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Green Plains Renewable Energy, Inc. Announces Fourth Quarter 2007 Financial Results
(Market Wire Via Thomson Dialog NewsEdge) OMAHA, NE, February 13 / MARKET WIRE/ --
Green Plains Renewable Energy, Inc. (NASDAQ: GPRE) (AMEX: GPRE) today announced its financial results for the fourth
quarter of fiscal year 2007. The fourth quarter, ending on November 30,
2007, was Green Plains' first quarter of operations at its Shenandoah,
Iowa, ethanol plant. The Company reported a consolidated quarterly net
loss of $1.8 million, or a net loss of $0.29 per share. Additional
financial and operating information is contained in Green Plains' Form 10-K
filed with the Securities and Exchange Commission today.
"The fourth quarter was Green Plains' first full quarter of ethanol
production. While Green Plains is still absorbing significant start-up and
construction costs, we have quickly evolved from a development stage
enterprise into a fully-operational company," said Wayne B. Hoovestol,
Chief Executive Officer. "Once construction of our second ethanol plant is
finished and the Great Lakes merger closes, our revenues are expected to
grow to significantly greater levels."
Recent Business Highlights
"The start-up of ethanol production at our Shenandoah plant represented a
significant milestone in our brief history," said Hoovestol. "That stands
out among many recent important achievements. We continue to make
significant progress in completion of construction of our second ethanol
plant at Superior, Iowa, and we are preparing to close our pending merger
with Great Lakes Cooperative."
Green Plains' significant recent accomplishments include:
-- In late August, Green Plains' first ethanol plant in Shenandoah, Iowa,
commenced operations. Initial production started in the final days of the
third quarter with the plant reaching name-plate production levels within
two weeks.
-- In September, Green Plains acquired Essex Elevator, Inc. With grain
storage capacity of 2.8 million bushels, located within six miles of the
Shenandoah plant, the elevator has been instrumental in corn procurement
for ethanol production.
-- In November, Green Plains completed a private placement of 1.2 million
shares of common stock to nine accredited investors at a price of $8.10 per
share, resulting in net proceeds of approximately $9.7 million. The
proceeds are being used for working capital and other general corporate
purposes.
-- On February 4, 2008, the members of Great Lakes Cooperative approved
the proposed merger with Green Plains. Great Lakes is a full-service
agricultural cooperative with seven sites and facilities located in close
proximity to Green Plains' ethanol plant in Superior, Iowa. The merger is
expected to close in March, at which time Great Lakes will become a wholly-
owned subsidiary of Green Plains.
-- Construction of the Superior ethanol plant is nearing completion, with
staffing and training activities currently underway. The plant is expected
to begin operations in the spring of 2008.
"The acquisition of Essex Elevator in the fourth quarter was the first step
in Green Plains' vertical integration strategy," continued Hoovestol. "The
merger with Great Lakes represents a significant further commitment to that
strategy. In a commodity-driven business, this strategy gives Green Plains
an advantage in increasing efficiency and managing commodity price and
supply risk."
Fourth Quarter 2007 Financial Results
-------------------------------------
Three Months Ended Year Ended
November 30 November 30
------------------------ ------------------------
2007 2006 2007 2006
----------- ----------- ----------- -----------
Statement of Operations
Data:
Revenues:
Ethanol $18,088,695 $ - $18,088,695 $ -
Distillers grains 4,262,349 - 4,271,652 -
Grain merchandising
and storage 1,842,044 - 1,842,044 -
----------- ----------- ----------- -----------
Total revenues 24,193,088 - 24,202,391 -
Cost of goods sold 23,022,203 - 23,042,844 -
----------- ----------- ----------- -----------
Gross profit (loss) 1,170,885 - 1,159,547 -
Operating expenses 2,792,074 973,464 8,943,202 2,150,986
----------- ----------- ----------- -----------
Operating income (loss) (1,621,189) (973,464) (7,783,655) (2,150,986)
Other income (expense) (225,002) 2,139,209 350,694 3,395,106
----------- ----------- ----------- -----------
Income (loss) before
income taxes (1,846,191) 1,165,745 (7,432,961) 1,244,120
Income tax provision
(benefit) - 326,000 (294,489) 326,000
----------- ----------- ----------- -----------
Net income (loss) $(1,846,191) $ 839,745 $(7,138,472) $ 918,120
=========== =========== =========== ===========
Basic earnings per
share $ (0.29) $ 0.14 $ (1.18) $ 0.19
=========== =========== =========== ===========
Diluted earnings per
share $ (0.29) $ 0.14 $ (1.18) $ 0.19
=========== =========== =========== ===========
Operating and Other Data:
Ethanol sold (gallons) 11,046,000 - 11,046,000 -
Average net price of
ethanol sold ($ per
gallon) $ 1.64 $ - $ 1.64 $ -
Average corn cost
($ per bushel) $ 3.56 $ - $ 3.56 $ -
Average net price for
distillers grains
($ per equivalent
dried ton) $ 122 $ - $ 122 $ -
Green Plains' fourth quarter total revenues were $24.2 million. Total
revenues include $18.1 million from the sale of our core product, ethanol,
$4.3 million from the sale of distillers grains, a by-product of ethanol
production, and $1.8 million in grain merchandising and storage fees.
