Southwest Iowa Renewable Energy, LLC Announces Third Quarter Results

News provided by

Southwest Iowa Renewable Energy, LLC

Aug 05, 2011, 04:41 ET

COUNCIL BLUFFS, Iowa, Aug. 5, 2011 /PRNewswire/ -- On August 5, 2011, Southwest Iowa Renewable Energy, LLC ("SIRE") announced its financial results for the third fiscal quarter ended June 30, 2011.  SIRE reported a net loss of $1,287,162 or $97.96 per unit, compared to a net loss of $2,373,085 or $180.61 per unit in the same period in 2010.   The cash flow from operations for the nine months ended June 30, 2011 was $12,502,085 compared to $3,576,975 for the same period in 2010; with the overall cash flow for the nine months ending June 30, 2011 of $3,470,436 as compared to ($3,443,935) for the same period in 2010.

Brian Cahill, SIRE's General Manager and CEO, stated, "Our corn oil extraction project continues to have a positive effect on our operations and we expect the contributions from corn oil to continue to grow as we progress through the end of fiscal year 2011.  Ethanol margins have contracted in the third quarter, just as they did one year ago. However, we achieved a slight improvement with a reduced loss for the quarter ended June 30, 2011, in spite of the challenging commodity price conditions and current flood conditions.  The continuing improvement in the cash flow from operations allowed us to pay down approximately $9.6 million on our term debt during the nine months ended June 30, 2011."

About Southwest Iowa Renewable Energy, LLC:

SIRE is an Iowa limited liability company, located in Council Bluffs, Iowa, formed in March, 2005 to construct and operate a 110 million gallon capacity ethanol plant.  SIRE began producing ethanol in February, 2009 and sells its ethanol, modified wet distillers grains with solubles, corn syrup, and corn oil in the continental United States. SIRE also sells its dried distillers grains with solubles in the continental United States, Mexico and the Pacific Rim.

This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (the "1995 Act").  Such statements are made in good faith by SIRE  and are identified as including terms such as "may," "will," "should," "expects," "anticipates," "estimates," "plans," or similar language.  In connection with these safe-harbor provisions, SIRE  has identified in its Annual Report to Shareholders for the fiscal year ended September 30, 2010, important factors that could cause actual results to differ materially from those contained in any forward-looking statement made by or on behalf of SIRE, including, without limitation, the risk and  nature of SIRE's business ,and  the effects of general economic conditions on SIRE.  The forward-looking statements contained in this Press Release are excluded from the safe harbor protection provided by Section 27A of the Securities Act of 1933, as amended (the "1933 Act") and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act").  SIRE further cautions that such factors are not exhaustive or exclusive.  SIRE does not undertake to update any forward-looking statement which may be made from time to time by or on behalf of SIRE.

Statistical Information

Three Months Ended June 30, 2011

(Unaudited)

Three Months Ended June 30, 2010

(Unaudited)



Gallons/Tons

Sold

% of

Revenues

Gallons/Tons

Average Price

Gallons/Tons

Sold

% of

Revenues

Gallons/Tons

Average Price

Statistical Revenue

Information













Denatured Ethanol

30,703,782

82%

$

2.53

26,587,530

84%

$

1.53

Dry Distiller's Grains

70,926

16%

$

194.74

74,218

17%

$

102.719

Corn Oil

2230

2%

$

907.64

-

0%

$

-



Nine  Months Ended June 30, 2011 

 (Unaudited)

Nine Months Ended June 30, 2010 

 (Unaudited)



Gallons/Tons

Sold

% of

Revenues

Gallons/Tons

Average Price

Gallons/Tons

Sold 

% of

Revenues

Gallons/Tons

Average Price

Statistical Revenue

Information













Denatured Ethanol

85,766,206

81%

$

2.24

81,613,633

84%

$

1.56

Dry Distiller's Grains

227,968

18%

$

166.69

222,599

16%

$

103.63

Corn Oil

3,958

1%

$

892.95

-

0%

$

-

Financial Results



Three Months

Ended

June 30,

2011

(Unaudited)

