UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_____________________

Form 8-K
_____________________

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event Reported): November 7, 2018  

Green Plains Partners LP
(Exact Name of Registrant as Specified in Charter)

Delaware001-3746947-3822258
(State or Other Jurisdiction of Incorporation)

(Commission File Number)(I.R.S. Employer Identification Number)
1811 Aksarben Drive, Omaha, Nebraska 68106
(Address of Principal Executive Offices)(Zip Code)

(402) 884-8700
(Registrant's telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 [   ]  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 [   ]  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 [   ]  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 [   ]  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2). Emerging growth company [ X  ]

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [ X  ]

 
 

Item 2.02. Results of Operations and Financial Condition.

          Green Plains Partners LP issued a press release announcing its financial results for the three months ended September 30, 2018. A copy of this press release is attached as Exhibit 99.1.

          The information in this current report on Form 8-K, including Exhibit 99.1, is “furnished,” not “filed,” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and is not subject to liability of that section nor deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, before or after this date and regardless of any general incorporation language in the filing, unless explicitly incorporated by reference in such filing.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits. The following exhibits are filed as part of this report.

Exhibit No. Description of Exhibit
   
99.1 Press Release, dated November 7, 2018


SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 Green Plains Partners LP
   
  
Date: November 7, 2018By: /s/ John W. Neppl        
  John W. Neppl
  Chief Financial Officer
(Principal Financial Officer)
  

EdgarFiling

EXHIBIT 99.1

FOR IMMEDIATE RELEASE
  

Green Plains Partners Reports Third Quarter 2018 Financial Results

OMAHA, Neb., Nov. 07, 2018 (GLOBE NEWSWIRE) -- Green Plains Partners LP (NASDAQ:GPP) today announced financial and operating results for the third quarter of 2018. Net income was $14.5 million, or $0.44 per common unit, for the third quarter of 2018 compared with $14.5 million, or $0.45 per common unit, for the same period in 2017. The partnership reported adjusted EBITDA of $16.8 million and distributable cash flow of $14.9 million for the third quarter of 2018, compared with adjusted EBITDA of $16.4 million and distributable cash flow of $14.9 million for the same period in 2017. Distribution coverage was 0.96x for the three months ended September 30, 2018.

“The partnership will remain the primary vehicle to expand our downstream logistics activities,” said Todd Becker, president and chief executive officer of Green Plains Partners. “As Green Plains Inc. finalizes its current portfolio optimization plan, we will continue to pursue accretive opportunities to grow the partnership’s revenue and earnings, and provide diversification for our unitholders.”

Third Quarter Highlights and Recent Developments


Results of Operations
Consolidated revenues decreased $0.7 million for the three months ended September 30, 2018, compared with the same period for 2017. Revenues generated from rail transportation services decreased $1.2 million due to lower average rates charged for the railcar volumetric capacity provided. Revenues generated from terminal services decreased $0.2 million due to lower throughput at our fuel terminals. These decreases were partially offset by an increase in trucking and other revenue of $0.4 million primarily due to expansion of our truck fleet and an increase in storage and throughput services revenue of $0.3 million primarily due to an increase in throughput and transload volumes.

Operations and maintenance expenses decreased $1.1 million for the three months ended September 30, 2018, compared with the same period for 2017, primarily due to lower railcar lease expense.

General and administrative expenses increased $0.2 million for the three months ended September 30, 2018, compared with the same period for 2017, primarily due to increases in board expenses and professional fees. Interest expense increased $0.5 million due to costs associated with increasing the partnership’s revolving credit facility and higher interest rates.

During the third quarter of 2018, Green Plains Inc.'s average utilization rate was approximately 81.3% of capacity, resulting in ethanol production of 304.8 million gallons for the third quarter of 2018, compared with 313.6 million gallons, or 83.7% of capacity, for the same quarter last year. Green Plains Inc. continues to evaluate production run rates and may flex production depending on market conditions. Green Plains Trade exceeded the minimum volume commitment for the three months ended September 30, 2018, and received a $0.4 million credit related to the $0.7 million deficiency payment charged by the partnership for the three months ended March 31, 2018.

