on Aug. 12, 2016, to unitholders of record at the close of business on
Aug. 5, 2016.
Conference Call Information
On Aug. 2, 2016, 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 second quarter 2016 financial and operating results for each company. Domestic and international
participants can access the conference call by dialing 888.427.9376 and 719.457.2689, respectively. Participants are advised to
call at least 10 minutes prior to the start time. Alternatively, the conference call and presentation can be accessed 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 to compare the
partnership’s performance with other publicly traded partnerships. 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, minimum volume commitment deficiency payments, unit-based compensation expense and net gains or losses on asset
sales. Distributable cash flow is defined as adjusted EBITDA less interest paid or payable, income taxes paid or payable and
maintenance capital expenditures. Adjusted EBITDA and distributable cash flow are not presented in accordance with 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.
Comparability Related to Prior Periods
When transferring assets between entities under common control, the entity receiving the net assets initially recognizes the
carrying amounts of the assets and liabilities at the date of transfer and prior period financial statements of the transferee are
recast for all periods the transferred operations were part of the parent’s consolidated financial statements, in accordance with
GAAP.
For the six months ended June 30, 2016, the financial results include those related to the assets acquired from the
partnership’s sponsor subsequent the IPO in transfers between entities under common control. For the six months ended June 30,
2015, the financial results reflect only those of the MLP predecessor, which includes the results of BlendStar, the partnership’s
predecessor for accounting purposes, and the assets, liabilities and results of operations of certain ethanol storage and railcar
assets contributed by Green Plains in a transfer between entities under common control in connection with the IPO.
On July 1, 2015, the partnership received ethanol storage and leased railcar assets from its sponsor in a transfer between
entities under common control in connection with the IPO. The transferred assets and liabilities are recognized at the sponsor’s
historical cost and reflected retroactively in the consolidated financial statements. Expenses related to the ethanol storage and
railcar assets, such as depreciation, amortization and railcar lease expenses, are also reflected retroactively in the consolidated
financial statements. There are no revenues related to the operation of the contributed ethanol storage and railcar assets for
periods prior to July 1, 2015, when the related commercial agreements with Green Plains Trade became effective.
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 tanks, 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 diversified commodity-processing business with operations related to ethanol, distillers
grains and corn oil production; grain handling and storage; a cattle feedlot; and commodity marketing and distribution services.
The company processes 12 million tons of corn annually, producing over 1.2 billion gallons of ethanol, approximately 3.5 million
tons of livestock feed and 275 million pounds of industrial grade corn oil at full capacity. Green Plains owns a 62.5% limited
partner interest and a 2.0% general partner interest in Green Plains Partners. For more information about Green Plains, visit
www.gpreinc.com.
Forward-Looking Statements
This news release may include forward-looking statements within the meaning of the federal securities laws. Statements that do not
relate strictly to historical or current facts are forward-looking. These statements contain words such as “possible,” “if,” “will”
and “expect” and involve risks and uncertainties including, among others, that Green Plains Partners’ business plans may change as
circumstances warrant because of general market conditions or other factors. Such statements are based on current expectations,
forecasts and projections, including but not limited to, anticipated financial and operating results, plans, objectives,
expectations and intentions that are not historical in nature. Specifically, the partnership may experience significant
fluctuations in future operating results due to a number of economic conditions, such as changes in general economic, market or
business conditions; foreign imports of ethanol; fluctuations in demand for ethanol and other fuels; risks of accidents or other
unscheduled shutdowns affecting the partnership’s assets, including mechanical breakdown of equipment or infrastructure; risks
associated with changes to federal policy or regulation; ability to comply with changing government usage mandates and regulations
affecting the ethanol industry; price availability and acceptance of alternative fuels and alternative fuel vehicles, and laws
mandating such fuels or vehicles; changes in operational costs at the partnership’s facilities and for its railcars; failure to
realize the benefits projected for capital projects; competition; inability to successfully implement growth strategies; the supply
of corn and other feedstocks; unusual or severe weather conditions and natural disasters; ability and willingness of parties with
whom the partnership has material relationships, including Green Plains Trade, to fulfill their obligations; labor and material
shortages; changes in the availability of unsecured credit and changes affecting the credit markets in general. When considering
these forward-looking statements, investors should keep in mind these risk factors and other cautionary statements in Green Plains
Partners’ SEC filings. Forward-looking statements may not be accurate indicators of future performance or results and should not be
considered a guarantee of future performance or results. Green Plains Partners undertakes no obligation to update forward-looking
statements to reflect events or circumstances occurring after this news release. Investors are cautioned not to place undue
reliance on these forward-looking statements, which speak only as of the date of this news release.
