Green Plains Partners Reports Fourth Quarter and Full Year 2022 Financial Results

Results for the Fourth Quarter of 2022

  • Net income of $9.6 million, or $0.41 per common unit
  • Adjusted EBITDA of $12.7 million and distributable cash flow of $10.7 million
  • Quarterly cash distribution of $0.455 per unit
  • Distribution coverage ratio of 0.99x

Results for the Full Year 2022

  • Net income of $40.7 million or $1.72 per common unit
  • Adjusted EBITDA of $51.2 million and distributable cash flow of $44.6 million
  • Distribution coverage of 1.04x
  • Leverage ratio, net of cash; 0.75x Adjusted EBITDA

Green Plains Partners LP (NASDAQ:GPP) today announced financial and operating results for the fourth quarter and full year of 2022. Net income attributable to the partnership was $9.6 million, or $0.41 per common unit, for the fourth quarter of 2022, compared with net income of $9.9 million, or $0.42 per common unit, for the same period in 2021.

The partnership also reported adjusted EBITDA of $12.7 million and distributable cash flow of $10.7 million for the fourth quarter of 2022, compared with adjusted EBITDA of $12.2 million and distributable cash flow of $11.0 million for the same period in 2021. Distribution coverage was 0.99x for the three months ended December 31, 2022.

“Green Plains Partners saw consistent and reliable operations, coupled with low leverage and increased throughput during the quarter,” said Todd Becker, President and Chief Executive Officer. “The partnership continues to maintain a strong balance sheet and deliver stable cash flows to unitholders.”

Fourth Quarter Highlights and Recent Developments

  • On January 19, 2023, the board of directors of the partnership’s general partner declared a quarterly cash distribution of $0.455 per unit, or approximately $10.8 million, for the fourth quarter of 2022. The distribution is payable on February 10, 2023, to unitholders of record at the close of business on February 3, 2023.

Results of Operations

Consolidated revenues for the three months ended December 31, 2022 increased by $1.9 million compared with the same period for 2021. Operations and maintenance expenses increased by $1.2 million for the three months ended December 31, 2022, compared with the same period for 2021.

During the fourth quarter of 2022, Green Plains Inc.’s average production utilization rate was approximately 93% of capacity. Ethanol throughput was 226.2 million gallons, which exceeded the contracted minimum volume commitment. As a result, a prior period deficiency credit of $0.4 million was utilized toward the excess volume. Prior year credits of $0.4 million expired unused, leaving a cumulative balance of minimum volume deficiency credits available to Green Plains Trade as of December 31, 2022 of $1.1 million. If this credit goes unused by Green Plains Trade, the total amount 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

December 31,

 

Twelve Months Ended

December 31,

 

2022

 

2021

 

% Var.

 

2022

 

2021

 

% Var.

Product volumes (mmg)

 

 

 

 

 

 

 

 

 

 

 

Storage and throughput services

226.2

 

201.4

 

12.3%

 

875.6

 

754.5

 

16.1%

 

 

 

 

 

 

 

 

 

 

 

 

Terminal services:

 

 

 

 

 

 

 

 

 

 

 

Affiliate

26.9

 

22.2

 

21.2

 

106.1

 

84.3

 

25.9

Non-affiliate

23.8

 

25.5

 

(6.7)

 

92.7

 

103.2

 

(10.2)

 

50.7

 

47.7

 

6.3

 

198.8

 

187.5

 

6.0

 

 

 

 

 

 

 

 

 

 

 

 

Railcar capacity billed (daily avg.)

73.5

 

68.3

 

7.6

 

73.1

 

69.8

 

4.7

Liquidity and Capital Resources

Total liquidity as of December 31, 2022 consisted of $20.2 million in cash and cash equivalents. Total debt outstanding was $58.6 million, net of debt issuance costs of $0.4 million.

Conference Call Information

On February 8, 2023, Green Plains Partners LP and Green Plains Inc. will host a joint conference call at 9 a.m. Eastern time (8 a.m. Central time) to discuss fourth quarter and full year 2022 financial and operating results for each company. Domestic and international participants can access the conference call by dialing 888.210.4215 and 646.960.0269, respectively, and referencing conference ID 5027523. The company advises participants to call at least 10 minutes prior to the start time. Alternatively, the conference call will be accessible on Green Plains Partners’ website here.

