Green Plains Partners Reports Fourth Quarter and Full Year 2021 Financial Results
Results for the Fourth Quarter 2021
- Net income of
$9.9 million , or$0.42 per common unit - Adjusted EBITDA of
$12.2 million and distributable cash flow of$11.0 million - Quarterly cash distribution declared of
$0.44 per unit - Distribution coverage ratio of 1.05x
Results for the Full Year 2021
- Net income of
$40.4 million , or$1.71 per common unit - Adjusted EBITDA of
$52.1 million and distributable cash flow of$45.4 million - Distribution coverage ratio of 1.72x
The partnership also reported adjusted EBITDA of
“Green Plains Partners executed on its plan during the year to refinance its debt and increase distributions to unitholders,” said
Full Year Highlights and Recent Developments
- On
March 22, 2021 , Green Plains Inc.’s subsidiary,Green Plains Ord LLC , closed on the sale of its ethanol plant located inOrd, Nebraska toGreenAmerica Biofuels Ord LLC . Correspondingly, the storage assets located adjacent to theOrd plant were sold toGreen Plains Ord LLC for$27.5 million , along with the transfer of associated railcar operating leases. In accordance with the loan agreement, the proceeds were used to repay debt. - On
July 20, 2021 , the partnership closed on an amended five-year,$60.0 million term loan facility. - On
October 19, 2021 , the board of directors of the partnership’s general partner increased the quarterly cash distribution from$0.12 per unit to$0.435 per unit. - On
January 20, 2022 , the board of directors of the partnership’s general partner declared a quarterly cash distribution of$0.44 per unit, or approximately$10.4 million , for the fourth quarter of 2021. The distribution is payable onFebruary 11, 2022 , to unitholders of record at the close of business onFebruary 4, 2022 .
Results of Operations
Consolidated revenues decreased
Operations and maintenance expenses decreased
During the fourth quarter of 2021, Green Plains Inc.’s average production utilization rate was approximately 83.0% of capacity. Ethanol throughput was 201.4 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 | ||||||||||||
2021 | 2020 | % Var. | 2021 | 2020 | % Var. | ||||||||
Product volumes | |||||||||||||
Storage and throughput services | 201.4 | 215.1 | (6.4 | )% | 754.5 | 796.4 | (5.3 | )% | |||||
Terminal services: | |||||||||||||
Affiliate | 22.2 | 23.6 | (5.9 | ) | 84.3 | 102.9 | (18.1 | ) | |||||
Non-affiliate | 25.5 | 25.3 | 0.8 | 103.2 | 103.6 | (0.4 | ) | ||||||
47.7 | 48.9 | (2.5 | ) | 187.5 | 206.5 | (9.2 | ) | ||||||
Railcar capacity billed (daily average) | 68.3 | 81.1 | (15.8 | ) | 69.8 | 80.6 | (13.4 | ) | |||||
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. 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) | ||||||
2021 | 2020 |
|||||
ASSETS | (unaudited) | |||||
Current assets | ||||||
Cash and cash equivalents | $ | 17,645 | $ | 2,478 | ||
Accounts receivable, including from affiliates | 14,555 | 14,744 | ||||
Other current assets | 845 | 772 | ||||
Total current assets | 33,045 | 17,994 | ||||
Property and equipment, net | 28,773 | 32,119 | ||||
Operating lease right-of-use assets | 38,863 | 40,604 | ||||
Other assets | 13,791 | 14,603 | ||||
Total assets | $ | 114,472 | $ | 105,320 | ||
