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.
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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
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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
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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
