World News: 12:30 GMT Monday 11th February 2019. [Green Plains Inc. via Globe Newswire via SPi World News]
OMAHA, Neb., Feb. 11, 2019 (GLOBE NEWSWIRE) -- Green Plains Inc. (NASDAQ:GPRE) today announced financial results for the fourth quarter of 2018. Net income attributable to the company was $53.5 million, or $1.13 per diluted share, for the fourth quarter of 2018 compared to net income of $46.6 million, or $0.99 per diluted share, for the same period in 2017. Revenues were $827.5 million for the fourth quarter of 2018 compared with $921.0 million for the same period last year. Net income during the quarter was impacted by the gain on the sale of certain assets of $150.4 million, offset by $13.2 million of deferred debt issuance costs written off as a result of the term loan B pay-off, and $3.4 million of severance expense, yielding a $133.8 million positive benefit before tax.
Revenues attributable to the company were $3.9 billion for the year ended 2018, compared with $3.6 billion for the same period in 2017. Net income attributable to the company for the year ended 2018, was $15.9 million, or $0.39 per diluted share, compared with net income of $61.1 million, or $1.47 per diluted share, for the same period in 2017.
“Our cash position and balance sheet remain solid even as the ethanol industry margin environment has been under pressure for an extended period of time,” stated Todd Becker, president and chief executive officer. “We executed on each component of the portfolio optimization plan during the quarter by proving value of our assets through the sale of certain ethanol plants and the vinegar business as well as paying off our term loan B which achieved the milestone of having no direct encumbered ethanol assets for the first time in the company’s history. We also achieved a nearly $19 million forward run-rate reduction in annualized controllable expenses, we executed a small share repurchase and continued construction on our first high-protein technology project in Shenandoah. We continue to carry out the portfolio optimization plan, as we look to divest additional assets and focus on capital allocation in the future.”
“We remain confident that E15 will be implemented by the Administration for the upcoming summer driving season and exports could get a boost from the U.S. and China resolving the trade issue between the two countries,” commented Becker. “The ethanol industry needs demand growth, and both of these initiatives could reduce inventories allowing for a return to a better margin structure for the industry over the next several months. In addition, we are encouraged by the recently reported reduction of industry run rates and inventory levels not much above last year. We believe that lower overall retail gasoline prices have kept demand for our products high. Finally, we believe the addition of high-protein feed co-products over the next several years will transform our company by improving profitability,” Becker added.
Green Plains produced 205.1 million gallons of ethanol during the fourth quarter of 2018, compared with 340.8 million gallons for the same period in 2017. The consolidated ethanol crush margin was $(16.8) million, or $(0.08) per gallon, for the fourth quarter of 2018, compared with $26.8 million, or $0.08 per gallon, for the same period in 2017. The consolidated ethanol crush margin is the ethanol production segment’s operating income before depreciation and amortization, which includes corn oil, plus intercompany storage, transportation and other fees, net of related expenses.
Consolidated revenues decreased $93.5 million for the fourth quarter of 2018, compared with the same period in 2017, as a result of the divestiture of the three ethanol plants and a decrease in ethanol production.
Operating income increased $99.8 million and earnings before interest, income taxes, depreciation and amortization (EBITDA) increased $91.6 million for the fourth quarter of 2018 compared with the same period last year primarily due to the $150.4 million gain on the sale of assets during the fourth quarter. Interest expense increased $13.1 million for the fourth quarter of 2018, compared with the same period in 2017, primarily due to the $13.2 million write-off of deferred debt issuance costs related to repayment of the $500 million senior secured term loan due 2023. Income tax expense was $14.7 million for the fourth quarter of 2018 due to the company’s realized gain on the sale of assets mentioned above, versus a $63.9 million benefit for the same period in 2017 driven by the recognition of a revaluation of deferred tax liabilities.
To supplement our condensed consolidated statements of operations presented in accordance with GAAP, the company has provided non-GAAP adjusted financial measures of operating results that excludes certain items. Basic and diluted earnings per share attributable to Green Plains are presented in the Reconciliation to Non-GAAP Adjusted Financial Measures as reported on a GAAP and non-GAAP basis related to the impact of the expenses for refinancing and expanding the company's term loan and net R&D tax credits related to qualifying activities and tax reform credits during fiscal year 2017. Management believes including these additional measures may enhance the investor's overall understanding of the company's ongoing operations. These measures should not be considered alternatives to net income or segment operating income, which are determined in accordance with GAAP.
Globe Newswire: 12:30 GMT Monday 11th February 2019
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