GPP
$5.50
Green Plains Partners LP
Earnings Details
Quarter December 2019
Monday, February 10, 2020 5:01:00 PM
Tweet Share Watch
Summary

Green Plains Partners LP (GPP) Recent Earnings

Green Plains Partners LP (GPP) reported Quarter December 2019 earnings of $0.44 per share on revenue of $20.3 million. The consensus earnings estimate was $0.45 per share on revenue of $21.1 million. Revenue fell 12.6% compared to the same quarter a year ago.

Results
Reported Earnings
$0.44
Earnings Whisper
-
Consensus Estimate
$0.45
Reported Revenue
$20.3 Mil
Revenue Estimate
$21.1 Mil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Green Plains Partners Reports Fourth Quarter and Full Year 2019 Financial Results

Results for the Fourth Quarter of 2019

  • Net income of $10.4 million, or $0.44 per common unit
  • Adjusted EBITDA of $13.3 million and distributable cash flow of $11.2 million
  • Quarterly cash distribution of $0.475 per unit
  • Distribution coverage ratio of 0.99x; LTM distribution coverage ratio of 1.00x

OMAHA, Neb., Feb. 10, 2020 (GLOBE NEWSWIRE) -- Green Plains Partners LP (NASDAQ:GPP) today announced financial and operating results for the fourth quarter of 2019. Net income was $10.4 million, or $0.44 per common unit, for the fourth quarter of 2019 compared with $14.1 million, or $0.51 per common unit, for the same period in 2018. The partnership reported adjusted EBITDA of $13.3 million and distributable cash flow of $11.2 million for the fourth quarter of 2019, compared with adjusted EBITDA of $15.2 million and distributable cash flow of $13.1 million for the same period in 2018. Distribution coverage was 0.99x and 1.00x, respectively, for the three months and trailing twelve months ended December 31, 2019. Differences in the comparative results of fourth quarter 2019 and fourth quarter of 2018 were mainly driven by our parent’s sale of three ethanol plants in the fourth quarter of 2018.

“Green Plains Partners continues to provide consistent performance for its unitholders with a distribution coverage ratio of 1.00x for 2019,” said Todd Becker, president and chief executive officer of Green Plains Partners. “We anticipate higher throughput rates in 2020 due to the continued rollout of the Project 24 initiatives at our parent. As one of the only master limited partnerships with a significant renewables presence, we are in a unique position to benefit from increased throughput as a result of domestic E15 blending and the resumption of international trade through the resolution of recent trade disputes. We continue to return substantial value for our unitholders through consistent cash flow generation supported by long-term contracted volume commitments, a strong yield and low leverage ratio of less than 2.5x.”

Fourth Quarter Highlights and Recent Developments

  • On December 31, 2019, Green Plains Partners executed certain provisions under the Birmingham BioEnergy Partners LLC promissory note, whereby the existing $8.1 million promissory note was assigned to BlendStar LLC and the note payable and note receivable between the two entities were forgiven.
     
  • On January 16, 2020, the board of directors of the partnership’s general partner declared a quarterly cash distribution of $0.475 per unit, or approximately $11.3 million, for the fourth quarter of 2019. The distribution is payable on February 7, 2020, to unitholders of record at the close of business on January 31, 2020.

Results of Operations
Consolidated revenues decreased $2.9 million for the three months ended December 31, 2019, compared with the same period for 2018. Storage and throughput revenue decreased $1.5 million primarily due to a decrease in throughput volumes as a result of our parent’s sale of three ethanol plants in the fourth quarter of 2018. Rail transportation services revenue decreased $1.1 million primarily due to the reduction in volumetric capacity provided as a result of the assignment of railcar operating leases to Valero in the fourth quarter of 2018. Terminal services revenue decreased $0.2 million as a result of reduced throughput at our fuel terminals. Trucking and other revenue decreased $0.1 million primarily due to a reduction in volumes transported for Green Plains Trade.

Operations and maintenance expenses decreased $0.9 million for the three months ended December 31, 2019 compared with the same period for 2018, primarily due to lower railcar lease expense as a result of the assignment of railcar leases to Valero in the fourth quarter of 2018, as well as a decrease in property taxes and expenses allocated by our parent under the secondment agreement.

General and administrative expenses decreased $0.6 million for the three months ended December 31, 2019 compared with the same period for 2018, primarily due to a decrease in accounting and professional fees.

Our parent’s operating strategy, including the operating cost savings initiative, is to increase utilization rates and efficiency while reducing operating expenses to achieve improved margins in the current environment. Capacity utilization increased from an average of 84.2% of capacity in the third quarter to 84.5% of capacity in the fourth quarter. Ethanol production was 239.1 mmg for the fourth quarter of 2019, compared with the contracted minimum volume commitment of 235.7 mmg per quarter. As a result, Green Plains Trade received a credit of $0.2 million, which was applied to the $2.9 million volume deficiency credit related to the three months ended December 31, 2018. The remaining balance of this credit of $2.7 million expired as of December 31, 2019. The cumulative minimum volume deficiency credits available to Green Plains Trade as of December 31, 2019 totaled $4.5 million. The partnership has previously recognized these deficiency credits as revenue, and as such, future volumes throughput by Green Plains Trade in excess of the minimum volume commitment, up to the amount of these credits, will not be recognized in revenue in future periods.