LIABILITIES AND PARTNERS' EQUITY (DEFICIT) | ||||||
Current liabilities | ||||||
Accounts payable, including to affiliates | $ | 4,954 | $ | 4,399 | ||
Operating lease current liabilities | 12,108 | 11,506 | ||||
Current maturities of long-term debt | - | 97,739 | ||||
Other current liabilities | 5,420 | 5,438 | ||||
Total current liabilities | 22,482 | 119,082 | ||||
Long-term debt | 59,467 | - | ||||
Asset retirement obligations | 2,658 | 2,865 | ||||
Operating lease long-term liabilities | 27,562 | 29,835 | ||||
Total liabilities | 112,169 | 151,782 | ||||
Partners' equity (deficit) | 2,303 | (46,462 | ) | |||
Total liabilities and partners' equity (deficit) | $ | 114,472 | $ | 105,320 |
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||||||
(unaudited, in thousands except per unit amounts) | ||||||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||||||
2021 | 2020 | % Var. | 2021 | 2020 | % Var. | |||||||||||||||
Revenues | ||||||||||||||||||||
Affiliate | $ | 18,117 | $ | 20,183 | (10.2 | )% | $ | 74,178 | $ | 78,510 | (5.5 | )% | ||||||||
Non-affiliate | 977 | 1,128 | (13.4 | ) | 4,274 | 4,835 | (11.6 | ) | ||||||||||||
Total revenues | 19,094 | 21,311 | (10.4 | ) | 78,452 | 83,345 | (5.9 | ) | ||||||||||||
Operating expenses | ||||||||||||||||||||
Operations and maintenance (excluding depreciation and amortization reflected below) | 5,908 | 6,715 | (12.0 | ) | 23,061 | 26,125 | (11.7 | ) | ||||||||||||
General and administrative | 1,260 | 1,168 | 7.9 | 4,412 | 4,206 | 4.9 | ||||||||||||||
Depreciation and amortization | 966 | 939 | 2.9 | 3,737 | 3,806 | (1.8 | ) | |||||||||||||
Total operating expenses | 8,134 | 8,822 | (7.8 | ) | 31,210 | 34,137 | (8.6 | ) | ||||||||||||
Operating income | 10,960 | 12,489 | (12.2 | ) | 47,242 | 49,208 | (4.0 | ) | ||||||||||||
Interest expense | 1,272 | 2,331 | (45.4 | ) | 7,392 | 8,513 | (13.2 | ) | ||||||||||||
Income before income taxes and income from equity method investee | 9,688 | 10,158 | (4.6 | ) | 39,850 | 40,695 | (2.1 | ) | ||||||||||||
Income tax (expense) benefit | 41 | (46 | ) | (189.1 | ) | (188 | ) | (212 | ) | (11.3 | ) | |||||||||
Income from equity method investee | 183 | 176 | 4.0 | 700 | 664 | 5.4 | ||||||||||||||
Net income | $ | 9,912 | $ | 10,288 | (3.7 | )% | $ | 40,362 | $ | 41,147 | (1.9 | )% | ||||||||
Net income attributable to partners' ownership interests: | ||||||||||||||||||||
General partner | $ | 198 | $ | 206 | (3.9 | )% | $ | 807 | $ | 823 | (1.9 | )% | ||||||||
Limited partners - common unitholders | 9,714 | 10,082 | (3.7 | ) | 39,555 | 40,324 | (1.9 | ) | ||||||||||||
Earnings per limited partner unit (basic and diluted): | ||||||||||||||||||||
Common units | $ | 0.42 | $ | 0.44 | (4.5 | )% | $ | 1.71 | $ | 1.74 | (1.7 | )% | ||||||||
Weighted average limited partner units outstanding (basic and diluted): | ||||||||||||||||||||
Common units | 23,208 | 23,161 | 23,185 | 23,149 | ||||||||||||||||
Supplemental Revenues Data: | ||||||||||||||||||||
Storage and throughput services | $ | 11,564 | $ | 12,513 | (7.6 | )% | $ | 46,953 | $ | 48,603 | (3.4 | )% | ||||||||
Rail transportation services | 4,673 | 5,460 | (14.4 | ) | 19,198 | 21,496 | (10.7 | ) | ||||||||||||
Terminal services | 1,898 | 2,018 | (5.9 | ) | 8,156 | 8,506 | (4.1 | ) | ||||||||||||
