Green Plains(US:GPRE)2023-02-10 21:48Operational Performance - The company maintained an average utilization rate of approximately 91% of capacity during 2022, compared to 77% in the prior year[243]. - The top four producers accounted for approximately 41% of the domestic ethanol production capacity as of December 31, 2022[74]. - The company produced Ultra-High Protein at three locations and began commissioning FQT's MSC technology at two additional locations in Q4 2022[243]. - The company has formed a 50/50 joint venture with Tharaldson Ethanol to enhance renewable corn oil yields[82]. - Ethanol production segment sold 872,133 thousand gallons in 2022, up from 750,648 thousand gallons in 2021, representing a volume increase of approximately 16.2%[289]. Financial Performance - Total revenues including intersegment activity reached $3,662,849,000 in 2022, a 29.5% increase from $2,827,168,000 in 2021[275]. - Ethanol production segment revenues from external customers increased to $3,070,192,000 in 2022, up 42.5% from $2,153,368,000 in 2021[275]. - Agribusiness and energy services segment revenues from external customers decreased to $588,654,000 in 2022, down 12.1% from $669,526,000 in 2021[275]. - The partnership segment generated revenues from external customers of $4,003,000 in 2022, a slight decrease from $4,274,000 in 2021[275]. - Consolidated revenues increased by $835.7 million in 2022 compared to 2021, primarily due to higher average selling prices and higher volumes sold in the ethanol production segment[286]. Cost and Expenses - Cost of goods sold for ethanol production was $3,068,366,000 in 2022, an increase of 48.7% from $2,063,283,000 in 2021[275]. - The company’s cost of goods sold includes significant raw material costs, with corn being the most significant, followed by natural gas[262]. - Operating loss in the ethanol production segment increased by $89.8 million in 2022, primarily due to decreased margins[291]. - Corporate activities incurred an operating loss of $(60,478,000) in 2022, compared to a loss of $(10,499,000) in 2021[282]. Profitability - The operating loss for the ethanol production segment was $(117,764,000) in 2022, compared to a loss of $(27,996,000) in 2021[276]. - Adjusted EBITDA for the ethanol production segment was $(8,619,000) in 2022, down from $55,056,000 in 2021[282]. - The net loss for the year ended December 31, 2022, was $(103,377,000), compared to $(44,146,000) in 2021[280]. Cash Flow and Capital Expenditures - Net cash provided by operating activities was $69.7 million in 2022, a significant increase from $4.2 million in 2021[300]. - Capital expenditures totaled $212.4 million in 2022, primarily for Ultra-High Protein expansion projects, with projected capital spending for 2023 estimated between $150 million and $250 million[302]. - The company had $444.7 million in cash and cash equivalents and $55.6 million in restricted cash as of December 31, 2022[298]. Debt and Financing - As of December 31, 2022, the outstanding principal balance on the $125.0 million junior secured mezzanine notes was $125.0 million with an interest rate of 11.75%[318]. - The company has a $75.0 million delayed draw loan agreement with an outstanding principal balance of $74.6 million and an interest rate of 5.02% as of December 31, 2022[318]. - Green Plains Partners has a term loan balance of $59.0 million with an interest rate of 12.77% as of December 31, 2022[325]. - Green Plains Commodity Management has an uncommitted $40.0 million revolving credit facility with an outstanding principal balance of $22.7 million and an interest rate of 6.05% as of December 31, 2022[321]. - The company expects to refinance or extend its $40.0 million revolving credit facility prior to maturity[321]. Grants and Other Income - The company received a $27.7 million grant from the USDA in 2022 as part of the Biofuel Producer Program[267]. Shareholder Activities - The company authorized a share repurchase program of up to $200.0 million of its common stock, with no repurchases made in 2022[305]. - In August 2022, the company exchanged approximately $32.6 million of 4.125% notes for about 1.2 million shares of common stock[316]. Taxation - Income tax expense increased to $4.7 million in 2022 from $1.8 million in 2021, primarily due to an increase in the valuation allowance against certain deferred tax assets[296].