Attached files
| file | filename |
|---|---|
| 8-K - 8-K - SOUTHWEST IOWA RENEWABLE ENERGY, LLC | brhc10020573_8k.htm |
Exhibit 99.1
2020 Fiscal Year Annual Meeting Friday, February 19, 2021 Virtual Presentation
This presentation contains certain forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Such statements are made in good faith by Southwest Iowa Renewable Energy, LLC (“SIRE,” “us” or “we”) and are identified by 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, and in its other filings with the SEC, 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 our business and the effects of general economic conditions on
us. We may experience significant fluctuations in future operating results due to a number of economic conditions, including, but not limited to, competition in the ethanol industry, commodity market risks, financial market risks,
counter-party risks, and risks associated with changes to federal policy or regulation. The cautionary statements and risk factors in this disclaimer and our Form 10-K expressly qualify all of SIRE’s forward-looking statements in this
presentation. The forward-looking statements contained in this presentation are included in the safe harbor protection provided by Section 27A of the Securities Act of 1933. 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 unless an update is required by applicable securities laws. Forward-Looking Statements and Disclaimer
Business Meeting Agenda Karol King – Chairman of the Board Call the Meeting to Order – Welcome
Report on Notice of Meeting/Quorum Adjournment of Business Meeting
Company UpdateMike Jerke – CEO/President
The goal: To be a plant that performs in the top quartile of our peer group as measured by
EBITDA.Path to achieve our goal: “5-10-20” by FYE 2022 initiative (baseline: 2019). 5% efficiency improvement10% expense reduction20% production increase and energy reduction FY 2020 Review….
Recap Repurchase of Bunge units.COVID and impact of stay-at-home directives.Production was 11.5
million gallons below FY 2019.2.9 million gallons sold into undenatured/high value (sanitizer) markets. Margin environment:Q1 strongQ2 onset of COVIDQ3 weak (unprecedented)Q4 strengthened Margin tracked the ebb/flow of stay-at-home
directives/attitudes.
Financial Highlights (In millions other than book value.) Metric FY 2018 FY 2019 FY
2020 Thru 12/31/20 Revenue $215.0 $217.0 $198.6 $55.4 Crush Margin $66.4 $54.8 $55.3 $16.3 MEBITDA $9.6 $3.0 $11.3 $4.6 Net Income $(2.7) $(8.5) $(0.4) $1.1 Total Equity $97.8 $89.3 $65.8 $66.9 Book value per
share $7,339 $6,701 $7,332 $7,456 Total shares 13,327 13,327 8,975 8,975
Quarterly Crush MarginPer Gallon of Ethanol Produced
FY 2020 modified EBITDA: $8.4 million improvement Metric FY 2018 FY 2019 FY 2020 YTD
2021 Ethanol Yield (gpb) 2.945 2.903 2.880 2.919 Corn Oil Yield (ppb) 0.897 0.978 0.942 0.918 Ethanol Price ($/gal) 1.31 1.28 1.24 1.31 Corn Cost ($/bu) 3.41 3.71 3.48 3.98 Revenue
($/gal) 1.683 1.695 1.727 1.843 Variable Expense ($/gal) 0.254 0.244 0.207 0.191 Fixed Expense ($/gal) 0.141 0.121 0.131 0.094 Gen & Admin ($/gal) 0.039 0.038 0.045 0.040 EBITDA ($/gal) 0.086 0.023 0.097 0.176
Annual Production Results5-year (fiscal) Comparison 2016 2017 2018 2019 2020 Ethanol
Production 122.3 mg 124.1 mg 127.9 mg 129.3 mg 117.8 mg* Corn Consumed (bu.) 42,891,000 42,430,000 43,432,000 44,533,000 40,903,000 Distillers Sales (tons) 406,710 369,290 408,650 411,300 387,900 Corn Oil Prod.
(lbs) 33,906,800 35,985,900 38,976,800 43,548,500 38,528,500 Carbon Dioxide (tons) 94,400 94,300 100,950 100,600 104,059 *Total ethanol production in FY 2020 included 2.9 million gallons of product sold to support the hand
sanitizer market.
(Refinanced in November 2019)
Debt Metrics(millions) FYE 2018 FYE 2019 FYE 2020 YTD 12/31/20 Bank
Debt $18.9 $23.9 $53.1 $48.2 Bank Debt/Gallon $0.15 $0.18 $0.40* $0.36* Bank Debt-Repayment $(2.8) $(5.0) $(29.2) $4.9 Interest Payments $1.0 $1.0 $1.9 $0.5 *Based on FY 2019 production
Liquidity
Capital Expenditures - 2020 Dryer Exhaust Energy Recovery $10.8 MM Capital Expenditures/Upgrades
FY 2021Undenatured loadout (rail) $0.23 MM (complete)Corn storage expansion $8.0 MM
Achieving the goal Upper quartile requirementsRight designRight locationRight metrics
(5-10-20)Change of alpha amylase mode of deliveryAddition of industry standard corn storage, 20 days (plus)Currently, ~11 daysRight Team
Achieving the goal… Diversification planUndenatured salesHigh oil corn pilot project Low carbon
focusKeeping score??