               
  

 

 

 

 

GREEN PLAINS PARTNERS LP
 SELECTED OPERATING DATA
 (unaudited, in million gallons)
               
 Three Months Ended  Twelve Months Ended
 December 31,  December 31,
 2019 2018 % Var.  2019 2018 % Var.
Product volumes              
Storage and throughput services 240.1  208.0  15.4 %   859.8  1,134.7  (24.2)%
               
Terminal services:              
Affiliate 28.5  32.4  (12.0)    114.9  133.7  (14.1) 
Non-affiliate 26.9  25.5  5.5     106.0  116.2  (8.8) 
  55.4  57.9  (4.3)    220.9  249.9  (11.6) 
               
Railcar capacity billed (daily average) 77.7  91.8  (15.4)    79.8  96.9  (17.6) 

Liquidity and Capital Resources
Total liquidity as of December 31, 2019, was $68.2 million, including $0.3 million in cash and cash equivalents, and $67.9 million available under the partnership’s revolving credit facility. The balance outstanding on the partnership’s revolving credit facility, which matures on July 1, 2020, was $132.1 million as of December 31, 2019.

Conference Call Information
Green Plains Partners LP and Green Plains Inc. will host a joint conference call Tuesday, Feb. 11th at 11 a.m. Eastern time (10 a.m. Central time), to discuss fourth quarter 2019 financial and operating results for each company. Domestic and international participants can access the conference call by dialing 877.711.2374 and 281.542.4862, respectively, and referencing conference ID 6099835. Participants are advised 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 financings, unit-based compensation expense, net gains or losses on asset sales and the partnership’s proportional share of EBITDA adjustments of its 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 its equity method investee. 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 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 diversified commodity-processing business with operations that include corn processing, grain handling and storage and commodity marketing and logistics services. The company is one of the leading corn processors in the world and, through its adjacent businesses, is focused on the production of sustainable biofuels and sustainable high-protein and novel feed ingredients. Green Plains owns a 50% interest in Green Plains Cattle Company LLC and owns a 49.0% limited partner interest and a 2.0% general partner interest in Green Plains Partners. For more information about Green Plains, 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)
      
 December 31, December 31,
 2019
 2018 
ASSETS(unaudited)   
Current assets     
Cash and cash equivalents$ 261  $ 569 
Accounts receivable, including from affiliates  16,651    15,357 
Other current assets  517    690 
Total current assets  17,429    16,616 
Property and equipment, net  37,355    40,911 
Operating lease right-of-use assets  35,456    - 
Other assets  15,413    23,617 
Total assets$105,653  $81,144 
      
LIABILITIES AND PARTNERS' DEFICIT     
Current liabilities     
Accounts payable, including to affiliates$ 5,593  $ 3,177 
Operating lease current liabilities  13,093    - 
Current maturities of long-term debt  132,100    - 
Other current liabilities  5,026    5,011 
Total current liabilities  155,812    8,188 
Long-term debt  -    142,025 
Operating lease long-term liabilities  23,088    - 
Other liabilities  2,500    3,385 
Total liabilities  181,400    153,598 
      
Partners' deficit  (75,747)   (72,454)
Total liabilities and partners' deficit$105,653  $81,144 




                  
GREEN PLAINS PARTNERS LP
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited, in thousands except per unit amounts)
                  
 Three Months Ended   Twelve Months Ended  
 December 31, December 31,
 2019  2018  % Var. 2019  2018  % Var.
Revenues                 
Affiliate$ 18,780   $ 21,318    (11.9)% $ 75,531   $ 94,267    (19.9)%
Non-affiliate  1,541     1,935    (20.4)    6,856     6,481    5.8   
Total revenues  20,321     23,253    (12.6)    82,387     100,748    (18.2) 
Operating expenses                 
Operations and maintenance (excluding depreciation and amortization reflected below)  6,344     7,280    (12.9)    25,658     30,866    (16.9) 
General and administrative  1,001     1,569    (36.2)    4,055     5,258    (22.9) 
Depreciation and amortization  694     1,036    (33.0)    3,441     4,442    (22.5) 
Gain on assignment of operating leases  -    (2,721) *    -    (2,721) * 
Total operating expenses  8,039     7,164    12.2      33,154     37,845    (12.4) 
Operating income  12,282     16,089    (23.7)    49,233     62,903    (21.7) 
Other income (expense)                 
Interest income  20     20    -     81     81    -  
Interest expense  (1,986)   (2,054)  (3.3)    (8,310)   (7,307)  13.7   
Other, net  (1)   44   *    14     119    (88.2) 
Total other expense  (1,967)   (1,990)  (1.2)    (8,215)   (7,107)  15.6   
Income before income taxes and income (loss) from equity method investee  10,315     14,099    (26.8)    41,018     55,796    (26.5) 
Income tax expense  (76)   (31)  145.2      (220)   (101)  117.8   
Income (loss) from equity method investee  151     68    122.1      681     (14) * 
Net income$ 10,390   $ 14,136    (26.5)% $ 41,479   $ 55,681    (25.5)%
                  
