Green Plains Renewable Energy INC. (GPRE)

[Slashnuts]

GPRE Reports Q4 and 2017 Results...

Green Plains Reports Fourth Quarter and Full Year 2017 Financial Results
Results for the Fourth Quarter of 2017
Net income of $46.6 million, or $0.99 per diluted share
Recognized a total tax benefit of $63.9 million, $52.8 million of which was due to a revaluation of deferred tax liabilities under new U.S. corporate tax laws
Excluding the revaluation of deferred tax liabilities, net loss of $6.2 million, or $(0.16) per diluted share
Record ethanol production of 340.8 million gallons
EBITDA of $36.1 million
Results for the Full Year of 2017
Net income of $61.1 million, or $1.47 per diluted share
Excluding the impact of debt refinancing costs, R&D tax credits and revaluation of deferred tax liabilities, net loss of $33.6 million, or $(0.86) per diluted share
Produced 1.3 billion gallons of ethanol, a 9.5% increase over 2016
EBITDA of $154.4 million
OMAHA, Neb., Feb. 07, 2018 (GLOBE NEWSWIRE) -- Green Plains Inc. (NASDAQ:GPRE) today announced financial results for the fourth quarter of 2017. Net income attributable to the company was $46.6 million, or $0.99 per diluted share, for the fourth quarter of 2017 compared with net income of $18.7 million, or $0.47 per diluted share, for the same period in 2016. The company recorded a tax benefit of $63.9 million inclusive of a revaluation of deferred tax liabilities under the new U.S. corporate tax laws. Revenues were $921.0 million for the fourth quarter of 2017 compared with $932.1 million for the same period last year.
"Our non-ethanol segments reported strong performance in 2017 with $155 million of EBITDA," commented Todd Becker, president and chief executive officer. "Our Food and Ingredients segment led the way with approximately $50 million of EBITDA, which was more than double what we reported last year, highlighting the success of our diversification strategy. This growth was driven by a full year of results from Fleischmann's Vinegar and the expansion of Green Plains Cattle. We expect an even stronger 2018 from these segments. We also had a strong quarter and finish to the year by the Ag and Energy segment, led by our merchant activities in natural gas."
Green Plains produced a record 340.8 million gallons of ethanol during the fourth quarter of 2017, compared with 334.2 million gallons for the same period in 2016. The consolidated ethanol crush margin was $26.8 million, or $0.08 per gallon, for the fourth quarter of 2017, compared with $81.6 million, or $0.24 per gallon, for the same period in 2016. The consolidated ethanol crush margin is the ethanol production segment's operating income before depreciation and amortization, which includes corn oil production, plus intercompany storage, transportation and other fees, net of related expenses.
"Ethanol margins were weak in the fourth quarter as growth in export demand started to take hold and industry stocks remained high," Becker added. "As a result, we have lowered our ethanol production rate in the first quarter. We believe margins will show improvement as we move into the second quarter, led by robust global demand and stronger domestic demand compared to last year. We believe the U.S. will export record volumes again in 2018 as countries around the world continue to take advantage of the economic benefits of ethanol and blend more into their finished gasoline. The margins for U.S. blenders are the best we have seen since 2014 as wholesale ethanol prices continue to average 40 cents to 50 cents lower than wholesale gasoline with no cheaper competing source of octane."
Revenues attributable to the company were $3.6 billion for the year ended Dec. 31, 2017, compared with $3.4 billion for the same period in 2016. Net income attributable to the company for the year ended Dec. 31, 2017, was $61.1 million, or $1.47 per diluted share, compared with net income of $10.7 million, or $0.28 per diluted share, for the same period in 2016. Excluding the impact of the debt refinancing costs and R&D tax credits, reported in the third quarter of 2017, and revaluation of deferred tax liabilities in the fourth quarter of 2017, net loss attributable to the company was $33.6 million for 2017, or $(0.86) per diluted share.
"We continue to focus on improving the business through operational efficiency and diversification of earnings," said Becker. "Looking forward, we will focus our growth capital in the Food and Ingredients segment and downstream terminal business through our investment and ownership in Green Plains Partners. Our new export terminal in Beaumont, Texas loaded its first export shipment in December and has since loaded eight more vessels originated almost exclusively from our own ethanol production. We expect to offer our interest in Beaumont to the partnership in the next 120 days and believe this terminal will be a key asset that handles the growing export demand for U.S. ethanol. At the same time, domestic ethanol demand should be positively impacted by expanding blends as there are now more than 1,300 stations across 29 states selling E15 and increasing every day."
Full Year Highlights
In March 2017, Green Plains Cattle purchased a 30,000-head cattle feeding operation located approximately 20 miles from Green Plains' Hereford, Texas ethanol facility.

