Green Plains Inc. Files Q2 2024 10-Q Report

TL;DR

GPRE Q2 10-Q is in. Financials and segment performance detailed.

AI Summary

Green Plains Inc. reported its second quarter 2024 results, ending June 30, 2024. The company's filing details its financial performance and operational segments, including ethanol production and agribusiness services. Specific financial figures and segment performance are outlined within the report.

Why It Matters

This filing provides investors and analysts with the latest financial and operational data for Green Plains Inc., crucial for understanding the company's performance in the ethanol and agribusiness sectors.

Risk Assessment

Risk Level: medium — The company operates in the volatile ethanol and agribusiness markets, which are subject to significant price fluctuations and regulatory changes.

Key Numbers

• 20240630 — Reporting Period End Date (Indicates the end of the fiscal quarter being reported.)
• 20240806 — Filing Date (The date the 10-Q was officially submitted to the SEC.)

Key Players & Entities

• Green Plains Inc. (company) — Filer of the 10-Q report
• 20240630 (date) — End of the reporting period
• 20240806 (date) — Filing date of the report
• Omaha, NE (location) — Company's business and mailing address

FAQ

Key Financial Figures

• $0.001 — ich registered Common Stock, par value $0.001 per share GPRE The Nasdaq Stock Market

Filing Documents

• gpre-20240630.htm (10-Q) — 1682KB
• exhibit101-q22024.htm (EX-10.1) — 28KB
• exhibit311-q22024.htm (EX-31.1) — 9KB
• exhibit312-q22024.htm (EX-31.2) — 9KB
• exhibit321-q22024.htm (EX-32.1) — 4KB
• exhibit322-q22024.htm (EX-32.2) — 4KB
• 0001309402-24-000114.txt ( ) — 10041KB
• gpre-20240630.xsd (EX-101.SCH) — 54KB
• gpre-20240630_cal.xml (EX-101.CAL) — 75KB
• gpre-20240630_def.xml (EX-101.DEF) — 307KB
• gpre-20240630_lab.xml (EX-101.LAB) — 705KB
• gpre-20240630_pre.xml (EX-101.PRE) — 539KB
• gpre-20240630_htm.xml (XML) — 1970KB

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION Item 1.

Financial Statements

Financial Statements 5 Consolidated Balance Sheets 5 Consolidated Statements of Operations 6 Consolidated Statements of Comprehensive Income (Loss) 7 Consolidated Statements of Cash Flows 8

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 10 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 34 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 47 Item 4.

Controls and Procedures

Controls and Procedures 49

– OTHER INFORMATION

PART II – OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 50 Item 1A.

Risk Factors

Risk Factors 50 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 50 Item 3. Defaults Upon Senior Securities 50 Item 4. Mine Safety Disclosures 50 Item 5. Other Information 50 Item 6. Exhibits 51

Signatures

Signatures 2 Table of Contents Commonly Used Defined Terms Green Plains Inc. and Subsidiaries: Green Plains Inc.; Green Plains; the company Green Plains Inc. and its subsidiaries FQT Fluid Quip Technologies, LLC Green Plains Commodity Management Green Plains Commodity Management LLC Green Plains Finance Company Green Plains Finance Company LLC Green Plains Grain Green Plains Grain Company LLC Green Plains Mount Vernon; Mount Vernon Green Plains Mount Vernon LLC Green Plains Obion; Obion Green Plains Obion LLC Green Plains Partners; the partnership Green Plains Partners LP Green Plains Shenandoah; Shenandoah Green Plains Shenandoah LLC Green Plains Trade Green Plains Trade Group LLC Green Plains Wood River; Wood River Green Plains Wood River LLC Accounting Defined Terms: ASC Accounting Standards Codification EBITDA Earnings before interest expense, income taxes, depreciation and amortization EPS Earnings per share Exchange Act Securities Exchange Act of 1934, as amended GAAP U.S. Generally Accepted Accounting Principles SEC Securities and Exchange Commission SOFR Secured Overnight Financing Rate Industry and Other Defined Terms: ATJ Alcohol-to-Jet BlackRock Funds and accounts managed by BlackRock the CARES Act Coronavirus Aid, Relief, and Economic Security Act CI Carbon Intensity COVID-19 Coronavirus Disease 2019 CST Clean Sugar Technology developed by Fluid Quip Technologies, LLC DOE Department of Energy E10 Gasoline blended with up to 10% ethanol by volume E15 Gasoline blended with up to 15% ethanol by volume EIA U.S. Energy Information Administration EPA U.S. Environmental Protection Agency EV Electric Vehicle FFV Flexible-fuel vehicle GHG Greenhouse gas GP Turnkey Tharaldson GP Turnkey Tharaldson LLC IRA Inflation Reduction Act LCFS Low Carbon Fuel Standard Merger Merger of GPLP Merger Sub LLC, a Delaware limited liability company and a wholly owned subsidiary of GPLP Holdings Inc., a wholly owned subsidiary of Gr

