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Green Plains Partners Reports Second Quarter 2022 Financial Results

Results for the Second Quarter of 2022

  • Net income of $10.5 million, or $0.44 per common unit
  • Adjusted EBITDA of $12.9 million and distributable cash flow of $11.3 million
  • Quarterly cash distribution increased to $0.45 per unit
  • Distribution coverage ratio of 1.06x; LTM distribution coverage ratio of 1.07x
  • Leverage ratio, net of cash; 0.82x Adjusted EBITDA

OMAHA, Neb., Aug. 02, 2022 (GLOBE NEWSWIRE) -- Green Plains Partners LP (NASDAQ:GPP) today announced financial and operating results for the second quarter of 2022. Net income attributable to the partnership was $10.5 million, or $0.44 per common unit, for the second quarter of 2022, compared with net income of $10.3 million, or $0.44 per common unit, for the same period in 2021.

The partnership also reported adjusted EBITDA of $12.9 million and distributable cash flow of $11.3 million for the second quarter of 2022, compared with adjusted EBITDA of $12.7 million and distributable cash flow of $11.2 million for the same period in 2021. Distribution coverage was 1.06x for the three months ended June 30, 2022.

“Green Plains Partners continues to achieve consistent returns,” said Todd Becker, President and Chief Executive Officer. “We believe Green Plains’ ability to achieve higher throughput rates, as demonstrated in the second quarter, should benefit the partnership in future periods. As a result of consistent operations and low leverage, we felt confident in increasing the quarterly distribution for the fourth consecutive quarter.”

Second Quarter Highlights and Recent Developments

  • On July 21, 2022, the board of directors of the partnership’s general partner increased the quarterly cash distribution to $0.45 per unit, or approximately $10.7 million, for the second quarter of 2022. The distribution is payable on August 12, 2022, to unitholders of record at the close of business on August 5, 2022.

Results of Operations
Consolidated revenues for the three months ended June 30, 2022 were comparable with the same period for 2021. Operations and maintenance expenses decreased $0.1 million for the three months ended June 30, 2022, compared with the same period for 2021.

During the second quarter of 2022, Green Plains Inc.’s average production utilization rate was approximately 96.9% of capacity. Ethanol throughput was 232.5 million gallons, which exceeded the contracted minimum volume commitment. As a result, a prior period deficiency credit of $0.8 million was utilized toward the excess volume. Prior year credits of $0.6 million expired unused, leaving a cumulative balance of minimum volume deficiency credits available to Green Plains Trade as of June 30, 2022 of $3.8 million. If these credits are unused by Green Plains Trade, $1.9 million will expire on September 30, 2022, $0.8 million will expire on December 31, 2022, and $1.1 million will expire on March 31, 2023. These credits have been recognized in revenue by the partnership, and as such, future volumes throughput by Green Plains Trade in excess of the quarterly minimum volume commitment, up to the amount of these credits, will not be recognized in revenue in future periods prior to expiration.


GREEN PLAINS PARTNERS LP
SELECTED OPERATING DATA
(unaudited, in million gallons)

  Three Months Ended
June 30,
  Six Months Ended
June 30,
    2022       2021       % Var.       2022       2021       % Var.  
Product volumes (mmg)                                      
Storage and throughput services   232.5       191.8       21.2 %     429.7       370.8       15.9 %
                                       
Terminal services:                                      
Affiliate   27.7       21.6       28.2       55.0       40.0       37.5  
Non-affiliate   23.7       27.1       (12.5 )     45.2       51.5       (12.2 )
    51.4       48.7       5.5       100.2       91.5       9.5  
                                       
Railcar capacity billed (daily avg.)   74.5       69.4       7.3       72.1       71.2       1.3  


Liquidity and Capital Resources
Total liquidity as of June 30, 2022 consisted of $16.5 million in cash and cash equivalents. Total debt outstanding was $58.5 million, net of debt issuance costs of $0.5 million.

