On February 10, 2016, Southwest Iowa Renewable Energy, LLC announced its unaudited financial results as of and for the three months ended December 31, 2015.
Results for the First Quarter of Fiscal 2016
Net Income –
Gross Margin –
Modified EBITDA –
SIRE reported net income for the three months ended December 31, 2015 of $1.1 million or $82.99 per basic unit compared to $9.8 million or $737.45 per basic unit for the three months ended December 31, 2014.
SIRE revenue from operations was $53.2 million in the three months ended December 31, 2015 compared to $72.5 million in the three months ended December 31, 2014.
Modified EBITDA, which is defined as earnings before interest, income taxes, depreciation, amortization, unrealized hedging gains and losses, and other significant noncash expenses was $4.4 million for the three months ended December 31, 2015, compared to$16.7 million for the three months ended December 31, 2014.
SIRE had $3.0 million in cash and cash equivalents and $33.5 million available under revolving loan agreements, for a total cash and available borrowings of $36.5 million at December 31, 2015.
Brian Cahill, SIRE’s President and CEO stated, “During this first quarter of Fiscal 2016, we continued to drive down our cost per gallon, implementing several efficiency measures, as well as capitalizing on lower utility costs. The harvest season went well for us, as we are now receiving Enogen corn, and utilizing our new 1 million bushel bins.”
During the first quarter of Fiscal 2016, SIRE produced 29.1 million gallons of ethanol, voluntarily slowing production during times of compressed margins. Cahill commented – “We continue to focus on running the plant efficiently, always seeking the right balance of optimizing the yield and profit.”