GlobeNewswire Inc | Nov 4, 2021 07:32AM EDT

November 04, 2021

Results for the Third Quarter of 2021

-- Net income of $9.4 million, or $0.40 per common unit -- Adjusted EBITDA of $13.5 million and distributable cash flow of $11.5 million -- Quarterly cash distribution of $0.435 per unit -- Distribution coverage ratio of 1.11x, LTM distribution coverage ratio of 2.43x

OMAHA, Neb., Nov. 04, 2021 (GLOBE NEWSWIRE) -- Green Plains Partners LP (NASDAQ:GPP) today announced financial and operating results for the third quarter of 2021. Net income attributable to the partnership was $9.4 million, or $0.40 per common unit, for the third quarter of 2021, compared with net income of $10.3 million, or $0.44 per common unit, for the same period in 2020.

The partnership also reported adjusted EBITDA of $13.5 million and distributable cash flow of $11.5 million for the third quarter of 2021, compared with adjusted EBITDA of $13.9 million and distributable cash flow of $11.3 million for the same period in 2020. Distribution coverage was 1.11x for the three months ended September 30, 2021.

We were pleased to increase the distribution for the quarter, returning capital to unitholders consistent with our prior guidance, said Todd Becker, president and chief executive officer. The partnership continues to be well positioned to deliver stable and consistent cash flows for its unitholders.

Third Quarter Highlights and Recent Developments

-- On October 19, 2021, the board of directors of the partnerships general partner declared a quarterly cash distribution of $0.435 per unit, or approximately $10.3 million, for the third quarter of 2021. The distribution is payable on November 12, 2021, to unitholders of record at the close of business on November 5, 2021. -- On July 20, 2021, the partnership closed on an amended five-year, $60.0 million term loan facility.

Results of OperationsConsolidated revenues decreased $2.1 million for the three months ended September 30, 2021, compared with the same period for 2020. Railcar transportation services revenue decreased $0.9 million primarily due to a reduction in average volumetric capacity, and storage and throughput services revenue decreased $1.0 million due to a decrease in throughput volumes, both of which were a result of the sale of our parents Hereford ethanol plant in the fourth quarter of 2020 and its Ord ethanol plant in the first quarter of 2021. Terminal services revenue decreased $0.1 million due to lower throughput at our terminals. Trucking and other revenue decreased $0.1 million as a result of lower affiliate freight volume.

Operations and maintenance expenses decreased $1.5 million for the three months ended September 30, 2021, compared with the same period for 2020, primarily due to a reduction in railcar lease expense of $0.7 million, a decrease in accretion expense of $0.4 million associated with railcar lease asset retirement obligations, and a decrease of $0.2 million in repairs and maintenance expenses associated with our storage facilities and terminals as a result of our parents sale of assets.

During the third quarter of 2021, Green Plains Inc.s average production utilization rate was approximately 75.0% of capacity. Ethanol throughput was 182.3 million gallons, which was below the contracted minimum volume commitment. As a result, the partnership charged Green Plains Trade $1.9 million related to the minimum volume commitment deficiency for the quarter, resulting in a credit to be applied against potential excess volumes in future periods. The cumulative minimum volume deficiency credits available to Green Plains Trade as of September 30, 2021 totaled $7.2 million. If these credits are unused by Green Plains Trade, $1.1 million will expire on December 31, 2021, $2.8 million will expire on March 31, 2022, $1.4 million will expire on June 30, 2022 and $1.9 million will expire on September 30, 2022. 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 LPSELECTED OPERATING DATA(unaudited, in million gallons) Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 % Var. 2021 2020 % Var.Product volumes Storage andthroughput 182.3 189.6 (3.9 ) % 553.1 581.3 (4.9 ) %services Terminal services: Affiliate 22.1 24.5 (9.8 ) 62.1 79.3 (21.7 ) Non-affiliate 26.2 27.7 (5.4 ) 77.7 78.3 (0.8 ) 48.3 52.2 (7.5 ) 139.8 157.6 (11.3 ) Railcar capacitybilled (daily 68.6 81.5 (15.8 ) 70.3 80.4 (12.6 ) average)

Liquidity and Capital ResourcesTotal liquidity as of September 30, 2021 consisted of $14.2 million in cash and cash equivalents. Total debt outstanding was $59.6 million, net of debt issuance costs of $0.4 million.

