Green Plains Reports Third Quarter 2012 Financial Results

Green Plains Reports Third Quarter 2012 Financial Results

  *Net loss of ($1.0) million
  *Loss per share of ($0.03)

OMAHA, Neb., Oct. 30, 2012 (GLOBE NEWSWIRE) -- Green Plains Renewable Energy,
Inc. (Nasdaq:GPRE) announced today its financial results for the three months
ended September 30, 2012. Net loss attributable to Green Plains for the
quarter was ($1.0) million, or ($0.03) per diluted share, compared to net
income of $12.4 million, or $0.32 per diluted share, for the same period in
2011. Revenues were $947.4 million for the three months ended September 30,
2012 compared to $957.0 million for the same period in 2011.

"Our platform performed well in the third quarter considering the difficult
margin environment in the ethanol industry," stated Todd Becker, President and
Chief Executive Officer. "We achieved a record quarter for non-ethanol
operating income of $20.8 million which helped offset the weakness in the
ethanol segment. We are encouraged to see results in our ethanol segment
gradually improving on a sequential basis since the first quarter of this
year."

"Our rail car initiative helped deliver strong results in our marketing and
distribution segment. Operating income from our agribusiness segment was
particularly strong with early plantings and dry conditions allowing producers
to harvest corn and soybeans earlier than expected. Because of this, handling
margins were stronger than usual as our Tennessee businesses were well
positioned to capture end of crop-year market conditions," said Becker.

Revenues for the nine-month period ended September 30, 2012 were $2.6 billion,
down slightly from the same period in 2011. Net loss attributable to Green
Plains for the nine months ended September 30, 2012 was ($21.2) million, or
($0.70) per diluted share, compared to net income of $25.2 million, or $0.66
per diluted share, for the same period in 2011.

"We believe our disciplined approach to margin management and strength in our
non-ethanol segments will continue to benefit our financial results for the
remainder of the year. As a result, we expect to return to profitability in
the fourth quarter, before considering the gain we expect to realize on the
agribusiness transaction," added Becker.

"The sale of a large component of our agribusiness segment does not mean we
are exiting the grain storage and handling business. This transaction was a
compelling opportunity to unlock value for our shareholders and will place us
in the strongest financial position in the Company's history. Looking forward,
we plan to aggressively take advantage of growth opportunities around all of
our businesses, including agribusiness through grain storage expansion at or
near our ethanol plants," added Becker.

Third quarter 2012 EBITDA, which is defined as earnings before interest,
income taxes, noncontrolling interests, depreciation and amortization, was
$21.7 million compared to $41.6 million for the same period in 2011. Green
Plains had $159.8 million total cash and equivalents and $154.5 million
available under committed loan agreements at subsidiaries (subject to
satisfaction of specified lending conditions and covenants) at September 30,
2012. For reconciliations of EBITDA to net income attributable to Green
Plains, see "EBITDA" below.

Third Quarter 2012 Business Highlights

  *On October 28, 2012, Green Plains announced that it has entered into an
    asset purchase agreement to sell 12 of its grain elevators located in
    northwestern Iowa and western Tennessee. The sale includes approximately
    32.6 million bushels, or 83%, of the Company's reported agribusiness grain
    storage capacity, and all of its agronomy and retail petroleum operations.
    Net cash proceeds, including working capital liquidation, are expected to
    be approximately $103.8 million. Green Plains expects to report a pre-tax
    gain from this sale of approximately $46 million. The closing of the
    transaction, which is expected to occur during the fourth quarter of 2012,
    is subject to customary closing conditions and regulatory approvals.
  *Construction of the BlendStar unit train terminal in Birmingham, Alabama
    is nearing completion. Green Plains expects the terminal will provide
    additional throughput capacity of 300 million gallons per year and be
    operational to receive the first unit train of ethanol in late November.
  *Phase III of BioProcess Algae's build-out is also close to completion.
    Construction of the reactors on three of the five acres is complete and
    the facilities were inoculated with algae in October. First harvest from
    the new facilities is expected in early November.

