2014

Southwest Iowa Renewable Energy, LLC Announces FY2012 Results

COUNCIL BLUFFS, Iowa, Dec. 19, 2012 /PRNewswire/ -- On December 19, 2012, Southwest Iowa Renewable Energy, LLC ("SIRE") announced its financial results for the fiscal year ended September 30, 2012 ("Fiscal 2012").  SIRE reported a net loss of $661,609 or $50.35 per unit, compared to a net loss of $2,707,306 or $206.05 per unit for the fiscal year ended September 30, 2011 ("Fiscal 2011").  The cash flow from operations for Fiscal 2012 was $8,463,759 compared to $25,307,440 for Fiscal 2011; with the overall cash flow for Fiscal 2012 of ($4,722,653) as compared to $7,574,046 for Fiscal 2011.

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

Adjusted EBITDA, which is defined as earnings before interest, income taxes, and depreciation and/or amortization, or EBITDA, as adjusted for unrealized hedging losses (gains) was $12,823,990 for Fiscal 2012 and $26,297,767 for Fiscal 2011.  SIRE had $6.29 million in cash and equivalents and $9.125 million available under committed loan agreements (subject to satisfaction of specified lending conditions and covenants) as well as an additional $6.25 million available under uncommitted loan agreements at September 30, 2012.  For reconciliations of Adjusted EBITDA to net income attributable to SIRE, see "Adjusted EBITDA" below.

Brian Cahill, SIRE's President and CEO, stated, "As we look back on Fiscal 2012, we made strong strides in improving our operations through increased output and lower costs and greatly reducing our net loss in the midst of quickly rising commodity market prices.  At the same time, we made another significant net reduction in our debt.  The continuing improvement in the cash flow from operations allowed us to have a net reduction of approximately $7.7 million on our debt during the year ended September 30, 2012."

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 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 - September 30, 2012 and 2011

(Dollars in thousands)




Year Ended



Year Ended




September 30, 2012



September 30, 2011

ASSETS







Current Assets







Cash and cash equivalents


$

6,285


$

11,007

Restricted cash



302



301

Accounts receivable



268



224

Accounts receivable, related party



12,088



17,642

Derivative financial instruments



976



553

Inventory



12,427



11,198

Derivative financial instruments, related party



4,013



-

Prepaid expenses and other



394



1,107

Total current assets



36,753



42,032








Property, Plant and Equipment







Land



2,064



2,064

Plant, building and equipment



204,597



203,750

Office and other equipment



751



742




207,412



206,556

Accumulated depreciation



(53,679)



(42,293)

Net property and equipment



153,733



164,263








Other Assets







Financing costs, net of amortization of



1,001



1,539

 $3,202 and $2,341, respectively







Other assets



896



-




1,897



1,539

Total Assets


$

192,383


$

207,834








LIABILITIES AND MEMBERS' EQUITY







Current Liabilities







Accounts payable


$

1,366


$

2,090

Accounts payable, related parties



3,937



5,239

Derivative financial instruments, related party



-



2,097

Accrued expenses



2,837



2,615

Accrued expenses, related parties



1,657



3,832

Current maturities of notes payable



20,001



21,237

Total current liabilities



29,798



37,110








Long Term Liabilities







Notes payable, less current maturities



115,023



121,400

Other long-term  liabilities



500



600

Total long term liabilities



115,523



122,000

Commitments and Contingencies














Members' Equity







     Members' capital







13,139 Units issued and outstanding



76,474



76,474

Accumulated profit (deficit)



(29,412)



(27,750)

Total members' equity



47,062



48,724

Total Liabilities and Members' Equity


$

192,383


$

207,834

 

Financial Results

 







SOUTHWEST IOWA RENEWABLE  ENERGY, LLC





Statement of Operations







(Dollars in thousands)

















Year Ended



Year Ended




September 30, 2012



September 30, 2011








Revenues


$

362,876


$

333,089

Cost of Goods Sold







Cost of goods sold-non hedging



357,579



327,924

Realized & unrealized hedging (gains)



(7,767)



(6,325)




349,812



321,599








Gross Margin



13,064



11,490








General and administrative expenses



4,533



4,357








Operating Income



8,531



7,133








Other Income (Expense)







Interest income



20



18

Other income



963



44

Interest expense



(10,176)



(9,902)




(9,193)



(9,840)








Net (Loss)


$

(662)


$

(2,707)








Weighted Average Units Outstanding



13,139



13,139

Net (loss) per unit, basic & diluted


$

(50.35)


$

(206.05)

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 Loss to Adjusted EBITDA for the periods indicated:






Fiscal 2012


Fiscal 2011


Amounts


Amounts


in 000's


in 000's

Net Loss

(662)


(2,707)

Interest Expense

10,156


9,884

Depreciation

11,393


13,536

EBITDA

20,887


20,713





Unrealized Hedging (gain) loss

(8,063)


5,585





Adjusted EBITDA

12,824


26,298





Adjusted EBITDA  per unit

976.02


2,001.50

Statistical Information














Fiscal 2012


Fiscal 2011


Gallons/Tons Sold


% of Revenues


Gallons/Tons Average Price


Gallons/Tons Sold


% of Revenues


Gallons/Tons Average Price

Statistical Revenue Information












Denatured Ethanol

122,626,702


76.460%


$                 2.26


114,506,382


81.223%


$               2.36

Dry Distiller's Grains

293,806


17.472%


$                  216


305,929


15.888%


$                173

Wet Distiller's Grains

110,725


2.862%


$                    94


43,877


0.959%


$                  73

Syrup

29,522


0.443%


$                    54


62,158


0.357%


$                  19

Corn Oil

13,382


2.763%


$                  749


5,858


1.573%


$                894

SOURCE Southwest Iowa Renewable Energy, LLC



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