Conference Call InformationOn November 4, 2021, 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 third quarter 2021 financial and operating results for each company. Domestic and international participants can access the conference call by dialing 877.711.2374 and 281.542.4862, respectively, and referencing conference ID 2049686. 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 MeasuresAdjusted EBITDA and distributable cash flow are supplemental financial measures used to assess the partnerships financial performance. Management believes adjusted EBITDA and distributable cash flow provide investors useful information in assessing the partnerships 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 partnerships 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 partnerships 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 partnerships results.

About Green Plains Partners LPGreen 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 StatementsThis news release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Forward-looking statements reflect managements 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 LPCONDENSED CONSOLIDATED BALANCE SHEETS(in thousands) September 30, December 31, 2021 2020ASSETS (unaudited) Current assets Cash and cash equivalents $ 14,201 $ 2,478 Accounts receivable, including from affiliates 13,555 14,744 Other current assets 982 772 Total current assets 28,738 17,994 Property and equipment, net 29,601 32,119 Operating lease right-of-use assets 41,890 40,604 Other assets 15,109 14,603 Total assets $ 115,338 $ 105,320 LIABILITIES AND PARTNERS' EQUITY (DEFICIT) Current liabilities Accounts payable, including to affiliates $ 4,647 $ 4,399 Operating lease current liabilities 12,133 11,506 Current maturities of long-term debt - 97,739 Other current liabilities 2,664 5,438 Total current liabilities 19,444 119,082 Long-term debt 59,579 - Asset retirement obligations 2,879 2,865 Operating lease long-term liabilities 30,794 29,835 Total liabilities 112,696 151,782 Partners' equity (deficit) 2,642 (46,462 )Total liabilities and partners' equity (deficit) $ 115,338 $ 105,320

GREEN PLAINS PARTNERS LPCONSOLIDATED STATEMENTS OF OPERATIONS(unaudited, in thousands except per unit amounts) Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 % Var. 2021 2020 % Var.Revenues Affiliate $ 18,221 $ 20,347 (10.4 ) % $ 56,061 $ 58,327 (3.9 ) %Non-affiliate 1,030 1,035 (0.5 ) 3,297 3,707 (11.1 ) Total revenues 19,251 21,382 (10.0 ) 59,358 62,034 (4.3 ) Operating expensesOperations andmaintenance(excludingdepreciation 5,161 6,647 (22.4 ) 17,153 19,410 (11.6 ) andamortizationreflectedbelow)General and 892 1,116 (20.1 ) 3,152 3,038 3.8 administrativeDepreciationand 1,089 940 15.9 2,771 2,867 (3.3 ) amortizationTotaloperating 7,142 8,703 (17.9 ) 23,076 25,315 (8.8 ) expensesOperating 12,109 12,679 (4.5 ) 36,282 36,719 (1.2 ) incomeInterest (2,781 ) (2,498 ) 11.3 (6,120 ) (6,182 ) (1.0 ) expenseIncome beforeincome taxesand income 9,328 10,181 (8.4 ) 30,162 30,537 (1.2 ) from equitymethodinvesteeIncome tax (77 ) (30 ) 156.7 (229 ) (166 ) 38.0 expenseIncome fromequity method 174 155 12.3 517 488 5.9 investeeNet income $ 9,425 $ 10,306 (8.5 ) % $ 30,450 $ 30,859 (1.3 ) % Net incomeattributableto partners' ownershipinterests:General $ 188 $ 206 (8.7 ) % $ 609 $ 617 (1.3 ) %partnerLimitedpartners - 9,237 10,100 (8.5 ) 29,841 30,242 (1.3 ) commonunitholders Earnings perlimitedpartner unit (basic anddiluted):Common units $ 0.40 $ 0.44 (9.1 ) % $ 1.29 $ 1.31 (1.5 ) % Weightedaveragelimitedpartner units outstanding(basic anddiluted):Common units 23,208 23,161 23,177 23,145 Supplemental Revenues Data:Storage andthroughput $ 11,564 $ 12,520 (7.6 ) % $ 35,389 $ 36,090 (1.9 ) %servicesRailcartransportation 4,688 5,538 (15.3 ) 14,525 16,036 (9.4 ) servicesTerminal 1,998 2,162 (7.6 ) 6,258 6,488 (3.5 ) servicesTrucking and 1,001 1,162 (13.9 ) 3,186 3,420 (6.8 ) otherTotal revenues $ 19,251 $ 21,382 (10.0 ) % $ 59,358 $ 62,034 (4.3 ) %