Conference Call

On October 31, 2012, Green Plains will hold a conference call to discuss its
third quarter 2012 financial results and other recent developments. Green
Plains' participants will include Todd Becker, President and Chief Executive
Officer, Jerry Peters, Chief Financial Officer, and Jeff Briggs, Chief
Operating Officer. The time of the call is 11:00 a.m. ET / 10:00 a.m. CT. To
participate by telephone, the domestic dial-in number is 888-312-3048 and the
international dial-in number is 719-325-2484. The conference call will be
webcast and accessible at www.gpreinc.com. Listeners are advised to go to the
website at least 10 minutes prior to the call to register, download and
install any necessary audio software. A slide presentation will be available
on Green Plains' website at http://investor.gpreinc.com/events.cfm. The
conference call will be archived and available for replay through November 7,
2012.

About Green Plains Renewable Energy, Inc.

Green Plains Renewable Energy, Inc. (Nasdaq:GPRE) is North America's fourth
largest ethanol producer. The Company markets and distributes approximately
one billion gallons of renewable motor fuel on an annual basis. Green Plains
owns and operates grain handling and storage assets and provides complementary
agronomy services to local grain producers through its agribusiness segment.
Green Plains owns BlendStar LLC, a biofuels terminal operator with locations
in the southern U.S. Green Plains is a joint venture partner in BioProcess
Algae LLC, which was formed to commercialize advanced photo-bioreactor
technologies for growing and harvesting algal biomass.

Safe Harbor

This news release contains forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995, as amended. Such
statements are identified by the use of words such as "anticipates,"
"believes," "estimates," "expects," "goal," "intends," "plans," "potential,"
"predicts," "should," "will," and other words and terms of similar meaning in
connection with any discussion of future operating or financial performance.
Such statements are based on management's current expectations and are subject
to various factors, risks and uncertainties that may cause actual results,
outcome of events, timing and performance to differ materially from those
expressed or implied by such forward-looking statements. Green Plains may
experience significant fluctuations in future operating results due to a
number of economic conditions, including, but not limited to, completion of
the sale of 12 grain elevators and related agronomy and retail petroleum
operations, competition in the ethanol and other industries in which the
Company operates, commodity market risks including those that may result from
current weather conditions, financial market risks, counter-party risks, risks
associated with changes to federal policy or regulation, risks related to
closing and achieving anticipated results from acquisitions, risks associated
with the joint venture to commercialize algae production and the growth
potential of the algal biomass industry, and other risks detailed in the
Company's reports filed with the Securities and Exchange Commission, including
its Annual Report on Form 10-K for the year ended December 31, 2011, and in
the Company's subsequent filings with the SEC. In addition, the Company is not
obligated, and does not intend, to update any of its forward-looking
statements at any time unless an update is required by applicable securities
laws.

Consolidated Financial Results

The following are consolidated statements of operations for Green Plains (in
thousands, except per share amounts):

                            Three Months Ended    Nine Months Ended September
                             September 30,         30,
                            2012       2011       2012          2011
                                                             
Revenues                     $947,413 $957,018 $2,593,163  $2,630,921
Cost of goods sold           919,516   909,725   2,538,363    2,510,742
Gross profit                 27,897    47,293    54,800       120,179
Selling, general and         19,273    18,248    58,350       53,350
administrative expenses
Operating income (loss)      8,624     29,045    (3,550)      66,829
Other income (expense)                                        
Interest income              46        59        144          222
Interest expense             (9,832)   (9,440)   (28,741)     (27,438)
Other, net                   (448)     (284)     (1,859)      (470)
Total other expense          (10,234)  (9,665)   (30,456)     (27,686)
                                                             
Income (loss) before income  (1,610)   19,380    (34,006)     39,143
taxes
Income tax expense (benefit) (604)     6,979     (12,749)     14,191
Net income (loss)            (1,006)   12,401    (21,257)     24,952
Net loss attributable to     4         28        13           200
noncontrolling interests
Net income (loss)            $(1,002) $12,429  $(21,244)   $25,152
attributable to Green Plains
Earnings per share:                                           
Basic                        $(0.03)  $0.35    $(0.70)     $0.70
Diluted                      $(0.03)  $0.32    $(0.70)     $0.66
Weighted average shares                                       
outstanding:
Basic                        29,655    35,624    30,499       36,075
Diluted                      29,655    42,151    30,499       42,611