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. 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 48.8% 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)

 

 

December 31,

2022

 

December 31,

2021

 

(unaudited)

 

 

ASSETS

Current assets

 

 

 

Cash and cash equivalents

$

20,166

 

$

17,645

Accounts receivable, including from affiliates

 

12,997

 

 

14,555

Other current assets

 

1,410

 

 

845

Total current assets

 

34,573

 

 

33,045

Property and equipment, net

 

26,137

 

 

28,773

Operating lease right-of-use assets

 

47,002

 

 

38,863

Other assets

 

13,710

 

 

13,791

Total assets

$

121,422

 

$

114,472

 

 

 

 

LIABILITIES AND PARTNERS' EQUITY

Current liabilities

 

 

 

Accounts payable, including to affiliates

$

4,225

 

$

4,954

Operating lease current liabilities

 

14,734

 

 

12,108

Other current liabilities

 

6,710

 

 

5,420

Total current liabilities

 

25,669

 

 

22,482

Long-term debt

 

58,559

 

 

59,467

Asset retirement obligations

 

2,862

 

 

2,658

Operating lease long-term liabilities

 

33,582

 

 

27,562

Total liabilities

 

120,672

 

 

112,169

 

 

 

 

Partners' equity

 

750

 

 

2,303

Total liabilities and partners' equity

$

121,422

 

$

114,472

GREEN PLAINS PARTNERS LP

CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited, in thousands except per unit amounts)

 

 

 

Three Months Ended

December 31,

 

Twelve Months Ended

December 31,

 

2022

 

2021

 

% Var.

 

2022

 

2021

 

% Var.

Revenues

 

 

 

 

 

 

 

 

 

 

 

Affiliate

$

19,897

 

$

18,117

 

9.8%

 

$

75,764

 

$

74,178

 

2.1%

Non-affiliate

 

1,050

 

 

977

 

7.5

 

 

4,003

 

 

4,274

 

(6.3)

Total revenues

 

20,947

 

 

19,094

 

9.7

 

 

79,767

 

 

78,452

 

1.7

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

Operations and maintenance (excluding depreciation and amortization reflected below)

 

7,146

 

 

5,908

 

21.0

 

 

25,158

 

 

23,061

 

9.1

General and administrative

 

1,439

 

 

1,260

 

14.2

 

 

4,498

 

 

4,412

 

1.9

Depreciation and amortization

 

1,178

 

 

966

 

21.9

 

 

4,093

 

 

3,737

 

9.5

Total operating expenses

 

9,763

 

 

8,134

 

20.0

 

 

33,749

 

 

31,210

 

8.1

Operating income

 

11,184

 

 

10,960

 

2.0

 

 

46,018

 

 

47,242

 

(2.6)

Interest expense

 

(1,785)

 

 

(1,272)

 

40.3

 

 

(5,924)

 

 

(7,392)

 

(19.9)

Income before income taxes and income from equity method investee

 

9,399

 

 

9,688

 

(3.0)

 

 

40,094

 

 

39,850

 

0.6

Income tax benefit (expense)

 

33

 

 

41

 

(19.5)

 

 

(81)

 

 

(188)

 

(56.9)

Income from equity method investee

 

183

 

 

183

 

 

 

637

 

 

700

 

(9.0)

Net income

$

9,615

 

$

9,912

 

(3.0)%

 

$

40,650

 

$

40,362

 

0.7%

 

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to partners' ownership interests:

 

 

 

 

 

 

 

 

 

 

 

General partner

$

192

 

$

198

 

(3.0)%

 

$

813

 

$

807

 

0.7%

Limited partners - common unitholders

 

9,423

 

 

9,714

 

(3.0)

 

 

39,837

 

 

39,555

 

0.7

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per limited partner unit (basic and diluted):

 

 

 

 

 

 

 

 

 

 

 

Common units

$

0.41

 

$

0.42

 

(2.4)%

 

$

1.72

 

$

1.71

 

0.6%

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average limited partner units outstanding (basic and diluted):

 

 

 

 

 

 

 

 

 

 

 

Common units

 

23,228

 

 

23,208

 

 

 

 

23,218

 

 

23,185

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Supplemental Revenues Data:

 

 

 

 

 

 

 

 

 

 

 

Storage and throughput services

$

11,564

 

$

11,564

 

—%

 

$

46,257

 

$

46,953

 

(1.5)%

Railcar transportation services

 

6,171

 

