Green Plains Partners Reports First Quarter 2022 Financial Results
05/02/2022 - 07:32 AM
Results for the First Quarter of 2022
Net income of $10.4 million, or $0.44 per common unit Adjusted EBITDA of $12.6 million and distributable cash flow of $11.2 million Quarterly cash distribution increased to $0.445 per unit Distribution coverage ratio of 1.06x, LTM distribution coverage ratio of 1.32x Reduced term debt by $1.0 million Leverage ratio of 1.15x OMAHA, Neb., May 02, 2022 (GLOBE NEWSWIRE) -- Green Plains Partners LP (NASDAQ:GPP) today announced financial and operating results for the first quarter of 2022. Net income attributable to the partnership was $10.4 million, or $0.44 per common unit, for the first quarter of 2022, compared with net income of $10.7 million, or $0.45 per common unit, for the same period in 2021.
The partnership also reported adjusted EBITDA of $12.6 million and distributable cash flow of $11.2 million for the first quarter of 2022, compared with adjusted EBITDA of $13.8 million and distributable cash flow of $11.7 million for the same period in 2021. Distribution coverage was 1.06x for the three months ended March 31, 2022.
“Green Plains Partners continues to deliver stable financial results,” said Todd Becker, President and Chief Executive Officer. “Our steady operating results and low leverage provide for consistent cash flow generation allowing the partnership to increase its quarterly distribution for the third consecutive quarter.”
First Quarter Highlights and Recent Developments
On April 21, 2022, the board of directors of the partnership’s general partner increased the quarterly cash distribution to $0.445 per unit, or approximately $10.5 million, for the first quarter of 2022. The distribution is payable on May 13, 2022, to unitholders of record at the close of business on May 6, 2022. Results of Operations
Operations and maintenance expenses decreased $0.2 million for the three months ended March 31, 2022, compared with the same period for 2021.
During the first quarter of 2022, Green Plains Inc.’s average production utilization rate was approximately 83.1% of capacity. Ethanol throughput was 197.2 million gallons, which was below the contracted minimum volume commitment. As a result, the partnership charged Green Plains Trade $1.1 million related to the minimum volume commitment deficiency for the quarter, resulting in a credit to be applied against potential excess volumes in future periods. The cumulative minimum volume deficiency credits available to Green Plains Trade as of March 31, 2022 totaled $5.2 million. If these credits are unused by Green Plains Trade, $1.4 million will expire on June 30, 2022, $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 March 31, 2022 2021 % Var. Product volumes Storage and throughput services 197.2 179.0 10.2 % Terminal services: Affiliate 27.3 18.4 48.4 Non-affiliate 21.5 24.4 (11.9 ) 48.8 42.8 14.0 Railcar capacity billed (daily average) 69.7 72.9 (4.4 )
Liquidity and Capital Resources
Conference Call Information http://ir.greenplainspartners.com .
Non-GAAP Financial Measures
About Green Plains Partners LP www.greenplainspartners.com .
About Green Plains Inc. www.gpreinc.com .