Revenues decreased $9.6 million for the three months ended September 30, 2012
compared to the same period in 2011 primarily due to lower average prices of
ethanol and corn oil and lower volumes of distillers grains sold partially
offset by increased revenues from grain merchandising. Revenues from grain
merchandising increased primarily due to higher grain prices in 2012 and the
impact of an early harvest in the Company's market areas. The 2012 drought
resulted in increases in commodity prices and an early harvest season, which
is affecting the expected timing of revenues from historical patterns between
the third and fourth quarters. Gross profit decreased $19.4 million for the
three months ended September 30, 2012 compared to the same period in 2011
primarily as a result of unfavorable ethanol production margins. Operating
income decreased $20.4 million for the three months ended September 30, 2012
compared to the same period in 2011 as a result of the factors discussed
above. Selling, general and administrative expenses increased 5.6%when
comparing the three months ended September 30, 2012 to the same period in 2011
due to the expanded scope of the Company's operations. As a result of the net
loss, the Company recorded an income tax benefit of $0.6 million compared to
income tax expense of $7.0 million for the same period in 2011.

Weighted average shares outstanding for basic earnings per share purposes
decreased due to share repurchases that were completed in September 2011 and
in March 2012. Weighted average shares outstanding for diluted earnings per
share purposes for the three months and nine months ended September 30, 2011
reflect additional shares outstanding under the as-if-converted method of
accounting for the convertible notes.For the three and nine months ended
September 30, 2012, the Company's net loss and weighted average number of
common shares outstanding are not adjusted since the effect would be
antidilutive. The following summarizes the effects of this method on net
income attributable to Green Plains and weighted average shares outstanding
for the periods indicated (in thousands):

                                   Three Months Ended   Nine Months Ended
                                    September 30,        September 30,
                                   2012       2011      2012        2011
Net income (loss) attributable to   $(1,002) $12,429 $(21,244) $25,152
Green Plains
Interest and amortization expense
related to convertible debt, net of --        925      --         2,770
tax
Net income (loss) on an             $(1,002) $13,354 $(21,244) $27,922
as-if-converted basis
Effect of convertible debt on
weighted average shares outstanding --        6,280    --         6,280
- diluted

Operating Segment Information

Green Plains' operating segments are as follows: (1) production of ethanol and
related distillers grains, collectively referred to as ethanol production, (2)
corn oil production, (3) grain warehousing and marketing, as well as sales and
related services of agronomy and petroleum products, collectively referred to
as agribusiness, and (4) marketing and logistics services of Company-produced
and third-party ethanol, distillers grains, corn oil, and other commodities
and the operation of blending and terminaling facilities, collectively
referred to as marketing and distribution. Selling, general and administrative
expenses, primarily consisting of compensation of corporate employees,
professional fees and overhead costs not directly related to a specific
operating segment, are reflected in the table below as corporate activities.
The following are revenues, gross profit and operating income by segment for
the periods indicated (in thousands):

                 Three Months Ended September Nine Months Ended September 30,
                  30,
                 2012           2011          2012            2011
                                                           
Revenues:                                                   
Ethanol           $492,899     $587,064    $1,417,966    $1,598,408
production
Corn oil          14,531        15,508       43,521         30,350
production
Agribusiness      175,700       143,928      434,776        383,635
Marketing and     769,095       826,581      2,143,781      2,298,496
distribution
Intersegment      (504,812)     (616,063)    (1,446,881)    (1,679,968)
eliminations
                 $947,413     $957,018    $2,593,163    $2,630,921
                                                           
Gross profit                                                
(loss):
Ethanol           $(3,701)     $24,846     $(20,610)     $63,880
production
Corn oil          7,865         9,642        25,205         18,098
production
Agribusiness      12,513        8,223        27,357         20,425
Marketing and     10,980        5,069        21,769         17,332
distribution
Intersegment      240           (487)        1,079          444
eliminations
                 $27,897      $47,293     $54,800       $120,179
                                                           
Operating income                                            
(loss):
Ethanol           $(7,520)     $20,941     $(32,435)     $52,184
production
Corn oil          7,811         9,632        25,011         18,040
production
Agribusiness      5,849         2,151        8,916          3,934
Marketing and     7,162         1,923        10,546         7,078
distribution
Intersegment      240           (481)        1,113          474
eliminations
Segment operating 13,542        34,166       13,151         81,710
income
Corporate         (4,918)       (5,121)      (16,701)       (14,881)
activities
                 $8,624       $29,045     $(3,550)      $66,829

Intersegment revenues and corresponding costs are eliminated in consolidation
and do not impact consolidated results.

