Green Plains Partners Reports Fourth Quarter and Full Year 2020 Financial Results
Results for the Fourth Quarter of 2020
- Net income of
$10.3 million , or$0.44 per common unit - Adjusted EBITDA of
$13.8 million and distributable cash flow of$11.3 million - Quarterly cash distribution of
$0.12 per unit - Distribution coverage ratio of 3.98x, LTM distribution coverage ratio of 3.99x
The partnership also reported adjusted EBITDA of
“Green Plains Partners achieved consistent financial results for its unitholders while continuing to reduce its debt,” said
Full Year Highlights and Recent Developments
- On
June 4, 2020 , the partnership refinanced its debt facility into a$130.0 million term loan and a$5.0 million revolving credit facility, maturingDecember 31, 2021 . - On
December 28, 2020 ,Green Plains Inc. closed on the sale of itsHereford, Texas ethanol plant. Correspondingly, the partnership’s storage and transportation assets affiliated with the location were sold toGreen Plains Inc. for$10.0 million , along with the transfer of certain railcar leases. In accordance with the loan agreement, the proceeds were used to repay debt. - On
January 21, 2021 , the board of directors of the partnership’s general partner declared a quarterly cash distribution of$0.12 per unit, or approximately$2.8 million , for the fourth quarter of 2020. The distribution is payable onFebruary 12, 2021 , to unitholders of record at the close of business onFebruary 5, 2021 . - On
January 27, 2021 , the partnership announced an agreement to sell its storage and transportation assets located at theGreen Plains Inc. Ord, Neb. ethanol facility toGreen Plains Ord LLC for$27.0 million , along with the transfer of certain railcar leases. In accordance with the loan agreement, the proceeds will be used to repay debt.
Results of Operations
Consolidated revenues increased
Operations and maintenance expenses increased
During the fourth quarter of 2020, Green Plains Inc.’s average production utilization rate was approximately 75.7% of capacity. Ethanol throughput was 215.1 million gallons, which was below the contracted minimum volume commitment. As a result, the partnership charged
SELECTED OPERATING DATA | |||||||||||||||
(unaudited, in million gallons) | |||||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||
2020 | 2019 | % Var. | 2020 | 2019 | % Var. | ||||||||||
Product volumes | |||||||||||||||
Storage and throughput services | 215.1 | 240.1 | (10.4 | ) | % | 796.4 | 859.8 | (7.4 | ) | % | |||||
Terminal services: | |||||||||||||||
Affiliate | 23.6 | 28.5 | (17.2 | ) | 102.9 | 114.9 | (10.4 | ) | |||||||
Non-affiliate | 25.3 | 26.9 | (5.9 | ) | 103.6 | 106.0 | (2.3 | ) | |||||||
48.9 | 55.4 | (11.7 | ) | 206.5 | 220.9 | (6.5 | ) | ||||||||
Railcar capacity billed (daily average) | 81.1 | 77.7 | 4.4 | 80.6 | 79.8 | 1.0 |
Liquidity and Capital Resources
Total liquidity as of
Conference Call Information
On
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
About
About
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
Consolidated Financial Results
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
(in thousands) | |||||||
2020 | 2019 | ||||||
ASSETS | (unaudited) | ||||||
Current assets | |||||||
Cash and cash equivalents | $ | 2,478 | $ | 261 | |||
Accounts receivable, including from affiliates | 14,744 | 16,651 | |||||
Other current assets | 772 | 517 | |||||
Total current assets | 17,994 | 17,429 | |||||
Property and equipment, net | 32,119 | 37,355 | |||||
