GlobeNewswire Inc | Aug 3, 2020 04:31PM EDT

August 03, 2020

Results for the Second Quarter of 2020

-- Net income of $10.2 million, or $0.43 per common unit -- Adjusted EBITDA of $13.2 million and distributable cash flow of $11.3 million -- Quarterly cash distribution of $0.12 per unit -- Distribution coverage ratio of 3.99x, LTM distribution coverage ratio of 1.59x -- Completed $135 million debt financing

OMAHA, Neb., Aug. 03, 2020 (GLOBE NEWSWIRE) -- Green Plains Partners LP (NASDAQ:GPP) today announced financial and operating results for the second quarter of 2020. Net income attributable to the partnership was $10.2 million, or $0.43 per common unit, for the second quarter of 2020 compared with net income of $10.7 million, or $0.45 per common unit, for the same period in 2019.

The partnership also reported adjusted EBITDA of $13.2 million and distributable cash flow of $11.3 million for the second quarter of 2020, compared with adjusted EBITDA of $13.9 million and distributable cash flow of $11.7 million for the same period in 2019. Distribution coverage was 3.99x for the three months ended June 30, 2020 as compared to 1.04x for the same period a year ago.

Green Plains Partners continues to generate consistent and strong financial results and cash flows through long term minimum volume commitments and a stable logistics business, said Todd Becker, president and chief executive officer. We continue to demonstrate the resiliency of our business model as we delivered solid results for unit holders and were pleased to have completed our loan refinancing during the quarter. We remain focused on further deleveraging the partnership through the repayment of debt, which should ultimately accrue to the benefit of all stakeholders.

Second Quarter Highlights and Recent Developments

-- On June 4, 2020, the partnership refinanced its debt facility into a $130.0 million term loan and a $5.0 million revolving credit facility, maturing December 31, 2021. -- On July 16, 2020, the board of directors of the partnerships general partner declared a quarterly cash distribution of $0.12 per unit, or approximately $2.8 million, for the second quarter of 2020. The distribution is payable on August 7, 2020, to unitholders of record at the close of business on July 31, 2020.

Results of OperationsConsolidated revenues decreased $0.4 million for the three months ended June 30, 2020, compared with the same period for 2019. Terminal services revenue decreased $0.3 million primarily as result of a decrease in fees associated with minimum volume commitments. Revenues generated from railcar transportation services decreased $0.1 million primarily due to lower sublease revenue.

Operations and maintenance expenses increased $0.4 million to $6.6 million for the three months ended June 30, 2020, compared with the same period for 2019, primarily due to an increase in railcar lease expense as well as accretion expense associated with asset retirement obligations. General and administrative expenses decreased $0.1 million to $0.9 million for the three months ended June 30, 2020, compared with the same period for 2019, primarily due to a reduction in accounting fees.

During the second quarter of 2020, our parents average biofuel production utilization rate decreased to approximately 53.5% of capacity, primarily due to lower margins driven by a significant reduction in motor fuel demand as a result of the COVID-19 pandemic. Biofuel throughput was 150.1 million gallons, compared with the contracted minimum volume commitment of 235.7 million gallons per quarter. As a result, the partnership charged Green Plains Trade $4.3 million related to the minimum volume commitment deficiency for the quarter, resulting in a credit to be applied against excess volumes in future periods. This credit will expire by June 30, 2021, if unused by Green Plains Trade. The deficiency charge was recognized in revenue by the partnership for the three months ended June 30, 2020, and as such, future volumes throughput by Green Plains Trade in excess of the quarterly minimum volume commitment, up to the amount of $4.3 million, 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 Six Months Ended June 30, June 30, 2020 2019 % Var. 2020 2019 % Var.Product volumes Storage andthroughput 150.1 225.1 (33.3 ) % 391.7 380.8 2.9 %services Terminal services: Affiliate 22.3 29.8 (25.2 ) 54.8 54.6 0.4 Non-affiliate 24.1 27.2 (11.4 ) 50.6 52.8 (4.2 ) 46.4 57.0 (18.6 ) 105.4 107.4 (1.9 ) Railcar capacitybilled (daily 80.9 81.1 (0.2 ) 79.8 82.3 (3.0 ) average)

Liquidity and Capital ResourcesTotal liquidity as of June 30, 2020, was $8.0 million, including $3.0 million in cash and cash equivalents, and $5.0 million available under the partnerships revolving credit facility.

