Green Plains Partners Reports Second Quarter 2020 Financial Results
Results for the Second Quarter of 2020
- Net income of
$10.2 million , or$0.43 per common unit - Adjusted EBITDA of
$13.2 million and distributable cash flow of$11.3 million - Quarterly cash distribution of
$0.12 per unit - Distribution coverage ratio of 3.99x, LTM distribution coverage ratio of 1.59x
- Completed
$135 million debt financing
The partnership also reported adjusted EBITDA of
“Green Plains Partners continues to generate consistent and strong financial results and cash flows through long term minimum volume commitments and a stable logistics business,” said
Second Quarter 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
July 16, 2020 , 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 second quarter of 2020. The distribution is payable onAugust 7, 2020 , to unitholders of record at the close of business onJuly 31, 2020 .
Results of Operations
Consolidated revenues decreased
Operations and maintenance expenses increased
During the second quarter of 2020, our parent’s average biofuel production utilization rate decreased to approximately 53.5% of capacity, primarily due to lower margins driven by a significant reduction in motor fuel demand as a result of the COVID-19 pandemic. Biofuel throughput was 150.1 million gallons, compared with the contracted minimum volume commitment of 235.7 million gallons per quarter. As a result, the partnership charged
SELECTED OPERATING DATA | |||||||||||||||
(unaudited, in million gallons) | |||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||
2020 | 2019 | % Var. | 2020 | 2019 | % Var. | ||||||||||
Product volumes | |||||||||||||||
Storage and throughput services | 150.1 | 225.1 | (33.3 | ) | % | 391.7 | 380.8 | 2.9 | % | ||||||
Terminal services: | |||||||||||||||
Affiliate | 22.3 | 29.8 | (25.2 | ) | 54.8 | 54.6 | 0.4 | ||||||||
Non-affiliate | 24.1 | 27.2 | (11.4 | ) | 50.6 | 52.8 | (4.2 | ) | |||||||
46.4 | 57.0 | (18.6 | ) | 105.4 | 107.4 | (1.9 | ) | ||||||||
Railcar capacity billed (daily average) | 80.9 | 81.1 | (0.2 | ) | 79.8 | 82.3 | (3.0 | ) |
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 financings, unit-based compensation expense, net gains or losses on asset sales and the partnership’s proportional share of EBITDA adjustments of 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 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 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
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 | $ | 3,037 | $ | 261 | |||
Accounts receivable, including from affiliates | 16,860 | 16,651 | |||||
Other current assets | 1,286 | 517 | |||||
Total current assets | 21,183 | 17,429 | |||||
Property and equipment, net | 35,953 | 37,355 | |||||
Operating lease right-of-use assets | 33,897 | 35,456 | |||||
Other assets | 14,278 | 15,413 | |||||
Total assets | $ | 105,311 | $ | 105,653 | |||
LIABILITIES AND PARTNERS' DEFICIT | |||||||
Current liabilities | |||||||
Accounts payable, including to affiliates | $ | 5,690 | $ | 5,593 | |||
Operating lease current liabilities | 11,865 | 13,093 | |||||
Current maturities of long-term debt | 36,334 | 132,100 | |||||
Other current liabilities | 4,174 | 5,026 | |||||
Total current liabilities | 58,063 | 155,812 | |||||
