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| 8-K - 8-K SIRE 2016 Q2 PRESS RELEASE - SOUTHWEST IOWA RENEWABLE ENERGY, LLC | sire10-qpressrelease2016q2.htm |
Council Bluffs, Iowa ----- On May 12, 2016, Southwest Iowa Renewable Energy, LLC (“ SIRE ” or the "Company") announced its unaudited financial results as of and for the three and six months ended March 31, 2016.
Results for the Second Quarter of Fiscal 2016
Three Months Ended March 31, 2016 | Three Months Ended March 31, 2015 | Six Months Ended March 31, 2016 | Six Months Ended March 31, 2015 | ||||||||||
• | Revenues - | $54,122,000 | $55,472,000 | $107,321,000 | $128,008,000 | ||||||||
• | Net Income - | ($2,228,000 | ) | ($2,910,000 | ) | ($1,122,000 | ) | $6,918,000 | |||||
• | Gross Margin (Loss) - | ($807,000 | ) | ($914,000 | ) | $1,708,000 | $15,719,000 | ||||||
• | Modified EBITDA - | $1,665,000 | $1,034,000 | $6,025,000 | $17,699,000 | ||||||||
SIRE reported net income (loss) for the six months ended March 31, 2016 of $(1.1) million or $(84.19) per basic unit compared to $6.9 million or $519.10 per basis unit for the six months ended March 31, 2015, and SIRE reported a net loss for the three months ended March 31, 2016 of $(2.2) million or $(167.18) per basic unit compared to $(2.9) million or $(218.35) per basic unit for the three months ended March 31, 2015.
SIRE revenue from operations was $107.3 million for the six months ended March 31, 2016 compared to $128.0 million for the six months ended March 31, 2015 and $54.1 million for the three months ended March 31, 2016 compared to $55.5 million for the three months ended March 31, 2015.
Modified EBITDA, which is defined as earnings before interest, income taxes, depreciation, amortization, unrealized hedging gains and losses, and other significant noncash expenses was $6.0 million for the six months ended March 31, 2016, compared to $17.7 million for the six months ended March 31, 2015 and $1.7 million for the three months ended March 31, 2016 compared to $1.0 million for the three months ended March 31, 2015.
On March 31, 2016, SIRE had $3.0 million in cash and cash equivalents and $21.9 million available under the Revolving Term Loan and working capital of $11.8 million.
Brian Cahill, SIRE's President and CEO stated, “During this second quarter of Fiscal 2016, we continued to drive down our cost per gallon, implementing several efficiency measures, as well as capitalizing on lower utility costs."
During the second quarter of Fiscal 2016, SIRE produced 31.2 million gallons of ethanol. Cahill commented - "We continue to focus on running the plant efficiently, always seeking the right balance of optimizing the yield and profit."
About Southwest Iowa Renewable Energy, LLC:
SIRE is located on 275 acres in Council Bluffs, Iowa, operating a 125 million gallon per year ethanol plant. SIRE began producing ethanol in February, 2009 and sells its ethanol, distillers grains, corn syrup, and corn oil in the continental United States, Mexico and the Pacific Rim.
This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (the “1995 Act”). Such statements are made in good faith by SIRE and are identified as including terms such as “may,” “will,” “should,” “expects,” “anticipates,” “estimates,” “plans,” or similar language. In connection with these safe-harbor provisions, SIRE has identified in its Annual Report on Form 10-K , important factors that could cause actual results to differ materially from those contained in any forward-looking statement made by or on behalf of SIRE, including, without limitation, the risk and nature of SIRE's business, and the effects of general economic conditions on SIRE. The forward-looking statements contained in this Press Release are included in the safe harbor protection provided by Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. SIRE further cautions that such factors are not exhaustive or exclusive. SIRE does not undertake to update any forward-looking statement which may be made from time to time by or on behalf of SIRE.