Ethanol Production Segment

The table below presents key operating data within the ethanol production
segment for the periods indicated:

                    Three Months Ended September  Nine Months Ended September
                     30,                           30,
                    2012            2011          2012          2011
                                                             
Ethanol sold        161,574         184,619       508,357       540,638
(thousands of                                                 
gallons)
                                                             
Ethanol produced     160,832         185,928       508,641       540,744
(thousands of                                                 
gallons)
                                                             
Distillers grains    438             534           1,397         1,536
sold
(thousands of equivalent dried tons)                           
                                                             
Corn consumed        56,706          65,857        178,924       191,032
(thousands of                                                 
bushels)

Revenues in the ethanol production segment decreased by $94.2 million for the
three months ended September 30, 2012 compared to the same period in 2011. The
decrease in revenue was due to lower average prices for ethanol and the
decision, in response to unfavorable operating margins, to temporarily reduce
ethanol production volumes at certain ethanol plants.The ethanol production
segment produced 160.8 million gallons of ethanol, which represents
approximately 87 percent of production capacity, during the three months ended
September 30, 2012.

Cost of goods sold in the ethanol production segment decreased by $65.6
million for thethree monthsended September 30, 2012 compared to the same
period in 2011. Consumption of corn decreased by 9.2 million bushels and the
average cost per bushel increased by 10.2% during the three months ended
September 30, 2012 compared to the same period in 2011. Average ethanol yield
increased to 2.84 gallons per bushel for the three months ended September 30,
2012 compared to 2.82 gallons per bushel in the same period in 2011 due
primarily to process improvements implemented and slowed production rates at
the plants.Depreciation and amortization expense for the ethanol production
segment was $11.2 million during the three months ended September 30, 2012
compared to $11.0 million during the same period of 2011. As a result of the
factors identified above, gross profit and operating income in the ethanol
production segment decreased by $28.5 million for the quarter ended September
30, 2012, compared to the same period in 2011, resulting in an operating loss
of $7.5 million.

Corn Oil Production Segment

Revenues in the corn oil production segment decreased by $1.0 million for the
three months ended September 30, 2012 compared to the same period in 2011.
During the three months ended September 30, 2012, Green Plains sold 37.2
million pounds of corn oil compared to 32.7 million pounds in the same period
of 2011. The increase in volume was offset by a 16% decrease in average price
for the three months ended September 30, 2012 compared to the same period in
2011. Average corn oil yield increased to 0.66 pounds per bushel for the three
months ended September 30, 2012 compared to 0.50 pounds per bushel in the same
period of 2011 due primarily to process improvements implemented at the
Company's plants.The Company began extracting corn oil in the fourth quarter
of 2010 with the last implementation, which was at the Otter Tail plant,
completed during the third quarter of 2011.

Agribusiness Segment

The table below presents key operating data within the agribusiness segment
for the periods indicated:

                     Three Months Ended September Nine Months Ended September
                      30,                          30,
                     2012           2011          2012          2011
                                                             
Grain sold           18,864         24,320        48,367        51,639
(thousands of                                                 
bushels)
                                                             
Fertilizer sold      3,084          790           35,126        33,801
(tons)                                                        

Within the agribusiness segment, revenues increased by $31.8 million, gross
profit increased by $4.3 million and operating income increased by $3.7
million for the three months ended September 30, 2012 compared to the same
period in 2011. Revenues, gross profit and operating income increased
primarily due to higher grain prices in 2012. The 2012 drought resulted in
increased commodity prices and an early harvest season, which is affecting the
expected timing of gross profit between the third and fourth quarters.
Operating income was also affected by an increase in selling, general and
administrative expenses due to the expanded scope of agribusiness operations,
through construction of grain storage capacity and the acquisition of a grain
elevator in January 2012. The agribusiness segment's quarterly performance
fluctuates on a seasonal basis with generally stronger results expected in the
second and fourth quarters each year; however, the effects of the early
harvest in the Company's market areas has accelerated some of the expected
agribusiness results for 2012 into the third quarter.

