GPP - Green Plains Partners Reports Second Quarter 2022 Financial Results

August, 02 2022 07:32 AM Green Plains Partners LP

Results for the Second Quarter of 2022

Net income of $10.5 million, or $0.44 per common unit
Adjusted EBITDA of $12.9 million and distributable cash flow of $11.3 million
Quarterly cash distribution increased to $0.45 per unit
Distribution coverage ratio of 1.06x; LTM distribution coverage ratio of 1.07x
Leverage ratio, net of cash; 0.82x Adjusted EBITDA

OMAHA, Neb., Aug. 02, 2022 (GLOBE NEWSWIRE) -- Green Plains Partners LP (NASDAQ:GPP) today announced financial and operating results for the second quarter of 2022. Net income attributable to the partnership was $10.5 million, or $0.44 per common unit, for the second quarter of 2022, compared with net income of $10.3 million, or $0.44 per common unit, for the same period in 2021.

The partnership also reported adjusted EBITDA of $12.9 million and distributable cash flow of $11.3 million for the second quarter of 2022, compared with adjusted EBITDA of $12.7 million and distributable cash flow of $11.2 million for the same period in 2021. Distribution coverage was 1.06x for the three months ended June 30, 2022.

“Green Plains Partners continues to achieve consistent returns,” said Todd Becker, President and Chief Executive Officer. “We believe Green Plains’ ability to achieve higher throughput rates, as demonstrated in the second quarter, should benefit the partnership in future periods. As a result of consistent operations and low leverage, we felt confident in increasing the quarterly distribution for the fourth consecutive quarter.”

Second Quarter Highlights and Recent Developments

On July 21, 2022, the board of directors of the partnership’s general partner increased the quarterly cash distribution to $0.45 per unit, or approximately $10.7 million, for the second quarter of 2022. The distribution is payable on August 12, 2022, to unitholders of record at the close of business on August 5, 2022.

Results of Operations
Consolidated revenues for the three months ended June 30, 2022 were comparable with the same period for 2021. Operations and maintenance expenses decreased $0.1 million for the three months ended June 30, 2022, compared with the same period for 2021.

During the second quarter of 2022, Green Plains Inc.’s average production utilization rate was approximately 96.9% of capacity. Ethanol throughput was 232.5 million gallons, which exceeded the contracted minimum volume commitment. As a result, a prior period deficiency credit of $0.8 million was utilized toward the excess volume. Prior year credits of $0.6 million expired unused, leaving a cumulative balance of minimum volume deficiency credits available to Green Plains Trade as of June 30, 2022 of $3.8 million. If these credits are unused by Green Plains Trade, $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 June 30,

Six Months Ended June 30,


2022



2021



% Var.



2022



2021



% Var.

Product volumes (mmg)



















Storage and throughput services

232.5



191.8



21.2
%


429.7



370.8



15.9
%




















Terminal services:



















Affiliate

27.7



21.6



28.2



55.0



40.0



37.5

Non-affiliate

23.7



27.1



(12.5
)


45.2



51.5



(12.2
)


51.4



48.7



5.5



100.2



91.5



9.5





















Railcar capacity billed (daily avg.)

74.5



69.4



7.3



72.1



71.2



1.3

Liquidity and Capital Resources
Total liquidity as of June 30, 2022 consisted of $16.5 million in cash and cash equivalents. Total debt outstanding was $58.5 million, net of debt issuance costs of $0.5 million.

Conference Call Information
On August 2, 2022, Green Plains Partners LP and Green Plains Inc. will host a joint conference call at 11 a.m. Eastern time (10 a.m. Central time) to discuss second quarter 2022 financial and operating results for each company. To participate in the live call, please pre-register here . All registrants will receive dial-in information and a unique PIN. The company advises participants to call at least 10 minutes prior to the start time. Alternatively, the conference call, transcript and presentation will be accessible on Green Plains Partners’ website at http://ir.greenplainspartners.com .

Non-GAAP Financial Measures
Adjusted EBITDA and distributable cash flow are supplemental financial measures used to assess the partnership’s financial performance. Management believes adjusted EBITDA and distributable cash flow provide investors useful information in assessing the partnership’s financial condition and results of operations. Adjusted EBITDA is defined as earnings before interest expense, income tax expense, depreciation and amortization, plus adjustments for transaction costs related to acquisitions or financing transactions, unit-based compensation expense, net gains or losses on asset sales and the partnership’s proportional share of EBITDA adjustments of our equity method investee. Distributable cash flow is defined as adjusted EBITDA less interest paid or payable, income taxes paid or payable, maintenance capital expenditures and the partnership’s proportionate share of distributable cash flow adjustments of our equity method investee. References to LTM refer to results from the immediately preceding twelve-month period. Adjusted EBITDA and distributable cash flow are not presented in accordance with U.S. Generally Accepted Accounting Principles (GAAP) and therefore should not be considered in isolation or as alternatives to net income or any other measure of financial performance presented in accordance with GAAP to analyze the partnership’s results.

