Southwest Iowa Renewable Energy, LLC Announces Fiscal Results ended March 31, 2018
Southwest Iowa Renewable Energy, LLC Announces Fiscal Results ended March 31, 2018
COUNCIL BLUFFS, Iowa, May 9, 2018 /PRNewswire/ -- Southwest Iowa Renewable Energy, LLC ("SIRE" or the "Company") announced its unaudited financial results for the three and six months ended March 31, 2018.
Results for the Second Quarter of Fiscal 2018 (Amounts in $ and 000's, except Book Value per Unit)
Three Months Three Months Six Months Six Months
Ended March Ended March Ended March Ended March
31, 2018 31, 2017 31, 2018 31, 2017
-------- -------- -------- --------
Revenues 53,551 56,073 104,097 108,138
Net Income (Loss) (835) 2,065 346 7,697
Gross Margin 356 3,489 3,064 10,672
Modified EBITDA 1,983 5,410 6,148 13,606
Balance at March 31, Balance at September 30,
2018 2017
---- ----
Total Debt 27,373 19,766
Book Value
(Members'
Equity) 105,674 111,991
Book Value per
basic unit 7,929 8,403
SIRE reported net income of $0.3 million or $25.96 per basic unit for the six months ended March 31, 2018, compared to $7.7 million or $577.55 per basic unit for the six months ended March 31, 2017. SIRE reported net loss of $(0.8) million, or $(62.65) per unit, for the three months ended March 31, 2018, compared to a net income of $2.1 million, or $154.95 per basic unit, for the three months ended March 31, 2017.
SIRE revenue from operations was $104.1 million for the six months ended March 31, 2018, compared to $108.1 million for the six months ended March 31, 2017. SIRE revenue from operations was $53.6 million for the three months ended March 31, 2018, compared to $56.1 million for the three months ended March 31, 2017.
Modified EBITDA, which is defined as earnings before interest, income taxes, depreciation, amortization, and unrealized hedging gains and losses was $6.1 million for the six months ended March 31, 2018, compared to $13.6 for the six months ended March 31, 2017 and $2.0 million for the three months ended March 31, 2018, compared to $5.4 million for the three months ended March 31, 2017.
The Company's debt increased $7.7 million at March 31, 2018 compared to September 30, 2017, as our continued paydown of term debt was offset by short term borrowing requirements of $10.9 million.
SIRE's book value was lower at March 31, 2018 by $6.3 million compared to September 30, 2017, due primarily to the $6.7 million paid in member distributions in January 2018.
SIRE had $1.3 million in cash and cash equivalents and $21.0 million available under revolving loan agreements, for a total cash and available borrowings of $22.3 million at March 31, 2018. The cash flow provided by operating activities was $1.5 million compared to $7.5 million for the six months ended March 31, 2018 and 2017, respectively.
Brian Cahill, SIRE's President and CEO stated, "This first half of Fiscal 2018, we saw very tight margins, continuing the trends of the previous quarter. Corn prices have increased slightly per bushel as compared to Fiscal 2017. However, ethanol prices in the U.S. have been trending downwards over the past months, but we did see some price improvement in March of 2018. Demand for ethanol has been strong with the lower prices, both in the U.S. and abroad. The industry has continued to adjust and we expect margins to remain positive but are becoming more dependent on continued good export demand. Our distiller grains have also seen increased demand offset by reduced prices in the first half of Fiscal 2018 as compared to 2017, and a shift to a heavier weighting for wet distiller grains. We also have seen price improvement for distilled grains during the last quarter."
