Southwest Iowa Renewable Energy Announces End of Fiscal Year 2013 Financial Results

COUNCIL BLUFFS, Iowa, Nov. 14, 2013 /PRNewswire/ -- Southwest Iowa Renewable Energy, LLC ("SIRE")  announced its unaudited financial results for the three months and fiscal year ended September 30, 2013. 

(Logo: http://photos.prnewswire.com/prnh/20100806/AQ47222LOGO)

Results for the Fourth Quarter of Fiscal 2013

  • Net Income of $4,127,000 or $314.03 per unit
  • Gross Margin of $6,773,000
  • Adjusted EBITDA of $8,982,000

Results for the Full Year of Fiscal 2013

  • Net Loss of $5,479,000 or $416.97 per unit
  • Gross Margin of $7,131,000
  • Adjusted EBITDA of $19,010,000

SIRE reported net income of $4,127,000 or $314.03 per unit, and a net loss of $1,518,000 or $115.53 per unit for the three months ended September 30, 2013 and 2012, respectively. SIRE reported a net loss of $5,479,000 or $416.97 per unit, and a net loss of $662,000 or $50.35 per unit for the fiscal years ended September 30, 2013 ("Fiscal 2013") and 2012 ("Fiscal 2012"), respectively. 

Adjusted EBITDA, which is defined as earnings before interest, income taxes, depreciation, amortization,  and  unrealized hedging gains and losses was $8,982,000 and $1,103,000 for the three months ended September 30, 2013 and  2012, respectively.  Adjusted EBITDA was $19,010,000 and $12,824,000 for the fiscal years ended September 30, 2013 and 2012, respectively.  Our reconciliations of Adjusted EBITDA to net income are included in "Adjusted EBITDA" section below.

SIRE had $12.4 million in cash and cash equivalents and $18.1 million available under revolving loan agreements, for a total cash and available borrowings of $30.5 million at September 30, 2013. The cash flow from operations was $21.7 million compared to $8.5 million for the fiscal years ended September 30, 2013 and 2012, respectively. 

Brian Cahill, SIRE's President and CEO stated, "The fundamentals in the industry are as positive as we have seen in recent history.  We experienced and managed through the significant price volatility for corn at the end of the 2012 crop year, with US corn production recovering well after the 2012 drought.  The USDA now estimates the 2013 corn harvest to be 13.899 billion bushels, a record volume. Corn prices have retreated back below $4.50, which is a significant improvement over this past year's prices." 

During the fourth quarter of Fiscal 2013, SIRE produced 31.7 million gallons of ethanol, approximately 101% of its production capacity.  For the 2013 calendar year, SIRE produced 111.0 million gallons, or 89% of its permitted capacity, having slowed production dramatically during the first and second quarters.  Cahill commented - "We continue to focus on running the plant at full capacity, with a balance of optimizing the yield and profit."

SIRE's cash flow for Fiscal 2013 resulted in net cash flows provided by operations of $21.7 million.  During Fiscal 2013, SIRE continued to meet all debt obligations, with a net pay down of $16.03 million in bank debt.  Due to the fact that all of SIRE's debt has balloon payments in August, 2014, GAAP accounting requires all of this debt to be classified as current.  Recognizing this as purely a calendar function, the banking group waived SIRE's reporting of working capital for the next year, to compensate for this function.

During Fiscal 2013, SIRE solidified its advantage of  having a dual-powered ethanol plant, capable of heating with natural gas, or with steam from the nearby power plant, by updating the pricing formula in its contract with MidAmerican Energy.  SIRE also signed an agreement with AirProducts, to provide up to 400 tons per day of CO2, beginning in 2014.  During Fiscal 2013, SIRE also completed its Distilled Spirits Permit (DSP) application and installed the necessary ethanol load out equipment allowing the Company to sell undenatured ethanol.