Three Months

Ended

June 30, 2010

(Unaudited)

Nine Months

Ended

June 30,

2011

(Unaudited)

Nine Months

Ended

June 30,

2010

(Unaudited)











Revenues

$

94,853,474

$

48,769,873

$

236,555,894

$

151,495,495

Cost of Goods Sold








 Cost of goods sold-non hedging

87,611,198

47,942,915

214,589,874

149,866,980

 Realized & unrealized hedging (gains and losses)

5,180,771

(108,928)

13,792,563

(3,806,457)

Cost of Goods Sold

92,791,969

47,833,987

228,382,437

146,060,523











Gross Margin

2,061,505

935,886

8,173,457

5,434,972











General and Administrative Expenses

933,741

1,154,939

3,293,090

3,651,647











Operating Income

1,127,764

(219,053)

4,880,367

1,783,325











Other ( Income) Expense








Interest income

(5,853)

(13,376)

(12,862)

(39,760)

Interest expense

2,426,329

2,178,756

7,312,267

6,622,401

Miscellaneous income

(5,550)

(11,348)

(61,526)

(128,124)

Total


2,414,926

2,154,032

7,237,879

6,454,517











Net (Loss)

$

(1,287,162)

$

(2,373,085)

$

(2,357,512)

$

(4,671,192)











Weighted Average Units








Outstanding—Basic & Diluted

13,139

13,139

13,139

13,139

Net (loss) per unit –basic & diluted

$

(97.96)

$

(180.61)

$

(179.43)

$

(355.52)





Summary Balance Sheets

SOUTHWEST IOWA RENEWABLE ENERGY, LLC

Balance Sheets

ASSETS

June 30, 2011

September 30, 2010

(Unaudited)

Current Assets



Cash and cash equivalents

$

6,902,980

$

3,432,544

Restricted cash

300,982

-

Accounts receivable


339,740

-

Accounts receivable, related party

18,420,984

23,392,670

Due from broker

3,609,652

2,260,015

Inventory

13,642,728

8,013,153

Derivative financial instruments, related party

-

688,039

Derivative financial instruments

141,988

-

Prepaid expenses and other

1,003,504

533,513

          Total current assets

44,362,558

38,319,934





Property, Plant, and Equipment



Land

2,064,090

2,064,090

Plant, Building and Equipment

203,519,090

199,771,260

Office and Other Equipment

731,527

720,529

Total Cost

206,314,707

202,555,879

Accumulated Depreciation

(39,566,734)

(28,757,303)

             Net property and equipment

166,747,973

173,798,576





Other Assets



Other

-

1,142,388

Financing costs, net of amortization of $2,243,462 and $1,949,651

1,636,671

1,930,482

        Total other assets

1,636,671

3,072,870

Total Assets

$

212,747,202

$      215,191,380




SOUTHWEST IOWA RENEWABLE ENERGY, LLC

Balance Sheets

LIABILITIES AND MEMBERS' EQUITY

June 30, 2011

September 30, 2010

(Unaudited)

Current Liabilities



Accounts payable

$

1,184,020

$

978,388

Accounts payable, related parties

5,098,920

2,542,055

Derivative financial instruments, related party

9,484

-

Derivative financial instruments

-

75,125

Accrued expenses

2,401,196

2,624,916

Accrued expenses, related parties

4,829,314

2,913,206

Current maturities of notes payable

22,370,975

18,058,574

Total current liabilities

35,893,909

27,192,264

Long Term Liabilities



    Notes payable, less current maturities

127,154,773

135,868,087

    Other

625,009

700,006

           Total long term liabilities    


127,779,782

136,568,093

Commitments and Contingencies



Members' Equity



Members' capital, 13,139 Units issued and outstanding

76,474,111

76,474,111

 Accumulated (deficit)

(27,400,600)

(25,043,088)

Total members' equity

49,073,511

51,431,023

Total Liabilities and Members' Equity

$

212,747,202

$

215,191,380


SOURCE Southwest Iowa Renewable Energy, LLC

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