Financial Statements

Item 1. Financial Statements. GREEN PLAINS INC. CONSOLIDATED BALANCE SHEETS (in thousands, except share amounts) June 30, 2024 December 31, 2023 (unaudited) ASSETS Current assets Cash and cash equivalents $ 195,554 $ 349,574 Restricted cash 29,540 29,188 Accounts receivable, net of allowances of $ 293 and $ 85 , respectively 99,067 94,446 Income taxes receivable 1,072 822 Inventories 187,983 215,810 Prepaid expenses and other 20,957 23,118 Derivative financial instruments 17,647 19,772 Total current assets 551,820 732,730 Property and equipment, net of accumulated depreciation and amortization of $ 721,119 and $ 686,077 , respectively 1,019,359 1,021,928 Operating lease right-of-use assets 73,077 73,993 Other assets 119,344 110,671 Total assets $ 1,763,600 $ 1,939,322 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Accounts payable $ 109,329 $ 186,643 Accrued and other liabilities 52,080 57,029 Derivative financial instruments 16,783 10,577 Operating lease current liabilities 23,863 22,908 Short-term notes payable and other borrowings 124,579 105,973 Current maturities of long-term debt 1,830 1,832 Total current liabilities 328,464 384,962 Long-term debt 483,773 491,918 Operating lease long-term liabilities 52,071 53,879 Other liabilities 18,431 18,507 Total liabilities 882,739 949,266 Commitments and contingencies (Note 13) Stockholders' equity Common stock, $ 0.001 par value; 150,000,000 shares authorized; 67,460,745 and 62,326,622 shares issued, and 64,655,686 and 59,521,563 shares outstanding, respectively 67 62 Additional paid-in capital 1,212,845 1,113,806 Retained deficit ( 311,563 ) ( 235,801 ) Accumulated other comprehensive loss ( 2,807 ) ( 3,160 ) Treasury stock, 2,805,059 shares ( 31,174 ) ( 31,174 ) Total Green Plains stockholders' equity 867,368 843,733 Noncontrolling interests 13,493 146,323 Total stockholders' equity 880,861 990,056 Total liabilities and stockholders' equity $ 1,763,600 $ 1

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited) 1. BASIS OF PRESENTATION, DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES References to the Company References to "Green Plains" or the "company" in the consolidated financial statements and in these notes to the consolidated financial statements refer to Green Plains Inc., an Iowa corporation, and its subsidiaries. Consolidated Financial Statements The consolidated financial statements include the company's accounts and all significant intercompany balances and transactions are eliminated. Unconsolidated entities are included in the financial statements on an equity basis. On January 9, 2024, the transactions contemplated by the Merger Agreement were completed and the company acquired all of the publicly held common units of the partnership not already owned by the company and its affiliates. Refer to Note 3 - Acquisition included herein for more information. The company also owns a majority interest in FQT, with their results being consolidated in our consolidated financial statements. The accompanying unaudited consolidated financial statements are prepared in accordance with GAAP for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. Because they do not include all of the information and footnotes required by GAAP for complete financial statements, the unaudited consolidated financial statements should be read in conjunction with the company's annual report on Form 10-K for the year ended December 31, 2023, filed with the SEC on February 9, 2024. The unaudited financial information reflects adjustments, which are, in the opinion of management, necessary for a fair presentation of results of operations, financial position and cash flows for the periods presented. The adjustments are normal and recurring in nature, unless otherwise noted. Interim period results are not necessarily indicative of the results to be expected for the e

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