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8-K - SOUTHWEST IOWA RENEWABLE ENERGY, LLCform8k_021513.htm
 
EXHIBIT 99.1
 
     
     
     

 
 
SOUTHWEST IOWA RENEWABLE ENERGY, LLC ANNOUNCES FIRST QUARTER FY2013 RESULTS

Council Bluffs, Iowa ----- February 15, 2013---- On February 14, 2013, Southwest Iowa Renewable Energy, LLC (“SIRE”) announced its unaudited financial results for the first quarter of fiscal year 2013 (“Fiscal 2013”) which ended December 31, 2012.  SIRE reported a net loss of $8,683,000, or $660.83 per unit, compared to a net profit of $8,996,000, or $684.62 per unit, for the first quarter of fiscal year 2012 (“Fiscal 2012”) which ended December 31, 2011.  The cash flow provided by operations for the first quarter of Fiscal 2013 was $1,097,000, compared to $7,141,000 for the same period in Fiscal 2012.

Adjusted EBITDA, which is defined as earnings before interest, income taxes, and depreciation and/or amortization (“EBITDA”), as adjusted for unrealized hedging losses (gains), was a loss of $1,259,000 for the first quarter of Fiscal 2013 and a gain of $10,014,000 for the same period in Fiscal 2012.  At December 31, 2012, SIRE had $12,391,000 in cash and equivalents and $5,555,000 available under committed loan agreements (subject to satisfaction of specified lending conditions and covenants).  For reconciliations of Adjusted EBITDA to net income attributable to SIRE, see “Adjusted EBITDA” below.

Brian Cahill, SIRE’s General Manager and CEO, stated, “Our first quarter in Fiscal 2013 reflects the continuing margin compression resulting from the relative high prices of our primary input and low prices our primary product during the quarter.  In particular, the key factors during the quarter were relatively high prices compared to previous years of our primary input,  corn, resulting from the drought conditions in the United States. In addition, pricing pressures have continued to depress ethanol prices. Notwithstanding these margins, we have continued to make scheduled payments to our banks, resulting in further principal reduction in overall debt and reduced interest costs.  We have also continued to make modest capital investments that are resulting in incremental productivity improvements in our plant.”

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 name plate 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
   
December 31, 2012
   
September 30, 2012
 
     
(Unaudited)
       
Current Assets
             
Cash and cash equivalents
 
$
12,391
 
$
6,285
 
Restricted cash
   
303
   
302
 
Accounts receivable
   
145
   
268
 
Accounts receivable, related party
   
8,108
   
12,088
 
Derivative financial instruments
   
1,282
   
976
 
Inventory
   
12,224
   
12,427
 
Derivative financial instruments, related party
   
674
   
4,013
 
Prepaid expenses and other
   
875
   
394
 
Total current assets
   
36,002
   
36,753
 
               
Property, Plant and Equipment
             
Land
   
2,064
   
2,064
 
Plant, building and equipment
   
204,493
   
204,597
 
Office and other equipment
   
751
   
751
 
     
207,308
   
207,412
 
Accumulated depreciation
   
(56,449)
   
(53,679)
 
Net property and equipment
   
150,859
   
153,733
 
               
Other Assets
             
Financing costs, net of amortization of
   
866
   
1,001
 
 $3,337 and $3,202, respectively
             
Other assets
   
896
   
896
 
     
1,762
   
1,897
 
Total Assets
 
$
188,623
 
$
192,383
 
               
   
           
 

 
 
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Summary Balance Sheets
 


             
SOUTHWEST IOWA RENEWABLE ENERGY, LLC
Balance Sheets
(Dollars in thousands)
             
LIABILITIES AND MEMBERS' EQUITY
   
December 31, 2012
   
September 30, 2012
     
(Unaudited)
     
Current Liabilities
           
Accounts payable
 
$
1,114
 
$
1,366
Accounts payable, related parties
   
3,737
   
3,937
Accrued expenses
   
2,379
   
2,837
Accrued expenses, related parties
   
2,466
   
1,657
Current maturities of notes payable
   
28,367
   
20,001
Total current liabilities
   
38,063
   
29,798
             
Long Term Liabilities
           
Notes payable, less current maturities
   
111,706
   
115,023
Other long-term liabilities
   
475
   
500
Total long term liabilities
   
112,181
   
115,523
Commitments and Contingencies
           
             
Members' Equity
           
     Members' capital
           
13,139 Units issued and outstanding
   
76,474
   
76,474
Accumulated profit (deficit)
   
(38,095)
   
(29,412)
Total members' equity
   
38,379
   
47,062
Total Liabilities and Members' Equity
 
$
188,623
 
$
192,383
             
 
 

 
 
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Financial Results

             
SOUTHWEST IOWA RENEWABLE ENERGY, LLC
Statements of Operations
(Dollars in thousands)
(Unaudited)
             
     
Three Months Ended
   
Three Months Ended
     
December 31, 2012
   
December 31, 2011
             
Revenues
 
$
74,327
 
$
95,197
Cost of Goods Sold
           
Cost of goods sold-non hedging
   
78,287
   
85,817
Realized & unrealized hedging (gains) losses
   
1,293
   
(3,391)
     
79,580
   
82,426
             
Gross Margin (Loss)
   
(5,253)
   
12,771
             
General and administrative expenses
   
1,057
   
1,313
             
Operating Income (Loss)
   
(6,310)
   
11,458
             
Other Income (Expense)
           
Interest and other income
   
20
   
12
Interest expense
   
(2,393)
   
(2,474)
     
(2,373)
   
(2,462)
             
Net Income (Loss)
 
$
(8,683)
 
$
8,996
             
Weighted Average Units Outstanding
   
13,139
   
13,139
Net Income (loss) per unit, basic & diluted
 
$
 (660.83)
 
$
 684.62
             
 


 
 
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Adjusted EBITDA

Management uses Adjusted EBITDA, a non-GAAP measure, to measure the SIRE’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 (unaudited) for the periods indicated:
 
 
       
 
December 31, 2012
 
December 31, 2011
 
Amounts
 
Amounts
 
in 000's
 
in 000's
EBITDA
     
Net Income (Loss)
(8,683)
 
8,996
Interest Expense, interest income, and other income
2,373
 
2,462
Depreciation & Amortization
2,984
 
2,959
EBITDA (Loss)
(3,326)
 
14,417
       
Change in Unrealized Hedging (gain) loss
2,067
 
(4,403)
       
Adjusted EBITDA (Loss)
(1,259)
 
10,014
       
Adjusted EBITDA (Loss) per unit
(95.84)
 
762.15
 

 
 
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Statistical Information
                       
 
December 31, 2012
 
December 31, 2011
 
Gallons/Tons Sold
 
% of Revenues
 
Gallons/Tons Average Price
 
Gallons/Tons Sold
 
% of Revenues
 
Gallons/Tons Average Price
                       
Denatured Ethanol
24,580,450
 
73.953%
 
$                 2.24
 
30,873,285
 
80.475%
 
$               2.48
Dry Distiller's Grains
50,043
 
17.483%
 
$             259.67
 
70,376
 
14.611%
 
$           197.64
Wet Distiller's Grains
29,740
 
5.002%
 
$             125.01
 
23,332
 
2.017%
 
$             82.29
Syrup
5,211
 
0.620%
 
$               88.41
 
11,655
 
0.469%
 
$             38.30
Corn Oil
2,949
 
2.942%
 
$             741.60
 
2,805
 
2.429%
 
$           824.29
 

 





Contact:
Brett L. Frevert, CFO
Southwest Iowa Renewable Energy, LLC
712.366.0392




 
 
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