Green Plains Inc. (NASDAQ:GPRE) Q1 2019 Earnings Conference Call - Final Transcript

May 09, 2019 • 11:00 am ET

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Green Plains Inc. (NASDAQ:GPRE) Q1 2019 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good day, ladies and gentlemen, and welcome to the Green Plains Incorporated and Green Plains Partners First Quarter 2019 Results Conference Call. (Operator Instructions) As a reminder, this conference call may be recorded.

I would now like to introduce your host for today's conference, Mr. Jim Stark. Sir, you may begin.

Executive
Jim Stark

Thank you. And welcome to the Green Plains Inc. and Green Plains Partners First Quarter 2019 Earnings Call. Participants on today's call are Todd Becker, President and Chief Executive Officer; John Neppl, our Chief Financial Officer; and Patrich Simpkins, our Chief Development Officer. There is a slide show available and you can find that presentation on the Investor page under the Events and Presentations link on both corporate websites. During this call we will be making forward-looking statements, which are predictions, projections and 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 press releases and the comments made during this conference call and in the Risk Factors section of our Form 10-K, 10-Q and other reports and filings with the Securities and Exchange Commission. We do not undertake any duty to update any forward-looking statement.

Now I'd like to turn the call over to Todd Becker.

Executive
Todd Becker

Thanks, Jim. And thanks, everybody, for joining us today. Early yesterday morning, you saw the announcement that John Neppl is leaving us to become the CFO of Bunge. I do want to say to John that we appreciate his hard work, partnership and dedication over the last few years and wish him the best in his new position. With that change, I'm happy to announce that Patrich Simkins, who is currently our Chief Development Officer and has been with us since 2012, will become Chief Financial Officer. Patrich has a deep understanding of finance and financial strategy and will be a critical partner for us as we continue to roll-out our new initiatives and close out the portfolio optimization plan. Paul Kolomaya will become Chief Accounting Officer for Green Plains. Paul has worked tirelessly for the last 10 years for the company and he has been here since the beginning and his contributions have been immeasurable to the company's success.

We reported a net loss of $42.8 million or $1.06 per diluted share. Our financial results continue to be impacted by the weak ethanol margin environment and our first quarter was also affected by the severe winter weather and flooding in the Midwest. Green Plains produced approximately 155 million gallons of ethanol in the first quarter. We again decided to temporarily idle plants as a result of the poor margin environment and the rail service delays also impacted our production. Prior cutbacks overall enhanced our financial performance whereas this time it negatively impacted us by approximately $0.06 a gallon. Consolidated crush margin was a negative $0.08 a gallon for Q1 as we ran our plants at 56% of operating capacity. Our