SIRE reports reduced net loss for fiscal second quarter

By Erin Voegele | May 17, 2016

Southwest Iowa Renewable Energy has published financial results for its second fiscal quarter of 2016, the three-month period ended March 31, reporting a slight decrease in revenues, but improved net income and modified EBITDA.

SIRE reported a net loss of $2.23 million for the quarter, or $167.18 per basic share, compared to a net loss of $2.91 million, or $218.35 per net share, for the same period of the prior year. Revenue from operations was $54.12 million for the quarter, compared to $55.47 million during the second fiscal quarter of 2015.

Modified EBITDA, which is defined as earnings before interest, income taxes, depreciation, amortization, unrealized hedging gains and losses, and other significant noncash expenses, was $1.67 million, compared to $1.03 million during the same period of the previous year.

“During this second quarter of fiscal 2016, we continued to drive down our cost per gallon, implementing several efficiency measures, as well as capitalizing on lower utility costs," said Brian Cahill, president and CEO of SIRE. "We continue to focus on running the plant efficiently, always seeking the right balance of optimizing the yield and profit."

SIRE, a 125 MMgy ethanol plant located in Council Bluffs, Iowa, produced 31.2 million gallons of ethanol during the quarter. The company sold 42.04 million gallons of ethanol during the three-month period, generating 77.7 percent of company revenues. During the same period of 2015, the company sold 42.06 million gallons of ethanol, which accounted for 75.8 percent of revenues.  Distillers grains sales accounted for 17.8 percent of revenue during the quarter,down  from 20.2 percent during the second fiscal quarter of 2015. Corn oil accounted for 3.9 percent of revenues, compared to 3.5 percent during the same period of last year. Other products generated 0.6 percent of revenue during the quarter, up from 0.5 percent during the same quarter of 2015.