Southwest Iowa Renewable Energy, LLC Announces Results of Second Quarter 2013

COUNCIL BLUFFS, Iowa, May 15, 2013 /PRNewswire/ -- On May 15, 2013, Southwest Iowa Renewable Energy, LLC ("SIRE") announced its financial results for the three and six months ended March 31, 2013.  SIRE reported a net loss of $2,424,000 or $184.49 per unit, compared to a net loss of $3,987,000 or $303.42 per unit for the three months ended March 31, 2013 and 2012, respectively.  The cash flow from operations was $405,000 compared to $13,060,000 for the six months ended March 31, 2013 and 2012, respectively; with the overall cash flow for the six months ended March 31, 2013 of $5,645,000 compared to ($934,000) for the six months ended March 31, 2012.

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 $4,172,000 for the three months ended March 31, 2013 and $967,000 for the three months ended March 31, 2012.  SIRE had $11.93 million in cash and equivalents and $3.124 million available under committed loan agreements (subject to satisfaction of specified lending conditions and covenants) at March 31, 2013.  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 the three months ended March 31, 2013, we made strong strides in improving our operations through lower costs and greatly reducing our net loss by bringing our production back up to capacity. We will closely monitor the moisture conditions, corn availability and ethanol market price conditions and adjust our production accordingly."

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
(Dollars in thousands)


ASSETS

March 31, 2013


September 30, 2012


(Unaudited)



Current Assets




Cash and cash equivalents

$

11,930



$

6,285


Restricted cash

303



302


Accounts receivable

271



268


Accounts receivable, related party

11,295



12,088


Derivative financial instruments

956



976


Inventory

15,519



12,427


Derivative financial instruments, related party



4,013


Prepaid expenses and other

817



394


Total current assets

41,091



36,753






Property, Plant and Equipment




Land

2,064



2,064


Plant, building and equipment

204,598



204,597


Office and other equipment

751



751



207,413



207,412


Accumulated depreciation

(59,298)



(53,679)


Net property and equipment

148,115



153,733






Other Assets




Financing costs, net of amortization of $3,472 and  $3,202, respectively

731



1,001


Other assets

896



896



1,627



1,897


Total Assets

$

190,833



$

192,383








SOUTHWEST IOWA RENEWABLE ENERGY, LLC

Balance Sheets

(Dollars in thousands)


LIABILITIES AND MEMBERS' EQUITY

March 31, 2013


September 30, 2012


(Unaudited)



Current Liabilities




Accounts payable

$

1,015



$

1,366


Accounts payable, related parties

6,046



3,937


Derivative financial instruments, related party

978




Accrued expenses

2,738



2,837


Accrued expenses, related parties

1,347



1,657


Current maturities of notes payable

30,448



20,001


Total current liabilities

42,572



29,798






Long Term Liabilities




Notes payable, less current maturities

111,856



115,023


Other long-term  liabilities

450



500


Total long term liabilities

112,306



115,523














Members' Equity




Members' capital




13,139 Units issued and outstanding

76,474



76,474


Accumulated (deficit)

(40,519)



(29,412)


Total members' equity

35,955



47,062






Total Liabilities and Members' Equity

$

190,833



$

192,383







Financial Results


SOUTHWEST IOWA RENEWABLE ENERGY, LLC

Statements of Operations

(Dollars in thousands)

(Unaudited)


Three Months
Ended


Three Months
Ended


Six Months
Ended


Six Months
Ended


March 31, 2013


March 31, 2012


March 31, 2013


March 31, 2012









Revenues

$

79,197



$

89,880



$

153,524



$

185,077


Cost of Goods Sold








Cost of goods sold-non hedging

76,839



90,795



155,126



176,612


Realized & unrealized hedging (gains) losses

1,486



(346)



2,779



(3,737)



78,325



90,449



157,905



172,875










Gross Margin (Loss)

872



(569)



(4,381)



12,202










General and administrative expenses

931



1,017



1,988



2,330










Operating Income (Loss)

(59)



(1,586)



(6,369)



9,872










Other Income (Expense)








Interest and other income

36



58



56



70


Interest expense

(2,401)



(2,459)



(4,794)



(4,933)



(2,365)



(2,401)



(4,738)



(4,863)










Net Income (Loss)

$

(2,424)



$

(3,987)



$

(11,107)



$

5,009










Weighted Average Units Outstanding

13,139



13,139



13,139



13,139


Net Income (loss) per unit, basic & diluted

(184.49)



(303.42)



(845.35)



381.20











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:

Adjusted EBITDA to net income (loss) for the three months ended March 31, 2013 and March 31, 2012 


For the three months


For the three months


March 31, 2013


March 31, 2012


Amounts


Amounts


in 000's


in 000's

EBITDA




Net (Loss)

(2,424)



(3,987)


Interest Expense, interest income, and other income

2,229



2,280


Depreciation & Amortization

2,984



2,975


EBITDA

2,789



1,268






Unrealized Hedging (gain) loss

1,383



(301)






Adjusted EBITDA

4,172



967






Adjusted EBITDA per unit

317.52



73.60


Adjusted EBITDA to net income (loss) for the six months ended March 31, 2013 and March 31, 2012 




For the six months


For the six months


March 31, 2013


March 31, 2012


Amounts


Amounts


in 000's


in 000's

EBITDA




Net Income (Loss)

(11,107)



5,009


Interest Expense, interest income, and other income

4,468



4,637


Depreciation & Amortization

5,968



5,933


EBITDA (Loss)

(671)



15,579






Unrealized Hedging (gain) loss

3,450



(4,704)






Adjusted EBITDA (Loss)

2,779



10,875






Adjusted EBITDA  (Loss) per unit

211.51



827.69


 

Statistical Information



For the three months ended


For the three months ended




March 31, 2013


March 31, 2012




Gallons/Tons Sold


% of Revenues


Gallons/Tons Average Price


Gallons/Tons Sold


% of Revenues


Gallons/Tons Average Price

Statistical Revenue Information












Denatured Ethanol

24,653,572



72.96

%


$

2.34



32,742,534



76.95

%


$

2.11


Dry Distiller's Grains

56,437



18.73

%


$

262.87



79,454



17.23

%


$

194.89


Wet Distiller's Grains

37,642



5.10

%


$

107.24



28,208



2.75

%


$

85.72


Syrup

10,253



0.97

%


$

74.71



6,833



0.44

%


$

58.32


Corn Oil

2,464



2.24

%


$

720.46



3,433



2.63

%


$

688.18











































For the six months ended


For the six months ended




March 31, 2013


March 31, 2012




Gallons/Tons Sold


% of Revenues


Gallons/Tons Average Price


Gallons/Tons Sold


% of Revenues


Gallons/Tons Average Price

Statistical Revenue Information












Denatured Ethanol

49,234,021



73.44

%


$

2.29



63,615,819



78.76

%


$

2.29


Dry Distiller's Grains

106,479



18.13

%


$

261.37



149,830



15.88

%


$

196.18


Wet Distiller's Grains

67,382



5.05

%


$

115.08



51,540



2.37

%


$

85.16


Syrup

15,465



0.80

%


$

79.32



18,488



0.46

%


$

45.70


Corn Oil

5,413



2.58

%


$

732.01



6,238



2.53

%


$

749.38


SOURCE Southwest Iowa Renewable Energy, LLC




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