Green Plains(US:GPRE)2021-02-16 19:13Ethanol Production and Market Overview - As of December 31, 2020, the top five ethanol producers operated 69 plants, accounting for approximately 40% of the domestic production capacity, with capacities ranging from 800 mmgy to 1,800 mmgy[88]. - Approximately half of the 209 ethanol plants in the United States are standalone facilities, which account for about 38% of domestic production capacity[88]. - The Renewable Fuels Association reported 107 operational ethanol plants in states where the company has production facilities, with the largest concentration in Iowa, Nebraska, and Illinois, representing 51% of operational production capacity[89]. - The average utilization rate for 2020 was approximately 71%, down from 76% in the previous year, primarily due to poor margins and reduced motor fuel demand caused by the COVID-19 pandemic[320]. - Ethanol sold decreased to 793,743 thousand gallons in 2020 from 856,623 thousand gallons in 2019, a decline of approximately 7.3%[377]. - Revenues in the ethanol production segment decreased by $198.1 million in 2020, primarily due to lower production volumes[377]. Financial Performance - Total revenues reported for 2020 were $1,923,719, a decrease of 20.5% compared to $2,417,238 in 2019 and 35.5% from $2,983,932 in 2018[366]. - Ethanol production segment revenues for 2020 were $1,502,481, down 11.5% from $1,700,615 in 2019 and 29.1% from $2,120,475 in 2018[366]. - Agribusiness and energy services segment revenues decreased to $443,871 in 2020, a decline of 39.7% from $735,500 in 2019 and 42.4% from $768,956 in 2018[366]. - Consolidated revenues decreased by $493.5 million in 2020 compared to 2019, primarily due to lower production volumes of ethanol and distillers grains[374]. - Operating loss for the ethanol production segment in 2020 was $129,618, which included a goodwill impairment charge of $24.1 million and a $3.9 million pretax loss on the sale of the Hereford plant[366][367]. - Corporate activities incurred an operating loss of $57,888 in 2020, which included a goodwill impairment charge and losses from asset sales[367]. Strategic Partnerships and Acquisitions - The company acquired a majority interest in Fluid Quip Technologies, LLC in 2020 to expand Ultra-High Protein technology across its facilities[109]. - An exclusive partnership was formed with Hayashikane Sangyo of Japan in 2020 to deliver innovative solutions for global aquaculture markets[110]. - The company completed the sale of the Hereford ethanol plant in Q4 2020, resulting in a loss of $3.9 million recorded at the ethanol production level[356]. - The company acquired a majority interest in Fluid Quip Technologies, LLC in December 2020, indicating a strategic move towards market expansion[361]. Risk Management and Financial Instruments - The company uses various financial instruments to manage exposure to commodity price fluctuations, particularly for corn, ethanol, and natural gas[319]. - The partnership uses forward fixed-price physical contracts and derivative financial instruments to manage commodity price risk[437]. - The company actively monitors and manages credit and market risk associated with derivative financial instruments used for hedging commodity price changes[341]. Employee and Operational Measures - The company employs 839 full-time, part-time, temporary, and seasonal employees as of December 31, 2020, including 122 at its corporate office[115]. - The company has implemented enhanced safety measures during the COVID-19 pandemic to protect employee health and ensure reliable product supply[117]. Tax and Cash Flow - Income tax benefit increased to $50.4 million in 2020 from $21.3 million in 2019, primarily due to the carry back of a tax NOL generated in 2019[386]. - Net cash provided by operating activities of continuing operations was $98.9 million in 2020, compared to a net cash used of $27.0 million in 2019[404]. Debt and Obligations - As of December 31, 2020, total contractual obligations amounted to $1,041,985,000, with $560,848,000 due within one year[429]. - The partnership's long-term and short-term debt obligations total $571,744,000, with $241,121,000 due within one year[429]. - A 10% increase in interest rates would affect the partnership's interest cost by approximately $0.9 million per year, with $237.4 million of its $526.2 million debt having variable interest rates[434].