Forward-Looking Statements
Consolidated Financial Results
GREEN PLAINS PARTNERS LP CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) March 31, December 31, 2022 2021 ASSETS (unaudited) Current assets Cash and cash equivalents $ 14,975 $ 17,645 Accounts receivable, including from affiliates 17,040 14,555 Other current assets 535 845 Total current assets 32,550 33,045 Property and equipment, net 28,221 28,773 Operating lease right-of-use assets 40,429 38,863 Other assets 13,966 13,791 Total assets $ 115,166 $ 114,472 LIABILITIES AND PARTNERS' EQUITY Current liabilities Accounts payable, including to affiliates $ 5,335 $ 4,954 Operating lease current liabilities 12,057 12,108 Other current liabilities 5,648 5,420 Total current liabilities 23,040 22,482 Long-term debt 58,441 59,467 Asset retirement obligations 2,081 2,658 Operating lease long-term liabilities 29,321 27,562 Total liabilities 112,883 112,169 Partners' equity 2,283 2,303 Total liabilities and partners' equity $ 115,166 $ 114,472
GREEN PLAINS PARTNERS LP CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited, in thousands except per unit amounts) Three Months Ended March 31, 2022 2021 % Var. Revenues Affiliate $ 18,095 $ 19,309 (6.3 ) % Non-affiliate 1,005 1,097 (8.4 ) Total revenues 19,100 20,406 (6.4 ) Operating expenses Operations and maintenance (excluding depreciation and amortization reflected below) 5,565 5,754 (3.3 ) General and administrative 1,185 1,201 (1.3 ) Depreciation and amortization 898 887 1.2 Total operating expenses 7,648 7,842 (2.5 ) Operating income 11,452 12,564 (8.9 ) Interest expense (1,239 ) (1,928 ) (35.7 ) Income before income taxes and income from equity method investee 10,213 10,636 (4.0 ) Income tax expense (38 ) (84 ) (54.8 ) Income from equity method investee 175 175 - Net income $ 10,350 $ 10,727 (3.5 ) % Net income attributable to partners' ownership interests: General partner $ 207 $ 215 (3.7 ) % Limited partners - common unitholders 10,143 10,512 (3.5 ) Earnings per limited partner unit (basic and diluted): Common units $ 0.44 $ 0.45 (2.2 ) % Weighted average limited partner units outstanding (basic and diluted): Common units 23,208 23,161 Supplemental Revenues Data: Storage and throughput services $ 11,558 $ 12,261 (5.7 ) % Railcar transportation services 4,652 5,042 (7.7 ) Terminal services 2,084 2,042 2.1 Trucking and other 806 1,061 (24.0 ) Total revenues $ 19,100 $ 20,406 (6.4 ) %
GREEN PLAINS PARTNERS LP CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (unaudited, in thousands) Three Months Ended March 31, 2022 2021 Cash flows from operating activities: Net income $ 10,350 $ 10,727 Noncash operating adjustments: Depreciation and amortization 898 887 Other (47 ) 542 Net change in working capital (2,277 ) (1,368 ) Net cash provided by operating activities 8,924 10,788 Cash flows from investing activities: Purchases of property and equipment (134 ) (153 ) Disposition of assets - 27,000 Net cash provided by (used in) investing activities (134 ) 26,847 Cash flows from financing activities: Payments of distributions (10,429 ) (2,842 ) Net payments on revolving credit facility - 300 Net payments on long-term debt (1,031 ) (37,500 ) Net cash used in financing activities (11,460 ) (40,042 ) Net change in cash and cash equivalents (2,670 ) (2,407 ) Cash and cash equivalents, beginning of period 17,645 2,478 Cash and cash equivalents, end of period $ 14,975 $ 71
GREEN PLAINS PARTNERS LP RECONCILIATIONS TO NON-GAAP FINANCIAL MEASURES (unaudited, in thousands except ratios) Three Months Ended LTM Ended March 31, March 31, 2022 2021 2022 Net income $ 10,350 $ 10,727 $ 39,985 Interest expense (1) 1,239 1,928 6,703 Income tax expense 38 84 142 Depreciation and amortization 898 887 3,748 Transaction costs - 5 - Unit-based compensation expense 59 79 259 Proportional share of EBITDA adjustments of equity method investee (2) 45 44 185 Adjusted EBITDA 12,629 13,754 51,022 Interest paid or payable (1,239 ) (1,928 ) (5,703 ) Income taxes paid or payable (38 ) (84 ) (142 ) Maintenance capital expenditures (132 ) (2 ) (269 ) Distributable cash flow (3) $ 11,220 $ 11,740 $ 44,908 Distributions declared (4) $ 10,547 $ 2,842 $ 34,130 Coverage ratio 1.06x 4.13x 1.32x Long-term debt $ 58,441 Adjusted EBITDA $ 51,022 Leverage ratio 1.15x (1) Interest expense for the twelve months ended March 31, 2022 includes $1.0 million in 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 three months ended March 31, 2022 and $13.5 million for the twelve months ended March 31, 2022. (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