Consolidated Financial Results
| |
| GREEN PLAINS PARTNERS LP |
| CONDENSED CONSOLIDATED BALANCE
SHEETS |
| (in thousands) |
| |
|
|
|
|
|
|
|
| |
June 30,
2016
|
|
|
December 31,
2015(1)
|
|
| |
(unaudited) |
|
|
| ASSETS |
|
|
|
| Current assets |
|
|
|
| Cash and cash equivalents |
$ |
2,764 |
|
|
$ |
16,385 |
|
| Accounts receivable, including from affiliates |
|
14,070 |
|
|
|
14,913 |
|
| Other current assets |
|
1,733 |
|
|
|
2,621 |
|
| Total current assets |
|
18,567 |
|
|
|
33,919 |
|
| Property and equipment, net |
|
40,412 |
|
|
|
41,862 |
|
| Other assets |
|
19,796 |
|
|
|
19,996 |
|
| Total assets |
$ |
78,775 |
|
|
$ |
95,777 |
|
| |
|
|
|
|
|
|
|
| LIABILITIES AND PARTNERS' CAPITAL |
|
|
|
|
|
|
|
| Current liabilities |
|
|
|
|
|
|
|
| Accounts payable, including to affiliates |
$ |
5,351 |
|
|
$ |
6,128 |
|
| Other current liabilities |
|
6,199 |
|
|
|
7,475 |
|
| Total current liabilities |
|
11,550 |
|
|
|
13,603 |
|
| Long-term debt |
|
54,903 |
|
|
|
7,879 |
|
| Other liabilities |
|
2,832 |
|
|
|
2,485 |
|
| Total liabilities |
|
69,285 |
|
|
|
23,967 |
|
| Partners' capital |
|
9,490 |
|
|
|
71,810 |
|
| Total liabilities and partners' capital |
$ |
78,775 |
|
|
$ |
95,777 |
|
| |
|
|
|
| (1) Recast to include the historical balances of assets acquired in a
transfer between entities under common control. |
| |
|
|
|
| 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,
|
| |
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
| Revenues |
|
|
|
|
|
|
|
| Affiliate |
$ |
23,538 |
|
|
$ |
1,338 |
|
|
$ |
45,306 |
|
|
$ |
2,649 |
|
| Non-affiliate |
|
1,955 |
|
|
|
2,107 |
|
|
|
3,975 |
|
|
|
4,192 |
|
| Total revenues |
|
25,493 |
|
|
|
3,445 |
|
|
|
49,281 |
|
|
|
6,841 |
|
| Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operations and maintenance |
|
8,504 |
|
|
|
7,102 |
|
|
|
17,149 |
|
|
|
14,135 |
|
| General and administrative |
|
1,051 |
|
|
|
403 |
|
|
|
2,259 |
|
|
|
599 |
|
| Depreciation and amortization |
|
1,488 |
|
|
|
1,400 |
|
|
|
2,705 |
|
|
|
2,721 |
|
| Total operating expenses |
|
11,043 |
|
|
|
8,905 |
|
|
|
22,113 |
|
|
|
17,455 |
|
| Operating income (loss) |
|
14,450 |
|
|
|
(5,460 |
) |
|
|
27,168 |
|
|
|
(10,614 |
) |
| Other income (expense) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest income |
|
21 |
|
|
|
20 |
|
|
|
42 |
|
|
|
41 |
|
| Interest expense |
|
(410 |
) |
|
|
(34 |
) |
|
|
(794 |
) |
|
|
(54 |
) |
| Total other income (expense) |
|
(389 |
) |
|
|
(14 |
) |
|
|
(752 |
) |
|
|
(13 |
) |
| Income (loss) before income taxes |
|
14,061 |
|
|
|
(5,474 |
) |
|
|
26,416 |
|
|
|
(10,627 |
) |
| Income tax expense (benefit) |
|
79 |
|
|
|
(2,060 |
) |
|
|
252 |
|
|
|
(3,999 |
) |
| Net income (loss) |
|
13,982 |
|
|
|
(3,414 |
) |
|
|
26,164 |
|
|
|
(6,628 |
) |
| Net loss attributable to MLP predecessor |
|
- |
|
|
|
(3,414 |
) |
|
|
- |
|
|
|
(6,628 |
) |
| Net income attributable to the partnership |
$ |
13,982 |
|
|
$ |
- |
|
|
$ |
26,164 |
|
|
$ |
- |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to partners' ownership
interest |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| General partner |
$ |
280 |
|
|
|
|
$ |
523 |
|
|
|
| Limited partners - common unitholders |
|
6,852 |
|
|
|
|
|
12,824 |
|
|
|
| Limited partners - subordinated unitholders |
|
6,850 |
|
|
|
|
|
12,817 |
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per limited partner unit (basic and
diluted): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Common units |
$ |
0.43 |
|
|
|
|
$ |
0.81 |
|
|
|
| Subordinated units |
$ |
0.43 |