During the second quarter of Fiscal 2018, SIRE produced 31.9 million gallons of ethanol, compared to 31.1 million gallons during the first quarter of Fiscal 2017. For the first six months of Fiscal 2018, SIRE produced 63.6 million gallons of ethanol, compared to 61.0 million gallons in the first six months of Fiscal 2017. Cahill commented - "We continue to evaluate and implement new production technology. We will continue to focus on running the plant efficiently, increasing our ethanol yield, with a 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 140 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, except per unit data)
For the three months For the six months ended
ended March 31, March 31,
2018 2017 2018 2017
---- ---- ---- ----
Revenues $53,551 $56,073 $104,097 $108,138
Cost
of
Goods
Sold 53,195 52,584 101,033 97,466
------ ------ ------- ------
Gross
Margin 356 3,489 3,064 10,672
General
and
administrative
expenses 1,056 1,331 2,434 2,593
Interest
and
other
(income)
expense,
net 135 93 284 382
Net
Income
(Loss) $(835) $2,065 $346 $7,697
===== ====== ==== ======
Weighted
Average
Units
Outstanding,
Basic 13,327 13,327 13,327 13,327
------ ------ ------ ------
Weighted
Average
Units
Outstanding,
Diluted 13,327 14,442 14,354 14,442
------ ------ ------ ------
Net
Income
(Loss)
per
unit,
Basic $(62.65) $154.95 $25.96 $577.55
------- ------- ------ -------
Net
Income
(Loss)
per
unit,
Diluted $(62.65) $142.99 $24.10 $532.96
------- ------- ------ -------
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 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.
Modified EBITDA, which is defined as earnings before interest, income taxes, depreciation, amortization, unrealized hedging gains and losses, and other significant noncash expenses was $6.1 million for the six months ended March 31, 2018, compared to the $13.6 million for the six months ended March 31, 2017 and $2.0 million for the three months ended March 31, 2018, compared to $5.4 million for the three months ended March 31, 2017. The following sets forth the reconciliation of Net Income to Modified EBITDA for the periods indicated:
For the three months ended For the six months
March 31, March 31, March 31, March 31,
2018 2017 2018 2017
Unaudited Unaudited Unaudited Unaudited
in 000's in 000's in 000"s in 000's
-------- -------- -------- --------
Net Income (loss) $(835) $2,065 $346 $7,697
Interest expense,
net 242 283 472 571
Depreciation 3,001 3,006 6,218 6,006
----- ----- ----- -----
EBITDA 2,408 5,354 7,036 14,274
Unrealized Hedging
(Gain) (425) 56 (888) (668)
Modified EBITDA $1,983 $5,410 $6,148 $13,606
====== ====== ====== =======
Statistical Information
-----------------------
Three Months Ended Three Months Ended
March 31, 2018 March 31, 2017
Amounts % of Amounts % of
in 000's Revenues in 000's Revenues
-------- -------- -------- --------
Product Revenue
Information
Denatured and
Undenatured
Ethanol $43,018 80.3% $44,918 80.1%
Distiller's Grains $8,083 15.1% $8,460 15.1%
Corn Oil $2,155 4.0% $2,433 4.3%
Other $295 0.6% $262 0.5%
Six Months Ended Six Months Ended
March 31, 2018 March 31, 2017
Amounts % of Amounts % of
in 000's Revenues in 000's Revenues
-------- -------- -------- --------
Product Revenue
Information
Denatured and
Undenatured
Ethanol $82,739 79.5% $86,529 80.0%
Distiller's Grains $16,113 15.5% $16,399 15.2%
Corn Oil $4,713 4.5% $4,712 4.3%
Other $532 0.5% $498 0.5%
Summary Balance Sheets
----------------------
(Dollars in thousands)
March 31, 2018 September 30, 2017
-------------- ------------------
(unaudited)
ASSETS
------
Current Assets
Cash & cash equivalents $1,275 $1,487
Accounts receivable 12,945 13,295
Inventory 13,176 13,214
Other current assets 1,531 464
----- ---
Total current assets 28,927 28,460
Net property, plant and
equipment 114,655 118,226
Other assets 2,107 2,143
----- -----
Total Assets $145,689 $148,829
======== ========
LIABILITIES AND MEMBERS' EQUITY
-------------------------------
Current Liabilities
Accounts payable,
derivative financial
instruments and
accrued expenses 7,108 11,574
Current maturities of
notes payable 6,549 6,538
----- -----
Total current
liabilities 13,657 18,112
Total long term
liabilities 26,358 18,726
Total members' equity 105,674 111,991
------- -------
Total Liabilities and
Members' Equity 145,689 148,829
======= =======
CONTACT: Brett Frevert, CFO, Southwest Iowa Renewable Energy, LLC, 712.366.0392
View original content with multimedia:http://www.prnewswire.com/news-releases/southwest-iowa-renewable-energy-llc-announces-fiscal-results-ended-march-31-2018-300645935.html
SOURCE Southwest Iowa Renewable Energy, LLC