Financial Results
SOUTHWEST IOWA RENEWABLE ENERGY, LLC Summary Statements of Operations Unaudited (Dollars in thousands) | |||||||||||||||
For the three months ended March 31, | For the six months ended March 31, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Revenues | $ | 54,122 | $ | 55,472 | $ | 107,321 | $ | 128,008 | |||||||
Cost of Goods Sold | 54,929 | 56,386 | 105,613 | 112,289 | |||||||||||
Gross Margin (Loss) | (807 | ) | (914 | ) | 1,708 | 15,719 | |||||||||
General and administrative expenses | 964 | 1,130 | 2,169 | 2,515 | |||||||||||
Interest and other income (expense) net | (97 | ) | (266 | ) | (301 | ) | (986 | ) | |||||||
Change in fair value of put option liability | 360 | 600 | 360 | 600 | |||||||||||
Loss from debt extinguishment | — | — | — | 4,700 | |||||||||||
Net Income (Loss) | $ | (2,228 | ) | $ | (2,910 | ) | $ | (1,122 | ) | $ | 6,918 | ||||
Weighted Average Units Outstanding, Basic | 13,327 | 13,327 | 13,327 | 13,327 | |||||||||||
Weighted Average Units Outstanding, Diluted | 13,327 | 13,327 | 13,327 | 17,763 | |||||||||||
Net Income (Loss) per unit, Basic | $ | (167.18 | ) | $ | (218.35 | ) | $ | (84.19 | ) | $ | 519.10 | ||||
Net Income (Loss) per unit, Diluted | $ | (167.18 | ) | $ | (218.35 | ) | $ | (84.19 | ) | $ | 445.70 | ||||
Modified EBITDA
Management uses Modified EBITDA, a non-GAAP measure, to measure the Company’s financial performance and to internally manage its business. Management believes that Modified EBITDA provides useful information to investors as a measure of comparison with peer and other companies. Modified EBITDA should not be considered an alternative to, or more meaningful than, net income or cash flow as determined in accordance with generally accepted accounting principles. Modified EBITDA calculations may vary from company to company. Accordingly, our computation of Modified EBITDA may not be comparable with a similarly-titled measure of another company. The following sets forth the reconciliation of Net Income (Loss) to Modified EBITDA for the periods indicated:
Three months ended | Six months ended | ||||||||||||||
March 31, 2016 | March 31, 2015 | March 31, 2016 | March 31, 2015 | ||||||||||||
EBITDA | |||||||||||||||
Net Income (Loss) | $ | (2,228 | ) | $ | (2,910 | ) | $ | (1,122 | ) | $ | 6,918 | ||||
Interest Expense | 364 | 391 | 700 | 1,118 | |||||||||||
Depreciation | 2,939 | 2,882 | 5,878 | 5,774 | |||||||||||
EBITDA | 1,075 | 363 | 5,456 | 13,810 | |||||||||||
Unrealized Hedging (Gain) Loss | 230 | 71 | 209 | (1,411 | ) | ||||||||||
Loss from debt extinguishment | — | — | — | 4,700 | |||||||||||
Change in fair value of put option liability | 360 | 600 | 360 | 600 | |||||||||||
Modified EBITDA | $ | 1,665 | $ | 1,034 | $ | 6,025 | $ | 17,699 | |||||||
Modified EBITDA per unit - basic | $ | 124.93 | $ | 77.59 | $ | 452.09 | $ | 1,328.06 | |||||||
Statistical Information
Product Revenue Information | |||||||||||||
Three Months Ended March 31, 2016 | Three Months Ended March 31, 2015 | ||||||||||||
Amounts in 000's | % of Revenues | Amounts in 000's | % of Revenues | ||||||||||
Denatured and undenatured Ethanol | $ | 42,043 | 77.7 | % | $ | 42,062 | 75.8 | % | |||||
Distillers Grains | 9,654 | 17.8 | % | 11,173 | 20.2 | % | |||||||
Corn Oil | 2,091 | 3.9 | % | 1,936 | 3.5 | % | |||||||
Other | 334 | 0.6 | % | 301 | 0.5 | % | |||||||
Product Revenue Information | |||||||||||||
Six Months Ended March 31, 2016 | Six Months Ended March 31, 2015 | ||||||||||||
Amounts in 000's | % of Revenues | Amounts in 000's | % of Revenues | ||||||||||
Denatured and undenatured Ethanol | $ | 83,625 | 78.0 | % | $ | 101,660 | 79.4 | % | |||||
Distillers Grains | 19,043 | 17.7 | % | 21,250 | 16.6 | % | |||||||
Corn Oil | 3,986 | 3.7 | % | 4,560 | 3.6 | % | |||||||
Other | 667 | 0.6 | % | 538 | 0.4 | % | |||||||
Summary Balance Sheets
(Dollars in thousands)
March 31, 2016 | September 30, 2015 | ||||||
(unaudited) | |||||||
ASSETS | |||||||
Current Assets | |||||||
Cash & restricted cash | $ | 3,022 | $ | 3,335 | |||
Accounts receivable | 9,942 | 3,764 | |||||
Inventory | 13,073 | 14,298 | |||||
Other current assets | 1,509 | 1,146 | |||||
Total current assets | 27,546 | 22,543 | |||||
Net property and equipment | 125,097 | 129,420 | |||||
Other assets | 2,495 | 2,513 | |||||
Total Assets | $ | 155,138 | $ | 154,476 | |||
LIABILITIES AND MEMBERS' EQUITY | |||||||
Current Liabilities | |||||||
Accounts payable, accrued expenses, and other current liabilities | $ | 9,223 | $ | 11,587 | |||
Current maturities of notes payable | 6,506 | 6,506 | |||||
Total current liabilities | 15,729 | 18,093 | |||||
Total long term liabilities | 39,215 | 35,067 | |||||
Total members' equity | 100,194 | 101,316 | |||||
Total Liabilities and Members' Equity | $ | 155,138 | $ | 154,476 | |||
Contact:
Brett Frevert, CFO
Southwest Iowa Renewable Energy, LLC
712.366.0392