|
|
|
|
$ |
0.81 |
|
|
|
Weighted avg. units outstanding (basic and
diluted): |
|
|
|
|
|
|
|
| Common units |
|
15,895 |
|
|
|
|
|
15,897 |
|
|
|
| Subordinated units |
|
15,890 |
|
|
|
|
|
15,890 |
|
|
|
| |
|
|
|
|
|
|
|
| Supplemental Revenues Data: |
|
|
|
|
|
|
|
| Storage and throughput services |
$ |
13,945 |
|
|
$ |
- |
|
|
$ |
26,320 |
|
|
$ |
- |
|
| Terminal services |
|
2,950 |
|
|
|
3,094 |
|
|
|
5,845 |
|
|
|
6,144 |
|
| Railcar capacity |
|
7,901 |
|
|
|
- |
|
|
|
15,675 |
|
|
|
- |
|
| Other |
|
697 |
|
|
|
351 |
|
|
|
1,441 |
|
|
|
697 |
|
| Total revenues |
$ |
25,493 |
|
|
$ |
3,445 |
|
|
$ |
49,281 |
|
|
$ |
6,841 |
|
| |
|
|
|
|
|
|
|
| GREEN PLAINS PARTNERS LP |
| CONDENSED CONSOLIDATED STATEMENT OF CASH
FLOWS |
| (unaudited, in thousands) |
| |
|
|
|
| |
Six Months Ended
June 30,
|
| |
|
2016 |
|
|
|
2015 |
|
| Cash flows from operating activities: |
|
|
|
| Net income (loss) |
$ |
26,164 |
|
|
$ |
(6,628 |
) |
| Noncash operating adjustments: |
|
|
|
| Depreciation and amortization |
|
2,705 |
|
|
|
2,721 |
|
| Deferred income taxes |
|
(3 |
) |
|
|
(3,999 |
) |
| Other |
|
560 |
|
|
|
104 |
|
| Net change in working capital |
|
(1,210 |
) |
|
|
(524 |
) |
| Net cash provided (used) by operating activities |
|
28,216 |
|
|
|
(8,326 |
) |
| |
|
|
|
| Cash flows from investing activities: |
|
|
|
| Purchases of property and equipment |
|
(331 |
) |
|
|
(697 |
) |
| Acquisition of assets from sponsor |
|
(62,312 |
) |
|
|
- |
|
| Net cash used by investing activities |
|
(62,643 |
) |
|
|
(697 |
) |
| |
|
|
|
| Cash flows from financing activities: |
|
|
|
| Net proceeds - revolving credit facility |
|
47,000 |
|
|
|
- |
|
| Distributions to partners |
|
(26,193 |
) |
|
|
- |
|
| Other |
|
(1 |
) |
|
|
7,890 |
|
| Net cash provided by financing activities |
|
20,806 |
|
|
|
7,890 |
|
| |
|
|
|
| Net change in cash and cash equivalents |
|
(13,621 |
) |
|
|
(1,133 |
) |
| Cash and cash equivalents, beginning of period |
|
16,385 |
|
|
|
5,705 |
|
| Cash and cash equivalents, end of period |
$ |
2,764 |
|
|
$ |
4,572 |
|
| |
|
|
|
| GREEN PLAINS PARTNERS LP |
| RECONCILIATIONS TO NON-GAAP FINANCIAL
MEASURES |
| (unaudited, in thousands) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
| |
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
| Net income (loss) |
$ |
13,982 |
|
|
$ |
(3,414 |
) |
|
$ |
26,164 |
|
|
$ |
(6,628 |
) |
| Interest expense |
|
410 |
|
|
|
34 |
|
|
|
794 |
|
|
|
54 |
|
| Income tax expense (benefit) |
|
79 |
|
|
|
(2,060 |
) |
|
|
252 |
|
|
|
(3,999 |
) |
| Depreciation and amortization |
|
1,488 |
|
|
|
1,400 |
|
|
|
2,705 |
|
|
|
2,721 |
|
| Transaction costs |
|
- |
|
|
|
- |
|
|
|
(4 |
) |
|
|
- |
|
| Unit-based compensation expense |
|
37 |
|
|
|
- |
|
|
|
22 |
|
|
|
- |
|
| Adjusted EBITDA |
|
15,996 |
|
|
$ |
(4,040 |
) |
|
|
29,933 |
|
|
$ |
(7,852 |
) |
| Less: |
|
|
|
|
|
|
|
| Interest paid or payable |
|
410 |
|
|
|
|
|
794 |
|
|
|
| Income taxes paid or payable |
|
83 |
|
|
|
|
|
255 |
|
|
|
| Maintenance capital expenditures |
|
140 |
|
|
|
|
|
174 |
|
|
|
| Distributable cash flow(1) |
$ |
15,363 |
|
|
|
|
$ |
28,710 |
|
|
|
| Distributions declared(2) |
$ |
13,298 |
|
|
|
|
$ |
26,434 |
|
|
|
| Coverage ratio |
1.16x |
|
|
|
1.09x |
|
|
| |
|
|
|
|
|
|
|
(1) Distributable cash flow for periods before July 1, 2015, is not
considered meaningful.
|
(2) Represents distributions declared for the applicable periods.
|
| |
|
|
|
|
|
|
|
Contact: Jim Stark | Vice President, Investor & Media Relations | 402.884.8700 | jim.stark@gpreinc.com