Marketing and Distribution Segment

Revenues in the marketing and distribution segment decreased by $57.5 million
for the three months ended September 30, 2012 compared to the same period in
2011. The decrease in revenues was primarily due to lower average prices of
ethanol and corn oil and lower volumes of distillers grains sold. Ethanol and
distillers grains revenues decreased by $58.2 million and $13.8 million,
respectively, partially offset by an increase in other revenues of $14.4
million. For the three months ended September 30, 2012, the marketing and
distribution segment entered into purchases and sales of crude oil and leased
railcars to third parties for the transportation of crude oil. Railcar leasing
and crude oil revenue for the three months ended September 30, 2012 was $18.2
million. The Company sold 267.5 million gallons of ethanol within the
marketing and distribution segment during the three months ended September 30,
2012 compared to 265.4 million gallons sold during the same period in 2011.
Ethanol volumes increased due to an increase in open-market ethanol purchases
and sales. However, the decrease in average prices of ethanol offset the
increase in volumes resulting in a net decrease in ethanol revenues.

Gross profit and operating income for the marketing and distribution segment
increased by $5.9 million and $5.2 million, respectively, for the three months
ended September 30, 2012 compared to the same period in 2011. The increases in
gross profit and operating income were due primarily to profits realized from
ethanol, distillers grains and crude oil marketing and distribution.

EBITDA

Management uses EBITDA to measure the Company's financial performance and to
internally manage its businesses. Management believes that EBITDA provides
useful information to investors as a measure of comparison with peer and other
companies. EBITDA should not be considered an alternative to, or more
meaningful than, net income or cash flow as determined in accordance with
generally accepted accounting principles. EBITDA calculations may vary from
company to company. Accordingly, the Company's computation of EBITDA may not
be comparable with a similarly-titled measure of another company. The
following sets forth the reconciliation of net income (loss) attributable to
Green Plains to EBITDA for the periods indicated (in thousands):

                             Three Months Ended   Nine Months Ended September
                              September 30,        30,
                             2012       2011      2012           2011
Net income (loss)             $(1,002) $12,429 $(21,244)    $25,152
attributable to Green Plains
Net loss attributable to      (4)       (28)     (13)          (200)
noncontrolling interests
Interest expense              9,832     9,440    28,741        27,438
Income tax expense (benefit)  (604)     6,979    (12,749)      14,191
Depreciation and amortization 13,487    12,811   39,922        36,848
EBITDA                        $21,709  $41,631 $34,657      $103,429

Summary Balance Sheets

The following is condensed consolidated balance sheet information (in
thousands):

                                          September 30, December 31,
                                          2012           2011
ASSETS                                                   
                                                        
Current assets                             $584,678     $576,420
Property and equipment, net                761,276       776,789
Other assets                               70,580        67,619
Total assets                               $1,416,534   $1,420,828
                                                        
LIABILITIES AND STOCKHOLDERS' EQUITY                     
                                                        
Current liabilities                        $416,242     $360,965
Long-term debt                             457,991       493,407
Other liabilities                          69,982        61,099
Total liabilities                          944,215       915,471
Total stockholders' equity                 472,319       505,357
Total liabilities and stockholders' equity $1,416,534   $1,420,828

At September 30, 2012, Green Plains had $159.8 million in total cash and
equivalents and $154.5 million available under committed loan agreements at
subsidiaries (some of which was subject to satisfaction of specified lending
conditions and covenants). Total debt at September 30, 2012 was $689.0
million, including $129.1 million outstanding under working capital revolvers
and other short-term borrowing arrangements in the marketing and distribution
and agribusiness segments. As of September 30, 2012, Green Plains had total
assets of approximately $1.4 billion and total stockholders' equity of
approximately $472.3 million. As of September 30, 2012, Green Plains had
approximately 29.7 million common shares outstanding.

CONTACT: Jim Stark, Vice President - Investor and Media Relations,
         Green Plains Renewable Energy, Inc. (402) 884-8700
 
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