Southwest Iowa Renewable Energy, LLC Announces Results of Third Quarter 2013

COUNCIL BLUFFS, Iowa, Aug. 14, 2013 /PRNewswire/ -- On August 14, 2013, Southwest Iowa Renewable Energy, LLC ("SIRE") announced its financial results for the three and nine months ended June 30, 2013.  SIRE reported net income of $1,501,000 or $114.24 per unit, compared to a net loss of $4,153,000 or $316.09 per unit for the three months ended June 30, 2013 and 2012, respectively. SIRE reported a net loss of $9,606,000 or $731.11 per unit, compared to net income of $856,000 or $65.15 per unit for the nine months ended June 30, 2013 and 2012, respectively. 

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Adjusted EBITDA, which is defined as earnings before interest, income taxes, and depreciation and/or amortization, or EBITDA, as adjusted for unrealized hedging losses (gains) was $7,181,000 for the three months ended June 30, 2013 and $783,000 for the three months ended June 30, 2012.  Adjusted EBITDA was $9,959,000 for the nine months ended June 30, 2013 and $11,657,000 for the nine months ended June 30, 2012. For reconciliations of Adjusted EBITDA to net income attributable to SIRE, see "Adjusted EBITDA" below.

SIRE had $9.73 million in cash and equivalents and $6.714 million available under committed loan agreements (subject to satisfaction of specified lending conditions and covenants) at June 30, 2013. The cash flow from operations was $4,626,000 compared to $12,347,000 for the nine months ended June 30, 2013 and 2012, respectively; with the overall cash flow for the nine months ended June 30, 2013 of $3,447,000 compared to ($2,769,000) for the nine months ended June 30, 2012.

Brian Cahill, SIRE's President and CEO stated, "As we look back on the three months ended June 30, 2013 we continue to make strong strides in improving our operations through lower costs and brining our production back to full capacity. This resulted in improved margins and adjusted EBITDA along with positive earnings. We look forward to lower grain prices as we move closer to harvest."

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 on Form 10-K for the fiscal year ended September 30, 2012, 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 included in 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.

Management uses Adjusted EBITDA, a non-GAAP measure, to measure the Company's financial performance and to internally manage its business.  Management believes that adjusted EBITDA provides useful information to investors as a measure of comparison with peer and other companies.  Adjusted 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.  Adjusted EBITDA calculations may vary from company to company.  Accordingly, our computation of Adjusted EBITDA may not be comparable with a similarly-titled measure of another company.

The following sets forth the reconciliation of Net Loss to Adjusted EBITDA for the periods indicated:

Adjusted EBITDA to net income (loss) for the three months ended June 30, 2013 and June 30, 2012 

SOURCE Southwest Iowa Renewable Energy, LLC