Long-term debt | 90,576 | - | |||||
Operating lease long-term liabilities | 23,214 | 23,088 | |||||
Asset retirement obligations | 2,610 | 2,500 | |||||
Total liabilities | 174,463 | 181,400 | |||||
Partners' deficit | (69,152 | ) | (75,747 | ) | |||
Total liabilities and partners' deficit | $ | 105,311 | $ | 105,653 |
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||||||||||
(unaudited, in thousands except per unit amounts) | ||||||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||||||
2020 | 2019 | % Var. | 2020 | 2019 | % Var. | |||||||||||||||||||
Revenues | ||||||||||||||||||||||||
Affiliate | $ | 18,997 | $ | 19,133 | (0.7 | ) | % | $ | 37,980 | $ | 37,915 | 0.2 | % | |||||||||||
Non-affiliate | 1,384 | 1,692 | (18.2 | ) | 2,672 | 3,997 | (33.1 | ) | ||||||||||||||||
Total revenues | 20,381 | 20,825 | (2.1 | ) | 40,652 | 41,912 | (3.0 | ) | ||||||||||||||||
Operating expenses | ||||||||||||||||||||||||
Operations and maintenance (excluding depreciation and amortization reflected below) | 6,603 | 6,233 | 5.9 | 12,763 | 13,098 | (2.6 | ) | |||||||||||||||||
General and administrative | 878 | 988 | (11.1 | ) | 1,922 | 2,105 | (8.7 | ) | ||||||||||||||||
Depreciation and amortization | 966 | 771 | 25.3 | 1,927 | 1,756 | 9.7 | ||||||||||||||||||
Total operating expenses | 8,447 | 7,992 | 5.7 | 16,612 | 16,959 | (2.0 | ) | |||||||||||||||||
Operating income | 11,934 | 12,833 | (7.0 | ) | 24,040 | 24,953 | (3.7 | ) | ||||||||||||||||
Other income (expense) | ||||||||||||||||||||||||
Interest income | - | 20 | * | - | 40 | * | ||||||||||||||||||
Interest expense | (1,820 | ) | (2,166 | ) | (16.0 | ) | (3,684 | ) | (4,221 | ) | (12.7 | ) | ||||||||||||
Other | - | (73 | ) | * | - | (73 | ) | * | ||||||||||||||||
Total other expense | (1,820 | ) | (2,219 | ) | (18.0 | ) | (3,684 | ) | (4,254 | ) | (13.4 | ) | ||||||||||||
Income before income taxes and income from equity method investee | 10,114 | 10,614 | (4.7 | ) | 20,356 | 20,699 | (1.7 | ) | ||||||||||||||||
Income tax expense | (105 | ) | (47 | ) | 123.4 | (136 | ) | (99 | ) | 37.4 | ||||||||||||||
Income from equity method investee | 175 | 142 | 23.2 | 333 | 357 | (6.7 | ) | |||||||||||||||||
Net income | $ | 10,184 | $ | 10,709 | (4.9 | ) | % | $ | 20,553 | $ | 20,957 | (1.9 | ) | % | ||||||||||
Net income attributable to partners' ownership interests: | ||||||||||||||||||||||||
General partner | $ | 204 | $ | 213 | (4.2 | ) | % | $ | 411 | $ | 418 | (1.7 | ) | % | ||||||||||
Limited partners - common unitholders | 9,980 | 10,496 | (4.9 | ) | 20,142 | 20,539 | (1.9 | ) | ||||||||||||||||
Earnings per limited partner unit (basic and diluted): | ||||||||||||||||||||||||
Common units | $ | 0.43 | $ | 0.45 | (4.4 | ) | % | $ | 0.87 | $ | 0.89 | (2.2 | ) | % | ||||||||||
Weighted average limited partner units outstanding (basic and diluted): | ||||||||||||||||||||||||
Common units | 23,138 | 23,120 | 23,138 | 23,119 | ||||||||||||||||||||
Supplemental Revenues Data: | ||||||||||||||||||||||||
Storage and throughput services | $ | 11,785 | $ | 11,785 | - | % | $ | 23,570 | $ | 23,570 | - | % | ||||||||||||
Railcar transportation services | 5,374 | 5,505 | (2.4 | ) | 10,498 | 11,124 | (5.6 | ) | ||||||||||||||||
Terminal services | 2,132 | 2,413 | (11.6 | ) | 4,326 | 5,201 | (16.8 | ) | ||||||||||||||||