About Green Plains Partners LP
Green Plains Partners LP (NASDAQ:GPP) is a fee-based Delaware limited partnership formed by Green Plains Inc. to provide fuel storage and transportation services by owning, operating, developing and acquiring ethanol and fuel storage terminals, transportation assets and other related assets and businesses. For more information about Green Plains Partners, visit www.greenplainspartners.com .

About Green Plains Inc.
Green Plains Inc. (NASDAQ:GPRE) is a leading biorefining company focused on the development and utilization of fermentation, agricultural and biological technologies in the processing of annually renewable crops into sustainable value-added ingredients. This includes the production of cleaner low carbon biofuels, renewable feedstocks for advanced biofuels and high purity alcohols for use in cleaners and disinfectants. Green Plains is an innovative producer of ultra-high protein and novel ingredients for animal and aquaculture diets to help satisfy a growing global appetite for sustainable protein. The Company also owns a 48.9% limited partner interest and a 2.0% general partner interest in Green Plains Partners LP. For more information, visit www.gpreinc.com .

Forward-Looking Statements
This news release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Forward-looking statements reflect management’s current views, which are subject to risks and uncertainties including, but not limited to, anticipated financial and operating results, plans and objectives that are not historical in nature. These statements may be identified by words such as “believe,” “expect,” “may,” “should,” “will” and similar expressions. Factors that could cause actual results to differ materially from those expressed or implied are discussed in Green Plains Partners’ reports filed with the Securities and Exchange Commission. Investors are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date of this news release. Green Plains Partners assumes no obligation to update any such forward-looking statements, except as required by law.

Consolidated Financial Results

GREEN PLAINS PARTNERS LP
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)


June 30, 2022

December 31, 2021

(unaudited)


ASSETS



Current assets



Cash and cash equivalents
$
16,527


$
17,645

Accounts receivable, including from affiliates

16,475



14,555

Other current assets

1,216



845

Total current assets

34,218



33,045

Property and equipment, net

27,686



28,773

Operating lease right-of-use assets

40,145



38,863

Other assets

14,162



13,791

Total assets
$
116,211


$
114,472





LIABILITIES AND PARTNERS' EQUITY



Current liabilities



Accounts payable, including to affiliates
$
6,549


$
4,954

Operating lease current liabilities

12,330



12,108

Other current liabilities

5,162



5,420

Total current liabilities

24,041



22,482

Long-term debt

58,502



59,467

Asset retirement obligations

2,237



2,658

Operating lease long-term liabilities

29,116



27,562

Total liabilities

113,896



112,169





Partners' equity

2,315



2,303

Total liabilities and partners' equity
$
116,211


$
114,472

GREEN PLAINS PARTNERS LP
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited, in thousands except per unit amounts)


Three Months Ended June 30,

Six Months Ended June 30,


2022



2021



% Var.



2022



2021



% Var.

Revenues











Affiliate
$
18,742


$
18,531



1.1
%

$
36,837


$
37,840



(2.7)
%
Non-affiliate

912



1,170



(22.1
)


1,917



2,267



(15.4
)
Total revenues

19,654



19,701



(0.2
)


38,754



40,107



(3.4
)
Operating expenses











Operations and maintenance (excluding depreciation and amortization reflected below)

6,160



6,238



(1.3
)


11,725



11,992



(2.2
)
General and administrative

925



1,059



(12.7
)


2,110



2,260



(6.6
)
Depreciation and amortization

823



795



3.5



1,721



1,682



2.3

Total operating expenses

7,908



8,092



(2.3
)


15,556



15,934



(2.4
)
Operating income

11,746



11,609



1.2



23,198



24,173



(4.0
)
Interest expense

(1,384
)


(1,411
)


(1.9
)


(2,623
)


(3,339
)


(21.4
)
Income before income taxes and income from equity method investee

10,362



10,198



1.6



20,575



20,834



(1.2
)
Income tax expense

(39
)


(68
)


(42.6
)


(77
)


(152
)