On April 28, 2017, Green Plains Cattle amended its senior secured asset-based revolving credit facility to finance the expanded working capital requirements for its cattle feeding operations. The amendment increased the maximum commitment from $100 million to $200 million until July 31, 2017, when it was increased again to $300 million. The maturity date was extended from Oct. 31, 2017, to April 30, 2020.

On May 16, 2017, Green Plains Cattle completed the acquisition of two cattle feeding operations from Cargill Cattle Feeders, LLC for approximately $37.2 million, excluding working capital. The transaction, supported by a long-term supply agreement with Cargill Meat Solutions, included feed yards located in Leoti, Kan. and Eckley, Colo. and added capacity of 155,000 head to the company's operations.

During the second quarter, Green Plains entered into privately negotiated agreements with holders, on behalf of certain beneficial owners, of the company's 3.25% Convertible Senior Notes due 2018. Under these agreements, the company exchanged approximately 2.8 million shares of its common stock and $8.5 million in cash for approximately $56.3 million in aggregate principal amount of the 2018 notes. The company incurred a non-cash charge of $1.3 million, before taxes, related to the debt extinguishment.

On July 28, 2017, Green Plains' wholly owned subsidiary, Green Plains Trade, amended its senior secured asset-based revolving credit agreement to reduce the interest rate spreads, increase inventory advance rates and expand eligible inventory locations and commodities. The amendment increased the maximum commitment from $150 million to $300 million and extended the maturity date from Nov. 26, 2019, to July 28, 2022.

On Aug. 29, 2017, Green Plains entered into a $500 million term loan agreement, which matures on Aug. 29, 2023, to refinance $405 million of existing debt. The term loan is guaranteed by the company and most of its subsidiaries and secured by substantially all of the company's assets, including its 17 ethanol production facilities, vinegar production facilities and a second priority lien on the assets secured under the revolving credit facilities at Green Plains Trade, Green Plains Cattle and Green Plains Grain.

On Sept. 11, 2017, John Neppl joined the company as chief financial officer of Green Plains and Green Plains Partners, replacing Jerry Peters, who retired. Mr. Peters continues as a member of the board of directors of Green Plains Holdings LLC, the general partner of Green Plains Partners. Mr. Neppl most recently served as chief financial officer of The Gavilon Group, LLC and brings extensive experience in commodity processing and trading businesses.

On Oct. 27, 2017, Green Plains Partners upsized its revolving credit facility by $40.0 million, from $155.0 million to $195.0 million, accessing a portion of the $100.0 million accordion in place on the facility.

On Nov. 16, 2017, Green Plains Cattle amended its senior secured asset-based revolving credit facility with a group of lenders led by Bank of the West and ING Capital LLC. The amendment increased the revolving commitment under the credit facility from $300 million to $425 million with an additional $75.0 million available accordion feature.

In December 2017, the company's joint venture with Jefferson Gulf Coast Energy Partners, JGP Energy Partners, completed Phase I of its intermodal export and import fuels terminal in Beaumont, Texas and loaded multiple vessels with ethanol bound for international destinations. Green Plains plans to offer its 50% interest in the joint venture to the partnership during the first half of 2018.

In December 2017, Syngenta and Green Plains jointly announced a partnership to expand the use of Enogen corn as a portion of the feedstock across Green Plains' 1.5-billion-gallon ethanol production platform.

During the year, the company repurchased 394,677 shares of common stock for approximately $6.7 million.
Results of Operations
Consolidated revenues decreased $11.1 million for the three months ended Dec. 31, 2017, compared with the same period in 2016. Revenues were impacted by lower average realized prices for ethanol, partially offset by an increase in revenues related to the cattle feedlot acquisitions during the first and second quarters of 2017.
Operating income decreased $48.6 million for the three months ended Dec. 31, 2017, compared with the same period last year primarily due to lower ethanol margins.
An income tax benefit of $63.9 million was recorded in the fourth quarter of 2017, including a $52.8 million benefit related to the revaluation of deferred tax liabilities under the new U.S. corporate tax laws.

http://investor.gpreinc.com/releasedetail.cfm?ReleaseID=1056783

Good luck To All!$!$