During the fourth quarter, Green Plains sold 11,046,000 gallons of ethanol.
The Shenandoah plant operated at approximately 92% of name-plate capacity
for the fourth quarter. The plant is generally expected to operate at or
above name-plate capacity.
Cost of goods sold were $23.0 million of which approximately 69% was corn
consumed in ethanol production. Green Plains' average cost of corn, net of
hedging gains, was $3.56 per bushel. At November 30, 2007, approximately
49% of Green Plains' estimated 33.0 million bushels of corn usage for the
next 12 months was subject to fixed-price contracts, at a weighted average
price of approximately $3.75 per bushel. This includes fixed-price
future-delivery contracts for approximately 11.3 million bushels.
"Green Plains' competitive strength is in controlling commodity risk,"
stated Jerry L. Peters, Chief Financial Officer. "From inception, we
recognized that an ethanol producer must have access to affordable corn.
The entire business model is designed to manage commodity price and supply
risk. In the fourth quarter, we aggressively hedged corn prices for the
coming year through fixed-price contracts and derivative positions."
After operating expenses and other expenses, Green Plains had a net loss of
$1.8 million, or a net loss of $0.29 per share, for the fourth quarter.
The fourth quarter net loss included approximately $400,000 of operating
expenses incurred by construction of the Superior plant. For the fiscal
year, Green Plains had a net loss of approximately $7.1 million, or a net
loss of $1.18 per share.
"Green Plains closed the quarter with strong production data and feedstock
figures that support our vertical integration strategy," continued
Hoovestol. "Short-term losses are unavoidable in a start-up business.
However, we remain focused on building long-term shareholder value as the
vertically-integrated low cost ethanol producer."
At the close of the fourth quarter, Green Plains had approximately $11.9
million in cash and equivalents, total assets of approximately $180.2
million and total liabilities of approximately $88.2 million.
About Green Plains Renewable Energy, Inc.
Ethanol, which Green Plains produces from corn, is a high-octane fuel that
is blended with gasoline to provide superior engine performance as well as
help to reduce harmful tailpipe and greenhouse gas emissions that
contribute to global warming. Ethanol has also become a prime source of
value-added income for American farmers.
Green Plains has an operating 50 million gallon ethanol plant in
Shenandoah, Iowa and is currently building a second 50 million gallon
ethanol facility in Superior, Iowa. The Superior plant is anticipated to
begin production in spring 2008. Green Plains has entered into an agreement
and plan of merger with Great Lakes Cooperative, with a closing that is
subject to various conditions and contingencies.
About Great Lakes Cooperative
Great Lakes is a full-service cooperative with approximately $146 million
in 2007 revenues that specializes in grain, agronomy, feed and petroleum
products in northwestern Iowa and southwestern Minnesota. Great Lakes has
locations in Everly, Greenville, Gruver, Langdon, Milford, Spencer and
Superior, Iowa. Great Lakes' voting members approved a resolution to merge
with Green Plains on February 4, 2008.
This news release contains forward-looking statements within the meaning of
the Securities Act of 1933 and the Securities Exchange Act of 1934, as
amended. Such statements are identified by the use of words such as
"anticipate," "estimate," "expect," "project," "intend," "plan," "believe,"
and other words and terms of similar meaning in connection with any
discussion of future operating or financial performance. Such statements
are based on management's current expectations and are subject to various
factors, risks and uncertainties that may cause actual results, outcome of
events, timing and performance to differ materially from those expressed or
implied by such forward-looking statements. Green Plains may experience
significant fluctuations in future operating results due to a number of
economic conditions, including, but not limited to, competition in the
ethanol industry, risks associated with plant construction and technology
development, and other risk factors detailed in Green Plains' SEC filings.
Additional information with respect to these and other factors, which could
materially affect Green Plains and its operations, are included on certain
forms Green Plains has filed with the SEC. Green Plains assumes no
obligation to update any forward-looking statements, whether as a result of
new information, future events or otherwise.
Company Contact:
Scott B. Poor
Corporate Counsel / Director of Investor Relations
Green Plains Renewable Energy, Inc.
(402) 884-8700www.gpreinc.com
Investor Contact:
John Baldissera
BPC Financial Marketing
(800) 368-1217
Copyright ? 2008 Market Wire, Incorporated
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