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Southwest Iowa Renewable Energy, LLC Announces Financial Results for Q1 Fiscal 2017

Southwest Iowa Renewable Energy, LLC Announces Financial Results for Q1 Fiscal 2017

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Southwest Iowa Renewable Energy, LLC announced its unaudited financial results for the three months ended December 31, 2016.

Results for the First Quarter of Fiscal 2017 (Amounts in 000’s)
Three Months Ended
December 31, 2016
Three Months Ended
December 31, 2015
Revenues$52,065$53,199
Net Income$5,632$1,106
Gross Margin$7,183$2,515
Modified EBITDA$8,197$4,359

SIRE reported net income of $5.6 million or $422.60 per unit for the three months ended December 31, 2016, compared to a net income of $1.1 million or $82.99 per unit for the three months ended December 31, 2015. SIRE revenue from operations was $52.1 million for the three months ended December 31, 2016 compared to $53.2 million for the three months ended December 31, 2015. Modified EBITDA, which is defined as earnings before interest, income taxes, depreciation, amortization, and unrealized hedging gains and losses, was $8.2 million for the three months ended December 31, 2016, compared to $4.4 million for the three months ended December 31, 2015.

SIRE had $1.3 million in cash and cash equivalents and $36.0 million available under revolving loan agreements, for a total cash and available borrowings of $37.3 million at December 31, 2016. The cash flow provided by operating activities was $9.9 million compared to $6.4 million for the three months ended December 31, 2016 and 2015, respectively. Brian Cahill, SIRE’s President and CEO stated, “this first quarter of Fiscal 2017, we saw very favorable margins, continuing the trends of the previous quarter. Corn prices retreated back below $3.50; we averaged $3.36 per bushel during this first quarter of Fiscal 2017, which is a decrease over the past year’s price of $3.77. However, ethanol margins in the U.S. have been very volatile towards the end of 2016. Demand for ethanol has been strong with the lower prices, both in the U.S. and abroad. The industry has continued to adjust and we expect margins to remain positive but are becoming more dependent on continued good export demand.”

During the first quarter of Fiscal 2017, SIRE produced 29.9 million gallons of ethanol, compared to 29.1 million gallons during the first quarter of Fiscal 2016. Cahill commented – “we continue to evaluate and implement new production technology. We will continue to focus on running the plant efficiently, with a balance of optimizing the yield and profit.”

 

Anand Gupta Editor - EQ Int'l Media Network

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