NTR’s Green Plains Renewable Energy Reports Third Quarter 2011 Financial Results
Net income of $12.4 million; Revenues of $957.0 million
October 27 2011
Dublin, 27th October 2011: NTR’s investment in the bio-ethanol sector, Green Plains Renewable Energy, Inc. (NASDAQ: GPRE), announced its financial results for the third quarter of 2011. Net income attributable to Green Plains for the quarter ended 30th September 2011 was $12.4 million, or $0.32 per diluted share, compared to $7.4 million, or $0.23 per diluted share, for the same period in 2010. Revenues were $957.0 million for the third quarter of 2011 compared to $496.1 million during the same period in 2010.
Revenues for the nine-month period ended 30th September 2011 were $2.6 billion compared to $1.4 billion for the same period of 2010. Net income attributable to Green Plains for the nine-month period ended 30th September 2011 was $25.2 million, or $0.66 per diluted share, compared to net income of $31.6 million, or $1.05 per diluted share, for the same period of 2010.
EBITDA, which is defined as earnings before interest, income taxes, non-controlling interests, depreciation and amortisation, was $41.6 million for the third quarter of 2011 compared to $26.1 million during the same period of 2010. Green Plains had $154.4 million total cash and equivalents and $102.7 million available under committed loan agreements (subject to satisfaction of specified lending conditions and covenants) at 30th September 2011. EBITDA for the nine-month period ended 30th September 2011 was $103.4 million compared to $85.6 million for the same period of 2010.
“All of our business segments performed well, resulting in higher net income and earnings per share this quarter compared with the third quarter of 2010 and last quarter,” said Todd Becker, President and Chief Executive Officer. “Non-ethanol operating income from the corn oil production, agribusiness, and marketing and distribution segments was $13.7 million in the third quarter, or 40% of total segment operating income. We set a goal to diversify our business model to provide our shareholders with more predictable and recurring income streams and this quarter continues the momentum we started earlier this year. We remain confident that we will reach our goal of $50 million of annual operating income from these segments. Corn oil production contributed a record $9.6 million in operating income and our agribusiness segment performed well as our Tennessee operations benefited from an excellent local soft wheat harvest.”
“Our ethanol production margins were more robust than expected, due in large part to our strategy to secure physical corn supply to each of our plants while waiting to opportunistically lock margins. This approach, along with our continued focus on efficient plant operations, generated our highest level of quarterly operating income for the ethanol production segment this year,” commented Becker. “We continue to expect our overall profitability to improve in the fourth quarter as a result of seasonal activity from the agribusiness segment. Ethanol production should also have a good finish for the year, although securing some of the early-harvested corn has been challenging as demonstrated by basis levels that are unprecedented for this time of the year.”
“We are excited about the successful completion of the first round of poultry feed trials for algae strains produced by BioProcess Algae at our Shenandoah plant,” stated Becker. “We continue to invest in algae production technology with a focus on reducing production costs and developing new markets for algae, including human nutrition, animal feed and biofuels.”
Recent Business Highlights
- During the third quarter of 2011, Green Plains completed the installation of corn oil extraction technology at its Otter Tail ethanol plant. All nine of the Company’s ethanol plants are now producing corn oil
- Green Plains’ agribusiness segment expects to close in the near future on a $195 million syndicated revolving line of credit and a $30 million amortising term loan. Proceeds from the facilities will be used to repay existing indebtedness, provide working capital funding and for other general corporate purposes
- On 12th September 2011, Green Plains announced the repurchase 3.5 million shares of its common stock from a subsidiary of NTR plc, its largest shareholder, at a price of $8.00 per share. After this transaction, NTR holds approximately 7.7 million shares, or 23.5%, of Green Plains’ outstanding shares
- On 17th October 2011, Green Plains and BioProcess Algae announced the successful completion of the first round of algae-based poultry feed trials. BioProcess Algae plans to proceed with further testing for poultry and begin evaluating a replacement product for the fishmeal market
- FORTUNE Magazine ranked Green Plains 8th on its 2011 “100 Fastest-Growing Companies” list. The full list and related stories were published in the 26th September 2011 print issue and are available online.
Notes to Editors
About NTR plc
NTR plc is a leading investor in renewable energy and sustainable waste management businesses. Founded in 1978, NTR has evolved from being a developer and operator of infrastructure in Ireland to an international developer and operator of renewable energy and sustainable waste management businesses in the USA and Ireland. www.ntrplc.com
About Green Plains Renewable Energy, Inc.
Green Plains Renewable Energy, Inc. (NASDAQ: GPRE) is North America’s fourth largest ethanol producer. The Company markets and distributes approximately one billion gallons of renewable motor fuel on an annual basis, including 740 million gallons of expected production from the Company’s nine ethanol plants located throughout the U.S. Green Plains owns and operates grain handling and storage assets and provides complementary agronomy services to local grain producers through its agribusiness segment. Green Plains owns Blendstar LLC, a biofuels terminal operator with locations in the southern U.S. Green Plains is a joint venture partner in BioProcess Algae LLC, which was formed to commercialise advanced photo-bioreactor technologies for the growing and harvesting of algal biomass. www.gpreinc.com
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