Bullish indicating open at $55-$60, IPO prices at $37
OMAHA - On Monday, Green Plains Inc. (NASDAQ:GPRE) reported a wider second quarter loss as the ethanol producer was hit by $44.9 million in non-cash charges and saw revenue decline. The company posted a net loss of $72.2 million, or -$1.09 per diluted share, compared to a net loss of $24.4 million, or -$0.38 per share, in the same period last year.
Revenue for the quarter fell 10.7% to $552.8 million from $618.8 million a year earlier, missing analyst expectations of $610.22 million. The quarterly loss was significantly wider than the -$0.33 per share analysts had forecast. Despite the disappointing results, the company reported improved adjusted EBITDA of $16.4 million compared to $5.0 million in the prior-year period.
The company’s non-cash charges were primarily related to the sale of non-core assets and an equity method investment, as well as impairments of equipment and assets held for sale. Green Plains also incurred $2.5 million in restructuring costs related to ongoing transformation initiatives.
"By exiting non-core assets and activities and focusing on our platform, we’ve streamlined the business and sharpened execution," said Michelle Mapes, Interim Principal Executive Officer. "Our team delivered strong results with 99% utilization across the operating platform, demonstrating the success of the structural improvements made available by our operational excellence initiatives."
The company reported that its carbon capture infrastructure equipment has been delivered and construction is progressing, keeping the project on track for start-up early in the fourth quarter of 2025. Green Plains also highlighted benefits from its transition of ethanol marketing to Eco-Energy, LLC, including greater than $50 million improvement in working capital.
On August 10, the company executed an amendment to extend the maturity of its $127.5 million Mezzanine note facility to September 15, 2026, improving its financial flexibility.
The ethanol production segment sold 193.6 million gallons of ethanol during the quarter, down from 208.5 million gallons in the same period last year. The consolidated ethanol crush margin was $26.3 million, which included $22.6 million from the sale of accumulated RINs.
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