Conference Call Information
On August 2, 2022, Green Plains Partners LP and Green Plains Inc. will host a joint conference call at 11 a.m. Eastern time (10 a.m. Central time) to discuss second quarter 2022 financial and operating results for each company. To participate in the live call, please pre-register here. All registrants will receive dial-in information and a unique PIN. The company advises participants 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 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 U.S. 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 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 leading biorefining company focused on the development and utilization of fermentation, agricultural and biological technologies in the processing of annually renewable crops into sustainable value-added ingredients. This includes the production of cleaner low carbon biofuels, renewable feedstocks for advanced biofuels and high purity alcohols for use in cleaners and disinfectants. Green Plains is an innovative producer of ultra-high protein and novel ingredients for animal and aquaculture diets to help satisfy a growing global appetite for sustainable protein. The Company also owns a 48.9% limited partner interest and a 2.0% general partner interest in Green Plains Partners LP. For more information, 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)

  June 30,
2022
  December 31,
2021
  (unaudited)    
ASSETS      
Current assets      
Cash and cash equivalents $ 16,527     $ 17,645  
Accounts receivable, including from affiliates   16,475       14,555  
Other current assets   1,216       845  
Total current assets   34,218       33,045  
Property and equipment, net   27,686       28,773  
Operating lease right-of-use assets   40,145       38,863  
Other assets   14,162       13,791  
Total assets $ 116,211     $ 114,472  
       
LIABILITIES AND PARTNERS' EQUITY      
Current liabilities      
Accounts payable, including to affiliates $ 6,549     $ 4,954  
Operating lease current liabilities   12,330       12,108  
Other current liabilities   5,162       5,420  
Total current liabilities   24,041       22,482  
Long-term debt   58,502       59,467  
Asset retirement obligations   2,237       2,658  
Operating lease long-term liabilities   29,116       27,562  
Total liabilities   113,896       112,169  
       
Partners' equity   2,315       2,303  
Total liabilities and partners' equity $ 116,211     $ 114,472  



GREEN PLAINS PARTNERS LP
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited, in thousands except per unit amounts)

  Three Months Ended
June 30,
  Six Months Ended
June 30,
    2022       2021       % Var.       2022       2021       % Var.  
Revenues                      
Affiliate $ 18,742     $ 18,531       1.1 %   $ 36,837     $ 37,840       (2.7) %
Non-affiliate   912       1,170       (22.1 )     1,917       2,267       (15.4 )
Total revenues   19,654       19,701       (0.2 )     38,754       40,107       (3.4 )
Operating expenses                      
Operations and maintenance (excluding depreciation and amortization reflected below)   6,160       6,238       (1.3 )     11,725       11,992       (2.2 )
General and administrative   925       1,059       (12.7 )     2,110       2,260       (6.6 )
Depreciation and amortization   823       795       3.5       1,721       1,682       2.3  
Total operating expenses   7,908       8,092       (2.3 )     15,556       15,934       (2.4 )
Operating income   11,746       11,609       1.2       23,198       24,173       (4.0 )
Interest expense   (1,384 )     (1,411 )     (1.9 )     (2,623 )     (3,339 )     (21.4 )
Income before income taxes and income from equity method investee   10,362       10,198       1.6       20,575       20,834       (1.2 )
Income tax expense   (39 )     (68 )     (42.6 )     (77 )     (152 )     (49.3 )
Income from equity method investee   196       168       16.7       371       343       8.2  
Net income $ 10,519     $ 10,298       2.1 %   $ 20,869     $ 21,025       (0.7 )%
                       
Net income attributable to partners' ownership interests:                      
General partner $ 210     $ 206       1.9 %   $ 417     $ 421       (1.0 )%
Limited partners - common unitholders   10,309       10,092       2.2       20,452       20,604       (0.7 )
                       
Earnings per limited partner unit (basic and diluted):                      
Common units $ 0.44     $ 0.44       %   $ 0.88     $ 0.89       (1.1 )%
                       
Weighted average limited partner units outstanding (basic and diluted):                      
Common units   23,208       23,161           23,208       23,161      
                       
