Lincolnway releases financial results for fiscal third quarter

By Erin Voegele | August 17, 2015

Lincolnway Energy LLC has announced financial results for the third quarter of its fiscal year 2015, the three months ended June 30. The company reported net income of $600,000, or $14.24 per unit, compared to $7.8 million, or $185.39 per unit, for the same quarter of last year.

Gross profit for the quarter was $1.3 million, down from $8.8 million for the same three months of the prior year. EBITDA was $2.7 million, compared to $9.7 million for the third quarter of fiscal year 2014.

“The quarter started out strong and faded at the end as gasoline demand could not keep up with the supply of ethanol,” said Eric Hakmiller, president and CEO of Lincolnway. “We are very happy with the cost containment projects we completed in the last year; they are going to be very helpful in this more challenging margin environment.

In a quarterly report filed with the U.S. Security and Exchange Commission, Lincolnway noted that total revenues for the quarter were down 25.5 percent when compared to the same quarter of last year. Ethanol sales decreased by 30.5 percent when compared to the third quarter of fiscal year 2014, while sales from coproducts decreased by 9 percent.

The change in ethanol revenue is attributed to a 36 percent decrease in the price per gallon received, which was partially offset by a 7.2 percent increase in volume for the three months ended June 30, when compared to same three months of fiscal year 2014. According to Lincolnway, the average price received by the company for its ethanol during the quarter was $1.51 per gallon, compared to $2.36 per gallon during the same quarter of 2014.

Documents filed with the SEC also indicate the company’s coproducts include dried distillers grains (DDG), wet distillers grains, corn oil, syrup, and carbon dioxide. A decrease in distillers grain prices, offset by an increase in DDG tons sold, generated the 9 percent drop in coproduct sales for the quarter. According to Lincolnway, the average price per ton of DDG sold decreased by 23.6 percent during the quarter, while DDG tons sold increased by 18 percent.