2014

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

COUNCIL BLUFFS, Iowa, Aug. 14, 2013 /PRNewswire/ -- On August 14, 2013, Southwest Iowa Renewable Energy, LLC ("SIRE") announced its financial results for the three and nine months ended June 30, 2013.  SIRE reported net income of $1,501,000 or $114.24 per unit, compared to a net loss of $4,153,000 or $316.09 per unit for the three months ended June 30, 2013 and 2012, respectively. SIRE reported a net loss of $9,606,000 or $731.11 per unit, compared to net income of $856,000 or $65.15 per unit for the nine months ended June 30, 2013 and 2012, respectively. 

(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 $7,181,000 for the three months ended June 30, 2013 and $783,000 for the three months ended June 30, 2012.  Adjusted EBITDA was $9,959,000 for the nine months ended June 30, 2013 and $11,657,000 for the nine months ended June 30, 2012. For reconciliations of Adjusted EBITDA to net income attributable to SIRE, see "Adjusted EBITDA" below.

SIRE had $9.73 million in cash and equivalents and $6.714 million available under committed loan agreements (subject to satisfaction of specified lending conditions and covenants) at June 30, 2013. The cash flow from operations was $4,626,000 compared to $12,347,000 for the nine months ended June 30, 2013 and 2012, respectively; with the overall cash flow for the nine months ended June 30, 2013 of $3,447,000 compared to ($2,769,000) for the nine months ended June 30, 2012.

Brian Cahill, SIRE's President and CEO stated, "As we look back on the three months ended June 30, 2013 we continue to make strong strides in improving our operations through lower costs and brining our production back to full capacity. This resulted in improved margins and adjusted EBITDA along with positive earnings. We look forward to lower grain prices as we move closer to harvest."

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

June 30, 2013


September 30, 2012


(Unaudited)



Current Assets




Cash and cash equivalents

$

9,732



$

6,285


Restricted cash

303



302


Accounts receivable

333



268


Accounts receivable, related party

10,724



12,088


Derivative financial instruments

1,789



976


Inventory

17,748



12,427


Derivative financial instruments, related party



4,013


Prepaid expenses and other

678



394


          Total current assets

41,307



36,753






Property, Plant and Equipment




Land

2,064



2,064


Plant, building and equipment

204,952



204,597


Office and other equipment

751



751



207,767



207,412


Accumulated depreciation

(62,146)



(53,679)


          Net property and equipment

145,621



153,733






Other Assets




Financing costs, net of amortization of $3,607 and  $3,202, respectively

596



1,001


Other assets

896



896



1,492



1,897


          Total Assets

$

188,420



$

192,383










LIABILITIES AND MEMBERS' EQUITY

June 30, 2013


September 30, 2012


(Unaudited)



Current Liabilities




Accounts payable

$

1,343



$

1,366


Accounts payable, related parties

6,705



3,937


Derivative financial instruments, related party

1,671




Accrued expenses

2,287



2,837


Accrued expenses, related parties

2,283



1,657


Current maturities of notes payable and LOC

27,076



20,001


          Total current liabilities

41,365



29,798






Long Term Liabilities




Notes payable, less current maturities

109,174



115,023


Other long-term  liabilities

425



500


          Total long term liabilities

109,599



115,523














Members' Equity




Members' capital




13,139 Units issued and outstanding

76,474



76,474


Accumulated deficit)

(39,018)



(29,412)


          Total members' equity

37,456



47,062






Total Liabilities and Members' Equity

$

188,420



$

192,383


 

 

Financial Results


SOUTHWEST IOWA RENEWABLE ENERGY, LLC

Statements of Operations

(Dollars in thousands)

(Unaudited)



Three Months Ended


Three Months Ended


Nine Months Ended


Nine Months Ended


June 30, 2013


June 30, 2012


June 30, 2013


June 30, 2012









Revenues

$

94,472



$

79,820



$

247,996



$

264,897


Cost of Goods Sold








Cost of goods sold-non hedging

92,069



81,065



247,195



257,677


Realized & unrealized hedging (gains) losses

(2,336)