Conference Call InformationOn August 4, 2020, 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 2020 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 3141408. 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 financings, unit-based compensation expense, net gains or losses on asset sales and the partnerships proportional share of EBITDA adjustments of 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 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 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 diversified commodity-processing business with operations that include corn processing, grain handling and storage and commodity marketing and logistics services. The company is one of the leading corn processors in the world and, through its adjacent businesses, is focused on the production of sustainable biofuels and sustainable high-protein and novel feed ingredients. Green Plains owns a 50% interest in Green Plains Cattle Company LLC and owns a 49.0% limited partner interest and a 2.0% general partner interest in Green Plains Partners. For more information about Green Plains, 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) June 30, December 31, 2020 2019ASSETS (unaudited) Current assets Cash and cash equivalents $ 3,037 $ 261 Accounts receivable, including from affiliates 16,860 16,651 Other current assets 1,286 517 Total current assets 21,183 17,429 Property and equipment, net 35,953 37,355 Operating lease right-of-use assets 33,897 35,456 Other assets 14,278 15,413 Total assets $ 105,311 $ 105,653 LIABILITIES AND PARTNERS' DEFICIT Current liabilities Accounts payable, including to affiliates $ 5,690 $ 5,593 Operating lease current liabilities 11,865 13,093 Current maturities of long-term debt 36,334 132,100 Other current liabilities 4,174 5,026 Total current liabilities 58,063 155,812 Long-term debt 90,576 - Operating lease long-term liabilities 23,214 23,088 Asset retirement obligations 2,610 2,500 Total liabilities 174,463 181,400 Partners' deficit (69,152 ) (75,747 )Total liabilities and partners' deficit $ 105,311 $ 105,653

GREEN PLAINS PARTNERS LPCONSOLIDATED STATEMENTS OF OPERATIONS(unaudited, in thousands except per unit amounts) Three Months Ended Six Months Ended June 30, June 30, 2020 2019 % Var. 2020 2019 % Var.Revenues Affiliate $ 18,997 $ 19,133 (0.7 ) % $ 37,980 $ 37,915 0.2 %Non-affiliate 1,384 1,692 (18.2 ) 2,672 3,997 (33.1 ) Total revenues 20,381 20,825 (2.1 ) 40,652 41,912 (3.0 ) Operating expenses Operations andmaintenance(excluding 6,603 6,233 5.9 12,763 13,098 (2.6 ) depreciation andamortizationreflected below)General and 878 988 (11.1 ) 1,922 2,105 (8.7 ) administrativeDepreciation and 966 771 25.3 1,927 1,756 9.7 amortizationTotal operating 8,447 7,992 5.7 16,612 16,959 (2.0 ) expensesOperating income 11,934 12,833 (7.0 ) 24,040 24,953 (3.7 ) Other income (expense)Interest income - 20 * - 40 * Interest expense (1,820 ) (2,166 ) (16.0 ) (3,684 ) (4,221 ) (12.7 ) Other - (73 ) * - (73 ) * Total other expense (1,820 ) (2,219 ) (18.0 ) (3,684 ) (4,254 ) (13.4 ) Income beforeincome taxes and 10,114 10,614 (4.7 ) 20,356 20,699 (1.7 ) income from equitymethod investeeIncome tax expense (105 ) (47 ) 123.4 (136 ) (99 ) 37.4 Income from equity 175 142 23.2 333 357 (6.7 ) method investeeNet income $ 10,184 $ 10,709 (4.9 ) % $ 20,553 $ 20,957 (1.9 ) % Net incomeattributable to partners' ownershipinterests:General partner $ 204 $ 213 (4.2 ) % $ 411 $ 418 (1.7 ) %Limited partners - 9,980 10,496 (4.9 ) 20,142 20,539 (1.9 ) common unitholders Earnings perlimited partner unit (basic anddiluted):Common units $ 0.43 $ 0.45 (4.4 ) % $ 0.87 $ 0.89 (2.2 ) % Weighted averagelimited partnerunits outstanding (basic anddiluted):Common units 23,138 23,120 23,138 23,119 Supplemental Revenues Data:Storage and $ 11,785 $ 11,785 - % $ 23,570 $ 23,570 - %throughput servicesRailcartransportation 5,374 5,505 (2.4 ) 10,498 11,124 (5.6 ) servicesTerminal services 2,132 2,413 (11.6 ) 4,326 5,201 (16.8 ) Trucking and other 1,090 1,122 (2.9 ) 2,258 2,017 11.9 Total revenues $ 20,381 $ 20,825 (2.1 ) % $ 40,652 $ 41,912 (3.0 ) % * Percentagevariance not consideredmeaningful.