GREEN PLAINS PARTNERS LPCONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS(unaudited, in thousands) Nine Months Ended September 30, 2021 2020Cash flows from operating activities: Net income $ 30,450 $ 30,859 Noncash operating adjustments: Depreciation and amortization 2,771 2,867 Distribution from equity method investee - 1,000 Other 1,772 1,146 Net change in working capital (1,317 ) (1,595 )Net cash provided by operating activities 33,676 34,277 Cash flows from investing activities: Purchases of property and equipment (494 ) (117 )Disposition of assets 27,500 - Net cash provided by (used in) investing 27,006 (117 )activities Cash flows from financing activities: Payments of distributions (8,528 ) (16,958 )Net payments on revolving credit facility - (4,400 )Net payments on long-term debt (40,000 ) (9,500 )Payments of loan fees (436 ) (3,495 )Other 5 7 Net cash used in financing activities (48,959 ) (34,346 ) Net change in cash and cash equivalents 11,723 (186 )Cash and cash equivalents, beginning of period 2,478 261 Cash and cash equivalents, end of period $ 14,201 $ 75

GREEN PLAINS PARTNERS LPRECONCILIATIONS TO NON-GAAP FINANCIAL MEASURES(unaudited, in thousands except ratios) Three Months Ended Nine Months Ended LTM Ended September 30, September 30, September 30, 2021 2020 2021 2020 2021Net income $ 9,425 $ 10,306 $ 30,450 $ 30,859 $ 40,738 Interest 2,781 2,498 6,120 6,182 8,451 expense^ (1)Income tax 77 30 229 166 275 expenseDepreciationand 1,089 940 2,771 2,867 3,710 amortizationTransaction - - 5 - 30 costsUnit-basedcompensation 60 81 219 239 300 expenseProportionalshare ofEBITDAadjustments 45 43 139 137 183 of equitymethodinvestee ^(2)Adjusted 13,477 13,898 39,933 40,450 53,687 EBITDAInterest paid (1,781 ) (2,498 ) (5,120 ) (6,182 ) (7,451 )or payableIncome taxespaid or (77 ) (30 ) (229 ) (91 ) (275 )payableMaintenancecapital (137 ) (62 ) (139 ) (116 ) (204 )expendituresDistributablecash flow ^ $ 11,482 $ 11,308 $ 34,445 $ 34,061 $ 45,757 (3)Distributions $ 10,310 $ 2,848 $ 15,996 $ 8,520 $ 18,837 declared ^(4)Coverage 1.11x 3.97x 2.15x 4.00x 2.43x ratio (1) Includes $1.0 million in unamortized debt issuance costs written off uponextinguishment of debt for the three and nine months ended September 30, 2021.(2) Represents the partnership's proportional share of depreciation andamortization of its equity method investee.(3) Distributable cash flow does not include adjustments for the principalpayments on the term loan of $3.2 million and $50.0 million during the threeand nine months ended September 30, 2021, respectively.(4) Represents distributions declared for the applicable period and paid in thesubsequent quarter.

Green Plains ContactsInvestors: Phil Boggs | Executive Vice President, Investor Relations | 402.884.8700 | phil.boggs@gpreinc.comMedia: Lisa Gibson | Communications Manager | 402.952.4971 | lisa.gibson@gpreinc.com