Trucking and other | 1,090 | 1,122 | (2.9 | ) | 2,258 | 2,017 | 11.9 | |||||||||||||||||
Total revenues | $ | 20,381 | $ | 20,825 | (2.1 | ) | % | $ | 40,652 | $ | 41,912 | (3.0 | ) | % | ||||||||||
* Percentage variance not considered meaningful. |
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS | |||||||
(unaudited, in thousands) | |||||||
Six Months Ended | |||||||
2020 | 2019 | ||||||
Cash flows from operating activities: | |||||||
Net income | $ | 20,553 | $ | 20,957 | |||
Noncash operating adjustments: | |||||||
Depreciation and amortization | 1,927 | 1,756 | |||||
Distribution from equity method investee | 1,000 | - | |||||
Other | 589 | 265 | |||||
Net change in working capital | (1,825 | ) | 978 | ||||
Net cash provided by operating activities | 22,244 | 23,956 | |||||
Cash flows from investing activities: | |||||||
Purchases of property and equipment, net | (54 | ) | 82 | ||||
Net cash provided by (used in) investing activities | (54 | ) | 82 | ||||
Cash flows from financing activities: | |||||||
Payments of distributions | (14,116 | ) | (22,538 | ) | |||
Net payments on credit facility | (2,100 | ) | (1,800 | ) | |||
Payments of loan fees | (3,198 | ) | - | ||||
Net cash used in financing activities | (19,414 | ) | (24,338 | ) | |||
Net change in cash and cash equivalents | 2,776 | (300 | ) | ||||
Cash and cash equivalents, beginning of period | 261 | 569 | |||||
Cash and cash equivalents, end of period | $ | 3,037 | $ | 269 |
RECONCILIATIONS TO NON-GAAP FINANCIAL MEASURES | |||||||||||||||||||
(unaudited, in thousands except ratios) | |||||||||||||||||||
Three Months Ended | Six Months Ended | LTM Ended | |||||||||||||||||
2020 | 2019 | 2020 | 2019 | 2020 | |||||||||||||||
Net income | $ | 10,184 | $ | 10,709 | $ | 20,553 | $ | 20,957 | $ | 41,075 | |||||||||
Interest expense | 1,820 | 2,166 | 3,684 | 4,221 | 7,773 | ||||||||||||||
Income tax expense | 105 | 47 | 136 | 99 | 257 | ||||||||||||||
Depreciation and amortization | 966 | 771 | 1,927 | 1,756 | 3,612 | ||||||||||||||
Unit-based compensation expense | 79 | 79 | 158 | 158 | 319 | ||||||||||||||
Loss (gain) on the disposal of assets | - | 73 | - | 73 | (87 | ) | |||||||||||||
Proportional share of EBITDA adjustments of equity method investee (1) | 44 | 43 | 94 | 109 | 181 | ||||||||||||||
Adjusted EBITDA | 13,198 | 13,888 | 26,552 | 27,373 | 53,130 | ||||||||||||||
Interest paid or payable | (1,820 | ) | (2,166 | ) | (3,684 | ) | (4,221 | ) | (7,773 | ) | |||||||||
Income taxes paid or payable | (30 | ) | (43 | ) | (61 | ) | (96 | ) | (203 | ) | |||||||||
Maintenance capital expenditures | (32 | ) | - | (54 | ) | - | (148 | ) | |||||||||||
Distributable cash flow | $ | 11,316 | $ | 11,679 | $ | 22,753 | $ | 23,056 | $ | 45,006 | |||||||||
Distributions declared (2) | $ | 2,836 | $ | 11,280 | $ | 5,672 | $ | 22,549 | $ | 28,232 | |||||||||
Coverage ratio | 3.99x | 1.04x | 4.01x | 1.02x | 1.59x | ||||||||||||||
(1) Represents the partnership's proportional share of depreciation and amortization of its equity method investee. | |||||||||||||||||||
(2) Represents distributions declared for the applicable period and paid in the subsequent quarter. | |||||||||||||||||||
Investors:
Media:
Source: Green Plains Partners LP