Trucking and other | 959 | 1,320 | (27.3 | ) | 4,145 | 4,740 | (12.6 | ) | ||||||||||||
Total revenues | $ | 19,094 | $ | 21,311 | (10.4 | )% | $ | 78,452 | $ | 83,345 | (5.9 | )% | ||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
(unaudited, in thousands) | |||||||
Twelve Months Ended | |||||||
2021 | 2020 | ||||||
Cash flows from operating activities: | |||||||
Net income | $ | 40,362 | $ | 41,147 | |||
Noncash operating adjustments: | |||||||
Depreciation and amortization | 3,737 | 3,806 | |||||
Distribution from equity method investee | 1,500 | 1,000 | |||||
Other | 1,737 | 1,690 | |||||
Net change in working capital | 414 | 146 | |||||
Net cash provided by operating activities | 47,750 | 47,789 | |||||
Cash flows from investing activities: | |||||||
Purchases of property and equipment | (668 | ) | (162 | ) | |||
Disposition of assets | 27,500 | 10,000 | |||||
Net cash provided by investing activities | 26,832 | 9,838 | |||||
Cash flows from financing activities: | |||||||
Payments of distributions | (18,839 | ) | (19,800 | ) | |||
Net payments on revolving credit facility | - | (5,100 | ) | ||||
Net payments on long-term debt | (40,000 | ) | (27,000 | ) | |||
Payments of loan fees | (581 | ) | (3,517 | ) | |||
Other | 5 | 7 | |||||
Net cash used in financing activities | (59,415 | ) | (55,410 | ) | |||
Net change in cash and cash equivalents | 15,167 | 2,217 | |||||
Cash and cash equivalents, beginning of period | 2,478 | 261 | |||||
Cash and cash equivalents, end of period | $ | 17,645 | $ | 2,478 | |||
RECONCILIATIONS TO NON-GAAP FINANCIAL MEASURES | |||||||||||||||
(unaudited, in thousands except ratios) | |||||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||
Net income | $ | 9,912 | $ | 10,288 | $ | 40,362 | $ | 41,147 | |||||||
Interest expense (1) | 1,272 | 2,331 | 7,392 | 8,513 | |||||||||||
Income tax expense (benefit) | (41 | ) | 46 | 188 | 212 | ||||||||||
Depreciation and amortization | 966 | 939 | 3,737 | 3,806 | |||||||||||
Transaction costs | - | 25 | 5 | 25 | |||||||||||
Unit-based compensation expense | 60 | 81 | 279 | 320 | |||||||||||
Proportional share of EBITDA adjustments of equity method investee (2) | 45 | 44 | 184 | 181 | |||||||||||
Adjusted EBITDA | 12,214 | 13,754 | 52,147 | 54,204 | |||||||||||
Interest paid or payable | (1,272 | ) | (2,331 | ) | (6,392 | ) | (8,513 | ) | |||||||
Income taxes paid or payable | 41 | (46 | ) | (188 | ) | (137 | ) | ||||||||
Maintenance capital expenditures | - | (65 | ) | (139 | ) | (181 | ) | ||||||||
Distributable cash flow (3) | $ | 10,983 | $ | 11,312 | $ | 45,428 | $ | 45,373 | |||||||
Distributions declared (4) | $ | 10,429 | $ | 2,841 | $ | 26,425 | $ | 11,361 | |||||||
Coverage ratio | 1.05x | 3.98x | 1.72x | 3.99x | |||||||||||
(1) Includes |
|||||||||||||||
(2) Represents the partnership's proportional share of depreciation and amortization of its equity method investee. | |||||||||||||||
(3) Distributable cash flow does not include adjustments for the principal payments on the term loan of |
|||||||||||||||
(4) Distributions declared for the applicable period and paid in the subsequent quarter. | |||||||||||||||
Green Plains Contacts
Investors:
Media:

Source: Green Plains Partners LP