COUNCIL BLUFFS, Iowa, Feb. 15, 2013 /PRNewswire/ -- On February 14, 2013, Southwest Iowa Renewable Energy, LLC ("SIRE") announced its unaudited financial results for the first quarter of fiscal year 2013 ("Fiscal 2013") which ended December 31, 2012. SIRE reported a net loss of $8,683,000, or $660.83 per unit, compared to a net profit of $8,996,000, or $684.62 per unit, for the first quarter of fiscal year 2012 ("Fiscal 2012") which ended December 31, 2011. The cash flow provided by operations for the first quarter of Fiscal 2013 was $1,097,000, compared to $7,141,000 for the same period in Fiscal 2012.
Adjusted EBITDA, which is defined as earnings before interest, income taxes, and depreciation and/or amortization ("EBITDA"), as adjusted for unrealized hedging losses (gains), was a loss of $1,259,000 for the first quarter of Fiscal 2013 and a gain of $10,014,000 for the same period in Fiscal 2012. At December 31, 2012, SIRE had $12,391,000 in cash and equivalents and $5,555,000 available under committed loan agreements (subject to satisfaction of specified lending conditions and covenants). For reconciliations of Adjusted EBITDA to net income attributable to SIRE, see "Adjusted EBITDA" below.
Brian Cahill, SIRE's General Manager and CEO, stated, "Our first quarter in Fiscal 2013 reflects the continuing margin compression resulting from the relative high prices of our primary input and low prices our primary product during the quarter. In particular, the key factors during the quarter were relatively high prices compared to previous years of our primary input, corn, resulting from the drought conditions in the United States. In addition, pricing pressures have continued to depress ethanol prices. Notwithstanding these margins, we have continued to make scheduled payments to our banks, resulting in further principal reduction in overall debt and reduced interest costs. We have also continued to make modest capital investments that are resulting in incremental productivity improvements in our plant."
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 name plate 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.
SOURCE Southwest Iowa Renewable Energy, LLC