Southwest Iowa Renewable Energy, LLC announced its unaudited financial results for the three months endedΒ 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 |
||
| β’ | Revenues | $52,065 | $53,199 |
| β’ | Net Income | $5,632 | $1,106 |
| β’ | Gross Margin | $7,183 | $2,515 |
| β’ | Modified EBITDA | $8,197 | $4,359 |
SIRE reported net income ofΒ $5.6 millionΒ orΒ $422.60Β per unit for the three months endedΒ December 31, 2016, compared to a net income ofΒ $1.1 millionΒ orΒ $82.99Β per unit for the three months endedΒ December 31, 2015.Β SIRE revenue from operations wasΒ $52.1 millionΒ for the three months endedΒ December 31, 2016Β compared toΒ $53.2 millionΒ for the three months endedΒ December 31, 2015.Β Modified EBITDA, which is defined as earnings before interest, income taxes, depreciation, amortization, and unrealized hedging gains and losses, wasΒ $8.2 millionΒ for the three months endedΒ December 31, 2016, compared toΒ $4.4 millionΒ for the three months endedΒ December 31, 2015.
SIRE hadΒ $1.3 millionΒ in cash and cash equivalents andΒ $36.0 millionΒ available under revolving loan agreements, for a total cash and available borrowings ofΒ $37.3 millionΒ atΒ December 31, 2016. The cash flow provided by operating activities wasΒ $9.9 millionΒ compared toΒ $6.4 millionΒ for the three months endedΒ December 31, 2016Β and 2015, respectively.Β 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.Β Corn prices retreated back belowΒ $3.50; we averagedΒ $3.36Β per bushel during this first quarter of Fiscal 2017, which is a decrease over the past year’s price ofΒ $3.77.Β 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.Β Cahill commented – “we continue to evaluate and implement new production technology.Β We will continue to focus on running the plant efficiently, with a balance of optimizing the yield and profit.”