Net income attributable to partners' ownership interests:                 
General partner$ 209   $ 283    (26.1)% $ 830   $ 1,114    (25.5)%
Limited partners - common unitholders  10,181     13,853    (26.5)    40,649     37,868   * 
Limited partners - subordinated unitholders  -    -  *    -    16,699   * 
                  
Earnings per limited partner unit (basic and diluted):                 
Common units$ 0.44   $ 0.51    (13.7)% $ 1.76   $ 1.81    (2.8)%
Subordinated units $ -  $ -  *  $ -  $ 1.71   *%
                  
Weighted average limited partner units outstanding (basic and diluted):                 
Common units  23,138     27,390        23,129     20,950     
Subordinated units  -    -       -    9,752     
                  
Supplemental Revenues Data:                 
Storage and throughput services$ 11,785   $ 13,325    (11.6)% $ 47,140   $ 59,290    (20.5)%
Rail transportation services  5,136     6,275    (18.2)    21,265     26,055    (18.4) 
Terminal services  2,270     2,470    (8.1)    9,664     10,498    (7.9) 
Trucking and other  1,130     1,183    (4.5)    4,318     4,905    (12.0) 
Total revenues$ 20,321   $ 23,253    (12.6)% $ 82,387   $ 100,748    (18.2)%
                  
* Percentage variance not considered meaningful.                 




      
GREEN PLAINS PARTNERS LP
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited, in thousands)
      
 Twelve Months Ended
 December 31,
 2019  2018 
Cash flows from operating activities:     
Net income$ 41,479  $ 55,681 
Noncash operating adjustments:     
Depreciation and amortization  3,441    4,442 
Gain on assignment of operating leases  -    (2,721)
Other  592    1,152 
Net change in working capital  1,145    (3,163)
Net cash provided by operating activities  46,657    55,391 
      
Cash flows from investing activities:     
Purchases of property and equipment  (305)   (1,267)
Proceeds from the disposal of property and equipment  331    11 
Proceeds from assignment of operating leases  -    2,721 
Contributions to equity method investee  -    (1,425)
Net cash provided by investing activities  26    40 
      
Cash flows from financing activities:     
Payments of distributions  (45,098)   (61,805)
Net proceeds (payments) - revolving credit facility  (1,900)   7,100 
Payments of loan fees  -    (665)
Other  7    6 
Net cash used in financing activities  (46,991)   (55,364)
      
Net change in cash and cash equivalents  (308)   67 
Cash and cash equivalents, beginning of period  569    502 
Cash and cash equivalents, end of period$ 261  $ 569 




            
GREEN PLAINS PARTNERS LP
RECONCILIATIONS TO NON-GAAP FINANCIAL MEASURES
(unaudited, dollars in thousands)
            
 Three Months Ended Twelve Months Ended
 December 31, December 31,
 2019  2018  2019  2018 
Net income$ 10,390  $ 14,136  $ 41,479  $ 55,681 
Interest expense  1,986    2,054    8,310    7,307 
Income tax expense  76    31    220    101 
Depreciation and amortization  694    1,036    3,441    4,442 
Transaction costs  -    517    -    805 
Unit-based compensation expense  80    81    319    277 
Gain on the disposal of assets  -    -    (14)   - 
Proportional share of EBITDA adjustments of equity method investee (1)  43    35    196    80 
Gain on assignment of operating leases (2)  -    (2,721)   -    (2,721)
Adjusted EBITDA  13,269    15,169    53,951    65,972 
Interest paid or payable  (1,986)   (2,054)   (8,310)   (7,307)
Income taxes paid or payable  (97)   (33)   (238)   (101)
Maintenance capital expenditures  (32)   -    (94)   (50)
Distributable cash flow$ 11,154  $ 13,082  $ 45,309  $ 58,514 
Distributions declared (3)$ 11,280  $ 11,268  $ 45,109  $ 57,767 
Coverage ratio 0.99x  1.16x  1.00x  1.01x
            
(1) Represents the partnership's proportional share of depreciation and amortization of its equity method investee.
(2) Consideration received related to the assignment of railcar operating leases to Valero Renewable Fuels Company, LLC in the fourth quarter of 2018.
(3) Represents distributions declared for the applicable period and paid in the subsequent quarter.
            
Green Plains Partners Contacts
Investors: Phil Boggs | Senior Vice President - Investor Relations and Treasurer | 402.884.8700 | phil.boggs@gpreinc.com
Media: Leighton Eusebio | Manager - Public Relations | 402.952.4971 | leighton.eusebio@gpreinc.com
            
 

Green Plains Partners LP

Source: Green Plains Partners LP