              
GREEN PLAINS PARTNERS LP
SELECTED OPERATING DATA
(unaudited, in million gallons)
              
 Three Months Ended Nine Months Ended
 September 30, September 30,
 2018 2017 % Var. 2018 2017 % Var.
Product volumes             
Storage and throughput services 314.1  308.3  1.9 %  926.7  913.9  1.4 %
              
Terminal services:             
Affiliate 35.2  33.1  6.3    101.3  124.5  (18.6) 
Non-affiliate 28.1  38.8  (27.6)   90.7  99.3  (8.7) 
  63.3  71.9  (12.0)   192.0  223.8  (14.2) 
              
Railcar capacity billed (daily average) 98.2  95.1  3.3    98.6  91.9  7.3  

Liquidity and Capital Resources
Total liquidity as of September 30, 2018, was $107.4 million, including $0.4 million in cash and cash equivalents, and $107.0 million available under the partnership’s revolving credit facility. The balance outstanding on the partnership’s revolving credit facility was $128.0 million as of September 30, 2018.

Conference Call Information
Green Plains Partners LP and Green Plains Inc. will host a joint conference call Thursday Nov. 8th at 11 a.m. Eastern time (10 a.m. Central time), to discuss third quarter 2018 financial and operating results for each company. Domestic and international participants can access the conference call by dialing 877.711.2374 and 281.542.4862, respectively, and referencing conference ID 1476588. Participants are advised to call at least 10 minutes prior to the start time. Alternatively, the conference call, transcript and presentation 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 financings, minimum volume commitment deficiency payments, unit-based compensation expense, net gains or losses on asset sales and the partnership’s proportional share of EBITDA adjustments of equity method investees. 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 equity method investees. 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.

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 production, grain handling and storage, cattle feeding, food ingredients, and commodity marketing and logistics services. The company is one of the leading producers of ethanol in the world and, through its adjacent businesses, is focused on the production of high-protein feed ingredients and export growth opportunities. Green Plains owns a 62.4% 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 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, December 31,
 2018 2017
ASSETS(unaudited)   
Current assets     
Cash and cash equivalents$ 432  $ 502 
Accounts receivable, including from affiliates  18,574    19,974 
Other current assets  743    1,158 
Total current assets  19,749    21,634 
Property and equipment, net  46,156    48,305 
Other assets  23,406    22,329 
Total assets$89,311  $92,268 
      
LIABILITIES AND PARTNERS' CAPITAL     
Current liabilities     
Accounts payable, including to affiliates$ 11,539  $ 7,960 
Other current liabilities  5,424    8,098 
Total current liabilities  16,963    16,058 
Long-term debt  136,012    134,875 
Other liabilities  3,736    4,181 
Total liabilities  156,711    155,114 
      
Partners' capital  (67,400)   (62,846)
Total liabilities and partners' capital$89,311  $92,268 




                 
GREEN PLAINS PARTNERS LP
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited, in thousands except per unit amounts)
                 
 Three Months Ended Nine Months Ended
 September 30, September 30,
 2018 2017 % Var. 2018 2017 % Var.
Revenues                
Affiliate$24,472  $24,748  (1.1)% $72,949  $74,019  (1.4)%
Non-affiliate 1,298   1,701  (23.7)  4,546   4,724  (3.8)
Total revenues 25,770   26,449  (2.6)  77,495   78,743  (1.6)
Operating expenses                
Operations and maintenance (excluding depreciation and amortization reflected below) 7,283   8,346  (12.7)  23,586   25,161  (6.3)
General and administrative 1,109   922  20.3   3,689   3,258  13.2 
Depreciation and amortization 1,120   1,280  (12.5)  3,406   3,781  (9.9)
Total operating expenses 9,512   10,548  (9.8  30,681   32,200  (4.7)
Operating income 16,258   15,901  2.2   46,814   46,543  0.6 
Other income (expense)                
Interest income 21   20  5.0   61   61  - 
Interest expense (1,871)  (1,412) 32.5   (5,253)  (3,941) 33.3 
Other -   -  -   75   -  * 
Total other expense (1,850)  (1,392) 32.9   (5,117)  (3,880) 31.9 
Income before income taxes and income (loss) from equity method investees 14,408   14,509  (0.7)  41,697   42,663  (2.3)
Income tax expense (5)  (43) (88.4)  (70)  (135) (48.1)
Income (loss) from equity method investees 48   -  *   (82)  -  * 
Net income$14,451  $14,466  (0.1)% $41,545  $42,528  (2.3)%
                 
