Green Plains Inc. (NASDAQ:GPRE) Q2 2015 Earnings Conference Call - Final Transcript

Jul 29, 2015 • 11:00 am ET


Green Plains Inc. (NASDAQ:GPRE) Q2 2015 Earnings Conference Call - Final Transcript


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Good day, everyone and welcome to the Green Plains Second Quarter 2015 Financial Results Conference Call. Today's call is being recorded. At this time, I would like to turn the call over to Jim Stark. Please go ahead.

Jim Stark

Thanks, Nova. Welcome to our second quarter 2015 earnings call. Participants on the today's call are Todd Becker, our CEO; Jerry Peters, our CFO; Jeff Briggs, our Chief Operating Officer and Steve Bleyl, who is our Executive Vice President of Ethanol Marketing. We have posted a slide presentation for you to follow along with and you could find that presentation on the investor page under the events and presentations link on our website.

During this call, we will be making forward-looking statements, which are predictions, projections or other statements about future events. These statements are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could materially differ because of factors discussed in yesterday's earnings press release and the comments made during this conference call and the risk factors section of our Form 10-K and Form 10-Q and other reports and filings with the Securities and Exchange Commission.

You may also refer to page 2 of the website presentation for information about factors that could cause different outcomes. We do not undertake any duty to update any forward looking statements. And now, I would like to turn the call over to Todd Becker.

Todd Becker

Thanks, Jim and good morning everybody, and thanks for joining the call today. The second quarter was certainly better than the first as we have experienced an improved margin environment for the quarter, while certainly not as strong as last year, we're happy to see a nice expansion in the margin structure. Along with our segments, the company's EBITDA was close to $40 million including corporate costs historically a mid-cycle type number for us.

More specifically for the second quarter, we report a net income of $7.8 million or $0.19 a share. We generated $16.4 million of operating income from our Corn Oil, Marketing and Distribution and Agribusiness segments. And our ethanol segment generated $18.2 million or $0.13 EBITDA per gallon in the second quarter.

Our daily average ethanol production rate was 93.9% of capacity producing 238.7 million gallons of ethanol in the quarter. We continue to run for ethanol yield, while the second quarter was 2.84 gallons per bushel of corn compared to 2.81 for the second quarter of 2014. We see less variability as we slowdown a speedup than in the past as the investments we have made in yield improvement should stabilize higher yields in the future. New crop corn is always most variable time for yield, other than that the long term yield trend remains intact.

We also produced 631,000 tons of livestock feed or distiller's grains and 62.4 million pound of corn oil during the quarter. We achieved a record 0.74 pound of corn oil per bushel of corn for our platform. We continue to make process improvements across our