Southwest Iowa Renewable Energy, LLC Announces First Quarter FY2013 Results

COUNCIL BLUFFS, Iowa, Feb. 15, 2013 /PRNewswire/ -- On February 14, 2013, Southwest Iowa Renewable Energy, LLC ("SIRE") announced its unaudited financial results for the first quarter of fiscal year 2013 ("Fiscal 2013") which ended December 31, 2012.  SIRE reported a net loss of $8,683,000, or $660.83 per unit, compared to a net profit of $8,996,000, or $684.62 per unit, for the first quarter of fiscal year 2012 ("Fiscal 2012") which ended December 31, 2011.  The cash flow provided by operations for the first quarter of Fiscal 2013 was $1,097,000, compared to $7,141,000 for the same period in Fiscal 2012.

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

Adjusted EBITDA, which is defined as earnings before interest, income taxes, and depreciation and/or amortization ("EBITDA"), as adjusted for unrealized hedging losses (gains), was a loss of $1,259,000 for the first quarter of Fiscal 2013 and a gain of $10,014,000 for the same period in Fiscal 2012.  At December 31, 2012, SIRE had $12,391,000 in cash and equivalents and $5,555,000 available under committed loan agreements (subject to satisfaction of specified lending conditions and covenants).  For reconciliations of Adjusted EBITDA to net income attributable to SIRE, see "Adjusted EBITDA" below.

Brian Cahill, SIRE's General Manager and CEO, stated, "Our first quarter in Fiscal 2013 reflects the continuing margin compression resulting from the relative high prices of our primary input and low prices our primary product during the quarter.  In particular, the key factors during the quarter were relatively high prices compared to previous years of our primary input,  corn, resulting from the drought conditions in the United States. In addition, pricing pressures have continued to depress ethanol prices. Notwithstanding these margins, we have continued to make scheduled payments to our banks, resulting in further principal reduction in overall debt and reduced interest costs.  We have also continued to make modest capital investments that are resulting in incremental productivity improvements in our plant."

About Southwest Iowa Renewable Energy, LLC:

SIRE is an Iowa limited liability company, located in Council Bluffs, Iowa, formed in March, 2005 to construct and operate a 110 million gallon name plate capacity ethanol plant.  SIRE began producing ethanol in February, 2009 and sells its ethanol, modified wet distillers grains with solubles, corn syrup, and corn oil in the continental United States.   SIRE also sells its dried distillers grains with solubles 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 for the fiscal year ended September 30, 2012, 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 (the "1933 Act") and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act").  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.


 

 

Summary Balance Sheets









SOUTHWEST IOWA RENEWABLE ENERGY, LLC

Balance Sheets

(Dollars in thousands)








ASSETS



December 31, 2012



September 30, 2012




(Unaudited)




Current Assets







Cash and cash equivalents


$

12,391


$

6,285

Restricted cash



303



302

Accounts receivable



145



268

Accounts receivable, related party



8,108



12,088

Derivative financial instruments



1,282



976

Inventory



12,224



12,427

Derivative financial instruments, related party



674



4,013

Prepaid expenses and other



875



394

Total current assets



36,002



36,753








Property, Plant and Equipment







Land



2,064



2,064

Plant, building and equipment



204,493



204,597

Office and other equipment



751



751




207,308



207,412

Accumulated depreciation



(56,449)



(53,679)

Net property and equipment



150,859



153,733








Other Assets







Financing costs, net of amortization of



866



1,001

 $3,337 and $3,202, respectively







Other assets



896



896




1,762



1,897

Total Assets


$

188,623


$

192,383











 

 

Summary Balance Sheets








SOUTHWEST IOWA RENEWABLE ENERGY, LLC

Balance Sheets

(Dollars in thousands)








LIABILITIES AND MEMBERS' EQUITY



December 31, 2012



September 30, 2012




(Unaudited)




Current Liabilities







Accounts payable


$

1,114


$

1,366

Accounts payable, related parties



3,737



3,937

Accrued expenses



2,379



2,837

Accrued expenses, related parties



2,466



1,657

Current maturities of notes payable



28,367



20,001

Total current liabilities



38,063



29,798








Long Term Liabilities







Notes payable, less current maturities



111,706



115,023

Other long-term liabilities



475



500

Total long term liabilities



112,181



115,523

Commitments and Contingencies














Members' Equity







     Members' capital







13,139 Units issued and outstanding



76,474



76,474

Accumulated profit (deficit)



(38,095)



(29,412)

Total members' equity



38,379



47,062

Total Liabilities and Members' Equity


$

188,623


$

192,383


 

 

Financial Results








SOUTHWEST IOWA RENEWABLE ENERGY, LLC

Statements of Operations

(Dollars in thousands)

(Unaudited)











Three Months Ended



Three Months Ended




December 31, 2012



December 31, 2011








Revenues


$

74,327


$

95,197

Cost of Goods Sold







Cost of goods sold-non hedging



78,287



85,817

Realized & unrealized hedging (gains) losses



1,293



(3,391)




79,580



82,426








Gross Margin (Loss)



(5,253)



12,771








General and administrative expenses



1,057



1,313








Operating Income (Loss)



(6,310)



11,458








Other Income (Expense)







Interest and other income



20



12

Interest expense



(2,393)



(2,474)




(2,373)



(2,462)








Net Income (Loss)


$

(8,683)


$

8,996








Weighted Average Units Outstanding



13,139



13,139

Net Income (loss) per unit, basic & diluted


$

(660.83)


$

684.62


 

Adjusted EBITDA

Management uses Adjusted EBITDA, a non-GAAP measure, to measure the SIRE'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 Loss to Adjusted EBITDA (unaudited) for the periods indicated:






December 31, 2012


December 31, 2011


Amounts


Amounts


in 000's


in 000's

EBITDA




Net Income (Loss)

(8,683)


8,996

Interest Expense, interest income, and other income

2,373


2,462

Depreciation & Amortization

2,984


2,959

EBITDA (Loss)

(3,326)


14,417





Change in Unrealized Hedging (gain) loss

2,067


(4,403)





Adjusted EBITDA (Loss)

(1,259)


10,014





Adjusted EBITDA (Loss) per unit

(95.84)


762.15

 

 

Statistical Information














December 31, 2012


December 31, 2011


Gallons/Tons Sold


% of Revenues


Gallons/Tons Average Price


Gallons/Tons Sold


% of Revenues


Gallons/Tons Average Price













Denatured Ethanol

24,580,450


73.953%


$                 2.24


30,873,285


80.475%


$               2.48

Dry Distiller's Grains

50,043


17.483%


$             259.67


70,376


14.611%


$           197.64

Wet Distiller's Grains

29,740


5.002%


$             125.01


23,332


2.017%


$             82.29

Syrup

5,211


0.620%


$               88.41


11,655


0.469%


$             38.30

Corn Oil

2,949


2.942%


$             741.60


2,805


2.429%


$           824.29

 

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.