 

4,673

 

32.1

 

 

21,557

 

 

19,198

 

12.3

Terminal services

 

2,164

 

 

1,898

 

14.0

 

 

8,148

 

 

8,156

 

(0.1)

Trucking and other

 

1,048

 

 

959

 

9.3

 

 

3,805

 

 

4,145

 

(8.2)

Total revenues

$

20,947

 

$

19,094

 

9.7%

 

$

79,767

 

$

78,452

 

1.7%

GREEN PLAINS PARTNERS LP

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited, in thousands)

 

 

Twelve Months Ended

December 31,

 

2022

2021

Cash flows from operating activities:

 

 

Net income

$

40,650

 

$

40,362

 

Noncash operating adjustments

 

 

Depreciation and amortization

 

4,093

 

 

3,737

 

Distribution from equity method investees

 

637

 

 

1,500

 

Other

 

(1

)

 

1,737

 

Net change in working capital

 

589

 

 

414

 

Net cash provided by operating activities

 

45,968

 

 

47,750

 

 

 

 

Cash flows from investing activities:

 

 

Purchases of property and equipment, net

 

(486

)

 

(668

)

Distribution from equity method investee

 

513

 

 

 

Disposition of assets

 

 

 

27,500

 

Net cash provided by investing activities

 

27

 

 

26,832

 

 

 

 

Cash flows from financing activities:

 

 

Payments of distributions

 

(42,443

)

 

(18,839

)

Net payments on long-term debt

 

(1,031

)

 

(40,000

)

Payments of loan fees

 

 

 

(581

)

Other

 

 

 

5

 

Net cash used in financing activities

 

(43,474

)

 

(59,415

)

 

 

 

Net change in cash and cash equivalents

 

2,521

 

 

15,167

 

Cash and cash equivalents, beginning of period

 

17,645

 

 

2,478

 

Cash and cash equivalents, end of period

$

20,166

 

$

17,645

 

GREEN PLAINS PARTNERS LP

RECONCILIATIONS TO NON-GAAP FINANCIAL MEASURES

(unaudited, in thousands except ratios)

 

 

Three Months Ended

December 31,

 

Twelve Months Ended

December 31,

 

2022

 

2021

 

2022

 

2021

Net income

$

9,615

 

$

9,912

 

$

40,650

 

$

40,362

Interest expense (1)

 

1,785

 

 

1,272

 

 

5,924

 

 

7,392

Income tax (benefit) expense

 

(33)

 

 

(41)

 

 

81

 

 

188

Depreciation and amortization

 

1,178

 

 

966

 

 

4,093

 

 

3,737

Transaction costs

 

 

 

 

 

 

 

5

Unit-based compensation expense

 

60

 

 

60

 

 

240

 

 

279

Proportional share of EBITDA adjustments of equity method investee (2)

 

45

 

 

45

 

 

180

 

 

184

Adjusted EBITDA

 

12,650

 

 

12,214

 

 

51,168

 

 

52,147

Interest paid or payable

 

(1,785)

 

 

(1,272)

 

 

(5,924)

 

 

(6,392)

Income taxes paid or payable

 

33

 

 

41

 

 

(81)

 

 

(188)

Maintenance capital expenditures

 

(202)

 

 

 

 

(584)

 

 

(139)

Distributable cash flow (3)

$

10,696

 

$

10,983

 

$

44,579

 

$

45,428

Distributions declared (4)

$

10,793

 

$

10,429

 

$

42,808

 

$

26,425

Coverage ratio

0.99x

 

1.05x

 

1.04x

 

1.72x

 

 

 

 

 

 

 

 

Long-term debt

 

 

 

 

$

58,559

 

$

59,467

Less: Cash and cash equivalents

 

 

 

 

 

20,166

 

 

17,645

Long-term debt, net of cash and cash equivalents

 

 

 

 

$

38,393

 

$

41,822

Adjusted EBITDA

 

 

 

 

$

51,168

 

$

52,147

Leverage ratio

 

 

 

 

0.75x

 

0.80x

(1) Includes $1.0 million in unamortized debt issuance costs written off upon extinguishment of debt for the twelve months ended December 31, 2021.

(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 twelve months ended December 31, 2022, or for the principal payments on the term loan of $50.0 million for the twelve months ended December 31, 2021.

(4) Distributions declared for the applicable period and paid in the subsequent quarter.

 

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