(49.3
)
Income from equity method investee

196



168



16.7



371



343



8.2

Net income
$
10,519


$
10,298



2.1
%

$
20,869


$
21,025



(0.7
)%












Net income attributable to partners' ownership interests:











General partner
$
210


$
206



1.9
%

$
417


$
421



(1.0
)%
Limited partners - common unitholders

10,309



10,092



2.2



20,452



20,604



(0.7
)












Earnings per limited partner unit (basic and diluted):











Common units
$
0.44


$
0.44



—
%

$
0.88


$
0.89



(1.1
)%












Weighted average limited partner units outstanding (basic and diluted):











Common units

23,208



23,161





23,208



23,161















Supplemental Revenues Data:











Storage and throughput services
$
11,570


$
11,564



0.1
%

$
23,128


$
23,825



(2.9
)%
Railcar transportation services

5,119



4,795



6.8



9,771



9,837



(0.7
)
Terminal services

2,036



2,218



(8.2
)


4,120



4,260



(3.3
)
Trucking and other

929



1,124



(17.3
)


1,735



2,185



(20.6
)
Total revenues
$
19,654


$
19,701



(0.2
)%

$
38,754


$
40,107



(3.4
)%

GREEN PLAINS PARTNERS LP
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(unaudited, in thousands)


Six Months Ended June 30,


2022



2021

Cash flows from operating activities



Net income
$
20,869


$
21,025

Noncash operating adjustments



Depreciation and amortization

1,721



1,682

Other

(53
)


1,075

Net change in working capital

(1,343
)


379

Net cash provided by operating activities

21,194



24,161





Cash flows from investing activities



Purchases of property and equipment

(305
)


(291
)
Disposition of assets

—



27,500

Net cash provided by (used in) investing activities

(305
)


27,209





Cash flows from financing activities



Payments of distributions

(20,976
)


(5,684
)
Net payments on long-term debt

(1,031
)


(46,834
)
Net cash used in financing activities

(22,007
)


(52,518
)




Net change in cash and cash equivalents

(1,118
)


(1,148
)
Cash and cash equivalents, beginning of period

17,645



2,478

Cash and cash equivalents, end of period
$
16,527


$
1,330

GREEN PLAINS PARTNERS LP
RECONCILIATIONS TO NON-GAAP FINANCIAL MEASURES
(unaudited, in thousands except ratios)


Three Months Ended June 30,

Six Months Ended June 30,

LTM Ended June 30,


2022



2021



2022



2021



2022

Net income
$
10,519


$
10,298


$
20,869


$
21,025


$
40,206

Interest expense ⁽¹⁾

1,384



1,411



2,623



3,339



6,676

Income tax expense

39



68



77



152



113

Depreciation and amortization

823



795



1,721



1,682



3,776

Transaction costs

—



—



—



5



—

Unit-based compensation expense

60



80



119



159



239

Proportional share of EBITDA adjustments of equity method investee ⁽²⁾

45



50



90



94



180

Adjusted EBITDA

12,870



12,702



25,499



26,456



51,190

Interest paid or payable

(1,384
)


(1,411
)


(2,623
)


(3,339
)


(5,676
)
Income taxes paid or payable

(39
)


(68
)


(77
)


(152
)


(113
)
Maintenance capital expenditures

(126
)


—



(258
)


(2
)


(395
)
Distributable cash flow ⁽³⁾
$
11,321


$
11,223


$
22,541


$
22,963


$
45,006

Distributions declared ⁽⁴⁾
$
10,666


$
2,844


$
21,213


$
5,686


$
41,952

Coverage ratio

1.06x



3.95x



1.06x



4.04x



1.07x











Long-term debt








$
58,502

Less: Cash and cash equivalents









16,527

Long-term debt, net of cash and cash equivalents








$
41,975

Adjusted EBITDA








$
51,190

Leverage ratio









0.82x

(1) Interest expense for the last twelve months ended June 30, 2022 includes $1.0 million 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 six months ended June 30, 2022 and $4.2 million for the last twelve months ended June 30, 2022. Distributable cash flow does not include adjustments for the principal payments on the term loan of $9.3 million, of which $0.5 million relates to the Ord disposition, for the three months ended June 30, 2021, and $46.8 million, of which $27.5 million relates to the Ord disposition, for the six months ended June 30, 2021.
(4) Represents distributions declared for the applicable period and paid in the subsequent quarter.

Company Name:	Green Plains Partners LP
Stock Symbol:	GPP
Market:	NASDAQ
Website:	greenplainspartners.com

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