(538)



442,530



(4,274,696)



89,733



80,527



247,638



253,402










          Gross Margin (Loss)

4,739



(707)



358



11,495










General and administrative expenses

942



1,048



2,930



3,378










          Operating Income (Loss)

3,797



(1,755)



(2,572)



8,117










Other Income (Expense)








Interest and other income

20



11



76



81


Interest expense

(2,316)



(2,409)



(7,110)



(7,342)



(2,296)



(2,398)



(7,034)



(7,261)










Net Income (Loss)

$

1,501



$

(4,153)



$

(9,606)



$

856










Weighted average units outstanding - basic

13,139



13,139



13,139



13,139


Weighted average units outstanding - diluted

29,375



13,139



13,139



13,139


Income (loss) per unit - basic

$

114.24



$

(316.09)



$

(731.11)



$

65.15


Income (loss) per unit - diluted

$

83.71



$

(316.09)



$

(731.11)



$

65.15


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 June 30, 2013 and June 30, 2012 

 



For the three months


For the three months


June 30, 2013


June 30, 2012


in 000's


in 000's

EBITDA




Net Income (Loss)

$

1,501



$

(4,153)


Interest Expense, interest income, and other income

2,161



2,273


Depreciation & Amortization

2,984



2,985


EBITDA

6,646



1,105






Unrealized Hedging (gain) loss

535



(322)






Adjusted EBITDA

$

7,181



$

783






Adjusted EBITDA per unit

$

546.54



$

59.59


Adjusted EBITDA to net income (loss) for the six months ended June 30, 2013 and June 30, 2012

 

 


For the nine months


For the nine months


June 30, 2013


June 30, 2012


in 000's


in 000's

EBITDA




Net Income (Loss)

$

(9,606)



$

856


Interest Expense, interest income, and other income

6,629



6,910


Depreciation & Amortization

8,951



8,917


EBITDA

5,974



16,683






Unrealized Hedging (gain) loss

3,985



(5,026)






Adjusted EBITDA

$

9,959



$

11,657






Adjusted EBITDA per unit

$

757.97



$

887.21


 

 

Statistical Information














For the three months ended


For the three months ended





June 30, 2013


June 30, 2012





Gallons/Tons Sold


% of Revenues


Gallons/Tons Average Price


Gallons/Tons Sold


% of Revenues


Gallons/Tons Average Price

Statistical Revenue Information












Denatured Ethanol

28,920,871



76.43

%


$

2.35



28,735,866



74.53

%


$

2.07


Dry Distiller's Grains

68,314



17.32

%


$

239.57



71,827



18.54

%


$

209.92


Wet Distiller's Grains

32,725



3.27

%


$

94.53



26,870



3.02

%


$

89.59


Syrup

9,909



0.71

%


$

67.52



5,329



0.44

%


$

65.88


Corn Oil

2,873



2.27

%


$

745.08



3,581



3.47

%


$

773.33


 

 


For the Nine Months ended


For the Nine Months ended





June 30, 2013


June 30, 2012





Gallons/Tons Sold


% of Revenues


Gallons/Tons Average Price


Gallons/Tons Sold


% of Revenues


Gallons/Tons Average Price

Statistical Revenue Information












Denatured Ethanol

78,154,892



74.58

%


$

2.37



92,351,685



77.49

%


$

2.22


Dry Distiller's Grains

174,794



17.85

%


$

252.85



221,657



16.68

%


$

200.63


Wet Distiller's Grains

100,107



4.37

%


$

108.36



78,410



2.57

%


$

86.68


Syrup

25,374



0.76

%


$

74.71



23,817



0.45

%


$

50.21


Corn Oil

8,286



2.46

%


$

736.50



9,818



2.81

%


$

758.12


 

SOURCE Southwest Iowa Renewable Energy, LLC



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