Net income attributable to partners' ownership interests:                
General partner$289  $290  (0.3)% $831  $851  (2.4)%
Limited partners - common unitholders 10,726   7,097  51.1   24,015   20,856  15.1 
Limited partners - subordinated unitholders 3,436   7,079  (51.5)  16,699   20,821  (19.8)
                 
Earnings per limited partner unit (basic and diluted):                
Common units$0.44  $0.45  (2.2)% $1.28  $1.31  (2.3)%
Subordinated units$0.44  $0.45  2.2 % $1.28  $1.31  (2.3)%
                 
Weighted average limited partner units outstanding (basic and diluted):                
Common units 24,403   15,922      18,780   15,914   
Subordinated units 7,427   15,890      13,038   15,890   
                 
Supplemental Revenues Data:                
Storage and throughput services$15,748  $15,416  2.2 % $45,965  $45,695  0.6 %
Railcar transportation services 6,156   7,384  (16.6  19,780   22,169  (10.8)
Terminal services 2,447   2,688  (9.0)  8,028   8,716  (7.9)
Trucking and other 1,419   961  47.7   3,722   2,163  72.1 
Total revenues$25,770  $26,449  (2.6)% $77,495  $78,743  (1.6)%
                 
* Percentage variance not considered meaningful.                




      
GREEN PLAINS PARTNERS LP
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(unaudited, in thousands)
 Nine Months Ended
 September 30,
 2018 2017
Cash flows from operating activities:     
Net income$ 41,545  $ 42,528 
Noncash operating adjustments:     
Depreciation and amortization  3,406    3,781 
Other  771    744 
Net change in working capital  2,235    (1,390)
Net cash provided by operating activities  47,957    45,663 
Cash flows from investing activities:     
Purchases of property and equipment, net  (1,222)   (1,912)
Contributions to equity method investees  (1,425)   (1,284)
Net cash used in investing activities  (2,647)   (3,196)
Cash flows from financing activities:     
Payments of distributions  (46,302)   (42,839)
Net proceeds - revolving credit facility  1,100    - 
Payments of loan fees  (185)   - 
Other  7    3 
Net cash used in financing activities  (45,380)   (42,836)
      
Net change in cash and cash equivalents  (70)   (369)
Cash and cash equivalents, beginning of period  502    622 
Cash and cash equivalents, end of period$ 432  $ 253 


               
GREEN PLAINS PARTNERS LP
RECONCILIATIONS TO NON-GAAP FINANCIAL MEASURES
(unaudited, in thousands except ratios)
               
 Three Months Ended Nine Months Ended LTM Ended
 September 30, September 30, September 30,
 2018 2017 2018 2017 2018
Net income$ 14,451  $ 14,466  $ 41,545  $ 42,528  $ 57,884 
Interest expense  1,871    1,412    5,253    3,941    6,714 
Income tax expense  5    43    70    135    44 
Depreciation and amortization  1,120    1,280    3,406    3,781    4,736 
Minimum volume commitment adjustments (1)  (747)   (828)   -    182    (182)
Transaction costs  6    -    288    -    288 
Unit-based compensation expense  76    40    196    159    256 
Proportional share of EBITDA adjustments of equity method investees (2)  45    -    45    -    45 
Adjusted EBITDA  16,827    16,413    50,803    50,726    69,785 
Interest paid or payable  (1,871)   (1,412)   (5,253)   (3,941)   (6,714)
Income taxes paid or payable  (4)   (43)   (68)   (135)   (22)
Maintenance capital expenditures  (35)   (18)   (50)   (182)   (52)
Distributable cash flow$ 14,917  $ 14,940  $ 45,432  $ 46,468  $ 62,997 
Distributions declared (3)$ 15,503  $ 14,932  $ 46,499  $ 43,818  $ 61,805 
Coverage ratio 0.96x  1.00x  0.98x  1.06x  1.02x
 

(1)  Adjustments related to the storage and throughput quarterly minimum volume commitments.
(2)  Represents the partnership's proportional share of depreciation and amortization, interest expense, and income tax expense of equity method investees.
(3)  Represents distributions declared for the applicable period and paid in the subsequent quarter.
               
Contact: Jim Stark | Vice President, Investor & Media Relations | 402.884.8700 | jim.stark@gpreinc.com