Green Plains Inc. (NASDAQ:GPRE) Q4 2014 Earnings Conference Call - Final Transcript

Feb 05, 2015 • 11:00 am ET


Green Plains Inc. (NASDAQ:GPRE) Q4 2014 Earnings Conference Call - Final Transcript


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Good day and welcome to the Green Plains Fourth Quarter and Full Year 2014 Financial Results Conference Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Jim Stark. Please go ahead, sir.

Jim Stark

Thanks, Randy. Welcome to our fourth quarter and fiscal year-end 2014 earnings conference call. On the call today are Todd Becker, President and Chief Executive Officer; Jerry Peters, our Chief Financial Officer; Jeff Briggs, our Chief Operating Officer; and Steve Bleyl, Executive Vice President of Ethanol Marketing. We are here to discuss our quarterly financial and full year 2014 results and recent developments for Green Plains.

There is a slide presentation for you to follow along with as we go through our comments today. You can find this presentation on our website, at, on the Investors page under the Events & Presentations link. Our comments today will contain forward-looking statements, which are any statements made that are not historical facts.

These forward-looking statements are based on the current expectations of Green Plains' management team and there can be no assurance that such expectations will prove to be correct. Because forward-looking statements involves risks and uncertainties, Green Plains actual results could differ materially from management's expectations. Please refer to page two of the website presentation and our 10-K and other periodic SEC filings for information about factors that could cause different outcomes.

The information presented today is time-sensitive and is accurate only at this time. If any portion of this presentation is rebroadcast, retransmitted or redistributed at a later date, Green Plains will not be reviewing or updating this material.

I will now turn the call over to Todd Becker.

Todd Becker

Thanks, Jim, and good morning and thanks for joining our call today. 2014 was a year of record achievements for Green Plains. We produced nearly a billion gallons of ethanol, 2.7 million tons of livestock feed, 235 million pounds of corn oil, while processing 10 million tons of corn. This enabled the company to generate $159.5 million of net income for the year, or $3.96 a share. Our platform generated over $100 million of non-ethanol operating income and, certainly, the $350 million of total EBITDA reported is a significant achievement for our company.

For the fourth quarter, we reported $42.2 million of net income, or $1.07 a share in earnings. We ended the year with $455 million in cash and only $7.6 million in net term debt. It was 18 months ago that we first talked to you about our goal of zero net term debt within three years, absent additional growth opportunities. We did acquire two ethanol plants, adding 230 million gallons of ethanol production and a 70,000 head cattle feedlot during these 18 months.

So, over this time, we have reduced net term debt by $233 million while growing stockholder equity by $300 million. Today, our balance sheet is as strong as it ever has been. Our view of 2014 is that it was a transformative year that