Benchmarking EBITDA Year National IA/NE FY 2019 60% 58% FY 2020 40% 53% Q1
2021 38% 33% Net Income Year National IA/NE FY 2019 63% 59% FY 2020 40% 27% Q1 2021 25% 17%
2021 SIRE Annual Meeting February 19, 2021
Iowa’s Ethanol Industry 42 operating ethanol plants with a capacity of 4.5 billion gallonsShould
be converting 1.6 billion bushels of Iowa corn (70% of 2020 crop) to ethanol and high-protein animal feed~27% of U.S. ethanol production
Impact of Renewable Fuels in Iowa 2020 GDP(in millions) Household Earnings(in
millions) Employment(Jobs) Ethanol $3,369 $1,576 32,594 Biodiesel $587 $254 4,449 Total $3,956 $1,830 37,043
“This legislation would invest significantly into Iowa’s renewable fuel infrastructure program,
boost farm income, reduce emissions, and put millions of dollars back into the state’s general fund. It is time for Iowa to take charge of our renewable fuel economy and stand up against the inconsistency we continue to see from
Washington, D.C., and the (federal Environmental Protection Agency).”-- Sioux City Journal, February 14, 2021 Gov. Kim Reynolds
Iowa Biofuel Standards Bill Overview B11/20 Fuel Standard – All diesel in the state to include
biodiesel as seen below.B5 during winter months (October to March)B11 during summer months (April to September 2022-2023)B20 during summer months (2024 and later)
Iowa Biofuel Standards Bill Overview E10 Fuel Standard – “All” gasoline in the state to include at
least 10% ethanol.Exemptions for one pump per retailer for small and off-road engines, old cars, and marinas.New state label for E0 highlighting these restrictions.
Iowa Biofuel Standards Bill Overview E15 Fuel Standard Trigger – Would change the E10 standard to
E15 standard.On January 1, 2025, the Governor will have the option to move to a E15 standard. If retail infrastructure constraints exist, the Governor can delay the date.
Iowa Biofuel Standards Bill Overview Renewable Fuel Infrastructure Program Funding – increase from
$3M to $10M year for retailer grantsLimits biodiesel grants to “historical” $1.25 million per year to ensure funding for E15 infrastructure.
Iowa Biofuel Standards Bill Impacts More fuel choices for consumers – E15Saves consumers 5-10
cents per gallonMore grant funding for retailers to add E15Elimination of tax credits on “standard” fuel will save Iowa taxpayers $180M over first five yearsBoost Iowa GDP by ~$450M, Support an additional 3,500 jobs, add $550M to Iowa
household income
Iowa Biofuel Standards Action Items Donate to SIRE PAC. Must support biofuel allies.Contact
legislators to urge support for IA Biofuel StandardsSen. Dan Dawson, 712-256-1199, dan.dawson@legis.iowa.gov Sen. Tom Shipley, 712-785-3583, tom.shipley@legis.iowa.gov Sen. Mark Costello, 712-520-0303, mark.costello@legis.iowa.gov Sen.
Jason Schultz, 712-269-2178, jason.schultz@legis.iowa.gov Rep. Brent Siegrist, 402-250-5566, Brent.Siegrist@legis.iowa.gov Rep. Charlie McConkey, 402-676-0105, charlie.mcconkey@legis.iowa.gov Rep. Jon Jacobsen, 712-890-7266,
Jon.Jacobsen@legis.iowa.govRep. Matt Windschitl, 712-642-4334, matt.windschitl@legis.iowa.govRep. Steve Holt, 712-269-4042, Steven.Holt@legis.iowa.gov Always leave your name, hometown/plant, phone number
Monte ShawExecutive Directormshaw@IowaRFA.org(515) 252-6249 Iowa Renewable Fuels
Associationwww.Iowarfa.org /Iowa.Renewable.Fuels @IowaFuel /IowaRenewableFuels /IowaFuel /company/IowaRFA
Industry Update
The Road Ahead… Change in administrationEV euphoria0.6% of current fleetDecarbonization of liquid
fuelPayroll Protection Program (PPP), round 1 and 2USDA Stimulus?“Mark my words, zero carbon ethanol is coming” – Geoff Cooper, CEO, Renewable Fuels Association
The Road Ahead…
Questions and Answers
Thank you!