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| 8-K - 8-K - HOMELAND ENERGY SOLUTIONS LLC | a8-kremay2021newsletter.htm |
D I S C L O S U R E H O M E L A N D E N E R G Y S O L U T I O N S N E W S L E T T E R J U N E 2 0 2 1 I N S I D E T H I S I S S U E : P R O D U C T I O N C O M M I T M E N T 2 Z A C H ’ S T H O U G H T S 2 F I N A N C I A L S 3 J O B O P E N I N G 4 This newsletter contains for- ward-looking statements. We undertake no responsibility to update any forward looking statement. When used, the words “believe”, “hope”, “expect”, “anticipate” and similar expressions are intended to identify forward-looking statements. Readers should not place undue reliance on any forward-looking statements and recognize that the statements are not predictions of actual future results, which could and likely will differ materially from those anticipated in the forward -looking statements due to risks and uncertainties, including those described in our Securi- ties and Exchange Commission filings, copies of which are available through our web site or upon request. F R O M T H E B O A R D P R E S I D E N T : Hopefully, when this edition of the Homeland Energy Solutions Newsletter reaches each of you, the crops will be bursting from the ground, the latest rains will have soaked in and the fall 2021 crop will be in full development. Although there have been some changes to manage- ment; know that Homeland is in a great place in the industry and our mission “to produce etha- nol and its co-products profitably, enhancing returns to our stakeholders and surrounding communities” is still the focus and Homeland has a great team in place to do just that. When Homeland began development at the location in Lawler, Iowa, I was ecstatic and have been so proud to be a part of the current organization and look forward to the opportu- nities that are in front of us as company. This is a truly revolving industry and a great oppor- tunity for our members. -Leslie Hansen, Board President 2 0 2 1 A N N U A L M E E T I N G E L E C T I O N R E S U L T S : Homeland held their second virtual annual meeting on April 21, 2021 via a webinar. The meeting was held to elect three directors to the Board of Directors and conduct a vote on Say on Pay. The quorum met the require- ments. Mike Peterman, Plant Manag- er, presented an operational update. Zach Nosbisch, Commodities/Risk Manager provided a commodity market update. Beth Eiler, CFO, provided a financial update for the plant for the Proposal 1: Director Election For Withheld Steve Core 21,367 2,782 Christine Marchand 27,682 1,275 James Erickson 15,141 2,129 David Lusson 15,030 441 Proposal 2: Say on Pay For Against Abstentions 29,817 2,677 2,024 calendar year. Here are the voting members’ election results:
P R O D U C T I O N C O M M I T M E N T : Page 2 H O M E L A N D E N E R G Y S O L U T I O N S N E W S L E T T E R Greetings from the commodity group at Homeland Energy Solu- tions. Volatility has been the name of the game this year and it does not matter if you are talking natural gas prices in February or corn and ethanol prices all year. This time a year ago, we had 80 cent ethanol and sub $3.00 corn, today we have $2.45 ethanol and $7.00 corn, what a difference a year makes!!! The Covid-19 pandemic put a strain on many businesses including Homeland, but we are excited to see daily cases come down and vaccination rates continue to go up. We hope that this summer is more normal and will allow everyone to spend that quality family time doing the things we enjoy like county fairs, family vacations, etc. Please keep in mind as your summer travels begin to be fueling up with your homegrown ethanol! As always, thank you to all our corn suppliers. Have a safe and fun summer! Reminder: -ACH available for corn suppliers, see website for details -Want to see your grain account online? Give us a call for de- tails. -Zach Nosbisch, Commodity Risk Manager Z A C H ’ S T H O U G H T S : As the country begins to open up again from the pandemic, we have seen strong prices for our ethanol and co-products. There has also been a shift upward in costs associated in the production of our goods. Maximizing yields and managing operational costs is a constant focus at HES. The Homeland team remains com- mitted to meeting customer demand through efficient and reliable practices by minimizing downtime and producing at a constant and predictable rate. In Q1, we reduced plant operations due to natural gas curtailments and our spring outage. In Q2, we have been able to enjoy con- sistent daily operations with limited inter- ruptions. Operating in this manner pro- vides high quality products our customers expect and deserve. In the month of March, we produced over 16 million gal- lons of ethanol and more than 5.2 million pounds of corn oil. Summer is here and as America contin- ues to open up and more people are trav- eling, we will be here to meet the fuel de- mand. -Mike Peterman, Plant Manager “The Homeland team remains committed to meeting customer demand through efficient and relia- ble practices by minimizing down- time and produc- ing at a constant and predictable rate.” 1 0 Y E A R S O F S E R V I C E : Homeland would like to recognize an- other employee who has completed his 10 years of service. Please help us congratulate Jordan Shimek. Thank you for your dedication to Homeland.
The ethanol industry is a commodity driven in- dustry, so volatility is expected. We certainly see evidence of that volatility as we compare Q1 2021 to Q4 2020 as well as to Q1 2020. As we were beginning to experience the uncertainty of a worldwide pandemic in Q1 2020, we saw a considerable decrease in the prices we were able to realize for our ethanol and co-products. In contrast, in Q1 2021, people were beginning to travel again and demand for our products increased, leading to a 42-60% increase in pric- es for our products. Looking at Q1 2021 as compared to Q4 2020, we again realized a boost in the price of our products ranging from 22-40%. This equated to a 24% increase in ethanol revenue, 13% in- crease in DDGS revenue and a 32% increase in revenue from corn oil on a very similar quantity of product sales. On the cost side, we saw corn prices on the rise, increasing approxi- mately 26% from Q4 2020 to Q1 2021 with overall cost of goods sold increasing approxi- mately 11%. In February, the polar vortex created a huge demand for natural gas. The Homeland team was able to slow the plant down to conserve natural gas, making natu- ral gas available to those who needed it to heat their homes at the same time generat- ing some profit for Homeland. All these fac- tors resulted in a strong Q1, reporting a net income for Homeland just shy of $6 million. Please see a summary of the Company’s financial performance below. You may find a more detailed version of the annual report available on the HES or SEC website. -Beth Eiler, Chief Financial Officer H O M E L A N D E N E R G Y S O L U T I O N S F I N A N C I A L S — Q 1 2 0 2 1 Page 3 J U N E 2 0 2 1 “All these factors resulted in a strong Q1, reporting a net income for Homeland just shy of $6 million.”
H O M E L A N D E N E R G Y S O L U T I O N S N E W S L E T T E R H O M E L A N D E N E R G Y S L U T I O N S N E W S L E T T E R J O B O P E N I N G : Homeland is accepting applications for full-time Produc- tion Operators to join our team. A full job description is located on our website. Applications are available online at www.homelandenergysolutions.com or apply in per- son. Homeland offers excellent benefits and competitive wages. If you know of a qualified candidate, please refer them to Katherine Balk, VP of HR. d , E K > ͗ Z / s / E ' D Z / ͛ ^ & h d h Z ,I\RXZRXOGOLNHWRUHFHLYHIXWXUH QHZVOHWWHUVE\HPDLOLQVWHDGRIPDLOSOHDVH VLJQXSRQOLQHDW ZZZKRPHODQGHQHUJ\VROXWLRQVFRP FRPSDQ\-QHZVOHWWHU