GREEN PLAINS PARTNERS LPCONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS(unaudited, in thousands) Six Months Ended June 30, 2020 2019Cash flows from operating activities: Net income $ 20,553 $ 20,957 Noncash operating adjustments: Depreciation and amortization 1,927 1,756 Distribution from equity method investee 1,000 - Other 589 265 Net change in working capital (1,825 ) 978 Net cash provided by operating activities 22,244 23,956 Cash flows from investing activities: Purchases of property and equipment, net (54 ) 82 Net cash provided by (used in) investing (54 ) 82 activities Cash flows from financing activities: Payments of distributions (14,116 ) (22,538 )Net payments on credit facility (2,100 ) (1,800 )Payments of loan fees (3,198 ) - Net cash used in financing activities (19,414 ) (24,338 ) Net change in cash and cash equivalents 2,776 (300 )Cash and cash equivalents, beginning of period 261 569 Cash and cash equivalents, end of period $ 3,037 $ 269

GREEN PLAINS PARTNERS LPRECONCILIATIONS TO NON-GAAP FINANCIAL MEASURES(unaudited, in thousands except ratios) Three Months Ended Six Months Ended LTM Ended June 30, June 30, June 30, 2020 2019 2020 2019 2020Net income $ 10,184 $ 10,709 $ 20,553 $ 20,957 $ 41,075 Interest 1,820 2,166 3,684 4,221 7,773 expenseIncome tax 105 47 136 99 257 expenseDepreciationand 966 771 1,927 1,756 3,612 amortizationUnit-basedcompensation 79 79 158 158 319 expenseLoss (gain)on the - 73 - 73 (87 )disposal ofassetsProportionalshare ofEBITDAadjustments 44 43 94 109 181 of equitymethodinvestee ^(1)Adjusted 13,198 13,888 26,552 27,373 53,130 EBITDAInterest paid (1,820 ) (2,166 ) (3,684 ) (4,221 ) (7,773 )or payableIncome taxespaid or (30 ) (43 ) (61 ) (96 ) (203 )payableMaintenancecapital (32 ) - (54 ) - (148 )expendituresDistributable $ 11,316 $ 11,679 $ 22,753 $ 23,056 $ 45,006 cash flowDistributions $ 2,836 $ 11,280 $ 5,672 $ 22,549 $ 28,232 declared ^(2)Coverage 3.99x 1.04x 4.01x 1.02x 1.59x ratio (1) Represents the partnership's proportional share of depreciation andamortization of its equity method investee.(2) Represents distributions declared for the applicable period and paid inthe subsequent quarter.

Green Plains Inc. ContactsInvestors: Phil Boggs | Senior Vice President, Investor Relations & Treasurer | 402.884.8700 | phil.boggs@gpreinc.comMedia Leighton Eusebio | Manager, Public Relations | 402.952.4971 | leighton.eusebio@gpreinc.com