Operating lease right-of-use assets | 40,604 | 35,456 | |||||
Other assets | 14,603 | 15,413 | |||||
Total assets | $ | 105,320 | $ | 105,653 | |||
LIABILITIES AND PARTNERS' DEFICIT | |||||||
Current liabilities | |||||||
Accounts payable, including to affiliates | $ | 4,399 | $ | 5,593 | |||
Operating lease current liabilities | 11,506 | 13,093 | |||||
Current maturities of long-term debt | 97,739 | 132,100 | |||||
Other current liabilities | 5,438 | 5,026 | |||||
Total current liabilities | 119,082 | 155,812 | |||||
Asset retirement obligations | 2,865 | 2,500 | |||||
Operating lease long-term liabilities | 29,835 | 23,088 | |||||
Total liabilities | 151,782 | 181,400 | |||||
Partners' deficit | (46,462 | ) | (75,747 | ) | |||
Total liabilities and partners' deficit | $ | 105,320 | $ | 105,653 | |||
CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||||||||||
(unaudited, in thousands except per unit amounts) | |||||||||||||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||||||||||
2020 | 2019 | % Var. | 2020 | 2019 | % Var. | ||||||||||||||||||
Revenues | |||||||||||||||||||||||
Affiliate | $ | 20,183 | $ | 18,780 | 7.5 | % | $ | 78,510 | $ | 75,531 | 3.9 | % | |||||||||||
Non-affiliate | 1,128 | 1,541 | (26.8 | ) | 4,835 | 6,856 | (29.5 | ) | |||||||||||||||
Total revenues | 21,311 | 20,321 | 4.9 | 83,345 | 82,387 | 1.2 | |||||||||||||||||
Operating expenses | |||||||||||||||||||||||
Operations and maintenance (excluding depreciation and amortization reflected below) | 6,715 | 6,344 | 5.8 | 26,125 | 25,658 | 1.8 | |||||||||||||||||
General and administrative | 1,168 | 1,001 | 16.7 | 4,206 | 4,055 | 3.7 | |||||||||||||||||
Depreciation and amortization | 939 | 694 | 35.3 | 3,806 | 3,441 | 10.6 | |||||||||||||||||
Total operating expenses | 8,822 | 8,039 | 9.7 | 34,137 | 33,154 | 3.0 | |||||||||||||||||
Operating income | 12,489 | 12,282 | 1.7 | 49,208 | 49,233 | (0.1 | ) | ||||||||||||||||
Other income (expense) | |||||||||||||||||||||||
Interest income | - | 20 | * | - | 81 | * | |||||||||||||||||
Interest expense | (2,331 | ) | (1,986 | ) | 17.4 | (8,513 | ) | (8,310 | ) | 2.4 | |||||||||||||
Other, net | - | (1 | ) | * | - | 14 | * | ||||||||||||||||
Total other expense | (2,331 | ) | (1,967 | ) | 18.5 | (8,513 | ) | (8,215 | ) | 3.6 | |||||||||||||
Income before income taxes and income from equity method investee | 10,158 | 10,315 | (1.5 | ) | 40,695 | 41,018 | (0.8 | ) | |||||||||||||||
Income tax expense | (46 | ) | (76 | ) | (39.5 | ) | (212 | ) | (220 | ) | (3.6 | ) | |||||||||||
Income from equity method investee | 176 | 151 | 16.6 | 664 | 681 | (2.5 | ) | ||||||||||||||||
Net income | $ | 10,288 | $ | 10,390 | (1.0 | ) | % | $ | 41,147 | $ | 41,479 | (0.8 | ) | % | |||||||||
Net income attributable to partners' ownership interests: | |||||||||||||||||||||||
General partner | $ | 206 | $ | 209 | (1.4 | ) | % | $ | 823 | $ | 830 | (0.8 | ) | % | |||||||||
Limited partners - common unitholders | 10,082 | 10,181 | (1.0 | ) | 40,324 | 40,649 | (0.8 | ) | |||||||||||||||
Earnings per limited partner unit (basic and diluted): | |||||||||||||||||||||||
Common units | $ | 0.44 | $ | 0.44 | * | % | $ | 1.74 | $ | 1.76 | (1.1 | ) | % | ||||||||||
Weighted average limited partner units outstanding (basic and diluted): | |||||||||||||||||||||||
Common units | 23,161 | 23,138 | 23,149 | 23,129 | |||||||||||||||||||
Supplemental Revenues Data: | |||||||||||||||||||||||
