Business
Green Plains Partners Reports First Quarter 2020 Financial Results
Results for the First Quarter of 2020 Net income of $10.4 million, or $0.44 per common unitAdjusted EBITDA of $13.4 million and distributable cash flow of
About this update from Green Plains, Inc.
[{"type":"text","content":"Results for the First Quarter of 2020\n Net income of $10.4 million, or $0.44 per common unitAdjusted EBITDA of $13.4 million and distributable cash flow of $11.4 millionQuarterly cash distribution of $0.12 per unitDistribution coverage ratio of 4.03x, LTM distribution coverage ratio of 1.24x OMAHA, Neb., May 04, 2020 (GLOBE NEWSWIRE) -- Green Plains Partners LP (NASDAQ:GPP) today announced financial and operating results for the first quarter of 2020. Net income was $10.4 million, or $0.44 per common unit, for the first quarter of 2020 compared with $10.2 million, or $0.43 per common unit, for the same period in 2019. The partnership reported adjusted EBITDA of $13.4 million and distributable cash flow of $11.4 million for the first quarter of 2020, compared with adjusted EBITDA of $13.5 million and distributable cash flow of $11.4 million for the same period in 2019. Distribution coverage was 4.03x for the three months ended March 31, 2020. “The recently announced reduction in our distribution will be used to amortize outstanding debt and will improve the strength of our balance sheet, with the goal of being debt free in 18 months to the benefit of all unitholders,” said Todd Becker, president and chief executive officer of Green Plains Partners. “We are working with our existing lender group to amend the loan agreement under modified terms, including an increase in interest rates, required principal amortization and changes to certain covenants, and anticipate providing more detail regarding these modifications in the near future. Once our debt is fully repaid through planned amortization and other potential funding sources, we should have ample cash flow and liquidity through our long-term minimum volume commitments enabling us to support potential distribution increases in the future.” First Quarter Highlights and Recent Developments On April 16, 2020, the board of directors of the partnership’s general partner reduced the quarterly cash distribution by 75% to $0.12 per unit, or approximately $2.8 million, for the first quarter of 2020. This reduction will free up approximately $33.8 million annually, which the partnership intends to use to amortize debt. The distribution is payable on May 8, 2020, to unitholders of record at the close of business on May 1, 2020. Results of OperationsConsolidated revenues decreased $0.8 mil...