About Southwest Iowa Renewable Energy, LLC:

SIRE, LLC is located on 275 acres in Council Bluffs, Iowa, operating a 125 million gallon 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

Statements of Operations

Unaudited

(Dollars in thousands)


For the twelve months ended September 30,


For the three months ended September 30,


2013


2012


2013


2012

Revenues

$

350,194


$

362,876


$

102,198


$

97,979

Cost of Goods Sold

343,063


349,812


95,425


96,410

Gross Margin

7,131


13,064


6,773


1,569









General and administrative expenses

3,966


4,533


1,036


1,155

Operating Income

3,165


8,531


5,737


414









Interest expense

(9,364)


(10,176)


(2,254)


(2,834)

Other income

720


983


644


902

Net (Loss)

$

(5,479)


$

(662)


$

4,127


$

(1,518)









Weighted Average Units Outstanding

13,140


13,139


13,142


13,139

Net (loss) per unit, basic & diluted

$

(416.97)


$

(50.35)


$

314.03


$

(115.53)

EBITDA

Management uses Adjusted EBITDA, a non-GAAP measure, to measure the Company's financial performance and to internally manage its business.  Management believes that Adjusted EBITDA provides useful information to investors as a measure of comparison with peer and other companies.  Adjusted EBITDA should not be considered an alternative to, or more meaningful than, net income or cash flow as determined in accordance with generally accepted accounting principles.  Adjusted EBITDA calculations may vary from company to company.  Accordingly, our computation of Adjusted EBITDA may not be comparable with a similarly-titled measure of another company. The following sets forth the reconciliation of Net Income (Loss) to Adjusted EBITDA for the periods indicated:


For the three months ended


For the twelve months ended


September 30, 2013


September 30, 2012


September 30, 2013


September 30, 2012


Unaudited


Unaudited


Unaudited




in 000's


in 000's


in 000's


in 000's









Net Income (Loss)

$

4,127


$

(1,518)


(5,479)


(662)

Interest expense, net

2,253


2,831


9,356


10,156

Depreciation & Amortization

2,841


2,827


11,387


11,393

EBITDA

9,221


4,140


15,264


20,887









Unrealized Hedging (gain) loss

(239)


(3,037)


3,746


(8,063)









Adjusted EBITDA

$

8,982


$

1,103


$

19,010


$

12,824









Adjusted EBITDA per unit

$

683.56


$

83.95


$

1,446.73


$

976.02

 

 

Statistical Information



For the three months ended


For the twelve months


September 30, 2013


September 30, 2012


September 30, 2013


September 30, 2012


Gallons/Tons Sold


Gallons/Tons Sold


Gallons/Tons Sold


Gallons/Tons Sold

Statistical Information








Denatured & undenatured Ethanol (thousands of gallons)

33,675


30,275


111,830


122,627

Distiller's Grains (tons)

109,799


104,464


384,700


404,531

Corn Ground (thousands of bushels)

11,161


10,927


39,291


43,597

 

 

Summary Balance Sheets

(Dollars in thousands)



September 30, 2013


September 30, 2012


(unaudited)







ASSETS




Current Assets




Cash & restricted cash

$

12,740


$

6,587

Accounts receivable

11,163


12,356

Inventory

8,445


12,427

Other current assets

1,205


5,383

Total current assets

33,553


36,753

Net property and equipment

143,184


153,733

Other assets

1,689


1,897

Total Assets

$

178,426


$

192,383





LIABILITIES AND MEMBERS' EQUITY




Current Liabilities




Accounts payable and accrued expenses

$

12,330


$

9,797

Current maturities of notes payable

123,887


20,001

Total current liabilities

136,217


29,798

Total long term liabilities

612


115,523

Total members' equity

41,597


47,062

Total Liabilities and Members' Equity

$

178,426


$

192,383

 

SOURCE Southwest Iowa Renewable Energy, LLC




Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

 

PR Newswire Membership

Fill out a PR Newswire membership form or contact us at (888) 776-0942.

Learn about PR Newswire services

Request more information about PR Newswire products and services or call us at (888) 776-0942.