Storage and throughput services | $ | 12,513 | $ | 11,785 | 6.2 | % | $ | 48,603 | $ | 47,140 | 3.1 | % | |||||||||||
Rail transportation services | 5,460 | 5,136 | 6.3 | 21,496 | 21,265 | 1.1 | |||||||||||||||||
Terminal services | 2,018 | 2,270 | (11.1 | ) | 8,506 | 9,664 | (12.0 | ) | |||||||||||||||
Trucking and other | 1,320 | 1,130 | 16.8 | 4,740 | 4,318 | 9.8 | |||||||||||||||||
Total revenues | $ | 21,311 | $ | 20,321 | 4.9 | % | $ | 83,345 | $ | 82,387 | 1.2 | % | |||||||||||
* Percentage variance not considered meaningful. |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
(unaudited, in thousands) | |||||||
Twelve Months Ended | |||||||
2020 | 2019 | ||||||
Cash flows from operating activities: | |||||||
Net income | $ | 41,147 | $ | 41,479 | |||
Noncash operating adjustments: | |||||||
Depreciation and amortization | 3,806 | 3,441 | |||||
Distribution from equity method investee | 1,000 | - | |||||
Other | 1,690 | 592 | |||||
Net change in working capital | 146 | 1,145 | |||||
Net cash provided by operating activities | 47,789 | 46,657 | |||||
Cash flows from investing activities: | |||||||
Purchases of property and equipment | (162 | ) | (305 | ) | |||
Proceeds from the disposal of property and equipment | - | 331 | |||||
Disposition of assets | 10,000 | - | |||||
Net cash provided by investing activities | 9,838 | 26 | |||||
Cash flows from financing activities: | |||||||
Payments of distributions | (19,800 | ) | (45,098 | ) | |||
Net payments on revolving credit facility | (5,100 | ) | (1,900 | ) | |||
Net payments on long-term debt | (27,000 | ) | - | ||||
Payments of loan fees | (3,517 | ) | - | ||||
Other | 7 | 7 | |||||
Net cash used in financing activities | (55,410 | ) | (46,991 | ) | |||
Net change in cash and cash equivalents | 2,217 | (308 | ) | ||||
Cash and cash equivalents, beginning of period | 261 | 569 | |||||
Cash and cash equivalents, end of period | $ | 2,478 | $ | 261 | |||
RECONCILIATIONS TO NON-GAAP FINANCIAL MEASURES | |||||||||||||||
(unaudited, dollars in thousands) | |||||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Net income | $ | 10,288 | $ | 10,390 | $ | 41,147 | $ | 41,479 | |||||||
Interest expense | 2,331 | 1,986 | 8,513 | 8,310 | |||||||||||
Income tax expense | 46 | 76 | 212 | 220 | |||||||||||
Depreciation and amortization | 939 | 694 | 3,806 | 3,441 | |||||||||||
Transaction costs | 25 | - | 25 | - | |||||||||||
Unit-based compensation expense | 81 | 80 | 320 | 319 | |||||||||||
Gain on the disposal of assets | - | - | - | (14 | ) | ||||||||||
Proportional share of EBITDA adjustments of equity method investee (1) | 44 | 43 | 181 | 196 | |||||||||||
Adjusted EBITDA | 13,754 | 13,269 | 54,204 | 53,951 | |||||||||||
Interest paid or payable | (2,331 | ) | (1,986 | ) | (8,513 | ) | (8,310 | ) | |||||||
Income taxes paid or payable | (46 | ) | (97 | ) | (137 | ) | (238 | ) | |||||||
Maintenance capital expenditures | (65 | ) | (32 | ) | (181 | ) | (94 | ) | |||||||
Distributable cash flow (2) | $ | 11,312 | $ | 11,154 | $ | 45,373 | $ | 45,309 | |||||||
Distributions declared (3) | $ | 2,841 | $ | 11,280 | $ | 11,361 | $ | 45,109 | |||||||
Coverage ratio | 3.98x | 0.99x | 3.99x | 1.00x | |||||||||||
(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 |
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(3) Distributions declared for the applicable period and paid in the subsequent quarter. | |||||||||||||||
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Source: Green Plains Partners LP