Supplemental Revenues Data:                      
Storage and throughput services $ 11,570     $ 11,564       0.1 %   $ 23,128     $ 23,825       (2.9 )%
Railcar transportation services   5,119       4,795       6.8       9,771       9,837       (0.7 )
Terminal services   2,036       2,218       (8.2 )     4,120       4,260       (3.3 )
Trucking and other   929       1,124       (17.3 )     1,735       2,185       (20.6 )
Total revenues $ 19,654     $ 19,701       (0.2 )%   $ 38,754     $ 40,107       (3.4 )%



GREEN PLAINS PARTNERS LP
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(unaudited, in thousands)

  Six Months Ended
June 30,
    2022       2021  
Cash flows from operating activities      
Net income $ 20,869     $ 21,025  
Noncash operating adjustments      
Depreciation and amortization   1,721       1,682  
Other   (53 )     1,075  
Net change in working capital   (1,343 )     379  
Net cash provided by operating activities   21,194       24,161  
       
Cash flows from investing activities      
Purchases of property and equipment   (305 )     (291 )
Disposition of assets         27,500  
Net cash provided by (used in) investing activities   (305 )     27,209  
       
Cash flows from financing activities      
Payments of distributions   (20,976 )     (5,684 )
Net payments on long-term debt   (1,031 )     (46,834 )
Net cash used in financing activities   (22,007 )     (52,518 )
       
Net change in cash and cash equivalents   (1,118 )     (1,148 )
Cash and cash equivalents, beginning of period   17,645       2,478  
Cash and cash equivalents, end of period $ 16,527     $ 1,330  



GREEN PLAINS PARTNERS LP
RECONCILIATIONS TO NON-GAAP FINANCIAL MEASURES
(unaudited, in thousands except ratios)

  Three Months Ended
June 30,
  Six Months Ended
June 30,
  LTM Ended
June 30,
    2022       2021       2022       2021       2022  
Net income $ 10,519     $ 10,298     $ 20,869     $ 21,025     $ 40,206  
Interest expense(1)   1,384       1,411       2,623       3,339       6,676  
Income tax expense   39       68       77       152       113  
Depreciation and amortization   823       795       1,721       1,682       3,776  
Transaction costs                     5        
Unit-based compensation expense   60       80       119       159       239  
Proportional share of EBITDA adjustments of equity method investee(2)   45       50       90       94       180  
Adjusted EBITDA   12,870       12,702       25,499       26,456       51,190  
Interest paid or payable   (1,384 )     (1,411 )     (2,623 )     (3,339 )     (5,676 )
Income taxes paid or payable   (39 )     (68 )     (77 )     (152 )     (113 )
Maintenance capital expenditures   (126 )           (258 )     (2 )     (395 )
Distributable cash flow(3) $ 11,321     $ 11,223     $ 22,541     $ 22,963     $ 45,006  
Distributions declared(4) $ 10,666     $ 2,844     $ 21,213     $ 5,686     $ 41,952  
Coverage ratio   1.06x       3.95x       1.06x       4.04x       1.07x  
                   
Long-term debt                 $ 58,502  
Less: Cash and cash equivalents                   16,527  
Long-term debt, net of cash and cash equivalents                 $ 41,975  
Adjusted EBITDA                 $ 51,190  
Leverage ratio                   0.82x  

(1) Interest expense for the last twelve months ended June 30, 2022 includes $1.0 million unamortized debt issuance costs written off upon extinguishment of debt.
(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 $1.0 million for the six months ended June 30, 2022 and $4.2 million for the last twelve months ended June 30, 2022. Distributable cash flow does not include adjustments for the principal payments on the term loan of $9.3 million, of which $0.5 million relates to the Ord disposition, for the three months ended June 30, 2021, and $46.8 million, of which $27.5 million relates to the Ord disposition, for the six months ended June 30, 2021.
(4) Represents distributions declared for the applicable period and paid in the subsequent quarter.

Green Plains Contacts
Investors: Phil Boggs | Executive Vice President, Investor Relations | 402.884.8700 | phil.boggs@gpreinc.com
Media: Lisa Gibson | Communications Manager | 402.952.4971 | lisa.gibson@gpreinc.com

 


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Source: Green Plains Partners LP